A：China's service consumption is transitioning from scale-driven expansion to value-driven upgrades, focusing on quality and experience. The retail market is evolving from traditional manufacturing-driven models to an experience-driven approach, with consumers prioritizing holistic experiences and emotional value.

A：The company plans to seize innovation opportunities by focusing on innovation across product, operation, and organization dimensions, converting these opportunities into a long-term sustainable growth engine. The company's user-first philosophy, with experience at the cornerstone and brand as the anchor, is considered the fundamental path to navigate industry cycles.

A：In the first quarter of 2026, the hotel business saw positive year-over-year RevPar growth, driven by a steady increase in ADR. The overall RevPar was RMB 311.6, representing 102.4% of the level in the same period of 2025. The company opened 110 new hotels during the quarter, and by the end of the first quarter, the total number of hotels in operation was 2,888.

A：The hotel network adheres to a quality-first principle, maintaining strict quality control for every new signing and hotel opening. In the first quarter, 110 new hotels were opened, and the network's total number of hotels reached 2,888. The hotel pipeline under development was at a healthy level of 751 as of the same date.

A：The company is protecting the guest experience through official channels by implementing price assurance policies such as the price drop refund and best price guarantee, alongside other practical measures, including seamless execution during the Chinese New Year holiday. This approach earned widespread positive feedback from users and reflects the company's commitment to strengthening member loyalty and providing users with a reassuring experience.

A：The supply chain business is advancing with the addition of high-quality suppliers to the network, increasing platform diversification, and increasing franchisee procurement consolidation. The company aims to deliver long-term value through empowering franchisees and suppliers with high-quality products, enhancing procurement efficiency, and improving the overall franchisee experience.

A：The company has built a strong brand foundation through customer word of mouth and resilient brand mind share over the years, resulting in differentiated competitive advantages. The hotel brands are grounded in indep deconstruction of real guest experiences, creating a scalable operational standard and product model. Recent developments include the rollout of the 'A Tour' origin with cultural elements and service details from Yunnan, contributing to the brand's long-term mindset and quality upgrades. The upscale brand Shu Hotel has built brand visibility, recognition, and development potential, with a growing number of organic recommendations and reviews on overseas platforms, showcasing the unique appeal of Chinese cultural roots and future possibilities for development.

A：The growth of the mid-scale brand is being driven by the demand for more differentiated stay experiences and the brand's ability to attract a diverse customer base, including younger users and business travelers, which is further building the brand's differentiated momentum.

A：The 'Tour Light 3.3' has received strong recognition from both customers and franchisees, with an enhanced product experience and an efficient operating model. It demonstrated stronger pricing power in the first quarter, with the operating results more than 10% higher than the 3.0 version.

A：The company plans to focus on product refinement and operating system development to build strong brand equity and support healthy, sustainable growth. In 2026, they will continue to enhance operational efficiency and productivity and focus expansion on second-tier and above cities.

A：The retail business has sustained strong growth momentum with core Pleiss continuing to deliver outstanding performance. Retail revenue reached RMB 1 billion and 71 million in the first quarter, representing 54.4% year-over-year growth.

A：The company is maintaining long-term competitiveness by continuously innovating and responding swiftly and precisely to the evolving needs and expectations of users. As their understanding of user needs deepens, they are turning latent demand into tangible product strength through scientific testing and validation.

A：The 'Tour of Planets' has maintained a strong leadership position, consistently ranking first in category sales on major third-party platforms. They have launched a special edition of the deep sleep memory foam pillow Pro 3.0 with a supporting brand campaign, seeking to turn a sleeping product into a meaningful expression of comfort.

A：The company's category group market share is steadily increasing with very strong growth into the first quarter. The Deep Sleep Thermal Regulating Comforter series has achieved strong sales, with cumulative sales exceeding 300 million units since its launch. The latest upgrade in the series features fully upgraded two-way temperature regulation technology and has garnered significant user preference.

A：By the end of the first quarter, the company had 116 million registered individual members, enhancing the synergy between the hotel and retail businesses. The company is actively exploring partnerships with like-minded brands to create expanded quality lifestyle experiences. The goal is to evolve the tour membership into a lifestyle membership brand that reinforces warmth and trust between the brand and users.

A：The company has released the Atour Group 2025 ESG report and established the Atour Foundation to advance public welfare in a systematic way. They have launched a dedicated public welfare program focused on frontline housekeeping staff and partnered with various service industries to extend care and support. The company aims to create an environment where people can connect warmly, stay true to their founding aspirations, and fulfill their corporate responsibilities.

A：The company's net revenues for the first quarter of 2026 grew by 47.5% year over year to RMB 2000 811 million. Revenues from the hotel business grew by 51.9% year over year, while revenues from the retail business increased by 64.4% year over year. Gross profits for hotel and retail businesses also showed significant increases. Additionally, selling and marketing expenses, general and administrative expenses, and technology and development expenses were discussed in terms of their relation to net revenues.

A：For the first quarter of 2026, the adjusted net profit margin was 17.4%, which decreased by 0.7 percentage points year over year. The Adjust EBITDA margin was 25.6%, showing an increase of 0.6 percentage points year over year. The company maintained a healthy cash position with cash and cash equivalents of RMB 3.7 billion and net cash of RMB 3.4 billion. A first cash dividend of 2026 totaling US dollar 72 million was declared as a reward for shareholders' trust and support.

A：The company's target for hotel closures for the year remains unchanged at 80. Thanks to proactive structural adjustments initiated last year, the quality of the company's operating hotels has clearly improved. The company has also established a set of long-term mechanisms for older operating hotels and will provide targeted support and customized renovation plans.

A：The company is proceeding steadily with new hotel openings according to the planned pace and adhering to the premier hotel logic, with the requirement that new openings must meet the company's positioning and provide high-quality guest experiences. As of the end of Q1, there were 751 projects in the pipeline, ensuring an ample and high-quality reserve. Therefore, the company maintains its full-year hotel opening target unchanged.

A：Entering the second quarter, the management maintains a cautiously optimistic attitude towards Revpar performance, attributing this to strong leisure travel, particularly spring break activities in some regions during April, leading to a more balanced distribution of holiday passenger flows. However, they acknowledge market volatility ahead, implying a cautious outlook.

A：The company aims to strengthen its presence in core cities across China, capturing demand from high-frequency business travel and urban cultural tourism. It is selectively capturing growth opportunities from leisure demand in key markets. For new projects, the company focuses on long-term prospects and ensures that the quality of signed projects is paramount. The company's concept of quality goes beyond hardware upgrades and focuses on building a comprehensive quality composite leading product, rooted in experience with continuous refinement to provide a reliable choice for travelers.

A：The company's retail business growth is attributed to product innovation and a customer-centric approach. The example given is the deep sleep thermal regulating Comforter Pro summer season series, which underwent product structural innovation and demand-driven innovation. After three iterations, the product's definition fundamentally changed, translating user sentiments into measurable and replicable technical standards. As a result of solid first-quarter performance and strong sales momentum of new products, the company has decided to raise its full-year retail revenue guidance to grow 30% to 30% year on year.

A：The company announced a first dividend distribution plan for the year with a total amount of approximately 72 million US dollars, representing about 31 percent of the previous year's net profit. This indicates the company's continued focus on shareholder returns. In addition, the company has been engaging in share repurchases, with a total repurchase amount exceeding 100 million US dollars since last year. Going forward, the company plans to maintain its comprehensive shareholder return plan, targeting approximately a 100% payout ratio based on the previous fiscal year's GA net profit.