Atour Lifestyle Holdings (ATAT) Q2 2026 earnings call transcript

Thank you, Operator. Good morning and good evening, everyone. Welcome to our second quarter 2026 earnings conference call. Today, you will hear from our founder, chairman, and CEO, Mr. Wang Haijun, and our EVP co-sifo, Mr. Wu Jianfeng. Before we continue, please be aware that today's discussion will include forward-looking statements and federal securities laws. These statements are subject to various risks and uncertainties and the 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-gap 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 acceptable 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 second quarter 26 earnings call today. 规模扩张向高质量发展的转变 竞争重点逐步从单纯的供给增长 转向产品创新服务能力和经营效率 零售市场中消费者在关注产品品质的同时 也越来越重视产品是否契合自身生活方式 对个性化的需求日益凸显 This means that in the new market, we will continue to continue to grow and continue to achieve the market. We will have the opportunity to get the value of the market. Last year, we have been pushing the new three-year strategy for the Chinese market. The two main main business and retail companies are constantly reaching the market, and increasing the market. The business will continue to grow and continue to grow. Please turn to our results presentation. In the first half of 2026, China's consumer market continued to show divergent performance.

In both the hotel and retail sectors, we saw a clear split. Homogeneous products and services remained under pressure, while companies that deliver differentiated experiences and have strong brand equity showed greater resilience. More specifically, the hotel industry is shifting from scale-driven expansion to high-quality growth. Competition is increasingly centered on product innovation, service capabilities, and operational efficiency rather than supply growth.

In retail, consumers are not only pursuing product quality but are also placing increasing importance on whether products align with their lifestyles and the demand for personalization is also growing. This means that under these new consumer trends, brands that consistently invest in quality and build differentiated experiences are better positioned to earn consumer recognition. In the first half, we firmly advanced our new three-year strategy, Chinese experience, brand-led excellence, making continuous breakthroughs across hotel and retail businesses. We also consolidated our experience advantage and enhanced the brand momentum, driving long-term healthy and sustainable growth.

Now, I would like to provide more details on our business performance for the second quarter of 2026. The second ADR is the 100.7% Let's begin with our hotel business. In the second quarter, our rough part was RMB 345.4, representing 100.7% of the level in the same period of 2025. ADR maintained steady growth, reaching 101.2% of its level in the same period of 2025, while OCC stood at 99.7%. The best part for our mature hotels in operation for more than 18 months was RMB 336.8, representing 97% of the level in the same period of 2025. ADR and LCC were 98.3% and 99% of their respective levels in the same period of 2025.

As for the first time, we are holding the best quality of the product, and to be careful to protect the project and the business plan. Second, the company has a new company's company's company, and the product and the area's market have been added to the main area, and the company has been added to the main area of the business. After the second time, the company's company's company has reached 2,175. The company's company has reached 811. The company's company is keeping healthy.

As for our hotel network, we continued to follow a quality first principle and maintain strict standards for project selection and new hotel openings. In the second quarter, we opened 101 new hotels. Product strengths and prime locations together enhanced the quality of our hotel presence in core markets. By the end of the second quarter, our total number of hotels in operation reached 2,175, and our pipeline of hotels under development remained at a healthy level of 811.

On the hotel channel front, our CRS channel continued its steady performance in the second quarter, accounting for 61.5% of total room nights sold. The contribution of room nights sold to corporate members was 20.4%.

Next, I will show you the latest development of the company's product. Next, I would like to share the latest developments across our hotel brands. The most important line of the market is the Yardot Long-Ti Sheming of the main chain. Through several years of growth, we have already established the top-level of the first place. The development of the Yardot-酒店 is a professional-led home-time market market market. Due to the customer-to-go-be-reported industry and customer-newed market market market, we have been going to build the market market. The latest Yardou 3.6 version has been achieved by the balance of the product experience and investment return.

At the same time, it has also been improved. In the second季度, Yardou 3.6 has been continued to be a long-term. The Yardou 3.6 has been over 370 yen. It has been confirmed that the market has been over the top-mid-scale segment has long been a towards core focus. Over the years, we have established a clear leadership position. Looking back at our development, Atura Hotel was initially perceived by users as a lifestyle brand, catering to the needs of upper-mid-scale business travelers.

As consumer trends and user needs evolved, we continued to upgrade our products. With disciplined investment, the latest Atura 3.6 strikes a balance between the experience it delivers and investment returns. It preserves its strength in business travel while introducing a greater sense of ease. Atura 3.6 again delivered outstanding performance in the second quarter, with rough part of hotels in operation exceeding RMB 370, further validating market recognition of the product upgrade. 在中高端品牌矩阵中亚朵建野与亚朵酒店协同发展 持续拓展中高端酒店市场的增长空间 截至目前亚朵建野在营酒店数量超过60家 管道内储备项目超过90家 亚朵建野在提供更具辨识度体验的同时也具备更强的溢价能力 在二季度亚朵建野在营酒店的roll park超过450元 体现出极强的差异化的竞争力 Within our upper mid-scale brand portfolio, Atoor Origin and Atoor Hotel are developing in parallel, further expanding our growth potential in the segment. To date, more than 60 Atoor Origin hotels are in operation, with over 90 projects in the pipeline.

Atoor Origin offers a more distinctive experience and commands stronger pricing power. In the second quarter, Ravpar of a tour origin hotels in operation exceeded RMB 450, highlighting its strong differentiated competitive edge.

A tour origin is designed to reflect the Yaduo village as it truly is, natural, tranquil, warm, and authentic. In April, we wrote out a series of distinctive experience touch points across a tour origin hotels nationwide. Upon arrival, guests are welcomed by a wilderness-inspired signature scent. In the afternoon, they can enjoy the tea break in the chatting room. At night, they enjoy our deep sleep experience. And in the morning, they are served a breakfast featuring local Yunnan flavors.

Through this more complete experience, we want guests to feel closer to nature, feel like they're on vacation, and to rediscover their inner peace. In the end of the market, the key is the key to the customer's In the mid-scale market, differentiation ultimately rests on a stay experience that customers can truly feel. This has long been Atour Lite's focus. After continued refinement, the Atour Lite 3.3 cost model has entered a new phase of systematic optimization and scaled road-out.

We are concentrating resources more precisely on the core experience areas that customers care about, including sleep and breakfast. A Tour Light 3.3 not only provides customers with a more comfortable and relaxing stay, but also improves franchisees' operating efficiency through a more disciplined investment model. In the second quarter, RASPAR of A Tour Light 3.3 hotels in operation exceeded RMB 340, demonstrating strong operational resilience. 目前清局已在高线城市落地了更多的标杆项目 获得了加盟商的积极反馈 品牌基础也越来越稳固 现阶段清局人会坚持品质优先 在夯实运营能力的基础上稳步扩大城市覆盖 引领终端市场 市场中的产品和体验的创新 At the same time, we also strengthen the connection between young customers. We have developed the connection between the students' customers, and in the last few months we have developed a special partnership and improved the brand in the young customers.

Atour Light has established more flagship projects in higher tier cities which have received positive feedback from franchisees while the Brent Foundation continues to strengthen. At this stage, Atour Lite will continue to take a quality-first approach as we strengthen our operating capabilities. We will steadily expand Atour Lite's city coverage and the continue to drive product and experience innovation in the mid-scale hotel market.

Meanwhile, we are deepening a tour light's connection with younger customers. In the second quarter, we introduced exclusive benefits for students and launched distinctive brand collaborations over the summer, further raising brand awareness among younger consumers.

From the launch of the product, the role of the product has been in the beginning of the year. where guests can breathe freely and feel truly at peace. Saha has played a role in driving the upward breakthrough of a tour's brand portfolio since its launch. It has advanced our brand philosophy and continues to broaden the value it delivers, setting a new standard for upscale lifestyle.

In the second quarter, Saha's operating performance reached a new high, with RevPol of hotels in operation exceeding R&B 1,000. On the operation side, we continue to enhance SAHO's refined management capabilities, Gradually developing a replicable experience methodology with a global perspective that covers brand standards, service systems, and talent training. In the second quarter, we also expanded Saha's wellness offerings with a broader selection of classes and dining options. Our goal is to provide guests with an even more exceptional experience throughout their stay. 接下来是我们的零售业务 二季度亚朵星球延续了强劲的增长市场 零售收入达到15.75亿元 同比增长63% 从品类结构来看 我们逐步从单一大单品的驱动模式向更加丰富的产品矩阵发展 分品类来看 亚朵星球持续巩固在枕头品类断层领先的优势 深睡人Pro系列自推出以来 累计销量已经超过1200万只 同时深睡控温被夏季Pro3.0持续热销 也带动被子品类实现快速增长 二季度被子品类的GMV同比增长超过80% Moving on to our retail business. In the second quarter, Atual Planet sustained its strong growth momentum with retail revenue reaching RMB 1,575,000,000, up 63% year-over-year.

In terms of category mix, we are gradually shifting from a single blockbuster product model to a broader product portfolio. By product category, Atura Planet further consolidated its dominant position in the pillow category with cumulative sales of the Deep Sleep Memory Phone Pillow Pro Series surpassing 12 million units since launch. The deep sleep thermoregulating Comforter Pro 3.0 summer season continued to see strong sales, driving rapid growth in the Comforter category.

GMV of the Comforter category increased by more than 80% year over year. Fitted sheets and launchwear, two strategic categories we introduced the last year, maintained outstanding sales momentum and contributed a larger share of revenue. 从长期来看 零售业务持续突破的背后 是我们围绕品牌 产品 供应链和内容创意建立的系统性的能力 以及由此形成的坚实壁垒 首先 在品牌能力上 经过多年的积累 亚朵星球自然深邃的品牌心智深入人心 用户对亚朵睡眠产品的信任也在持续增强 第二 产品研发能力上 我们始终围绕用户真实的睡眠需求 进行产品创新 通过持续跌代 建立了从单品突破 到品类延展的研发能力 逐步完善了睡眠产品的矩阵 第三 供应链能力上 我们重塑了行业的供应链体系 多项工艺精度突破了行业原有的标准 建立了从原材料到成品 全链路的品质管控体系 产品一致性和可靠交付的能力达到了行业领先的水平 4. In the ability of the content and user-friendly, our strategy is to express the value of the product's quality. Through the content-based and experience, it will allow users to feel more deeply and more deeply. We will further further further into the content-friendly product and user-friendly. Over the long term, the continued breakthroughs in our retail businesses are backed by systematic capabilities built across our brand, product, supply chain, and content creation.

Together, they form a strong competitive moat. First, in brand building, Atoir Planet has firmly established natural deep sleep in users' minds over the years, while users' trust in our sleep products continues to grow.

Second, in product development, we have always innovated to address users' genuine sleep needs. Through continuous iteration, we have built R&D capabilities that deliver breakthroughs in individual products and support expansion into new categories. This has enabled us to steadily broaden our sleep product portfolio.

Third, in supply chain capabilities, we have reshaped the industry's supply chain system and set new industry standards for precision across multiple manufacturing processes. We have also established end-to-end quality control from raw materials to finished products with industry-leading product consistency and delivery reliability.

Fourth, we have strong capabilities in content creation and user engagement. Our strategy has always been to communicate product value with clarity and precision. By creating content around real sleep scenarios and experiences, experiences, we make deep sleep more tangible and deepen the emotional connection between our brand and our users.

转化为更加科学可验证可持续优化的产品标准 基于这一理念深睡人pro4.0针对用户夜间多睡姿变化的真实充电 通过升级的动态支撑系统提升了在不同睡姿下的乘托体验 而深睡控温背4Gpro3.0则围绕温湿度波动的环境下 and the need for the need for the sleeper's sleep. Through the temperature of the temperature, it has improved the temperature and temperature of the temperature. It has improved the temperature of the temperature and temperature of the temperature. Building on these capabilities, we recently launched upgraded products in our core categories, including the Deep Sleep Memory Foam Pillow Pro 4.0 and the Deep Sleep Thermal Regulating Comforter Pro 3.0 all season.

Both new products are built on the Atoa Planet Deep Sleep standard we introduced last year. Through this standard, we aim to translate users' experience of sleeping well into product standards that are more scientific, verifiable, and continuously refinable. Guided by this approach, the Deep Sleep Memory Foam Pillow Pro 4.0 addresses a real pain point of frequent position changes during sleep. With an upgraded dynamic support system, it provides better support across every sleeping position. The Deep Sleep Thermoregulating Comforter Pro 3.0 all season also addresses the need for sleep comfort under changing temperature and humidity conditions. Its temperature and humidity balancing system improves temperature regulation and moisture management, allowing it to flexibly adapt to seasonal temperatures, winds, and changes in how warm or cool users feel throughout the night.

of the product product. The product development and technology will be a long-term product. The product development of the product product is a very important role in the product product.

Looking ahead, we will continue developing our retail business with a long-term mindset. Guided by user needs, we will continue to innovate and evolve our product portfolio, further increase our market share in core categories and consolidate our leadership. We will also continue strengthening Atoa Planet's brand value by translating our strengths in product development and technology into a lasting competitive mode for the brand. We will consolidate Atoa Planet's position as the sleep brand that users choose first and consistently trust.

Turning to membership, by the end of the second quarter, a tour had 120 million registered individual members. As our membership base has grown, the strategic growth of our membership ecosystem has become clearer. It is not only a solid foundation for our hotel and retail businesses, but also a platform for retaining long-term users and cultivating user value.

at the same time we are building a more refined system for engaging different user groups by focusing on their core needs we deliver more relevant benefits and experiences through segmented engagement and targeted outreach we aim to deepen our connection with users and build longer lasting relationships with them throughout the user life cycle 最后我想和大家分享一些思考 近期我们推出了亚朵安心六大承诺 围绕用户入住全流程中的核心环节 进一步明确服务标准和保障措施 我们认为安心不是一句口号 而是用户在每一次入住中都能够清晰感知 稳定获得的体验 通过把这些体验做得更扎实 Finally, I would like to share a few thoughts.

Recently, we introduced a tour's six commitments to peace of mind, which further clarify our service standards and safeguards across key touch points of the guest journey. We believe peace of mind is not just a slogan. It should be an experience that guests can clearly feel and consistently enjoy during every stay. By delivering these experiences more reliably, we aim to make peace of mind an integral part of how people perceive the Atore brand. We also hope to set a new benchmark for service standard across the industry.

We believe that only when the customer sees, they respect, they respect, they love and love, 才会更自然地传递给用户, and the customer and product.

We hope to continue to be the leading customer to the customer. The experience of the industry will continue to increase. Behind every experience that gives guests peace of mind is the dedication of our service staff. We continue to pay close attention to their development and enhance their experience at work including launching a public welcome program for hotel housekeeping professionals nationwide improving the work environment for frontline service staff, and expressing respect and gratitude to them through initiatives such as Service Staff Appreciation Day. We firmly believe that when service staff are seen, respected, and treated with care, their kindness and warmth will reach guests naturally.

This creates lasting trust between our brand and our users. With that in mind, we hope to continue advocating for service excellence and leading the industry toward a higher standard of experience.

These actions are grounded in a tourist life. long-term commitment. Across both our hotel and retail businesses, we have always believed that quality is the foundation of sustainable long-term growth. By improving product quality, refining the user experience, and strengthening organizational capabilities, we can keep creating value for users and build competitive strength that endures through the industry cycles.

Looking ahead, we will continue to do the right things with warmth. With user experience at the center and organizational capabilities as the foundation, we will carry that warmth through every experience we deliver. This enduring warmth will define a tour as we navigate industry cycles and build for the long term.

Next, I will now turn the call over to our co-CFO, Mr. Wu Jianfeng, who will discuss our financial results.

Thank you, Haijun. Hello, everyone. I would like to present the company's financial performance for the second quarter of 2026. Our net revenues for the second quarter of 2026 grew by 41.4% year over year to RMB 3,419 million. Revenues from our monetized hotels for the second quarter of 2026 grew by 32.8% year over year to RMB 1,725 million. The increase was primarily fueled by the ongoing expansion of our hotel network as well as the of the supply chain business development. Revenue contributed by our leased hotels for the second quarter of 2026 decreased by 11.8% year over year to RMB 132 million. The decline was primarily due to a decrease in the number of leased hotels. The total number of our leased hotels decreased from 24 as of June 30, 2025 to 19 as of June 30, 2026.

Revenues from our retail business for the second quarter of 2026 increased by 63.2% year-over-year to RMB 1,575 million. The growth was driven by increasing brand recognition, successful product innovation, and a broadened range of product offerings. Growth profit of our hotel businesses for the second quarter of 2026 increased by 18.7% year-over-year to RMB 659 million. The decline in the growth margin primarily reflected a shift in the revenue mix as our Our lower margin supply chain business grew faster and accounted for a larger share of hotel revenue. Growth profit of our retail business for the second quarter of 2026 increased by 57.4% year-over-year to RMB 809 million. The decrease in gross margin primarily reflected a shift in the product mix.

Marketing and marketing expenses accounted for 17.4% of net revenues for the second quarter of 2026, compared with 15.9% for the same period of 2025. The increase was mainly due to the investment in brand recognition and the effective development of online channels in line with the growth of our retail business. A G&A expenses, extruding share-based compensation expenses accounted for 3.5% of net revenue for the second quarter of 2026, compared with 3.6% for the same period of 2025. Technology and development expenses accounted for 1.6% of net revenue for the second quarter of 2026, compared with 1.7% for the same period of 2025. The net profit margin for the second quarter of 2026 was 16.0%, representing a decrease of 1.3 percentage points year over year.

Adjusted EBITDA margin for the second quarter of 2026 was 23.5%, decreased by 1.2 percentage points year over year. We maintained a healthy cash position as of June 30, 2026. cash equivalents totaled RMB 3.9 billion with net cash of RMB 3.7 billion. That concludes our financial highlights for the second quarter of 2026. And for the full year of 2026, we currently expect total net revenue to increase by 30% compared with the full year of 2025.

Now let's open the floor for Q&A.

Thank you. This is the business development of the industry, and the business development of the industry. The overall business development of the industry is the best to have a competition, and the best to have a competition. In the current market, the company's business development is the market's growth and the long-term growth. The first product is the first choice of the product, the product is a strong product, and the first product is a stable investment. I think it is the first choice of the first product. We believe that the business adjustment is a very important product, and it is a key role to increase the market level.

Thank you, Dan. There are multiple factors behind the supply dynamics in the hotel industry, including macroeconomic environment, supply-demand relationship, and property availabilities. They all lead to cyclical fluctuations. So this is a natural adjustment process as the industry matures. Rather than focusing solely on overall supply volume, we place greater emphasis on truly competitive, the high-quality supply that meets consumers' quality expectations.

In the current market environment, franchisees are more focused on a brand's ability to sustain growth and its long-term resilience through market cycles. The leading brands with superior customer experiences, strong brand equity, and proven product models, and stable investment returns remain as their top choice for those franchisees. ease when making their investment decisions. We believe that the industry adjustment period is precisely a critical phase for leading brands to further consolidate their strengths and increasing their market share.

我们品牌规模的扩张 目前呢 我们的品牌矩阵 已经覆盖了更广阔的价格带和消费场景 也能够满足消费者更加多元的需求 并且适配不同的物业条件 在布局上呢 我们始终会围绕用户的需求 以及品牌的长期价值 高线层次的核心商圈仍然是我们的重点 当然呢 我们也会积极拓展 强三线城市,五危景区周边,以及城市更新背景下的一些特色的物业的机会,作为补充。 We are not pursuing scale expansion alone. Our core goal is to build sustainable brands and strong brand equity across all tiers. And on the foundation of steadily enhancing brand strength, we are expanding our brand presence. Currently, our brand portfolio already cover a broader range of price points and consumption scenarios, capable of accommodating diverse property conditions and meeting more varied market demands. In terms of project distribution, we center around user needs and long-term brand value, with higher-tier city core business districts still remaining as our primary focus. At the same time, we are actively expanding into strong third-tier cities, areas surrounding the 5A-rated cynic spots, and distinctive property opportunities arising from urban renewal projects as a supplement.

上半年呢我们的签约是延续了稳健的趋势 管道数量的环比也有了不错的提升 这个呢也为我们未来的开业提供了高质量的储备 基于这些呢我们维持对全年开店目标保持不变 另外呢我们二季度以来整体关店的节奏环比也是明显放缓 We also maintain the total cost of 80 companies. Thank you. on a sequential basis since the second quarter. Therefore, we are also keeping our full year guidance of approximately 80 hotel closures unchanged. Thank you. Next question, please.

Thank you, Ronald. And let me address this question. We believe that the long-term demand in the quality accommodation market continues to rise. Whether for business travel or leisure tourism this fundamental logic has not changed In the short term, due to weather factors such as typhoons and heavy rainfall in some regions during early July. The travel pace during this summer season was slightly delayed compared to previous years. But since the end of July, with the arrival of peak season, summer travel demand has shown signs of stabilizing and picking up.

So we also hope that the market can move from high-頻 data to get into the direction of the business and the advantage of the market.

beyond short-term data points and focus more on the positive adjustment trends within the industry and the ability of leading brands to withstand cycles.

We also have built our company's business model, and continue to expand our new business owners, and continue to increase our demand for the service and the service of the customer.

Thank you, Jiwei. First, with business demand, the customer base is becoming more diversified. Before, larger KA enterprise clients were a major source of demand. However, as the market landscape evolves, we're now also seeing new opportunities emerging from local core enterprises, universities, and research institutions. Therefore, while we continue to serve our core corporate clients well, we are also enhancing our business travel system to tap into new resources of business travelers, thereby strengthening both our demand coverage and the stability of our customer structure. In addition, on the leisure travel demand side, more and more consumers are paying greater attention to the experiential value of their stay beyond simply fulfilling functional accommodation needs. This aligns well with a tour's direction of pursuing high quality and multi-brand development.

Through differentiated positioning, our brand portfolio is able to more precisely match the needs of different customer segments and the consumption scenarios. At the same time, inbound tourism is also a key growth market that we have been focusing on over the long term. With the gradual recovery of the inbound tourism market, we are actively advancing cooperation with overseas distribution channels and brand communications and capture the long-term opportunities brought by the growth of international guests in the future.

Okay, thank you, Lydia. I'll answer the question of the previous question. The last year, the new world has been kept in the fast-distance. We think this growth is a only place to build a power-based environment. The most important thing is to keep the supply, products, and supply chain, and content of the system.

Thank you, Lydia. Let me answer the first part of your question. In the first half of this year, a tour plan has continued to maintain relatively fast growth. However, for us, growth itself is merely an external reflection of the building of our capabilities. What matters more is the continuous accumulation and improvement of our systematic capabilities across brand, product, supply chain, content, and other areas. A tour planet has never chased the short-term trends or run discount promotions.

Instead, we focus on product innovation and brand building around users' real sleep needs. We believe that products that truly create user value and deliver consistent quality will ultimately earn long-term recognition from the users. In the product, according to our business development, we have made a more powerful sleepwear. On the product side, as the business developed, we have gradually built a more comprehensive sleep product portfolio. While our pillow category continues to maintain its leading edge, our comforters also achieved rapid growth. New categories, extending from the sleep scenario, such as fitted sheets and launch wear, are also becoming important growth drivers.

to increase the value of 40% of the sales. Thank you. Regarding the full year revenue guidance for the retail business, based on the strong performance in the first half of the year and the solid sales momentum following new product launches, we are raising our full year retail revenue growth guidance to 40% year over year.

Thank you, Chen Xin. Let me answer this question. We still keep the decision of the year-end to the entire year-end rate.

But the impact of the year-end rate has been a little bit. Thank you, Chen Xin. Let me address this question. Currently, we still maintain our initial judgment from the beginning of the year that the full year net profit margin will see a slight year-on-year decline. However, we observed some shifts in the factors affecting our profit margin.

will cause a huge impact on the net. But from the past year's current business, a more massive change is that the revenue rate has exceeded the year's forecast. So while the revenue rate is still the revenue rate and revenue rate is basically a bit of a difference. So, GNA and R&D revenue rate is expected to be a relatively strong. At the beginning of the year, we anticipated that increased investment in talent expansion and the technology R&D aimed at supporting long-term capability building would drive up our GNA and R&D expense ratios and exert some pressure on net margin. But based on our actual first half performance, a positive development has emerged. Revenue growth exceeded our initial expectations.

So while we continue to invest in capability building, the expense growth has remained broadly aligned with revenue growth. As a result, we now expect the GNA and R&D expense ratios to stay relatively stable.

As the full-year revenue growth for both our hotel supply chain business and retail business is expected to exceed our initial estimates, driving a shift in the group's revenue mix. In addition, as we continue to execute our shareholder return program, the group's effective tax rate is also expected to rise compared to last year, which will have a certain impact on net margin.

Considering both the revenue mix shift and the higher tax rate, we anticipate a modest year-over-year decline in the group's full-year net profit margin.

We have over 1.5 million dollars. On the other hand, the company is also continuing to continue to continue with the current trade-off policy. Thank you. And as in terms of shareholder returns, we have consistently executed it in accordance with our established strategy and pace. Since the initiation of the share repurchase program up to the end of the second quarter, The cumulative repurchase amount has exceeded US$150 million. In terms of dividends, we are also continuing to steadily implement our existing dividend policy.