Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40540 |
Entity Registrant Name | Atour Lifestyle Holdings Limited |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 1st Floor, Wuzhong Building, |
Entity Address, Adress Line Two | 618 Wuzhong Road, |
Entity Address, Address Line Three | Minhang District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201103 |
Entity Address, Country | CN |
Entity Common Stock, Shares Outstanding | 412,785,709 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Firm ID | 1186 |
Auditor Name | KPMG Huazhen LLP |
Auditor Location | Shanghai, China |
Entity Central Index Key | 0001853717 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
ADS | |
Document and Entity Information | |
Title of 12(b) Security | American depositary shares, each ADS represents three Class A ordinary shares, par value US$0.0001 per share |
Trading Symbol | ATAT |
Security Exchange Name | NASDAQ |
Class A ordinary shares | |
Document and Entity Information | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share* |
No Trading Symbol Flag | true |
Security Exchange Name | NASDAQ |
Business Contact | |
Document and Entity Information | |
Entity Address, Address Line One | 20th Floor, Wuzhong Building, |
Entity Address, Adress Line Two | 618 Wuzhong Road |
Entity Address, Address Line Three | Minhang District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201103 |
Entity Address, Country | CN |
Contact Personnel Name | Haijun Wang |
Country Region | 86 |
City Area Code | 021 |
Local Phone Number | 64059928 |
Contact Personnel Email Address | IR@yaduo.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 2,840,807 | $ 400,119 | ¥ 1,589,161 |
Short-term investments | 751,794 | 105,888 | 157,808 |
Accounts receivable, net of allowance of RMB19,468 and RMB32,298 as of December 31, 2022 and 2023, respectively | 162,101 | 22,831 | 132,699 |
Prepayments and other current assets | 251,900 | 35,480 | 133,901 |
Amounts due from related parties | ¥ 115,900 | $ 16,324 | ¥ 53,630 |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember |
Inventories | ¥ 119,078 | $ 16,772 | ¥ 57,460 |
Total current assets | 4,241,580 | 597,414 | 2,124,659 |
Non-current assets | |||
Restricted cash | 946 | 133 | 946 |
Contract costs | 98,220 | 13,834 | 67,270 |
Property and equipment, net | 266,120 | 37,482 | 360,300 |
Operating lease right-of-use assets | 1,712,580 | 241,212 | 1,932,000 |
Intangible assets, net | 4,247 | 598 | 5,537 |
Goodwill | 17,446 | 2,457 | 17,446 |
Other assets | 100,939 | 14,218 | 141,335 |
Deferred tax assets | 144,947 | 20,415 | 112,533 |
Total non-current assets | 2,345,445 | 330,349 | 2,637,367 |
Total assets | 6,587,025 | 927,763 | 4,762,026 |
Current liabilities | |||
Operating lease liabilities, current | 295,721 | 41,651 | 319,598 |
Accounts payable | 594,545 | 83,741 | 184,901 |
Deferred revenue, current | 406,066 | 57,193 | 202,996 |
Salary and welfare payable | 189,823 | 26,736 | 103,539 |
Accrued expenses and other payables | 684,391 | 96,394 | 330,282 |
Income taxes payable | 136,201 | 19,184 | 31,336 |
Short-term borrowings | 70,000 | 9,859 | 142,828 |
Current portion of long-term borrowings | 29,130 | ||
Amounts due to related parties | ¥ 1,104 | $ 155 | ¥ 3,004 |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember |
Total current liabilities | ¥ 2,377,851 | $ 334,913 | ¥ 1,347,614 |
Non-current liabilities | |||
Operating lease liabilities, non-current | 1,583,178 | 222,986 | 1,805,402 |
Deferred revenue, non-current | 369,455 | 52,037 | 277,841 |
Long-term borrowings, non-current portion | 2,000 | 282 | 2,000 |
Other non-current liabilities | 194,452 | 27,388 | 141,763 |
Total non-current liabilities | 2,149,085 | 302,693 | 2,227,006 |
Total liabilities | 4,526,936 | 637,606 | 3,574,620 |
Shareholders' equity | |||
Additional paid in capital | 1,555,773 | 219,126 | 1,286,189 |
Retained earnings (accumulated deficit) | 507,226 | 71,441 | (78,304) |
Accumulated other comprehensive income (loss) | 4,769 | 672 | (10,865) |
Total equity attributable to shareholders of the Company | 2,068,068 | 291,281 | 1,197,305 |
Non-controlling interests | (7,979) | (1,124) | (9,899) |
Total shareholders' equity | 2,060,089 | 290,157 | 1,187,406 |
Commitments and contingencies | |||
Total liabilities and shareholders' equity | 6,587,025 | 927,763 | 4,762,026 |
Class A ordinary shares | |||
Shareholders' equity | |||
Ordinary shares | 244 | 34 | 229 |
Class B ordinary shares | |||
Shareholders' equity | |||
Ordinary shares | ¥ 56 | $ 8 | ¥ 56 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 $ / shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 CNY (¥) | Feb. 28, 2021 $ / shares shares | Jan. 31, 2021 shares |
Accounts receivable, allowance | ¥ | ¥ 32,298 | ¥ 19,468 | ¥ 14,731 | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||||
Ordinary shares, shares authorized (in shares) | 3,000,000,000 | 500,000,000 | |||||
Class A ordinary shares | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Ordinary shares, shares authorized (in shares) | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | ||||
Ordinary shares, shares issued (in shares) | 340,316,306 | 319,677,037 | |||||
Ordinary shares, shares outstanding (in shares) | 339,104,792 | 319,677,037 | |||||
Class B ordinary shares | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Ordinary shares, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Ordinary shares, shares issued (in shares) | 73,680,917 | 73,680,917 | |||||
Ordinary shares, shares outstanding (in shares) | 73,680,917 | 73,680,917 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | ||
Revenues: | |||||
Net revenues | ¥ 4,665,967 | $ 657,188 | ¥ 2,262,983 | ¥ 2,147,577 | |
Operating costs and expenses: | |||||
Selling and marketing expenses | (469,595) | (66,141) | (139,929) | (124,210) | |
General and administrative expenses | (451,470) | (63,588) | (350,009) | (197,064) | |
Technology and development expenses | (77,288) | (10,886) | (66,182) | (52,121) | |
Pre-opening expenses | ¥ | (17,595) | ||||
Total operating costs and expenses | (3,825,112) | (538,756) | (2,136,117) | (1,973,892) | |
Other operating income | 83,179 | 11,716 | 38,094 | 22,371 | |
Income from operations | 924,034 | 130,148 | 164,960 | 196,056 | |
Interest income | 29,569 | 4,165 | 14,456 | 6,722 | |
Gain from short-term investments | 34,519 | 4,862 | 8,455 | 8,745 | |
Interest expense | (5,005) | (705) | (6,501) | (7,937) | |
Other (expenses) income, net | (1,024) | (145) | (814) | 301 | |
Income before income tax | 982,093 | 138,325 | 180,556 | 203,887 | |
Income tax expense | (243,036) | (34,231) | (84,474) | (64,217) | |
Net income | 739,057 | 104,094 | 96,082 | 139,670 | |
Less: net income (loss) attributable to non-controlling interests | 1,920 | 270 | (2,017) | (5,384) | |
Net income attributable to the Company | 737,137 | 103,824 | 98,099 | 145,054 | |
Less: accretion of redeemable Class A ordinary shares | ¥ | [1] | (15,115) | |||
Net income available to shareholders of the Company | 737,137 | 103,824 | 98,099 | 129,939 | |
Net income | 739,057 | 104,094 | 96,082 | 139,670 | |
Other comprehensive income (loss) | |||||
Foreign currency translation adjustments, net of nil income taxes | 15,634 | 2,202 | (1,918) | (8,947) | |
Other comprehensive income (loss), net of income taxes | 15,634 | 2,202 | (1,918) | (8,947) | |
Total comprehensive income | 754,691 | 106,296 | 94,164 | 130,723 | |
Comprehensive income (loss) attributable to non-controlling interests | 1,920 | 270 | (2,017) | (5,384) | |
Comprehensive income attributable to the Company | ¥ 752,771 | $ 106,026 | ¥ 96,181 | ¥ 136,107 | |
Net income per ordinary share - Basic (in RMB or USD per share) | (per share) | ¥ 1.82 | $ 0.26 | ¥ 0.26 | ¥ 0.40 | |
Net income per ordinary share - Diluted (in RMB or USD per share) | (per share) | ¥ 1.78 | $ 0.25 | ¥ 0.26 | ¥ 0.40 | |
Weighted average ordinary shares used in calculating net income per ordinary share - Basic (in shares) | shares | 405,628,647 | 405,628,647 | 379,321,522 | 323,163,367 | |
Weighted average ordinary shares used in calculating net income per ordinary share - Diluted (in shares) | shares | 414,823,302 | 414,823,302 | 381,598,689 | 323,163,367 | |
Hotel | |||||
Operating costs and expenses: | |||||
Operating costs | ¥ (2,240,890) | $ (315,623) | ¥ (1,393,312) | ¥ (1,419,578) | |
Manachised hotels | |||||
Revenues: | |||||
Net revenues | 2,705,609 | 381,077 | 1,360,843 | 1,220,301 | |
Leased hotels | |||||
Revenues: | |||||
Net revenues | 840,044 | 118,318 | 552,929 | 630,238 | |
Retail | |||||
Revenues: | |||||
Net revenues | 971,931 | 136,894 | 253,607 | 191,596 | |
Operating costs and expenses: | |||||
Operating costs | (513,326) | (72,300) | (151,815) | (121,365) | |
Others | |||||
Revenues: | |||||
Net revenues | 148,383 | 20,899 | 95,604 | 105,442 | |
Operating costs and expenses: | |||||
Operating costs | ¥ (72,543) | $ (10,218) | ¥ (34,870) | ¥ (41,959) | |
[1]Represent Series C shares of Atour Shanghai prior to Restructuring (see Note 13) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Foreign currency translation adjustments, income taxes | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands | Total equity (deficit) attributable to shareholders of the Company Adjusted balance CNY (¥) | Total equity (deficit) attributable to shareholders of the Company CNY (¥) | Ordinary shares Class A Ordinary shares with liquidation preference CNY (¥) shares | Ordinary shares Class A ordinary shares Adjusted balance CNY (¥) shares | Ordinary shares Class A ordinary shares CNY (¥) shares | Ordinary shares Class B ordinary shares Adjusted balance CNY (¥) shares | Ordinary shares Class B ordinary shares CNY (¥) shares | Additional paid-in capital Adjusted balance CNY (¥) | Additional paid-in capital CNY (¥) | Retained earnings (Accumulated Deficit) Cumulative effect of the adoption of ASU 2016-13 CNY (¥) | Retained earnings (Accumulated Deficit) Adjusted balance CNY (¥) | Retained earnings (Accumulated Deficit) CNY (¥) | Accumulated other comprehensive income (loss) Adjusted balance CNY (¥) | Accumulated other comprehensive income (loss) CNY (¥) | Non-controlling interests Adjusted balance CNY (¥) | Non-controlling interests CNY (¥) | Class A ordinary shares shares | Class B ordinary shares shares | Adjusted balance CNY (¥) | CNY (¥) shares | USD ($) shares | ||
Balances at the beginning at Dec. 31, 2020 | ¥ (306,169) | ¥ 43 | ¥ 74 | ¥ 56 | ¥ (306,342) | ¥ (9,427) | ¥ (315,596) | ||||||||||||||||
Balances at the beginning (in shares) at Dec. 31, 2020 | shares | 60,912,400 | 97,909,001 | 73,680,917 | ||||||||||||||||||||
CHANGES IN (DEFICIT) EQUITY | |||||||||||||||||||||||
Profit (loss) for the year | 145,054 | 145,054 | (5,384) | 139,670 | |||||||||||||||||||
Other comprehensive income (loss) | (8,947) | ¥ (8,947) | (8,947) | ||||||||||||||||||||
Total comprehensive income (loss) | 136,107 | 145,054 | (8,947) | (5,384) | 130,723 | ||||||||||||||||||
Accretion to the redemption value of redeemable Class A ordinary shares | (15,115) | (15,115) | (15,115) | [1] | |||||||||||||||||||
Reclassification of Class A ordinary shares with liquidation preference upon termination of preference rights | [2] | ¥ (43) | ¥ 43 | ||||||||||||||||||||
Reclassification of Class A ordinary shares with liquidation preference upon termination of preference rights (in shares) | shares | [2] | (60,912,400) | 60,912,400 | ||||||||||||||||||||
Reclassification of redeemable Class A ordinary shares upon termination of preference rights | [3] | 896,508 | ¥ 107 | ¥ 896,401 | 896,508 | ||||||||||||||||||
Reclassification of redeemable Class A ordinary shares upon termination of preference rights (in shares) | shares | [3] | 153,290,800 | |||||||||||||||||||||
Shares repurchase | (111,260) | ¥ (6) | (111,254) | (111,260) | |||||||||||||||||||
Shares repurchase (in shares) | shares | (8,822,664) | ||||||||||||||||||||||
Distribution to shareholders | (20,645) | (20,645) | (20,645) | ||||||||||||||||||||
Balances at the end at Dec. 31, 2021 | 579,426 | ¥ 218 | ¥ 56 | 764,502 | (176,403) | (8,947) | (14,811) | 564,615 | |||||||||||||||
Balances at the end (in shares) at Dec. 31, 2021 | shares | 303,289,537 | 73,680,917 | |||||||||||||||||||||
CHANGES IN (DEFICIT) EQUITY | |||||||||||||||||||||||
Profit (loss) for the year | 98,099 | 98,099 | (2,017) | 96,082 | |||||||||||||||||||
Other comprehensive income (loss) | (1,918) | (1,918) | (1,918) | ||||||||||||||||||||
Total comprehensive income (loss) | 96,181 | 98,099 | (1,918) | (2,017) | 94,164 | ||||||||||||||||||
Acquisition of non-controlling interest | (7,279) | (7,279) | 6,929 | (350) | |||||||||||||||||||
Initial public offering ("IPO") proceeds net of listing expenses | 365,784 | ¥ 11 | 365,773 | 365,784 | |||||||||||||||||||
Initial public offering ("IPO") proceeds net of listing expenses (in shares) | shares | 16,387,500 | ||||||||||||||||||||||
Share-based compensation | 163,193 | 163,193 | 163,193 | ||||||||||||||||||||
Balances at the end at Dec. 31, 2022 | ¥ 1,196,277 | 1,197,305 | ¥ 229 | ¥ 229 | ¥ 56 | ¥ 56 | ¥ 1,286,189 | 1,286,189 | ¥ (1,028) | ¥ (79,332) | (78,304) | ¥ (10,865) | (10,865) | ¥ (9,899) | (9,899) | ¥ 1,186,378 | 1,187,406 | ||||||
Balances at the end (in shares) at Dec. 31, 2022 | shares | 319,677,037 | 319,677,037 | 73,680,917 | 73,680,917 | 319,677,037 | 73,680,917 | |||||||||||||||||
CHANGES IN (DEFICIT) EQUITY | |||||||||||||||||||||||
Profit (loss) for the year | 737,137 | 737,137 | 1,920 | 739,057 | $ 104,094 | ||||||||||||||||||
Other comprehensive income (loss) | 15,634 | 15,634 | 15,634 | 2,202 | |||||||||||||||||||
Total comprehensive income (loss) | 752,771 | 737,137 | 15,634 | 1,920 | 754,691 | $ 106,296 | |||||||||||||||||
Exercise of stock options | 105,621 | ¥ 15 | 105,606 | ¥ 105,621 | |||||||||||||||||||
Exercise of stock options (in shares) | shares | 19,427,760 | 19,427,760 | 19,427,760 | ||||||||||||||||||||
Retirement of shares (in shares) | shares | (5) | ||||||||||||||||||||||
Distribution to shareholders | (150,579) | (150,579) | ¥ (150,579) | ||||||||||||||||||||
Share-based compensation | 163,978 | 163,978 | 163,978 | ||||||||||||||||||||
Balances at the end at Dec. 31, 2023 | ¥ 2,068,068 | ¥ 244 | ¥ 56 | ¥ 1,555,773 | ¥ 507,226 | ¥ 4,769 | ¥ (7,979) | ¥ 2,060,089 | $ 290,157 | ||||||||||||||
Balances at the end (in shares) at Dec. 31, 2023 | shares | 339,104,792 | 73,680,917 | 340,316,306 | 73,680,917 | |||||||||||||||||||
[1]Represent Series C shares of Atour Shanghai prior to Restructuring (see Note 13)[2]Represent Series A shares of Atour Shanghai prior to Restructuring (see Note 13)[3]Represent Series B and C shares of Atour Shanghai prior to Restructuring (see Note 13) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | ¥ 739,057 | $ 104,094 | ¥ 96,082 | ¥ 139,670 |
Adjustments to reconcile net income to net cash generated from operating activities: | ||||
Depreciation and amortization | 85,021 | 11,975 | 88,561 | 93,911 |
Impairment loss of long-lived assets | 60,517 | 8,524 | 0 | 0 |
Impairment of inventory | 23,857 | 3,360 | 5,296 | 1,926 |
Reduction in the carrying amount of ROU assets | 214,306 | 30,184 | 268,280 | |
Gain from short-term investments | (34,519) | (4,862) | (8,455) | (8,745) |
Net loss on disposal of property and equipment | 578 | 81 | 2,022 | 2,015 |
Net loss on disposal of intangible asset | 199 | |||
Allowance for doubtful accounts | 40,754 | 5,740 | 4,737 | 2,889 |
Deferred income tax (benefit) expense | (32,071) | (4,517) | 10,174 | (9,396) |
Share-based compensation | 163,978 | 23,096 | 163,193 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (42,708) | (6,015) | (37,475) | 40,416 |
Prepayments and other current assets | (117,272) | (16,517) | 33,260 | (43,466) |
Amounts due from related parties | (62,270) | (8,771) | (1,693) | (18,345) |
Inventories | (85,475) | (12,039) | (4,181) | (30,158) |
Contract costs | (30,950) | (4,359) | (4,855) | (9,805) |
Other assets | 12,043 | 1,696 | 6,033 | (8,923) |
Accounts payable | 409,644 | 57,697 | 23,624 | 75,514 |
Salary and welfare payable | 86,284 | 12,153 | 8,301 | 9,624 |
Accrued expenses and other payables | 353,663 | 49,812 | (88,963) | 64,935 |
Income taxes payable | 104,865 | 14,770 | (14,840) | (15,333) |
Amounts due to related parties | (1,900) | (268) | 1,232 | (8,225) |
Deferred revenue | 294,684 | 41,505 | (20,807) | 85,779 |
Operating lease liabilities | (246,101) | (34,663) | (274,061) | |
Other non-current liabilities | 52,689 | 7,421 | 28,212 | 53,397 |
Net cash generated from operating activities | 1,988,674 | 280,097 | 283,677 | 417,879 |
Cash flows from investing activities: | ||||
Payment for purchases of property and equipment | (41,724) | (5,877) | (36,425) | (63,973) |
Proceeds from disposal of property and equipment | 670 | 94 | ||
Payment for purchases of intangible assets | (2,805) | (1,997) | ||
Payment for purchases of short-term investments | (9,427,210) | (1,327,795) | (2,931,000) | (4,303,920) |
Proceeds from maturities of short-term investments | 8,867,743 | 1,248,995 | 2,778,005 | 4,312,665 |
Repayment of loans from third parties | 15,000 | |||
Net cash used in investing activities | (600,521) | (84,583) | (192,225) | (42,225) |
Cash flows from financing activities: | ||||
Proceeds from borrowings | 40,000 | 5,634 | 199,000 | 218,434 |
Repayment of borrowings | (141,958) | (19,994) | (134,480) | (230,430) |
Repurchase of ordinary shares | (111,260) | |||
Proceeds from employee stock option exercises | 105,621 | 14,876 | ||
Payment for dividends | (150,579) | (21,209) | (20,645) | |
Acquisition of non-controlling interest | (350) | |||
Proceeds from initial public offering | 400,068 | |||
Payment for initial public offering costs | (7,928) | (17,179) | ||
Net cash (used in) generated from financing activities | (146,916) | (20,693) | 456,310 | (161,080) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 10,409 | 1,470 | 2,816 | (8,181) |
Net increase in cash and cash equivalents and restricted cash | 1,251,646 | 176,291 | 550,578 | 206,393 |
Cash and cash equivalents and restricted cash at the beginning of the year | 1,590,107 | 223,961 | 1,039,529 | 833,136 |
Cash and cash equivalents and restricted cash at the end of the year | 2,841,753 | 400,252 | 1,590,107 | 1,039,529 |
Supplemental disclosure of cash flow information: | ||||
Income tax paid | 170,242 | 23,978 | 82,784 | 88,946 |
Interest paid | 6,029 | 849 | 4,647 | 5,701 |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Payable for purchase of property and equipment | 16,079 | 2,265 | 12,617 | 38,357 |
Interest payable | 2,106 | $ 297 | 3,130 | 1,276 |
Payable for initial public offering costs | 9,177 | 6,181 | ||
Accretion to the redemption value of redeemable Series A shares | 15,115 | |||
Supplemental disclosure of cash and cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 2,840,807 | 1,589,161 | 1,038,583 | |
Restricted cash | 946 | 946 | 946 | |
Total cash and cash equivalents and restricted cash | ¥ 2,841,753 | ¥ 1,590,107 | ¥ 1,039,529 |
Description of the business and
Description of the business and organization | 12 Months Ended |
Dec. 31, 2023 | |
Description of the business and organization | |
Description of the business and organization | 1. Description of the business and organization (a) Description of the business Atour Lifestyle Holdings Limited (“Atour” or the “Company”), is a holding company incorporated in the Cayman Islands. The Company conducts its business through its subsidiaries (“together referred to as the “Group”). The principal business activities of the Group are to develop lifestyle brands around hotel offerings in the People’s Republic of China (the “PRC”). On November 11, 2022, the Company completed its IPO on NASDAQ in the United States under the stock code “ATAT”. Manachised hotels Manachised hotels refers to franchised-and-managed hotels. Typically, the Group enters into certain franchise and management arrangements with franchisees for which the Group is responsible for providing branding, appointing and training of the hotel managers, and various other management services. Under typical franchise and management agreements, the franchisees are required to pay upfront franchise fees and continuing franchise fees, the majority of which are determined based on a certain percentage of the revenues of the hotel. The franchisees are responsible for hotel construction, renovation and maintenance. The term of the franchise and management agreements are typically eight Leased hotels Leased hotels refer to the hotels that the Group operates and manages and where the properties are leased from third party lessors. The Group is responsible for hotel development and customization to conform to the Group’s standards, as well as for repairs and maintenance and operating costs and expenses of properties over the term of the lease. The Group is also responsible for all aspects of hotel operations and management, including hiring, training and supervising the hotel managers and employees required to operate our hotels and purchasing supplies. As of December 31, 2023, the principal subsidiaries of the Group are as follows: Date of Incorporation, Percentage of Merger or Place of Major Subsidiaries Ownership Acquisition Incorporation Operation Atour (Tianjin) Hotel Management Co., Ltd. 100% August 30, 2012 PRC Hotel management Shanghai Atour Business Management (Group) Co., Ltd. 100% February 17,2013 PRC Hotel management Xi’an Jiaduo Hotel Management Co., Ltd. 100% August 30, 2013 PRC Hotel management Gongyu (Shanghai) Culture Communication Co., Ltd. 100% December 02, 2014 PRC Retail management Shanghai Qingju Investment Management Co., Ltd. 100% July 15, 2015 PRC Investment management Fuzhou Hailian Atour Hotel Management Co., Ltd. 51% September 21, 2015 PRC Hotel management Chengdu Zhongchengyaduo Hotel Management Co., Ltd. 100% November 26, 2015 PRC Hotel management Shanghai Hongwang Financial Information Service Co., Ltd. 100% January 27, 2016 PRC Financial information service management Date of Incorporation, Percentage of Merger or Place of Major Subsidiaries Ownership Acquisition Incorporation Operation Shanghai Shankuai Information Technology Co., Ltd. 100% February 01,2016 PRC Retail management Hangzhou Anduo Hotel Management Co., Ltd. 100% April 20, 2017 PRC Hotel management Shanghai Leiduo Information Technology Co., Ltd. 100% March 21, 2017 PRC Retail management Yueduo (Shanghai) Apartment Management Service Co., Ltd. 80% March 23, 2017 PRC Property Management Shanghai Naiduo Hotel Management Co., Ltd. 100% July 25, 2017 PRC Hotel management Shanghai Zhouduo Hotel Management Co., Ltd. 100% August 04, 2017 PRC Hotel management Shanghai Chengduo Information Technology Co., Ltd. 100% November 15, 2017 PRC Software and Technology services Beijing Chengduo Data Technology Co., Ltd. 100% January 22, 2018 PRC Technology services Shanghai Xiangduo Enterprise Management Co., Ltd. 100% April 13, 2018 PRC Hotel management Shanghai Guiduo Hotel Management Co., Ltd. 100% May 08,2018 PRC Hotel management Atour (Shanghai) Travel Agency Co., Ltd. 100% July 05, 2018 PRC Travel agency operation Guangzhou Zhongduo Hotel Management Co., Ltd. 100% July 19, 2018 PRC Hotel management Shanghai Banduo Hotel Management Co., Ltd. 100% October 11, 2018 PRC Hotel management Beijing Yueduo Property Management Co., Ltd. 80% February 13, 2019 PRC Property Management Shanghai Xingduo Hotel Management Co., Ltd. 100% May 24, 2019 PRC Hotel management Shanghai Jiangduo Information Technology Co., Ltd. 100% March 07, 2019 PRC Retail management Shenzhen Jiaoduo Hotel Management Co., Ltd. 100% March 25, 2019 PRC Hotel management Shanghai Huiduo Hotel Management Co., Ltd. 90% July 15, 2019 PRC Hotel management Shanghai Mingduo Business Management Co., Ltd. 100% July 18, 2019 PRC Hotel management Shanghai Youduo Hotel Management Co., Ltd. 100% July 26, 2019 PRC Hotel management Shanghai Yinduo Culture Communication Co., Ltd. 100% August 27, 2020 PRC Retail management Atour Hotel (HK) Holdings, Ltd. 100% March 05, 2021 Hong Kong Investment holding Shanghai Rongduo Commercial Management Co., Ltd. 100% June 13, 2022 PRC Hotel management (b) Restructuring In connection with the initial public offering of the Company’s shares, the Group undertook certain corporate restructuring activities in 2021 (“Restructuring”) to establish an offshore structure to hold the entire equity interest in Shanghai Atour Business Management (Group) Co., Ltd. (“Atour Shanghai”). The Restructuring was approved by the shareholders and board of directors of Atour Shanghai in December 2020 and a reorganization framework agreement was entered into between Atour Shanghai and the shareholders of Atour Shanghai in February 2021. As part of the Restructuring, the Company established an intermediate holding company of the Group in Hong Kong, Atour Hong Kong, to hold the entire equity interests in Atour Shanghai. Pursuant to the Restructuring, the affiliates of the existing equity holders of Atour Shanghai would acquire the equity interests in the Company substantially in proportion to their respective effective equity interests in Atour Shanghai prior to the Restructuring. The Restructuring was fully completed in May 2021 upon the completion of issuance of the shares of the Company to the affiliates of the former equity holders of Atour Shanghai. The Restructuring did not change any rights or economic interests of the equity holders of Atour Shanghai, including the preference rights where applicable. Atour Lifestyle and Atour Hong Kong had no operations with only nominal amount of net assets prior to the consummation of the Restructuring. All of the Group’s business continues to be conducted through PRC subsidiaries after the Restructuring. The Restructuring was accounted for as a reverse recapitalization of Atour Shanghai rather than a business combination. Accordingly, the Company’s consolidated financial statements represent a continuation of the financial statements of Atour Shanghai, and the assets and liabilities were recorded at their historical carrying values upon completion of the Restructuring. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies | |
Significant accounting policies | 2. Significant accounting policies (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousands except share data and per share data, or otherwise noted. Certain comparative items in the consolidated financial statements have been reclassified to conform to the current year’s presentation. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. ASU 2016-13 was further amended in November 2019 by ASU 2019-10. The Group adopted the guidance on January 1, 2023, using the modified retrospective approach through a cumulative-effect adjustment to accumulated deficit as of the effective date to align the Group’s current processes for establishing an allowance for credit losses with the new guidance. Upon adoption, the Group recorded an adjustment of RMB1,028 (net of related impact on deferred taxes) to opening accumulated deficit related to the credit allowance for accounts receivable and prepayments and other current assets. The adoption of ASU 2016-13 did not have a material impact on the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08 Business Combinations (Topic 805) — Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). It requires issuers to apply ASC 606 Revenue from Contracts with Customers to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. The Group adopted the new standard on January 1, 2023, and the adoption did not have a material impact on the consolidated financial statements. (b) Principles of consolidation The Company’s consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. (c) Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Items subject to such estimates and assumptions include, but are not limited to, estimate of breakage, the fair value of share-based compensation awards, allowance for doubtful accounts, impairment of inventory and the impairment of long-lived assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (d) Convenience translation Translations of balances in the consolidated financial statements from RMB into United States dollars (“USD”) as of and for the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB7.0999 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2023, or at any other rate. The USD convenience translation is not required under U.S. GAAP and all USD convenience translation amounts in the accompanying consolidated financial statements are unaudited. (e) Functional currency and foreign currency translation The Group’s reporting currency is RMB. RMB is the currency of the primary economic environment in which the Group operates. The functional currency of the Company and Hong Kong subsidiary is the United States dollars (“USD”). The functional currency of the Company’s PRC subsidiaries is the RMB. The Group determined its functional currency to be RMB based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters. Transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are remeasured into the functional currency using the applicable exchange rate at the balance sheet date. The resulted exchange differences are recorded in the other (expenses) income, net in the consolidated statements of comprehensive income. The results of foreign operations are translated into RMB at the exchange rates as of the balance sheet date for assets and liabilities, the average daily exchange rate for each month for income and expense items and the historical exchange rates for equity accounts. Translation gains and losses are recorded in other comprehensive income (loss) and accumulated in the translation adjustment component of equity until the sale or liquidation of the foreign entity. (f) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand, and highly liquid investments. The Group considers highly liquid investments that are readily convertible into known amounts of cash and with a maturity of three months or less when purchased to be cash equivalents. The Group’s cash and cash equivalents are deposited in financial institutions at the following locations: As of December 31, 2022 2023 RMB RMB Financial institutions in the mainland PRC —Denominated in Chinese Renminbi (“RMB”) 1,290,408 2,414,169 —Denominated in USD 3,541 3,614 Total cash balances held at mainland PRC financial institutions 1,293,949 2,417,783 Hong Kong —Denominated in RMB 9,884 9,904 —Denominated in USD 5,990 194,145 Total cash balances held at the Hong Kong financial institutions 15,874 204,049 Cayman Islands —Denominated in RMB 273 272 —Denominated in USD 279,065 218,703 Total cash balances held at the Cayman Islands financial institutions 279,338 218,975 Total cash and cash equivalents balances held at financial institutions 1,589,161 2,840,807 (g) Restricted cash Restricted cash mainly consists of security deposits as requested by local government agencies and landlords. Restricted cash is classified as either current or non-current based on when the funds will be released in accordance with the terms of the respective agreement for the establishment. (h) Short-term investments Short-term investments include wealth management products with original maturities less than one year when purchased, which are with variable return and principal amounts are not guaranteed. These investments are placed with financial institutions and measured at fair value. The fair value change of the short-term investments was recorded in gain from short-term investments in the consolidated statements of comprehensive income. (i) Accounts receivable, net Accounts receivable primarily consists of receivables from franchisees, corporate customers, travel agencies and hotel guests, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts based upon the current expected credit losses (“CECL”) model. The CECL model requires an estimate of the credit losses expected over the life of accounts receivable since initial recognition, and accounts receivable with similar risk characteristics are grouped together when estimating CECL. In assessing the CECL, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical credit loss experience, adjusted for relevant factors impacting collectability and forward-looking information indicative of external market conditions. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted. As of December 31, 2022 and 2023, the Group does not have any off-balance-sheet credit exposure relate to its franchisees and other customers. (j) Contract costs Contract costs are the incremental costs of obtaining a contract with a customer. Incremental costs of obtaining a contract are those costs that the Group incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (e.g. an incremental sales commission). Incremental costs of obtaining a contract are capitalized when incurred if the costs relate to revenue which will be recognized in a future reporting period and the costs are expected to be recovered. Other costs of obtaining a contract are expensed when incurred. Capitalized contract costs are amortized on straight-line basis over the fixed franchise and management agreement term considering the expected beneficial period from the contract cost asset is the fixed contract term. Capitalized contract costs are stated at cost less accumulated amortization and impairment losses. Contract costs capitalized as of December 31, 2022 and 2023 relate to the incremental sales commissions paid to the Group’s sales personnel whose selling activities resulted in customers entering into franchise and management agreements with the Group. Contract costs are recognized as part of selling and marketing expenses in the consolidated statements of comprehensive income in the period in which revenue from the franchise fees is recognized. The amount of capitalized costs recognized in the consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 were RMB7,870, RMB9,832 and RMB12,318, respectively. (k) Inventories Inventories mainly consists of lifestyle products, small appliances and daily consumables, which are stated at the lower of cost and net realizable value. Cost of inventories is determined using the weighted average cost method. Valuation of inventories is based on currently available information about net realizable value. The estimate is dependent upon factors such as historical trends of similar merchandise, inventory aging, historical and forecasted consumer demand and promotional environment. When evidence exists that the net realizable value of inventory is lower than its cost, a write-down is recognized in operating costs in the consolidated statements of comprehensive income in the period when it occurs. (l) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and any impairment. The estimated useful lives are presented below. Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets Equipment, fixtures and furniture, and other fixed assets 5 - 10 years Depreciation commences when the asset is ready for its intended use. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance are expensed as incurred. Gains or losses arising from the disposal of an item of property and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of disposal. (m) Capitalized interest Interest costs that are directly attributable to the construction of an asset which necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of that asset. The capitalization of interest costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, interest costs are being incurred and activities that are necessary to prepare the asset for its intended use are in progress. Capitalization of interest costs is ceased when the asset is substantially complete and ready for its intended use. A reconciliation of total interest costs to interest expense as reported in the consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 is as follows: Years ended December 31, 2021 2022 2023 RMB RMB RMB Total interest expense 9,469 6,501 5,005 Less: interest expense capitalized (1,532) — — Interest expense 7,937 6,501 5,005 (n) Intangible assets, net Intangible assets consist primarily of software. Amortization of finite-lived intangible assets is computed using the straight-line method over the estimated useful lives. The amortization period is as follows: Purchased software 3 - 10 years (o) Leases The Group adopted ASC 842 on January 1, 2022, using a modified retrospective method for leases that exist at, or are entered into after, January 1, 2022, and has not recast the comparative periods presented in the consolidated financial statements. Prior to the adoption of ASC 842, operating leases were not recognized on the balance sheet, but rent expenses with fixed escalating payments and/or rent holidays were recognized on a straight-line basis over the lease term. Upon the adoption of ASC 842, right-of-use assets and lease liabilities are recognized upon lease commencement for operating leases. For operating leases, the lease liability is initially measured at the present value of the unpaid lease payments at the lease commencement date. The lease liability is subsequently measured at amortized cost using the effective-interest method. As the rate implicit in the lease cannot be readily determined, the Group uses the incremental borrowing rate at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Group would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The lease term for all of the Group’s leases includes the noncancellable period of the lease plus any additional periods covered by either an option to extend (or not to terminate) the lease that the Group is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. For operating leases, the right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. The right-of-use asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on a rate or index are expensed as incurred. Right-of-use assets for operating leases are occasionally reduced by impairment losses. See Note 2(p). The Group monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding right-of-use asset unless doing so would reduce the carrying amount of the right-of-use asset to an amount less than zero. In that case, the right-of-use asset is reduced to zero and the remainder of the adjustment is recorded in profit or loss. The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less. The Group recognizes the lease payments associated with its short-term leases as an expense on a straight-line basis over the lease term. The Group’s leases generally include non-lease maintenance services (i.e. common area maintenance). The Group has elected the practical expedient to account for the lease and non-lease maintenance components as a single lease component. Therefore, the lease payments used to measure the lease liability include all the fixed consideration in the contract. As of December 31, 2022 and 2023, the Group does not have any material finance leases. (p) Impairment of long-lived assets Long-lived assets, such as property and equipment and operating lease right of use assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purposes of impairment testing of long-lived assets of leased hotel, the Group has concluded that an individual hotel is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. When there are circumstances that require the long-lived assets of a hotel be tested for possible impairment, the Group first compares undiscounted cash flows generated by the assets to the carrying amount Key assumptions used in undiscounted cash flows include the average daily rates and occupancy rates. If the carrying amount of the long-lived assets is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Group recognized RMB60,517 of impairment losses of leased hotels, which included RMB55,403 for property and equipment and RMB5,114 for operating lease right of use assets, in hotel operating costs in the consolidated statements of comprehensive income for the year ended December 31, 2023. The impairment losses recognized were due to the carrying amounts of these long-lived assets were not recoverable by the undiscounted cash flows. The fair values of these long-lived assets were primarily represented by the price market participant would pay to sub-lease the operating lease right of use assets and acquire remaining property and equipment assets, which reflected the highest and best use of these assets. Significant unobservable inputs used in the fair value measurement include future market rental prices, which were determined with the assistance of an independent valuation specialist. No impairment losses were recognized for long-lived assets for the years ended December 31, 2021 and 2022. (q) Business combination Business combination is recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. (r) Goodwill Goodwill represents the excess purchase price over the estimated fair value of net assets acquired in a business combination. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Group performs its annual impairment review of goodwill at December 31 of each year. The Group has determined that it has one reporting unit, which is also its only reportable segment. The Group has the option to perform a qualitative assessment to determine whether it is more-likely-than not that the fair value of a reporting unit is less than its carrying value prior to performing the goodwill impairment test. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the goodwill impairment test is not required. If the goodwill impairment test is required, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. Application of the goodwill impairment test requires judgment, including the determination of the fair value of reporting unit. Estimating fair value is performed by utilizing various valuation techniques, with a primary technique being a discounted cash flow which requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. No impairment losses were recorded for goodwill for the years ended December 31, 2021, 2022 and 2023. (s) Value-added-tax (“VAT”) Entities that are VAT general taxpayers are permitted to offset qualified input VAT paid to suppliers against their output VAT upon receipt of appropriate supplier VAT invoices on an entity-by-entity basis. When the output VAT exceeds the input VAT, the difference is remitted to tax authorities, usually on a monthly basis; whereas when the input VAT exceeds the output VAT, the difference is treated as VAT recoverable which can be carried forward indefinitely to offset future net VAT payables. VAT related to purchases and sales which have not been settled at the balance sheet date is disclosed separately as an asset and liability, respectively, in the consolidated balance sheet. For entities engaged in hospitality industry, the input VAT credit is entitled to additional 10% deduction from April 1, 2019 to December 31, 2023. For the years ended December 31, 2021, 2022 and 2023, the Group recognized RMB12,864, RMB12,035 and RMB12,650 of input VAT additional deduction benefit, respectively, and included in other operating income in the consolidated statements of comprehensive income. (t) Asset retirement costs The Group’s asset retirement obligations are primarily related to its leased hotels, of which the majority are leased under long-term arrangements, and, in certain cases, are required to be returned to the landlords in their original condition. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred. The corresponding asset retirement costs are capitalized as part of the cost of leasehold improvements and are depreciated over the shorter of the asset’s useful life or the term of the lease subsequent to the initial measurement. The Group accretes the liability in relation to the asset retirement obligations over time and the accretion expense is recorded in hotel operating costs in the consolidated statements of comprehensive income. Asset retirement obligations are recorded in other non-current liabilities. The following table summarizes the activities of the asset retirement obligation liability: As of December 31, 2022 2023 RMB RMB Balance at the beginning of the year 3,597 3,773 Accretion expense 176 185 Balance at the end of the year 3,773 3,958 (u) Revenue recognition Revenue is primarily derived from contracts of manachised hotels with third party franchisees, products and services in leased hotels, as well as sales of lifestyle products via the e-commence platforms and hotel shops. Manachised hotel revenues The franchise and management agreements primarily contain the following promised goods or services: ● Intellectual Property (“IP”) license grants the right to access the Group’s hotel system IP, including brand names. ● Pre-opening services (e.g. central reservation system installation service, and services related to the assistance on employees training and other hotel opening preparation activities). ● Hotel management services include providing day-to-day management services of the hotels for the franchisees and central reservation system maintenance services. ● Sales of hotel supplies and other products. The promises to provide pre-opening services (e.g. information system installation service, and services related to the assistance on employees training and other hotel opening preparation activities) are not considered distinct performance obligation because they are highly interrelated with the IP license. Therefore, the promises to provide these pre-opening services have been combined with the related IP license as a single performance obligation. Manachised hotel revenues are derived from franchise and management agreements where the franchisees are primarily required to pay (i) upfront franchise fees, (ii) continuing franchise fees, which primarily consist of on-going franchise and management fees, hotel managers fees and central reservation system usage and maintenance fees; and iii) fees for purchase of hotel supplies and other products. The transaction prices are allocated to the performance obligations based on the standalone selling prices of each component. Upfront franchise fees are typically fixed and collected upfront and recognized as revenue on a straight- line basis over the term of the franchise contract. The Group does not consider that the upfront franchise fees give rise to a significant financing component, since the primary purpose of the upfront franchise fee is to protect the Group from failure by franchisees to comply with the terms in the contract. On-going franchise and management fees are generally calculated as a certain percentage of the revenues of the manachised hotel, which are due and payable on a monthly basis and revenue is recognized over time as services are rendered. Hotel managers fees are also billed and collected monthly and revenue is recognized over time as services are rendered. Central reservation system usage and maintenance fees are recognized as a certain percentage of the revenues generated from central reservation system channel. Revenue from sales of hotel supplies and other products is recognized at a point of time when the control of the goods is transferred to the customers, generally when the goods are delivered to the customer and the customer has obtained the physical possession and legal title of the goods. The Group also in certain cases provides hotel renovation services to franchisees to convert their buildings suitable for hotel use. When the renovation revenue can be reasonably measured, such revenue is recognized progressively over time using the output method, based on the surveys of performance by the Group’s experts who review the work performed to date under each contract. When the renovation revenue cannot be reasonably measured, such revenue is recognized only to the extent of contract costs incurred that are expected to be recovered. The hotel renovation service revenue is included in manachised hotels revenues in the consolidated statements of comprehensive income. Leased hotel revenues Leased hotel revenues are primarily derived from the rental of rooms, food and beverage sales and other ancillary services, including but not limited to laundry, parking and conference reservation. Each of these products and services represents a distinct performance obligation and, in exchange for these products and services, the Group receives fixed amounts based on published or negotiated prices. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied. Retail revenues Revenues from sales from lifestyle products through the e-commence platforms and hotel shops are recognized when the control of the goods is transferred to the customers, generally when the goods are delivered to the customer and the customer has obtained the physical possession and the legal title of the goods. Customer loyalty program The Group invites its customers to participate in a membership program with different tiers of membership. Members could pay a membership fee for a higher membership tier. Under the membership program, members earn loyalty points, which generally expire two years after being earned and can be redeemed for future products and services. Points earned by loyalty program members represent a material right to free or discounted goods or services in the future. The Group is responsible for providing or arranging for the provision of those free or discounted goods or services in exchange. The Group is acting as a principal if the members redeem the points for the room nights in leased hotels or other lifestyle products. The Group is acting as an agent if the members redeem the points for room nights in manachised hotels. For points earned in leased hotels, a portion of the leased hotel revenues is deferred until the members redeem points. For points earned in manachised hotels, the Group collects a loyalty program management fee from manachised hotels at a fixed rate per point. Such loyalty program management fee is recognized on a net basis by netting off refunds to manachised hotels when members redeem the points for room nights in manachised hotels, and is included in manachised hotels revenues in the consolidated statements of comprehensive income. The Group estimates breakage for loyalty points that members will never redeem based on the Group’s historical experience and expectations of future member behavior and re-assess the estimate at the end of each reporting period. The estimated breakage for points earned in manachised hotels are also recognized as manachised hotels revenues in the consolidated statements of comprehensive income. Membership fee from the Group’s customer loyalty program is recognized on a straight-line basis over the membership period, which is included in other revenues in the consolidated statements of comprehensive income. (v) Contract assets and deferred revenue Contract assets primarily represent revenue earned that is not yet billable based on the terms of the contracts. The amount of impairment losses of contract assets recognized in the consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 were nil, nil and RMB28,819. Cash proceeds received from customers are recorded as deferred revenue before the Group performs under the contracts. Contract assets and deferred revenue are reported in a net position on an individual contract basis at the end of each reporting period. Contract assets are classified as current in the consolidated balance sheet when the Group expects to realize within one year from the balance sheet date. Deferred revenue is classified as current in the consolidated balance sheet when the Group expects to settle within one year from the balance sheet date. (w) Government grant Government subsidies are received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Such subsidies allow the Group full discretion to utilize the funds and are used by the Group for general corporate purposes. During the years ended December 31, 2021, 2022 and 2023, the Group received financial subsidies of RMB9,507, RMB26,059 and RMB70,529 from various local PRC government authorities, respectively, which primarily consist of government subsidies for headquarter office. There are no defined rules and regulations to gove |
Prepayments and other current a
Prepayments and other current assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and other current assets | |
Prepayments and other current assets | 3. Prepayments and other current assets Prepayments and other current assets consist of the following: As of December 31, Note 2022 2023 RMB RMB Receivables on behalf of manachised hotels (i) 81,473 187,806 VAT recoverable 23,183 17,522 Prepaid advertising fees 3,979 15,363 Prepaid property management fees 5,467 9,333 Contract assets 13(b) 8,741 5,184 Prepayment for purchase of goods and service 5,990 4,264 Deposits 2,165 2,331 Others 6,027 13,221 Subtotal 137,025 255,024 Less: allowance for doubtful accounts (3,124) (3,124) Total 133,901 251,900 (i) The amount represents fees to be collected from corporate customers and travel agencies on behalf of franchisees Changes in the allowance for doubtful accounts are as follows: As of December 31, 2022 2023 RMB RMB At the beginning of the year 3,124 3,124 Allowance made during the year — — At the end of the year 3,124 3,124 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property and equipment, net | |
Property and equipment, net | 4. Property and equipment, net Property and equipment, net consists of the following: As of December 31, 2022 2023 RMB RMB Cost (1) : Leasehold improvements 443,695 412,409 Equipment, fixture and furniture, and other fixed assets 420,004 421,207 Total cost 863,699 833,616 Less: accumulated depreciation (503,399) (567,496) Property and equipment, net 360,300 266,120 (1) Depreciation expense recognized for the years ended December 31, 2021, 2022 and 2023 was RMB92,609, RMB87,473 and RMB83,731 respectively. |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets, net | |
Intangible assets, net | 5. Intangible assets, net Intangible assets, net, consist of the following: As of December 31, 2022 2023 RMB RMB Purchased software 11,055 11,055 Total cost 11,055 11,055 Less: accumulated amortization (5,518) (6,808) Intangible assets, net 5,537 4,247 Amortization expense recognized for the years ended December 31, 2021, 2022 and 2023 was RMB1,302, RMB1,088 and RMB1,290 respectively. Estimated amortization expense of the existing intangible assets is as follows: RMB For the year ending December 31, 2024 1,015 2025 1,012 2026 753 2027 603 2028 263 Thereafter 601 Total 4,247 |
Lease
Lease | 12 Months Ended |
Dec. 31, 2023 | |
Lease | |
Lease | 6. Lease As of December 31, 2023, the Group operated 32 leased hotels, leasing the underlying buildings. The Group generally enters into lease agreements with initial terms of 5 to 15 years. Some of the lease agreements contain renewal options. Such options are accounted for only when it is reasonably certain that the Group will exercise the options. The rent under current hotel lease agreements is generally payable in fixed rent. In addition to hotels leases, the Group also leases office spaces and logistics centers. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right-of-use assets and lease liabilities are recognized upon lease commencement for operating leases. Variable lease payments that do not depend on a rate or index are expensed as incurred. The Group has elected not to recognize right-of-use assets or lease liabilities for leases with an initial term of 12 months or less and the Group recognizes lease expense for these leases on a straight-line basis over the lease term. In addition, the Group has elected not to separate non-lease components (e.g., common area maintenance fees) from the lease components. In limited cases, the Group sublease certain hotels areas to third parties. Income from sublease agreements with third parties are included in other revenues, within the consolidated statements of comprehensive income. Supplemental Balance Sheet As of December 31, 2022 2023 RMB RMB Assets Operating lease right-of-use assets 1,932,000 1,712,580 Liabilities Current Operating lease liabilities 319,598 295,721 Non-current Operating lease liabilities 1,805,402 1,583,178 Total lease liabilities 2,125,000 1,878,899 Summary of Lease Cost Years ended December 31, 2022 2023 RMB RMB Account Classification Operating lease cost 362,689 362,462 Hotel operating costs, Other operating costs, General and administrative expenses Variable lease cost (1) (20,684) 6,332 Hotel operating costs, Other operating costs Sublease income (9,019) (13,742) Net revenues-Others Total lease cost 332,986 355,052 (1) Supplemental Cash Flow Information Years ended December 31, 2022 2023 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 341,348 402,308 Right-of-use assets obtained in exchange for lease liabilities — 51,559 As of December As of December 31, 2022 31, 2023 Lease term and discount rate Weighted-average remaining lease term (years) Operating leases 7.82 7.42 Weighted-average discount rate Operating leases 4.39 % 4.36 % Summary of Future Lease Payments and Lease Liabilities Maturities of operating lease liabilities as of December 31, 2023 were as follows: Total RMB For the year ending December 31, 2024 369,780 2025 311,439 2026 281,321 2027 272,654 2028 271,791 Thereafter 695,348 Total undiscounted lease payment 2,202,333 Less: imputed interest (a) (323,434) Present value of lease liabilities 1,878,899 (a) |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2023 | |
Other assets | |
Other assets | 7. Other assets Other assets consist of the following: As of December 31, Note 2022 2023 RMB RMB Long-term rental deposits 75,954 74,497 Contract assets 14(b) 58,288 54,446 Prepayments for purchase of property and equipment 349 815 VAT recoverable 6,744 — Subtotal 141,335 129,758 Less: allowance for doubtful accounts 14(b) — (28,819) Total 141,335 100,939 Changes in the allowance for doubtful accounts is as follows: As of December 31, 2022 2023 RMB RMB At the beginning of the year — — Allowance made during the year — 28,819 At the end of the year — 28,819 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill. | |
Goodwill | 8. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in the acquisition. Goodwill is not deductible for tax purposes and is assigned to the only reporting unit of the Group, which is the Atour Group. The Group did not incur any impairment loss on goodwill for the years ended December 31, 2021, 2022 and 2023. |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2023 | |
Income tax | |
Income tax | 9. Income tax (a) Income tax Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the Company’s Hong Kong subsidiary is subject to Hong Kong profits tax at the rate of 16.5% on its taxable income generated from operations in Hong Kong. A two-tiered Profits Tax rates regime was introduced since year 2018 where the first HK$2,000 of assessable profits earned by a company will be taxed at 8.25% and the remaining profits will be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to nominate only one company in the group to benefit from the progressive rates. PRC Under the Law of the PRC on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, the Company’s PRC subsidiaries are subject to a uniform tax rate of 25%, and the industries and projects that are encouraged and supported by the State may enjoy tax preferential treatment. Shanghai Chengduo Information Technology Co., Ltd. has been accredited as a software enterprise company since 2022. It qualifies for the tax holiday during which it is entitled to an exemption from EIT for two years commencing from its first profit-making year of operation and the 50% reduction of EIT for the following three years. The software enterprise qualification is subject to an annual assessment. Under the EIT Law and its implementation rules, an enterprise established outside China with a “place of effective management” within China is considered a China resident enterprise for Chinese enterprise income tax purposes. A China resident enterprise is generally subject to certain Chinese tax reporting obligations and a uniform 25% enterprise income tax rate on its worldwide income. The implementation rules to the EIT Law provide that non-resident legal entities are considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc., occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Company does not believe that the legal entities organized outside the PRC should be treated as residents for EIT Law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC are deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income tax at a rate of 25%. Dividends paid to non-PRC-resident corporate investor from profits earned by the PRC subsidiaries after January 1, 2008 would be subject to a withholding tax. The EIT Law and its relevant regulations impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends distributed by a PRC-resident enterprise to its non-PRC-resident corporate investor for earnings generated beginning on January 1, 2008. Income tax expense consists of the following: Years ended December 31, 2021 2022 2023 RMB RMB RMB Current income tax expense 73,613 74,300 275,107 Deferred income tax (benefit) expense (9,396) 10,174 (32,071) Total 64,217 84,474 243,036 The actual income tax expenses reported in the consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 differ from the amount computed by applying the PRC statutory income tax rate of 25% to income before income taxes due to the following: Years ended December 31, 2021 2022 2023 RMB RMB RMB Income before income taxes 203,887 180,556 982,093 Computed expected tax expense 50,972 45,139 245,523 Increase (decrease) in income taxes resulting from: Non-deductible expenses 2,721 1,619 8,080 Additional deduction for research and development expenses (9,922) (8,714) (5,249) Share-based compensation — 40,798 40,995 Tax loss expiration — 2,800 30 Change in valuation allowance 19,066 1,085 (68) Tax rate difference due to different jurisdiction — — (1,354) PRC preferential tax rate — — (44,557) Others 1,380 1,747 (364) Total 64,217 84,474 243,036 (b) Deferred taxes The tax effects of temporary differences that give rise to the deferred tax assets (liabilities) balances as of December 31, 2022 and 2023 are as follows: As of December 31, 2022 2023 RMB RMB Deferred tax assets (liabilities) Tax losses carried forward 77,103 53,219 Allowance for doubtful accounts 6,523 16,944 Accrued payroll and other expenses 8,783 14,383 Inventory impairment 1,099 968 Deferred revenue 74,816 94,427 Contract costs (16,818) (24,556) Operating lease liabilities 486,083 430,732 Operating lease right-of-use assets (483,000) (428,145) Property and equipment 33,280 44,508 Excessive advertising and promotional expenses 262 18,056 Others 1,842 1,783 Total gross deferred tax assets 189,973 222,319 Valuation allowance on deferred tax assets (77,440) (77,372) Deferred tax assets, net of valuation allowance 112,533 144,947 Reported in consolidated balance sheets as: As of December 31, 2022 2023 RMB RMB Deferred tax assets 112,533 144,947 Deferred tax liabilities — — Net deferred tax assets 112,533 144,947 The Company has not recognized any deferred tax liability for the undistributed earnings of the PRC-resident enterprise as of December 31, 2022 and 2023, as the Company plans to permanently reinvest these earnings in the PRC. The Company intends to retain any future earnings for use in the operation and expansion of its business in the PRC. As of December 31,2023, the total amount of undistributed earnings from the PRC subsidiaries for which no withholding tax has been accrued was RMB1,684,402. The unrecognized deferred tax liability would be RMB168,440 subject to the foreign withholding tax rate of 10%. The movement of the valuation allowance is as follows: As of December 31, 2022 2023 RMB RMB Balance at the beginning of the year 76,355 77,440 (Reversal) addition during the year 3,885 (38) Reduction as a result of expiry of net operating loss carried forward (2,800) (30) Balance at the end of the year 77,440 77,372 The valuation allowance as of December 31, 2022 and 2023 was primarily provided for the deferred tax assets of certain PRC subsidiaries, which were in cumulative loss positions. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or utilizable. Management considers projected future taxable income and tax planning strategies in making this assessment. The net operating losses carry forward of the Company’s PRC subsidiaries amounted to RMB212,876 as of December 31, 2023, of which RMB12,624, RMB41,545, RMB87,997 and RMB56,223, RMB14,487 will expire if unused by December 31, 2024, 2025, 2026, 2027 and 2028, respectively. |
Accrued expenses and other paya
Accrued expenses and other payables | 12 Months Ended |
Dec. 31, 2023 | |
Accrued expenses and other payables | |
Accrued expenses and other payables | 10. Accrued expenses and other payables Accrued expenses and other payables consist of the following: As of December 31, 2022 2023 RMB RMB Payments received on behalf of manachised hotels (i) 199,395 441,174 VAT and other taxes payable 19,871 68,719 Deposits 53,203 64,672 Service fee 15,648 64,211 Payable for purchase of property and equipment 12,617 16,079 Others 29,548 29,536 Total 330,282 684,391 (i) The amount represents the payments collected or to be collected from customers or travel agencies on behalf of the franchisees for the reservation of manachised hotels . |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings | |
Borrowings | 11. Borrowings Borrowings consist of the following: As of December 31, 2022 2023 RMB RMB Short-term borrowings: Bank loans (i) 141,000 70,000 Loan from a third party 1,828 — Total 142,828 70,000 Current portion of long-term borrowings: Bank loans 29,130 — Total 29,130 — Long-term borrowings, non-current portion: Loan from a third party 2,000 2,000 Total 2,000 2,000 (i) As of December 31, 2023, the Group had several credit facilities with third party banks under which the Group can borrow up to RMB 480,000 during the term of the facilities mature from August 2024 to December 2024. The drawdown of the credit facilities is subject to the terms and conditions of each agreement. As of December 31, 2023, the unutilized credit facilities amounted to RMB 410,000 The weighted average interest rates of borrowings as of December 31, 2023 were 3.3% (December 31, 2022: 3.7%) per annum, respectively. |
Other non-current liabilities
Other non-current liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other non-current liabilities | |
Other non-current liabilities | 12. Other non-current liabilities Other non-current liabilities consist of the following: As of December 31, 2022 2023 RMB RMB Deposits received from franchisees 129,101 181,926 Asset retirement obligations 3,773 3,958 Others 8,889 8,568 Total 141,763 194,452 |
Ordinary shares with preference
Ordinary shares with preference rights | 12 Months Ended |
Dec. 31, 2023 | |
Ordinary shares with preference rights | |
Ordinary shares with preference rights | 13. Ordinary shares with preference rights Prior to the Restructuring, as described further in Note 1, Atour Shanghai had issued ordinary shares with preferences rights to certain shareholders, including Series A Shares, Series B Shares and Series C Shares. In connection with the Restructuring, the affiliates of these shareholders acquired Class A ordinary shares of the Company with the same rights, preferences and privileges for the surrender of their respective equity interests in Atour Shanghai. The rights, preferences and privileges of Series A Shares, Series B Shares and Series C Shares of Atour Shanghai are described below. Redemption rights For Series C Shares, at any time of the occurrence of the following events, the holders of Series C Shares are entitled to request the Company to redeem all of the outstanding Series C Shares at the redemption price equal to one hundred percent (100%) of the Series C Shares issue price (RMB552,330), plus interest at a compound rate of eight percent (8%) per annum from the applicable issue date to the redemption payment date. (i) failure to complete a Qualified initial public offering (“IPO”) or a Whole Sale transaction as acknowledged by the Series C shareholders within the fifth anniversary of the Series C Shares issue dates (being July 25, 2017 and October 25, 2017). Whole Sale transaction is defined as either a sale of more than 50% equity interests of the Company, or a disposal of all or substantially all of the assets of the Company or an exclusive license of all or substantially all of the Company’s intellectual properties to a third party; (ii) any material change of the Company’s principal business, the founder and the other senior executives, which would result in substantial obstacle of completing a Qualified IPO, without the Series C shareholders’ approval; iii) any material breach of representations, commitments and undertakings made by the Company and/or the founder in with the Series C Share investment; (iv) any material breach of the fiduciary duty by the founder and/or other senior executives, which would result in substantial obstacle of completing a Qualified IPO. For Series B Shares, upon the redemption of Series C Shares, and the occurrence of the following events: i) sale of over 50% equity interests of the Company, substantial For Series A Shares, they are only redeemable upon the liquidation events. Liquidation preference Upon any liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary, the holders of Series C Shares, Series B Shares and Series A Shares have the top, secondary and third priority, respectively, to be distributed or paid in preference to the other ordinary shareholders: (i) Each holder of Series C Shares, shall be entitled to receive an amount equal to one hundred percent (100%) of the applicable issue price plus interest at a compound rate of eight percent (8%) per annum from the applicable issue date to the payment date; ii) each holder of Series B Shares and Series A Shares shall be entitled to receive an amount equal to one Accounting for the ordinary shares with preference rights The Company had classified the ordinary share with redemption rights, representing Series B and Series C Shares of Atour Shanghai prior to the Restructuring, in the mezzanine equity in the consolidated balance sheets as they are contingently redeemable upon the occurrence of certain events outside of the Company’s control. The Company concluded the embedded redemption option of the Series B and Series C Shares did not need to be bifurcated pursuant to ASC 815 because these terms do not permit net settlement, nor they can be readily settled net by a means outside the contract, nor they can provide for delivery of an asset that puts the holders in a position not substantially different from net settlement. The Series B and Series C Shares were presented as redeemable Class A ordinary shares in the Company’s consolidated balance sheets. The Company had classified the ordinary shares with liquidation preference, representing Series A Shares of Atour Shanghai prior to the Restructuring in permanent equity as they are only redeemable upon the liquidation events. The Series A Shares were presented as Class A ordinary shares with liquidation preference in the Company’s consolidated balance sheets. For Series B Shares, no subsequent adjustment was made on the carrying amount as they were not probable to be redeemed. For Series C Shares, the Company concluded that it was probable that they would become redeemable and elected to recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the redeemable shares to equal the redemption value at the end of each reporting period. The accretions, if any, are recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit. In connection with the submission of the draft registration statement for the Company’s proposed IPO, and pursuant to the reorganization framework agreement entered into by Atour Shanghai and its shareholders in February 2021, the preference rights (including liquidation preference and redemption rights, where applicable) of Series A, B and C Shares were terminated on April 8, 2021. The redeemable Series B and C Shares were reclassified from mezzanine equity to permanent equity and Series A Shares with liquidation preference were reclassified to Class A ordinary shares within permanent equity on April 8, 2021 as a result of the termination of the preference rights. The Company’s Series C Shares activities for the year ended December 31, 2021 consist of the following: As of December 31, 2021 RMB Balance at the beginning of the year 713,893 Accretion to the redemption value of redeemable Class A ordinary Shares 15,115 Reclassification of redeemable Class A ordinary shares to Class A ordinary shares (729,008) Balance at the end of the year — |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue | |
Revenue | 14. Revenues (a) Disaggregation of revenues Years ended December 31, 2021 2022 2023 RMB RMB RMB Upfront franchise fees 32,356 38,066 46,831 Continuing franchise fees 554,227 757,158 1,362,654 Sales of hotel supplies and other products 514,557 516,865 1,179,686 Other transactions with the franchisees 119,161 48,754 116,438 Manachised hotels 1,220,301 1,360,843 2,705,609 Room 579,946 505,557 782,646 Food and beverage 43,641 43,313 51,583 Others 6,651 4,059 5,815 Leased hotels 630,238 552,929 840,044 Retail 191,596 253,607 971,931 Others 105,442 95,604 148,383 Total 2,147,577 2,262,983 4,665,967 No geographical information is presented as the operations, customers and long-lived assets of the Group are all located in the PRC. (b) Contract balances i) The following provides information about accounts receivable from contracts with customers: As of December 31, 2022 2023 RMB RMB Accounts receivable 152,167 194,399 Less: allowance for doubtful accounts (19,468) (32,298) Accounts receivable, net 132,699 162,101 Changes in the allowance for doubtful accounts is as follows: As of December 31, 2022 2023 RMB RMB At the beginning of the year 14,731 19,468 Cumulative effect of the adoption of ASU 2016-13 — 1,371 Allowance made during the year 4,737 11,935 Write off during the year — (476) At the end of the year 19,468 32,298 ii) The following table provides information about contract assets: As of December 31, 2022 2023 RMB RMB Current 8,741 5,184 Non-current 58,288 54,446 Subtotal 67,029 59,630 Less: allowance for doubtful accounts — (28,819) Total contract assets 67,029 30,811 Changes in the allowance for doubtful accounts is as follows: As of December 31, 2022 2023 RMB RMB At the beginning of the year — — Allowance made during the year — 28,819 At the end of the year — 28,819 The Group recognized RMB28,819 of credit loss allowance during the year ended December 31, 2023, which was primarily related to one franchisee after reassessment of the franchisee’s business forecast. iii) As of December 31, 2022 2023 RMB RMB Current 202,996 406,066 Non-current 277,841 369,455 Deferred revenue 480,837 775,521 The deferred revenue balances above as of December 31, 2022 and 2023 were comprised of the following: As of December 31, 2022 2023 RMB RMB Upfront franchise fees 319,537 420,421 Advances from sales of hotel supplies and other products 92,144 238,739 Loyalty program 36,877 44,787 Others 32,279 71,574 Deferred revenue 480,837 775,521 The Group recognized revenues of RMB160,633, RMB170,768 and RMB170,085 during the years ended December 31, 2021, 2022 and 2023, which were included in deferred revenue balance at the beginning of each year. (c) Revenue allocated to remaining performance obligation Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of December 31, 2022 and 2023, the Group had RMB319,537 and RMB420,421 of deferred revenues related to upfront franchise fees which are expected to be recognized as revenues over the remaining contract periods over 1 to 20 years. The Group has elected, as a practical expedient, not to disclose the transaction price allocated to unsatisfied or partially unsatisfied performance obligations that are part of a contract that has an original expected duration of one year or less. |
Net income per ordinary share
Net income per ordinary share | 12 Months Ended |
Dec. 31, 2023 | |
Net income per ordinary share | |
Net income per ordinary share | 15. Net income per ordinary share Basic and diluted net income per ordinary share for the years ended December 31, 2021, 2022 and 2023 are calculated as follow: Years ended December 31, 2021 2022 2023 RMB RMB RMB Numerator: Net income attributable to the Company 145,054 98,099 737,137 Accretion to the redemption value of redeemable Class A ordinary shares (i) (15,115) — — Net income available to ordinary shares 129,939 98,099 737,137 Denominator: Weighted average number of ordinary shares (for basic calculation) 323,163,367 (ii) 379,321,522 405,628,647 Effect of dilutive share-based awards (iii) — 2,277,167 9,194,655 Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation) 323,163,367 381,598,689 414,823,302 Basic net income per ordinary share (in RMB) 0.40 0.26 1.82 Diluted net income per ordinary share (in RMB) 0.40 0.26 1.78 (i) (ii) (iii) . |
Share based compensation
Share based compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share based compensation | |
Share based compensation | 16. Share based compensation In accordance with the share incentive plan adopted in 2017 (“2017 Share Incentive Plan”), 51,200,000 ordinary shares were reserved to for issuance to selected persons including its directors, employees and consultants. Under the 2017 Share Incentive Plan, share options granted contain a performance condition such that the awards only vest upon the completion of a Qualified IPO. For employees who terminate the employment before the completion of a Qualified IPO, the share options granted are forfeited upon the termination of employment. Options granted under the 2017 Share Incentive Plan are valid and effective for 10 years from the grant date. In March 2021, the Company’s board of directors approved a new share incentive plan (“Public Company Plan”), 51,029,546 ordinary shares were reserved for issuance to selected persons including its directors, employees and consultants. The unvested portion of share options, representing 14,196,882 share options granted under the 2017 Share Incentive Plan (“Original Awards”) were replaced by the options granted under Public Company Plan (“Modified Awards”) in April 2021, with the terms of the Modified Awards substantially the same as those of the Original Awards. Under the Public Company Plan, share options granted prior to the IPO either 1) vest upon the completion of a Qualified IPO or 2) have a graded vesting schedules in one one A summary of activities of the share options for the years ended December 31, 2023 is presented below: Weighted Aggregate Number of average Weighted remaining intrinsic share options exercise price per share contractual years value USD USD Outstanding at January 1, 2023 21,444,931 0.85 8.35 110,535 Grant 4,657,083 2.88 Forfeiture (1,000) 0.01 Exercise (19,427,760) 0.75 Outstanding at December 31, 2023 6,673,254 2.57 8.93 21,475 Exercisable as of December 31, 2023 5,211,516 2.68 9.04 16,216 The weight average grant fate fair value of the share options grated during the years ended December 2021, 2022 and 2023 was RMB11.93, RMB22.32 and RMB34.78, respectively. As of December 31, 2023, RMB27,705 of unrecognized compensation expense related to unvested share options is expected to be recognized over a remaining weighted-average vesting period of approximately 2.85 years. The total fair value at grant date of share options held by the Group’s employees that vested during 2023 was RMB159,957. The fair value of the share options granted is estimated on the date of grant using the binomial option pricing model with the following assumptions used. 2021 2022 2023 Risk-free rate of return (1) 1.7% - 3.2 % 3.1% - 4.0 % 3.4% - 3.8 % Volatility (2) 34.6% - 37.6 % 39.0% - 40.4 % 40.2% - 46.5 % Expected dividend yield (3) 0 % 0 % 0 % Fair value of ordinary share (in RMB) (4) 11.9 - 31.7 28.8 - 43.6 42.0 - 62.9 Exercise Multiple (5) 2.2 2.2 2.2-2.8 Expected term (6) 10 10 10 (1) Risk-free rate was estimated based on the yield of USD Treasury Strips for share options granted under the Public Company Plan as of the valuation date for a term consistent with the option life. (2) Expected volatility was assumed based on the historical volatility of the Company’s comparable companies in the period equal to the expected term of each grant. (3) The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the share options. (4) Prior to IPO, the estimated fair value of the ordinary shares at the grant dates was estimated by management with the assistance of an independent valuation firm. The Company first determined its enterprise value by using income approach, which required (5) The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it was estimated by referencing to a widely accepted academic research publication. (6) The expected term is the life of the option from grant date. For the years ended December 31, 2021, the Group did not recognize any share-based compensation expenses for the share options granted as all awards contain a performance condition which is contingent upon the completion of a Qualified IPO and is not considered probable until the event happens. Upon the completion of IPO in November 2022, the Group immediately recognized share-based compensation expenses of RMB96,605 of share options vested cumulatively. For the year ended December 31, 2022, the Group recognized RMB163,193 share-based compensation expenses. For the years ended December 31, 2023, the Group recognized RMB163,978 compensation expenses. The share-based compensation expenses have been categorized as either hotel operating costs, general and administrative expenses or selling and marketing expenses, depending on the job functions of the grantees. A summary of share-based compensation expenses recognized for the years ended December 31, 2022 and 2023 is presented below: Years ended December 31, 2022 2023 RMB RMB Hotel operating costs 2,111 1,286 Selling and marketing expenses 618 391 General and administrative expenses 160,464 162,301 Total 163,193 163,978 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity | |
Equity | 17. Equity (a) Ordinary shares In February 2021, the Company passed a board resolution to increase its authorized shares from 500,000,000 shares to 3,000,000,000 shares of par value USD0.0001 each, including 2,900,000,000 Class A ordinary shares (entitled to one vote per share) and 100,000,000 Class B ordinary shares (entitled to ten votes per share), which are subject to restrictions on the voting rights until the consummation of the Company’s IPO. In connection with the Company’s IPO in November 2022, the Company issued 5,462,500 American depositary shares (“ADSs”) or 16,387,500 Class A ordinary shares at the price of USD11 per ADS or USD3.67 per ordinary share, with net proceeds of RMB365,784. (b) Termination of preference rights of certain shareholders As set out in Note 13, the preference rights (including liquidation preference and redemption rights, where applicable) of Series A, B and C shares were terminated on April 8, 2021. The redeemable Series B and C Shares were reclassified from mezzanine equity to permanent equity and Series A Shares with liquidation preference were reclassified to ordinary shares within permanent equity on April 8, 2021 as a result of the termination of the preference rights. (c) Shares repurchase A subsidiary of the Company agreed to pay a cash consideration of RMB111,260 in May 2021 to acquire 8,822,664 ordinary shares held by a shareholder of Atour Shanghai, who agreed not to participate in the Restructuring. The transaction is accounted for as share repurchase by the Company for the year ended December 31, 2021. (d) Distribution to shareholders The Company agreed with certain shareholders to distribute of RMB20,645 in cash to these shareholders in May 2021. In August 2023, the Company declared a cash dividend of USD$0.05 per ordinary share, or USD$0.15 per American Depositary Share (“ADS”), with each ADS representing three Class A ordinary shares. The total amount of RMB150,579 was distributed on September 28, 2023. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | 18. Related party transactions In addition to the related party information disclosed elsewhere in the consolidated financial statements, the Group entered into the following material related party transactions. Name of party Relationship Trip.com Group Ltd. and its subsidiaries (collectively referred to as “Trip.com Group”) Major shareholder of the Company and its affiliated entities (a) Major transactions with related parties Years ended December 31, 2021 2022 2023 RMB RMB RMB Hotel reservation payments collected on behalf of the Group (1) Trip.com Group 588,238 692,771 1,441,229 Hotel reservation service fees (2) Trip.com Group 21,276 11,334 28,686 (1) (2) (b) Balances with related parties As of December 31, 2022 2023 RMB RMB Amounts due from related parties Trip.com Group 53,630 115,900 Amounts due to related parties Trip.com Group 3,004 1,104 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Contingencies | |
Contingencies | 19. Contingencies (a) Capital commitments As of December 31, 2023, the Group’s commitments related to leasehold improvements and installation of equipment for hotel operations was RMB3,607, which is expected to be incurred within one year. (b) Litigation and contingencies The Group and its operations from time to time are, and in the future may be, parties to or targets of lawsuits, claims, investigations, and proceedings, including but not limited to non-compliance respect to licenses and permits, franchise and management agreements and lease contracts, which are handled and defended in the ordinary course of business. The Group believes that the ultimate liability, if any, in excess of amounts already provided for these matters in the consolidated financial statements, is not likely to have a material adverse effect on the Group's results of operations, financial condition or cash flows. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies | |
Basis of preparation | (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousands except share data and per share data, or otherwise noted. Certain comparative items in the consolidated financial statements have been reclassified to conform to the current year’s presentation. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. ASU 2016-13 was further amended in November 2019 by ASU 2019-10. The Group adopted the guidance on January 1, 2023, using the modified retrospective approach through a cumulative-effect adjustment to accumulated deficit as of the effective date to align the Group’s current processes for establishing an allowance for credit losses with the new guidance. Upon adoption, the Group recorded an adjustment of RMB1,028 (net of related impact on deferred taxes) to opening accumulated deficit related to the credit allowance for accounts receivable and prepayments and other current assets. The adoption of ASU 2016-13 did not have a material impact on the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08 Business Combinations (Topic 805) — Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). It requires issuers to apply ASC 606 Revenue from Contracts with Customers to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. The Group adopted the new standard on January 1, 2023, and the adoption did not have a material impact on the consolidated financial statements. |
Principles of consolidation | (b) Principles of consolidation The Company’s consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. |
Use of estimates | (c) Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Items subject to such estimates and assumptions include, but are not limited to, estimate of breakage, the fair value of share-based compensation awards, allowance for doubtful accounts, impairment of inventory and the impairment of long-lived assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Convenience translation | (d) Convenience translation Translations of balances in the consolidated financial statements from RMB into United States dollars (“USD”) as of and for the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB7.0999 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2023, or at any other rate. The USD convenience translation is not required under U.S. GAAP and all USD convenience translation amounts in the accompanying consolidated financial statements are unaudited. |
Functional currency and foreign currency translation | (e) Functional currency and foreign currency translation The Group’s reporting currency is RMB. RMB is the currency of the primary economic environment in which the Group operates. The functional currency of the Company and Hong Kong subsidiary is the United States dollars (“USD”). The functional currency of the Company’s PRC subsidiaries is the RMB. The Group determined its functional currency to be RMB based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters. Transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are remeasured into the functional currency using the applicable exchange rate at the balance sheet date. The resulted exchange differences are recorded in the other (expenses) income, net in the consolidated statements of comprehensive income. The results of foreign operations are translated into RMB at the exchange rates as of the balance sheet date for assets and liabilities, the average daily exchange rate for each month for income and expense items and the historical exchange rates for equity accounts. Translation gains and losses are recorded in other comprehensive income (loss) and accumulated in the translation adjustment component of equity until the sale or liquidation of the foreign entity. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand, and highly liquid investments. The Group considers highly liquid investments that are readily convertible into known amounts of cash and with a maturity of three months or less when purchased to be cash equivalents. The Group’s cash and cash equivalents are deposited in financial institutions at the following locations: As of December 31, 2022 2023 RMB RMB Financial institutions in the mainland PRC —Denominated in Chinese Renminbi (“RMB”) 1,290,408 2,414,169 —Denominated in USD 3,541 3,614 Total cash balances held at mainland PRC financial institutions 1,293,949 2,417,783 Hong Kong —Denominated in RMB 9,884 9,904 —Denominated in USD 5,990 194,145 Total cash balances held at the Hong Kong financial institutions 15,874 204,049 Cayman Islands —Denominated in RMB 273 272 —Denominated in USD 279,065 218,703 Total cash balances held at the Cayman Islands financial institutions 279,338 218,975 Total cash and cash equivalents balances held at financial institutions 1,589,161 2,840,807 |
Restricted cash | (g) Restricted cash Restricted cash mainly consists of security deposits as requested by local government agencies and landlords. Restricted cash is classified as either current or non-current based on when the funds will be released in accordance with the terms of the respective agreement for the establishment. |
Short-term investments | (h) Short-term investments Short-term investments include wealth management products with original maturities less than one year when purchased, which are with variable return and principal amounts are not guaranteed. These investments are placed with financial institutions and measured at fair value. The fair value change of the short-term investments was recorded in gain from short-term investments in the consolidated statements of comprehensive income. |
Accounts receivable, net | (i) Accounts receivable, net Accounts receivable primarily consists of receivables from franchisees, corporate customers, travel agencies and hotel guests, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts based upon the current expected credit losses (“CECL”) model. The CECL model requires an estimate of the credit losses expected over the life of accounts receivable since initial recognition, and accounts receivable with similar risk characteristics are grouped together when estimating CECL. In assessing the CECL, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical credit loss experience, adjusted for relevant factors impacting collectability and forward-looking information indicative of external market conditions. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted. As of December 31, 2022 and 2023, the Group does not have any off-balance-sheet credit exposure relate to its franchisees and other customers. |
Contract costs | (j) Contract costs Contract costs are the incremental costs of obtaining a contract with a customer. Incremental costs of obtaining a contract are those costs that the Group incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (e.g. an incremental sales commission). Incremental costs of obtaining a contract are capitalized when incurred if the costs relate to revenue which will be recognized in a future reporting period and the costs are expected to be recovered. Other costs of obtaining a contract are expensed when incurred. Capitalized contract costs are amortized on straight-line basis over the fixed franchise and management agreement term considering the expected beneficial period from the contract cost asset is the fixed contract term. Capitalized contract costs are stated at cost less accumulated amortization and impairment losses. Contract costs capitalized as of December 31, 2022 and 2023 relate to the incremental sales commissions paid to the Group’s sales personnel whose selling activities resulted in customers entering into franchise and management agreements with the Group. Contract costs are recognized as part of selling and marketing expenses in the consolidated statements of comprehensive income in the period in which revenue from the franchise fees is recognized. The amount of capitalized costs recognized in the consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 were RMB7,870, RMB9,832 and RMB12,318, respectively. |
Inventories | (k) Inventories Inventories mainly consists of lifestyle products, small appliances and daily consumables, which are stated at the lower of cost and net realizable value. Cost of inventories is determined using the weighted average cost method. Valuation of inventories is based on currently available information about net realizable value. The estimate is dependent upon factors such as historical trends of similar merchandise, inventory aging, historical and forecasted consumer demand and promotional environment. When evidence exists that the net realizable value of inventory is lower than its cost, a write-down is recognized in operating costs in the consolidated statements of comprehensive income in the period when it occurs. |
Property and equipment, net | (l) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and any impairment. The estimated useful lives are presented below. Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets Equipment, fixtures and furniture, and other fixed assets 5 - 10 years Depreciation commences when the asset is ready for its intended use. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance are expensed as incurred. Gains or losses arising from the disposal of an item of property and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of disposal. |
Capitalized interest | (m) Capitalized interest Interest costs that are directly attributable to the construction of an asset which necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of that asset. The capitalization of interest costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, interest costs are being incurred and activities that are necessary to prepare the asset for its intended use are in progress. Capitalization of interest costs is ceased when the asset is substantially complete and ready for its intended use. A reconciliation of total interest costs to interest expense as reported in the consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 is as follows: Years ended December 31, 2021 2022 2023 RMB RMB RMB Total interest expense 9,469 6,501 5,005 Less: interest expense capitalized (1,532) — — Interest expense 7,937 6,501 5,005 |
Intangible assets, net | (n) Intangible assets, net Intangible assets consist primarily of software. Amortization of finite-lived intangible assets is computed using the straight-line method over the estimated useful lives. The amortization period is as follows: Purchased software 3 - 10 years |
Leases | (o) Leases The Group adopted ASC 842 on January 1, 2022, using a modified retrospective method for leases that exist at, or are entered into after, January 1, 2022, and has not recast the comparative periods presented in the consolidated financial statements. Prior to the adoption of ASC 842, operating leases were not recognized on the balance sheet, but rent expenses with fixed escalating payments and/or rent holidays were recognized on a straight-line basis over the lease term. Upon the adoption of ASC 842, right-of-use assets and lease liabilities are recognized upon lease commencement for operating leases. For operating leases, the lease liability is initially measured at the present value of the unpaid lease payments at the lease commencement date. The lease liability is subsequently measured at amortized cost using the effective-interest method. As the rate implicit in the lease cannot be readily determined, the Group uses the incremental borrowing rate at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Group would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The lease term for all of the Group’s leases includes the noncancellable period of the lease plus any additional periods covered by either an option to extend (or not to terminate) the lease that the Group is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. For operating leases, the right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. The right-of-use asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. For operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on a rate or index are expensed as incurred. Right-of-use assets for operating leases are occasionally reduced by impairment losses. See Note 2(p). The Group monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding right-of-use asset unless doing so would reduce the carrying amount of the right-of-use asset to an amount less than zero. In that case, the right-of-use asset is reduced to zero and the remainder of the adjustment is recorded in profit or loss. The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less. The Group recognizes the lease payments associated with its short-term leases as an expense on a straight-line basis over the lease term. The Group’s leases generally include non-lease maintenance services (i.e. common area maintenance). The Group has elected the practical expedient to account for the lease and non-lease maintenance components as a single lease component. Therefore, the lease payments used to measure the lease liability include all the fixed consideration in the contract. As of December 31, 2022 and 2023, the Group does not have any material finance leases. |
Impairment of long-lived assets | (p) Impairment of long-lived assets Long-lived assets, such as property and equipment and operating lease right of use assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purposes of impairment testing of long-lived assets of leased hotel, the Group has concluded that an individual hotel is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. When there are circumstances that require the long-lived assets of a hotel be tested for possible impairment, the Group first compares undiscounted cash flows generated by the assets to the carrying amount Key assumptions used in undiscounted cash flows include the average daily rates and occupancy rates. If the carrying amount of the long-lived assets is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Group recognized RMB60,517 of impairment losses of leased hotels, which included RMB55,403 for property and equipment and RMB5,114 for operating lease right of use assets, in hotel operating costs in the consolidated statements of comprehensive income for the year ended December 31, 2023. The impairment losses recognized were due to the carrying amounts of these long-lived assets were not recoverable by the undiscounted cash flows. The fair values of these long-lived assets were primarily represented by the price market participant would pay to sub-lease the operating lease right of use assets and acquire remaining property and equipment assets, which reflected the highest and best use of these assets. Significant unobservable inputs used in the fair value measurement include future market rental prices, which were determined with the assistance of an independent valuation specialist. No impairment losses were recognized for long-lived assets for the years ended December 31, 2021 and 2022. |
Business combination | (q) Business combination Business combination is recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. |
Goodwill | (r) Goodwill Goodwill represents the excess purchase price over the estimated fair value of net assets acquired in a business combination. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Group performs its annual impairment review of goodwill at December 31 of each year. The Group has determined that it has one reporting unit, which is also its only reportable segment. The Group has the option to perform a qualitative assessment to determine whether it is more-likely-than not that the fair value of a reporting unit is less than its carrying value prior to performing the goodwill impairment test. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the goodwill impairment test is not required. If the goodwill impairment test is required, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. Application of the goodwill impairment test requires judgment, including the determination of the fair value of reporting unit. Estimating fair value is performed by utilizing various valuation techniques, with a primary technique being a discounted cash flow which requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. No impairment losses were recorded for goodwill for the years ended December 31, 2021, 2022 and 2023. |
Value-added-tax ("VAT") | (s) Value-added-tax (“VAT”) Entities that are VAT general taxpayers are permitted to offset qualified input VAT paid to suppliers against their output VAT upon receipt of appropriate supplier VAT invoices on an entity-by-entity basis. When the output VAT exceeds the input VAT, the difference is remitted to tax authorities, usually on a monthly basis; whereas when the input VAT exceeds the output VAT, the difference is treated as VAT recoverable which can be carried forward indefinitely to offset future net VAT payables. VAT related to purchases and sales which have not been settled at the balance sheet date is disclosed separately as an asset and liability, respectively, in the consolidated balance sheet. For entities engaged in hospitality industry, the input VAT credit is entitled to additional 10% deduction from April 1, 2019 to December 31, 2023. For the years ended December 31, 2021, 2022 and 2023, the Group recognized RMB12,864, RMB12,035 and RMB12,650 of input VAT additional deduction benefit, respectively, and included in other operating income in the consolidated statements of comprehensive income. |
Asset retirement costs | (t) Asset retirement costs The Group’s asset retirement obligations are primarily related to its leased hotels, of which the majority are leased under long-term arrangements, and, in certain cases, are required to be returned to the landlords in their original condition. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred. The corresponding asset retirement costs are capitalized as part of the cost of leasehold improvements and are depreciated over the shorter of the asset’s useful life or the term of the lease subsequent to the initial measurement. The Group accretes the liability in relation to the asset retirement obligations over time and the accretion expense is recorded in hotel operating costs in the consolidated statements of comprehensive income. Asset retirement obligations are recorded in other non-current liabilities. The following table summarizes the activities of the asset retirement obligation liability: As of December 31, 2022 2023 RMB RMB Balance at the beginning of the year 3,597 3,773 Accretion expense 176 185 Balance at the end of the year 3,773 3,958 |
Revenue recognition | (u) Revenue recognition Revenue is primarily derived from contracts of manachised hotels with third party franchisees, products and services in leased hotels, as well as sales of lifestyle products via the e-commence platforms and hotel shops. Manachised hotel revenues The franchise and management agreements primarily contain the following promised goods or services: ● Intellectual Property (“IP”) license grants the right to access the Group’s hotel system IP, including brand names. ● Pre-opening services (e.g. central reservation system installation service, and services related to the assistance on employees training and other hotel opening preparation activities). ● Hotel management services include providing day-to-day management services of the hotels for the franchisees and central reservation system maintenance services. ● Sales of hotel supplies and other products. The promises to provide pre-opening services (e.g. information system installation service, and services related to the assistance on employees training and other hotel opening preparation activities) are not considered distinct performance obligation because they are highly interrelated with the IP license. Therefore, the promises to provide these pre-opening services have been combined with the related IP license as a single performance obligation. Manachised hotel revenues are derived from franchise and management agreements where the franchisees are primarily required to pay (i) upfront franchise fees, (ii) continuing franchise fees, which primarily consist of on-going franchise and management fees, hotel managers fees and central reservation system usage and maintenance fees; and iii) fees for purchase of hotel supplies and other products. The transaction prices are allocated to the performance obligations based on the standalone selling prices of each component. Upfront franchise fees are typically fixed and collected upfront and recognized as revenue on a straight- line basis over the term of the franchise contract. The Group does not consider that the upfront franchise fees give rise to a significant financing component, since the primary purpose of the upfront franchise fee is to protect the Group from failure by franchisees to comply with the terms in the contract. On-going franchise and management fees are generally calculated as a certain percentage of the revenues of the manachised hotel, which are due and payable on a monthly basis and revenue is recognized over time as services are rendered. Hotel managers fees are also billed and collected monthly and revenue is recognized over time as services are rendered. Central reservation system usage and maintenance fees are recognized as a certain percentage of the revenues generated from central reservation system channel. Revenue from sales of hotel supplies and other products is recognized at a point of time when the control of the goods is transferred to the customers, generally when the goods are delivered to the customer and the customer has obtained the physical possession and legal title of the goods. The Group also in certain cases provides hotel renovation services to franchisees to convert their buildings suitable for hotel use. When the renovation revenue can be reasonably measured, such revenue is recognized progressively over time using the output method, based on the surveys of performance by the Group’s experts who review the work performed to date under each contract. When the renovation revenue cannot be reasonably measured, such revenue is recognized only to the extent of contract costs incurred that are expected to be recovered. The hotel renovation service revenue is included in manachised hotels revenues in the consolidated statements of comprehensive income. Leased hotel revenues Leased hotel revenues are primarily derived from the rental of rooms, food and beverage sales and other ancillary services, including but not limited to laundry, parking and conference reservation. Each of these products and services represents a distinct performance obligation and, in exchange for these products and services, the Group receives fixed amounts based on published or negotiated prices. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied. Retail revenues Revenues from sales from lifestyle products through the e-commence platforms and hotel shops are recognized when the control of the goods is transferred to the customers, generally when the goods are delivered to the customer and the customer has obtained the physical possession and the legal title of the goods. Customer loyalty program The Group invites its customers to participate in a membership program with different tiers of membership. Members could pay a membership fee for a higher membership tier. Under the membership program, members earn loyalty points, which generally expire two years after being earned and can be redeemed for future products and services. Points earned by loyalty program members represent a material right to free or discounted goods or services in the future. The Group is responsible for providing or arranging for the provision of those free or discounted goods or services in exchange. The Group is acting as a principal if the members redeem the points for the room nights in leased hotels or other lifestyle products. The Group is acting as an agent if the members redeem the points for room nights in manachised hotels. For points earned in leased hotels, a portion of the leased hotel revenues is deferred until the members redeem points. For points earned in manachised hotels, the Group collects a loyalty program management fee from manachised hotels at a fixed rate per point. Such loyalty program management fee is recognized on a net basis by netting off refunds to manachised hotels when members redeem the points for room nights in manachised hotels, and is included in manachised hotels revenues in the consolidated statements of comprehensive income. The Group estimates breakage for loyalty points that members will never redeem based on the Group’s historical experience and expectations of future member behavior and re-assess the estimate at the end of each reporting period. The estimated breakage for points earned in manachised hotels are also recognized as manachised hotels revenues in the consolidated statements of comprehensive income. Membership fee from the Group’s customer loyalty program is recognized on a straight-line basis over the membership period, which is included in other revenues in the consolidated statements of comprehensive income. |
Contract assets and deferred revenue | (v) Contract assets and deferred revenue Contract assets primarily represent revenue earned that is not yet billable based on the terms of the contracts. The amount of impairment losses of contract assets recognized in the consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 were nil, nil and RMB28,819. Cash proceeds received from customers are recorded as deferred revenue before the Group performs under the contracts. Contract assets and deferred revenue are reported in a net position on an individual contract basis at the end of each reporting period. Contract assets are classified as current in the consolidated balance sheet when the Group expects to realize within one year from the balance sheet date. Deferred revenue is classified as current in the consolidated balance sheet when the Group expects to settle within one year from the balance sheet date. |
Government grant | (w) Government grant Government subsidies are received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Such subsidies allow the Group full discretion to utilize the funds and are used by the Group for general corporate purposes. During the years ended December 31, 2021, 2022 and 2023, the Group received financial subsidies of RMB9,507, RMB26,059 and RMB70,529 from various local PRC government authorities, respectively, which primarily consist of government subsidies for headquarter office. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded as other operating income in the consolidated statements of comprehensive income, when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Group will continue to receive any or similar subsidies in the future. There were no significant commitment or contingencies for the government subsidies received for the years ended December 31, 2021, 2022 and 2023. |
Advertising and promotion expenses | (x) Advertising and promotion expenses Advertising and promotion related expenses primarily consist of advertising costs including production costs of marketing materials and the promotion related service fees of e-commerce platforms for retail business, which are charged to the consolidated statements of comprehensive income as incurred and amounted to RMB64,226 and RMB74,963 and RMB302,459 for the years ended December 31, 2021, 2022 and 2023, respectively. |
Technology and development expenses | (y) Technology and development expenses Technology and development expenses are expensed as incurred, mainly consist of (i) staff costs incurred for the self-developed hotel operation, reservation systems and other systems related to sales of hotel supplies and retail business, (ii) servers and cloud infrastructure costs, (iii) retail products development costs, (iv)other expenses related to technology and development functions. |
Pre-opening expenses | (z) Pre-opening expenses For leased hotels, the Group expenses all costs incurred in connection with start-up activities. Pre- opening expenses primarily include rental expenses and staff costs incurred during the hotel pre-opening period. |
Employee benefits | (aa) Employee benefits Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the Company’s PRC subsidiaries make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB110,194, RMB129,254 and RMB160,825 and for the years ended December 31, 2021, 2022 and 2023. |
Income taxes | (ab) Income taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss and tax credit carryforwards, if any. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax laws are recognized in the consolidated statements of comprehensive income in the period the change in tax rates or tax laws is enacted. The Group reduces the carrying amounts of deferred tax assets by a valuation allowance, if based on the available evidence, it is “more-likely-than-not” that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed at each reporting period based on a “more-likely-than-not” realization threshold. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, and the Group’s experience with operating loss and tax credit carryforwards, if any, not expiring. The Group recognizes in its financial statements the impact of a tax position if that position is “more likely-than-not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more-likely-than-not” recognition threshold is measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Changes in recognition or measurement is reflected in the period in which the change in judgment occurs. Interest and penalties recognized related to unrecognized tax benefits are classified as income tax expense in the consolidated statements of comprehensive income. |
Share based compensation | (ac) Share based compensation The Group accounts for the compensation cost from share-based payment transactions with employees based on the grant-date fair value of the equity instrument issued. For graded-vesting awards with service conditions only, the grant-date fair value of the award is recognized as compensation expense on a straight-line basis, over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. The cumulative amount of compensation cost recognized at any point in time is at least equal the portion of the grant-date fair value of the award that is vested at that date. For graded vesting awards with service conditions and performance conditions, the compensation expense is recognized on a tranche-by-tranche basis when the performance goal becomes probable to achieve. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. |
Statutory reserve | (ad) Statutory reserve In accordance with the Company Laws of the PRC, the PRC Entities registered as PRC domestic companies must make appropriations from its after-tax profit as determined under the PRC GAAP to non- distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits as determined in accordance with the legal requirements in the PRC. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the respective company. Appropriation to the discretionary surplus fund is made at the discretion of the respective company. The use of the statutory reserves is restricted to the off-setting of losses or increasing capital of the respective company. All these reserves are not allowed to be transferred to their investors in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. As of December 31, 2022 and 2023, the PRC statutory reserve funds amounted to RMB83,858 and RMB126,297, respectively. |
Segment reporting | (ae) Segment reporting The Group uses the management approach in determining its operating segments. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. For the purpose of internal reporting and management’s operation review, the Group’s Chief Executive Officer does not segregate the Group’s business by product or service lines. Management has determined that the Group has one operating segment, which is the Atour Group. |
Contingencies | (af) Contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including but not limited to non-compliance respect to licenses and permits, franchise and management agreements and lease contracts, which are handled and defended in the ordinary course of business. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Fair value measurements | (ag) Fair value measurements The Group applies ASC 820, Fair Value measurements and Disclosures, for fair value measurements financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the financial statements on a recurring and non-recurring basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date. ● Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances. The Group classifies its short-term investments within Level 2 in the fair value hierarchy because it uses alternative pricing sources and models utilizing market observable inputs to determine their fair value. The Group’s other financial instruments primarily include cash and cash equivalent, restricted cash, accounts receivable, prepayments and other current assets, amounts due from related parties, accounts payable, amounts due to related parties, accrued expenses and other payables, and short-term borrowings. The carrying amounts of these short-term financial instruments approximate their fair value due to their short-term nature. |
Net income (loss) per ordinary share | (ah) Net income per ordinary share Basic income per ordinary share is computed by dividing net income available to the Company’s ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on participating rights in undistributed earnings. Shares issuable for little to no consideration upon the satisfaction of certain conditions are considered as outstanding shares and included in the computation of basic earnings per share as of the date that all necessary conditions have been satisfied. Diluted income per ordinary share is calculated by dividing net income available to the Company’s ordinary shareholders as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary and dilutive ordinary share equivalents outstanding during the year. Potential dilutive securities are not included in the calculation of diluted income per ordinary share if the impact is anti-dilutive. |
Recently issued accounting pronouncements | (ai) Recently issued accounting pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures (“ASU 2023-07”), requiring public business entities to provide disclosures of significant expenses and other segment items. The guidance also requires public entities to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. For the Group, ASU 2023-07 is effective for annual periods from January 1, 2024, and for interim periods from January 1, 2025, with early adoption permitted. We don’t expect significant impact the adoption of this standard may have on the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) — Improvements to Income Tax Disclosures (“ASU 2023-09”), requiring public business entities to provide additional information in the rate reconciliation and additional disclosures about income taxes paid. ASU 2023-09 is effective for the Group from January 1, 2025, with early adoption permitted. We don’t expect significant impact the adoption of this standard may have on the consolidated financial statements. |
Risks and concentration | (aj) Risks and concentration Foreign exchange risk As the Group’s principal activities are carried out in the PRC, the Group’s transactions are mainly denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions involving RMB must take place through the People’s Bank of China or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the People’s Bank of China that are determined largely by supply and demand. The management does not expect that there will be any significant currency risk for the Group during the reporting periods. Credit risk The Group’s credit risk primarily arises from cash and cash equivalents, short-term investments, accounts receivable and amount due from related parties. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk. The Group expects that there is no significant credit risk associated with the cash and cash equivalents, restricted cash and short-term investments which are held by reputable financial institutions. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. Accounts receivable is unsecured and are primarily derived from revenue earned from manachised hotels. The risk with respect to accounts receivable is mitigated by credit evaluations performed on them. Amounts due from related parties are unsecured and are derived from the hotel reservation payment collected by the related parties on behalf of the Group. The Group believes that it is not exposed to unusual risks as the related parties are reputable travel agencies. Concentration The Group’s hotel operating costs and retail costs include the costs of hotel supplies and retail products purchased from third party vendors. The following table summarizes vendors with greater than 10% of Group’s purchase of products. As of December 31, 2021 2022 2023 Vendor A * * 14 % * Less than 10% |
Description of the business a_2
Description of the business and organization (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Description of the business and organization | |
Schedule of the principal subsidiaries | As of December 31, 2023, the principal subsidiaries of the Group are as follows: Date of Incorporation, Percentage of Merger or Place of Major Subsidiaries Ownership Acquisition Incorporation Operation Atour (Tianjin) Hotel Management Co., Ltd. 100% August 30, 2012 PRC Hotel management Shanghai Atour Business Management (Group) Co., Ltd. 100% February 17,2013 PRC Hotel management Xi’an Jiaduo Hotel Management Co., Ltd. 100% August 30, 2013 PRC Hotel management Gongyu (Shanghai) Culture Communication Co., Ltd. 100% December 02, 2014 PRC Retail management Shanghai Qingju Investment Management Co., Ltd. 100% July 15, 2015 PRC Investment management Fuzhou Hailian Atour Hotel Management Co., Ltd. 51% September 21, 2015 PRC Hotel management Chengdu Zhongchengyaduo Hotel Management Co., Ltd. 100% November 26, 2015 PRC Hotel management Shanghai Hongwang Financial Information Service Co., Ltd. 100% January 27, 2016 PRC Financial information service management Date of Incorporation, Percentage of Merger or Place of Major Subsidiaries Ownership Acquisition Incorporation Operation Shanghai Shankuai Information Technology Co., Ltd. 100% February 01,2016 PRC Retail management Hangzhou Anduo Hotel Management Co., Ltd. 100% April 20, 2017 PRC Hotel management Shanghai Leiduo Information Technology Co., Ltd. 100% March 21, 2017 PRC Retail management Yueduo (Shanghai) Apartment Management Service Co., Ltd. 80% March 23, 2017 PRC Property Management Shanghai Naiduo Hotel Management Co., Ltd. 100% July 25, 2017 PRC Hotel management Shanghai Zhouduo Hotel Management Co., Ltd. 100% August 04, 2017 PRC Hotel management Shanghai Chengduo Information Technology Co., Ltd. 100% November 15, 2017 PRC Software and Technology services Beijing Chengduo Data Technology Co., Ltd. 100% January 22, 2018 PRC Technology services Shanghai Xiangduo Enterprise Management Co., Ltd. 100% April 13, 2018 PRC Hotel management Shanghai Guiduo Hotel Management Co., Ltd. 100% May 08,2018 PRC Hotel management Atour (Shanghai) Travel Agency Co., Ltd. 100% July 05, 2018 PRC Travel agency operation Guangzhou Zhongduo Hotel Management Co., Ltd. 100% July 19, 2018 PRC Hotel management Shanghai Banduo Hotel Management Co., Ltd. 100% October 11, 2018 PRC Hotel management Beijing Yueduo Property Management Co., Ltd. 80% February 13, 2019 PRC Property Management Shanghai Xingduo Hotel Management Co., Ltd. 100% May 24, 2019 PRC Hotel management Shanghai Jiangduo Information Technology Co., Ltd. 100% March 07, 2019 PRC Retail management Shenzhen Jiaoduo Hotel Management Co., Ltd. 100% March 25, 2019 PRC Hotel management Shanghai Huiduo Hotel Management Co., Ltd. 90% July 15, 2019 PRC Hotel management Shanghai Mingduo Business Management Co., Ltd. 100% July 18, 2019 PRC Hotel management Shanghai Youduo Hotel Management Co., Ltd. 100% July 26, 2019 PRC Hotel management Shanghai Yinduo Culture Communication Co., Ltd. 100% August 27, 2020 PRC Retail management Atour Hotel (HK) Holdings, Ltd. 100% March 05, 2021 Hong Kong Investment holding Shanghai Rongduo Commercial Management Co., Ltd. 100% June 13, 2022 PRC Hotel management |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies | |
Summary of Group's cash and cash equivalents deposited in financial institutions locations | As of December 31, 2022 2023 RMB RMB Financial institutions in the mainland PRC —Denominated in Chinese Renminbi (“RMB”) 1,290,408 2,414,169 —Denominated in USD 3,541 3,614 Total cash balances held at mainland PRC financial institutions 1,293,949 2,417,783 Hong Kong —Denominated in RMB 9,884 9,904 —Denominated in USD 5,990 194,145 Total cash balances held at the Hong Kong financial institutions 15,874 204,049 Cayman Islands —Denominated in RMB 273 272 —Denominated in USD 279,065 218,703 Total cash balances held at the Cayman Islands financial institutions 279,338 218,975 Total cash and cash equivalents balances held at financial institutions 1,589,161 2,840,807 |
Schedule of estimated useful lives property and equipment | Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets Equipment, fixtures and furniture, and other fixed assets 5 - 10 years |
Schedule of reconciliation of total interest costs to interest expense as reported in the consolidated statements of comprehensive income | Years ended December 31, 2021 2022 2023 RMB RMB RMB Total interest expense 9,469 6,501 5,005 Less: interest expense capitalized (1,532) — — Interest expense 7,937 6,501 5,005 |
Schedule of amortization period of intangible assets | Purchased software 3 - 10 years |
Summary of activities of the asset retirement obligation liability | As of December 31, 2022 2023 RMB RMB Balance at the beginning of the year 3,597 3,773 Accretion expense 176 185 Balance at the end of the year 3,773 3,958 |
Summary of customers of prepayment, other current assets and vendors of total retail costs | The Group’s hotel operating costs and retail costs include the costs of hotel supplies and retail products purchased from third party vendors. The following table summarizes vendors with greater than 10% of Group’s purchase of products. As of December 31, 2021 2022 2023 Vendor A * * 14 % * Less than 10% |
Prepayments and other assets (T
Prepayments and other assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and other current assets | |
Schedule of prepayments and other current assets | As of December 31, Note 2022 2023 RMB RMB Receivables on behalf of manachised hotels (i) 81,473 187,806 VAT recoverable 23,183 17,522 Prepaid advertising fees 3,979 15,363 Prepaid property management fees 5,467 9,333 Contract assets 13(b) 8,741 5,184 Prepayment for purchase of goods and service 5,990 4,264 Deposits 2,165 2,331 Others 6,027 13,221 Subtotal 137,025 255,024 Less: allowance for doubtful accounts (3,124) (3,124) Total 133,901 251,900 (i) The amount represents fees to be collected from corporate customers and travel agencies on behalf of franchisees |
Schedule of changes in allowance for doubtful accounts | As of December 31, 2022 2023 RMB RMB At the beginning of the year 3,124 3,124 Allowance made during the year — — At the end of the year 3,124 3,124 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and equipment, net | |
Schedule of property and equipment, net | Property and equipment, net consists of the following: As of December 31, 2022 2023 RMB RMB Cost (1) : Leasehold improvements 443,695 412,409 Equipment, fixture and furniture, and other fixed assets 420,004 421,207 Total cost 863,699 833,616 Less: accumulated depreciation (503,399) (567,496) Property and equipment, net 360,300 266,120 (1) |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets, net | |
Schedule of intangible assets, net | As of December 31, 2022 2023 RMB RMB Purchased software 11,055 11,055 Total cost 11,055 11,055 Less: accumulated amortization (5,518) (6,808) Intangible assets, net 5,537 4,247 |
Schedule of estimated amortization expense of existing intangible assets | RMB For the year ending December 31, 2024 1,015 2025 1,012 2026 753 2027 603 2028 263 Thereafter 601 Total 4,247 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lease | |
Schedule of supplemental balance sheet | As of December 31, 2022 2023 RMB RMB Assets Operating lease right-of-use assets 1,932,000 1,712,580 Liabilities Current Operating lease liabilities 319,598 295,721 Non-current Operating lease liabilities 1,805,402 1,583,178 Total lease liabilities 2,125,000 1,878,899 |
Summary of lease cost | Years ended December 31, 2022 2023 RMB RMB Account Classification Operating lease cost 362,689 362,462 Hotel operating costs, Other operating costs, General and administrative expenses Variable lease cost (1) (20,684) 6,332 Hotel operating costs, Other operating costs Sublease income (9,019) (13,742) Net revenues-Others Total lease cost 332,986 355,052 (1) |
Schedule of lease term and discount rate | Years ended December 31, 2022 2023 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 341,348 402,308 Right-of-use assets obtained in exchange for lease liabilities — 51,559 As of December As of December 31, 2022 31, 2023 Lease term and discount rate Weighted-average remaining lease term (years) Operating leases 7.82 7.42 Weighted-average discount rate Operating leases 4.39 % 4.36 % |
Summary of future lease payments and lease liabilities | Total RMB For the year ending December 31, 2024 369,780 2025 311,439 2026 281,321 2027 272,654 2028 271,791 Thereafter 695,348 Total undiscounted lease payment 2,202,333 Less: imputed interest (a) (323,434) Present value of lease liabilities 1,878,899 (a) |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other assets | |
Schedule of other assets | As of December 31, Note 2022 2023 RMB RMB Long-term rental deposits 75,954 74,497 Contract assets 14(b) 58,288 54,446 Prepayments for purchase of property and equipment 349 815 VAT recoverable 6,744 — Subtotal 141,335 129,758 Less: allowance for doubtful accounts 14(b) — (28,819) Total 141,335 100,939 |
Schedule of changes in the allowance for doubtful accounts | As of December 31, 2022 2023 RMB RMB At the beginning of the year — — Allowance made during the year — 28,819 At the end of the year — 28,819 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income tax | |
Summary of income tax expense | Years ended December 31, 2021 2022 2023 RMB RMB RMB Current income tax expense 73,613 74,300 275,107 Deferred income tax (benefit) expense (9,396) 10,174 (32,071) Total 64,217 84,474 243,036 |
Summary of actual income tax expenses differ from the amount computed by applying the PRC statutory income tax rate | Years ended December 31, 2021 2022 2023 RMB RMB RMB Income before income taxes 203,887 180,556 982,093 Computed expected tax expense 50,972 45,139 245,523 Increase (decrease) in income taxes resulting from: Non-deductible expenses 2,721 1,619 8,080 Additional deduction for research and development expenses (9,922) (8,714) (5,249) Share-based compensation — 40,798 40,995 Tax loss expiration — 2,800 30 Change in valuation allowance 19,066 1,085 (68) Tax rate difference due to different jurisdiction — — (1,354) PRC preferential tax rate — — (44,557) Others 1,380 1,747 (364) Total 64,217 84,474 243,036 |
Summary of tax effects of temporary differences that give rise to the deferred tax assets (liabilities) | As of December 31, 2022 2023 RMB RMB Deferred tax assets (liabilities) Tax losses carried forward 77,103 53,219 Allowance for doubtful accounts 6,523 16,944 Accrued payroll and other expenses 8,783 14,383 Inventory impairment 1,099 968 Deferred revenue 74,816 94,427 Contract costs (16,818) (24,556) Operating lease liabilities 486,083 430,732 Operating lease right-of-use assets (483,000) (428,145) Property and equipment 33,280 44,508 Excessive advertising and promotional expenses 262 18,056 Others 1,842 1,783 Total gross deferred tax assets 189,973 222,319 Valuation allowance on deferred tax assets (77,440) (77,372) Deferred tax assets, net of valuation allowance 112,533 144,947 As of December 31, 2022 2023 RMB RMB Deferred tax assets 112,533 144,947 Deferred tax liabilities — — Net deferred tax assets 112,533 144,947 |
Summary of movement of the valuation allowance | As of December 31, 2022 2023 RMB RMB Balance at the beginning of the year 76,355 77,440 (Reversal) addition during the year 3,885 (38) Reduction as a result of expiry of net operating loss carried forward (2,800) (30) Balance at the end of the year 77,440 77,372 |
Accrued expenses and other pa_2
Accrued expenses and other payables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued expenses and other payables | |
Summary of accrued expenses and other payables | As of December 31, 2022 2023 RMB RMB Payments received on behalf of manachised hotels (i) 199,395 441,174 VAT and other taxes payable 19,871 68,719 Deposits 53,203 64,672 Service fee 15,648 64,211 Payable for purchase of property and equipment 12,617 16,079 Others 29,548 29,536 Total 330,282 684,391 (i) The amount represents the payments collected or to be collected from customers or travel agencies on behalf of the franchisees for the reservation of manachised hotels . |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings | |
Summary of borrowings | As of December 31, 2022 2023 RMB RMB Short-term borrowings: Bank loans (i) 141,000 70,000 Loan from a third party 1,828 — Total 142,828 70,000 Current portion of long-term borrowings: Bank loans 29,130 — Total 29,130 — Long-term borrowings, non-current portion: Loan from a third party 2,000 2,000 Total 2,000 2,000 (i) As of December 31, 2023, the Group had several credit facilities with third party banks under which the Group can borrow up to RMB 480,000 during the term of the facilities mature from August 2024 to December 2024. The drawdown of the credit facilities is subject to the terms and conditions of each agreement. As of December 31, 2023, the unutilized credit facilities amounted to RMB 410,000 |
Other non-current liabilities (
Other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other non-current liabilities | |
Schedule of other non current liabilities | As of December 31, 2022 2023 RMB RMB Deposits received from franchisees 129,101 181,926 Asset retirement obligations 3,773 3,958 Others 8,889 8,568 Total 141,763 194,452 |
Ordinary shares with preferen_2
Ordinary shares with preference rights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Ordinary shares with preference rights | |
Schedule of Company's Series C Shares activities | As of December 31, 2021 RMB Balance at the beginning of the year 713,893 Accretion to the redemption value of redeemable Class A ordinary Shares 15,115 Reclassification of redeemable Class A ordinary shares to Class A ordinary shares (729,008) Balance at the end of the year — |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue | |
Schedule of disaggregation of revenue | Years ended December 31, 2021 2022 2023 RMB RMB RMB Upfront franchise fees 32,356 38,066 46,831 Continuing franchise fees 554,227 757,158 1,362,654 Sales of hotel supplies and other products 514,557 516,865 1,179,686 Other transactions with the franchisees 119,161 48,754 116,438 Manachised hotels 1,220,301 1,360,843 2,705,609 Room 579,946 505,557 782,646 Food and beverage 43,641 43,313 51,583 Others 6,651 4,059 5,815 Leased hotels 630,238 552,929 840,044 Retail 191,596 253,607 971,931 Others 105,442 95,604 148,383 Total 2,147,577 2,262,983 4,665,967 |
Schedule of contract balances | As of December 31, 2022 2023 RMB RMB Accounts receivable 152,167 194,399 Less: allowance for doubtful accounts (19,468) (32,298) Accounts receivable, net 132,699 162,101 As of December 31, 2022 2023 RMB RMB Current 8,741 5,184 Non-current 58,288 54,446 Subtotal 67,029 59,630 Less: allowance for doubtful accounts — (28,819) Total contract assets 67,029 30,811 As of December 31, 2022 2023 RMB RMB Current 202,996 406,066 Non-current 277,841 369,455 Deferred revenue 480,837 775,521 As of December 31, 2022 2023 RMB RMB Upfront franchise fees 319,537 420,421 Advances from sales of hotel supplies and other products 92,144 238,739 Loyalty program 36,877 44,787 Others 32,279 71,574 Deferred revenue 480,837 775,521 |
Schedule of changes in the allowance for doubtful accounts | As of December 31, 2022 2023 RMB RMB At the beginning of the year 14,731 19,468 Cumulative effect of the adoption of ASU 2016-13 — 1,371 Allowance made during the year 4,737 11,935 Write off during the year — (476) At the end of the year 19,468 32,298 As of December 31, 2022 2023 RMB RMB At the beginning of the year — — Allowance made during the year — 28,819 At the end of the year — 28,819 |
Net income per ordinary share (
Net income per ordinary share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net income per ordinary share | |
Summary of basic and diluted net income per ordinary share | Years ended December 31, 2021 2022 2023 RMB RMB RMB Numerator: Net income attributable to the Company 145,054 98,099 737,137 Accretion to the redemption value of redeemable Class A ordinary shares (i) (15,115) — — Net income available to ordinary shares 129,939 98,099 737,137 Denominator: Weighted average number of ordinary shares (for basic calculation) 323,163,367 (ii) 379,321,522 405,628,647 Effect of dilutive share-based awards (iii) — 2,277,167 9,194,655 Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation) 323,163,367 381,598,689 414,823,302 Basic net income per ordinary share (in RMB) 0.40 0.26 1.82 Diluted net income per ordinary share (in RMB) 0.40 0.26 1.78 (i) (ii) (iii) . |
Share based compensation (Table
Share based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share based compensation | |
Schedule of activities of the share options | Weighted Aggregate Number of average Weighted remaining intrinsic share options exercise price per share contractual years value USD USD Outstanding at January 1, 2023 21,444,931 0.85 8.35 110,535 Grant 4,657,083 2.88 Forfeiture (1,000) 0.01 Exercise (19,427,760) 0.75 Outstanding at December 31, 2023 6,673,254 2.57 8.93 21,475 Exercisable as of December 31, 2023 5,211,516 2.68 9.04 16,216 |
Schedule of assumptions used in estimating the fair value of the share options on the date of grant using the binomial option pricing model | 2021 2022 2023 Risk-free rate of return (1) 1.7% - 3.2 % 3.1% - 4.0 % 3.4% - 3.8 % Volatility (2) 34.6% - 37.6 % 39.0% - 40.4 % 40.2% - 46.5 % Expected dividend yield (3) 0 % 0 % 0 % Fair value of ordinary share (in RMB) (4) 11.9 - 31.7 28.8 - 43.6 42.0 - 62.9 Exercise Multiple (5) 2.2 2.2 2.2-2.8 Expected term (6) 10 10 10 (1) Risk-free rate was estimated based on the yield of USD Treasury Strips for share options granted under the Public Company Plan as of the valuation date for a term consistent with the option life. (2) Expected volatility was assumed based on the historical volatility of the Company’s comparable companies in the period equal to the expected term of each grant. (3) The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the share options. (4) Prior to IPO, the estimated fair value of the ordinary shares at the grant dates was estimated by management with the assistance of an independent valuation firm. The Company first determined its enterprise value by using income approach, which required (5) The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it was estimated by referencing to a widely accepted academic research publication. (6) The expected term is the life of the option from grant date. |
Schedule of share-based compensation expenses recognized | Years ended December 31, 2022 2023 RMB RMB Hotel operating costs 2,111 1,286 Selling and marketing expenses 618 391 General and administrative expenses 160,464 162,301 Total 163,193 163,978 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Schedule of material related party transactions | Name of party Relationship Trip.com Group Ltd. and its subsidiaries (collectively referred to as “Trip.com Group”) Major shareholder of the Company and its affiliated entities Years ended December 31, 2021 2022 2023 RMB RMB RMB Hotel reservation payments collected on behalf of the Group (1) Trip.com Group 588,238 692,771 1,441,229 Hotel reservation service fees (2) Trip.com Group 21,276 11,334 28,686 (1) (2) As of December 31, 2022 2023 RMB RMB Amounts due from related parties Trip.com Group 53,630 115,900 Amounts due to related parties Trip.com Group 3,004 1,104 |
Description of the business a_3
Description of the business and organization (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | |
Description of the business and organization | |
Term of franchise and management agreements (in years) | 8 years |
Maximum | |
Description of the business and organization | |
Term of franchise and management agreements (in years) | 15 years |
Atour (Tianjin) Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Atour Business Management (Group) Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Xi'an Jiaduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Gongyu (Shanghai) Culture Communication Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Qingju Investment Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Fuzhou Hailian Atour Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 51% |
Chengdu Zhongchengyaduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Hongwang Financial Information Service Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Shankuai Information Technology Co.,Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Hangzhou Anduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Leiduo Information Technology Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Yueduo (Shanghai) Apartment Management Service Co., Ltd | |
Description of the business and organization | |
% of Ownership | 80% |
Shanghai Naiduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Zhouduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Chengduo Information Technology Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Beijing Chengduo Data Technology Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Xiangduo Enterprise Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Guiduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Atour (Shanghai) Travel Agency Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Guangzhou Zhongduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Banduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Beijing Yueduo Property Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 80% |
Shanghai Xingduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Jiangduo Information Technology Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shenzhen Jiaoduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Huiduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 90% |
Shanghai Mingduo Business Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Youduo Hotel Management Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Yinduo Culture Communication Co., Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Atour Hotel (HK) Holdings, Ltd | |
Description of the business and organization | |
% of Ownership | 100% |
Shanghai Rongduo Commercial Management Co., Ltd. | |
Description of the business and organization | |
% of Ownership | 100% |
Significant accounting polici_4
Significant accounting policies - Recently adopted accounting pronouncements (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Recently Adopted Accounting Pronouncements | |||
Accumulated deficit | ¥ (507,226) | $ (71,441) | ¥ 78,304 |
ASU 2016-13 | |||
Recently Adopted Accounting Pronouncements | |||
Accumulated deficit | ¥ 1,028 |
Significant accounting polici_5
Significant accounting policies - Convenience translation (Details) | Dec. 29, 2023 |
Significant accounting policies | |
Convenience translation | 7.0999 |
Significant accounting polici_6
Significant accounting policies - Cash and cash equivalents (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Summary of Group's cash and cash equivalents are deposited in financial institutions locations | ||||
Total cash and cash equivalents balances held at financial institutions | ¥ 2,840,807 | $ 400,119 | ¥ 1,589,161 | ¥ 1,038,583 |
PRC | ||||
Summary of Group's cash and cash equivalents are deposited in financial institutions locations | ||||
Total cash and cash equivalents balances held at financial institutions | 2,417,783 | 1,293,949 | ||
PRC | Denominated in RMB | ||||
Summary of Group's cash and cash equivalents are deposited in financial institutions locations | ||||
Total cash and cash equivalents balances held at financial institutions | 2,414,169 | 1,290,408 | ||
PRC | Denominated in USD | ||||
Summary of Group's cash and cash equivalents are deposited in financial institutions locations | ||||
Total cash and cash equivalents balances held at financial institutions | 3,614 | 3,541 | ||
Hong Kong | ||||
Summary of Group's cash and cash equivalents are deposited in financial institutions locations | ||||
Total cash and cash equivalents balances held at financial institutions | 204,049 | 15,874 | ||
Hong Kong | Denominated in RMB | ||||
Summary of Group's cash and cash equivalents are deposited in financial institutions locations | ||||
Total cash and cash equivalents balances held at financial institutions | 9,904 | 9,884 | ||
Hong Kong | Denominated in USD | ||||
Summary of Group's cash and cash equivalents are deposited in financial institutions locations | ||||
Total cash and cash equivalents balances held at financial institutions | 194,145 | 5,990 | ||
Cayman Islands | ||||
Summary of Group's cash and cash equivalents are deposited in financial institutions locations | ||||
Total cash and cash equivalents balances held at financial institutions | 218,975 | 279,338 | ||
Cayman Islands | Denominated in RMB | ||||
Summary of Group's cash and cash equivalents are deposited in financial institutions locations | ||||
Total cash and cash equivalents balances held at financial institutions | 272 | 273 | ||
Cayman Islands | Denominated in USD | ||||
Summary of Group's cash and cash equivalents are deposited in financial institutions locations | ||||
Total cash and cash equivalents balances held at financial institutions | ¥ 218,703 | ¥ 279,065 |
Significant accounting polici_7
Significant accounting policies - Contract costs (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant accounting policies | |||
Amount of capitalized costs recognized in the consolidated statements of comprehensive income | ¥ 12,318 | ¥ 9,832 | ¥ 7,870 |
Significant accounting polici_8
Significant accounting policies - Property and equipment, net (Details) - Equipment, fixture and furniture, and other fixed assets | Dec. 31, 2023 |
Minimum | |
Property and equipment, net | |
Estimated useful lives (in years) | 5 years |
Maximum | |
Property and equipment, net | |
Estimated useful lives (in years) | 10 years |
Significant accounting polici_9
Significant accounting policies - Capitalized interest (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Significant accounting policies | ||||
Total interest expenses | ¥ 5,005 | ¥ 6,501 | ¥ 9,469 | |
Less: interest expenses capitalized | (1,532) | |||
Interest expenses | ¥ 5,005 | $ 705 | ¥ 6,501 | ¥ 7,937 |
Significant accounting polic_10
Significant accounting policies - Intangible assets, net (Details) - Purchased software | Dec. 31, 2023 |
Minimum | |
Intangible assets, net | |
Amortization period (in years) | 3 years |
Maximum | |
Intangible assets, net | |
Amortization period (in years) | 10 years |
Significant accounting polic_11
Significant accounting policies - Impairment of long-lived assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Significant accounting policies | ||||
Impairment losses of leased hotels | ¥ 60,517 | $ 8,524 | ¥ 0 | ¥ 0 |
Impairment of property and equipment | 55,403 | ¥ 0 | ¥ 0 | |
Impairment losses operating lease right of use asset | ¥ 5,114 |
Significant accounting polic_12
Significant accounting policies - Goodwill (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) segment | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Significant accounting policies | |||
Number of reporting units | segment | 1 | ||
Impairment losses recorded for goodwill | ¥ | ¥ 0 | ¥ 0 | ¥ 0 |
Significant accounting polic_13
Significant accounting policies - Value-added-tax ("VAT") (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 48 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Significant accounting policies | ||||||
Input VAT credit (in percent) | 10% | 10% | 10% | |||
Amount of input VAT additional deduction benefit | ¥ 12,650 | ¥ 12,035 | ¥ 12,864 |
Significant accounting polic_14
Significant accounting policies - Asset retirement costs (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Significant accounting policies | ||
Balance at the beginning of the year | ¥ 3,773 | ¥ 3,597 |
Accretion expense | 185 | 176 |
Balance at the end of the year | ¥ 3,958 | ¥ 3,773 |
Significant accounting polic_15
Significant accounting policies - Revenue recognition (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies | |
Expiration period for loyalty points under membership program (in years) | 2 years |
Significant accounting polic_16
Significant accounting policies - Contract assets and deferred revenue (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant accounting policies | |||
Amount of impairment losses of contract assets | ¥ 28,819 | ¥ 0 | ¥ 0 |
Significant accounting polic_17
Significant accounting policies - Government grant (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant accounting policies | |||
Amount of financial subsidies received | ¥ 70,529 | ¥ 26,059 | ¥ 9,507 |
Significant accounting polic_18
Significant accounting policies - Advertising and promotion expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant accounting policies | |||
Advertising related expenses | ¥ 302,459 | ¥ 74,963 | ¥ 64,226 |
Significant accounting polic_19
Significant accounting policies - Employee benefits, Statutory reserve and Segment reporting (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) segment | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Significant accounting policies | |||
Defined contribution, employee benefit expenses | ¥ 160,825 | ¥ 129,254 | ¥ 110,194 |
Required minimum percentage of annual appropriations | 10% | ||
Statutory threshold percentage of the reserve fund to the registered capital of the respective company, above which the appropriation is not required | 50% | ||
PRC statutory reserve funds | ¥ 126,297 | ¥ 83,858 | |
Number of operating segments | segment | 1 |
Significant accounting polic_20
Significant accounting policies - Risks and concentration (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable | Credit concentration | Vendor A | |
Significant accounting policies | |
Concentration risk percentage | 14% |
Prepayments and other assets -
Prepayments and other assets - Prepayments and other current assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Prepayments and other current assets | ||||
Receivables on behalf of manachised hotels | ¥ 187,806 | ¥ 81,473 | ||
VAT recoverable | 17,522 | 23,183 | ||
Contract assets | 5,184 | 8,741 | ||
Prepaid advertising fees | 15,363 | 3,979 | ||
Prepaid property management fees | 9,333 | 5,467 | ||
Deposits | 2,331 | 2,165 | ||
Prepayment for purchase of goods and service | 4,264 | 5,990 | ||
Others | 13,221 | 6,027 | ||
Subtotal | 255,024 | 137,025 | ||
Less: allowance for doubtful accounts | (3,124) | (3,124) | ¥ (3,124) | |
Total | ¥ 251,900 | $ 35,480 | ¥ 133,901 |
Prepayments and other assets _2
Prepayments and other assets - Changes in the allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Prepayments and other current assets | ||
At the beginning of the year | ¥ 3,124 | ¥ 3,124 |
Allowance made during the year | 0 | 0 |
At the end of the year | ¥ 3,124 | ¥ 3,124 |
Property and equipment, net (De
Property and equipment, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Property and equipment, net | ||||
Total cost | ¥ 833,616 | ¥ 863,699 | ||
Less: accumulated depreciation | (567,496) | (503,399) | ||
Property and equipment, net | 266,120 | 360,300 | $ 37,482 | |
Impairment losses | ¥ 55,403 | ¥ 0 | ¥ 0 | |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | |
Depreciation expenses | ¥ 83,731 | ¥ 87,473 | ¥ 92,609 | |
Leasehold improvements | ||||
Property and equipment, net | ||||
Total cost | 412,409 | 443,695 | ||
Equipment, fixture and furniture, and other fixed assets | ||||
Property and equipment, net | ||||
Total cost | ¥ 421,207 | ¥ 420,004 |
Intangible assets, net (Details
Intangible assets, net (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible assets, net | ||
Total cost | ¥ 11,055 | ¥ 11,055 |
Less: accumulated amortization | (6,808) | (5,518) |
Total | 4,247 | 5,537 |
Purchased software | ||
Intangible assets, net | ||
Total cost | ¥ 11,055 | ¥ 11,055 |
Intangible assets, net - Additi
Intangible assets, net - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets, net | |||
Amortization expense recognized | ¥ 1,290 | ¥ 1,088 | ¥ 1,302 |
Intangible assets, net - Estima
Intangible assets, net - Estimated amortization expense of existing intangible assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Estimated amortization expense of existing intangible assets | ||
For the year ending December 31, 2024 | ¥ 1,015 | |
2025 | 1,012 | |
2026 | 753 | |
2027 | 603 | |
2028 | 263 | |
Thereafter | 601 | |
Total | ¥ 4,247 | ¥ 5,537 |
Lease - Additional Information
Lease - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 item | |
Lease | |
Number of operated leased hotels | 32 |
Minimum | |
Lease | |
Initial terms | 5 years |
Maximum | |
Lease | |
Initial terms | 15 years |
Lease - Supplemental Balance Sh
Lease - Supplemental Balance Sheet (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Assets | |||
Operating lease right-of-use assets | ¥ 1,712,580 | $ 241,212 | ¥ 1,932,000 |
Liabilities | |||
Operating lease liabilities, current | 295,721 | 41,651 | 319,598 |
Operating lease liabilities, non-current | 1,583,178 | $ 222,986 | 1,805,402 |
Total lease liabilities | ¥ 1,878,899 | ¥ 2,125,000 |
Lease - Summary of lease cost (
Lease - Summary of lease cost (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease | ||
Operating lease cost | ¥ 362,462 | ¥ 362,689 |
Variable lease cost | 6,332 | (20,684) |
Sublease income | (13,742) | (9,019) |
Total lease cost | 355,052 | 332,986 |
Lease concessions from landlords | ¥ 6,722 | ¥ 27,122 |
Lease - Supplemental cash flow
Lease - Supplemental cash flow information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease | ||
Operating cash flows from operating leases | ¥ 402,308 | ¥ 341,348 |
Right-of-use assets obtained in exchange for lease liabilities | ¥ 51,559 |
Lease - Lease term and discount
Lease - Lease term and discount rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Lease | ||
Weighted-average remaining lease term (years) Operating leases | 7 years 5 months 1 day | 7 years 9 months 25 days |
Weighted-average discount rate Operating leases | 4.36% | 4.39% |
Lease - Future lease payments a
Lease - Future lease payments and lease liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Maturities of operating lease liabilities | ||
For the year ending December 31, 2024 | ¥ 369,780 | |
2025 | 311,439 | |
2026 | 281,321 | |
2027 | 272,654 | |
2028 | 271,791 | |
Thereafter | 695,348 | |
Total undiscounted lease payment | 2,202,333 | |
Less: imputed interest | (323,434) | |
Present value of lease liabilities | ¥ 1,878,899 | ¥ 2,125,000 |
Other assets (Details)
Other assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Other assets | ||||
Long-term rental deposits | ¥ 74,497 | ¥ 75,954 | ||
Contract assets | 54,446 | 58,288 | ||
Prepayments for purchase of property and equipment | 815 | 349 | ||
VAT recoverable | 6,744 | |||
Subtotal | 129,758 | 141,335 | ||
Less: allowance for doubtful accounts | (28,819) | 0 | ¥ 0 | |
Total | ¥ 100,939 | $ 14,218 | ¥ 141,335 |
Other assets - Changes in the a
Other assets - Changes in the allowance for doubtful accounts (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Other assets | |
At the beginning of the year | ¥ 0 |
Allowance made during the year | 28,819 |
At the end of the year | ¥ (28,819) |
Income tax (Details)
Income tax (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax | |||
Tax rate | 25% | 25% | 25% |
Foreign withholding tax rate | 10% | ||
Hong Kong | |||
Income tax | |||
Tax rate | 16.50% | ||
Assessable profits to determine tax rate | ¥ 2,000 | ||
Hong Kong | First HK$2,000 of assessable profits earned | |||
Income tax | |||
Tax rate | 8.25% | ||
Hong Kong | After first HK$2,000 of assessable profits earned | |||
Income tax | |||
Tax rate | 16.50% | ||
PRC | |||
Income tax | |||
Tax rate | 25% | ||
Foreign withholding tax rate | 10% |
Income tax - Income tax expense
Income tax - Income tax expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Income tax expense | ||||
Current income tax expense | ¥ 275,107 | ¥ 74,300 | ¥ 73,613 | |
Deferred income tax (benefit) expense | (32,071) | $ (4,517) | 10,174 | (9,396) |
Total | ¥ 243,036 | $ 34,231 | ¥ 84,474 | ¥ 64,217 |
Income tax - Actual income tax
Income tax - Actual income tax expenses differ from the amount computed by applying the PRC statutory income tax rate (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Income tax | ||||
Statutory income tax rate | 25% | 25% | 25% | 25% |
Actual income tax expenses differ from the amount computed by applying the PRC statutory income tax rate | ||||
Income before income taxes | ¥ 982,093 | $ 138,325 | ¥ 180,556 | ¥ 203,887 |
Computed expected tax expense | 245,523 | 45,139 | 50,972 | |
Increase (decrease) in income taxes resulting from: | ||||
Non-deductible expenses | 8,080 | 1,619 | 2,721 | |
Additional deduction for research and development expenses | (5,249) | (8,714) | (9,922) | |
Share-based compensation | 40,995 | 40,798 | ||
Tax loss expiration | 30 | 2,800 | ||
Change in valuation allowance | (68) | 1,085 | 19,066 | |
Tax rate difference due to different jurisdiction | (1,354) | |||
PRC preferential tax rate | (44,557) | |||
Others | (364) | 1,747 | 1,380 | |
Total | ¥ 243,036 | $ 34,231 | ¥ 84,474 | ¥ 64,217 |
Income tax - Deferred taxes (De
Income tax - Deferred taxes (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets (liabilities) | |||
Tax losses carried forward | ¥ 53,219 | ¥ 77,103 | |
Allowance for doubtful accounts | 16,944 | 6,523 | |
Accrued payroll and other expenses | 14,383 | 8,783 | |
Inventory impairment | 968 | 1,099 | |
Deferred revenue | 94,427 | 74,816 | |
Contract costs | (24,556) | (16,818) | |
Operating lease liabilities | 430,732 | 486,083 | |
Operating lease right-of-use assets | (428,145) | (483,000) | |
Property and equipment | 44,508 | 33,280 | |
Excessive advertising and promotional expenses | 18,056 | 262 | |
Others | 1,783 | 1,842 | |
Total gross deferred tax assets | 222,319 | 189,973 | |
Valuation allowance on deferred tax assets | (77,372) | (77,440) | ¥ (76,355) |
Deferred tax assets, net of valuation allowance | ¥ 144,947 | ¥ 112,533 |
Income tax - Deferred taxes, re
Income tax - Deferred taxes, reported in balance sheets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Income tax | |||
Deferred tax assets | ¥ 144,947 | $ 20,415 | ¥ 112,533 |
Net deferred tax assets | 144,947 | ¥ 112,533 | |
Total amount of undistributed earnings from the PRC subsidiaries for which no withholding tax has been accrued | 1,684,402 | ||
Unrecognized deferred tax liability | ¥ 168,440 | ||
Foreign withholding tax rate | 10% |
Income tax - Movement of the va
Income tax - Movement of the valuation allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Movement of the valuation allowance | ||
Balance at the beginning of the year | ¥ 77,440 | ¥ 76,355 |
(Reversal) addition during the year | (38) | 3,885 |
Reduction as a result of expiry of net operating loss carried forward | (30) | (2,800) |
Balance at the end of the year | ¥ 77,372 | ¥ 77,440 |
Income tax - Net operating loss
Income tax - Net operating losses carry forward (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Income tax | |
Net operating losses carry forward | ¥ 212,876 |
Net operating losses carry forward, expiration on December 31, 2024 | 12,624 |
Net operating losses carry forward, expiration on December 31, 2025 | 41,545 |
Net operating losses carry forward, expiration on December 31, 2026 | 87,997 |
Net operating losses carry forward, expiration on December 31, 2027 | 56,223 |
Net operating losses carry forward, expiration on December 31, 2028 | ¥ 14,487 |
Accrued expenses and other pa_3
Accrued expenses and other payables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Accrued expenses and other payables | |||
Payments received on behalf of manachised hotels | ¥ 441,174 | ¥ 199,395 | |
VAT and other taxes payable | 68,719 | 19,871 | |
Deposits | 64,672 | 53,203 | |
Service fee | 64,211 | 15,648 | |
Payable for purchase of property and equipment | 16,079 | 12,617 | |
Others | 29,536 | 29,548 | |
Total | ¥ 684,391 | $ 96,394 | ¥ 330,282 |
Borrowings (Details)
Borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Borrowings | |||
Short-term borrowings | ¥ 70,000 | $ 9,859 | ¥ 142,828 |
Current portion of long-term borrowings | 29,130 | ||
Long-term borrowings, non-current portion | 2,000 | $ 282 | 2,000 |
Bank loans | |||
Borrowings | |||
Short-term borrowings | 70,000 | 141,000 | |
Current portion of long-term borrowings | 29,130 | ||
Loan from third parties | |||
Borrowings | |||
Short-term borrowings | 1,828 | ||
Long-term borrowings, non-current portion | ¥ 2,000 | ¥ 2,000 |
Borrowings - Schedule of debt (
Borrowings - Schedule of debt (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Schedule of debt | |
Credit facilities of revenues | ¥ 410,000 |
Credit facilities | Third party banks | |
Schedule of debt | |
Maximum borrowing capacity | ¥ 480,000 |
Borrowings - Weighted average i
Borrowings - Weighted average interest rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Borrowings | ||
Weighted average interest rates of short-term borrowings | 3.30% | 3.70% |
Other non-current liabilities_2
Other non-current liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Other non-current liabilities | |||
Deposits received from franchisees | ¥ 181,926 | ¥ 129,101 | |
Asset retirement obligations | 3,958 | 3,773 | |
Others | 8,568 | 8,889 | |
Total | ¥ 194,452 | $ 27,388 | ¥ 141,763 |
Ordinary shares with preferen_3
Ordinary shares with preference rights (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Series C Shares | |
Ordinary shares with preference rights | |
Redemption price as a percentage of issue price | 100% |
Temporary equity, Issue price | ¥ 552,330 |
Redemption, compound rate of interest per annum | 8% |
Minimum percentage of equity interest to be sold | 50% |
Liquidation preference of temporary equity as a percentage of issue price | 100% |
Liquidation preference of temporary equity, compound rate of interest per annum | 8% |
Series B Shares | |
Ordinary shares with preference rights | |
Redemption price as a percentage of issue price | 100% |
Temporary equity, Issue price | ¥ 167,500 |
Redemption, compound rate of interest per annum | 10% |
Liquidation preference of temporary equity, simple interest rate of interest per annum | 6% |
Liquidation preference of common stock as a percentage of issue price | 100% |
Series A Shares | |
Ordinary shares with preference rights | |
Liquidation preference of temporary equity, simple interest rate of interest per annum | 6% |
Liquidation preference of common stock as a percentage of issue price | 100% |
Common stock issue price | ¥ 49,000 |
Ordinary shares with preferen_4
Ordinary shares with preference rights - Series C Shares activities (Details) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 CNY (¥) | ||
Series C Shares activities | ||
Accretion to the redemption value of redeemable Class A ordinary Shares | ¥ 15,115 | |
Reclassification of redeemable Class A ordinary shares to Class A ordinary shares | (896,508) | [1] |
Series C Shares | ||
Series C Shares activities | ||
Balance at the beginning of the year | 713,893 | |
Accretion to the redemption value of redeemable Class A ordinary Shares | 15,115 | |
Reclassification of redeemable Class A ordinary shares to Class A ordinary shares | (729,008) | |
Balance at the end of the year | ¥ 0 | |
[1]Represent Series B and C shares of Atour Shanghai prior to Restructuring (see Note 13) |
Revenue -Disaggregation of reve
Revenue -Disaggregation of revenue (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | |||
Disaggregation of revenue | ¥ 4,665,967 | ¥ 2,262,983 | ¥ 2,147,577 |
Manachised hotels | |||
Revenue | |||
Disaggregation of revenue | 2,705,609 | 1,360,843 | 1,220,301 |
Room revenues | |||
Revenue | |||
Disaggregation of revenue | 782,646 | 505,557 | 579,946 |
Food and beverage revenues | |||
Revenue | |||
Disaggregation of revenue | 51,583 | 43,313 | 43,641 |
Others | |||
Revenue | |||
Disaggregation of revenue | 5,815 | 4,059 | 6,651 |
Leased hotels | |||
Revenue | |||
Disaggregation of revenue | 840,044 | 552,929 | 630,238 |
Retail | |||
Revenue | |||
Disaggregation of revenue | 971,931 | 253,607 | 191,596 |
Others | |||
Revenue | |||
Disaggregation of revenue | 148,383 | 95,604 | 105,442 |
Upfront franchise fees | |||
Revenue | |||
Disaggregation of revenue | 46,831 | 38,066 | 32,356 |
Continuing franchise fees | |||
Revenue | |||
Disaggregation of revenue | 1,362,654 | 757,158 | 554,227 |
Sales of hotel supplies and other products | |||
Revenue | |||
Disaggregation of revenue | 1,179,686 | 516,865 | 514,557 |
Other transactions with the franchisees | |||
Revenue | |||
Disaggregation of revenue | ¥ 116,438 | ¥ 48,754 | ¥ 119,161 |
Revenue - Change in accounts re
Revenue - Change in accounts receivable from contracts with customers (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Revenue | ||||
Accounts receivable | ¥ 194,399 | ¥ 152,167 | ||
Less: allowance for doubtful accounts | (32,298) | (19,468) | ¥ (14,731) | |
Accounts receivable, net | ¥ 162,101 | $ 22,831 | ¥ 132,699 |
Revenue - Changes in allowance
Revenue - Changes in allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||
At the beginning of the year | ¥ 19,468 | ¥ 14,731 |
Allowance made during the year | 11,935 | 4,737 |
Write off | (476) | |
At the end of the year | 32,298 | 19,468 |
ASU 2016-13 | Cumulative effect of the adoption | ||
Revenue | ||
At the beginning of the year | ¥ 1,371 | |
At the end of the year | ¥ 1,371 |
Revenue - Contract assets (Deta
Revenue - Contract assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Contract assets | ||
Current | ¥ 5,184 | ¥ 8,741 |
Non-current | 54,446 | 58,288 |
Subtotal | 59,630 | 67,029 |
Less: allowance for doubtful accounts | (28,819) | |
Total contract assets | ¥ 30,811 | ¥ 67,029 |
Revenue - Doubtful accounts (De
Revenue - Doubtful accounts (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | |
At the beginning of the year | ¥ 28,819 |
Allowance made during the year | 28,819 |
At the end of the year | ¥ 28,819 |
Revenue - Deferred revenue from
Revenue - Deferred revenue from contracts with customers (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Deferred revenue from contracts with customers | |||
Current | ¥ 406,066 | $ 57,193 | ¥ 202,996 |
Non-current | 369,455 | $ 52,037 | 277,841 |
Deferred revenue | ¥ 775,521 | ¥ 480,837 |
Revenue - Deferred revenue bala
Revenue - Deferred revenue balances (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred revenue from contracts with customers | |||
Upfront franchise fees | ¥ 420,421 | ¥ 319,537 | |
Advances from sales of hotel supplies and other products | 238,739 | 92,144 | |
Loyalty program | 44,787 | 36,877 | |
Others | 71,574 | 32,279 | |
Deferred revenue | 775,521 | 480,837 | |
Recognized revenues which were included in deferred revenue | ¥ 170,085 | ¥ 170,768 | ¥ 160,633 |
Revenue - Revenue allocated to
Revenue - Revenue allocated to remaining performance obligation (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||
Deferred revenues related to upfront franchise fees which are expected to be recognized as revenues over the remaining contract periods | ¥ 420,421 | ¥ 319,537 |
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | false | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Minimum | ||
Revenue | ||
Remaining contract period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Maximum | ||
Revenue | ||
Remaining contract period | 20 years |
Net income per ordinary share_2
Net income per ordinary share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | ||
Numerator: | |||||
Net income attributable to the Company | ¥ 737,137 | $ 103,824 | ¥ 98,099 | ¥ 145,054 | |
Accretion to the redemption value of redeemable Class A ordinary shares | ¥ | [1] | 15,115 | |||
Net income available to shareholders of the Company | ¥ 737,137 | $ 103,824 | ¥ 98,099 | ¥ 129,939 | |
Denominator: | |||||
Weighted average number of ordinary shares (for basic calculation) | 405,628,647 | 405,628,647 | 379,321,522 | 323,163,367 | |
Effect of dilutive share-based awards | 9,194,655 | 9,194,655 | 2,277,167 | ||
Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation) | 414,823,302 | 414,823,302 | 381,598,689 | 323,163,367 | |
Basic net income per ordinary share (in RMB) | (per share) | ¥ 1.82 | $ 0.26 | ¥ 0.26 | ¥ 0.40 | |
Diluted net income per ordinary share (in RMB) | (per share) | ¥ 1.78 | $ 0.25 | ¥ 0.26 | ¥ 0.40 | |
[1]Represent Series C shares of Atour Shanghai prior to Restructuring (see Note 13) |
Net (loss) income per ordinary
Net (loss) income per ordinary share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Weighted average ordinary shares used in calculating net income per ordinary share - Basic (in shares) | 405,628,647 | 379,321,522 | 323,163,367 |
Shares excluded from the calculation of diluted net income per ordinary share | 401,405 | 660,000 | 17,740,297 |
Class A ordinary shares | |||
Class of Stock [Line Items] | |||
Weighted average ordinary shares used in calculating net income per ordinary share - Basic (in shares) | 214,203,200 |
Share based compensation - Addi
Share based compensation - Additional Information (Details) - shares | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2017 | |
Share based compensation | |||
Share options granted | 4,657,083 | ||
2017 Share Incentive Plan | |||
Share based compensation | |||
Ordinary shares reserved for issuance | 51,200,000 | ||
Share options granted | 14,196,882 | ||
Term of the options | 10 years | ||
Public Company Plan | |||
Share based compensation | |||
Ordinary shares reserved for issuance | 51,029,546 | ||
Term of the options | 10 years | ||
Public Company Plan | Share options granted prior to the IPO | Minimum | |||
Share based compensation | |||
Vesting period | 1 year | ||
Public Company Plan | Share options granted prior to the IPO | Maximum | |||
Share based compensation | |||
Vesting period | 4 years | ||
Public Company Plan | Share options granted post IPO | Minimum | |||
Share based compensation | |||
Vesting period | 1 year | ||
Public Company Plan | Share options granted post IPO | Maximum | |||
Share based compensation | |||
Vesting period | 4 years |
Share based compensation - Summ
Share based compensation - Summary of activities of the share options (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of share options | |||
Outstanding at the beginning | 21,444,931 | ||
Grant | 4,657,083 | ||
Forfeiture | (1,000) | ||
Exercise | (19,427,760) | ||
Outstanding at the end | 6,673,254 | 21,444,931 | |
Exercisable | 5,211,516 | ||
Weighted average exercise price | |||
Outstanding at the beginning | ¥ 0.85 | ||
Grant | 2.88 | ||
Forfeiture | 0.01 | ||
Exercise | 0.75 | ||
Outstanding at the end | 2.57 | ¥ 0.85 | |
Exercisable | ¥ 2.68 | ||
Weighted remaining contractual years and aggregate intrinsic value | |||
Weighted remaining contractual years - Outstanding | 8 years 11 months 4 days | 8 years 4 months 6 days | |
Weighted remaining contractual years - Exercisable | 9 years 14 days | ||
Aggregate intrinsic value - Outstanding | ¥ 21,475 | ¥ 110,535 | |
Aggregate intrinsic value - Exercisable | ¥ 16,216 | ||
Weighted average grant date fair value | ¥ 34.78 | ¥ 22.32 | ¥ 11.93 |
Share based compensation - Assu
Share based compensation - Assumptions used in estimative the fair value of share options (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) ¥ / shares | Dec. 31, 2022 item ¥ / shares | Dec. 31, 2021 item ¥ / shares | |
Share based compensation | |||
Risk-free rate of return, minimum | 3.40% | 3.10% | 1.70% |
Risk-free rate of return, maximum | 3.80% | 4% | 3.20% |
Volatility, minimum | 40.20% | 39% | 34.60% |
Volatility, maximum | 46.50% | 40.40% | 37.60% |
Expected dividend yield | 0% | 0% | 0% |
Exercise multiple | item | 2.2 | 2.2 | |
Expected term | 10 years | 10 years | 10 years |
Total unrecognized compensation expense | ¥ | ¥ 27,705 | ||
Remaining weighted-average vesting period | 2 years 10 months 6 days | ||
Total fair value at grant date of share options held by the company's employees | ¥ | ¥ 159,957 | ||
Minimum | |||
Share based compensation | |||
Fair value of ordinary share (in RMB) | ¥ / shares | ¥ 42 | ¥ 28.8 | ¥ 11.9 |
Maximum | |||
Share based compensation | |||
Fair value of ordinary share (in RMB) | ¥ / shares | ¥ 62.9 | ¥ 43.6 | ¥ 31.7 |
Share based compensation - su_2
Share based compensation - summary of share-based compensation expenses recognized (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share based compensation | |||
Total | ¥ 96,605 | ¥ 163,978 | ¥ 163,193 |
Hotel operating costs | |||
Share based compensation | |||
Total | 1,286 | 2,111 | |
Selling and marketing expenses | |||
Share based compensation | |||
Total | 391 | 618 | |
General and administrative expenses | |||
Share based compensation | |||
Total | ¥ 162,301 | ¥ 160,464 |
Equity - Ordinary shares (Detai
Equity - Ordinary shares (Details) ¥ in Thousands | 1 Months Ended | ||||
Jan. 31, 2021 CNY (¥) shares | Nov. 30, 2022 $ / shares shares | Feb. 28, 2021 Vote $ / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Equity | |||||
Ordinary shares, Shares authorized | 500,000,000 | 3,000,000,000 | |||
Ordinary shares, Par value per share | $ / shares | $ 0.0001 | ||||
Class A ordinary shares | |||||
Equity | |||||
Ordinary shares, Shares issued | 340,316,306 | 319,677,037 | |||
Ordinary shares, Shares outstanding | 339,104,792 | 319,677,037 | |||
Ordinary shares, Shares authorized | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | ||
Ordinary shares, Par value per share | $ / shares | $ 0.0001 | $ 0.0001 | |||
Ordinary shares, Number of votes per share | Vote | 1 | ||||
Class B ordinary shares | |||||
Equity | |||||
Ordinary shares, Shares issued | 73,680,917 | 73,680,917 | |||
Ordinary shares, Shares outstanding | 73,680,917 | 73,680,917 | |||
Ordinary shares, Shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||
Ordinary shares, Par value per share | $ / shares | $ 0.0001 | $ 0.0001 | |||
Ordinary shares, Number of votes per share | Vote | 10 | ||||
Initial public offering | |||||
Equity | |||||
Number of shares issued | 16,387,500 | ||||
Price per share | $ / shares | $ 3.67 | ||||
Proceeds from issuance of common stock | ¥ | ¥ 365,784 | ||||
Initial public offering | ADS | |||||
Equity | |||||
Number of shares issued | 5,462,500 | ||||
Price per share | $ / shares | $ 11 |
Equity (Details)
Equity (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended |
May 31, 2021 | Dec. 31, 2021 | |
Equity | ||
Cash consideration for share repurchase | ¥ 111,260 | ¥ 111,260 |
Number of shares repurchased | 8,822,664 |
Equity - Distribution to shareh
Equity - Distribution to shareholders (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Sep. 28, 2023 CNY (¥) | Aug. 31, 2023 $ / shares | May 31, 2021 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2021 CNY (¥) | |
Equity | ||||||
Distribution to shareholders | ¥ | ¥ (20,645) | |||||
Cash dividend per share | $ 0.05 | |||||
Payment for dividends | ¥ 150,579 | ¥ 150,579 | $ 21,209 | ¥ 20,645 | ||
ADS | ||||||
Equity | ||||||
Cash dividend per share | $ 0.15 | |||||
Class A ordinary shares | ||||||
Equity | ||||||
Number of underlying shares represented by each ADS | 3 |
Related party transactions - Ma
Related party transactions - Major transactions with related parties (Details) - Trip.com Group - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Hotel reservation payments collected on behalf of the Group | |||
Related party transactions | |||
Amounts of transaction | ¥ 1,441,229 | ¥ 692,771 | ¥ 588,238 |
Hotel reservation service fees | |||
Related party transactions | |||
Amounts of transaction | ¥ 28,686 | ¥ 11,334 | ¥ 21,276 |
Related party transactions - Ba
Related party transactions - Balances with related parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Related party transactions | |||
Amounts due from related parties | ¥ 115,900 | $ 16,324 | ¥ 53,630 |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember |
Amounts due to related parties | ¥ 1,104 | $ 155 | ¥ 3,004 |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember |
Trip.com Group | |||
Related party transactions | |||
Amounts due from related parties | ¥ 115,900 | ¥ 53,630 | |
Other Receivable, after Allowance for Credit Loss, Related Party, Name [Extensible Enumeration] | Trip.com Group | Trip.com Group | Trip.com Group |
Amounts due to related parties | ¥ 1,104 | ¥ 3,004 | |
Other Liability, Current, Related Party, Name [Extensible Enumeration] | Trip.com Group | Trip.com Group | Trip.com Group |
Contingencies - Capital commitm
Contingencies - Capital commitments (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Contingencies | |
Commitments related to leasehold improvements and installation of equipment for hotel operations which is expected to be incurred within one year | ¥ 3,607 |