Ladies and gentlemen, thank you for standing by, and welcome to Atour Lifestyle Holdings first quarter 2026 earnings conference call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a Q&A session. Today's conference is being recorded. I would now like to turn the call over to Mr. Luke Wu, IR Director. Thank you. Please go ahead, sir.
Thank you, operator. Good morning and good evening, everyone. Welcome to our first quarter 2026 earnings conference call. Today, you will hear from our Founder, Chairman and CEO, Mr. Haijun Wang, and our EVP Co-CFO, Mr. Jianfeng Wu. Before we continue, please be aware that today's discussion will include forward-looking statements under federal securities laws. These statements are subject to various risks and uncertainties, and actual results may differ significantly from what is stated or implied in our comments today. The company is not obligated to update any forward-looking statements except as required by applicable laws. Additionally, during this call, our management will discuss certain non-GAAP financial measures solely for comparison purpose. For a clear understanding of these measures and the reconciliation of GAAP to non-GAAP financial results, please refer to the earnings release issued earlier today.
Furthermore, a webcast replay of this conference call will be accessible on our website at ir.yaduo.com, where a copy of the results presentation is also available. Now, I will turn the call over to Mr. Wang, our CEO.
Thank you, Luke. Hello, everyone. Thank you for joining Atour's 1st quarter 2026 earnings call today. Thank you, Luke. Hello, everyone. Thank you for joining Atour's 1st quarter 2026 earnings call today. Please turn to our slides. Entering 2026, China's service consumption is accelerating its transition from scale driven expansion to value driven upgrade centered on quality and experience. Supportive policies are being refined and implemented while industry competition is becoming more rational. Together, these factors are shaping a healthier environment for the consumer market. Against this backdrop, the hotel market has continued its moderate recovery alongside structural upgrades, with development focus shifting toward deeper cultivation of refinement and the differentiation. Meanwhile, the retail market is also evolving from traditional manufacturing driven models to an experience driven approach. Consumers are increasingly prioritizing holistic experiences and emotional value over functionality and value for money.
At this pivotal moment, we will firmly seize the innovation opportunities arising from these transformations by embedding innovation across every dimension of our products, operations, and organization, and converting these opportunities into a long term sustainable growth engine. We are also more convinced than ever that our user first philosophy with experience as our cornerstone and brand as our anchor, is the fundamental path for Atour to navigate industry cycles. Now, I would like to provide more details on our business performance for the first quarter of 2026. Let's begin with our hotel business. In the first quarter, performance across our overall hotel portfolio and our mature hotels continued to improve sequentially. We achieved positive year-over-year RevPAR growth, primarily driven by a steady increase in ADR
This reflects a return to value-based competition in a healthier industry environment, alongside the steady compounding of our brand equity. In the first quarter, our RevPAR was CNY 311.6, representing 102.4% of the level in the same period of 2025. Specifically, OCC reached 100.6% and ADR stood at 102.1% of their levels in the same period of 2025. RevPAR for our mature hotels in operation for more than 18 months was 98.3% of the level in the same period of 2025, with OCC and ADR at 99.2% and 99.4% respectively of their levels in the same period of 2025.
As for our hotel network, we adhered to a quality-first principle and maintained strict quality control for every new signing and new hotel opening, ensuring growth is built on a solid quality foundation. In the first quarter, we opened 110 new hotels. By the end of the first quarter, our total number of hotels in operation reached 2,088. As of the same date, our pipeline of hotels under development remained at a healthy level of 751. On the hotel channel front, our CRS channel continued its steady performance, accounting for 63.7% of total room nights sold in the first quarter. The contribution of room nights sold to corporate members was 19.3% during the quarter.
At the same time, we are safeguarding the experience of guests who book through our official channels with our price assurance policies, including a price drop refund and a best price guarantee, as well as various other practical measures. During the Chinese New Year holiday in particular, the seamless execution of these safeguards earned widespread positive feedback from users. This reflects our long term commitment to deepening our membership operations and strengthening member loyalty, while also representing our consistent commitment to providing users with a more reassuring experience. As our hotel network expands and our brand strength steadily grows, our supply chain capabilities are advancing in parallel. More high quality suppliers are joining our supply chain network. The platform's offerings are becoming more diverse, and franchisees are increasingly willing to consolidate their procurement with us. We want our supply chain business to consistently deliver long term value in two aspects.
By empowering our franchisees and suppliers with high-quality products at attractive value, helping them improve procurement efficiency and enhancing the overall franchisee experience. By ensuring a consistent stay experience for users, giving them greater convenience and a peace of mind when using our products. We adhere to our eight commitments to supply chain procurement, establishing reliable mechanisms across pricing, after-sales service, and customer care. At the same time, we are deepening collaborative R&D with upstream suppliers to improve the practical functionality of existing products and develop new ones that deliver greater value. We will take innovation as our driving force to continuously enhance the core capabilities of our supply chain, jointly elevating the value of the Atour brand.
下面我将介绍集团住宿品牌的最新进展。
I would like to share the latest developments across our hotel brands.
在充分竞争的酒店市场中，亚朵率先开创并持续引领中高端赛道。十余年来，我们在用户口碑的沉淀中，逐渐建立起清晰而牢固的品牌心智。长期主义的坚持，让我们在不断变化的市场环境中构建起难以复制的差异化壁垒，始终保持可持续发展的韧性。亚朵酒店最新产品亚朵3.6，通过对用户真实住宿体验的深度拆解，重构了全流程中的关键体验节点，并由此打磨出一套可验证、可复制的运营标准和产品模型。亚朵3.6发布一年多以来，持续收获市场的积极反馈，验证了我们在中高端市场的产品竞争力。
In a highly competitive hotel market, Atour pioneered and continues to lead the upper mid-scale segment. Over the past decade, we have earned strong customer word of mouth and steadily built clear, resilient brand mindshare. This long-term commitment has enabled us to build differentiated competitive advantages that are difficult to replicate, supporting our resilience and sustainable growth through ever-changing market conditions. Atour 3.0, our latest Atour hotel product, was built around a systematic redesign of the key moments in the guest journey, grounded in an in-depth deconstruction of real guest experiences. This has allowed us to create a verifiable and scalable operational standard and a product model. Since its launch over a year ago, Atour 3.0 has continued to receive positive market feedback, validating our product competitiveness in the upper mid-scale markets.
亚朵见野则承载着我们对这一赛道边界的探索与延伸，也是我们品牌领航战略坚实的一步。未来，我们将持续对亚朵见野进行更长远的打磨和规划，推进精细化管理和品质升级。我们将推进整店深睡系统的配置，进一步融入云南在地的文化元素和服务细节。我们希望亚朵见野可以将源自亚朵村安静的力量带到城市更多角落，也让中国体验的内涵更加丰富。一季度，亚朵见野在营酒店的RevPAR超过了400元。中高端两个品牌协同发展，形成了差异化的价格梯队。
Atour Origin represents our continued effort to explore and expand the possibilities of the upper mid scale segment, and marks a concrete step forward in our brand led excellence strategy. Going forward, we will continue to refine Atour Origin with a long term mindset, while advancing more refined operations and quality upgrades. We will roll out the deep sleep system hotel wide and further integrate cultural elements and service details from Yunnan. We hope Atour Origin will bring the tranquil strength rooted in Yadu Village to more corners of urban life, further enriching what the Chinese experience represents. In the first quarter, RevPAR of Atour Origin hotels in operation exceeded RMB 400. The two upper mid scale brands developed in parallel, forming a differentiated and complementary price tier.
高端品牌方面，萨和酒店持续积累品牌声量，不断拓宽自身的发展边界。一季度，萨和在营酒店RevPAR超过910元，平均房价超过1,000元。与此同时，萨和成功吸引了更多元的客群，境外客人和家庭出行的住客比例更多，在境外渠道的点评和社交媒体上，也收获了越来越多用户自发的推广和好评。这让我们看到萨和所蕴含的中国文化底蕴的独特吸引力，也为我们打开了更广阔的想象空间。
For the upscale brand, SAVHE continues to build brand visibility and recognition while expanding its development potential. In the first quarter, RevPAR of SAVHE Hotels in operation exceeded CNY 910, with ADR surpassing CNY 1,000. Meanwhile, SAVHE has attracted a more diverse customer base with a higher proportion of international customers and family travelers. On overseas review platforms and social media, SAVHE has also received a growing number of organic recommendations and positive reviews from international users. This demonstrates the unique appeal of SAVHE's deep Chinese cultural roots and opens up broader possibilities for its future development.
我们对萨和的规划着眼于长远，持续推动品牌升级，向世界呈现中国本土品牌的高端生活方式的理念和趋势。萨和的发展讲究耐心，在规模上保持克制，在产品和服务上精益求精，持续迭代，将高远的愿景落实到每一次切实的体验之中。
We are taking a long term view on SAVHE. We will continue to drive brand upgrades, bringing China's homegrown philosophy and expression of upscale living to a broader global audience. SAVHE's development calls for patience. We will remain disciplined in scale, pursue continuous refinement in product and service, and translate our long term vision into every tangible experience.
中端品牌方面，用户对差异化体验的需求日益强烈，这正和轻居的定位相契合。轻居品牌沿着既定的长期节奏稳步发展，在用户侧也覆盖了更多元的客群，受到越来越多年轻用户的认可，商务客群的范围也在逐步拓宽，品牌的差异化势能持续积累。轻居3.3已陆续开出超过二十家酒店，凭借更优质的产品体验和更高效的经营模型，这一代产品在用户口碑和加盟商反馈上均获得高度认可。经营层面，轻居3.3产品溢价的能力更强，一季度轻居3.3再赢酒店RevPAR，相较3.0的产品高出10%以上。
For our midscale brand, demand for more differentiated stay experiences continues to grow, an opportunity that aligns closely with Atour Lite positioning. Atour Lite continued its steady long-term trajectory in the first quarter. On the customer side, Atour Lite has been attracting a more diverse customer base, gaining increasing recognition among younger users while steadily broadening its business traveler base. This has further built the brand's differentiated momentum. Atour Lite 3.3 has now opened in more than 20 hotels. Its enhanced product experience and more efficient operating model have earned strong recognition from both customers and franchisees. Operationally, Atour Lite 3.3 has demonstrated stronger pricing power. In the first quarter, RevPAR of Atour Lite 3.3 hotels in operation was more than 10% higher than that of the 3.0 version.
我们深知品牌的发展不是一蹴而就的事情，前期专注于产品打磨和运营体系建设，形成良性的品牌资产，是支撑健康可持续发展的必经之路。2026年，我们将持续全方位系统性地提升轻居的经营效率和产品的竞争力，聚焦二线及以上城市拓展，坚持有品质的数量增长，做好更扎实的积累，为后续轻居的发展奠定更好的基础。
We fully recognize that brand development is not built overnight. It requires us to first focus on product refinement and operating system development so that we can build strong brand equity and support healthy, sustainable growth. In 2026, we will continue to comprehensively and systematically enhance Atour Lite's operational efficiency and product competitiveness and continue to focus our expansion on 2nd tier and above cities, pursuing quality led expansion and laying a more solid foundation for the next stage of Atour Lite's development.
接下来是我们的零售业务。进入2026年，亚朵零售业务延续强劲的增长，核心品类持续表现亮眼。一季度零售收入10.7亿元，同比增长54.4%。在主流第三方平台床上用品的品类排名中，亚朵星球亦稳居头部，品牌力和产品力不断获得市场的验证。
Moving on to our retail business. Entering 2026, Atour's retail business sustained its strong growth momentum, with core categories continuing to deliver outstanding performance. Retail revenue reached CNY 1,071 million in the first quarter, representing 54.4% year-over-year growth. Atour Planet also ranked among the top brands in the bedding category on major third-party platforms, with our product and brand strength continuously being validated by the market.
我们清楚地认识到，要保持长久的竞争力，就必须持续创新，更快地响应，更精准地满足用户不断变化的需求和期待。随着对用户睡眠需求的理解不断加深，我们也在将这些隐性需求持续转化为更加坚实的产品力。随着亚朵星球产品力的提升，标志着我们正迈向技术创新和标准定义的新阶段。
We recognize that maintaining long term competitiveness requires continuous innovation, responding faster and more precisely to meeting the evolving needs and expectations of our users. As our understanding of users sleep needs deepens, we are steadily turning latent demands into tangible product strengths. We approach each product iteration as a systematic solution grounded in scientific testing and validation. As Atour Planet's product capabilities continue to grow, we are proud to enter a new stage defined by the technological innovation and standard setting.
枕头品类方面，一季度亚朵星球延续断层领先的优势，在主流第三方平台稳居品类销售第一。我们始终以真实的睡眠需求为导向，将其贯穿于枕头品类的每一次产品升级，积累了良好的口碑。今年春节期间，我们围绕节日场景推出深睡枕Pro 3.0新春款，配合品牌传播活动，将一件睡眠产品转化为一份情感的载体，帮助用户能够在假期中身心得到休憩，不知不觉自然深睡。
In the pillow category, Atour Planet maintained its strong and clear leadership in the first quarter, consistently ranking first in category sales on major third-party platforms. We have remained guided by genuine sleep needs, integrating this principle into every product upgrade within the pillow category, consistently building a strong word of mouth. During the Chinese New Year, we launched a special edition of the DeepSleep Memory Foam Pillow Pro 3.0. Paired with a supporting brand campaign, we sought to turn a sleeping product into a meaningful expression of emotion, helping users rest fully in body and mind during the holiday and fall naturally into deep sleep.
被子品类方面，我们的市占率稳步提升，一季度延续了非常不错的增长。深睡控温被系列持续热销，深受用户青睐。自发布以来，累计销量已突破300万条。三月底，我们推出了系列的升级产品，深睡控温被夏季Pro 3.0。新一代产品在动态控温和控湿的性能上实现了系统性的提升，采用了全面升级的双向控温技术，使温感波动更加平稳，同时吸湿与透湿的能力也进一步增强。随着被子品类的每一次创新迭代，我们的产品力也在持续提升，更精准捕捉用户的需求痛点，并凭借更完善的研发能力将其落地应用。深睡控温被夏季Pro 3.0推出仅45天，GMV即突破1亿元。
For our comforter category, market share is steadily increasing, with very strong growth continuing into the first quarter. The DeepSleep Thermoregulating Comforter series has consistently achieved strong sales and garnered significant user preference, with cumulative sales exceeding 3 million units since its launch. At the end of March, we launched the latest upgrade in the series: the DeepSleep Thermoregulating Comforter Pro 3.0 Summer Season. This new generation delivers systematic improvements in dynamic temperature and humidity control, featuring a fully upgraded two-way temperature regulation technology that helps smooth out temperature fluctuations. Its moisture absorption and permeability have also been enhanced. With each innovation cycle in the comforter category, our product strength continues to improve, enabling us to more precisely capture users' pain points and translate them into practical applications through enhanced R&D capabilities.
Within just 45 days of launch, the GMV of DeepSleep Thermoregulating Comforter Pro 3.0 Summer exceeded RMB 100 million.
新品类方面，销售势头也十分不错。近期，我们应季推出了深睡睡衣的夏季款，也上新了深睡床笠的新款配色。随着睡眠生态的持续完善，亚朵星球的用户心智日益稳固，品牌和用户之间的信任只在体验积累中不断加深。
For new categories, sales momentum also has been very positive. Recently, we launched the summer edition of the DeepSleep loungewear in line with the season and introduced the new color options for the DeepSleep fitted sheet. As our sleep ecosystem continues to evolve, Atour Planet's product mindshare among users is becoming stronger, and the trust between the brand and users is reinforced through each experience.
会员层面，截止一季度末，亚朵注册会员数达到1.16亿，同比增长20%。2026年，我们持续围绕深睡这一核心场景，推动住宿与零售业务的深度协同，强化会员用户对身份价值与权益的感知。同时，我们也在积极探索与调性契合的品牌开展合作，共同打造更丰富的品质生活场景。我们期待亚朵会员能够持续成为陪伴用户温暖同行的生活方式会员品牌，让每位用户都能收获身心安顿的体验。
Turning to membership. By the end of the first quarter, our registered individual members reached 116 million, representing a 20% year-over-year increase. In 2026, we will continue to focus on deep sleep as a core scenario, deepening the synergy between our hotel and retail businesses to enhance members' sense of membership value and benefits. At the same time, we are actively exploring partnerships with like-minded brands, jointly creating expanded quality lifestyle experiences. We hope Atour membership will continue to evolve as a lifestyle membership brand that accompanies users with warmth, helping every member find experiences where body and mind return to inner peace.
最后，我想和大家分享亚朵在ESG实践上的进展。我们近期正式发布了亚朵集团二零二五年度ESG报告。从云南的亚朵村起步，我们怀揣一份向善的初心，将这份源自亚朵村的质朴善意转化为亚朵集团成长的精神底色。我们将ESG的理念融入企业使命与核心的价值观中，不断提升ESG治理水平，在住宿与零售业务的各个环节落实绿色责任。我们也在通过产业支持和暖心帮扶，持续回馈亚朵村和周边村落，凝聚善意，传递温暖。
Finally, I would like to share Atour's progress on ESG. We recently released the Atour Group 2025 ESG report. Atour started from Yadu Village in Yunnan, and we have always been dedicated to a founding aspiration of doing good. Over time, this simple goodwill has become the spiritual foundation of Atour's growth. We have embedded ESG principles into our corporate mission and core values, continuously enhancing our ESG governance and advancing environmental responsibility across our hotel and the retail operations. Through industry support and the social assistance programs, we continue to give back to Yadu Village and the surrounding communities, fostering goodwill and extending warmth. At the end of 2025, we officially established the Atour Foundation with the goal of advancing public welfare in a more systematic way, extending care to people.
Recently, we launched a dedicated public welfare program focused on frontline housekeeping staff, open not only to our own employees, but also to housekeeping professionals across China's service industry, guided by our belief that everyone deserves kindness, aim to extend Atour's warmth to the broader industry, and enable these connections of goodwill to generate a more far-reaching impact. Grounded in the present and are looking to the long term, we will continue to uphold our mission of creating an intimate ambience where people can warmly connect, stay true to our founding aspiration, and fulfill our corporate responsibilities. We will remain committed to doing the right things with warmth, steadily move toward our long-term vision of a timeless Atour warmth along every journey, and continue to contribute steadfast and warm strength to the industry and society.
I will now turn the call over to our Co-CFO, Mr. Jianfeng Wu, who will discuss our financial results.
Thank you, Haijun. Hello, everyone. I would like to present the company's financial performance for the first quarter of 2026. Our net revenues for the first quarter of 2026 grew by 47.5% year-over-year to RMB 2,811 million. Revenues from our managed hotels for the first quarter of 2026 grew by 51.9% year-over-year to RMB 1,568 million. The increase was primarily fueled by the ongoing expansion of our hotel network, as well as supply chain business development. Revenues contributed by our leased hotels for the first quarter of 2026 decreased by 8.0% year-over-year to RMB 118 million. The decline was primarily due to a decrease in the number of leased hotels as a result of our product mix optimization.
The total number of our leased hotels decreased from 25 as of March 31st, 2025, to 19 as of March 31st, 2026. Revenues from our retail business for the first quarter of 2026 increased by 54.4% year-over-year to RMB 1,071 million. The growth was driven by increasing brand recognition, successful product innovation, and a broadened range of product offerings. Gross profits of our hotel businesses for the first quarter of 2026 increased by 29.5% year-over-year to RMB 550 million. The decline in the gross margin was primarily due to the changes in the revenue structure. Gross profit of our retail business for the first quarter of 2026 increased by 58.3% year-over-year to RMB 564 million. The increase in the gross margin was attributable to the increasing contribution from higher margin products.
Selling and marketing expenses accounted for 14.3% of net revenues for the first quarter of 2026, compared with 14.8% of the same period of 2025. The decrease was primarily due to improved efficiency of investment in our retail business. General and administrative expenses, excluding share-based compensation expenses, accounted for 4.2% of net revenues for the first quarter of 2026, compared with 4.1% for the same period of 2025. Technology and development expenses accounted for 1.8% of net revenues for the first quarter of 2026, compared with 2.1% for the same period of 2025. Adjusted net profit margin for the first quarter of 2026 was 17.4%, representing a decrease of 0.7 percentage points year-over-year.
Adjusted EBITDA margin for the first quarter of 2026 was 25.5%, increased by 0.6 percentage points year-over-year. We maintained a healthy cash position. As of March 31st, 2026, cash and cash equivalents totaled RMB 3.7 billion, with net cash of RMB 3.4 billion. Today, in accordance with our with our annual dividend policy, we declared the first cash dividend of 2026, totaling around $72 million as a reward for our shareholders' trust and support. That concludes our financial highlights for the first quarter of 2026. For the full year of 2026, we currently expect total net revenues to increase by 24%-28% compared with the full year of 2025. Now let's open the floor for Q&A.
Thank you. We will now begin the question and answer session. To ask a question, please press star 1 and 1 on your telephone and wait for a name to be announced. For the benefit of all participants on today's call, if you raise your questions in Chinese, please immediately repeat your questions in English. Please limit your questions to 1 at a time. If you wish to have a follow-up question, please rejoin the queue. One moment for the first question. Your first question comes from the line of Sijie Lin of CICC. Please go ahead.
Thank you, Management, congrats on another strong quarter. We noticed a faster pace of hotel closures in Q1. Want to know whether that will affect the full year closure targets. Additionally, is there any change regarding the guidance on new openings? Thank you.
Thank you, Sijie. Let me answer your question. In Q1, we had a relatively more concentrated pace of closures, with a total of 37 hotels being closed. The main reason was that some projects we had confirmed last year to be closed were carried over to this year for finalization, and resulting in that lag in the numbers. For our full year target for hotel closures this year remains unchanged at 80 hotels. Moreover, thanks to the proactive structural adjustments we initiated last year, the quality of our operating hotels now has clearly improved. In this process, we have also gradually sorted out and established a set of long-term mechanisms.
For older hotels that have been in operation for many years, we will provide targeted support and customized renovation plans to lower the barrier to upgrading, along with partial fee waivers and financial support policies to effectively help these older hotels enhance their market competitiveness.
As for new openings, we are proceeding steadily according to our planned pace and adhering to the premier hotel logic. Newly opened hotels must be the ones that have met our positioning and can provide high quality experience for guests. As of the end of Q1, we had 751 projects in the pipeline, ensuring an ample and high quality reserve. Therefore, we are maintaining our full year hotel opening target unchanged. Thank you.
Thank you, Sijie. Next question, please.
Questions? One moment for the next question. Our next question comes from the line of Dan Xi of Morgan Stanley. Please go ahead.
各位管理层，大家晚上好。我是大摩的分析师Dan Xi，现达。我的问题是关于RevPAR的趋势，想请教一下公司，二季度目前看到的RevPAR的整个趋势是如何？以及现在来看的话，全年RevPAR展望会不会有多一点点的color，有没有多一点变化？那我翻译一下。This is Dan from Morgan Stanley. My question is about RevPAR trend for Q2.
Can the management share some color with us? Whether there's any change in the management's visibility on the full year RevPAR outlook. [Foreign language]. Thank you.
好，谢谢Dan。进入二季度，我们观察到休闲旅游依然是强劲的，尤其是四月份部分地区的春假，也进一步释放了出行的需求。出行节奏的分散也让节假日的客流分布更加均衡。往前看，我们觉得市场仍然存在一定的波动，因此我们对于二季度的RevPAR表现还是保持一个谨慎乐观的态度。
Thank you, Dan. Entering Q2, we had observed that leisure travel remained strong. In particular, spring break in some regions during April further boosted travel demand. The more dispersed travel schedule has led to a more balanced distribution of holiday passenger flows. However, when we look ahead, market volatility still exists. Therefore, we maintain a cautiously optimistic attitude about RevPAR performance in Q2.
从长期趋势来看，我们也看到各类政策的积极驱动，持续地去激发服务消费的潜力，也为整个行业注入了比较强的消费活力。尽管外部环境的变化在短期可能会扰动出行市场，但是我们觉得整个住宿业整体仍然处于波动式复苏的阶段。在这个背景之下，我们可能不会刻意追求短期的表现，而是要更策略性地去拓展更广泛的商旅和休闲的客群，持续去打磨我们用户能够感知到的服务细节，让我们亚朵成为大家出行住宿时最安心可靠的选择。
As for long-term trends, we also see various proactive policies continuously to unlock the potential of service consumption and injecting strong vitality of consumption into the industry. Although changes in the external environment may cause short-term fluctuations in the travel market, and the accommodation industry as a whole remains in a stage of fluctuating recovery. Against this backdrop, we will not deliberately pursue short-term performance. Instead, we will strategically expand our reach to a broader range of business travelers and leisure travelers, continuously refine our service details that guests can truly feel, and make it toward the most reassuring and reliable choice for travelers when stay.
Thank you, Dan. Next question, please.
Moment for the next question. Our next question comes from the line of Lydia Ling of Citi. Please go ahead.
[Foreign language] 管理层好。我是 Citi 的 Lydia。我的问题呢，是想关于了解一下，加盟商最近的一些开店的情绪怎样？能否跟我们有一些 update？然后也包括以及公司在与一些签约的策略上是否发生一些变化。[Foreign language] Hi, management. This is Lydia from Citi. Could you share with some like the whole franchise sentiment on the opening recently and also whether your company make any changes to your signing strategy. Thank you.
好，感谢Lydia。今年三月我们也提到过，市场正逐步回归理性，加盟商的心态也更加成熟，不会因为短期波动而过度乐观和焦虑。在整个签约上，首先我们会持续强化我们在中国的核心城市、核心商圈的布局，抓住高频的商务出行和城市文旅需求的基本盘。第二方面，我们也在有选择地去捕捉休闲需求增长红利的部分，比如说强三线的重点的潜力市场，以及一些具备稳定流量的5A级的景区所在的城市。在这类具备市场基础，并且拥有长期增长空间的潜力的区域，精准地筛选具有发展前景的项目。
Thank you, Lydia. In March, we mentioned that the market was gradually returning to rationality and the franchisees are adopting a more mature mindset, so they are not over-optimistic nor anxious about short-term fluctuations. Regarding our signing strategy, first, we will continue to strengthen our presence in the core cities and prime commercial areas across China, capturing the fundamental demand from high-frequency business travel and urban cultural tourism. On the other hand, we are selectively capturing the growth opportunities from leisure demand. For instance, in key potential markets such as strong third-tier cities and cities with 5A-rated scenic spots that generate stable visitor flows. In these promising areas with solid market foundations and long-term growth potential, we are carefully selecting projects with strong development prospects.
第三点，长期看，签约品质是最重要的，但市场上对于品质这个内涵的理解，可能大家并不一致。我们也借这个机会跟大家分享一下亚朵的品质观。亚朵的品质观，不仅仅停留在工程硬件和结构升级的维度，而是以体验为核心，打造综合性的品质的组合体。领先的产品力是基础，核心区域的布点是能力，体验的持续精进是壁垒。这样的品质观，带来一个重要的结果，我们的议价能力不是靠成本压缩换来的，而是靠用户的感知换来的，这也让我们有能力持续地向上探索价格的边界。我想像萨和、亚朵见野这些新的品牌，就是我们在这个品质逻辑下生长出来的，它们不是对现有产品的替代，而是对亚朵品牌想象空间的一个拓展。谢谢。
Thirdly, in the long run, the quality of signed projects is of critical importance. There is no consensus in the market on what quality truly means. Let me take this chance to introduce to you the Atour's concepts of quality. Our concept of quality goes beyond mere hardware upgrades and structural improvements. It is rather rooted in experience and aims to build a comprehensive quality composite. Leading product strength is the foundation. The ability to open hotels in the core areas is a key capability, and the continuous refinement of experience is our competitive moat. Such a quality philosophy leads to one important outcome. Our pricing power is not achieved through cost cutting, but it is earned through guest perception. This give us the ability to continuously pushing pricing boundaries upward. New brands like SAVHE and Atour Origin have emerged upon this logic.
They are not replacements for existing products of ours, but rather the expansions of the Atour brand's imaginative horizon. Thank you.
Thank you, Lydia. Next question please.
One moment for the next question. Our next question comes from the line of Xingchen Yu of UBS. Please go ahead.
王总好，吴总好，我是UBS的陈星。我的问题是关于零售的，我们都看到了零售一季度表现得明显超预期了，有50%的增长，那新品能够一直得到用户喜爱的原因是什么？第二个呢，是管理方对于全年零售销售的指引是否有变化呢？Let me translate to English. This is Xingchen from UBS. My question is about retail business. Q1 retail revenue outperformed the market expectations. What factors have contributed to the sustained popularity of your new products? Given the positive trend, has management provided any update to the full year retail revenue guidance? [Foreign language].
好，感谢陈星。我们零售业务的增长，不仅仅停留在数字的维度，我也更想分享我们这个增长背后的产品的方法论。我们也举一个例子，就是以我们新上市的深睡控温被Pro夏季系列为例，我们在三年前推出这个第一代产品的时候，应该是去掉了传统的被套的设计，一体成型，双面的凉感。我想这是一种产品的结构的创新。到了第二代，我们也意识到一件事儿，用户对凉的真实的需求不是那种极致的冰凉，而是自然舒适的凉爽感。于是，我们重新优化了透气系统和面料的结构，把被动的凉感升级为主动的控温和排湿。我想，第二代是需求的升级的创新。到今年我们推出第三代产品的时候，我们也针对夏季的室内的温度忽冷忽热这一个痛点，我们希望能够为用户打造的是能够主动响应环境变化的动态的系统。所以，第三代我们进一步提升了动态的控温和控湿的性能。我想，这是场景的深化的创新。
Thank you, Xingchen. The growth of our retail business is not just about the numbers. Right now, what I really want to share is our product methodology behind this growth. Let me give you one example. Let's take the DeepSleep Thermoregulating Comforter Pro Summer season series as an example. When we launched its first generation three years ago, we changed the traditional duvet cover design and created a one-piece design with a cool to the touch feel on both sides. That was a product structural innovation, as I think. With the second generation, we realized that users' real need for coolness is not about extreme coldness, but a naturally comfortable, refreshing feel. We reengineered the ventilation system and the fabric structure, upgrading from passive cooling to active temperature control plus moisture wicking. This second generation is demand-driven innovation.
When we launched the third generation this year, we targeted the pain point of fluctuating indoor temperatures in summer, aiming to create a dynamic system that actively responds to environmental changes. The third generation further improves dynamic temperature control and humidity control. This is what I think as deepened scenario-driven innovation.
这样三次迭代下来，我们的产品定义其实发生了本质的变化。从一床凉被，到一床会透气的被，再到一床会呼吸的被。推动这个变化的呢，是用户在真实的使用场景里，那些被反复验证过的需求。这个例子呢，也代表了我们这条被子背后的方法论，其实也是我们整个零售业务的方法论。就是每一次的迭代都是把原来模糊的用户的感受转化为一个可以定义、可以衡量、可以复制的技术的标准。三次迭代下来，我们发现最难逾越的护城河不仅仅是某个材料或某个专利，而是这个持续能够靠近用户，持续地把感受翻译成标准的系统能力的能力。
After these 3 iterations, the definition of our product has fundamentally changed. From a cool comforter to an air permeable comforter, and then to a comforter that breathes. What drives this change are the repeatedly validated needs that emerge from real user scenarios. This example of comforter is also the methodology of our retail business. Each iteration transforms previously vague user sensations into a definable, measurable, and replicable technical standard. After these 3 iterations, we've now come to realize that the most insurmountable moat is not a specific material or patent, but rather the systematic capability to continuously stay close to users and constantly translate their feelings into standards.
Thank you, Chenxin. Next question, please.
我再补充一下这个陈新你问到的关于零售收入的指引的问题啊。那基于一季度的铺垫，还有我们新品做的一个销售的势头呢，我们是有信心超过此前提出的全年收入的目标，零售的收入目标。因此我们是将全年的零售收入指引上调至同比增长30%到35%。谢谢。
Let me add to the retail revenue guidance you asked about. Thanks to the solid groundwork laid in the first quarter and the strong sales momentum of our new products, we are confident that we will surpass our previously announced full-year revenue target. We are raising our full-year retail revenue guidance to grow 30%-35% year-on-year. Thank you.
Thank you, Xin Chen. Next question please.
Thank you for the questions. We will now take the last question coming from the line of Jiwei Liu of CITIC. Please go ahead.
叶绿，Luke，晚上好，我是中信证券的刘继伟。我们其实今天也看到公司在发这个财报的同时，也是公布了今年上半年的这样的一个分红方案，所以也是想请教一下公司在这个股东的回报政策方面，在未来是不是会有一些这个进一步的变化跟进展。I'm Jiwei from CITIC Securities. We noticed that you had also announced a dividend plan for the first half year. Could you share whether there have been any changes or developments in the shareholder return policy? Thank you.
谢谢继伟。股东回报方面，我们一直都非常重视。我们今天公告了我们US$1,200万的首次派息，差不多是前一年净利润的31%。另外，我们从去年启动到今年一季度，我们的回购金额也超过了US$1亿。未来我们会继续以分红加回购的方案，然后以前一年的GAAP净利润为基准，然后以100%的payout ratio这样的一个目标去实行我们的股东回报计划。
Thank you, Jiwei. Regarding shareholder returns, we have always placed a great importance on this. Today we also announced our first dividend distribution plan for this year with a total amount of approximately $72 million, representing about 31% of the previous year's net profit. Since we began repurchases last year and as of Q1 this year, the total repurchase amount has exceeded $100 million. Going forward, we will continue to follow our comprehensive shareholder return plan that combines dividends and share repurchases, still targeting approximately a 100% payout ratio based on the previous fiscal year's GAAP net profit as our shareholder return policy. Thank you.
谢谢。
Thank you. That concludes today's question and answer session. I will now turn the conference back over to Mr. Luke for any additional or closing comments.
Thank you for joining us today. If you have any further questions, please feel free to contact our IR team. We look forward to speaking with you again next quarter. Thank you and goodbye.
This concludes today's conference call. Thank you for participating. You may now disconnect.