- Net revenues for the second quarter of 2023 increased by 112.3% year-over-year to RMB1,093 million (US$151 million), compared with RMB515 million for the same period of 2022.
- Net income for the second quarter of 2023 was RMB239 million (US$33 million), compared with RMB60 million for the same period of 2022. Adjusted net income (non-GAAP)1, which excluded share-based compensation expenses from net income, for the second quarter of 2023 increased by 312.9% year-over-year to RMB249 million (US$34 million), compared with RMB60 million for the same period of 2022.
- EBITDA (non-GAAP)2 for the second quarter of 2023 was RMB334 million (US$46 million), compared with RMB104 million for the same period of 2022. Adjusted EBITDA (non-GAAP)3, which excluded share-based compensation expenses from EBITDA, for the second quarter of 2023 increased by 232.4% year-over-year to RMB344 million (US$47 million), compared with RMB104 million for the same period of 2022.
SHANGHAI, China, Aug. 17, 2023 (GLOBE NEWSWIRE) -- Atour Lifestyle Holdings Limited (“Atour” or the “Company”) (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, today announced its unaudited financial results for the second quarter ended June 30, 2023.
Second Quarter of 2023 Operational Highlights
As of June 30, 2023, there were 1,034 hotels with a total of 120,404 hotel rooms in operation across Atour’s hotel network, representing a rapid increase of 24.0% and 24.2% year-over-year in terms of the number of hotels and hotel rooms, respectively. As of June 30, 2023, there were 523 manachised hotels under development in our pipeline.
The average daily room rate4 (“ADR”) was RMB475 for the second quarter of 2023, compared with RMB362 for the second quarter of 2022 and RMB443 for the previous quarter. The ADR for the second quarter of 2023 recovered to 109.8% of 2019’s level for the same period.
The occupancy rate4 was 77.1% for the second quarter of 2023, compared with 65.5% for the second quarter of 2022 and 72.5% for the previous quarter. The occupancy rate for the second quarter of 2023 recovered to 103.6% of 2019’s level for the same period.
The revenue per available room4 (“RevPAR”) was RMB384 for the second quarter of 2023, compared with RMB251 for the second quarter of 2022 and RMB337 for the previous quarter. The RevPAR for the second quarter of 2023 recovered to 114.8% of 2019’s level for the same period.
The GMV5 generated from our scenario-based retail business was RMB267 million for the second quarter of 2023, representing an increase of 283.9% year-over-year.
“We are delighted to report a strong second quarter of 2023. Our remarkable performance in both hotel and scenario-based retail businesses further strengthened Atour’s competitiveness and leading position in the industry,” said Mr. Haijun Wang, Founder, Chairman and CEO of Atour. “Our unwavering dedication to providing customers with exceptional experiences continued to differentiate Atour and enhance our brand awareness, resulting in high operating efficiency and full recovery across OCC, ADR and RevPAR. The new hotel signings reached a quarterly record high, propelling us towards our mid-term goal of having 2,000 premier hotels by 2025. Furthermore, we have been proactively discovering and satisfying customers’ evolving demands and have expanded our customer base beyond just accommodation, enabling us to promote the prosperity of our scenario-based retail business. Going forward, we will continue to uphold our commitment to providing a ‘Chinese experience’ while driving Atour’s healthy and sustainable growth,” Mr. Wang concluded.
Second Quarter of 2023 Unaudited Financial Results | ||||||
| (RMB in thousands) | Q2 2022 | Q2 2023 | ||||
| Revenues: | ||||||
| Manachised hotels | 295,134 | 626,483 | ||||
| Leased hotels | 142,874 | 219,524 | ||||
| Retail revenues and others | 76,575 | 246,702 | ||||
| Net revenues | 514,583 | 1,092,709 | ||||
Net revenues. Our net revenues for the second quarter of 2023 increased by 112.3% to RMB1,093 million (US$151 million) from RMB515 million for the same period of 2022, mainly driven by the robust growth in both hotel and scenario-based retail businesses as we continued to recover rapidly since the beginning of 2023.
- Manachised hotels. Revenues from our manachised hotels for the second quarter of 2023 increased by 112.3% to RMB626 million (US$86 million) from RMB295 million for the same period of 2022. This increase was primarily driven by the ongoing expansion of our hotel network and the growth of RevPAR. The total number of our manachised hotels increased from 801 as of June 30, 2022, to 1,001 as of June 30, 2023. RevPAR of our manachised hotels surpassed 2019’s level and increased to RMB377 for the second quarter of 2023 from RMB246 for the same period of 2022.
- Leased hotels. Revenues from our leased hotels for the second quarter of 2023 increased by 53.6% to RMB220 million (US$30 million) from RMB143 million for the same period of 2022. This increase was primarily due to the rebound in RevPAR, which surpassed 2019’s level and increased to RMB537 for the second quarter of 2023 from RMB333 for the same period of 2022.
- Retail revenues and others. Revenues from retail and others for the second quarter of 2023 increased by 222.2% to RMB247 million (US$34 million) from RMB77 million for the same period of 2022, with scenario-based retail revenues growing by 297.8% year-over-year to RMB212 million. This increase was driven by widespread recognition of our retail brand and solid product positioning, as well as advanced product development and distribution capabilities.
Q2 2022 | Q2 2023 | |||||
| (RMB in thousands) | ||||||
| Operating costs and expenses: | ||||||
| Hotel operating costs | (325,107 | ) | (509,513 | ) | ||
| Other operating costs | (41,682 | ) | (120,821 | ) | ||
| Selling and marketing expenses | (31,756 | ) | (94,400 | ) | ||
| General and administrative expenses | (41,859 | ) | (73,450 | ) | ||
| Technology and development expenses | (15,962 | ) | (17,831 | ) | ||
| Total operating costs and expenses | (456,366 | ) | (816,015 | ) | ||
Operating costs and expenses for the second quarter of 2023 were RMB816 million (US$113 million). Excluding the impact from share-based compensation expenses of RMB10 million, operating costs and expenses for the second quarter of 2023 increased by 76.6% to RMB806 million, compared with RMB456 million for the same period of 2022.
- Hotel operating costs for the second quarter of 2023 increased by 56.7% to RMB510 million (US$70 million) from RMB325 million for the same period of 2022. This increase was mainly due to the increase in variable costs, such as supply chain costs, associated with the continued growth of our hotel business. Hotel operating costs accounted for 60.2% of manachised and leased hotels’ revenues for the second quarter of 2023, compared with 74.2% for the same period of 2022. The decrease was attributable to the increase in hotel revenues driven by the ongoing expansion of our hotel network and the growth of RevPAR.
- Other operating costs primarily consist of costs for our scenario-based retail business and other businesses. Other operating costs for the second quarter of 2023 increased by 189.9% to RMB121 million (US$17 million) from RMB42 million for the same period of 2022, primarily driven by increased costs alongside the rapid growth of our scenario-based retail business. Other operating costs accounted for 49.0% of retail revenues and others for the second quarter of 2023, compared with 54.4% for the same period of 2022. The decrease was attributable to the improving profitability of our retail business.
- Selling and marketing expenses for the second quarter of 2023 increased by 197.3% to RMB94 million (US$13 million) from RMB32 million for the same period of 2022. This increase was mainly due to our increased investment in branding enhancement and the rapid growth of our scenario-based retail business through online channels. Selling and marketing expenses accounted for 8.6% of net revenues for the second quarter of 2023, compared with 6.2% for the same period of 2022.
- General and administrative expenses for the second quarter of 2023 were RMB73 million (US$10 million). Excluding the impact from share-based compensation expenses of RMB9 million, general and administrative expenses for the second quarter of 2023 increased by 54.0% to RMB64 million, compared with RMB42 million for the same period of 2022. General and administrative expenses, excluding the impact from share-based compensation expenses, accounted for 5.9% of net revenues for the second quarter of 2023, compared with 8.1% for the same period of 2022.
- Technology and development expenses for the second quarter of 2023 were RMB18 million (US$2.5 million), compared with RMB16 million for the same period of 2022.
Other operating income primarily consists of income from government subsidies and value-added tax related benefits. Other operating income for the second quarter of 2023 increased by 26.5% to RMB30 million (US$4 million) from RMB24 million for the same period of 2022.
Income from operations for the second quarter of 2023 was RMB307 million (US$42 million), compared with RMB82 million for the same period of 2022.
Other expenses, net for the second quarter of 2023 was RMB4 million (US$0.5 million), compared with RMB2 million for the same period of 2022.
Income tax expense for the second quarter of 2023 was RMB79 million (US$11 million), compared with RMB24 million for the same period of 2022.
Net income for the second quarter of 2023 was RMB239 million (US$33 million), compared with RMB60 million for the same period of 2022.
Adjusted net income (non-GAAP), which excluded share-based compensation expenses, for the second quarter of 2023 was RMB249 million (US$34 million), representing an increase of 312.9% compared with RMB60 million for the same period of 2022.
Basic and diluted income per share/American depositary share (ADS). For the second quarter of 2023, basic income per share was RMB0.59 (US$0.08), and diluted income per share was RMB0.57 (US$0.08). Basic income per ADS for the second quarter of 2023 was RMB1.77 (US$0.24), and diluted income per ADS was RMB1.71 (US$0.24).
EBITDA (non-GAAP) for the second quarter of 2023 was RMB334 million (US$46 million), compared with RMB104 million for the same period of 2022.
Adjusted EBITDA (non-GAAP), which excluded share-based compensation expenses from EBITDA, for the second quarter of 2023 was RMB344 million (US$47 million), representing an increase of 232.4% compared with RMB104 million for the same period of 2022.
Cash flows. Operating cash inflow for the second quarter of 2023 was RMB520 million (US$72 million). Investing cash inflow and financing cash outflow for the second quarter of 2023 were RMB149 million (US$20 million) and RMB140 million (US$19 million), respectively.
Cash and cash equivalents and restricted cash. As of June 30, 2023, the Company had a total balance of cash and cash equivalents and restricted cash of RMB2.5 billion (US$349 million).
Debt financing. As of June 30, 2023, the Company had total outstanding borrowings of RMB73 million (US$10 million) and the unutilized credit facility available to the Company was RMB260 million.
_________________
1 Adjusted net income (non-GAAP) is defined as net income excluding share-based compensation expenses.
2 EBITDA (non-GAAP) is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization.
3 Adjusted EBITDA (non-GAAP) is defined as EBITDA excluding share-based compensation expenses.
4 The ADR and RevPAR are calculated based on the tax inclusive room rates.
“ADR” (exclusive of requisitioned or temporarily closed hotels) refers to the average daily room rate, which means room revenue divided by the number of rooms in use;
“Occupancy rate” (exclusive of requisitioned or temporarily closed hotels) refers to the number of rooms in use divided by the number of available rooms for a given period;
“RevPAR” (exclusive of requisitioned or temporarily closed hotels) refers to revenue per available room, which is calculated by total revenues during a period divided by the number of available rooms of our hotels during the same period.
5 “GMV” refers to gross merchandise value, which is the total value of confirmed orders placed by our end customers with us or our franchisees, as the case may be, and sold as part of our retail business, regardless of whether the products are delivered or returned, calculated based on the prices of the ordered products net of any discounts offered to our end customer.
Conference Call
The Company will host a conference call at 8:00 AM U.S. Eastern time on Thursday, August 17, 2023 (or 8:00 PM Beijing/Hong Kong time on the same day). Details for the conference call are as follows:
Event Title: Atour Second Quarter 2023 Earnings Conference Call
Pre-registration Link: https://register.vevent.com/register/BIc21f7a19965e47678308aa5bed210058
All participants must pre-register for this conference call using the link provided above. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN, which will be used to join the conference call.
Additionally, a live webcast of the conference call will be available on the Company’s investor relations website at https://ir.yaduo.com, and a replay of the webcast will be available following the session.
Use of Non-GAAP Financial Measures
To supplement the Company’s unaudited consolidated financial results presented in accordance with U.S. Generally-Accepted Accounting Principles (“GAAP”), the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission: adjusted net income (loss), which is defined as net income (loss) excluding share-based compensation expenses; EBITDA, which is defined as earnings before interest expense, interest income, income tax expense and depreciation and amortization; adjusted EBITDA, which is defined as EBITDA excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this release.
The Company believes that EBITDA is widely used by other companies in the hospitality industry and may be used by investors as a measure of the financial performance. Given the significant investments that the Company has made in leasehold improvements and other fixed assets of leased hotels, depreciation and amortization expense comprises a significant portion of the Company’s cost structure. The Company believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization expense attributable to capital expenditures. Adjusted net income and adjusted EBITDA provide meaningful supplemental information regarding the Company’s performance by excluding share-based compensation expenses, as the investors can better understand the Company’s performance and compare business trends among different reporting periods on a consistent basis excluding share-based compensation expenses which are not expected to result in cash payment. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. The accompanying tables provide more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
The use of these non-GAAP measures has certain limitations as the excluded items have been and will be incurred and are not reflected in the presentation of these non-GAAP measures. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of the relevant items both in its reconciliations to the U.S. GAAP financial measures and in its consolidated financial statements, all of which should be considered when evaluating the performance of the Company.
In addition, these measures may not be comparable to similarly titled measures utilized by other companies since such other companies may not calculate these measures in the same manner as the Company does.
About Atour Lifestyle Holdings Limited
Atour Lifestyle Holdings Limited (NASDAQ: ATAT) is a leading hospitality and lifestyle company in China, with a distinct portfolio of lifestyle hotel brands. Atour is the leading upper midscale hotel chain in China and is the first Chinese hotel chain to develop a scenario-based retail business. Atour is committed to bringing innovations to China’s hospitality industry and building new lifestyle brands around hotel offerings.
For more information, please visit https://ir.yaduo.com.
Investor Relations Contact
Atour Lifestyle Holdings Limited
Email: ir@yaduo.com
Piacente Financial Communications
Email: Atour@tpg-ir.com
Tel: +86-10-6508-0677
| —Financial Tables and Operational Data Follow— | ||||||
| ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (All amounts in thousands, except share data and per share data, or otherwise noted) | ||||||
| As of | As of | |||||
| December 31, | June 30, | |||||
| 2022 | 2023 | |||||
| RMB | RMB | USD1 | ||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 1,589,161 | 2,528,662 | 348,718 | |||
| Short-term investments | 157,808 | - | - | |||
| Accounts receivable | 132,699 | 124,641 | 17,189 | |||
| Prepayments and other current assets | 133,901 | 214,451 | 29,574 | |||
| Amounts due from related parties | 53,630 | 96,141 | 13,258 | |||
| Inventories | 57,460 | 85,141 | 11,741 | |||
| Total current assets | 2,124,659 | 3,049,036 | 420,480 | |||
| Non-current assets | ||||||
| Restricted cash | 946 | 644 | 89 | |||
| Contract costs | 67,270 | 77,781 | 10,726 | |||
| Property and equipment, net | 360,300 | 330,994 | 45,646 | |||
| Operating lease right-of-use assets | 1,932,000 | 1,809,451 | 249,535 | |||
| Intangible assets, net | 5,537 | 4,942 | 682 | |||
| Goodwill | 17,446 | 17,446 | 2,406 | |||
| Other assets | 141,335 | 129,078 | 17,801 | |||
| Deferred tax assets | 112,533 | 97,447 | 13,439 | |||
| Total non-current assets | 2,637,367 | 2,467,783 | 340,324 | |||
| Total assets | 4,762,026 | 5,516,819 | 760,804 | |||
| Liabilities and shareholders’ equity | ||||||
| Current liabilities | ||||||
| Operating lease liabilities, current | 319,598 | 301,353 | 41,558 | |||
| Accounts payable | 184,901 | 339,768 | 46,858 | |||
| Deferred revenue, current | 202,996 | 267,169 | 36,844 | |||
| Salary and welfare payable | 103,539 | 118,103 | 16,287 | |||
| Accrued expenses and other payables | 330,282 | 545,805 | 75,270 | |||
| Income taxes payable | 31,336 | 88,475 | 12,201 | |||
| Short-term borrowings | 142,828 | 70,848 | 9,770 | |||
| Current portion of long-term borrowings | 29,130 | - | - | |||
| Amounts due to related parties | 3,004 | 727 | 100 | |||
| Total current liabilities | 1,347,614 | 1,732,248 | 238,888 | |||
| Non-current liabilities | ||||||
| Operating lease liabilities, non-current | 1,805,402 | 1,673,638 | 230,805 | |||
| Deferred revenue, non-current | 277,841 | 323,437 | 44,604 | |||
| Long-term borrowings, non-current portion | 2,000 | 2,000 | 276 | |||
| Other non-current liabilities | 141,763 | 167,321 | 23,075 | |||
| Total non-current liabilities | 2,227,006 | 2,166,396 | 298,760 | |||
| Total liabilities | 3,574,620 | 3,898,644 | 537,648 | |||
_________________
1 Translations of balances in the consolidated financial statements from RMB into US$ for the second quarter of 2023 and as of June 30, 2023 are solely for readers’ convenience and were calculated at the rate of US$1.00=RMB7.2513 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2023.
ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (All amounts in thousands, except share data and per share data, or otherwise noted) | |||||||||
| As of | As of | ||||||||
| December 31, | June 30, | ||||||||
| 2022 | 2023 | ||||||||
| RMB | RMB | USD1 | |||||||
| Shareholders’ equity | |||||||||
| Class A ordinary shares | 229 | 243 | 34 | ||||||
| Class B ordinary shares | 56 | 56 | 8 | ||||||
| Additional paid in capital | 1,286,189 | 1,437,753 | 198,275 | ||||||
| Retained earnings (accumulated deficit) | (78,304 | ) | 176,733 | 24,373 | |||||
| Accumulated other comprehensive income (loss) | (10,865 | ) | 12,127 | 1,671 | |||||
| Total shareholders’ equity attributable to shareholders of the Company | 1,197,305 | 1,626,912 | 224,361 | ||||||
| Non-controlling interests | (9,899 | ) | (8,737 | ) | (1,205 | ) | |||
| Total shareholders’ equity | 1,187,406 | 1,618,175 | 223,156 | ||||||
| Commitments and contingencies | - | - | - | ||||||
| Total liabilities and shareholders’ equity | 4,762,026 | 5,516,819 | 760,804 | ||||||
ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||
| (All amounts in thousands, except share data and per share data, or otherwise noted) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||||||||
| RMB | RMB | USD1 | RMB | RMB | USD1 | |||||||||||||
| Revenues: | ||||||||||||||||||
| Manachised hotels | 295,134 | 626,483 | 86,396 | 568,939 | 1,073,281 | 148,012 | ||||||||||||
| Leased hotels | 142,874 | 219,524 | 30,274 | 254,455 | 406,834 | 56,105 | ||||||||||||
| Retail revenues and others | 76,575 | 246,702 | 34,022 | 143,303 | 386,530 | 53,305 | ||||||||||||
| Net revenues | 514,583 | 1,092,709 | 150,692 | 966,697 | 1,866,645 | 257,422 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||||
| Hotel operating costs | (325,107 | ) | (509,513 | ) | (70,265 | ) | (648,275 | ) | (891,145 | ) | (122,895 | ) | ||||||
| Other operating costs | (41,682 | ) | (120,821 | ) | (16,662 | ) | (73,605 | ) | (192,475 | ) | (26,544 | ) | ||||||
| Selling and marketing expenses | (31,756 | ) | (94,400 | ) | (13,018 | ) | (55,532 | ) | (150,409 | ) | (20,742 | ) | ||||||
| General and administrative expenses | (41,859 | ) | (73,450 | ) | (10,129 | ) | (87,377 | ) | (266,654 | ) | (36,773 | ) | ||||||
| Technology and development expenses | (15,962 | ) | (17,831 | ) | (2,459 | ) | (33,770 | ) | (34,621 | ) | (4,774 | ) | ||||||
| Total operating costs and expenses | (456,366 | ) | (816,015 | ) | (112,533 | ) | (898,559 | ) | (1,535,304 | ) | (211,728 | ) | ||||||
| Other operating income | 23,668 | 29,948 | 4,130 | 26,767 | 37,178 | 5,127 | ||||||||||||
| Income from operations | 81,885 | 306,642 | 42,289 | 94,905 | 368,519 | 50,821 | ||||||||||||
| Interest income | 3,681 | 7,513 | 1,036 | 5,598 | 12,356 | 1,704 | ||||||||||||
| Gain from short-term investments | 2,004 | 8,968 | 1,237 | 3,764 | 14,322 | 1,975 | ||||||||||||
| Interest expense | (1,831 | ) | (1,676 | ) | (231 | ) | (3,321 | ) | (3,603 | ) | (497 | ) | ||||||
| Other expenses, net | (1,825 | ) | (3,522 | ) | (486 | ) | (1,878 | ) | (2,971 | ) | (410 | ) | ||||||
| Income before income tax | 83,914 | 317,925 | 43,845 | 99,068 | 388,623 | 53,593 | ||||||||||||
| Income tax expense | (23,579 | ) | (78,770 | ) | (10,863 | ) | (31,523 | ) | (131,396 | ) | (18,120 | ) | ||||||
| Net income | 60,335 | 239,155 | 32,982 | 67,545 | 257,227 | 35,473 | ||||||||||||
| Less: net income (loss) attributable to non-controlling interests | (888 | ) | 965 | 133 | (1,502 | ) | 1,162 | 160 | ||||||||||
| Net income attributable to the Company | 61,223 | 238,190 | 32,849 | 69,047 | 256,065 | 35,313 | ||||||||||||
| Net income | 60,335 | 239,155 | 32,982 | 67,545 | 257,227 | 35,473 | ||||||||||||
| Other comprehensive income | ||||||||||||||||||
| Foreign currency translation adjustments, net of nil income taxes | 4,895 | 25,072 | 3,458 | 4,676 | 22,992 | 3,171 | ||||||||||||
| Other comprehensive income, net of income taxes | 4,895 | 25,072 | 3,458 | 4,676 | 22,992 | 3,171 | ||||||||||||
| Total comprehensive income | 65,230 | 264,227 | 36,440 | 72,221 | 280,219 | 38,644 | ||||||||||||
| Comprehensive income (loss) attributable to non-controlling interests | (888 | ) | 965 | 133 | (1,502 | ) | 1,162 | 160 | ||||||||||
| Comprehensive income attributable to the Company | 66,118 | 263,262 | 36,307 | 73,723 | 279,057 | 38,484 | ||||||||||||
| Net income per ordinary share | ||||||||||||||||||
| —Basic | 0.16 | 0.59 | 0.08 | 0.18 | 0.64 | 0.09 | ||||||||||||
| —Diluted | 0.16 | 0.57 | 0.08 | 0.18 | 0.62 | 0.09 | ||||||||||||
| Weighted average ordinary shares used in calculating net income per ordinary share | ||||||||||||||||||
| —Basic | 376,970,454 | 402,763,517 | 402,763,517 | 376,970,454 | 398,389,853 | 398,389,853 | ||||||||||||
| —Diluted | 376,970,454 | 414,773,664 | 414,773,664 | 376,970,454 | 413,553,602 | 413,553,602 | ||||||||||||
ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
| (In thousands of RMB, except share data and per share data, or otherwise noted) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||||||||
| RMB | RMB | USD1 | RMB | RMB | USD1 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||
| Net cash generated from operating activities | 214,184 | 519,908 | 71,699 | 138,982 | 881,565 | 121,573 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Payment for purchases of property and equipment | (8,189 | ) | (9,791 | ) | (1,350 | ) | (17,096 | ) | (27,410 | ) | (3,780 | ) | ||||||
| Payment for purchases of intangible assets | (222 | ) | - | - | (600 | ) | - | - | ||||||||||
| Payment for purchases of short-term investments | (413,350 | ) | (2,003,860 | ) | (276,345 | ) | (1,086,200 | ) | (3,332,210 | ) | (459,533 | ) | ||||||
| Proceeds from maturities of short-term investments | 415,354 | 2,162,234 | 298,186 | 1,089,964 | 3,494,694 | 481,940 | ||||||||||||
| Net cash generated from (used in) investing activities | (6,407 | ) | 148,583 | 20,491 | (13,932 | ) | 135,074 | 18,627 | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||
| Proceeds from borrowings | 111,000 | 169,000 | 40,000 | 5,516 | ||||||||||||||
| Repayment of borrowings | (72,250 | ) | (140,130 | ) | (19,325 | ) | (73,480 | ) | (141,110 | ) | (19,460 | ) | ||||||
| Payment for initial public offering costs | (403 | ) | (721 | ) | - | - | ||||||||||||
| Net cash (used in) generated from financing activities | 38,347 | (140,130 | ) | (19,325 | ) | 94,799 | (101,110 | ) | (13,944 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | 4,512 | 25,072 | 3,457 | 3,795 | 23,670 | 3,265 | ||||||||||||
| Net increase in cash, cash equivalents and restricted cash | 250,636 | 553,433 | 76,322 | 223,644 | 939,199 | 129,521 | ||||||||||||
| Cash and cash equivalents and restricted cash at the beginning of the period | 1,012,537 | 1,975,873 | 272,485 | 1,039,529 | 1,590,107 | 219,286 | ||||||||||||
| Cash and cash equivalents and restricted cash at the end of the period | 1,263,173 | 2,529,306 | 348,807 | 1,263,173 | 2,529,306 | 348,807 | ||||||||||||
ATOUR LIFESTYLE HOLDINGS LIMITED UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS | |||||||||||||||||||
| (In thousands of RMB, except share data and per share data, or otherwise noted) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2022 | 2023 | 2022 | 2023 | ||||||||||||||||
| RMB | RMB | USD1 | RMB | RMB | USD1 | ||||||||||||||
| Net income (GAAP) | 60,335 | 239,155 | 32,982 | 67,545 | 257,227 | 35,473 | |||||||||||||
| Share-based compensation expenses, net of tax effect of nil2 | - | 9,998 | 1,379 | - | 151,578 | 20,904 | |||||||||||||
| Adjusted net income (non-GAAP) | 60,335 | 249,153 | 34,361 | 67,545 | 408,805 | 56,377 | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2022 | 2023 | 2022 | 2023 | ||||||||||||||||
| RMB | RMB | USD1 | RMB | RMB | USD1 | ||||||||||||||
| Net income (GAAP) | 60,335 | 239,155 | 32,982 | 67,545 | 257,227 | 35,473 | |||||||||||||
| Interest income | (3,681) | (7,513) | (1,036) | (5,598) | (12,356) | (1,704) | |||||||||||||
| Interest expense | 1,831 | 1,676 | 231 | 3,321 | 3,603 | 497 | |||||||||||||
| Income tax expense | 23,579 | 78,770 | 10,863 | 31,523 | 131,396 | 18,120 | |||||||||||||
| Depreciation and amortization | 21,553 | 22,289 | 3,074 | 40,595 | 44,186 | 6,094 | |||||||||||||
| EBITDA (non-GAAP) | 103,617 | 334,377 | 46,114 | 137,386 | 424,056 | 58,480 | |||||||||||||
| Share-based compensation expenses, net of tax effect of nil2 | - | 9,998 | 1,379 | - | 151,578 | 20,904 | |||||||||||||
| Adjusted EBITDA (non-GAAP) | 103,617 | 344,375 | 47,493 | 137,386 | 575,634 | 79,384 | |||||||||||||
_________________
2 The share-based compensation expenses were recorded at entities in PRC. Share-based compensation expenses were non-deductible expenses in PRC. Therefore, there is no tax impact for share-based compensation expenses adjustment for non-GAAP financial measures.
Key Operating Data
| Number of Hotels | Number of Rooms | ||||
| Opened in Q2 2023 | Closed in Q2 2023 | As of June 30, 2023 | As of June 30, 2023 | ||
| Manachised hotels | 70 | 4 | 1,001 | 115,427 | |
| Leased hotels | - | - | 33 | 4,977 | |
| Total | 70 | 4 | 1,034 | 120,404 | |
| Brand | Positioning | As of June 30, 2023 | ||||
| Properties | Rooms | |||||
| Manachised | Leased | |||||
| A.T. House | Luxury | - | 1 | 214 | ||
| Atour S | Upscale | 49 | 9 | 8,973 | ||
| ZHOTEL | Upscale | 1 | - | 52 | ||
| Atour | Upper midscale | 794 | 22 | 95,276 | ||
| Atour X | Upper midscale | 78 | - | 8,473 | ||
| Atour Light | Midscale | 79 | 1 | 7,416 | ||
| Total | 1,001 | 33 | 120,404 | |||
| Three Months Ended June 30, 2019 | Three Months Ended June 30, 2022 | Three Months Ended March 31, 2023 | Three Months Ended June 30, 2023 | |||||
| Occupancy rate3 (in percentage) | ||||||||
| Manachised hotels | 73.2% | 65.0% | 72.1% | 76.8% | ||||
| Leased hotels | 84.0% | 72.4% | 80.4% | 83.0% | ||||
| All hotels | 74.4% | 65.5% | 72.5% | 77.1% | ||||
| ADR3 (in RMB) | ||||||||
| Manachised hotels | 417.6 | 357.4 | 437.2 | 468.1 | ||||
| Leased hotels | 534.0 | 420.1 | 544.8 | 611.5 | ||||
| All hotels | 432.6 | 361.8 | 442.9 | 474.8 | ||||
| RevPAR3 (in RMB) | ||||||||
| Manachised hotels | 316.5 | 245.7 | 330.5 | 376.6 | ||||
| Leased hotels | 471.0 | 332.8 | 463.7 | 536.8 | ||||
| All hotels | 334.2 | 251.3 | 336.8 | 383.6 | ||||
_________________
3 Excludes, for purposes of calculating these key operating metrics, approximately 1,813 thousand, 189 thousand, and 46 thousand room-nights related to hotel rooms that were previously requisitioned by the government for quarantine needs in response to the COVID-19 outbreak or otherwise became unavailable due to temporary hotel closures in the three months ended June 30, 2022, March 31, 2023 and June 30, 2023, respectively. The ADR and RevPAR are calculated based on tax inclusive room rates.
