Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2023 | |
Document and Entity Information | |
Document Type | F-1 |
Entity Registrant Name | Atour Lifestyle Holdings Limited |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Central Index Key | 0001853717 |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Current assets | ||||||||
Cash and cash equivalents | ¥ 1,974,927 | $ 287,572 | ¥ 1,589,161 | $ 230,407 | ¥ 1,011,591 | ¥ 1,038,583 | ¥ 824,546 | |
Short-term investments | 158,374 | 23,061 | 157,808 | 22,880 | ||||
Accounts receivable, net of allowance of RMB14,731 and RMB19,468 as of December 31, 2021 and 2022, respectively | 114,465 | 16,667 | 132,699 | 19,239 | 99,961 | |||
Prepayments and other current assets | 222,112 | 32,342 | 133,901 | 19,414 | 167,161 | |||
Amounts due from related parties | 102,885 | 14,981 | 53,630 | 7,776 | 51,937 | |||
Inventories | 65,079 | 9,476 | 57,460 | 8,331 | 58,575 | |||
Total current assets | 2,637,842 | 384,099 | 2,124,659 | 308,047 | 1,416,217 | |||
Non-current assets | ||||||||
Restricted cash | 946 | 138 | 946 | 137 | 946 | 946 | 8,590 | |
Contract costs | 72,278 | 10,524 | 67,270 | 9,753 | 62,415 | |||
Property and equipment, net | 342,562 | 49,881 | 360,300 | 52,239 | 439,015 | |||
Operating lease right-of-use assets | 1,868,615 | 272,091 | 1,932,000 | 280,114 | ||||
Intangible assets, net | 5,238 | 763 | 5,537 | 803 | 3,820 | |||
Goodwill | 17,446 | 2,540 | 17,446 | 2,529 | 17,446 | |||
Other assets | 147,000 | 21,405 | 141,335 | 20,492 | 182,581 | |||
Deferred tax assets | 107,509 | 15,655 | 112,533 | 16,315 | 122,707 | |||
Total non-current assets | 2,561,594 | 372,997 | 2,637,367 | 382,382 | 828,930 | |||
Total assets | 5,199,436 | 757,096 | 4,762,026 | 690,429 | 2,245,147 | |||
Current liabilities | ||||||||
Operating lease liabilities, current | 321,370 | 46,795 | 319,598 | 46,337 | ||||
Accounts payable | 217,904 | 31,731 | 184,901 | 26,808 | 161,277 | |||
Deferred revenue, current | 228,812 | 33,318 | 202,996 | 29,432 | 233,735 | |||
Salary and welfare payable | 92,770 | 13,508 | 103,539 | 15,012 | 95,238 | |||
Accrued expenses and other payables | 532,373 | 77,520 | 330,282 | 47,886 | 447,380 | |||
Income taxes payable | 61,049 | 8,889 | 31,336 | 4,543 | 46,176 | |||
Short-term borrowings | 181,848 | 26,479 | 142,828 | 20,708 | 64,808 | |||
Current portion of long-term borrowings | 29,130 | 4,242 | 29,130 | 4,223 | 1,000 | |||
Amounts due to related parties | 5,607 | 816 | 3,004 | 436 | 1,772 | |||
Total current liabilities | 1,670,863 | 243,298 | 1,347,614 | 195,385 | 1,051,386 | |||
Non-current liabilities | ||||||||
Operating lease liabilities, non-current | 1,742,358 | 253,707 | 1,805,402 | 261,759 | ||||
Deferred revenue, non-current | 290,302 | 42,271 | 277,841 | 40,283 | 267,909 | |||
Long-term borrowings, non-current portion | 2,000 | 291 | 2,000 | 290 | 43,630 | |||
Other non-current liabilities | 149,963 | 21,836 | 141,763 | 20,554 | 317,607 | |||
Total non-current liabilities | 2,184,623 | 318,105 | 2,227,006 | 322,886 | 629,146 | |||
Total liabilities | 3,855,486 | 561,403 | 3,574,620 | 518,271 | 1,680,532 | |||
Equity | ||||||||
Additional paid in capital | 1,427,769 | 207,899 | 1,286,189 | 186,480 | 764,502 | |||
Accumulated deficit | (61,457) | (8,949) | (78,304) | (11,353) | (176,403) | |||
Accumulated other comprehensive loss | (12,945) | (1,885) | (10,865) | (1,575) | (8,947) | |||
Total equity attributable to shareholders of the Company | 1,353,652 | 197,106 | 1,197,305 | 173,593 | 579,426 | |||
Non-controlling interests | (9,702) | (1,413) | (9,899) | (1,435) | (14,811) | |||
Total shareholders' equity | 1,343,950 | 195,693 | 1,187,406 | 172,158 | ¥ 571,606 | 564,615 | ¥ (315,596) | ¥ (299,757) |
Commitments and contingencies | ||||||||
Total liabilities and shareholders' equity | 5,199,436 | 757,096 | 4,762,026 | 690,429 | 2,245,147 | |||
Class A ordinary shares | ||||||||
Equity | ||||||||
Ordinary shares | 229 | 33 | 229 | 33 | 218 | |||
Class B ordinary shares | ||||||||
Equity | ||||||||
Ordinary shares | ¥ 56 | $ 8 | ¥ 56 | $ 8 | ¥ 56 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Mar. 31, 2023 CNY (¥) shares | Mar. 31, 2023 $ / shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 $ / shares | Feb. 28, 2021 $ / shares shares | Jan. 31, 2021 shares | Dec. 31, 2020 CNY (¥) |
Accounts receivable, allowance | ¥ | ¥ 19,243 | ¥ 19,468 | ¥ 14,731 | ¥ 14,966 | |||||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||||||||
Ordinary shares, shares authorized | 3,000,000,000 | 500,000,000 | |||||||
Class A ordinary shares | |||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares, shares authorized | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | |||||
Ordinary shares, shares issued | 319,677,037 | 319,677,037 | 303,289,537 | ||||||
Ordinary shares, shares outstanding | 319,677,037 | 319,677,037 | 303,289,537 | ||||||
Class B ordinary shares | |||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Ordinary shares, shares issued | 73,680,917 | 73,680,917 | 73,680,917 | ||||||
Ordinary shares, shares outstanding | 73,680,917 | 73,680,917 | 73,680,917 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | ||
Revenues: | ||||||||
Net revenues | ¥ 773,936 | $ 112,694 | ¥ 452,114 | ¥ 2,262,983 | $ 328,102 | ¥ 2,147,577 | ¥ 1,566,552 | |
Operating costs and expenses: | ||||||||
Hotel operating costs | (381,632) | (55,570) | (323,168) | (1,393,312) | (202,011) | (1,419,578) | (1,150,101) | |
Other operating costs | (71,654) | (10,434) | (31,923) | (186,685) | (27,068) | (163,324) | (78,746) | |
Selling and marketing expenses | (56,009) | (8,156) | (23,776) | (139,929) | (20,288) | (124,210) | (70,972) | |
General and administrative expenses | (193,204) | (28,133) | (45,518) | (350,009) | (50,746) | (197,064) | (131,366) | |
Technology and development expenses | (16,790) | (2,445) | (17,808) | (66,182) | (9,594) | (52,121) | (33,649) | |
Pre-opening expenses | ¥ | (17,595) | (61,878) | ||||||
Total operating costs and expenses | (719,289) | (104,738) | (442,193) | (2,136,117) | (309,707) | (1,973,892) | (1,526,712) | |
Other operating income | 7,230 | 1,053 | 3,099 | 38,094 | 5,523 | 22,371 | 23,429 | |
Income from operations | 61,877 | 9,009 | 13,020 | 164,960 | 23,918 | 196,056 | 63,269 | |
Interest income | 4,843 | 705 | 1,917 | 14,456 | 2,097 | 6,722 | 707 | |
Gain from short-term investments | 4,110 | 598 | 1,760 | 8,455 | 1,226 | 8,745 | 11,046 | |
Interest expenses | (1,927) | (281) | (1,490) | (6,501) | (943) | (7,937) | (1,481) | |
Other income (expenses), net | 551 | 80 | (53) | (814) | (118) | 301 | 1,883 | |
Income before income tax | 70,698 | 10,292 | 15,154 | 180,556 | 26,180 | 203,887 | 75,424 | |
Income tax expense | (52,626) | (7,663) | (7,944) | (84,474) | (12,248) | (64,217) | (37,602) | |
Net income | 18,072 | 2,629 | 7,210 | 96,082 | 13,932 | 139,670 | 37,822 | |
Less: net loss attributable to non-controlling interests | 197 | 26 | (614) | (2,017) | (291) | (5,384) | (4,229) | |
Net income attributable to the Company | 17,875 | 2,603 | 7,824 | 98,099 | 14,223 | 145,054 | 42,051 | |
Less: accretion of redeemable Class A ordinary shares | ¥ | [1] | (15,115) | (52,881) | |||||
Net (loss) income available to shareholders of the Company | 98,099 | 14,223 | 129,939 | (10,830) | ||||
Net income | 18,072 | 2,629 | 7,210 | 96,082 | 13,932 | 139,670 | 37,822 | |
Other comprehensive loss | ||||||||
Foreign currency translation adjustments, net of nil income taxes | (2,080) | (303) | (219) | (1,918) | (279) | (8,947) | ||
Other comprehensive loss, net of income taxes | (2,080) | (303) | (219) | (1,918) | (279) | (8,947) | ||
Total comprehensive income | 15,992 | 2,326 | 6,991 | 94,164 | 13,653 | 130,723 | 37,822 | |
Comprehensive loss attributable to non-controlling interests | 197 | 26 | (614) | (2,017) | (291) | (5,384) | (4,229) | |
Comprehensive income attributable to the Company | ¥ 15,795 | $ 2,300 | ¥ 7,605 | ¥ 96,181 | $ 13,944 | ¥ 136,107 | ¥ 42,051 | |
Basic net (loss) income per ordinary share (in RMB) | (per share) | ¥ 0.05 | $ 0.01 | ¥ 0.02 | ¥ 0.26 | $ 0.04 | ¥ 0.40 | ¥ (0.06) | |
Diluted net (loss) income per ordinary share (in RMB) | (per share) | ¥ 0.04 | $ 0.01 | ¥ 0.02 | ¥ 0.26 | $ 0.04 | ¥ 0.40 | ¥ (0.06) | |
Weighted average ordinary share used in calculating net income (loss) per share, Basic | shares | 393,958,225 | 393,958,225 | 376,970,454 | 379,321,522 | 379,321,522 | 323,163,367 | 171,589,918 | |
Weighted average ordinary share used in calculating net income (loss) per share, Diluted | shares | 412,310,616 | 412,310,616 | 376,970,454 | 381,598,689 | 381,598,689 | 323,163,367 | 171,589,918 | |
Manachised hotels | ||||||||
Revenues: | ||||||||
Net revenues | ¥ 446,798 | $ 65,059 | ¥ 273,805 | ¥ 1,360,843 | $ 197,304 | ¥ 1,220,301 | ¥ 926,307 | |
Leased hotels | ||||||||
Revenues: | ||||||||
Net revenues | 187,310 | 27,274 | 111,581 | 552,929 | 80,167 | 630,238 | 496,470 | |
Retail revenues and others | ||||||||
Revenues: | ||||||||
Net revenues | ¥ 139,828 | $ 20,361 | ¥ 66,728 | ¥ 349,211 | $ 50,631 | ¥ 297,038 | ¥ 143,775 | |
[1]Represent Series C shares of Atour Shanghai prior to Restructuring (see Note 12) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||
Foreign currency translation adjustments, income taxes | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands | Total (deficit)/equity attributable to shareholders of the Company CNY (¥) | Ordinary shares Class A ordinary shares with liquidation preference CNY (¥) shares | Ordinary shares Class A ordinary shares CNY (¥) shares | Ordinary shares Class B ordinary shares CNY (¥) shares | Additional paid-in capital CNY (¥) | Accumulated deficit CNY (¥) | Accumulated other comprehensive loss CNY (¥) | Non-controlling interests CNY (¥) | Class A ordinary shares shares | Class B ordinary shares shares | CNY (¥) | USD ($) | ||
Balances at the beginning at Dec. 31, 2019 | ¥ (295,339) | ¥ 43 | ¥ 74 | ¥ 56 | ¥ (295,512) | ¥ (4,418) | ¥ (299,757) | |||||||
Balances at the beginning (in shares) at Dec. 31, 2019 | shares | 60,912,400 | 97,909,001 | 73,680,917 | |||||||||||
CHANGES IN (DEFICIT) EQUITY | ||||||||||||||
Profit (loss) for the period | 42,051 | 42,051 | (4,229) | 37,822 | ||||||||||
Total comprehensive income (loss) | 42,051 | 42,051 | (4,229) | 37,822 | ||||||||||
Acquisition of non-controlling interest | (780) | (780) | ||||||||||||
Accretion to the redemption value of redeemable Class A ordinary shares | (52,881) | (52,881) | (52,881) | [1] | ||||||||||
Balances at the end at Dec. 31, 2020 | (306,169) | ¥ 43 | ¥ 74 | ¥ 56 | (306,342) | (9,427) | (315,596) | |||||||
Balances at the end (in shares) at Dec. 31, 2020 | shares | 60,912,400 | 97,909,001 | 73,680,917 | |||||||||||
CHANGES IN (DEFICIT) EQUITY | ||||||||||||||
Profit (loss) for the period | 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 | 303,289,537 | 73,680,917 | ||||||||||
CHANGES IN (DEFICIT) EQUITY | ||||||||||||||
Profit (loss) for the period | 7,824 | 7,824 | (614) | 7,210 | ||||||||||
Other comprehensive income/loss | (219) | (219) | (219) | |||||||||||
Total comprehensive income (loss) | 7,605 | 7,824 | (219) | (614) | 6,991 | |||||||||
Balances at the end at Mar. 31, 2022 | 587,031 | ¥ 218 | ¥ 56 | 764,502 | (168,579) | (9,166) | (15,425) | 571,606 | ||||||
Balances at the end (in shares) at Mar. 31, 2022 | shares | 303,289,537 | 73,680,917 | ||||||||||||
Balances at the beginning at Dec. 31, 2021 | 579,426 | ¥ 218 | ¥ 56 | 764,502 | (176,403) | (8,947) | (14,811) | 564,615 | ||||||
Balances at the beginning (in shares) at Dec. 31, 2021 | shares | 303,289,537 | 73,680,917 | 303,289,537 | 73,680,917 | ||||||||||
CHANGES IN (DEFICIT) EQUITY | ||||||||||||||
Profit (loss) for the period | 98,099 | 98,099 | (2,017) | 96,082 | $ 13,932 | |||||||||
Other comprehensive income/loss | (1,918) | (1,918) | (1,918) | (279) | ||||||||||
Total comprehensive income (loss) | 96,181 | 98,099 | (1,918) | (2,017) | 94,164 | 13,653 | ||||||||
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 | 1,197,305 | ¥ 229 | ¥ 56 | 1,286,189 | (78,304) | (10,865) | (9,899) | 1,187,406 | 172,158 | |||||
Balances at the end (in shares) at Dec. 31, 2022 | shares | 319,677,037 | 73,680,917 | 319,677,037 | 73,680,917 | ||||||||||
CHANGES IN (DEFICIT) EQUITY | ||||||||||||||
Profit (loss) for the period | 17,875 | 17,875 | 197 | 18,072 | 2,629 | |||||||||
Other comprehensive income/loss | (2,080) | (2,080) | (2,080) | (303) | ||||||||||
Total comprehensive income (loss) | 15,795 | 17,875 | (2,080) | 197 | 15,992 | 2,326 | ||||||||
Share-based compensation | 141,580 | 141,580 | 141,580 | |||||||||||
Balances at the end at Mar. 31, 2023 | ¥ 1,353,652 | ¥ 229 | ¥ 56 | ¥ 1,427,769 | ¥ (61,457) | ¥ (12,945) | ¥ (9,702) | ¥ 1,343,950 | $ 195,693 | |||||
Balances at the end (in shares) at Mar. 31, 2023 | shares | 319,677,037 | 73,680,917 | 319,677,037 | 73,680,917 | ||||||||||
[1]Represent Series C shares of Atour Shanghai prior to Restructuring (see Note 12)[2]Represent Series A shares of Atour Shanghai prior to Restructuring (see Note 12)[3]Represent Series B and C shares of Atour Shanghai prior to Restructuring (see Note 12) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | $ 13,932 | ¥ 96,082 | ¥ 139,670 | ¥ 37,822 |
Adjustments to reconcile net income to net cash generated from operating activities: | ||||
Depreciation and amortization | 12,840 | 88,561 | 93,911 | 84,955 |
Reduction in the carrying amount of ROU assets | 38,897 | 268,280 | ||
Gain from short-term investments | (1,226) | (8,455) | (8,745) | (11,046) |
Net loss on disposal of property and equipment | 293 | 2,022 | 2,015 | |
Net loss on disposal of intangible asset | 199 | |||
Allowance for doubtful accounts | 687 | 4,737 | 2,889 | 3,208 |
Deferred income tax (benefit) expense | 1,475 | 10,174 | (9,396) | (34,331) |
Share-based compensation | 23,661 | 163,193 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (5,433) | (37,475) | 40,416 | (63,087) |
Inventories | 162 | 1,115 | (28,232) | (15,726) |
Amounts due from related parties | (245) | (1,693) | (18,345) | (16,991) |
Contract costs | (704) | (4,855) | (9,805) | (7,950) |
Prepayments and other current assets | 4,822 | 33,260 | (43,466) | (50,535) |
Other assets | 875 | 6,033 | (8,923) | (41,535) |
Accounts payable | 3,423 | 23,624 | 75,514 | 4,843 |
Amounts due to related parties | 179 | 1,232 | (8,225) | 1,335 |
Deferred revenue | (3,017) | (20,807) | 85,779 | 43,398 |
Salary and welfare payable | 1,204 | 8,301 | 9,624 | (1,938) |
Accrued expenses and other payables | (12,898) | (88,963) | 64,935 | 99,913 |
Income taxes payable | (2,153) | (14,840) | (15,333) | 39,579 |
Operating lease liabilities | (39,735) | (274,061) | ||
Other non-current liabilities | 4,090 | 28,212 | 53,397 | 46,756 |
Net cash (used in) generated from operating activities | 41,129 | 283,677 | 417,879 | 118,670 |
Cash flows from investing activities: | ||||
Payment for purchases of property and equipment | (5,281) | (36,425) | (63,973) | (112,750) |
Payment for purchases of intangible assets | (407) | (2,805) | (1,997) | (1,223) |
Payment for purchase of short-term investments | (424,955) | (2,931,000) | (4,303,920) | (3,395,902) |
Proceeds from maturities of short-term investments | 402,773 | 2,778,005 | 4,312,665 | 3,419,348 |
Repayment of loans from third parties | 15,000 | |||
Loans to third parties | (15,000) | |||
Net cash used in investing activities | (27,870) | (192,225) | (42,225) | (105,527) |
Cash flows from financing activities: | ||||
Acquisition of non-controlling interest | (51) | (350) | (780) | |
Proceeds from borrowings | 28,852 | 199,000 | 218,434 | 127,507 |
Repayment of borrowings | (19,498) | (134,480) | (230,430) | (78,716) |
Repurchase of ordinary shares | (111,260) | |||
Distribution to shareholders | (20,645) | |||
Proceeds from initial public offering | 58,005 | 400,068 | ||
Payment for initial public offering costs | (1,149) | (7,928) | (17,179) | |
Net cash generated from financing activities | 66,159 | 456,310 | (161,080) | 48,011 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 408 | 2,816 | (8,181) | |
Net (decrease) increase in cash and cash equivalents and restricted cash | 79,826 | 550,578 | 206,393 | 61,154 |
Cash and cash equivalents and restricted cash at the beginning of the period | 150,718 | 1,039,529 | 833,136 | 771,982 |
Cash and cash equivalents and restricted cash at the end of the period | 230,544 | 1,590,107 | 1,039,529 | 833,136 |
Supplemental disclosure of cash flow information: | ||||
Income tax paid | 12,003 | 82,784 | 88,946 | 38,955 |
Interest paid | 674 | 4,647 | 5,701 | 1,754 |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Payable for purchase of property and equipment | 1,829 | 12,617 | 38,357 | 41,941 |
Interest payable | 454 | 3,130 | 1,276 | 2,414 |
Payable for initial public offering costs | 1,331 | ¥ 9,177 | 6,181 | |
Accretion to the redemption value of redeemable Series A shares | ¥ 15,115 | 52,881 | ||
Supplemental disclosure of cash and cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 230,407 | 824,546 | ||
Restricted cash | 137 | 8,590 | ||
Total cash and cash equivalents, and restricted cash | $ 230,544 | ¥ 833,136 |
Description of the business and
Description of the business and organization | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Description of the business and organization | ||
Description of the business and organization | 1. Description of the business and organization Description of the business Atour Lifestyle Holdings Limited (“Atour LifeStyle” or the “Company”), is a holding company incorporated in the Cayman Islands. The Company conducts its business through its subsidiary, Shanghai Atour Business Management (Group) Co., Ltd. (“Atour Shanghai”), and the subsidiaries of Atour Shanghai (“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 franchisee is required to pay an upfront franchise fee and ongoing franchise and management service fees, the majority of which are determined based on a certain percentage of the revenues of the hotel. The franchisee is 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 March 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 | 1. Description of the business and organization (a) Description of the business Atour Lifestyle Holdings Limited (“Atour Lifestyle” or the “Company”), is a holding company incorporated in the Cayman Islands. The Company conducts its business through its subsidiary, Shanghai Atour Business Management (Group) Co., Ltd. (“Atour Shanghai”), and the subsidiaries of Atour Shanghai (“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 franchisee is required to pay an upfront franchise fee and ongoing franchise and management service fees, the majority of which are determined based on a certain percentage of the revenues of the hotel. The franchisee is 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, 2022, the subsidiaries of the Company 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 to establish an offshore structure to hold the entire equity interest in Atour Shanghai (“Restructuring”). 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 Atour Shanghai and its subsidiaries after the Restructuring. The Restructuring has been 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 statement of Atour Shanghai, and the assets and liabilities are presented at their historical carrying values. The effect of the Restructuring where applicable has been retrospectively reflected in the consolidated financial statements. Certain equity transactions that occurred during the intervening period of the Restructuring as further set out in Note 16(b),16(c), and 16(d) are accounted for separately from the Restructuring as they are not part of the integrated set of activities constituting the Restructuring and serve distinct purposes independent of the Restructuring. |
Significant accounting policies
Significant accounting policies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Significant accounting policies | ||
Significant accounting policies | 2. Significant accounting policies (a) Basis of preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements of the Group. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Group as of and for the year ended December 31, 2022. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of March 31, 2023, the results of operations and cash flows for the three months ended March 31, 2022 and 2023, have been made. The preparation of the unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods. Significant accounting estimates include, but not limited to, estimate of breakage, the fair value of share-based compensation awards, and the recoverability 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 unaudited condensed consolidated financial statements. The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousands except share data and per share data, or otherwise noted. 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 condensed 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 condensed consolidated financial statements. (b) Convenience translation Translations of balances in the unaudited condensed consolidated financial statements from RMB into United States dollars (“USD”) as of and for the three months ended March 31, 2023 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.8676 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 31, 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 March 31, 2023, or at any other rate. (c) Risks and concentration (1) 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. (2) Concentration of credit risk The Group’s credit risk primarily arises from cash and cash equivalents, short-term investments, prepayments and other current assets, accounts receivable and amounts 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. The Group has no significant concentrations of credit risk with respect to its prepayments and other current assets. Accounts receivable are 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. | 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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases Upon the adoption of ASC 842, the Group recognized right-of-use assets and lease liabilities of RMB2,200,280 and RMB2,399,061 respectively, for operating leases of the buildings of the Group’s leased hotels and office spaces based on the present value of lease payments over the lease term. The following table summarizes the effect on the consolidated balance sheet as a result of adopting ASC 842. As of Effect of As of December 31, 2021 adoption January 1, 2022 RMB ‘000 RMB ‘000 RMB’000 Assets Current assets Cash and cash equivalents 1,038,583 — 1,038,583 Short-term investments — — — Accounts receivable, net of allowance of RMB 14,731 as of December 31, 2021 99,961 — 99,961 Prepayments and other current assets 167,161 — 167,161 Amounts due from related parties 51,937 — 51,937 Inventories 58,575 — 58,575 Total current assets 1,416,217 — 1,416,217 Non-current assets Restricted cash 946 — 946 Contract costs 62,415 — 62,415 Property and equipment, net 439,015 — 439,015 Operating lease right-of-use assets — 2,200,280 (a) 2,200,280 Intangible assets, net 3,820 — 3,820 Goodwill 17,446 — 17,446 Other assets 182,581 (11,758) (b) 170,823 Deferred tax assets 122,707 — 122,707 Total non-current assets 828,930 2,188,522 3,017,452 Total assets 2,245,147 2,188,522 4,433,669 As of Effect of As of December 31, 2021 adoption January 1, 2022 RMB ‘000 RMB ‘000 RMB’000 Current liabilities Operating lease liabilities, current — 317,483 (c) 317,483 Accounts payable 161,277 — 161,277 Deferred revenue 233,735 — 233,735 Salary and welfare payable 95,238 — 95,238 Accrued expenses and other payables 447,380 (6,483) (d) 440,897 Income taxes payable 46,176 — 46,176 Short-term borrowings 64,808 — 64,808 Current portion of long-term borrowings 1,000 — 1,000 Other amounts due to related parties 1,772 — 1,772 Total current liabilities 1,051,386 311,000 1,362,386 Non-current liabilities Operating lease liabilities, non-current — 2,081,578 (c) 2,081,578 Deferred revenue 267,909 — 267,909 Long-term borrowings, non-current portion 43,630 — 43,630 Other non-current liabilities 317,607 (204,056) (d) 113,551 Total non-current liabilities 629,146 1,877,522 2,506,668 Total liabilities 1,680,532 2,188,522 3,869,054 Equity Class A ordinary shares 218 — 218 Class B ordinary shares 56 — 56 Additional paid in capital 764,502 — 764,502 Accumulated deficit (176,403) — (176,403) Accumulated other comprehensive loss (8,947) — (8,947) Total equity attributable to shareholders of the Company 579,426 — 579,426 Non-controlling interests (14,811) — (14,811) Total equity 564,615 — 564,615 Commitments and contingencies — — — Total liabilities and shareholders’ equity 2,245,147 2,188,522 4,433,669 (a) Represents the net result of capitalization of operating lease payments and reclassification of deferred rental initial direct cost and deferred rent accrual. (b) Represents deferred rental initial direct cost reclassified to operating lease right-of-use assets. (c) Represents recognition of the current portion and non-current portion of operating lease liabilities. (d) Represents reclassification of the current portion and non-current portion of deferred rent accrual to operating lease right-of-use assets. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. 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, versus determining an implied fair value in Step two to measure the impairment loss. The guidance is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2019. For all other entities it is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Group early adopted the new standard on January 1, 2022, and the adoption did not have a material impact on its consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). It requires issuers to make annual disclosures about government assistance, including the nature of the transaction, the related accounting policy, the financial statement line items affected and the amounts applicable to each financial statement line item, as well as any significant terms and conditions, including commitments and contingencies. The amendments in ASU 2021-10 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Group adopted this new standard on January 1, 2022, using the retrospective approach. See Note 2(w) for related disclosure. (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. Significant items subject to such estimates and assumptions include, but are not limited to, estimate of breakage, the fair value of share-based compensation awards, and the recoverability 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, 2022 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.8972 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 30, 2022. 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, 2022, 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 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 (expense) 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 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, 2021 2022 RMB ‘000 RMB ‘000 Financial institutions in the mainland PRC – Denominated in RMB 965,855 1,290,408 – Denominated in USD 3,270 3,541 Total cash balances held at mainland PRC financial institutions 969,125 1,293,949 Hong Kong – Denominated in RMB 9,859 9,884 – Denominated in USD 5,554 5,990 Total cash balances held at the Hong Kong financial institutions 15,413 15,874 Cayman Islands – Denominated in RMB 272 273 – Denominated in USD 53,773 279,065 Total cash balances held at the Cayman Islands financial institutions 54,045 279,338 Total cash and cash equivalents balances held at financial institutions 1,038,583 1,589,161 (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 were 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 agents, hotel guests and credit card receivables, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the aging of the receivables and factors surrounding the credit risk of specific franchisees and other customers. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2021 and 2022, 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, 2021 and 2022 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, 2020, 2021 and 2022 were RMB7,556, RMB7,870 and RMB9,832, 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 inventory is determined using the specific identification method. (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 expenses as reported in the consolidated statements of comprehensive income for the years ended December 31, 2020, 2021 and 2022 is as follows: Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Total interest expenses 6,130 9,469 6,501 Less: interest expenses capitalized (4,649) (1,532) — Interest expenses 1,481 7,937 6,501 (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 5 years (o) Leases The Company 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. 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, 2021 and 2022, 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 were 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. 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. No impairment losses were recorded for the years ended December 31, 2020, 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 each 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, 2020, 2021 and 2022. (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% to 15% deduction from April 1, 2019 to December 31, 2022. For the years ended December 31, 2020, 2021 and 2022, the Group recognized RMB5,766, RMB12,864 and RMB12,035 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, 2021 2022 RMB ‘000 RMB ‘000 Balance at the beginning of the year 3,429 3,597 Accretion expense 168 176 Balance at the end of the year 3,597 3,773 (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. (1) 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. information 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. ● 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 and hotel managers fees; and iii) fees for purchase of hotel supplies and other products. The transaction prices are allocated to the performance obligations based on the estimated standalone selling prices of each components. Upfront franchise fees are typically fixed and collected upfront and recognized as revenue on 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. 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. In certain cases, the Group also 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 — other transactions with the franchisees in the consolidated statements of comprehensive income. (2) 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. (3) 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 collected 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 — other transactions with the franchisees 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 — other transactions with the franchisees 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 contra |
Prepayments and other assets
Prepayments and other assets | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Prepayments and other assets | ||
Prepayments and other assets | 3. Prepayments and other assets Prepayments and other current assets consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Prepaid rental and property management fees 5,467 6,625 Prepayment for purchase of goods and service 5,990 7,978 VAT recoverable 23,183 19,912 Receivables on behalf of manachised hotels (i) 81,473 157,964 Contract assets (Note 11(b)) 8,741 9,227 Deposits 2,165 2,185 Others 10,006 21,345 Subtotal 137,025 225,236 Less: allowance for doubtful accounts (3,124) (3,124) Total 133,901 222,112 (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 As of December 31, March 31, 2022 2023 RMB RMB At the beginning of the year/period 3,124 3,124 Allowance made/reversed during the year/period — — At the end of the year/period 3,124 3,124 Other assets consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Long-term rental deposits 75,954 76,248 Contract assets (Note 11(b)) 58,288 56,263 VAT recoverable 6,744 2,069 Prepayments for purchase of property and equipment 349 12,420 Total 141,335 147,000 | 3. Prepayments and other assets Prepayments and other current assets consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Prepaid rental and property management fees 12,112 5,467 Prepayment for purchase of goods and services 12,247 5,990 VAT recoverable 25,425 23,183 Receivables on behalf of manachised hotels (i) 103,495 81,473 Contract assets (Note 13(b)) 7,171 8,741 Deposits 2,904 2,165 Others 6,931 10,006 Subtotal 170,285 137,025 Less: allowance for doubtful accounts (3,124) (3,124) Total 167,161 133,901 (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, 2021 2022 RMB ‘000 RMB ‘000 At the beginning of the year 3,441 3,124 Allowance made during the year 3,124 — Allowance write-off during the year (3,441) — At the end of the year 3,124 3,124 Other assets consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Long-term rental deposits 75,604 75,954 Contract assets (Note 13(b)) 62,615 58,288 VAT recoverable 8,800 6,744 Prepayments for purchase of property and equipment 444 349 Deferred rental initial direct costs 11,758 — Deferred initial public offering related costs 23,360 — Total 182,581 141,335 |
Property and equipment, net
Property and equipment, net | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property and equipment, net | ||
Property and equipment, net | 4. Property and equipment, net Property and equipment, net consists of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Cost: Leasehold improvements 443,695 441,663 Equipment, fixture and furniture, and other fixed assets 420,004 425,674 Total cost 863,699 867,337 Less: accumulated depreciation (503,399) (524,775) Property and equipment, net 360,300 342,562 Depreciation expense recognized for the three months ended March 31, 2022 and 2023 was RMB18,761 and RMB21,598 respectively. | 4. Property and equipment, net Property and equipment, net consists of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Cost: Leasehold improvements 452,030 443,695 Equipment, fixture and furniture, and other fixed assets 407,259 420,004 Total cost 859,289 863,699 Less: accumulated depreciation (420,274) (503,399) Property and equipment, net 439,015 360,300 Depreciation expense recognized for the years ended December 31, 2020, 2021 and 2022 was RMB84,003, RMB92,609 and RMB87,473 respectively. |
Intangible assets, net
Intangible assets, net | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Intangible assets, net | ||
Intangible assets, net | 5. Intangible assets, net Intangible assets, net, consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Purchased software 11,055 11,055 Total cost 11,055 11,055 Less: accumulated amortization (5,518) (5,817) Intangible assets, net 5,537 5,238 Amortization expense recognized for the three months ended March 31, 2022 and 2023 was RMB281 and RMB299 respectively. Estimated amortization expense of the existing intangible assets is as follows: RMB Nine months ending December 31, 2023 918 2024 1,064 2025 1,048 2026 776 2027 623 Thereafter 809 Total 5,238 | 5. Intangible assets, net Intangible assets, net, consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Purchased software 8,250 11,055 Total cost 8,250 11,055 Less: accumulated amortization (4,430) (5,518) Intangible assets, net 3,820 5,537 Amortization expense recognized for the years ended December 31, 2020, 2021 and 2022 was RMB952, RMB1,302 and RMB1,088 respectively. Estimated amortization expense of the existing intangible assets is as follows: RMB’000 For the year ending December 31, 2023 1,978 2024 1,419 2025 1,173 2026 616 2027 351 Total 5,537 |
Lease
Lease | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Lease | ||
Lease. | 6. Lease As of March 31, 2023, the Group operated 33 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 retail revenues and others, within the condensed consolidated statements of comprehensive income. Supplemental Balance Sheet As of As of December 31, 2022 March 31, 2023 RMB RMB Assets Operating lease right-of-use assets 1,932,000 1,868,615 Liabilities Current Operating lease liabilities 319,598 321,370 Non-current Operating lease liabilities 1,805,402 1,742,358 Total lease liabilities 2,125,000 2,063,728 Summary of Lease Cost For the three months ended March 31, 2022 2023 Account Classification RMB RMB Operating lease cost 91,895 91,599 Hotel operating costs, Other operating costs Variable lease cost (a) (247) (4,743) Hotel operating costs, Other operating costs Sublease income (3,065) (3,188) Retail revenues and others Total lease cost 88,583 83,668 (a) The Group was granted RMB2,480 and RMB5,940 in lease concessions from landlords related to the effects of the COVID-19 pandemic during the three months ended March 31, 2022 and 2023, respectively. The lease concessions were primarily in the form of rent reduction over the period during which the Group’s hotel business was adversely impacted. The Group applied the interpretive guidance in a FASB staff Q&A document issued in April 2020 and elected: (1) not to evaluate whether a concession received in response to the COVID-19 pandemic is a lease modification and (2) to assume such concession was contemplated as part of the existing lease contract with no contract modification. Such concession was recognized as negative variable lease cost in the period the concession was granted. Supplemental Cash Flow Information For the three months ended March 31, 2022 2023 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 81,495 86,435 As of As of December 31, 2022 March 31, 2023 Lease term and Discount Rate Weighted-average remaining lease term (years) Operating leases 7.82 7.67 Weighted-average discount rate Operating leases 4.39 % 4.39 % Summary of Future Lease Payments and Lease Liabilities Maturities of operating lease liabilities as of March 31, 2023 were as follows: Total RMB Nine months ending December 31, 2023 317,585 2024 341,436 2025 304,783 2026 284,021 2027 280,851 Thereafter 898,901 Total undiscounted lease payment 2,427,577 Less: imputed interest (a) (363,849) Present value of lease liabilities 2,063,728 (a) As the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate on January 1, 2022 was used for operating leases that commenced prior to that date . | 6. Lease As of December 31, 2022, the Group operated 33 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. Prior to the adoption of ASC 842 on January 1, 2022, operating leases were not recognized on the balance sheet of the Group, but rent expenses were recognized on a straight-line basis over the lease term. Upon adoption, 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 retail revenues and others, within the consolidated statements of comprehensive income. The impact of ASC 842 on the Group’s accounting as a lessor was not significant. Supplemental Balance Sheet As of December 31, 2022 RMB’000 Assets Operating lease right-of-use assets 1,932,000 Liabilities Current Operating lease liabilities 319,598 Non-current Operating lease liabilities 1,805,402 Total lease liabilities 2,125,000 Summary of Lease Cost Years ended December 31, 2022 Account Classification RMB ‘000 Operating lease cost 362,689 Hotel operating costs, Other operating costs, General and administrative expenses Variable lease cost (a) (20,684) Hotel operating costs, Other operating costs Sublease income (9,019) Retail revenues and others Total lease cost 332,986 (a) The Group was granted RMB27,122 in lease concessions from landlords related to the effects of the COVID-19 pandemic in 2022. The lease concessions were primarily in the form of rent reduction over the period during which the Group’s hotel business was adversely impacted. The Group applied the interpretive guidance in a FASB staff Q&A document issued in April 2020 and elected: (1) not to evaluate whether a concession received in response to the COVID-19 pandemic is a lease modification and (2) to assume such concession was contemplated as part of the existing lease contract with no contract modification. Such concession was recognized as negative variable lease cost in the period the concession was granted. (b) The total lease cost in 2020 and 2021 were RMB358,853 and RMB366,763, respectively, which included RMB12,668 and RMB646 of lease concessions from landlords related to the effects of the COVID-19 pandemic. Supplemental Cash Flow Information Years ended December 31, 2022 RMB ‘000 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 341,348 As of December 31, 2022 Lease term and Discount Rate Weighted-average remaining lease term (years) Operating leases 7.82 Weighted-average discount rate Operating leases 4.39 % Summary of Future Lease Payments and Lease Liabilities Maturities of operating lease liabilities as of December 31, 2022 were as follows: RMB ‘000 2023 404,020 2024 341,576 2025 304,923 2026 284,170 Thereafter 1,175,366 Total undiscounted lease payment 2,510,055 Less: imputed interest (a) (385,055) Present value of lease liabilities 2,125,000 (a) As the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate on January 1, 2022 was used for operating leases that commenced prior to that date . |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill. | |
Goodwill | 7. Goodwill There is no change in the carrying amount of goodwill for the years ended December 31, 2020, 2021 and 2022. 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, 2020, 2021 and 2022. |
Income tax
Income tax | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Income tax | ||
Income tax | 7. Income tax The income tax expense for the three months ended March 31, 2022 and 2023 was RMB7,944 and RMB52,626, respectively. The Company’s effective tax rates for the three months ended March 31, 2022 and 2023 was 52.4% and 74.4%, respectively. The income tax expense for the three months ended March 31, 2023 reported in the condensed consolidated statements of comprehensive (loss) income differ from the amount computed by applying the PRC statutory income tax rate to (loss) income before income taxes, which is primarily due to non-deductible share-based compensation expenses. The income tax expense for the three months ended March 31, 2022 reported in the condensed consolidated statements of comprehensive (loss) income differ from the amount computed by applying the PRC statutory income tax rate to (loss) income before income taxes, which is primarily due to the valuation allowance provided for the deferred tax assets of certain PRC subsidiaries, which were in cumulative loss positions. | 8. 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. Payments of dividends by the Hong Kong subsidiary to the Company is not subject to any Hong Kong withholding tax. 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. 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, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Current income tax expense 71,933 73,613 74,300 Deferred income tax (benefit) expense (34,331) (9,396) 10,174 Total 37,602 64,217 84,474 The actual income tax expenses reported in the consolidated statements of comprehensive income for the years ended December 31, 2020, 2021 and 2022 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, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Income before income taxes 75,424 203,887 180,556 Computed expected tax expense 18,856 50,972 45,139 Increase (decrease) in income taxes resulting from: Non-deductible expenses 1,952 2,721 1,619 Additional deduction for research and development expenses (1,629) (9,922) (8,714) Share-based compensation — — 40,798 Tax loss expiration — — 2,800 Change in valuation allowance 17,905 19,066 1,085 Others 518 1,380 1,747 Total 37,602 64,217 84,474 (b) Deferred taxes The tax effects of temporary differences that give rise to the deferred tax assets (liabilities) balances as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deferred tax assets (liabilities) Tax losses carried forward 81,376 77,103 Allowance for doubtful accounts 5,339 6,523 Accrued payroll and other expenses 7,972 8,783 Deferred revenue 73,473 74,816 Contract costs (15,604) (16,818) Deferred rent 6,117 — Deferred rental initial direct costs (2,939) — Operating lease liabilities — 486,083 Operating lease right-of-use assets — (483,000) Property and equipment 41,438 33,280 Others 1,890 3,203 Total gross deferred tax assets 199,062 189,973 Valuation allowance on deferred tax assets (76,355) (77,440) Deferred tax assets, net of valuation allowance 122,707 112,533 Reported in consolidated balance sheets as: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deferred tax assets 122,707 112,533 Deferred tax liabilities — — Net deferred tax assets 122,707 112,533 The Company has not recognized any deferred tax liability for the undistributed earnings of the PRC-resident enterprise as of December 31 2021 and 2022, as the Company plans to permanently reinvest these earnings in the PRC. Each of the PRC subsidiaries does not have a plan to pay dividends in the foreseeable future and intends to retain any future earnings for use in the operation and expansion of its business in the PRC. As of December 31,2022, the total amount of undistributed earnings from the PRC subsidiaries for which no withholding tax has been accrued was RMB831,088. The unrecognized deferred tax liability would be RMB83,109 subject to the foreign withholding tax rate of 10%. The movement of the valuation allowance is as follows: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Balance at the beginning of the year 57,289 76,355 Addition during the year 19,066 3,885 Reduction as a result of expiry of tax losses carried forward — (2,800) Balance at the end of the year 76,355 77,440 The valuation allowance as of December 31, 2021 and 2022 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 tax losses carry forward of the Group’s PRC subsidiaries amounted to RMB308,412 as of December 31, 2022, of which RMB16,592, RMB39,288, RMB98,814 and RMB90,624, RMB63,094 will expire if unused by December 31, 2023, 2024, 2025, 2026 and 2027 respectively. |
Accrued expenses and other paya
Accrued expenses and other payables | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accrued expenses and other payables | ||
Accrued expenses and other payables | 8. Accrued expenses and other payables Accrued expenses and other payables consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Deposits 53,203 55,793 Payments received on behalf of manachised hotels (i) 199,395 410,444 VAT and other taxes payable 19,871 26,569 Payable for purchase of property and equipment 12,617 8,092 Others 45,196 31,475 Total 330,282 532,373 (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. | 9. Accrued expenses and other payables Accrued expenses and other payables consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deposits 46,961 53,203 Payments received on behalf of manachised hotels (i) 287,516 199,395 Deferred rent 6,483 — VAT and other taxes payable 22,120 19,871 Payable for purchase of property and equipment 38,357 12,617 Others 45,943 45,196 Total 447,380 330,282 (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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Borrowings | ||
Borrowings | 9. Borrowings Borrowings consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Short-term borrowings: Bank loans (i) 141,000 181,000 Loan from third parties 1,828 848 Total 142,828 181,848 Current portion of long-term borrowings: Bank loans (i) 29,130 29,130 Total 29,130 29,130 Long-term borrowings, non-current portion: Loan from third parties 2,000 2,000 Total 2,000 2,000 (i) As of March 31, 2023, the Group had several credit facilities with third party banks under which the Group can borrow up to RMB 400,000 during the term of the facilities mature from June 2023 to September 2023. The drawdown of the credit facilities is subject to the terms and conditions of each agreement. Certain credit facilities also require the Group to comply with various covenants and other restrictions, including but not limited to the sum of interest-bearing borrowings and bills payable (if applicable) lower than RMB 300,000 if the Company’s annual revenues are less than RMB 2,500,000 . As of March 31, 2023, the unutilized credit facilities amounted to RMB 278,870 and the Group was in compliance with the financial covenants. The weighted average interest rates of short-term borrowings and long-term borrowings as of March 31, 2023 were 3.6% (December 31, 2022: 3.7%) and 4.9% (December 31, 2022: 4.9%) per annum, respectively. The aggregate maturities of the above long-term borrowings for each for the five years and thereafter subsequent to March 31, 2023 are as follows: Nine months ending March 31, 2023 29,130 2024 — 2025 500 2026 200 2027 and thereafter 1,300 Total 31,130 | 10. Borrowings Borrowings consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Short-term borrowings: Bank loans (i) 62,000 141,000 Loan from third parties 2,808 1,828 Total 64,808 142,828 Current portion of long-term borrowings: Bank loans (i) 1,000 29,130 Total 1,000 29,130 Long-term borrowings, non-current portion: Bank loans (i) 41,630 — Loan from third parties 2,000 2,000 Total 43,630 2,000 (i) As of December 31, 2022, the Group had several credit facilities with third party banks under which the Group can borrow up to RMB 400,000 during the term of the facilities mature from June 2023 to September 2023. The drawdown of the credit facilities is subject to the terms and conditions of each agreement. Certain credit facilities also require the Group to comply with various covenants and other restrictions, including but not limited to the sum of interest bearing borrowings and bills payable (if applicable) lower than RMB 300,000 if the Company’s revenues are less than RMB 2,500,000 . As of December 31, 2022, the unutilized credit facilities was RMB 279 million and the Group was in compliance with the financial covenants. The weighted average interest rates of short-term borrowings and long-term borrowings as of December 31, 2022 were 3.7% (December 31, 2021: 4.1%) and 4.9% (December 31, 2021: 4.6%) per annum, respectively. The aggregate maturities of the above long-term borrowings for each for the five years and thereafter subsequent to December 31, 2022 are as follows: RMB ‘000 For the year ending December 31, 2023 29,130 2024 — 2025 500 2026 200 2027 and thereafter 1,300 Total 31,130 |
Other non-current liabilities
Other non-current liabilities | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Other non-current liabilities | ||
Other non-current liabilities | 10. Other non-current liabilities Other non-current liabilities consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Deposits received from franchisees 129,101 137,326 Asset retirement obligations 3,773 3,820 Others 8,889 8,817 Total 141,763 149,963 | 11. Other non-current liabilities Other non-current liabilities consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deposits received from franchisees 107,034 129,101 Deferred rent 204,056 — Asset retirement obligations (Note 2(t)) 3,597 3,773 Others 2,920 8,889 Total 317,607 141,763 |
Ordinary shares with preference
Ordinary shares with preference rights | 12 Months Ended |
Dec. 31, 2022 | |
Ordinary shares with preference rights | |
Ordinary shares with preference rights | 12. 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 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 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 Company 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. As of December 31, 2020, the Company concluded that it was probable that the Series C Shares would become redeemable, and it was not probable that the Series B Shares would become redeemable. 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 has 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 years ended December 31, 2020 and 2021 consist of the following: As of December 31, 2020 2021 RMB ‘000 RMB ‘000 Balance at the beginning of the year 661,012 713,893 Accretion to the redemption value 52,881 15,115 Reclassification of redeemable Class A ordinary shares to Class A ordinary shares — (729,008) Balance at the end of the year 713,893 — |
Revenue
Revenue | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||
Revenue | 11. Revenue (a) Disaggregation of revenue For the three months ended March 31, 2022 2023 RMB RMB Upfront franchise fees 8,036 10,693 Continuing franchise fees 151,726 278,429 Sales of hotel supplies and other products 102,267 140,679 Other transactions with the franchisees 11,776 16,997 Manachised hotels revenues 273,805 446,798 Room revenues 100,788 173,754 Food and beverage revenues 9,580 12,263 Others 1,213 1,293 Leased hotels revenues 111,581 187,310 Retail revenues 41,175 112,933 Others 25,553 26,895 Total 452,114 773,936 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 As of December 31, March 31, 2022 2023 RMB RMB Accounts receivable 152,167 133,708 Less: allowance for doubtful accounts (19,468) (19,243) Accounts receivable, net 132,699 114,465 Changes in the allowance for doubtful accounts is as follows: As of As of December 31, March 31, 2022 2023 RMB RMB At the beginning of the year/period 14,731 19,468 Cumulative effect of the adoption of ASU 2016-13 — 1,371 Allowance made (reversed) during the year/period 4,737 (1,596) At the end of the year/period 19,468 19,243 ii) The following table provides information about contracts assets: As of As of December 31, March 31, 2022 2023 RMB RMB Current 8,741 9,227 Non-current 58,288 56,263 Contract assets 67,029 65,490 The contract assets as of December 31, 2022 and March 31, 2023 were related to the Group’s right to consideration for hotel renovation services provided to franchisees to convert their buildings suitable for hotel use. The fees for the renovation services are billed and collected by the Group on monthly basis. iii) The following provides information about deferred revenue from contracts with customers. As of As of December 31, March 31, 2022 2023 RMB RMB Current 202,996 228,812 Non-current 277,841 290,302 Contract liabilities 480,837 519,114 The deferred revenue balances above as of December 31, 2022 and March 31, 2023 were comprised of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Upfront franchise fees 319,537 333,905 Advances from sales of hotel supplies and other products 92,144 106,087 Loyalty program 36,877 33,346 Others 32,279 45,776 Deferred revenue 480,837 519,114 The Company recognized revenues of RMB66,751 and RMB64,502 during the three months ended March 31, 2022 and 2023, which were included in deferred revenue balance at the beginning of each period. (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 March 31, 2023, the Group had RMB319,537 and RMB333,905 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. (d) Contract costs Contract costs capitalized as of December 31, 2022 and March 31, 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 condensed consolidated statements of comprehensive income for the three months ended March 31, 2022 and 2023 were RMB2,800 and RMB2,322, respectively. | 13. Revenue (a) Disaggregation of revenue Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Upfront franchise fees 29,841 32,356 38,066 Continuing franchise fees 351,933 554,227 757,158 Sales of hotel supplies and other products 421,217 514,557 516,865 Other transactions with the franchisees 123,316 119,161 48,754 Manachised hotels revenues 926,307 1,220,301 1,360,843 Room revenues 457,173 579,946 505,557 Food and beverage revenues 36,244 43,641 43,313 Others 3,053 6,651 4,059 Leased hotels revenues 496,470 630,238 552,929 Retail revenues 70,877 191,596 253,607 Others 72,898 105,442 95,604 Total 1,566,552 2,147,577 2,262,983 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, 2021 2022 RMB ‘000 RMB ‘000 Accounts receivable 114,692 152,167 Less: Allowance for doubtful accounts (14,731) (19,468) Accounts receivable, net 99,961 132,699 Changes in the allowance for doubtful accounts is as follows: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 At the beginning of the year 14,966 14,731 Allowance (reversed) made during the year (235) 4,737 At the end of the year 14,731 19,468 ii) The following table provides information about contracts assets: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Current 7,171 8,741 Non-current 62,615 58,288 Contract assets 69,786 67,029 The contract assets as of December 31, 2021 and 2022 were related to the Group’s right to consideration for hotel renovation services provided to franchisees to convert their buildings suitable for hotel use. The fees for the renovation services are billed and collected by the Group on monthly basis. iii) The following provides information about deferred revenue from contracts with customers. As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Current 233,735 202,996 Non-current 267,909 277,841 Contract liabilities 501,644 480,837 The deferred revenue balances above as of December 31, 2021 and 2022 were comprised of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Upfront franchise fees 303,216 319,537 Advances from sales of hotel supplies and other products 111,633 92,144 Loyalty program 48,691 36,877 Others 38,104 32,279 Deferred revenue 501,644 480,837 The Group recognized revenues of RMB143,570, RMB160,633 and RMB170,768 during the years ended December 31, 2020, 2021 and 2022, which were included in deferred revenue as of January 1, 2020, 2021 and 2022, respectively. (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, 2021 and 2022, the Group had RMB303,216 and RMB319,537 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 (loss) income per ordinary
Net (loss) income per ordinary share | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Net income per ordinary share | ||
Net (loss) income per ordinary share | 12. Net income per ordinary share Basic and diluted net income per ordinary share for the three months ended March 31, 2022 and 2023 are calculated as follow: For the three months ended March 31, 2022 2023 RMB RMB Numerator: Net income attributable to the Company 7,824 17,875 Denominator: Weighted average number of ordinary shares (for basic calculation) 376,970,454 393,958,225 Effect of dilutive share-based awards. — (i) 18,352,391 (ii) Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation). 376,970,454 412,310,616 Basic net income per ordinary share (in RMB) 0.02 0.05 Diluted net income per ordinary share (in RMB) 0.02 0.04 (i) For the three months ended March 31, 2022, 17,740,297 share options were excluded from the calculation of diluted net income per ordinary share as their vesting is contingent upon the satisfaction of a performance condition (i.e. completion of a Qualified IPO), which is not considered probable until the event occurs. (ii) For the three months ended March 31, 2023, 16,637 share options were excluded from the calculation of diluted net income per ordinary share as their effects would have been anti-dilutive. | 14. Net (loss) income per ordinary share Basic and diluted net (loss) income per ordinary share for the years ended December 31, 2020, 2021 and 2022 are calculated as follow: Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Numerator: Net income attributable to the Company 42,051 145,054 98,099 Accretion to the redemption value of redeemable Class A ordinary shares (i) (52,881) (15,115) — Net (loss) income available to ordinary shares (10,830) 129,939 98,099 Denominator: Weighted average number of ordinary shares (for basic calculation) 171,589,918 323,163,367 (iii) 379,321,522 Effect of dilutive share-based awards (iv) — — 2,277,167 Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation) 171,589,918 (ii) 323,163,367 381,598,689 Basic net (loss) income per ordinary share (in RMB) (0.06) 0.40 0.26 Diluted net (loss) income per ordinary share (in RMB) (0.06) 0.40 0.26 (i) Represent the accretion to the redemption value of Series C shares of Atour Shanghai prior to the termination of the preference rights of certain shareholders on April 8, 2021 (see Note 12). (ii) For the year ended December 31, 2020, Series A, B and C shares of Atour Shanghai prior to Restructuring were excluded from the calculation of diluted income per ordinary share as their inclusion would have been anti-dilutive. (iii) For the year ended December 31, 2021, 214,203,200 ordinary shares were included in the denominator in the calculation of basic income per ordinary share to give the effect of the termination of preference rights on April 8, 2021. (iv) For the years ended December 31, 2020 and 2021, 11,663,920 and 17,740,297 share options were excluded from the calculation of diluted net income per ordinary share, respectively, as their vesting is contingent upon the satisfaction of a performance condition (i.e. completion of a Qualified IPO), which is not considered probable until the event occurs. For the year ended December 31, 2022, 660,000 share options were excluded from the calculation of diluted net income per ordinary share as their effects would have been anti-dilutive. |
Share based compensation
Share based compensation | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Share based compensation | ||
Share based compensation | 13. 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 three months ended March 31, 2023 is presented below: Weighted average Aggregate Number of exercise Weighted remaining intrinsic share options price per share contractual years value RMB RMB Outstanding at January 1, 2023 21,444,931 5.78 8.35 764,494 Grant 4,033,274 Forfeiture (1,000) Outstanding at March 31, 2023 25,477,205 8.11 8.54 1,321,995 Exercisable as of March 31, 2023 23,912,776 8.06 8.56 1,241,983 The weighted average grant date fair value of the share options for the three months ended March 31, 2023 was RMB34.61. There was no share option granted for the three months ended March 31, 2022. 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. For the three months ended March 31, 2023 Risk-free rate of return (1) 3.8 % Volatility (2) 40.2% – 40.4 % Expected dividend yield (3) 0 % Fair value of ordinary share (in RMB) (4) 42.0 – 54.0 Exercise Multiple (5) 2.2 – 2.8 Expected term (6) 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) The fair value of the underlying ordinary share is the closing price of the Company’s ordinary shares traded in the open market as of the grant date. (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 voluntarily 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 contract life of the option from grant date. For the three months ended March 31, 2022, 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. For the three months ended March 31, 2023, the Group recognized RMB141,580 share-based 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 three months ended March 31, 2023 is presented below: For the three months ended March 31, 2023 RMB Hotel operating costs 124 Selling and marketing expenses 38 General and administrative expenses 141,418 Total 141,580 | 15. 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. The replacement of the unvested share options in April 2021 was accounted for as modifications of share-based compensation. The Company evaluated the fair value of share options immediately before and after the modification and there was no incremental share-based compensation expense as a result of the modification. 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 year ended December 31, 2022 is presented below: Weighted Aggregate Number of average Weighted remaining intrinsic share options exercise price contractual years value (RMB) (RMB’000) Outstanding at January 1, 2022 17,740,297 5.06 9.24 473,237 Grant – Prior to IPO 640,095 10.33 — — – Post IPO 3,628,971 8.41 — — Forfeiture (564,432) 5.35 — — Outstanding at December 31, 2022 21,444,931 5.78 8.35 764,494 Exercisable as of December 31, 2022 19,681,140 5.52 8.56 706,750 The weighted average grant date fair value of the share options granted during the years ended December 31, 2020, 2021 and 2022 was RMB6.02, RMB11.93 and RMB22.32, respectively. As of December 31, 2022, RMB29,131 of unrecognized compensation expense related to unvested share options is expected to be recognized over a remaining weighted-average vesting period of approximately 3.09 years. The total fair value at grant date of share options held by the Company’s employees that vested during 2022 was RMB158,183. 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. 2020 2021 2022 Risk-free rate of return (1) 2.90% ~ 3.10 % 1.70% ~ 3.20 % 3.10% ~ 4.00 % Volatility (2) 34.30% ~ 34.40 % 34.61% ~ 37.64 % 38.98% ~ 40.44 % Expected dividend yield (3) 0 % 0 % 0 % Fair value of ordinary share (in RMB) (4) 10.54 ~ 10.93 11.93 ~ 31.74 28.80 ~ 43.56 Exercise multiple (5) 2.2 2.2 2.2 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 the estimation of future cash flows, and the application of an appropriate discount rate with reference to comparable listed companies engaged in the similar industry to convert such future cash flows to a single present value. After the Company’s IPO, the fair value of the underlying ordinary share is the closing price of the Company’s ordinary shares traded in the open market as of the grant date. (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 voluntarily 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 contract life of the option from grant date. For the years ended December 31, 2020 and 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. 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 year ended December 31, 2022 is presented below: Year ended December 31, 2022 RMB ‘000 Hotel operating costs 2,111 Selling and marketing expenses 618 General and administrative expenses 160,464 Total 163,193 |
Equity
Equity | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Changes in shareholders' equity | ||
Equity | 17. Changes in shareholders’ equity Accumulated Total equity Additional other attributable to Non- Total paid-in Accumulated comprehensive shareholders of controlling shareholders’ Class A ordinary shares Class B ordinary shares Capital deficit loss the Company interests equity Number Number of shares RMB of shares RMB RMB RMB RMB RMB RMB RMB Balances at January 1, 2022 303,289,537 218 73,680,917 56 764,502 (176,403) (8,947) 579,426 (14,811) 564,615 Profit (loss) for the period — — — — — 7,824 — 7,824 (614) 7,210 Other comprehensive loss — — — — — — (219) (219) — (219) Total comprehensive income — — — — — 7,824 (219) 7,605 (614) 6,991 Balances at March 31, 2022 303,289,537 218 73,680,917 56 764,502 (168,579) (9,166) 587,031 (15,425) 571,606 Accumulated Total equity Additional other attributable to Non- Total paid-in Accumulated comprehensive shareholders of controlling shareholders’ Class A ordinary shares Class B ordinary shares Capital deficit loss the Company interests equity Number Number of shares RMB of shares RMB RMB RMB RMB RMB RMB RMB Balances at January 1, 2023 319,677,037 229 73,680,917 56 1,286,189 (78,304) (10,865) 1,197,305 (9,899) 1,187,406 Cumulative effect of the adoption of ASU 2016-13 — — — — — (1,028) — (1,028) — (1,028) Profit for the period — — — — — 17,875 — 17,875 197 18,072 Other comprehensive loss — — — — — — (2,080) (2,080) — (2,080) Total comprehensive income — — — — — 17,875 (2,080) 15,795 197 15,992 Share-based compensation — — — — 141,580 — — 141,580 — 141,580 Balances at March 31, 2023 319,677,037 229 73,680,917 56 1,427,769 (61,457) (12,945) 1,353,652 (9,702) 1,343,950 | 16. Equity (a) Ordinary shares 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 $11 per ADS or $3.67 per ordinary share, with net proceeds of RMB365,784. Prior to the Restructuring, as further described in Note 1, the issued and outstanding shares of Atour Shanghai include 171,589,918 ordinary shares, 60,912,400 Series A Shares, 48,394,000 Series B Shares and 104,896,800 Series C Shares as of December 31, 2020. The preference rights of Series A shares, Series B shares and Series C shares are disclosed in Note 12. 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. The effect of the Restructuring where applicable has been retrospectively reflected in the consolidated financial statements. The following equity transactions that occurred during the intervening period of the Restructuring are accounted for separately from the Restructuring as they are not part of the integrated set of activities constituting the Restructuring and serve distinct purposes independent of the Restructuring. (b) Termination of preference rights of certain shareholders As set out in Note 12, 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. |
Related party transactions
Related party transactions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Related party transactions | ||
Related party transactions | 15. Related party transactions In addition to the related party information disclosed elsewhere in the condensed consolidated financial statements, the Group entered into the following material related party transactions. Name of party Relationship Trip.com Group Ltd. and its subsidiaries Ultimate parent of a principal (a) Major transactions with related parties For the three months ended March 31, 2022 2023 RMB RMB Hotel reservation payments collected on behalf of the Group Trip.com Group 88,757 290,397 Hotel reservation service fees Trip.com Group 2,839 6,159 Trip.com Group has rendered online travel agency reservation services to the Group in exchange for certain hotel reservation service fees. (b) Balances with related parties As of As of December 31, March 31, 2022 2023 RMB RMB Amounts due from related parties Trip.com Group 53,630 102,885 Amounts due to related parties Trip.com Group 3,004 5,607 | 17. 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 Ultimate parent of a principal (a) Major transactions with related parties Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Hotel reservation payments collected on behalf of the Group Trip.com Group 257,963 588,238 692,771 Hotel reservation service fees Trip.com Group 14,473 21,276 11,334 Trip.com Group has rendered online travel agency reservation services to the Group in exchange for certain hotel reservation service fees. (b) Balances with related parties As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Amounts due from related parties Trip.com Group 51,937 53,630 Amounts due to related parties Trip.com Group 1,772 3,004 |
Contingencies
Contingencies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Contingencies | ||
Contingencies | 16. Contingencies (a) Capital commitments As of March 31, 2023, the Group’s commitments related to leasehold improvements and installation of equipment for hotel operations was RMB27,700, which is expected to be incurred within two years. (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. In September 2021, the Group was sued in connection with the agency services fee payable of the Company’s leased hotel. While the Group believes it has meritorious defenses against the suit, the ultimate resolution of the matter, could result in a loss of up to RMB12,333 in excess of the amount accrued. | 18. Contingencies (a) Capital commitments As of December 31, 2022, the Group’s commitments related to leasehold improvements and installation of equipment for hotel operations was RMB1,289, 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. In September 2021, the Group was sued in connection with the agency services fee payable of the Company’s leased hotel. While the Group believes it has meritorious defenses against the suit, the ultimate resolution of the matter, could result in a loss of up to RMB12,333 in excess of the amount accrued. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent events | |
Subsequent events | 19. Subsequent events Share-based compensation In March 2023, the Company’s board of directors approved to grant 4,000,000 share options to a certain executive officer under the Public Company Plan with the estimated total grant-date fair value of appropriately RMB138,000. These share options are immediately vested at the date of the grant. |
Significant accounting polici_2
Significant accounting policies (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Significant accounting policies | ||
Basis of preparation | (a) Basis of preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements of the Group. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Group as of and for the year ended December 31, 2022. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of March 31, 2023, the results of operations and cash flows for the three months ended March 31, 2022 and 2023, have been made. The preparation of the unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods. Significant accounting estimates include, but not limited to, estimate of breakage, the fair value of share-based compensation awards, and the recoverability 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 unaudited condensed consolidated financial statements. The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousands except share data and per share data, or otherwise noted. 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 condensed 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 condensed consolidated financial statements. | (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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases Upon the adoption of ASC 842, the Group recognized right-of-use assets and lease liabilities of RMB2,200,280 and RMB2,399,061 respectively, for operating leases of the buildings of the Group’s leased hotels and office spaces based on the present value of lease payments over the lease term. The following table summarizes the effect on the consolidated balance sheet as a result of adopting ASC 842. As of Effect of As of December 31, 2021 adoption January 1, 2022 RMB ‘000 RMB ‘000 RMB’000 Assets Current assets Cash and cash equivalents 1,038,583 — 1,038,583 Short-term investments — — — Accounts receivable, net of allowance of RMB 14,731 as of December 31, 2021 99,961 — 99,961 Prepayments and other current assets 167,161 — 167,161 Amounts due from related parties 51,937 — 51,937 Inventories 58,575 — 58,575 Total current assets 1,416,217 — 1,416,217 Non-current assets Restricted cash 946 — 946 Contract costs 62,415 — 62,415 Property and equipment, net 439,015 — 439,015 Operating lease right-of-use assets — 2,200,280 (a) 2,200,280 Intangible assets, net 3,820 — 3,820 Goodwill 17,446 — 17,446 Other assets 182,581 (11,758) (b) 170,823 Deferred tax assets 122,707 — 122,707 Total non-current assets 828,930 2,188,522 3,017,452 Total assets 2,245,147 2,188,522 4,433,669 As of Effect of As of December 31, 2021 adoption January 1, 2022 RMB ‘000 RMB ‘000 RMB’000 Current liabilities Operating lease liabilities, current — 317,483 (c) 317,483 Accounts payable 161,277 — 161,277 Deferred revenue 233,735 — 233,735 Salary and welfare payable 95,238 — 95,238 Accrued expenses and other payables 447,380 (6,483) (d) 440,897 Income taxes payable 46,176 — 46,176 Short-term borrowings 64,808 — 64,808 Current portion of long-term borrowings 1,000 — 1,000 Other amounts due to related parties 1,772 — 1,772 Total current liabilities 1,051,386 311,000 1,362,386 Non-current liabilities Operating lease liabilities, non-current — 2,081,578 (c) 2,081,578 Deferred revenue 267,909 — 267,909 Long-term borrowings, non-current portion 43,630 — 43,630 Other non-current liabilities 317,607 (204,056) (d) 113,551 Total non-current liabilities 629,146 1,877,522 2,506,668 Total liabilities 1,680,532 2,188,522 3,869,054 Equity Class A ordinary shares 218 — 218 Class B ordinary shares 56 — 56 Additional paid in capital 764,502 — 764,502 Accumulated deficit (176,403) — (176,403) Accumulated other comprehensive loss (8,947) — (8,947) Total equity attributable to shareholders of the Company 579,426 — 579,426 Non-controlling interests (14,811) — (14,811) Total equity 564,615 — 564,615 Commitments and contingencies — — — Total liabilities and shareholders’ equity 2,245,147 2,188,522 4,433,669 (a) Represents the net result of capitalization of operating lease payments and reclassification of deferred rental initial direct cost and deferred rent accrual. (b) Represents deferred rental initial direct cost reclassified to operating lease right-of-use assets. (c) Represents recognition of the current portion and non-current portion of operating lease liabilities. (d) Represents reclassification of the current portion and non-current portion of deferred rent accrual to operating lease right-of-use assets. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. 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, versus determining an implied fair value in Step two to measure the impairment loss. The guidance is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2019. For all other entities it is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Group early adopted the new standard on January 1, 2022, and the adoption did not have a material impact on its consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). It requires issuers to make annual disclosures about government assistance, including the nature of the transaction, the related accounting policy, the financial statement line items affected and the amounts applicable to each financial statement line item, as well as any significant terms and conditions, including commitments and contingencies. The amendments in ASU 2021-10 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Group adopted this new standard on January 1, 2022, using the retrospective approach. See Note 2(w) for related disclosure. |
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. Significant items subject to such estimates and assumptions include, but are not limited to, estimate of breakage, the fair value of share-based compensation awards, and the recoverability 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 | (b) Convenience translation Translations of balances in the unaudited condensed consolidated financial statements from RMB into United States dollars (“USD”) as of and for the three months ended March 31, 2023 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.8676 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 31, 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 March 31, 2023, or at any other rate. | (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, 2022 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.8972 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 30, 2022. 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, 2022, 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 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 (expense) 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 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, 2021 2022 RMB ‘000 RMB ‘000 Financial institutions in the mainland PRC – Denominated in RMB 965,855 1,290,408 – Denominated in USD 3,270 3,541 Total cash balances held at mainland PRC financial institutions 969,125 1,293,949 Hong Kong – Denominated in RMB 9,859 9,884 – Denominated in USD 5,554 5,990 Total cash balances held at the Hong Kong financial institutions 15,413 15,874 Cayman Islands – Denominated in RMB 272 273 – Denominated in USD 53,773 279,065 Total cash balances held at the Cayman Islands financial institutions 54,045 279,338 Total cash and cash equivalents balances held at financial institutions 1,038,583 1,589,161 | |
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 were 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 agents, hotel guests and credit card receivables, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the aging of the receivables and factors surrounding the credit risk of specific franchisees and other customers. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2021 and 2022, 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, 2021 and 2022 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, 2020, 2021 and 2022 were RMB7,556, RMB7,870 and RMB9,832, 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 inventory is determined using the specific identification method. | |
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 expenses as reported in the consolidated statements of comprehensive income for the years ended December 31, 2020, 2021 and 2022 is as follows: Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Total interest expenses 6,130 9,469 6,501 Less: interest expenses capitalized (4,649) (1,532) — Interest expenses 1,481 7,937 6,501 | |
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 5 years | |
Leases | (o) Leases The Company 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. 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, 2021 and 2022, 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 were 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. 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. No impairment losses were recorded for the years ended December 31, 2020, 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 each 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, 2020, 2021 and 2022. | |
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% to 15% deduction from April 1, 2019 to December 31, 2022. For the years ended December 31, 2020, 2021 and 2022, the Group recognized RMB5,766, RMB12,864 and RMB12,035 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, 2021 2022 RMB ‘000 RMB ‘000 Balance at the beginning of the year 3,429 3,597 Accretion expense 168 176 Balance at the end of the year 3,597 3,773 | |
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. (1) 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. information 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. ● 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 and hotel managers fees; and iii) fees for purchase of hotel supplies and other products. The transaction prices are allocated to the performance obligations based on the estimated standalone selling prices of each components. Upfront franchise fees are typically fixed and collected upfront and recognized as revenue on 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. 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. In certain cases, the Group also 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 — other transactions with the franchisees in the consolidated statements of comprehensive income. (2) 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. (3) 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 collected 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 — other transactions with the franchisees 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 — other transactions with the franchisees 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 Group does not have impairment losses on contract assets for the years ended December 31, 2020, 2021 and 2022. 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. Contract liabilities are 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, 2020, 2021 and 2022, the Group received financial subsidies of RMB14,778, RMB9,507 and RMB26,059 from various local PRC government authorities, respectively, which primarily consist of government subsidies for headquarter office and employee benefits. 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, 2020, 2021 and 2022. | |
Advertising and promotion expenses | (x) Advertising and promotion expenses Advertising related expenses, including promotion expenses and production costs of marketing materials, are charged to the consolidated statements of comprehensive income as incurred and amounted to RMB15,469 and RMB64,226 and RMB74,963 for the years ended December 31, 2020, 2021 and 2022, 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 and reservation systems, (ii) servers and cloud infrastructure costs, (iii) 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 RMB50,389 and RMB110,194 and RMB129,254 and for the years ended December 31, 2020, 2021 and 2022. In response to the COVID-19 pandemic, the PRC government has implemented relief policies to exempt or reduce enterprises’ payments of certain social benefits provided to employees during 2020. The amount of exemption and reduction for employee social benefits for the year ended December 31, 2020 was approximately RMB42,680. | |
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 is 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 are 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 are 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 Company 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 are 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, 2021 and 2022, the PRC statutory reserve funds amounted to RMB74,552 and RMB83,858, respectively. | |
Segment reporting | (ae) Segment reporting The Company uses the management approach in determining its operating segments. The Company’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 Company. For the purpose of internal reporting and management’s operation review, the Company’s Chief Executive Officer does not segregate the Company’s business by product or service lines. Management has determined that the Company 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’s financial instruments include cash and cash equivalent, restricted cash, short-term investments, accounts receivable, prepayments and other current assets, amounts due from related parties, accounts payable, amounts due to related parties, accrued expenses and other payables, short-term borrowings and long-term borrowings. The carrying amounts of these short-term financial instruments approximate their fair value due to their short-term nature. The long-term borrowings approximate their fair values, because the bearing interest rate approximates market interest rate, and market interest rates have not fluctuated significantly since the commencement of loan contracts signed. 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. | |
Net income (loss) per ordinary share | (ah) Net income (loss) per ordinary share Basic income (loss) per ordinary share is computed by dividing net income (loss) 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 (loss) 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 (loss) per share as of the date that all necessary conditions have been satisfied. Diluted income (loss) per ordinary share is calculated by dividing net income (loss) 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 (loss) per ordinary share if the impact is anti-dilutive. | |
Recently issued accounting pronouncements | (ai) Recently issued 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 Company will adopt this standard for the year ending December 31, 2023 and expects the adoption would not have a material impact on its 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 Company will adopt this standard for the year ending December 31, 2023 and expects the adoption would not have a material impact on its consolidated financial statements. | |
Risks and concentration | (c) Risks and concentration (1) 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. (2) Concentration of credit risk The Group’s credit risk primarily arises from cash and cash equivalents, short-term investments, prepayments and other current assets, accounts receivable and amounts 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. The Group has no significant concentrations of credit risk with respect to its prepayments and other current assets. Accounts receivable are 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. | (aj) Risks and concentration (1) 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. (2) Concentration of credit risk The Group’s credit risk primarily arises from cash and cash equivalents, short-term investments, prepayments and other current assets, 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. The Group has no significant concentrations of credit risk with respect to its prepayments and other current assets. Accounts receivable are 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. |
Description of the business a_2
Description of the business and organization (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Description of the business and organization | ||
Schedule of the principal subsidiaries | As of March 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 | As of December 31, 2022, the subsidiaries of the Company 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, 2022 | |
Significant accounting policies | |
Summary of effect on consolidated balance sheet as result of adopting ASC 842 | As of Effect of As of December 31, 2021 adoption January 1, 2022 RMB ‘000 RMB ‘000 RMB’000 Assets Current assets Cash and cash equivalents 1,038,583 — 1,038,583 Short-term investments — — — Accounts receivable, net of allowance of RMB 14,731 as of December 31, 2021 99,961 — 99,961 Prepayments and other current assets 167,161 — 167,161 Amounts due from related parties 51,937 — 51,937 Inventories 58,575 — 58,575 Total current assets 1,416,217 — 1,416,217 Non-current assets Restricted cash 946 — 946 Contract costs 62,415 — 62,415 Property and equipment, net 439,015 — 439,015 Operating lease right-of-use assets — 2,200,280 (a) 2,200,280 Intangible assets, net 3,820 — 3,820 Goodwill 17,446 — 17,446 Other assets 182,581 (11,758) (b) 170,823 Deferred tax assets 122,707 — 122,707 Total non-current assets 828,930 2,188,522 3,017,452 Total assets 2,245,147 2,188,522 4,433,669 As of Effect of As of December 31, 2021 adoption January 1, 2022 RMB ‘000 RMB ‘000 RMB’000 Current liabilities Operating lease liabilities, current — 317,483 (c) 317,483 Accounts payable 161,277 — 161,277 Deferred revenue 233,735 — 233,735 Salary and welfare payable 95,238 — 95,238 Accrued expenses and other payables 447,380 (6,483) (d) 440,897 Income taxes payable 46,176 — 46,176 Short-term borrowings 64,808 — 64,808 Current portion of long-term borrowings 1,000 — 1,000 Other amounts due to related parties 1,772 — 1,772 Total current liabilities 1,051,386 311,000 1,362,386 Non-current liabilities Operating lease liabilities, non-current — 2,081,578 (c) 2,081,578 Deferred revenue 267,909 — 267,909 Long-term borrowings, non-current portion 43,630 — 43,630 Other non-current liabilities 317,607 (204,056) (d) 113,551 Total non-current liabilities 629,146 1,877,522 2,506,668 Total liabilities 1,680,532 2,188,522 3,869,054 Equity Class A ordinary shares 218 — 218 Class B ordinary shares 56 — 56 Additional paid in capital 764,502 — 764,502 Accumulated deficit (176,403) — (176,403) Accumulated other comprehensive loss (8,947) — (8,947) Total equity attributable to shareholders of the Company 579,426 — 579,426 Non-controlling interests (14,811) — (14,811) Total equity 564,615 — 564,615 Commitments and contingencies — — — Total liabilities and shareholders’ equity 2,245,147 2,188,522 4,433,669 (a) Represents the net result of capitalization of operating lease payments and reclassification of deferred rental initial direct cost and deferred rent accrual. (b) Represents deferred rental initial direct cost reclassified to operating lease right-of-use assets. (c) Represents recognition of the current portion and non-current portion of operating lease liabilities. (d) Represents reclassification of the current portion and non-current portion of deferred rent accrual to operating lease right-of-use assets. |
Summary of Group's cash and cash equivalents deposited in financial institutions locations | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Financial institutions in the mainland PRC – Denominated in RMB 965,855 1,290,408 – Denominated in USD 3,270 3,541 Total cash balances held at mainland PRC financial institutions 969,125 1,293,949 Hong Kong – Denominated in RMB 9,859 9,884 – Denominated in USD 5,554 5,990 Total cash balances held at the Hong Kong financial institutions 15,413 15,874 Cayman Islands – Denominated in RMB 272 273 – Denominated in USD 53,773 279,065 Total cash balances held at the Cayman Islands financial institutions 54,045 279,338 Total cash and cash equivalents balances held at financial institutions 1,038,583 1,589,161 |
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 expenses as reported in the consolidated statements of comprehensive income | Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Total interest expenses 6,130 9,469 6,501 Less: interest expenses capitalized (4,649) (1,532) — Interest expenses 1,481 7,937 6,501 |
Schedule of amortization period of intangible assets | Purchased software 5 years |
Schedule of activities of the asset retirement obligation liability | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Balance at the beginning of the year 3,429 3,597 Accretion expense 168 176 Balance at the end of the year 3,597 3,773 |
Prepayments and other assets (T
Prepayments and other assets (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Prepayments and other assets | ||
Schedule of prepayments and other current assets | As of As of December 31, March 31, 2022 2023 RMB RMB Prepaid rental and property management fees 5,467 6,625 Prepayment for purchase of goods and service 5,990 7,978 VAT recoverable 23,183 19,912 Receivables on behalf of manachised hotels (i) 81,473 157,964 Contract assets (Note 11(b)) 8,741 9,227 Deposits 2,165 2,185 Others 10,006 21,345 Subtotal 137,025 225,236 Less: allowance for doubtful accounts (3,124) (3,124) Total 133,901 222,112 (i) The amount represents fees to be collected from corporate customers and travel agencies on behalf of franchisees. | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Prepaid rental and property management fees 12,112 5,467 Prepayment for purchase of goods and services 12,247 5,990 VAT recoverable 25,425 23,183 Receivables on behalf of manachised hotels (i) 103,495 81,473 Contract assets (Note 13(b)) 7,171 8,741 Deposits 2,904 2,165 Others 6,931 10,006 Subtotal 170,285 137,025 Less: allowance for doubtful accounts (3,124) (3,124) Total 167,161 133,901 (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 As of December 31, March 31, 2022 2023 RMB RMB At the beginning of the year/period 3,124 3,124 Allowance made/reversed during the year/period — — At the end of the year/period 3,124 3,124 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 At the beginning of the year 3,441 3,124 Allowance made during the year 3,124 — Allowance write-off during the year (3,441) — At the end of the year 3,124 3,124 |
Schedule of other assets | As of As of December 31, March 31, 2022 2023 RMB RMB Long-term rental deposits 75,954 76,248 Contract assets (Note 11(b)) 58,288 56,263 VAT recoverable 6,744 2,069 Prepayments for purchase of property and equipment 349 12,420 Total 141,335 147,000 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Long-term rental deposits 75,604 75,954 Contract assets (Note 13(b)) 62,615 58,288 VAT recoverable 8,800 6,744 Prepayments for purchase of property and equipment 444 349 Deferred rental initial direct costs 11,758 — Deferred initial public offering related costs 23,360 — Total 182,581 141,335 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property and equipment, net | ||
Schedule of property and equipment, net | As of As of December 31, March 31, 2022 2023 RMB RMB Cost: Leasehold improvements 443,695 441,663 Equipment, fixture and furniture, and other fixed assets 420,004 425,674 Total cost 863,699 867,337 Less: accumulated depreciation (503,399) (524,775) Property and equipment, net 360,300 342,562 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Cost: Leasehold improvements 452,030 443,695 Equipment, fixture and furniture, and other fixed assets 407,259 420,004 Total cost 859,289 863,699 Less: accumulated depreciation (420,274) (503,399) Property and equipment, net 439,015 360,300 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Intangible assets, net | ||
Schedule of intangible assets, net | As of As of December 31, March 31, 2022 2023 RMB RMB Purchased software 11,055 11,055 Total cost 11,055 11,055 Less: accumulated amortization (5,518) (5,817) Intangible assets, net 5,537 5,238 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Purchased software 8,250 11,055 Total cost 8,250 11,055 Less: accumulated amortization (4,430) (5,518) Intangible assets, net 3,820 5,537 |
Schedule of estimated amortization expense of existing intangible assets | RMB Nine months ending December 31, 2023 918 2024 1,064 2025 1,048 2026 776 2027 623 Thereafter 809 Total 5,238 | RMB’000 For the year ending December 31, 2023 1,978 2024 1,419 2025 1,173 2026 616 2027 351 Total 5,537 |
Lease (Tables)
Lease (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Lease | ||
Schedule of supplemental balance sheet | As of As of December 31, 2022 March 31, 2023 RMB RMB Assets Operating lease right-of-use assets 1,932,000 1,868,615 Liabilities Current Operating lease liabilities 319,598 321,370 Non-current Operating lease liabilities 1,805,402 1,742,358 Total lease liabilities 2,125,000 2,063,728 | As of December 31, 2022 RMB’000 Assets Operating lease right-of-use assets 1,932,000 Liabilities Current Operating lease liabilities 319,598 Non-current Operating lease liabilities 1,805,402 Total lease liabilities 2,125,000 |
Summary of lease cost | For the three months ended March 31, 2022 2023 Account Classification RMB RMB Operating lease cost 91,895 91,599 Hotel operating costs, Other operating costs Variable lease cost (a) (247) (4,743) Hotel operating costs, Other operating costs Sublease income (3,065) (3,188) Retail revenues and others Total lease cost 88,583 83,668 (a) The Group was granted RMB2,480 and RMB5,940 in lease concessions from landlords related to the effects of the COVID-19 pandemic during the three months ended March 31, 2022 and 2023, respectively. The lease concessions were primarily in the form of rent reduction over the period during which the Group’s hotel business was adversely impacted. The Group applied the interpretive guidance in a FASB staff Q&A document issued in April 2020 and elected: (1) not to evaluate whether a concession received in response to the COVID-19 pandemic is a lease modification and (2) to assume such concession was contemplated as part of the existing lease contract with no contract modification. Such concession was recognized as negative variable lease cost in the period the concession was granted. | Years ended December 31, 2022 Account Classification RMB ‘000 Operating lease cost 362,689 Hotel operating costs, Other operating costs, General and administrative expenses Variable lease cost (a) (20,684) Hotel operating costs, Other operating costs Sublease income (9,019) Retail revenues and others Total lease cost 332,986 (a) The Group was granted RMB27,122 in lease concessions from landlords related to the effects of the COVID-19 pandemic in 2022. The lease concessions were primarily in the form of rent reduction over the period during which the Group’s hotel business was adversely impacted. The Group applied the interpretive guidance in a FASB staff Q&A document issued in April 2020 and elected: (1) not to evaluate whether a concession received in response to the COVID-19 pandemic is a lease modification and (2) to assume such concession was contemplated as part of the existing lease contract with no contract modification. Such concession was recognized as negative variable lease cost in the period the concession was granted. (b) The total lease cost in 2020 and 2021 were RMB358,853 and RMB366,763, respectively, which included RMB12,668 and RMB646 of lease concessions from landlords related to the effects of the COVID-19 pandemic. |
Schedule of supplemental cash flow information | For the three months ended March 31, 2022 2023 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 81,495 86,435 | Years ended December 31, 2022 RMB ‘000 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 341,348 |
Schedule of lease term and discount rate | As of As of December 31, 2022 March 31, 2023 Lease term and Discount Rate Weighted-average remaining lease term (years) Operating leases 7.82 7.67 Weighted-average discount rate Operating leases 4.39 % 4.39 % | As of December 31, 2022 Lease term and Discount Rate Weighted-average remaining lease term (years) Operating leases 7.82 Weighted-average discount rate Operating leases 4.39 % |
Summary of future lease payments and lease liabilities | Total RMB Nine months ending December 31, 2023 317,585 2024 341,436 2025 304,783 2026 284,021 2027 280,851 Thereafter 898,901 Total undiscounted lease payment 2,427,577 Less: imputed interest (a) (363,849) Present value of lease liabilities 2,063,728 (a) As the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate on January 1, 2022 was used for operating leases that commenced prior to that date . | RMB ‘000 2023 404,020 2024 341,576 2025 304,923 2026 284,170 Thereafter 1,175,366 Total undiscounted lease payment 2,510,055 Less: imputed interest (a) (385,055) Present value of lease liabilities 2,125,000 (a) As the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate on January 1, 2022 was used for operating leases that commenced prior to that date . |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income tax | |
Summary of income tax expense | Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Current income tax expense 71,933 73,613 74,300 Deferred income tax (benefit) expense (34,331) (9,396) 10,174 Total 37,602 64,217 84,474 |
Summary of actual income tax expenses differ from the amount computed by applying the PRC statutory income tax rate | Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Income before income taxes 75,424 203,887 180,556 Computed expected tax expense 18,856 50,972 45,139 Increase (decrease) in income taxes resulting from: Non-deductible expenses 1,952 2,721 1,619 Additional deduction for research and development expenses (1,629) (9,922) (8,714) Share-based compensation — — 40,798 Tax loss expiration — — 2,800 Change in valuation allowance 17,905 19,066 1,085 Others 518 1,380 1,747 Total 37,602 64,217 84,474 |
Summary of tax effects of temporary differences that give rise to the deferred tax assets (liabilities) | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deferred tax assets (liabilities) Tax losses carried forward 81,376 77,103 Allowance for doubtful accounts 5,339 6,523 Accrued payroll and other expenses 7,972 8,783 Deferred revenue 73,473 74,816 Contract costs (15,604) (16,818) Deferred rent 6,117 — Deferred rental initial direct costs (2,939) — Operating lease liabilities — 486,083 Operating lease right-of-use assets — (483,000) Property and equipment 41,438 33,280 Others 1,890 3,203 Total gross deferred tax assets 199,062 189,973 Valuation allowance on deferred tax assets (76,355) (77,440) Deferred tax assets, net of valuation allowance 122,707 112,533 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deferred tax assets 122,707 112,533 Deferred tax liabilities — — Net deferred tax assets 122,707 112,533 |
Summary of movement of the valuation allowance | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Balance at the beginning of the year 57,289 76,355 Addition during the year 19,066 3,885 Reduction as a result of expiry of tax losses carried forward — (2,800) Balance at the end of the year 76,355 77,440 |
Accrued expenses and other pa_2
Accrued expenses and other payables (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accrued expenses and other payables | ||
Summary of accrued expenses and other payables | As of As of December 31, March 31, 2022 2023 RMB RMB Deposits 53,203 55,793 Payments received on behalf of manachised hotels (i) 199,395 410,444 VAT and other taxes payable 19,871 26,569 Payable for purchase of property and equipment 12,617 8,092 Others 45,196 31,475 Total 330,282 532,373 (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. | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deposits 46,961 53,203 Payments received on behalf of manachised hotels (i) 287,516 199,395 Deferred rent 6,483 — VAT and other taxes payable 22,120 19,871 Payable for purchase of property and equipment 38,357 12,617 Others 45,943 45,196 Total 447,380 330,282 (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) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Borrowings | ||
Summary of borrowings | As of As of December 31, March 31, 2022 2023 RMB RMB Short-term borrowings: Bank loans (i) 141,000 181,000 Loan from third parties 1,828 848 Total 142,828 181,848 Current portion of long-term borrowings: Bank loans (i) 29,130 29,130 Total 29,130 29,130 Long-term borrowings, non-current portion: Loan from third parties 2,000 2,000 Total 2,000 2,000 (i) As of March 31, 2023, the Group had several credit facilities with third party banks under which the Group can borrow up to RMB 400,000 during the term of the facilities mature from June 2023 to September 2023. The drawdown of the credit facilities is subject to the terms and conditions of each agreement. Certain credit facilities also require the Group to comply with various covenants and other restrictions, including but not limited to the sum of interest-bearing borrowings and bills payable (if applicable) lower than RMB 300,000 if the Company’s annual revenues are less than RMB 2,500,000 . As of March 31, 2023, the unutilized credit facilities amounted to RMB 278,870 and the Group was in compliance with the financial covenants. | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Short-term borrowings: Bank loans (i) 62,000 141,000 Loan from third parties 2,808 1,828 Total 64,808 142,828 Current portion of long-term borrowings: Bank loans (i) 1,000 29,130 Total 1,000 29,130 Long-term borrowings, non-current portion: Bank loans (i) 41,630 — Loan from third parties 2,000 2,000 Total 43,630 2,000 (i) As of December 31, 2022, the Group had several credit facilities with third party banks under which the Group can borrow up to RMB 400,000 during the term of the facilities mature from June 2023 to September 2023. The drawdown of the credit facilities is subject to the terms and conditions of each agreement. Certain credit facilities also require the Group to comply with various covenants and other restrictions, including but not limited to the sum of interest bearing borrowings and bills payable (if applicable) lower than RMB 300,000 if the Company’s revenues are less than RMB 2,500,000 . As of December 31, 2022, the unutilized credit facilities was RMB 279 million and the Group was in compliance with the financial covenants. |
Summary of aggregate maturities of long-term borrowings | Nine months ending March 31, 2023 29,130 2024 — 2025 500 2026 200 2027 and thereafter 1,300 Total 31,130 | RMB ‘000 For the year ending December 31, 2023 29,130 2024 — 2025 500 2026 200 2027 and thereafter 1,300 Total 31,130 |
Other non-current liabilities (
Other non-current liabilities (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Other non-current liabilities | ||
Schedule of other non current liabilities | As of As of December 31, March 31, 2022 2023 RMB RMB Deposits received from franchisees 129,101 137,326 Asset retirement obligations 3,773 3,820 Others 8,889 8,817 Total 141,763 149,963 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deposits received from franchisees 107,034 129,101 Deferred rent 204,056 — Asset retirement obligations (Note 2(t)) 3,597 3,773 Others 2,920 8,889 Total 317,607 141,763 |
Ordinary shares with preferen_2
Ordinary shares with preference rights (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Ordinary shares with preference rights | |
Schedule of Company's Series C Shares activities | As of December 31, 2020 2021 RMB ‘000 RMB ‘000 Balance at the beginning of the year 661,012 713,893 Accretion to the redemption value 52,881 15,115 Reclassification of redeemable Class A ordinary shares to Class A ordinary shares — (729,008) Balance at the end of the year 713,893 — |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||
Disaggregation of revenue | For the three months ended March 31, 2022 2023 RMB RMB Upfront franchise fees 8,036 10,693 Continuing franchise fees 151,726 278,429 Sales of hotel supplies and other products 102,267 140,679 Other transactions with the franchisees 11,776 16,997 Manachised hotels revenues 273,805 446,798 Room revenues 100,788 173,754 Food and beverage revenues 9,580 12,263 Others 1,213 1,293 Leased hotels revenues 111,581 187,310 Retail revenues 41,175 112,933 Others 25,553 26,895 Total 452,114 773,936 | Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Upfront franchise fees 29,841 32,356 38,066 Continuing franchise fees 351,933 554,227 757,158 Sales of hotel supplies and other products 421,217 514,557 516,865 Other transactions with the franchisees 123,316 119,161 48,754 Manachised hotels revenues 926,307 1,220,301 1,360,843 Room revenues 457,173 579,946 505,557 Food and beverage revenues 36,244 43,641 43,313 Others 3,053 6,651 4,059 Leased hotels revenues 496,470 630,238 552,929 Retail revenues 70,877 191,596 253,607 Others 72,898 105,442 95,604 Total 1,566,552 2,147,577 2,262,983 |
Contract balances | As of As of December 31, March 31, 2022 2023 RMB RMB Accounts receivable 152,167 133,708 Less: allowance for doubtful accounts (19,468) (19,243) Accounts receivable, net 132,699 114,465 As of As of December 31, March 31, 2022 2023 RMB RMB At the beginning of the year/period 14,731 19,468 Cumulative effect of the adoption of ASU 2016-13 — 1,371 Allowance made (reversed) during the year/period 4,737 (1,596) At the end of the year/period 19,468 19,243 As of As of December 31, March 31, 2022 2023 RMB RMB Current 8,741 9,227 Non-current 58,288 56,263 Contract assets 67,029 65,490 As of As of December 31, March 31, 2022 2023 RMB RMB Current 202,996 228,812 Non-current 277,841 290,302 Contract liabilities 480,837 519,114 As of As of December 31, March 31, 2022 2023 RMB RMB Upfront franchise fees 319,537 333,905 Advances from sales of hotel supplies and other products 92,144 106,087 Loyalty program 36,877 33,346 Others 32,279 45,776 Deferred revenue 480,837 519,114 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Accounts receivable 114,692 152,167 Less: Allowance for doubtful accounts (14,731) (19,468) Accounts receivable, net 99,961 132,699 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 At the beginning of the year 14,966 14,731 Allowance (reversed) made during the year (235) 4,737 At the end of the year 14,731 19,468 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Current 7,171 8,741 Non-current 62,615 58,288 Contract assets 69,786 67,029 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Current 233,735 202,996 Non-current 267,909 277,841 Contract liabilities 501,644 480,837 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Upfront franchise fees 303,216 319,537 Advances from sales of hotel supplies and other products 111,633 92,144 Loyalty program 48,691 36,877 Others 38,104 32,279 Deferred revenue 501,644 480,837 |
Net (loss) income per ordinar_2
Net (loss) income per ordinary share (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Net income per ordinary share | ||
Summary of Reconciliation of Basic and Diluted Earnings Per Share | For the three months ended March 31, 2022 2023 RMB RMB Numerator: Net income attributable to the Company 7,824 17,875 Denominator: Weighted average number of ordinary shares (for basic calculation) 376,970,454 393,958,225 Effect of dilutive share-based awards. — (i) 18,352,391 (ii) Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation). 376,970,454 412,310,616 Basic net income per ordinary share (in RMB) 0.02 0.05 Diluted net income per ordinary share (in RMB) 0.02 0.04 (i) For the three months ended March 31, 2022, 17,740,297 share options were excluded from the calculation of diluted net income per ordinary share as their vesting is contingent upon the satisfaction of a performance condition (i.e. completion of a Qualified IPO), which is not considered probable until the event occurs. (ii) For the three months ended March 31, 2023, 16,637 share options were excluded from the calculation of diluted net income per ordinary share as their effects would have been anti-dilutive. | Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Numerator: Net income attributable to the Company 42,051 145,054 98,099 Accretion to the redemption value of redeemable Class A ordinary shares (i) (52,881) (15,115) — Net (loss) income available to ordinary shares (10,830) 129,939 98,099 Denominator: Weighted average number of ordinary shares (for basic calculation) 171,589,918 323,163,367 (iii) 379,321,522 Effect of dilutive share-based awards (iv) — — 2,277,167 Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation) 171,589,918 (ii) 323,163,367 381,598,689 Basic net (loss) income per ordinary share (in RMB) (0.06) 0.40 0.26 Diluted net (loss) income per ordinary share (in RMB) (0.06) 0.40 0.26 (i) Represent the accretion to the redemption value of Series C shares of Atour Shanghai prior to the termination of the preference rights of certain shareholders on April 8, 2021 (see Note 12). (ii) For the year ended December 31, 2020, Series A, B and C shares of Atour Shanghai prior to Restructuring were excluded from the calculation of diluted income per ordinary share as their inclusion would have been anti-dilutive. (iii) For the year ended December 31, 2021, 214,203,200 ordinary shares were included in the denominator in the calculation of basic income per ordinary share to give the effect of the termination of preference rights on April 8, 2021. (iv) For the years ended December 31, 2020 and 2021, 11,663,920 and 17,740,297 share options were excluded from the calculation of diluted net income per ordinary share, respectively, as their vesting is contingent upon the satisfaction of a performance condition (i.e. completion of a Qualified IPO), which is not considered probable until the event occurs. For the year ended December 31, 2022, 660,000 share options were excluded from the calculation of diluted net income per ordinary share as their effects would have been anti-dilutive. |
Share based compensation (Table
Share based compensation (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Share based compensation | ||
Schedule of activities of the share options | Weighted average Aggregate Number of exercise Weighted remaining intrinsic share options price per share contractual years value RMB RMB Outstanding at January 1, 2023 21,444,931 5.78 8.35 764,494 Grant 4,033,274 Forfeiture (1,000) Outstanding at March 31, 2023 25,477,205 8.11 8.54 1,321,995 Exercisable as of March 31, 2023 23,912,776 8.06 8.56 1,241,983 | Weighted Aggregate Number of average Weighted remaining intrinsic share options exercise price contractual years value (RMB) (RMB’000) Outstanding at January 1, 2022 17,740,297 5.06 9.24 473,237 Grant – Prior to IPO 640,095 10.33 — — – Post IPO 3,628,971 8.41 — — Forfeiture (564,432) 5.35 — — Outstanding at December 31, 2022 21,444,931 5.78 8.35 764,494 Exercisable as of December 31, 2022 19,681,140 5.52 8.56 706,750 |
Schedule of assumptions used in estimating the fair value of the share options on the date of grant using the binomial option pricing model | For the three months ended March 31, 2023 Risk-free rate of return (1) 3.8 % Volatility (2) 40.2% – 40.4 % Expected dividend yield (3) 0 % Fair value of ordinary share (in RMB) (4) 42.0 – 54.0 Exercise Multiple (5) 2.2 – 2.8 Expected term (6) 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) The fair value of the underlying ordinary share is the closing price of the Company’s ordinary shares traded in the open market as of the grant date. (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 voluntarily 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 contract life of the option from grant date. | 2020 2021 2022 Risk-free rate of return (1) 2.90% ~ 3.10 % 1.70% ~ 3.20 % 3.10% ~ 4.00 % Volatility (2) 34.30% ~ 34.40 % 34.61% ~ 37.64 % 38.98% ~ 40.44 % Expected dividend yield (3) 0 % 0 % 0 % Fair value of ordinary share (in RMB) (4) 10.54 ~ 10.93 11.93 ~ 31.74 28.80 ~ 43.56 Exercise multiple (5) 2.2 2.2 2.2 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 the estimation of future cash flows, and the application of an appropriate discount rate with reference to comparable listed companies engaged in the similar industry to convert such future cash flows to a single present value. After the Company’s IPO, the fair value of the underlying ordinary share is the closing price of the Company’s ordinary shares traded in the open market as of the grant date. (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 voluntarily 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 contract life of the option from grant date. |
Schedule of share-based compensation expenses recognized | For the three months ended March 31, 2023 RMB Hotel operating costs 124 Selling and marketing expenses 38 General and administrative expenses 141,418 Total 141,580 | Year ended December 31, 2022 RMB ‘000 Hotel operating costs 2,111 Selling and marketing expenses 618 General and administrative expenses 160,464 Total 163,193 |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Related party transactions | ||
Schedule of material related party transactions | Name of party Relationship Trip.com Group Ltd. and its subsidiaries Ultimate parent of a principal For the three months ended March 31, 2022 2023 RMB RMB Hotel reservation payments collected on behalf of the Group Trip.com Group 88,757 290,397 Hotel reservation service fees Trip.com Group 2,839 6,159 As of As of December 31, March 31, 2022 2023 RMB RMB Amounts due from related parties Trip.com Group 53,630 102,885 Amounts due to related parties Trip.com Group 3,004 5,607 | Name of party Relationship Trip.com Group Ltd. and its subsidiaries Ultimate parent of a principal Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Hotel reservation payments collected on behalf of the Group Trip.com Group 257,963 588,238 692,771 Hotel reservation service fees Trip.com Group 14,473 21,276 11,334 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Amounts due from related parties Trip.com Group 51,937 53,630 Amounts due to related parties Trip.com Group 1,772 3,004 |
Description of the business a_3
Description of the business and organization (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Minimum | ||
Description of the business and organization | ||
Term of franchise and management agreements (in years) | 8 years | 8 years |
Maximum | ||
Description of the business and organization | ||
Term of franchise and management agreements (in years) | 15 years | 15 years |
Atour (Tianjin) Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Atour Business Management Group Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Xi'an Jiaduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Gongyu (Shanghai) Culture Communication Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Qingju Investment Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Fuzhou Hailian Atour Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 51% | 51% |
Chengdu Zhongchengyaduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Hongwang Financial Information Service Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Shankuai Information Technology Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Hangzhou Anduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Leiduo Information Technology Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Yueduo (Shanghai) Apartment Management Service Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 80% | 80% |
Shanghai Naiduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Zhouduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Chengduo Information Technology Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Beijing Chengduo Data Technology Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Xiangduo Enterprise Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Guiduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Atour (Shanghai) Travel Agency Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Guangzhou Zhongduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Banduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Beijing Yueduo Property Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 80% | 80% |
Shanghai Xingduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Jiangduo Information Technology Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shenzhen Jiaoduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Huiduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 90% | 90% |
Shanghai Mingduo Business Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Youduo Hotel Management Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Yinduo Culture Communication Co., Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Atour Hotel (HK) Holdings, Ltd | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Rongduo Commercial Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Significant accounting polici_4
Significant accounting policies - Recently adopted accounting pronouncements (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Summary of effect on consolidated balance sheet as result of adopting ASC 842 | |||||
Operating lease right-of-use assets | ¥ 1,868,615 | $ 272,091 | ¥ 1,932,000 | $ 280,114 | |
Present value of lease liabilities | ¥ 2,063,728 | 2,125,000 | |||
ASC 842 | Effect of adoption | |||||
Summary of effect on consolidated balance sheet as result of adopting ASC 842 | |||||
Operating lease right-of-use assets | 2,200,280 | ¥ 2,200,280 | |||
Present value of lease liabilities | ¥ 2,399,061 |
Significant accounting polici_5
Significant accounting policies - Effect of adopting ASC 842 (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Current assets | ||||||||
Cash and cash equivalents | ¥ 1,974,927 | $ 287,572 | ¥ 1,589,161 | $ 230,407 | ¥ 1,011,591 | ¥ 1,038,583 | ¥ 824,546 | |
Short-term investments | 158,374 | 23,061 | 157,808 | 22,880 | ||||
Accounts receivable, net of allowance of RMB14,731 and RMB19,468 as of December 31, 2021 and 2022, respectively | 114,465 | 16,667 | 132,699 | 19,239 | 99,961 | |||
Prepayments and other current assets | 222,112 | 32,342 | 133,901 | 19,414 | 167,161 | |||
Amounts due from related parties | 102,885 | 14,981 | 53,630 | 7,776 | 51,937 | |||
Inventories | 65,079 | 9,476 | 57,460 | 8,331 | 58,575 | |||
Total current assets | 2,637,842 | 384,099 | 2,124,659 | 308,047 | 1,416,217 | |||
Non-current assets | ||||||||
Restricted cash | 946 | 138 | 946 | 137 | 946 | 946 | 8,590 | |
Contract costs | 72,278 | 10,524 | 67,270 | 9,753 | 62,415 | |||
Property and equipment, net | 342,562 | 49,881 | 360,300 | 52,239 | 439,015 | |||
Operating lease right-of-use assets | 1,868,615 | 272,091 | 1,932,000 | 280,114 | ||||
Intangible assets, net | 5,238 | 763 | 5,537 | 803 | 3,820 | |||
Goodwill | 17,446 | 2,540 | 17,446 | 2,529 | 17,446 | |||
Other assets | 147,000 | 21,405 | 141,335 | 20,492 | 182,581 | |||
Deferred tax assets | 107,509 | 15,655 | 112,533 | 16,315 | 122,707 | |||
Total non-current assets | 2,561,594 | 372,997 | 2,637,367 | 382,382 | 828,930 | |||
Total assets | 5,199,436 | 757,096 | 4,762,026 | 690,429 | 2,245,147 | |||
Current liabilities | ||||||||
Operating lease liabilities, current | 321,370 | 46,795 | 319,598 | 46,337 | ||||
Accounts payable | 217,904 | 31,731 | 184,901 | 26,808 | 161,277 | |||
Deferred revenue, current | 228,812 | 33,318 | 202,996 | 29,432 | 233,735 | |||
Salary and welfare payable | 92,770 | 13,508 | 103,539 | 15,012 | 95,238 | |||
Accrued expenses and other payables | 532,373 | 77,520 | 330,282 | 47,886 | 447,380 | |||
Income taxes payable | 61,049 | 8,889 | 31,336 | 4,543 | 46,176 | |||
Short-term borrowings | 181,848 | 26,479 | 142,828 | 20,708 | 64,808 | |||
Current portion of long-term borrowings | 29,130 | 4,242 | 29,130 | 4,223 | 1,000 | |||
Amounts due to related parties | 5,607 | 816 | 3,004 | 436 | 1,772 | |||
Total current liabilities | 1,670,863 | 243,298 | 1,347,614 | 195,385 | 1,051,386 | |||
Non-current liabilities | ||||||||
Operating lease liabilities, non-current | 1,742,358 | 253,707 | 1,805,402 | 261,759 | ||||
Deferred revenue, non-current | 290,302 | 42,271 | 277,841 | 40,283 | 267,909 | |||
Long-term borrowings, non-current portion | 2,000 | 291 | 2,000 | 290 | 43,630 | |||
Other non-current liabilities | 149,963 | 21,836 | 141,763 | 20,554 | 317,607 | |||
Total non-current liabilities | 2,184,623 | 318,105 | 2,227,006 | 322,886 | 629,146 | |||
Total liabilities | 3,855,486 | 561,403 | 3,574,620 | 518,271 | 1,680,532 | |||
Equity | ||||||||
Additional paid in capital | 1,427,769 | 207,899 | 1,286,189 | 186,480 | 764,502 | |||
Accumulated deficit | (61,457) | (8,949) | (78,304) | (11,353) | (176,403) | |||
Accumulated other comprehensive loss | (12,945) | (1,885) | (10,865) | (1,575) | (8,947) | |||
Total equity attributable to shareholders of the Company | 1,353,652 | 197,106 | 1,197,305 | 173,593 | 579,426 | |||
Non-controlling interests | (9,702) | (1,413) | (9,899) | (1,435) | (14,811) | |||
Total shareholders' equity | 1,343,950 | 195,693 | 1,187,406 | 172,158 | ¥ 571,606 | 564,615 | ¥ (315,596) | ¥ (299,757) |
Commitments and contingencies | ||||||||
Total liabilities and shareholders' equity | 5,199,436 | 757,096 | 4,762,026 | 690,429 | 2,245,147 | |||
Class A ordinary shares | ||||||||
Equity | ||||||||
Ordinary shares | 229 | 33 | 229 | 33 | 218 | |||
Class B ordinary shares | ||||||||
Equity | ||||||||
Ordinary shares | ¥ 56 | $ 8 | 56 | $ 8 | 56 | |||
Effect of adoption | ||||||||
Equity | ||||||||
Total shareholders' equity | (1,028) | |||||||
ASC 842 | Effect of adoption | ||||||||
Non-current assets | ||||||||
Operating lease right-of-use assets | ¥ 2,200,280 | 2,200,280 | ||||||
Other assets | (11,758) | |||||||
Total non-current assets | 2,188,522 | |||||||
Total assets | 2,188,522 | |||||||
Current liabilities | ||||||||
Operating lease liabilities, current | 317,483 | |||||||
Accrued expenses and other payables | (6,483) | |||||||
Total current liabilities | 311,000 | |||||||
Non-current liabilities | ||||||||
Operating lease liabilities, non-current | 2,081,578 | |||||||
Other non-current liabilities | (204,056) | |||||||
Total non-current liabilities | 1,877,522 | |||||||
Total liabilities | 2,188,522 | |||||||
Equity | ||||||||
Total liabilities and shareholders' equity | 2,188,522 | |||||||
ASC 842 | As adjusted | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 1,038,583 | |||||||
Accounts receivable, net of allowance of RMB14,731 and RMB19,468 as of December 31, 2021 and 2022, respectively | 99,961 | |||||||
Prepayments and other current assets | 167,161 | |||||||
Amounts due from related parties | 51,937 | |||||||
Inventories | 58,575 | |||||||
Total current assets | 1,416,217 | |||||||
Non-current assets | ||||||||
Restricted cash | 946 | |||||||
Contract costs | 62,415 | |||||||
Property and equipment, net | 439,015 | |||||||
Operating lease right-of-use assets | 2,200,280 | |||||||
Intangible assets, net | 3,820 | |||||||
Goodwill | 17,446 | |||||||
Other assets | 170,823 | |||||||
Deferred tax assets | 122,707 | |||||||
Total non-current assets | 3,017,452 | |||||||
Total assets | 4,433,669 | |||||||
Current liabilities | ||||||||
Operating lease liabilities, current | 317,483 | |||||||
Accounts payable | 161,277 | |||||||
Deferred revenue, current | 233,735 | |||||||
Salary and welfare payable | 95,238 | |||||||
Accrued expenses and other payables | 440,897 | |||||||
Income taxes payable | 46,176 | |||||||
Short-term borrowings | 64,808 | |||||||
Current portion of long-term borrowings | 1,000 | |||||||
Amounts due to related parties | 1,772 | |||||||
Total current liabilities | 1,362,386 | |||||||
Non-current liabilities | ||||||||
Operating lease liabilities, non-current | 2,081,578 | |||||||
Deferred revenue, non-current | 267,909 | |||||||
Long-term borrowings, non-current portion | 43,630 | |||||||
Other non-current liabilities | 113,551 | |||||||
Total non-current liabilities | 2,506,668 | |||||||
Total liabilities | 3,869,054 | |||||||
Equity | ||||||||
Additional paid in capital | 764,502 | |||||||
Accumulated deficit | (176,403) | |||||||
Accumulated other comprehensive loss | (8,947) | |||||||
Total equity attributable to shareholders of the Company | 579,426 | |||||||
Non-controlling interests | (14,811) | |||||||
Total shareholders' equity | 564,615 | |||||||
Total liabilities and shareholders' equity | 4,433,669 | |||||||
ASC 842 | As adjusted | Class A ordinary shares | ||||||||
Equity | ||||||||
Ordinary shares | 218 | |||||||
ASC 842 | As adjusted | Class B ordinary shares | ||||||||
Equity | ||||||||
Ordinary shares | ¥ 56 |
Significant accounting polici_6
Significant accounting policies - Effect of adopting ASC 842 - Parenthetical (Details) ¥ in Thousands | Mar. 31, 2023 CNY (¥) shares | Mar. 31, 2023 $ / shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 $ / shares | Feb. 28, 2021 $ / shares shares | Jan. 31, 2021 shares | Dec. 31, 2020 CNY (¥) |
Summary of effect on consolidated balance sheet as result of adopting ASC 842 | |||||||||
Accounts receivable, allowance | ¥ | ¥ 19,243 | ¥ 19,468 | ¥ 14,731 | ¥ 14,966 | |||||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||||||||
Ordinary shares, Shares authorized | 3,000,000,000 | 500,000,000 | |||||||
Class A ordinary shares | |||||||||
Summary of effect on consolidated balance sheet as result of adopting ASC 842 | |||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares, Shares authorized | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | |||||
Ordinary shares, Shares issued | 319,677,037 | 319,677,037 | 303,289,537 | ||||||
Ordinary shares, Shares outstanding | 319,677,037 | 319,677,037 | 303,289,537 | ||||||
Class B ordinary shares | |||||||||
Summary of effect on consolidated balance sheet as result of adopting ASC 842 | |||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares, Shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Ordinary shares, Shares issued | 73,680,917 | 73,680,917 | 73,680,917 | ||||||
Ordinary shares, Shares outstanding | 73,680,917 | 73,680,917 | 73,680,917 |
Significant accounting polici_7
Significant accounting policies - Convenience translation (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Significant accounting policies | ||
Convenience translation | 6.8676 | 6.8972 |
Significant accounting polici_8
Significant accounting policies - Cash and cash equivalents (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 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 | ¥ 1,974,927 | $ 287,572 | ¥ 1,589,161 | $ 230,407 | ¥ 1,011,591 | ¥ 1,038,583 | ¥ 824,546 |
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 | 1,293,949 | 969,125 | |||||
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 | 1,290,408 | 965,855 | |||||
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 | 3,541 | 3,270 | |||||
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 | 15,874 | 15,413 | |||||
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 | 9,884 | 9,859 | |||||
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 | 5,990 | 5,554 | |||||
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 | 279,338 | 54,045 | |||||
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 | 273 | 272 | |||||
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 | ¥ 279,065 | ¥ 53,773 |
Significant accounting polici_9
Significant accounting policies - Contract costs (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant accounting policies | |||
Amount of capitalized costs recognized in the consolidated statements of comprehensive income | ¥ 9,832 | ¥ 7,870 | ¥ 7,556 |
Significant accounting polic_10
Significant accounting policies - Property and equipment, net (Details) - Equipment, fixtures and furniture, and other fixed assets | 12 Months Ended |
Dec. 31, 2022 | |
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 polic_11
Significant accounting policies - Capitalized interest (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Significant accounting policies | |||||||
Total interest expenses | ¥ 6,501 | ¥ 9,469 | ¥ 6,130 | ||||
Less: interest expenses capitalized | (1,532) | (4,649) | |||||
Interest expenses | ¥ 1,927 | $ 281 | ¥ 1,490 | ¥ 6,501 | $ 943 | ¥ 7,937 | ¥ 1,481 |
Significant accounting polic_12
Significant accounting policies - Intangible assets, net (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Purchased software | |
Intangible assets, net | |
Amortization period (in years) | 5 years |
Significant accounting polic_13
Significant accounting policies - Impairment of long-lived assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant accounting policies | |||
Impairment losses | ¥ 0 | ¥ 0 | ¥ 0 |
Significant accounting polic_14
Significant accounting policies - Goodwill (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) segment | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Significant accounting policies | |||
Number of reporting units | segment | 1 | ||
Impairment losses recorded for goodwill | ¥ | ¥ 0 | ¥ 0 | ¥ 0 |
Significant accounting polic_15
Significant accounting policies - Value-added-tax ("VAT") (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | 45 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Significant accounting policies | ||||
Amount of input VAT additional deduction benefit | ¥ 12,035 | ¥ 12,864 | ¥ 5,766 | |
Minimum [Member] | ||||
Significant accounting policies | ||||
Input VAT credit (in percent) | 10% | |||
Maximum [Member] | ||||
Significant accounting policies | ||||
Input VAT credit (in percent) | 15% |
Significant accounting polic_16
Significant accounting policies - Asset retirement costs (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Significant accounting policies | ||
Balance at the beginning of the year | ¥ 3,597 | ¥ 3,429 |
Accretion expense | 176 | 168 |
Balance at the end of the year | ¥ 3,773 | ¥ 3,597 |
Significant accounting polic_17
Significant accounting policies - Revenue recognition (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Significant accounting policies | |
Expiration period for loyalty points under membership program (in years) | 2 years |
Significant accounting polic_18
Significant accounting policies - Government grant (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant accounting policies | |||
Amount of financial subsidies received | ¥ 26,059 | ¥ 9,507 | ¥ 14,778 |
Significant accounting polic_19
Significant accounting policies - Advertising and promotion expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant accounting policies | |||
Advertising related expenses | ¥ 74,963 | ¥ 64,226 | ¥ 15,469 |
Significant accounting polic_20
Significant accounting policies - Employee benefits, Recently issued accounting pronouncements (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Summary of effect on consolidated balance sheet as result of adopting ASC 842 | |||||
Total lease liabilities | ¥ 2,063,728 | ¥ 2,125,000 | |||
Operating lease, ROU asset | ¥ 1,868,615 | $ 272,091 | 1,932,000 | $ 280,114 | |
ASU 2016-02 | Cumulative effect of the adoption of ASU | |||||
Summary of effect on consolidated balance sheet as result of adopting ASC 842 | |||||
Total lease liabilities | 2,399,061 | ||||
Operating lease, ROU asset | ¥ 2,200,280 | ¥ 2,200,280 |
Significant accounting polic_21
Significant accounting policies - Employee benefits, Statutory reserve and Segment reporting (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) segment | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Significant accounting policies | |||
Total amounts of such employee benefit expenses | ¥ 129,254 | ¥ 110,194 | ¥ 50,389 |
Amount of exemption and reduction for employee social benefits | ¥ 42,680 | ||
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 | ¥ 83,858 | ¥ 74,552 | |
Number of operating segments | segment | 1 |
Prepayments and other assets -
Prepayments and other assets - Prepayments and other current assets (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Prepayments and other assets | ||||||
Prepaid rental and property management fees | ¥ 6,625 | ¥ 5,467 | ¥ 12,112 | |||
Prepayment for purchase of goods and services | 7,978 | 5,990 | 12,247 | |||
VAT recoverable | 19,912 | 23,183 | 25,425 | |||
Receivables on behalf of manachised hotels | 157,964 | 81,473 | 103,495 | |||
Contract assets | 9,227 | 8,741 | 7,171 | |||
Deposits | 2,185 | 2,165 | 2,904 | |||
Others | 21,345 | 10,006 | 6,931 | |||
Subtotal | 225,236 | 137,025 | 170,285 | |||
Less: allowance for doubtful accounts | (3,124) | (3,124) | (3,124) | ¥ (3,441) | ||
Total | ¥ 222,112 | $ 32,342 | ¥ 133,901 | $ 19,414 | ¥ 167,161 |
Prepayments and other assets _2
Prepayments and other assets - Changes in the allowance for doubtful accounts (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2021 CNY (¥) | |
Prepayments and other assets | |
At the beginning of the year/period | ¥ 3,441 |
Allowance made during the year | 3,124 |
Allowance write-off during the year | (3,441) |
At the end of the year/period | ¥ 3,124 |
Prepayments and other assets _3
Prepayments and other assets - Other assets (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Prepayments and other assets | |||||
Long-term rental deposits | ¥ 76,248 | ¥ 75,954 | ¥ 75,604 | ||
Contract assets | 56,263 | 58,288 | 62,615 | ||
VAT recoverable | 2,069 | 6,744 | 8,800 | ||
Prepayments for purchase of property and equipment | 12,420 | 349 | 444 | ||
Deferred rental initial direct costs | 11,758 | ||||
Deferred initial public offering related costs | 23,360 | ||||
Total | ¥ 147,000 | $ 21,405 | ¥ 141,335 | $ 20,492 | ¥ 182,581 |
Property and equipment, net (De
Property and equipment, net (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Property and equipment, net | |||||||
Total cost | ¥ 867,337 | ¥ 863,699 | ¥ 859,289 | ||||
Less: accumulated depreciation | (524,775) | (503,399) | (420,274) | ||||
Property and equipment, net | 342,562 | 360,300 | 439,015 | $ 49,881 | $ 52,239 | ||
Depreciation expenses | 21,598 | ¥ 18,761 | 87,473 | 92,609 | ¥ 84,003 | ||
Leasehold improvements | |||||||
Property and equipment, net | |||||||
Total cost | 441,663 | 443,695 | 452,030 | ||||
Equipment, fixtures and furniture, and other fixed assets | |||||||
Property and equipment, net | |||||||
Total cost | ¥ 425,674 | ¥ 420,004 | ¥ 407,259 |
Intangible assets, net (Details
Intangible assets, net (Details) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Intangible assets, net | |||
Total cost | ¥ 11,055 | ¥ 11,055 | ¥ 8,250 |
Less: accumulated amortization | (5,817) | (5,518) | (4,430) |
Total | 5,238 | 5,537 | 3,820 |
Purchased software | |||
Intangible assets, net | |||
Total cost | ¥ 11,055 | ¥ 11,055 | ¥ 8,250 |
Intangible assets, net - Additi
Intangible assets, net - Additional Information (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible assets, net | |||||
Amortization expense recognized | ¥ 299 | ¥ 281 | ¥ 1,088 | ¥ 1,302 | ¥ 952 |
Intangible assets, net - Estima
Intangible assets, net - Estimated amortization expense of existing intangible assets (Details) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Estimated amortization expense of existing intangible assets | |||
2023 | ¥ 1,064 | ¥ 1,978 | |
2024 | 1,048 | 1,419 | |
2025 | 776 | 1,173 | |
2026 | 623 | 616 | |
2027 | 351 | ||
Total | ¥ 5,238 | ¥ 5,537 | ¥ 3,820 |
Lease - Additional Information
Lease - Additional Information (Details) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 item | Dec. 31, 2022 item | Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Lease | |||||||
Number of operated leased hotels | item | 33 | 33 | |||||
Lease concessions from landlords | ¥ 5,940 | ¥ 2,480 | ¥ 27,122 | ¥ 646 | ¥ 12,668 | ||
Total lease cost | ¥ 83,668 | ¥ 88,583 | ¥ 332,986 | ¥ 366,763 | ¥ 358,853 | ||
Minimum | |||||||
Lease | |||||||
Initial terms | 5 years | 5 years | 5 years | 5 years | |||
Maximum | |||||||
Lease | |||||||
Initial terms | 15 years | 15 years | 15 years | 15 years |
Lease - Supplemental Balance Sh
Lease - Supplemental Balance Sheet (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) |
Assets | ||||
Operating lease right-of-use assets | ¥ 1,868,615 | $ 272,091 | ¥ 1,932,000 | $ 280,114 |
Liabilities | ||||
Operating lease liabilities, current | 321,370 | 46,795 | 319,598 | 46,337 |
Operating lease liabilities, non-current | 1,742,358 | $ 253,707 | 1,805,402 | $ 261,759 |
Total lease liabilities | ¥ 2,063,728 | ¥ 2,125,000 |
Lease - Summary of lease cost (
Lease - Summary of lease cost (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease | |||||
Operating lease cost | ¥ 91,599 | ¥ 91,895 | ¥ 362,689 | ||
Variable lease cost | (4,743) | (247) | (20,684) | ||
Sublease income | (3,188) | (3,065) | (9,019) | ||
Total lease cost | ¥ 83,668 | ¥ 88,583 | ¥ 332,986 | ¥ 366,763 | ¥ 358,853 |
Lease - Supplemental cash flow
Lease - Supplemental cash flow information (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Lease | |||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | ¥ 86,435 | ¥ 81,495 | ¥ 341,348 |
Lease - Lease term and discount
Lease - Lease term and discount rate (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Lease | ||
Weighted-average remaining lease term (years) Operating leases | 7 years 8 months 1 day | 7 years 9 months 25 days |
Weighted-average discount rate Operating leases | 4.39% | 4.39% |
Lease - Future lease payments a
Lease - Future lease payments and lease liabilities (Details) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Maturities of operating lease liabilities | ||
2023 | ¥ 341,436 | ¥ 404,020 |
2024 | 304,783 | 341,576 |
2025 | 284,021 | 304,923 |
2026 | 280,851 | 284,170 |
Thereafter | 898,901 | 1,175,366 |
Total undiscounted lease payment | 2,427,577 | 2,510,055 |
Less: imputed interest(a) | (363,849) | (385,055) |
Present value of lease liabilities | ¥ 2,063,728 | ¥ 2,125,000 |
Goodwill (Details)
Goodwill (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill. | |||
Change in carrying amount of goodwill | ¥ 0 | ¥ 0 | ¥ 0 |
Impairment loss on goodwill | ¥ 0 | ¥ 0 | ¥ 0 |
Income tax (Details)
Income tax (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income tax | |||
Tax rate | 25% | 25% | 25% |
Foreign withholding tax rate | 10% | ||
Reduction as a result of expiry of net tax losses carried forward | ¥ (2,800) | ||
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 | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Income tax expense | |||||||
Current income tax expense | ¥ 74,300 | ¥ 73,613 | ¥ 71,933 | ||||
Deferred income tax (benefit) expense | 10,174 | $ 1,475 | (9,396) | (34,331) | |||
Total | ¥ 52,626 | $ 7,663 | ¥ 7,944 | ¥ 84,474 | $ 12,248 | ¥ 64,217 | ¥ 37,602 |
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 | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 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 | ¥ 70,698 | $ 10,292 | ¥ 15,154 | ¥ 180,556 | $ 26,180 | ¥ 203,887 | ¥ 75,424 |
Computed expected tax expense | 45,139 | 50,972 | 18,856 | ||||
Increase (decrease) in income taxes resulting from: | |||||||
Non-deductible expenses | 1,619 | 2,721 | 1,952 | ||||
Additional deduction for research and development expenses | (8,714) | (9,922) | (1,629) | ||||
Share-based compensation | 40,798 | ||||||
Tax loss expiration | 2,800 | ||||||
Change in valuation allowance | 1,085 | 19,066 | 17,905 | ||||
Others | 1,747 | 1,380 | 518 | ||||
Total | ¥ 52,626 | $ 7,663 | ¥ 7,944 | ¥ 84,474 | $ 12,248 | ¥ 64,217 | ¥ 37,602 |
Income tax - Deferred taxes (De
Income tax - Deferred taxes (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets (liabilities) | |||
Tax losses carried forward | ¥ 77,103 | ¥ 81,376 | |
Allowance for doubtful accounts | 6,523 | 5,339 | |
Accrued payroll and other expenses | 8,783 | 7,972 | |
Deferred revenue | 74,816 | 73,473 | |
Contract costs | (16,818) | (15,604) | |
Deferred rent | 6,117 | ||
Deferred rental initial direct costs | 2,939 | ||
Operating lease liabilities | 486,083 | ||
Operating lease right-of-use assets | (483,000) | ||
Property and equipment | 33,280 | 41,438 | |
Others | 3,203 | 1,890 | |
Total gross deferred tax assets | 189,973 | 199,062 | |
Valuation allowance on deferred tax assets | (77,440) | (76,355) | ¥ (57,289) |
Deferred tax assets, net of valuation allowance | ¥ 112,533 | ¥ 122,707 |
Income tax - Deferred taxes, re
Income tax - Deferred taxes, reported in balance sheets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Income tax | |||||
Deferred tax assets | ¥ 112,533 | ¥ 107,509 | $ 15,655 | $ 16,315 | ¥ 122,707 |
Net deferred tax assets | 112,533 | ¥ 122,707 | |||
Total amount of undistributed earnings from the PRC subsidiaries for which no withholding tax has been accrued | 831,088 | ||||
Unrecognized deferred tax liability | ¥ 83,109 | ||||
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, 2022 | Dec. 31, 2021 | |
Movement of the valuation allowance | ||
Balance at the beginning of the year | ¥ 76,355 | ¥ 57,289 |
Addition during the year | 3,885 | 19,066 |
Reduction as a result of expiry of tax losses carried forward | (2,800) | |
Balance at the end of the year | ¥ 77,440 | ¥ 76,355 |
Income tax - Net operating loss
Income tax - Net operating losses carry forward (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
Income tax | |
Net operating losses carry forward | ¥ 308,412 |
Net operating losses carry forward, expiration on December 31, 2023 | 16,592 |
Net operating losses carry forward, expiration on December 31, 2024 | 39,288 |
Net operating losses carry forward, expiration on December 31, 2025 | 98,814 |
Net operating losses carry forward, expiration on December 31, 2026 | 90,624 |
Net operating losses carry forward, expiration on December 31, 2027 | ¥ 63,094 |
Accrued expenses and other pa_3
Accrued expenses and other payables (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Accrued expenses and other payables | |||||
Deposits | ¥ 55,793 | ¥ 53,203 | ¥ 46,961 | ||
Payments received on behalf of manachised hotels | 410,444 | 199,395 | 287,516 | ||
Deferred rent | 6,483 | ||||
VAT and other taxes payable | 26,569 | 19,871 | 22,120 | ||
Payable for purchase of property and equipment | 8,092 | 12,617 | 38,357 | ||
Others | 31,475 | 45,196 | 45,943 | ||
Total | ¥ 532,373 | $ 77,520 | ¥ 330,282 | $ 47,886 | ¥ 447,380 |
Borrowings (Details)
Borrowings (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Borrowings | |||||
Short-term borrowings | ¥ 181,848 | $ 26,479 | ¥ 142,828 | $ 20,708 | ¥ 64,808 |
Current portion of long-term borrowings | 29,130 | 4,242 | 29,130 | 4,223 | 1,000 |
Long-term borrowings, non-current portion | 2,000 | $ 291 | 2,000 | $ 290 | 43,630 |
Bank loans | |||||
Borrowings | |||||
Short-term borrowings | 181,000 | 141,000 | 62,000 | ||
Current portion of long-term borrowings | 29,130 | 29,130 | 1,000 | ||
Long-term borrowings, non-current portion | 41,630 | ||||
Loan from third parties | |||||
Borrowings | |||||
Short-term borrowings | 848 | 1,828 | 2,808 | ||
Long-term borrowings, non-current portion | ¥ 2,000 | ¥ 2,000 | ¥ 2,000 |
Borrowings - Schedule of debt (
Borrowings - Schedule of debt (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Schedule of debt | ||
Credit facilities of liabilities | ¥ 300,000 | ¥ 300,000 |
Credit facilities of revenues | 2,500,000 | 2,500,000 |
Credit facilities | Third party banks | ||
Schedule of debt | ||
Maximum borrowing capacity | 400,000 | 400,000 |
Debt Instrument, Unused Borrowing Capacity, Amount | ¥ 278,870 | ¥ 279,000 |
Borrowings - Weighted average i
Borrowings - Weighted average interest rates (Details) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Borrowings | |||
Weighted average interest rates of short-term borrowings | 3.60% | 3.70% | 4.10% |
Weighted average interest rates of long-term borrowings | 4.90% | 4.90% | 4.60% |
Borrowings - Aggregate maturiti
Borrowings - Aggregate maturities of the above long-term borrowings (Details) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Aggregate maturities of the above long-term borrowings | ||
2023 | ¥ 0 | ¥ 29,130 |
2024 | 500 | |
2025 | 200 | 500 |
2026 | 200 | |
2027 and thereafter | 1,300 | |
Total | ¥ 31,130 | ¥ 31,130 |
Other non-current liabilities_2
Other non-current liabilities (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Other non-current liabilities | |||||
Deposits received from franchisees | ¥ 137,326 | ¥ 129,101 | ¥ 107,034 | ||
Deferred rent | 204,056 | ||||
Asset retirement obligations (Note 2(t)) | 3,820 | 3,773 | 3,597 | ||
Others | 8,817 | 8,889 | 2,920 | ||
Total | ¥ 149,963 | $ 21,836 | ¥ 141,763 | $ 20,554 | ¥ 317,607 |
Ordinary shares with preferen_3
Ordinary shares with preference rights (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2022 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) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Series C Shares activities | |||
Accretion to the redemption value | ¥ 15,115 | ¥ 52,881 | |
Reclassification of redeemable Class A ordinary shares to Class A ordinary shares | [1] | (896,508) | |
Series C Shares | |||
Series C Shares activities | |||
Balance at the beginning of the year | 713,893 | 661,012 | |
Accretion to the redemption value | 15,115 | 52,881 | |
Reclassification of redeemable Class A ordinary shares to Class A ordinary shares | ¥ (729,008) | ||
Balance at the end of the year | ¥ 713,893 | ||
[1]Represent Series B and C shares of Atour Shanghai prior to Restructuring (see Note 12) |
Revenue -Disaggregation of Reve
Revenue -Disaggregation of Revenue (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of revenue | |||||
Disaggregation of revenue | ¥ 773,936 | ¥ 452,114 | ¥ 2,262,983 | ¥ 2,147,577 | ¥ 1,566,552 |
Upfront franchise fees | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 10,693 | 8,036 | 38,066 | 32,356 | 29,841 |
Continuing franchise fees | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 278,429 | 151,726 | 757,158 | 554,227 | 351,933 |
Sales of hotel supplies and other products | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 140,679 | 102,267 | 516,865 | 514,557 | 421,217 |
Other transactions with the franchisees | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 16,997 | 11,776 | 48,754 | 119,161 | 123,316 |
Manachised hotels revenues | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 446,798 | 273,805 | 1,360,843 | 1,220,301 | 926,307 |
Room revenues | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 173,754 | 100,788 | 505,557 | 579,946 | 457,173 |
Food and beverage revenues | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 12,263 | 9,580 | 43,313 | 43,641 | 36,244 |
Others | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 1,293 | 1,213 | 4,059 | 6,651 | 3,053 |
Leased hotels revenues | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 187,310 | 111,581 | 552,929 | 630,238 | 496,470 |
Retail revenues | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 112,933 | 41,175 | 253,607 | 191,596 | 70,877 |
Others | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | ¥ 26,895 | ¥ 25,553 | ¥ 95,604 | ¥ 105,442 | ¥ 72,898 |
Revenue - Change in accounts re
Revenue - Change in accounts receivable from contracts with customers (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Revenue | ||||||
Accounts receivable | ¥ 133,708 | ¥ 152,167 | ¥ 114,692 | |||
Less: Allowance for doubtful accounts | (19,243) | (19,468) | (14,731) | ¥ (14,966) | ||
Accounts receivable, net | ¥ 114,465 | $ 16,667 | ¥ 132,699 | $ 19,239 | ¥ 99,961 |
Revenue - Changes in allowance
Revenue - Changes in allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | |||
At the beginning of the year/period | ¥ 19,468 | ¥ 14,731 | ¥ 14,966 |
Allowance (reversed) made during the year | (1,596) | 4,737 | (235) |
At the end of the year/period | ¥ 19,243 | ¥ 19,468 | ¥ 14,731 |
Revenue - Contract assets (Deta
Revenue - Contract assets (Details) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Contract assets | |||
Current | ¥ 9,227 | ¥ 8,741 | ¥ 7,171 |
Non-current | 56,263 | 58,288 | 62,615 |
Contract assets | ¥ 65,490 | ¥ 67,029 | ¥ 69,786 |
Revenue - Deferred revenue from
Revenue - Deferred revenue from contracts with customers (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Deferred revenue from contracts with customers | |||||
Current | ¥ 228,812 | $ 33,318 | ¥ 202,996 | $ 29,432 | ¥ 233,735 |
Non-current | 290,302 | $ 42,271 | 277,841 | $ 40,283 | 267,909 |
Deferred revenue | ¥ 519,114 | ¥ 480,837 | ¥ 501,644 |
Revenue - Deferred revenue bala
Revenue - Deferred revenue balances (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred revenue from contracts with customers | |||||
Upfront franchise fees | ¥ 333,905 | ¥ 319,537 | ¥ 303,216 | ||
Advances from sales of hotel supplies and other products | 106,087 | 92,144 | 111,633 | ||
Loyalty program | 33,346 | 36,877 | 48,691 | ||
Others | 45,776 | 32,279 | 38,104 | ||
Deferred revenue | 519,114 | 480,837 | 501,644 | ||
Recognized revenues which were included in deferred revenue | ¥ 64,502 | ¥ 66,751 | ¥ 170,768 | ¥ 160,633 | ¥ 143,570 |
Revenue - Revenue allocated to
Revenue - Revenue allocated to remaining performance obligation (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue allocated to remaining performance obligation | |||
Deferred revenues related to upfront franchise fees which are expected to be recognized as revenues over the remaining contract periods | ¥ 333,905 | ¥ 319,537 | ¥ 303,216 |
Practical expedient, not to disclose the transaction price | false | false | |
Minimum | |||
Revenue allocated to remaining performance obligation | |||
Remaining contract period | 1 year | 1 year | |
Maximum | |||
Revenue allocated to remaining performance obligation | |||
Remaining contract period | 20 years | 20 years |
Net (loss) income per ordinar_3
Net (loss) income per ordinary share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | ||
Numerator: | ||||||||
Net income attributable to the Company | ¥ 17,875 | $ 2,603 | ¥ 7,824 | ¥ 98,099 | $ 14,223 | ¥ 145,054 | ¥ 42,051 | |
Accretion to the redemption value of redeemable Class A ordinary shares | ¥ | [1] | 15,115 | 52,881 | |||||
Net income (loss) attributable to ordinary shares | ¥ 98,099 | $ 14,223 | ¥ 129,939 | ¥ (10,830) | ||||
Denominator: | ||||||||
Weighted average number of ordinary shares (for basic calculation) | 393,958,225 | 393,958,225 | 376,970,454 | 379,321,522 | 379,321,522 | 323,163,367 | 171,589,918 | |
Effect of dilutive share-based awards | 18,352,391 | 18,352,391 | 2,277,167 | 2,277,167 | ||||
Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation) | 412,310,616 | 412,310,616 | 376,970,454 | 381,598,689 | 381,598,689 | 323,163,367 | 171,589,918 | |
Basic net (loss) income per ordinary share (in RMB) | (per share) | ¥ 0.05 | $ 0.01 | ¥ 0.02 | ¥ 0.26 | $ 0.04 | ¥ 0.40 | ¥ (0.06) | |
Diluted net (loss) income per ordinary share (in RMB) | (per share) | ¥ 0.04 | $ 0.01 | ¥ 0.02 | ¥ 0.26 | $ 0.04 | ¥ 0.40 | ¥ (0.06) | |
[1]Represent Series C shares of Atour Shanghai prior to Restructuring (see Note 12) |
Net (loss) income per ordinar_4
Net (loss) income per ordinary share - Additional Information (Details) - shares | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted average number of ordinary shares (for basic calculation) | 393,958,225 | 376,970,454 | 379,321,522 | 323,163,367 | 171,589,918 |
Share options diluted net income per ordinary share | 16,637 | 17,740,297 | 660,000 | 17,740,297 | 11,663,920 |
Class A ordinary shares | |||||
Weighted average number of ordinary shares (for basic calculation) | 214,203,200 |
Share based compensation - Addi
Share based compensation - Additional Information (Details) - CNY (¥) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2022 | Apr. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2017 | |
Aggregate Intrinsic Value | ||||||
Share options granted | 4,033,274 | |||||
Incremental share-based compensation expense | ¥ 0 | |||||
Share-based compensation expense | ¥ 96,605,000 | ¥ 141,580,000 | ¥ 163,193,000 | |||
2017 Share Incentive Plan | ||||||
Aggregate Intrinsic Value | ||||||
Ordinary shares reserved for issuance | 51,200,000 | |||||
Term of the options | 10 years | |||||
Share options granted | 14,196,882 | |||||
Public Company Plan | ||||||
Aggregate Intrinsic Value | ||||||
Ordinary shares reserved for issuance | 51,029,546 | |||||
Term of the options | 10 years | 10 years | ||||
Public Company Plan | Share Options Granted prior To The IPO [Member] | Minimum | ||||||
Aggregate Intrinsic Value | ||||||
Vesting period | 1 year | 1 year | ||||
Public Company Plan | Share Options Granted prior To The IPO [Member] | Maximum | ||||||
Aggregate Intrinsic Value | ||||||
Vesting period | 4 years | 4 years | ||||
Public Company Plan | Share Options Granted Post IPO [Member] | Minimum | ||||||
Aggregate Intrinsic Value | ||||||
Vesting period | 1 year | 1 year | ||||
Public Company Plan | Share Options Granted Post IPO [Member] | Maximum | ||||||
Aggregate Intrinsic Value | ||||||
Vesting period | 4 years | 4 years |
Share based compensation - Summ
Share based compensation - Summary of activities of the share options (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of share options | ||||||
Outstanding at the beginning | 21,444,931 | 17,740,297 | 17,740,297 | |||
Grant | 4,033,274 | |||||
Prior to IPO | 640,095 | |||||
Post IPO | 3,628,971 | |||||
Forfeiture | (1,000) | (564,432) | ||||
Outstanding at the end | 17,740,297 | 25,477,205 | 21,444,931 | 17,740,297 | ||
Exercisable | 23,912,776 | 19,681,140 | ||||
Weighted average exercise price | ||||||
Outstanding at the beginning | ¥ 5.78 | ¥ 5.06 | ¥ 5.06 | |||
Prior to IPO | 10.33 | |||||
Post IPO | 8.41 | |||||
Forfeiture | 5.35 | |||||
Outstanding at the end | ¥ 5.06 | 8.11 | 5.78 | ¥ 5.06 | ||
Exercisable | ¥ 8.06 | ¥ 5.52 | ||||
Weighted remaining contractual years | 9 years 2 months 26 days | 8 years 6 months 14 days | 8 years 4 months 6 days | |||
Exercisable | 8 years 6 months 21 days | 8 years 6 months 21 days | ||||
Aggregate intrinsic value | ¥ 473,237 | ¥ 1,321,995 | ¥ 764,494 | ¥ 473,237 | ||
Exercisable | ¥ 1,241,983 | ¥ 706,750 | ||||
Weighted average grant date fair value | ¥ 34.61 | ¥ 0 | ¥ 22.32 | ¥ 11.93 | ¥ 6.02 |
Share based compensation - Assu
Share based compensation - Assumptions used in estimative the fair value of share options (Details) ¥ / shares in Units, ¥ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 | Mar. 31, 2023 ¥ / shares | Dec. 31, 2022 CNY (¥) item ¥ / shares | Dec. 31, 2021 item ¥ / shares | Dec. 31, 2020 item ¥ / shares | |
Aggregate Intrinsic Value | |||||
Risk-free rate of return, minimum | 3.80% | 3.10% | 1.70% | 2.90% | |
Risk-free rate of return, maximum | 4% | 3.20% | 3.10% | ||
Volatility, minimum | 40.20% | 38.98% | 34.61% | 34.30% | |
Volatility, maximum | 40.40% | 40.44% | 37.64% | 34.40% | |
Expected dividend yield | 0% | 0% | 0% | 0% | |
Exercise multiple | item | 2.2 | 2.2 | 2.2 | ||
Expected term | 10 years | 10 years | 10 years | 10 years | |
Total unrecognized compensation expense | ¥ | ¥ 29,131 | ||||
Remaining weighted-average vesting period | 3 years 1 month 2 days | ||||
Total fair value at grant date of share options held by the company's employees | ¥ | ¥ 158,183 | ||||
Minimum | |||||
Aggregate Intrinsic Value | |||||
Fair value of ordinary share (in RMB) | ¥ / shares | ¥ 42 | ¥ 28.80 | ¥ 11.93 | ¥ 10.54 | |
Exercise multiple | 0.022 | ||||
Maximum | |||||
Aggregate Intrinsic Value | |||||
Fair value of ordinary share (in RMB) | ¥ / shares | ¥ 54 | ¥ 43.56 | ¥ 31.74 | ¥ 10.93 | |
Exercise multiple | 0.028 |
Share based compensation - su_2
Share based compensation - summary of share-based compensation expenses recognized (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Nov. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Share based compensation | |||
Total | ¥ 96,605 | ¥ 141,580 | ¥ 163,193 |
Hotel operating costs | |||
Share based compensation | |||
Total | 124 | 2,111 | |
Selling and marketing expenses | |||
Share based compensation | |||
Total | 38 | 618 | |
General and administrative expenses | |||
Share based compensation | |||
Total | ¥ 141,418 | ¥ 160,464 |
Equity (Details)
Equity (Details) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2021 CNY (¥) shares | Feb. 28, 2021 Vote $ / shares shares | Dec. 31, 2021 CNY (¥) | Mar. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | Jan. 31, 2021 shares | Dec. 31, 2020 shares | |
Ordinary shares | ||||||||
Ordinary shares, Shares authorized | 3,000,000,000 | 500,000,000 | ||||||
Ordinary shares, Par value per share | $ / shares | $ 0.0001 | |||||||
Cash consideration for share repurchase | ¥ | ¥ 111,260 | ¥ 111,260 | ||||||
Number of shares repurchased | 8,822,664 | |||||||
Distribution to shareholders | ¥ | ¥ 20,645 | |||||||
Ordinary shares prior to restructuring | ||||||||
Ordinary shares | ||||||||
Ordinary shares, Shares issued | 171,589,918 | |||||||
Ordinary shares, Shares outstanding | 171,589,918 | |||||||
Series A Shares | ||||||||
Ordinary shares | ||||||||
Ordinary shares, Shares issued | 60,912,400 | |||||||
Ordinary shares, Shares outstanding | 60,912,400 | |||||||
Series B Shares | ||||||||
Ordinary shares | ||||||||
Ordinary shares, Shares issued | 48,394,000 | |||||||
Ordinary shares, Shares outstanding | 48,394,000 | |||||||
Series C Shares | ||||||||
Ordinary shares | ||||||||
Ordinary shares, Shares issued | 104,896,800 | |||||||
Ordinary shares, Shares outstanding | 104,896,800 | |||||||
Class A ordinary shares | ||||||||
Ordinary shares | ||||||||
Ordinary shares, Shares issued | 319,677,037 | 319,677,037 | 303,289,537 | |||||
Ordinary shares, Shares outstanding | 319,677,037 | 319,677,037 | 303,289,537 | |||||
Ordinary shares, Shares authorized | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | ||||
Ordinary shares, Par value per share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Ordinary shares, Number of votes per share | Vote | 1 | |||||||
Class B ordinary shares | ||||||||
Ordinary shares | ||||||||
Ordinary shares, Shares issued | 73,680,917 | 73,680,917 | 73,680,917 | |||||
Ordinary shares, Shares outstanding | 73,680,917 | 73,680,917 | 73,680,917 | |||||
Ordinary shares, Shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Ordinary shares, Par value per share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Ordinary shares, Number of votes per share | Vote | 10 |
Equity - Initial public offerin
Equity - Initial public offering (Details) - 1 months ended Nov. 30, 2022 - Initial public offering ¥ in Thousands | CNY (¥) shares | $ / shares |
Ordinary shares | ||
Number of shares issued | shares | 16,387,500 | |
Price per share | $ / shares | $ 3.67 | |
Net proceeds from issuance | ¥ | ¥ 365,784 | |
American depositary shares | ||
Ordinary shares | ||
Number of shares issued | shares | 5,462,500 | |
Price per share | $ / shares | $ 11 |
Related party transactions - Ma
Related party transactions - Major transactions with related parties (Details) - Trip.com Group - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Hotel reservation payments collected on behalf of the Group | |||||
Related party transactions | |||||
Amounts of transaction | ¥ 290,397 | ¥ 88,757 | ¥ 692,771 | ¥ 588,238 | ¥ 257,963 |
Hotel reservation service fees | |||||
Related party transactions | |||||
Amounts of transaction | ¥ 6,159 | ¥ 2,839 | ¥ 11,334 | ¥ 21,276 | ¥ 14,473 |
Related party transactions - Ba
Related party transactions - Balances with related parties (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Related party transactions | |||||
Amounts due from related parties | ¥ 102,885 | $ 14,981 | ¥ 53,630 | $ 7,776 | ¥ 51,937 |
Amounts due to related parties | 5,607 | $ 816 | 3,004 | $ 436 | 1,772 |
Trip.com Group | |||||
Related party transactions | |||||
Amounts due from related parties | 102,885 | 53,630 | 51,937 | ||
Amounts due to related parties | ¥ 5,607 | ¥ 3,004 | ¥ 1,772 |
Contingencies - Capital commitm
Contingencies - Capital commitments (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | ||
Sep. 30, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | |
Contingencies | |||
Commitments related to leasehold improvements and installation of equipment for hotel operations which is expected to be incurred within one year | ¥ 27,700 | ¥ 1,289 | |
Loss in excess of the amount accrued | ¥ 12,333 |
Subsequent events (Details)
Subsequent events (Details) - Subsequent events - Public Company Plan - Options - Certain executive officer ¥ in Thousands | 1 Months Ended |
Mar. 31, 2023 CNY (¥) shares | |
Subsequent Event [Line Items] | |
Number of shares approved to grant | shares | 4,000,000 |
Estimated total grant-date fair value | ¥ | ¥ 138,000 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Current assets | ||||||||
Cash and cash equivalents | ¥ 1,974,927 | $ 287,572 | ¥ 1,589,161 | $ 230,407 | ¥ 1,011,591 | ¥ 1,038,583 | ¥ 824,546 | |
Short-term investments | 158,374 | 23,061 | 157,808 | 22,880 | ||||
Accounts receivable, net of allowance of RMB19,468 and RMB19,243 as of December 31, 2022 and March 31, 2023, respectively | 114,465 | 16,667 | 132,699 | 19,239 | 99,961 | |||
Prepayments and other current assets | 222,112 | 32,342 | 133,901 | 19,414 | 167,161 | |||
Amounts due from related parties | 102,885 | 14,981 | 53,630 | 7,776 | 51,937 | |||
Inventories | 65,079 | 9,476 | 57,460 | 8,331 | 58,575 | |||
Total current assets | 2,637,842 | 384,099 | 2,124,659 | 308,047 | 1,416,217 | |||
Non-current assets | ||||||||
Restricted cash | 946 | 138 | 946 | 137 | 946 | 946 | 8,590 | |
Contract costs | 72,278 | 10,524 | 67,270 | 9,753 | 62,415 | |||
Property and equipment, net | 342,562 | 49,881 | 360,300 | 52,239 | 439,015 | |||
Operating lease right-of-use assets | 1,868,615 | 272,091 | 1,932,000 | 280,114 | ||||
Intangible assets, net | 5,238 | 763 | 5,537 | 803 | 3,820 | |||
Goodwill | 17,446 | 2,540 | 17,446 | 2,529 | 17,446 | |||
Other assets | 147,000 | 21,405 | 141,335 | 20,492 | 182,581 | |||
Deferred tax assets | 107,509 | 15,655 | 112,533 | 16,315 | 122,707 | |||
Total non-current assets | 2,561,594 | 372,997 | 2,637,367 | 382,382 | 828,930 | |||
Total assets | 5,199,436 | 757,096 | 4,762,026 | 690,429 | 2,245,147 | |||
Current liabilities | ||||||||
Operating lease liabilities, current | 321,370 | 46,795 | 319,598 | 46,337 | ||||
Accounts payable | 217,904 | 31,731 | 184,901 | 26,808 | 161,277 | |||
Deferred revenue, current | 228,812 | 33,318 | 202,996 | 29,432 | 233,735 | |||
Salary and welfare payable | 92,770 | 13,508 | 103,539 | 15,012 | 95,238 | |||
Accrued expenses and other payables | 532,373 | 77,520 | 330,282 | 47,886 | 447,380 | |||
Income taxes payable | 61,049 | 8,889 | 31,336 | 4,543 | 46,176 | |||
Short-term borrowings | 181,848 | 26,479 | 142,828 | 20,708 | 64,808 | |||
Current portion of long-term borrowings | 29,130 | 4,242 | 29,130 | 4,223 | 1,000 | |||
Amounts due to related parties | 5,607 | 816 | 3,004 | 436 | 1,772 | |||
Total current liabilities | 1,670,863 | 243,298 | 1,347,614 | 195,385 | 1,051,386 | |||
Non-current liabilities | ||||||||
Operating lease liabilities, non-current | 1,742,358 | 253,707 | 1,805,402 | 261,759 | ||||
Deferred revenue, non-current | 290,302 | 42,271 | 277,841 | 40,283 | 267,909 | |||
Long-term borrowings, non-current portion | 2,000 | 291 | 2,000 | 290 | 43,630 | |||
Other non-current liabilities | 149,963 | 21,836 | 141,763 | 20,554 | 317,607 | |||
Total non-current liabilities | 2,184,623 | 318,105 | 2,227,006 | 322,886 | 629,146 | |||
Total liabilities | 3,855,486 | 561,403 | 3,574,620 | 518,271 | 1,680,532 | |||
Shareholders' equity | ||||||||
Additional paid in capital | 1,427,769 | 207,899 | 1,286,189 | 186,480 | 764,502 | |||
Accumulated deficit | (61,457) | (8,949) | (78,304) | (11,353) | (176,403) | |||
Accumulated other comprehensive loss | (12,945) | (1,885) | (10,865) | (1,575) | (8,947) | |||
Total equity attributable to shareholders of the Company | 1,353,652 | 197,106 | 1,197,305 | 173,593 | 579,426 | |||
Non-controlling interests | (9,702) | (1,413) | (9,899) | (1,435) | (14,811) | |||
Total shareholders' equity | 1,343,950 | 195,693 | 1,187,406 | 172,158 | ¥ 571,606 | 564,615 | ¥ (315,596) | ¥ (299,757) |
Commitments and contingencies | ||||||||
Total liabilities and shareholders' equity | 5,199,436 | 757,096 | 4,762,026 | 690,429 | 2,245,147 | |||
Class A ordinary shares | ||||||||
Shareholders' equity | ||||||||
Ordinary shares | 229 | 33 | 229 | 33 | 218 | |||
Class B ordinary shares | ||||||||
Shareholders' equity | ||||||||
Ordinary shares | ¥ 56 | $ 8 | ¥ 56 | $ 8 | ¥ 56 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Mar. 31, 2023 CNY (¥) shares | Mar. 31, 2023 $ / shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 $ / shares | Feb. 28, 2021 $ / shares shares | Jan. 31, 2021 shares | Dec. 31, 2020 CNY (¥) |
Accounts receivable, allowance | ¥ | ¥ 19,243 | ¥ 19,468 | ¥ 14,731 | ¥ 14,966 | |||||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||||||||
Ordinary shares, shares authorized | 3,000,000,000 | 500,000,000 | |||||||
Class A ordinary shares | |||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares, shares authorized | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | |||||
Ordinary shares, shares issued | 319,677,037 | 319,677,037 | 303,289,537 | ||||||
Ordinary shares, shares outstanding | 319,677,037 | 319,677,037 | 303,289,537 | ||||||
Class B ordinary shares | |||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Ordinary shares, shares issued | 73,680,917 | 73,680,917 | 73,680,917 | ||||||
Ordinary shares, shares outstanding | 73,680,917 | 73,680,917 | 73,680,917 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | ||
Revenues: | ||||||||
Net revenues | ¥ 773,936 | $ 112,694 | ¥ 452,114 | ¥ 2,262,983 | $ 328,102 | ¥ 2,147,577 | ¥ 1,566,552 | |
Operating costs and expenses: | ||||||||
Hotel operating costs | (381,632) | (55,570) | (323,168) | (1,393,312) | (202,011) | (1,419,578) | (1,150,101) | |
Other operating costs | (71,654) | (10,434) | (31,923) | (186,685) | (27,068) | (163,324) | (78,746) | |
Selling and marketing expenses | (56,009) | (8,156) | (23,776) | (139,929) | (20,288) | (124,210) | (70,972) | |
General and administrative expenses | (193,204) | (28,133) | (45,518) | (350,009) | (50,746) | (197,064) | (131,366) | |
Technology and development expenses | (16,790) | (2,445) | (17,808) | (66,182) | (9,594) | (52,121) | (33,649) | |
Total operating costs and expenses | (719,289) | (104,738) | (442,193) | (2,136,117) | (309,707) | (1,973,892) | (1,526,712) | |
Other operating income | 7,230 | 1,053 | 3,099 | 38,094 | 5,523 | 22,371 | 23,429 | |
Income from operations | 61,877 | 9,009 | 13,020 | 164,960 | 23,918 | 196,056 | 63,269 | |
Interest income | 4,843 | 705 | 1,917 | 14,456 | 2,097 | 6,722 | 707 | |
Gain from short-term investments | 4,110 | 598 | 1,760 | 8,455 | 1,226 | 8,745 | 11,046 | |
Change in fair value of short-term investments | 1,244 | 181 | ||||||
Interest expenses | (1,927) | (281) | (1,490) | (6,501) | (943) | (7,937) | (1,481) | |
Other (expenses) income, net | 551 | 80 | (53) | (814) | (118) | 301 | 1,883 | |
Income before income tax | 70,698 | 10,292 | 15,154 | 180,556 | 26,180 | 203,887 | 75,424 | |
Income tax expense | (52,626) | (7,663) | (7,944) | (84,474) | (12,248) | (64,217) | (37,602) | |
Net income | 18,072 | 2,629 | 7,210 | 96,082 | 13,932 | 139,670 | 37,822 | |
Less: net (loss) income attributable to non-controlling interests | 197 | 26 | (614) | (2,017) | (291) | (5,384) | (4,229) | |
Net income attributable to the Company | 17,875 | 2,603 | 7,824 | 98,099 | 14,223 | 145,054 | 42,051 | |
Less: accretion of redeemable Class A ordinary shares | ¥ | [1] | (15,115) | (52,881) | |||||
Net (loss) income available to shareholders of the Company | 98,099 | 14,223 | 129,939 | (10,830) | ||||
Net income | 18,072 | 2,629 | 7,210 | 96,082 | 13,932 | 139,670 | 37,822 | |
Other comprehensive loss | ||||||||
Foreign currency translation adjustments, net of nil income taxes | (2,080) | (303) | (219) | (1,918) | (279) | (8,947) | ||
Other comprehensive loss, net of income taxes | (2,080) | (303) | (219) | (1,918) | (279) | (8,947) | ||
Total comprehensive income | 15,992 | 2,326 | 6,991 | 94,164 | 13,653 | 130,723 | 37,822 | |
Comprehensive (loss) income attributable to non-controlling interests | 197 | 26 | (614) | (2,017) | (291) | (5,384) | (4,229) | |
Comprehensive income attributable to the Company | ¥ 15,795 | $ 2,300 | ¥ 7,605 | ¥ 96,181 | $ 13,944 | ¥ 136,107 | ¥ 42,051 | |
Basic net (loss) income per ordinary share (in RMB) | (per share) | ¥ 0.05 | $ 0.01 | ¥ 0.02 | ¥ 0.26 | $ 0.04 | ¥ 0.40 | ¥ (0.06) | |
Diluted net (loss) income per ordinary share (in RMB) | (per share) | ¥ 0.04 | $ 0.01 | ¥ 0.02 | ¥ 0.26 | $ 0.04 | ¥ 0.40 | ¥ (0.06) | |
Weighted average ordinary share used in calculating net income (loss) per share, Basic | 393,958,225 | 393,958,225 | 376,970,454 | 379,321,522 | 379,321,522 | 323,163,367 | 171,589,918 | |
Weighted average ordinary share used in calculating net income (loss) per share, Diluted | 412,310,616 | 412,310,616 | 376,970,454 | 381,598,689 | 381,598,689 | 323,163,367 | 171,589,918 | |
Manachised hotels | ||||||||
Revenues: | ||||||||
Net revenues | ¥ 446,798 | $ 65,059 | ¥ 273,805 | ¥ 1,360,843 | $ 197,304 | ¥ 1,220,301 | ¥ 926,307 | |
Leased hotels | ||||||||
Revenues: | ||||||||
Net revenues | 187,310 | 27,274 | 111,581 | 552,929 | 80,167 | 630,238 | 496,470 | |
Retail revenues and others | ||||||||
Revenues: | ||||||||
Net revenues | ¥ 139,828 | $ 20,361 | ¥ 66,728 | ¥ 349,211 | $ 50,631 | ¥ 297,038 | ¥ 143,775 | |
[1]Represent Series C shares of Atour Shanghai prior to Restructuring (see Note 12) |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||
Foreign currency translation adjustments, income taxes | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Cash flows from operating activities: | ||||||||
Net cash (used in) generated from operating activities | $ 52,664 | ¥ 361,657 | ¥ (75,202) | $ 41,129 | ¥ 283,677 | ¥ 417,879 | ¥ 118,670 | |
Cash flows from investing activities: | ||||||||
Payment for purchases of property and equipment | (2,566) | (17,619) | (8,907) | (5,281) | (36,425) | (63,973) | (112,750) | |
Payment for purchases of intangible assets | (378) | (407) | (2,805) | (1,997) | (1,223) | |||
Payment for purchases of short-term investments | (193,423) | (1,328,350) | (672,850) | (424,955) | (2,931,000) | (4,303,920) | (3,395,902) | |
Proceeds from maturities of short-term investments | 194,021 | 1,332,460 | 674,610 | 402,773 | 2,778,005 | 4,312,665 | 3,419,348 | |
Repayment of loans from third parties | 15,000 | |||||||
Loans to third parties | (15,000) | |||||||
Net cash used in investing activities | (1,968) | (13,509) | (7,525) | (27,870) | (192,225) | (42,225) | (105,527) | |
Cash flows from financing activities: | ||||||||
Acquisition of non-controlling interest | (51) | (350) | (780) | |||||
Proceeds from borrowings | 5,824 | 40,000 | 58,000 | 28,852 | 199,000 | 218,434 | 127,507 | |
Repayment of borrowings | (143) | (980) | (1,230) | (19,498) | (134,480) | (230,430) | (78,716) | |
Repurchase of ordinary shares | (111,260) | |||||||
Distribution to shareholders | (20,645) | |||||||
Proceeds from initial public offering | 58,005 | 400,068 | ||||||
Payment for initial public offering costs | (318) | (1,149) | (7,928) | (17,179) | ||||
Net cash generated from financing activities | 5,681 | 39,020 | 56,452 | 66,159 | 456,310 | (161,080) | 48,011 | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (205) | (1,402) | (717) | 408 | 2,816 | (8,181) | ||
Net (decrease) increase in cash and cash equivalents and restricted cash | 56,172 | 385,766 | (26,992) | 79,826 | 550,578 | 206,393 | 61,154 | |
Cash and cash equivalents and restricted cash at the beginning of the period | 230,544 | 1,590,107 | 1,039,529 | 150,718 | 1,039,529 | 833,136 | 771,982 | |
Cash and cash equivalents and restricted cash at the end of the period | 287,710 | 1,975,873 | 1,012,537 | 230,544 | 1,590,107 | 1,039,529 | 833,136 | |
Supplemental disclosure of cash flow information: | ||||||||
Income tax paid | 2,578 | 17,708 | 4,623 | 12,003 | 82,784 | 88,946 | 38,955 | |
Interest paid | 371 | 2,549 | 1,337 | 674 | 4,647 | 5,701 | 1,754 | |
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Payable for purchase of property and equipment | 1,178 | 8,092 | 25,241 | 1,829 | 12,617 | 38,357 | 41,941 | |
Interest payable | 365 | ¥ 2,508 | 3,426 | 454 | 3,130 | 1,276 | 2,414 | |
Payable for initial public offering costs | 8,591 | 1,331 | ¥ 9,177 | 6,181 | ||||
Accretion to the redemption value of redeemable Series A shares | ¥ 15,115 | 52,881 | ||||||
Supplemental disclosure of cash and cash equivalents and restricted cash: | ||||||||
Cash and cash equivalents | 287,572 | 1,011,591 | 230,407 | 824,546 | ¥ 1,589,161 | |||
Restricted cash | 138 | 946 | 137 | 8,590 | 946 | |||
Total cash and cash equivalents, and restricted cash | $ 287,710 | ¥ 1,012,537 | $ 230,544 | ¥ 833,136 | ¥ 1,590,107 |
Description of the business a_4
Description of the business and organization | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Description of the business and organization | ||
Description of the business and organization | 1. Description of the business and organization Description of the business Atour Lifestyle Holdings Limited (“Atour LifeStyle” or the “Company”), is a holding company incorporated in the Cayman Islands. The Company conducts its business through its subsidiary, Shanghai Atour Business Management (Group) Co., Ltd. (“Atour Shanghai”), and the subsidiaries of Atour Shanghai (“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 franchisee is required to pay an upfront franchise fee and ongoing franchise and management service fees, the majority of which are determined based on a certain percentage of the revenues of the hotel. The franchisee is 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 March 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 | 1. Description of the business and organization (a) Description of the business Atour Lifestyle Holdings Limited (“Atour Lifestyle” or the “Company”), is a holding company incorporated in the Cayman Islands. The Company conducts its business through its subsidiary, Shanghai Atour Business Management (Group) Co., Ltd. (“Atour Shanghai”), and the subsidiaries of Atour Shanghai (“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 franchisee is required to pay an upfront franchise fee and ongoing franchise and management service fees, the majority of which are determined based on a certain percentage of the revenues of the hotel. The franchisee is 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, 2022, the subsidiaries of the Company 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 to establish an offshore structure to hold the entire equity interest in Atour Shanghai (“Restructuring”). 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 Atour Shanghai and its subsidiaries after the Restructuring. The Restructuring has been 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 statement of Atour Shanghai, and the assets and liabilities are presented at their historical carrying values. The effect of the Restructuring where applicable has been retrospectively reflected in the consolidated financial statements. Certain equity transactions that occurred during the intervening period of the Restructuring as further set out in Note 16(b),16(c), and 16(d) are accounted for separately from the Restructuring as they are not part of the integrated set of activities constituting the Restructuring and serve distinct purposes independent of the Restructuring. |
Significant accounting polic_22
Significant accounting policies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Significant accounting policies | ||
Significant accounting policies | 2. Significant accounting policies (a) Basis of preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements of the Group. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Group as of and for the year ended December 31, 2022. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of March 31, 2023, the results of operations and cash flows for the three months ended March 31, 2022 and 2023, have been made. The preparation of the unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods. Significant accounting estimates include, but not limited to, estimate of breakage, the fair value of share-based compensation awards, and the recoverability 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 unaudited condensed consolidated financial statements. The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousands except share data and per share data, or otherwise noted. 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 condensed 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 condensed consolidated financial statements. (b) Convenience translation Translations of balances in the unaudited condensed consolidated financial statements from RMB into United States dollars (“USD”) as of and for the three months ended March 31, 2023 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.8676 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 31, 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 March 31, 2023, or at any other rate. (c) Risks and concentration (1) 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. (2) Concentration of credit risk The Group’s credit risk primarily arises from cash and cash equivalents, short-term investments, prepayments and other current assets, accounts receivable and amounts 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. The Group has no significant concentrations of credit risk with respect to its prepayments and other current assets. Accounts receivable are 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. | 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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases Upon the adoption of ASC 842, the Group recognized right-of-use assets and lease liabilities of RMB2,200,280 and RMB2,399,061 respectively, for operating leases of the buildings of the Group’s leased hotels and office spaces based on the present value of lease payments over the lease term. The following table summarizes the effect on the consolidated balance sheet as a result of adopting ASC 842. As of Effect of As of December 31, 2021 adoption January 1, 2022 RMB ‘000 RMB ‘000 RMB’000 Assets Current assets Cash and cash equivalents 1,038,583 — 1,038,583 Short-term investments — — — Accounts receivable, net of allowance of RMB 14,731 as of December 31, 2021 99,961 — 99,961 Prepayments and other current assets 167,161 — 167,161 Amounts due from related parties 51,937 — 51,937 Inventories 58,575 — 58,575 Total current assets 1,416,217 — 1,416,217 Non-current assets Restricted cash 946 — 946 Contract costs 62,415 — 62,415 Property and equipment, net 439,015 — 439,015 Operating lease right-of-use assets — 2,200,280 (a) 2,200,280 Intangible assets, net 3,820 — 3,820 Goodwill 17,446 — 17,446 Other assets 182,581 (11,758) (b) 170,823 Deferred tax assets 122,707 — 122,707 Total non-current assets 828,930 2,188,522 3,017,452 Total assets 2,245,147 2,188,522 4,433,669 As of Effect of As of December 31, 2021 adoption January 1, 2022 RMB ‘000 RMB ‘000 RMB’000 Current liabilities Operating lease liabilities, current — 317,483 (c) 317,483 Accounts payable 161,277 — 161,277 Deferred revenue 233,735 — 233,735 Salary and welfare payable 95,238 — 95,238 Accrued expenses and other payables 447,380 (6,483) (d) 440,897 Income taxes payable 46,176 — 46,176 Short-term borrowings 64,808 — 64,808 Current portion of long-term borrowings 1,000 — 1,000 Other amounts due to related parties 1,772 — 1,772 Total current liabilities 1,051,386 311,000 1,362,386 Non-current liabilities Operating lease liabilities, non-current — 2,081,578 (c) 2,081,578 Deferred revenue 267,909 — 267,909 Long-term borrowings, non-current portion 43,630 — 43,630 Other non-current liabilities 317,607 (204,056) (d) 113,551 Total non-current liabilities 629,146 1,877,522 2,506,668 Total liabilities 1,680,532 2,188,522 3,869,054 Equity Class A ordinary shares 218 — 218 Class B ordinary shares 56 — 56 Additional paid in capital 764,502 — 764,502 Accumulated deficit (176,403) — (176,403) Accumulated other comprehensive loss (8,947) — (8,947) Total equity attributable to shareholders of the Company 579,426 — 579,426 Non-controlling interests (14,811) — (14,811) Total equity 564,615 — 564,615 Commitments and contingencies — — — Total liabilities and shareholders’ equity 2,245,147 2,188,522 4,433,669 (a) Represents the net result of capitalization of operating lease payments and reclassification of deferred rental initial direct cost and deferred rent accrual. (b) Represents deferred rental initial direct cost reclassified to operating lease right-of-use assets. (c) Represents recognition of the current portion and non-current portion of operating lease liabilities. (d) Represents reclassification of the current portion and non-current portion of deferred rent accrual to operating lease right-of-use assets. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. 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, versus determining an implied fair value in Step two to measure the impairment loss. The guidance is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2019. For all other entities it is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Group early adopted the new standard on January 1, 2022, and the adoption did not have a material impact on its consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). It requires issuers to make annual disclosures about government assistance, including the nature of the transaction, the related accounting policy, the financial statement line items affected and the amounts applicable to each financial statement line item, as well as any significant terms and conditions, including commitments and contingencies. The amendments in ASU 2021-10 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Group adopted this new standard on January 1, 2022, using the retrospective approach. See Note 2(w) for related disclosure. (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. Significant items subject to such estimates and assumptions include, but are not limited to, estimate of breakage, the fair value of share-based compensation awards, and the recoverability 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, 2022 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.8972 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 30, 2022. 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, 2022, 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 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 (expense) 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 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, 2021 2022 RMB ‘000 RMB ‘000 Financial institutions in the mainland PRC – Denominated in RMB 965,855 1,290,408 – Denominated in USD 3,270 3,541 Total cash balances held at mainland PRC financial institutions 969,125 1,293,949 Hong Kong – Denominated in RMB 9,859 9,884 – Denominated in USD 5,554 5,990 Total cash balances held at the Hong Kong financial institutions 15,413 15,874 Cayman Islands – Denominated in RMB 272 273 – Denominated in USD 53,773 279,065 Total cash balances held at the Cayman Islands financial institutions 54,045 279,338 Total cash and cash equivalents balances held at financial institutions 1,038,583 1,589,161 (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 were 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 agents, hotel guests and credit card receivables, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the aging of the receivables and factors surrounding the credit risk of specific franchisees and other customers. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2021 and 2022, 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, 2021 and 2022 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, 2020, 2021 and 2022 were RMB7,556, RMB7,870 and RMB9,832, 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 inventory is determined using the specific identification method. (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 expenses as reported in the consolidated statements of comprehensive income for the years ended December 31, 2020, 2021 and 2022 is as follows: Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Total interest expenses 6,130 9,469 6,501 Less: interest expenses capitalized (4,649) (1,532) — Interest expenses 1,481 7,937 6,501 (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 5 years (o) Leases The Company 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. 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, 2021 and 2022, 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 were 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. 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. No impairment losses were recorded for the years ended December 31, 2020, 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 each 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, 2020, 2021 and 2022. (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% to 15% deduction from April 1, 2019 to December 31, 2022. For the years ended December 31, 2020, 2021 and 2022, the Group recognized RMB5,766, RMB12,864 and RMB12,035 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, 2021 2022 RMB ‘000 RMB ‘000 Balance at the beginning of the year 3,429 3,597 Accretion expense 168 176 Balance at the end of the year 3,597 3,773 (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. (1) 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. information 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. ● 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 and hotel managers fees; and iii) fees for purchase of hotel supplies and other products. The transaction prices are allocated to the performance obligations based on the estimated standalone selling prices of each components. Upfront franchise fees are typically fixed and collected upfront and recognized as revenue on 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. 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. In certain cases, the Group also 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 — other transactions with the franchisees in the consolidated statements of comprehensive income. (2) 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. (3) 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 collected 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 — other transactions with the franchisees 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 — other transactions with the franchisees 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 contra |
Prepayments and other assets_2
Prepayments and other assets | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Prepayments and other assets | ||
Prepayments and other assets | 3. Prepayments and other assets Prepayments and other current assets consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Prepaid rental and property management fees 5,467 6,625 Prepayment for purchase of goods and service 5,990 7,978 VAT recoverable 23,183 19,912 Receivables on behalf of manachised hotels (i) 81,473 157,964 Contract assets (Note 11(b)) 8,741 9,227 Deposits 2,165 2,185 Others 10,006 21,345 Subtotal 137,025 225,236 Less: allowance for doubtful accounts (3,124) (3,124) Total 133,901 222,112 (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 As of December 31, March 31, 2022 2023 RMB RMB At the beginning of the year/period 3,124 3,124 Allowance made/reversed during the year/period — — At the end of the year/period 3,124 3,124 Other assets consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Long-term rental deposits 75,954 76,248 Contract assets (Note 11(b)) 58,288 56,263 VAT recoverable 6,744 2,069 Prepayments for purchase of property and equipment 349 12,420 Total 141,335 147,000 | 3. Prepayments and other assets Prepayments and other current assets consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Prepaid rental and property management fees 12,112 5,467 Prepayment for purchase of goods and services 12,247 5,990 VAT recoverable 25,425 23,183 Receivables on behalf of manachised hotels (i) 103,495 81,473 Contract assets (Note 13(b)) 7,171 8,741 Deposits 2,904 2,165 Others 6,931 10,006 Subtotal 170,285 137,025 Less: allowance for doubtful accounts (3,124) (3,124) Total 167,161 133,901 (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, 2021 2022 RMB ‘000 RMB ‘000 At the beginning of the year 3,441 3,124 Allowance made during the year 3,124 — Allowance write-off during the year (3,441) — At the end of the year 3,124 3,124 Other assets consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Long-term rental deposits 75,604 75,954 Contract assets (Note 13(b)) 62,615 58,288 VAT recoverable 8,800 6,744 Prepayments for purchase of property and equipment 444 349 Deferred rental initial direct costs 11,758 — Deferred initial public offering related costs 23,360 — Total 182,581 141,335 |
Property and equipment, net_2
Property and equipment, net | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property and equipment, net | ||
Property and equipment, net | 4. Property and equipment, net Property and equipment, net consists of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Cost: Leasehold improvements 443,695 441,663 Equipment, fixture and furniture, and other fixed assets 420,004 425,674 Total cost 863,699 867,337 Less: accumulated depreciation (503,399) (524,775) Property and equipment, net 360,300 342,562 Depreciation expense recognized for the three months ended March 31, 2022 and 2023 was RMB18,761 and RMB21,598 respectively. | 4. Property and equipment, net Property and equipment, net consists of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Cost: Leasehold improvements 452,030 443,695 Equipment, fixture and furniture, and other fixed assets 407,259 420,004 Total cost 859,289 863,699 Less: accumulated depreciation (420,274) (503,399) Property and equipment, net 439,015 360,300 Depreciation expense recognized for the years ended December 31, 2020, 2021 and 2022 was RMB84,003, RMB92,609 and RMB87,473 respectively. |
Intangible assets, net_2
Intangible assets, net | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Intangible assets, net | ||
Intangible assets, net | 5. Intangible assets, net Intangible assets, net, consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Purchased software 11,055 11,055 Total cost 11,055 11,055 Less: accumulated amortization (5,518) (5,817) Intangible assets, net 5,537 5,238 Amortization expense recognized for the three months ended March 31, 2022 and 2023 was RMB281 and RMB299 respectively. Estimated amortization expense of the existing intangible assets is as follows: RMB Nine months ending December 31, 2023 918 2024 1,064 2025 1,048 2026 776 2027 623 Thereafter 809 Total 5,238 | 5. Intangible assets, net Intangible assets, net, consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Purchased software 8,250 11,055 Total cost 8,250 11,055 Less: accumulated amortization (4,430) (5,518) Intangible assets, net 3,820 5,537 Amortization expense recognized for the years ended December 31, 2020, 2021 and 2022 was RMB952, RMB1,302 and RMB1,088 respectively. Estimated amortization expense of the existing intangible assets is as follows: RMB’000 For the year ending December 31, 2023 1,978 2024 1,419 2025 1,173 2026 616 2027 351 Total 5,537 |
Lease_2
Lease | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Lease | ||
Lease | 6. Lease As of March 31, 2023, the Group operated 33 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 retail revenues and others, within the condensed consolidated statements of comprehensive income. Supplemental Balance Sheet As of As of December 31, 2022 March 31, 2023 RMB RMB Assets Operating lease right-of-use assets 1,932,000 1,868,615 Liabilities Current Operating lease liabilities 319,598 321,370 Non-current Operating lease liabilities 1,805,402 1,742,358 Total lease liabilities 2,125,000 2,063,728 Summary of Lease Cost For the three months ended March 31, 2022 2023 Account Classification RMB RMB Operating lease cost 91,895 91,599 Hotel operating costs, Other operating costs Variable lease cost (a) (247) (4,743) Hotel operating costs, Other operating costs Sublease income (3,065) (3,188) Retail revenues and others Total lease cost 88,583 83,668 (a) The Group was granted RMB2,480 and RMB5,940 in lease concessions from landlords related to the effects of the COVID-19 pandemic during the three months ended March 31, 2022 and 2023, respectively. The lease concessions were primarily in the form of rent reduction over the period during which the Group’s hotel business was adversely impacted. The Group applied the interpretive guidance in a FASB staff Q&A document issued in April 2020 and elected: (1) not to evaluate whether a concession received in response to the COVID-19 pandemic is a lease modification and (2) to assume such concession was contemplated as part of the existing lease contract with no contract modification. Such concession was recognized as negative variable lease cost in the period the concession was granted. Supplemental Cash Flow Information For the three months ended March 31, 2022 2023 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 81,495 86,435 As of As of December 31, 2022 March 31, 2023 Lease term and Discount Rate Weighted-average remaining lease term (years) Operating leases 7.82 7.67 Weighted-average discount rate Operating leases 4.39 % 4.39 % Summary of Future Lease Payments and Lease Liabilities Maturities of operating lease liabilities as of March 31, 2023 were as follows: Total RMB Nine months ending December 31, 2023 317,585 2024 341,436 2025 304,783 2026 284,021 2027 280,851 Thereafter 898,901 Total undiscounted lease payment 2,427,577 Less: imputed interest (a) (363,849) Present value of lease liabilities 2,063,728 (a) As the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate on January 1, 2022 was used for operating leases that commenced prior to that date . | 6. Lease As of December 31, 2022, the Group operated 33 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. Prior to the adoption of ASC 842 on January 1, 2022, operating leases were not recognized on the balance sheet of the Group, but rent expenses were recognized on a straight-line basis over the lease term. Upon adoption, 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 retail revenues and others, within the consolidated statements of comprehensive income. The impact of ASC 842 on the Group’s accounting as a lessor was not significant. Supplemental Balance Sheet As of December 31, 2022 RMB’000 Assets Operating lease right-of-use assets 1,932,000 Liabilities Current Operating lease liabilities 319,598 Non-current Operating lease liabilities 1,805,402 Total lease liabilities 2,125,000 Summary of Lease Cost Years ended December 31, 2022 Account Classification RMB ‘000 Operating lease cost 362,689 Hotel operating costs, Other operating costs, General and administrative expenses Variable lease cost (a) (20,684) Hotel operating costs, Other operating costs Sublease income (9,019) Retail revenues and others Total lease cost 332,986 (a) The Group was granted RMB27,122 in lease concessions from landlords related to the effects of the COVID-19 pandemic in 2022. The lease concessions were primarily in the form of rent reduction over the period during which the Group’s hotel business was adversely impacted. The Group applied the interpretive guidance in a FASB staff Q&A document issued in April 2020 and elected: (1) not to evaluate whether a concession received in response to the COVID-19 pandemic is a lease modification and (2) to assume such concession was contemplated as part of the existing lease contract with no contract modification. Such concession was recognized as negative variable lease cost in the period the concession was granted. (b) The total lease cost in 2020 and 2021 were RMB358,853 and RMB366,763, respectively, which included RMB12,668 and RMB646 of lease concessions from landlords related to the effects of the COVID-19 pandemic. Supplemental Cash Flow Information Years ended December 31, 2022 RMB ‘000 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 341,348 As of December 31, 2022 Lease term and Discount Rate Weighted-average remaining lease term (years) Operating leases 7.82 Weighted-average discount rate Operating leases 4.39 % Summary of Future Lease Payments and Lease Liabilities Maturities of operating lease liabilities as of December 31, 2022 were as follows: RMB ‘000 2023 404,020 2024 341,576 2025 304,923 2026 284,170 Thereafter 1,175,366 Total undiscounted lease payment 2,510,055 Less: imputed interest (a) (385,055) Present value of lease liabilities 2,125,000 (a) As the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate on January 1, 2022 was used for operating leases that commenced prior to that date . |
Income tax_2
Income tax | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Income tax | ||
Income tax | 7. Income tax The income tax expense for the three months ended March 31, 2022 and 2023 was RMB7,944 and RMB52,626, respectively. The Company’s effective tax rates for the three months ended March 31, 2022 and 2023 was 52.4% and 74.4%, respectively. The income tax expense for the three months ended March 31, 2023 reported in the condensed consolidated statements of comprehensive (loss) income differ from the amount computed by applying the PRC statutory income tax rate to (loss) income before income taxes, which is primarily due to non-deductible share-based compensation expenses. The income tax expense for the three months ended March 31, 2022 reported in the condensed consolidated statements of comprehensive (loss) income differ from the amount computed by applying the PRC statutory income tax rate to (loss) income before income taxes, which is primarily due to the valuation allowance provided for the deferred tax assets of certain PRC subsidiaries, which were in cumulative loss positions. | 8. 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. Payments of dividends by the Hong Kong subsidiary to the Company is not subject to any Hong Kong withholding tax. 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. 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, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Current income tax expense 71,933 73,613 74,300 Deferred income tax (benefit) expense (34,331) (9,396) 10,174 Total 37,602 64,217 84,474 The actual income tax expenses reported in the consolidated statements of comprehensive income for the years ended December 31, 2020, 2021 and 2022 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, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Income before income taxes 75,424 203,887 180,556 Computed expected tax expense 18,856 50,972 45,139 Increase (decrease) in income taxes resulting from: Non-deductible expenses 1,952 2,721 1,619 Additional deduction for research and development expenses (1,629) (9,922) (8,714) Share-based compensation — — 40,798 Tax loss expiration — — 2,800 Change in valuation allowance 17,905 19,066 1,085 Others 518 1,380 1,747 Total 37,602 64,217 84,474 (b) Deferred taxes The tax effects of temporary differences that give rise to the deferred tax assets (liabilities) balances as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deferred tax assets (liabilities) Tax losses carried forward 81,376 77,103 Allowance for doubtful accounts 5,339 6,523 Accrued payroll and other expenses 7,972 8,783 Deferred revenue 73,473 74,816 Contract costs (15,604) (16,818) Deferred rent 6,117 — Deferred rental initial direct costs (2,939) — Operating lease liabilities — 486,083 Operating lease right-of-use assets — (483,000) Property and equipment 41,438 33,280 Others 1,890 3,203 Total gross deferred tax assets 199,062 189,973 Valuation allowance on deferred tax assets (76,355) (77,440) Deferred tax assets, net of valuation allowance 122,707 112,533 Reported in consolidated balance sheets as: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deferred tax assets 122,707 112,533 Deferred tax liabilities — — Net deferred tax assets 122,707 112,533 The Company has not recognized any deferred tax liability for the undistributed earnings of the PRC-resident enterprise as of December 31 2021 and 2022, as the Company plans to permanently reinvest these earnings in the PRC. Each of the PRC subsidiaries does not have a plan to pay dividends in the foreseeable future and intends to retain any future earnings for use in the operation and expansion of its business in the PRC. As of December 31,2022, the total amount of undistributed earnings from the PRC subsidiaries for which no withholding tax has been accrued was RMB831,088. The unrecognized deferred tax liability would be RMB83,109 subject to the foreign withholding tax rate of 10%. The movement of the valuation allowance is as follows: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Balance at the beginning of the year 57,289 76,355 Addition during the year 19,066 3,885 Reduction as a result of expiry of tax losses carried forward — (2,800) Balance at the end of the year 76,355 77,440 The valuation allowance as of December 31, 2021 and 2022 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 tax losses carry forward of the Group’s PRC subsidiaries amounted to RMB308,412 as of December 31, 2022, of which RMB16,592, RMB39,288, RMB98,814 and RMB90,624, RMB63,094 will expire if unused by December 31, 2023, 2024, 2025, 2026 and 2027 respectively. |
Accrued expenses and other pa_4
Accrued expenses and other payables | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accrued expenses and other payables | ||
Accrued expenses and other payables | 8. Accrued expenses and other payables Accrued expenses and other payables consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Deposits 53,203 55,793 Payments received on behalf of manachised hotels (i) 199,395 410,444 VAT and other taxes payable 19,871 26,569 Payable for purchase of property and equipment 12,617 8,092 Others 45,196 31,475 Total 330,282 532,373 (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. | 9. Accrued expenses and other payables Accrued expenses and other payables consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deposits 46,961 53,203 Payments received on behalf of manachised hotels (i) 287,516 199,395 Deferred rent 6,483 — VAT and other taxes payable 22,120 19,871 Payable for purchase of property and equipment 38,357 12,617 Others 45,943 45,196 Total 447,380 330,282 (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_2
Borrowings | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Borrowings | ||
Borrowings | 9. Borrowings Borrowings consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Short-term borrowings: Bank loans (i) 141,000 181,000 Loan from third parties 1,828 848 Total 142,828 181,848 Current portion of long-term borrowings: Bank loans (i) 29,130 29,130 Total 29,130 29,130 Long-term borrowings, non-current portion: Loan from third parties 2,000 2,000 Total 2,000 2,000 (i) As of March 31, 2023, the Group had several credit facilities with third party banks under which the Group can borrow up to RMB 400,000 during the term of the facilities mature from June 2023 to September 2023. The drawdown of the credit facilities is subject to the terms and conditions of each agreement. Certain credit facilities also require the Group to comply with various covenants and other restrictions, including but not limited to the sum of interest-bearing borrowings and bills payable (if applicable) lower than RMB 300,000 if the Company’s annual revenues are less than RMB 2,500,000 . As of March 31, 2023, the unutilized credit facilities amounted to RMB 278,870 and the Group was in compliance with the financial covenants. The weighted average interest rates of short-term borrowings and long-term borrowings as of March 31, 2023 were 3.6% (December 31, 2022: 3.7%) and 4.9% (December 31, 2022: 4.9%) per annum, respectively. The aggregate maturities of the above long-term borrowings for each for the five years and thereafter subsequent to March 31, 2023 are as follows: Nine months ending March 31, 2023 29,130 2024 — 2025 500 2026 200 2027 and thereafter 1,300 Total 31,130 | 10. Borrowings Borrowings consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Short-term borrowings: Bank loans (i) 62,000 141,000 Loan from third parties 2,808 1,828 Total 64,808 142,828 Current portion of long-term borrowings: Bank loans (i) 1,000 29,130 Total 1,000 29,130 Long-term borrowings, non-current portion: Bank loans (i) 41,630 — Loan from third parties 2,000 2,000 Total 43,630 2,000 (i) As of December 31, 2022, the Group had several credit facilities with third party banks under which the Group can borrow up to RMB 400,000 during the term of the facilities mature from June 2023 to September 2023. The drawdown of the credit facilities is subject to the terms and conditions of each agreement. Certain credit facilities also require the Group to comply with various covenants and other restrictions, including but not limited to the sum of interest bearing borrowings and bills payable (if applicable) lower than RMB 300,000 if the Company’s revenues are less than RMB 2,500,000 . As of December 31, 2022, the unutilized credit facilities was RMB 279 million and the Group was in compliance with the financial covenants. The weighted average interest rates of short-term borrowings and long-term borrowings as of December 31, 2022 were 3.7% (December 31, 2021: 4.1%) and 4.9% (December 31, 2021: 4.6%) per annum, respectively. The aggregate maturities of the above long-term borrowings for each for the five years and thereafter subsequent to December 31, 2022 are as follows: RMB ‘000 For the year ending December 31, 2023 29,130 2024 — 2025 500 2026 200 2027 and thereafter 1,300 Total 31,130 |
Other non-current liabilities_3
Other non-current liabilities | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Other non-current liabilities | ||
Other non-current liabilities | 10. Other non-current liabilities Other non-current liabilities consist of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Deposits received from franchisees 129,101 137,326 Asset retirement obligations 3,773 3,820 Others 8,889 8,817 Total 141,763 149,963 | 11. Other non-current liabilities Other non-current liabilities consist of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deposits received from franchisees 107,034 129,101 Deferred rent 204,056 — Asset retirement obligations (Note 2(t)) 3,597 3,773 Others 2,920 8,889 Total 317,607 141,763 |
Revenue_2
Revenue | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||
Revenue | 11. Revenue (a) Disaggregation of revenue For the three months ended March 31, 2022 2023 RMB RMB Upfront franchise fees 8,036 10,693 Continuing franchise fees 151,726 278,429 Sales of hotel supplies and other products 102,267 140,679 Other transactions with the franchisees 11,776 16,997 Manachised hotels revenues 273,805 446,798 Room revenues 100,788 173,754 Food and beverage revenues 9,580 12,263 Others 1,213 1,293 Leased hotels revenues 111,581 187,310 Retail revenues 41,175 112,933 Others 25,553 26,895 Total 452,114 773,936 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 As of December 31, March 31, 2022 2023 RMB RMB Accounts receivable 152,167 133,708 Less: allowance for doubtful accounts (19,468) (19,243) Accounts receivable, net 132,699 114,465 Changes in the allowance for doubtful accounts is as follows: As of As of December 31, March 31, 2022 2023 RMB RMB At the beginning of the year/period 14,731 19,468 Cumulative effect of the adoption of ASU 2016-13 — 1,371 Allowance made (reversed) during the year/period 4,737 (1,596) At the end of the year/period 19,468 19,243 ii) The following table provides information about contracts assets: As of As of December 31, March 31, 2022 2023 RMB RMB Current 8,741 9,227 Non-current 58,288 56,263 Contract assets 67,029 65,490 The contract assets as of December 31, 2022 and March 31, 2023 were related to the Group’s right to consideration for hotel renovation services provided to franchisees to convert their buildings suitable for hotel use. The fees for the renovation services are billed and collected by the Group on monthly basis. iii) The following provides information about deferred revenue from contracts with customers. As of As of December 31, March 31, 2022 2023 RMB RMB Current 202,996 228,812 Non-current 277,841 290,302 Contract liabilities 480,837 519,114 The deferred revenue balances above as of December 31, 2022 and March 31, 2023 were comprised of the following: As of As of December 31, March 31, 2022 2023 RMB RMB Upfront franchise fees 319,537 333,905 Advances from sales of hotel supplies and other products 92,144 106,087 Loyalty program 36,877 33,346 Others 32,279 45,776 Deferred revenue 480,837 519,114 The Company recognized revenues of RMB66,751 and RMB64,502 during the three months ended March 31, 2022 and 2023, which were included in deferred revenue balance at the beginning of each period. (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 March 31, 2023, the Group had RMB319,537 and RMB333,905 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. (d) Contract costs Contract costs capitalized as of December 31, 2022 and March 31, 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 condensed consolidated statements of comprehensive income for the three months ended March 31, 2022 and 2023 were RMB2,800 and RMB2,322, respectively. | 13. Revenue (a) Disaggregation of revenue Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Upfront franchise fees 29,841 32,356 38,066 Continuing franchise fees 351,933 554,227 757,158 Sales of hotel supplies and other products 421,217 514,557 516,865 Other transactions with the franchisees 123,316 119,161 48,754 Manachised hotels revenues 926,307 1,220,301 1,360,843 Room revenues 457,173 579,946 505,557 Food and beverage revenues 36,244 43,641 43,313 Others 3,053 6,651 4,059 Leased hotels revenues 496,470 630,238 552,929 Retail revenues 70,877 191,596 253,607 Others 72,898 105,442 95,604 Total 1,566,552 2,147,577 2,262,983 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, 2021 2022 RMB ‘000 RMB ‘000 Accounts receivable 114,692 152,167 Less: Allowance for doubtful accounts (14,731) (19,468) Accounts receivable, net 99,961 132,699 Changes in the allowance for doubtful accounts is as follows: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 At the beginning of the year 14,966 14,731 Allowance (reversed) made during the year (235) 4,737 At the end of the year 14,731 19,468 ii) The following table provides information about contracts assets: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Current 7,171 8,741 Non-current 62,615 58,288 Contract assets 69,786 67,029 The contract assets as of December 31, 2021 and 2022 were related to the Group’s right to consideration for hotel renovation services provided to franchisees to convert their buildings suitable for hotel use. The fees for the renovation services are billed and collected by the Group on monthly basis. iii) The following provides information about deferred revenue from contracts with customers. As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Current 233,735 202,996 Non-current 267,909 277,841 Contract liabilities 501,644 480,837 The deferred revenue balances above as of December 31, 2021 and 2022 were comprised of the following: As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Upfront franchise fees 303,216 319,537 Advances from sales of hotel supplies and other products 111,633 92,144 Loyalty program 48,691 36,877 Others 38,104 32,279 Deferred revenue 501,644 480,837 The Group recognized revenues of RMB143,570, RMB160,633 and RMB170,768 during the years ended December 31, 2020, 2021 and 2022, which were included in deferred revenue as of January 1, 2020, 2021 and 2022, respectively. (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, 2021 and 2022, the Group had RMB303,216 and RMB319,537 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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Net income per ordinary share | ||
Net income per ordinary share | 12. Net income per ordinary share Basic and diluted net income per ordinary share for the three months ended March 31, 2022 and 2023 are calculated as follow: For the three months ended March 31, 2022 2023 RMB RMB Numerator: Net income attributable to the Company 7,824 17,875 Denominator: Weighted average number of ordinary shares (for basic calculation) 376,970,454 393,958,225 Effect of dilutive share-based awards. — (i) 18,352,391 (ii) Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation). 376,970,454 412,310,616 Basic net income per ordinary share (in RMB) 0.02 0.05 Diluted net income per ordinary share (in RMB) 0.02 0.04 (i) For the three months ended March 31, 2022, 17,740,297 share options were excluded from the calculation of diluted net income per ordinary share as their vesting is contingent upon the satisfaction of a performance condition (i.e. completion of a Qualified IPO), which is not considered probable until the event occurs. (ii) For the three months ended March 31, 2023, 16,637 share options were excluded from the calculation of diluted net income per ordinary share as their effects would have been anti-dilutive. | 14. Net (loss) income per ordinary share Basic and diluted net (loss) income per ordinary share for the years ended December 31, 2020, 2021 and 2022 are calculated as follow: Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Numerator: Net income attributable to the Company 42,051 145,054 98,099 Accretion to the redemption value of redeemable Class A ordinary shares (i) (52,881) (15,115) — Net (loss) income available to ordinary shares (10,830) 129,939 98,099 Denominator: Weighted average number of ordinary shares (for basic calculation) 171,589,918 323,163,367 (iii) 379,321,522 Effect of dilutive share-based awards (iv) — — 2,277,167 Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation) 171,589,918 (ii) 323,163,367 381,598,689 Basic net (loss) income per ordinary share (in RMB) (0.06) 0.40 0.26 Diluted net (loss) income per ordinary share (in RMB) (0.06) 0.40 0.26 (i) Represent the accretion to the redemption value of Series C shares of Atour Shanghai prior to the termination of the preference rights of certain shareholders on April 8, 2021 (see Note 12). (ii) For the year ended December 31, 2020, Series A, B and C shares of Atour Shanghai prior to Restructuring were excluded from the calculation of diluted income per ordinary share as their inclusion would have been anti-dilutive. (iii) For the year ended December 31, 2021, 214,203,200 ordinary shares were included in the denominator in the calculation of basic income per ordinary share to give the effect of the termination of preference rights on April 8, 2021. (iv) For the years ended December 31, 2020 and 2021, 11,663,920 and 17,740,297 share options were excluded from the calculation of diluted net income per ordinary share, respectively, as their vesting is contingent upon the satisfaction of a performance condition (i.e. completion of a Qualified IPO), which is not considered probable until the event occurs. For the year ended December 31, 2022, 660,000 share options were excluded from the calculation of diluted net income per ordinary share as their effects would have been anti-dilutive. |
Share based compensation_2
Share based compensation | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Share based compensation | ||
Share based compensation | 13. 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 three months ended March 31, 2023 is presented below: Weighted average Aggregate Number of exercise Weighted remaining intrinsic share options price per share contractual years value RMB RMB Outstanding at January 1, 2023 21,444,931 5.78 8.35 764,494 Grant 4,033,274 Forfeiture (1,000) Outstanding at March 31, 2023 25,477,205 8.11 8.54 1,321,995 Exercisable as of March 31, 2023 23,912,776 8.06 8.56 1,241,983 The weighted average grant date fair value of the share options for the three months ended March 31, 2023 was RMB34.61. There was no share option granted for the three months ended March 31, 2022. 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. For the three months ended March 31, 2023 Risk-free rate of return (1) 3.8 % Volatility (2) 40.2% – 40.4 % Expected dividend yield (3) 0 % Fair value of ordinary share (in RMB) (4) 42.0 – 54.0 Exercise Multiple (5) 2.2 – 2.8 Expected term (6) 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) The fair value of the underlying ordinary share is the closing price of the Company’s ordinary shares traded in the open market as of the grant date. (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 voluntarily 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 contract life of the option from grant date. For the three months ended March 31, 2022, 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. For the three months ended March 31, 2023, the Group recognized RMB141,580 share-based 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 three months ended March 31, 2023 is presented below: For the three months ended March 31, 2023 RMB Hotel operating costs 124 Selling and marketing expenses 38 General and administrative expenses 141,418 Total 141,580 | 15. 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. The replacement of the unvested share options in April 2021 was accounted for as modifications of share-based compensation. The Company evaluated the fair value of share options immediately before and after the modification and there was no incremental share-based compensation expense as a result of the modification. 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 year ended December 31, 2022 is presented below: Weighted Aggregate Number of average Weighted remaining intrinsic share options exercise price contractual years value (RMB) (RMB’000) Outstanding at January 1, 2022 17,740,297 5.06 9.24 473,237 Grant – Prior to IPO 640,095 10.33 — — – Post IPO 3,628,971 8.41 — — Forfeiture (564,432) 5.35 — — Outstanding at December 31, 2022 21,444,931 5.78 8.35 764,494 Exercisable as of December 31, 2022 19,681,140 5.52 8.56 706,750 The weighted average grant date fair value of the share options granted during the years ended December 31, 2020, 2021 and 2022 was RMB6.02, RMB11.93 and RMB22.32, respectively. As of December 31, 2022, RMB29,131 of unrecognized compensation expense related to unvested share options is expected to be recognized over a remaining weighted-average vesting period of approximately 3.09 years. The total fair value at grant date of share options held by the Company’s employees that vested during 2022 was RMB158,183. 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. 2020 2021 2022 Risk-free rate of return (1) 2.90% ~ 3.10 % 1.70% ~ 3.20 % 3.10% ~ 4.00 % Volatility (2) 34.30% ~ 34.40 % 34.61% ~ 37.64 % 38.98% ~ 40.44 % Expected dividend yield (3) 0 % 0 % 0 % Fair value of ordinary share (in RMB) (4) 10.54 ~ 10.93 11.93 ~ 31.74 28.80 ~ 43.56 Exercise multiple (5) 2.2 2.2 2.2 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 the estimation of future cash flows, and the application of an appropriate discount rate with reference to comparable listed companies engaged in the similar industry to convert such future cash flows to a single present value. After the Company’s IPO, the fair value of the underlying ordinary share is the closing price of the Company’s ordinary shares traded in the open market as of the grant date. (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 voluntarily 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 contract life of the option from grant date. For the years ended December 31, 2020 and 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. 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 year ended December 31, 2022 is presented below: Year ended December 31, 2022 RMB ‘000 Hotel operating costs 2,111 Selling and marketing expenses 618 General and administrative expenses 160,464 Total 163,193 |
Ordinary shares
Ordinary shares | 3 Months Ended |
Mar. 31, 2023 | |
Ordinary shares | |
Ordinary shares | 14. 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). 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. |
Related party transactions_2
Related party transactions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Related party transactions | ||
Related party transactions | 15. Related party transactions In addition to the related party information disclosed elsewhere in the condensed consolidated financial statements, the Group entered into the following material related party transactions. Name of party Relationship Trip.com Group Ltd. and its subsidiaries Ultimate parent of a principal (a) Major transactions with related parties For the three months ended March 31, 2022 2023 RMB RMB Hotel reservation payments collected on behalf of the Group Trip.com Group 88,757 290,397 Hotel reservation service fees Trip.com Group 2,839 6,159 Trip.com Group has rendered online travel agency reservation services to the Group in exchange for certain hotel reservation service fees. (b) Balances with related parties As of As of December 31, March 31, 2022 2023 RMB RMB Amounts due from related parties Trip.com Group 53,630 102,885 Amounts due to related parties Trip.com Group 3,004 5,607 | 17. 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 Ultimate parent of a principal (a) Major transactions with related parties Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Hotel reservation payments collected on behalf of the Group Trip.com Group 257,963 588,238 692,771 Hotel reservation service fees Trip.com Group 14,473 21,276 11,334 Trip.com Group has rendered online travel agency reservation services to the Group in exchange for certain hotel reservation service fees. (b) Balances with related parties As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Amounts due from related parties Trip.com Group 51,937 53,630 Amounts due to related parties Trip.com Group 1,772 3,004 |
Contingencies_2
Contingencies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Contingencies | ||
Contingencies | 16. Contingencies (a) Capital commitments As of March 31, 2023, the Group’s commitments related to leasehold improvements and installation of equipment for hotel operations was RMB27,700, which is expected to be incurred within two years. (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. In September 2021, the Group was sued in connection with the agency services fee payable of the Company’s leased hotel. While the Group believes it has meritorious defenses against the suit, the ultimate resolution of the matter, could result in a loss of up to RMB12,333 in excess of the amount accrued. | 18. Contingencies (a) Capital commitments As of December 31, 2022, the Group’s commitments related to leasehold improvements and installation of equipment for hotel operations was RMB1,289, 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. In September 2021, the Group was sued in connection with the agency services fee payable of the Company’s leased hotel. While the Group believes it has meritorious defenses against the suit, the ultimate resolution of the matter, could result in a loss of up to RMB12,333 in excess of the amount accrued. |
Changes in shareholders' equity
Changes in shareholders' equity | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Changes in shareholders' equity | ||
Changes in shareholders' equity | 17. Changes in shareholders’ equity Accumulated Total equity Additional other attributable to Non- Total paid-in Accumulated comprehensive shareholders of controlling shareholders’ Class A ordinary shares Class B ordinary shares Capital deficit loss the Company interests equity Number Number of shares RMB of shares RMB RMB RMB RMB RMB RMB RMB Balances at January 1, 2022 303,289,537 218 73,680,917 56 764,502 (176,403) (8,947) 579,426 (14,811) 564,615 Profit (loss) for the period — — — — — 7,824 — 7,824 (614) 7,210 Other comprehensive loss — — — — — — (219) (219) — (219) Total comprehensive income — — — — — 7,824 (219) 7,605 (614) 6,991 Balances at March 31, 2022 303,289,537 218 73,680,917 56 764,502 (168,579) (9,166) 587,031 (15,425) 571,606 Accumulated Total equity Additional other attributable to Non- Total paid-in Accumulated comprehensive shareholders of controlling shareholders’ Class A ordinary shares Class B ordinary shares Capital deficit loss the Company interests equity Number Number of shares RMB of shares RMB RMB RMB RMB RMB RMB RMB Balances at January 1, 2023 319,677,037 229 73,680,917 56 1,286,189 (78,304) (10,865) 1,197,305 (9,899) 1,187,406 Cumulative effect of the adoption of ASU 2016-13 — — — — — (1,028) — (1,028) — (1,028) Profit for the period — — — — — 17,875 — 17,875 197 18,072 Other comprehensive loss — — — — — — (2,080) (2,080) — (2,080) Total comprehensive income — — — — — 17,875 (2,080) 15,795 197 15,992 Share-based compensation — — — — 141,580 — — 141,580 — 141,580 Balances at March 31, 2023 319,677,037 229 73,680,917 56 1,427,769 (61,457) (12,945) 1,353,652 (9,702) 1,343,950 | 16. Equity (a) Ordinary shares 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 $11 per ADS or $3.67 per ordinary share, with net proceeds of RMB365,784. Prior to the Restructuring, as further described in Note 1, the issued and outstanding shares of Atour Shanghai include 171,589,918 ordinary shares, 60,912,400 Series A Shares, 48,394,000 Series B Shares and 104,896,800 Series C Shares as of December 31, 2020. The preference rights of Series A shares, Series B shares and Series C shares are disclosed in Note 12. 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. The effect of the Restructuring where applicable has been retrospectively reflected in the consolidated financial statements. The following equity transactions that occurred during the intervening period of the Restructuring are accounted for separately from the Restructuring as they are not part of the integrated set of activities constituting the Restructuring and serve distinct purposes independent of the Restructuring. (b) Termination of preference rights of certain shareholders As set out in Note 12, 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. |
Significant accounting polic_23
Significant accounting policies (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Significant accounting policies | ||
Basis of preparation | (a) Basis of preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements of the Group. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Group as of and for the year ended December 31, 2022. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of March 31, 2023, the results of operations and cash flows for the three months ended March 31, 2022 and 2023, have been made. The preparation of the unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods. Significant accounting estimates include, but not limited to, estimate of breakage, the fair value of share-based compensation awards, and the recoverability 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 unaudited condensed consolidated financial statements. The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousands except share data and per share data, or otherwise noted. 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 condensed 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 condensed consolidated financial statements. | (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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases Upon the adoption of ASC 842, the Group recognized right-of-use assets and lease liabilities of RMB2,200,280 and RMB2,399,061 respectively, for operating leases of the buildings of the Group’s leased hotels and office spaces based on the present value of lease payments over the lease term. The following table summarizes the effect on the consolidated balance sheet as a result of adopting ASC 842. As of Effect of As of December 31, 2021 adoption January 1, 2022 RMB ‘000 RMB ‘000 RMB’000 Assets Current assets Cash and cash equivalents 1,038,583 — 1,038,583 Short-term investments — — — Accounts receivable, net of allowance of RMB 14,731 as of December 31, 2021 99,961 — 99,961 Prepayments and other current assets 167,161 — 167,161 Amounts due from related parties 51,937 — 51,937 Inventories 58,575 — 58,575 Total current assets 1,416,217 — 1,416,217 Non-current assets Restricted cash 946 — 946 Contract costs 62,415 — 62,415 Property and equipment, net 439,015 — 439,015 Operating lease right-of-use assets — 2,200,280 (a) 2,200,280 Intangible assets, net 3,820 — 3,820 Goodwill 17,446 — 17,446 Other assets 182,581 (11,758) (b) 170,823 Deferred tax assets 122,707 — 122,707 Total non-current assets 828,930 2,188,522 3,017,452 Total assets 2,245,147 2,188,522 4,433,669 As of Effect of As of December 31, 2021 adoption January 1, 2022 RMB ‘000 RMB ‘000 RMB’000 Current liabilities Operating lease liabilities, current — 317,483 (c) 317,483 Accounts payable 161,277 — 161,277 Deferred revenue 233,735 — 233,735 Salary and welfare payable 95,238 — 95,238 Accrued expenses and other payables 447,380 (6,483) (d) 440,897 Income taxes payable 46,176 — 46,176 Short-term borrowings 64,808 — 64,808 Current portion of long-term borrowings 1,000 — 1,000 Other amounts due to related parties 1,772 — 1,772 Total current liabilities 1,051,386 311,000 1,362,386 Non-current liabilities Operating lease liabilities, non-current — 2,081,578 (c) 2,081,578 Deferred revenue 267,909 — 267,909 Long-term borrowings, non-current portion 43,630 — 43,630 Other non-current liabilities 317,607 (204,056) (d) 113,551 Total non-current liabilities 629,146 1,877,522 2,506,668 Total liabilities 1,680,532 2,188,522 3,869,054 Equity Class A ordinary shares 218 — 218 Class B ordinary shares 56 — 56 Additional paid in capital 764,502 — 764,502 Accumulated deficit (176,403) — (176,403) Accumulated other comprehensive loss (8,947) — (8,947) Total equity attributable to shareholders of the Company 579,426 — 579,426 Non-controlling interests (14,811) — (14,811) Total equity 564,615 — 564,615 Commitments and contingencies — — — Total liabilities and shareholders’ equity 2,245,147 2,188,522 4,433,669 (a) Represents the net result of capitalization of operating lease payments and reclassification of deferred rental initial direct cost and deferred rent accrual. (b) Represents deferred rental initial direct cost reclassified to operating lease right-of-use assets. (c) Represents recognition of the current portion and non-current portion of operating lease liabilities. (d) Represents reclassification of the current portion and non-current portion of deferred rent accrual to operating lease right-of-use assets. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. 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, versus determining an implied fair value in Step two to measure the impairment loss. The guidance is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2019. For all other entities it is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Group early adopted the new standard on January 1, 2022, and the adoption did not have a material impact on its consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). It requires issuers to make annual disclosures about government assistance, including the nature of the transaction, the related accounting policy, the financial statement line items affected and the amounts applicable to each financial statement line item, as well as any significant terms and conditions, including commitments and contingencies. The amendments in ASU 2021-10 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Group adopted this new standard on January 1, 2022, using the retrospective approach. See Note 2(w) for related disclosure. |
Convenience translation | (b) Convenience translation Translations of balances in the unaudited condensed consolidated financial statements from RMB into United States dollars (“USD”) as of and for the three months ended March 31, 2023 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB6.8676 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 31, 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 March 31, 2023, or at any other rate. | (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, 2022 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.8972 representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 30, 2022. 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, 2022, 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. |
Risks and concentration | (c) Risks and concentration (1) 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. (2) Concentration of credit risk The Group’s credit risk primarily arises from cash and cash equivalents, short-term investments, prepayments and other current assets, accounts receivable and amounts 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. The Group has no significant concentrations of credit risk with respect to its prepayments and other current assets. Accounts receivable are 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. | (aj) Risks and concentration (1) 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. (2) Concentration of credit risk The Group’s credit risk primarily arises from cash and cash equivalents, short-term investments, prepayments and other current assets, 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. The Group has no significant concentrations of credit risk with respect to its prepayments and other current assets. Accounts receivable are 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. |
Description of the business a_5
Description of the business and organization (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Description of the business and organization | ||
Schedule of the principal subsidiaries | As of March 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 | As of December 31, 2022, the subsidiaries of the Company 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 |
Prepayments and other assets _4
Prepayments and other assets (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Prepayments and other assets | ||
Schedule of prepayments and other current assets | As of As of December 31, March 31, 2022 2023 RMB RMB Prepaid rental and property management fees 5,467 6,625 Prepayment for purchase of goods and service 5,990 7,978 VAT recoverable 23,183 19,912 Receivables on behalf of manachised hotels (i) 81,473 157,964 Contract assets (Note 11(b)) 8,741 9,227 Deposits 2,165 2,185 Others 10,006 21,345 Subtotal 137,025 225,236 Less: allowance for doubtful accounts (3,124) (3,124) Total 133,901 222,112 (i) The amount represents fees to be collected from corporate customers and travel agencies on behalf of franchisees. | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Prepaid rental and property management fees 12,112 5,467 Prepayment for purchase of goods and services 12,247 5,990 VAT recoverable 25,425 23,183 Receivables on behalf of manachised hotels (i) 103,495 81,473 Contract assets (Note 13(b)) 7,171 8,741 Deposits 2,904 2,165 Others 6,931 10,006 Subtotal 170,285 137,025 Less: allowance for doubtful accounts (3,124) (3,124) Total 167,161 133,901 (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 As of December 31, March 31, 2022 2023 RMB RMB At the beginning of the year/period 3,124 3,124 Allowance made/reversed during the year/period — — At the end of the year/period 3,124 3,124 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 At the beginning of the year 3,441 3,124 Allowance made during the year 3,124 — Allowance write-off during the year (3,441) — At the end of the year 3,124 3,124 |
Schedule of other assets | As of As of December 31, March 31, 2022 2023 RMB RMB Long-term rental deposits 75,954 76,248 Contract assets (Note 11(b)) 58,288 56,263 VAT recoverable 6,744 2,069 Prepayments for purchase of property and equipment 349 12,420 Total 141,335 147,000 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Long-term rental deposits 75,604 75,954 Contract assets (Note 13(b)) 62,615 58,288 VAT recoverable 8,800 6,744 Prepayments for purchase of property and equipment 444 349 Deferred rental initial direct costs 11,758 — Deferred initial public offering related costs 23,360 — Total 182,581 141,335 |
Property and equipment, net (_2
Property and equipment, net (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property and equipment, net | ||
Schedule of property and equipment, net | As of As of December 31, March 31, 2022 2023 RMB RMB Cost: Leasehold improvements 443,695 441,663 Equipment, fixture and furniture, and other fixed assets 420,004 425,674 Total cost 863,699 867,337 Less: accumulated depreciation (503,399) (524,775) Property and equipment, net 360,300 342,562 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Cost: Leasehold improvements 452,030 443,695 Equipment, fixture and furniture, and other fixed assets 407,259 420,004 Total cost 859,289 863,699 Less: accumulated depreciation (420,274) (503,399) Property and equipment, net 439,015 360,300 |
Intangible assets, net (Table_2
Intangible assets, net (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Intangible assets, net | ||
Schedule of intangible assets, net | As of As of December 31, March 31, 2022 2023 RMB RMB Purchased software 11,055 11,055 Total cost 11,055 11,055 Less: accumulated amortization (5,518) (5,817) Intangible assets, net 5,537 5,238 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Purchased software 8,250 11,055 Total cost 8,250 11,055 Less: accumulated amortization (4,430) (5,518) Intangible assets, net 3,820 5,537 |
Schedule of estimated amortization expense of existing intangible assets | RMB Nine months ending December 31, 2023 918 2024 1,064 2025 1,048 2026 776 2027 623 Thereafter 809 Total 5,238 | RMB’000 For the year ending December 31, 2023 1,978 2024 1,419 2025 1,173 2026 616 2027 351 Total 5,537 |
Lease (Tables)_2
Lease (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Lease | ||
Schedule of supplemental balance sheet | As of As of December 31, 2022 March 31, 2023 RMB RMB Assets Operating lease right-of-use assets 1,932,000 1,868,615 Liabilities Current Operating lease liabilities 319,598 321,370 Non-current Operating lease liabilities 1,805,402 1,742,358 Total lease liabilities 2,125,000 2,063,728 | As of December 31, 2022 RMB’000 Assets Operating lease right-of-use assets 1,932,000 Liabilities Current Operating lease liabilities 319,598 Non-current Operating lease liabilities 1,805,402 Total lease liabilities 2,125,000 |
Summary of lease cost | For the three months ended March 31, 2022 2023 Account Classification RMB RMB Operating lease cost 91,895 91,599 Hotel operating costs, Other operating costs Variable lease cost (a) (247) (4,743) Hotel operating costs, Other operating costs Sublease income (3,065) (3,188) Retail revenues and others Total lease cost 88,583 83,668 (a) The Group was granted RMB2,480 and RMB5,940 in lease concessions from landlords related to the effects of the COVID-19 pandemic during the three months ended March 31, 2022 and 2023, respectively. The lease concessions were primarily in the form of rent reduction over the period during which the Group’s hotel business was adversely impacted. The Group applied the interpretive guidance in a FASB staff Q&A document issued in April 2020 and elected: (1) not to evaluate whether a concession received in response to the COVID-19 pandemic is a lease modification and (2) to assume such concession was contemplated as part of the existing lease contract with no contract modification. Such concession was recognized as negative variable lease cost in the period the concession was granted. | Years ended December 31, 2022 Account Classification RMB ‘000 Operating lease cost 362,689 Hotel operating costs, Other operating costs, General and administrative expenses Variable lease cost (a) (20,684) Hotel operating costs, Other operating costs Sublease income (9,019) Retail revenues and others Total lease cost 332,986 (a) The Group was granted RMB27,122 in lease concessions from landlords related to the effects of the COVID-19 pandemic in 2022. The lease concessions were primarily in the form of rent reduction over the period during which the Group’s hotel business was adversely impacted. The Group applied the interpretive guidance in a FASB staff Q&A document issued in April 2020 and elected: (1) not to evaluate whether a concession received in response to the COVID-19 pandemic is a lease modification and (2) to assume such concession was contemplated as part of the existing lease contract with no contract modification. Such concession was recognized as negative variable lease cost in the period the concession was granted. (b) The total lease cost in 2020 and 2021 were RMB358,853 and RMB366,763, respectively, which included RMB12,668 and RMB646 of lease concessions from landlords related to the effects of the COVID-19 pandemic. |
Schedule of supplemental cash flow information | For the three months ended March 31, 2022 2023 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 81,495 86,435 | Years ended December 31, 2022 RMB ‘000 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 341,348 |
Schedule of lease term and discount rate | As of As of December 31, 2022 March 31, 2023 Lease term and Discount Rate Weighted-average remaining lease term (years) Operating leases 7.82 7.67 Weighted-average discount rate Operating leases 4.39 % 4.39 % | As of December 31, 2022 Lease term and Discount Rate Weighted-average remaining lease term (years) Operating leases 7.82 Weighted-average discount rate Operating leases 4.39 % |
Summary of maturities of operating lease liabilities | Total RMB Nine months ending December 31, 2023 317,585 2024 341,436 2025 304,783 2026 284,021 2027 280,851 Thereafter 898,901 Total undiscounted lease payment 2,427,577 Less: imputed interest (a) (363,849) Present value of lease liabilities 2,063,728 (a) As the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate on January 1, 2022 was used for operating leases that commenced prior to that date . | RMB ‘000 2023 404,020 2024 341,576 2025 304,923 2026 284,170 Thereafter 1,175,366 Total undiscounted lease payment 2,510,055 Less: imputed interest (a) (385,055) Present value of lease liabilities 2,125,000 (a) As the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate on January 1, 2022 was used for operating leases that commenced prior to that date . |
Accrued expenses and other pa_5
Accrued expenses and other payables (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accrued expenses and other payables | ||
Summary of accrued expenses and other payables | As of As of December 31, March 31, 2022 2023 RMB RMB Deposits 53,203 55,793 Payments received on behalf of manachised hotels (i) 199,395 410,444 VAT and other taxes payable 19,871 26,569 Payable for purchase of property and equipment 12,617 8,092 Others 45,196 31,475 Total 330,282 532,373 (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. | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deposits 46,961 53,203 Payments received on behalf of manachised hotels (i) 287,516 199,395 Deferred rent 6,483 — VAT and other taxes payable 22,120 19,871 Payable for purchase of property and equipment 38,357 12,617 Others 45,943 45,196 Total 447,380 330,282 (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)_2
Borrowings (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Borrowings | ||
Summary of borrowings | As of As of December 31, March 31, 2022 2023 RMB RMB Short-term borrowings: Bank loans (i) 141,000 181,000 Loan from third parties 1,828 848 Total 142,828 181,848 Current portion of long-term borrowings: Bank loans (i) 29,130 29,130 Total 29,130 29,130 Long-term borrowings, non-current portion: Loan from third parties 2,000 2,000 Total 2,000 2,000 (i) As of March 31, 2023, the Group had several credit facilities with third party banks under which the Group can borrow up to RMB 400,000 during the term of the facilities mature from June 2023 to September 2023. The drawdown of the credit facilities is subject to the terms and conditions of each agreement. Certain credit facilities also require the Group to comply with various covenants and other restrictions, including but not limited to the sum of interest-bearing borrowings and bills payable (if applicable) lower than RMB 300,000 if the Company’s annual revenues are less than RMB 2,500,000 . As of March 31, 2023, the unutilized credit facilities amounted to RMB 278,870 and the Group was in compliance with the financial covenants. | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Short-term borrowings: Bank loans (i) 62,000 141,000 Loan from third parties 2,808 1,828 Total 64,808 142,828 Current portion of long-term borrowings: Bank loans (i) 1,000 29,130 Total 1,000 29,130 Long-term borrowings, non-current portion: Bank loans (i) 41,630 — Loan from third parties 2,000 2,000 Total 43,630 2,000 (i) As of December 31, 2022, the Group had several credit facilities with third party banks under which the Group can borrow up to RMB 400,000 during the term of the facilities mature from June 2023 to September 2023. The drawdown of the credit facilities is subject to the terms and conditions of each agreement. Certain credit facilities also require the Group to comply with various covenants and other restrictions, including but not limited to the sum of interest bearing borrowings and bills payable (if applicable) lower than RMB 300,000 if the Company’s revenues are less than RMB 2,500,000 . As of December 31, 2022, the unutilized credit facilities was RMB 279 million and the Group was in compliance with the financial covenants. |
Summary of aggregate maturities of long-term borrowings | Nine months ending March 31, 2023 29,130 2024 — 2025 500 2026 200 2027 and thereafter 1,300 Total 31,130 | RMB ‘000 For the year ending December 31, 2023 29,130 2024 — 2025 500 2026 200 2027 and thereafter 1,300 Total 31,130 |
Other non-current liabilities_4
Other non-current liabilities (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Other non-current liabilities | ||
Schedule of other non current liabilities | As of As of December 31, March 31, 2022 2023 RMB RMB Deposits received from franchisees 129,101 137,326 Asset retirement obligations 3,773 3,820 Others 8,889 8,817 Total 141,763 149,963 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Deposits received from franchisees 107,034 129,101 Deferred rent 204,056 — Asset retirement obligations (Note 2(t)) 3,597 3,773 Others 2,920 8,889 Total 317,607 141,763 |
Revenue (Tables)_2
Revenue (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||
Schedule of disaggregation of revenue | For the three months ended March 31, 2022 2023 RMB RMB Upfront franchise fees 8,036 10,693 Continuing franchise fees 151,726 278,429 Sales of hotel supplies and other products 102,267 140,679 Other transactions with the franchisees 11,776 16,997 Manachised hotels revenues 273,805 446,798 Room revenues 100,788 173,754 Food and beverage revenues 9,580 12,263 Others 1,213 1,293 Leased hotels revenues 111,581 187,310 Retail revenues 41,175 112,933 Others 25,553 26,895 Total 452,114 773,936 | Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Upfront franchise fees 29,841 32,356 38,066 Continuing franchise fees 351,933 554,227 757,158 Sales of hotel supplies and other products 421,217 514,557 516,865 Other transactions with the franchisees 123,316 119,161 48,754 Manachised hotels revenues 926,307 1,220,301 1,360,843 Room revenues 457,173 579,946 505,557 Food and beverage revenues 36,244 43,641 43,313 Others 3,053 6,651 4,059 Leased hotels revenues 496,470 630,238 552,929 Retail revenues 70,877 191,596 253,607 Others 72,898 105,442 95,604 Total 1,566,552 2,147,577 2,262,983 |
Schedule of contract balances | As of As of December 31, March 31, 2022 2023 RMB RMB Accounts receivable 152,167 133,708 Less: allowance for doubtful accounts (19,468) (19,243) Accounts receivable, net 132,699 114,465 As of As of December 31, March 31, 2022 2023 RMB RMB At the beginning of the year/period 14,731 19,468 Cumulative effect of the adoption of ASU 2016-13 — 1,371 Allowance made (reversed) during the year/period 4,737 (1,596) At the end of the year/period 19,468 19,243 As of As of December 31, March 31, 2022 2023 RMB RMB Current 8,741 9,227 Non-current 58,288 56,263 Contract assets 67,029 65,490 As of As of December 31, March 31, 2022 2023 RMB RMB Current 202,996 228,812 Non-current 277,841 290,302 Contract liabilities 480,837 519,114 As of As of December 31, March 31, 2022 2023 RMB RMB Upfront franchise fees 319,537 333,905 Advances from sales of hotel supplies and other products 92,144 106,087 Loyalty program 36,877 33,346 Others 32,279 45,776 Deferred revenue 480,837 519,114 | As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Accounts receivable 114,692 152,167 Less: Allowance for doubtful accounts (14,731) (19,468) Accounts receivable, net 99,961 132,699 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 At the beginning of the year 14,966 14,731 Allowance (reversed) made during the year (235) 4,737 At the end of the year 14,731 19,468 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Current 7,171 8,741 Non-current 62,615 58,288 Contract assets 69,786 67,029 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Current 233,735 202,996 Non-current 267,909 277,841 Contract liabilities 501,644 480,837 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Upfront franchise fees 303,216 319,537 Advances from sales of hotel supplies and other products 111,633 92,144 Loyalty program 48,691 36,877 Others 38,104 32,279 Deferred revenue 501,644 480,837 |
Net income per ordinary share (
Net income per ordinary share (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Net income per ordinary share | ||
Summary of Reconciliation of Basic and Diluted Earnings Per Share | For the three months ended March 31, 2022 2023 RMB RMB Numerator: Net income attributable to the Company 7,824 17,875 Denominator: Weighted average number of ordinary shares (for basic calculation) 376,970,454 393,958,225 Effect of dilutive share-based awards. — (i) 18,352,391 (ii) Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation). 376,970,454 412,310,616 Basic net income per ordinary share (in RMB) 0.02 0.05 Diluted net income per ordinary share (in RMB) 0.02 0.04 (i) For the three months ended March 31, 2022, 17,740,297 share options were excluded from the calculation of diluted net income per ordinary share as their vesting is contingent upon the satisfaction of a performance condition (i.e. completion of a Qualified IPO), which is not considered probable until the event occurs. (ii) For the three months ended March 31, 2023, 16,637 share options were excluded from the calculation of diluted net income per ordinary share as their effects would have been anti-dilutive. | Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Numerator: Net income attributable to the Company 42,051 145,054 98,099 Accretion to the redemption value of redeemable Class A ordinary shares (i) (52,881) (15,115) — Net (loss) income available to ordinary shares (10,830) 129,939 98,099 Denominator: Weighted average number of ordinary shares (for basic calculation) 171,589,918 323,163,367 (iii) 379,321,522 Effect of dilutive share-based awards (iv) — — 2,277,167 Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation) 171,589,918 (ii) 323,163,367 381,598,689 Basic net (loss) income per ordinary share (in RMB) (0.06) 0.40 0.26 Diluted net (loss) income per ordinary share (in RMB) (0.06) 0.40 0.26 (i) Represent the accretion to the redemption value of Series C shares of Atour Shanghai prior to the termination of the preference rights of certain shareholders on April 8, 2021 (see Note 12). (ii) For the year ended December 31, 2020, Series A, B and C shares of Atour Shanghai prior to Restructuring were excluded from the calculation of diluted income per ordinary share as their inclusion would have been anti-dilutive. (iii) For the year ended December 31, 2021, 214,203,200 ordinary shares were included in the denominator in the calculation of basic income per ordinary share to give the effect of the termination of preference rights on April 8, 2021. (iv) For the years ended December 31, 2020 and 2021, 11,663,920 and 17,740,297 share options were excluded from the calculation of diluted net income per ordinary share, respectively, as their vesting is contingent upon the satisfaction of a performance condition (i.e. completion of a Qualified IPO), which is not considered probable until the event occurs. For the year ended December 31, 2022, 660,000 share options were excluded from the calculation of diluted net income per ordinary share as their effects would have been anti-dilutive. |
Share based compensation (Tab_2
Share based compensation (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Share based compensation | ||
Schedule of activities of the share options | Weighted average Aggregate Number of exercise Weighted remaining intrinsic share options price per share contractual years value RMB RMB Outstanding at January 1, 2023 21,444,931 5.78 8.35 764,494 Grant 4,033,274 Forfeiture (1,000) Outstanding at March 31, 2023 25,477,205 8.11 8.54 1,321,995 Exercisable as of March 31, 2023 23,912,776 8.06 8.56 1,241,983 | Weighted Aggregate Number of average Weighted remaining intrinsic share options exercise price contractual years value (RMB) (RMB’000) Outstanding at January 1, 2022 17,740,297 5.06 9.24 473,237 Grant – Prior to IPO 640,095 10.33 — — – Post IPO 3,628,971 8.41 — — Forfeiture (564,432) 5.35 — — Outstanding at December 31, 2022 21,444,931 5.78 8.35 764,494 Exercisable as of December 31, 2022 19,681,140 5.52 8.56 706,750 |
Schedule of assumptions used in estimating the fair value of the share options on the date of grant using the binomial option pricing model | For the three months ended March 31, 2023 Risk-free rate of return (1) 3.8 % Volatility (2) 40.2% – 40.4 % Expected dividend yield (3) 0 % Fair value of ordinary share (in RMB) (4) 42.0 – 54.0 Exercise Multiple (5) 2.2 – 2.8 Expected term (6) 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) The fair value of the underlying ordinary share is the closing price of the Company’s ordinary shares traded in the open market as of the grant date. (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 voluntarily 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 contract life of the option from grant date. | 2020 2021 2022 Risk-free rate of return (1) 2.90% ~ 3.10 % 1.70% ~ 3.20 % 3.10% ~ 4.00 % Volatility (2) 34.30% ~ 34.40 % 34.61% ~ 37.64 % 38.98% ~ 40.44 % Expected dividend yield (3) 0 % 0 % 0 % Fair value of ordinary share (in RMB) (4) 10.54 ~ 10.93 11.93 ~ 31.74 28.80 ~ 43.56 Exercise multiple (5) 2.2 2.2 2.2 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 the estimation of future cash flows, and the application of an appropriate discount rate with reference to comparable listed companies engaged in the similar industry to convert such future cash flows to a single present value. After the Company’s IPO, the fair value of the underlying ordinary share is the closing price of the Company’s ordinary shares traded in the open market as of the grant date. (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 voluntarily 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 contract life of the option from grant date. |
Schedule of share-based compensation expenses recognized | For the three months ended March 31, 2023 RMB Hotel operating costs 124 Selling and marketing expenses 38 General and administrative expenses 141,418 Total 141,580 | Year ended December 31, 2022 RMB ‘000 Hotel operating costs 2,111 Selling and marketing expenses 618 General and administrative expenses 160,464 Total 163,193 |
Related party transactions (T_2
Related party transactions (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Related party transactions | ||
Schedule of material related party transactions | Name of party Relationship Trip.com Group Ltd. and its subsidiaries Ultimate parent of a principal For the three months ended March 31, 2022 2023 RMB RMB Hotel reservation payments collected on behalf of the Group Trip.com Group 88,757 290,397 Hotel reservation service fees Trip.com Group 2,839 6,159 As of As of December 31, March 31, 2022 2023 RMB RMB Amounts due from related parties Trip.com Group 53,630 102,885 Amounts due to related parties Trip.com Group 3,004 5,607 | Name of party Relationship Trip.com Group Ltd. and its subsidiaries Ultimate parent of a principal Years ended December 31, 2020 2021 2022 RMB ‘000 RMB ‘000 RMB ‘000 Hotel reservation payments collected on behalf of the Group Trip.com Group 257,963 588,238 692,771 Hotel reservation service fees Trip.com Group 14,473 21,276 11,334 As of December 31, 2021 2022 RMB ‘000 RMB ‘000 Amounts due from related parties Trip.com Group 51,937 53,630 Amounts due to related parties Trip.com Group 1,772 3,004 |
Changes in shareholders' equi_2
Changes in shareholders' equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Changes in shareholders' equity | |
Schedule of stockholders equity | Accumulated Total equity Additional other attributable to Non- Total paid-in Accumulated comprehensive shareholders of controlling shareholders’ Class A ordinary shares Class B ordinary shares Capital deficit loss the Company interests equity Number Number of shares RMB of shares RMB RMB RMB RMB RMB RMB RMB Balances at January 1, 2022 303,289,537 218 73,680,917 56 764,502 (176,403) (8,947) 579,426 (14,811) 564,615 Profit (loss) for the period — — — — — 7,824 — 7,824 (614) 7,210 Other comprehensive loss — — — — — — (219) (219) — (219) Total comprehensive income — — — — — 7,824 (219) 7,605 (614) 6,991 Balances at March 31, 2022 303,289,537 218 73,680,917 56 764,502 (168,579) (9,166) 587,031 (15,425) 571,606 Accumulated Total equity Additional other attributable to Non- Total paid-in Accumulated comprehensive shareholders of controlling shareholders’ Class A ordinary shares Class B ordinary shares Capital deficit loss the Company interests equity Number Number of shares RMB of shares RMB RMB RMB RMB RMB RMB RMB Balances at January 1, 2023 319,677,037 229 73,680,917 56 1,286,189 (78,304) (10,865) 1,197,305 (9,899) 1,187,406 Cumulative effect of the adoption of ASU 2016-13 — — — — — (1,028) — (1,028) — (1,028) Profit for the period — — — — — 17,875 — 17,875 197 18,072 Other comprehensive loss — — — — — — (2,080) (2,080) — (2,080) Total comprehensive income — — — — — 17,875 (2,080) 15,795 197 15,992 Share-based compensation — — — — 141,580 — — 141,580 — 141,580 Balances at March 31, 2023 319,677,037 229 73,680,917 56 1,427,769 (61,457) (12,945) 1,353,652 (9,702) 1,343,950 |
Description of the business a_6
Description of the business and organization (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Minimum | ||
Description of the business and organization | ||
Term of franchise and management agreements (in years) | 8 years | 8 years |
Maximum | ||
Description of the business and organization | ||
Term of franchise and management agreements (in years) | 15 years | 15 years |
Atour (Tianjin) Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Atour Business Management (Group) Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Xi'an Jiaduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Gongyu (Shanghai) Culture Communication Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Qingju Investment Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Fuzhou Hailian Atour Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 51% | 51% |
Chengdu Zhongchengyaduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Hongwang Financial Information Service Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Shankuai Information Technology Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Hangzhou Anduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Leiduo Information Technology Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Yueduo (Shanghai) Apartment Management Service Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 80% | 80% |
Shanghai Naiduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Zhouduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Chengduo Information Technology Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Beijing Chengduo Data Technology Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Xiangduo Enterprise Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Guiduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Atour (Shanghai) Travel Agency Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Guangzhou Zhongduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Banduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Beijing Yueduo Property Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 80% | 80% |
Shanghai Xingduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Jiangduo Information Technology Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shenzhen Jiaoduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Huiduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 90% | 90% |
Shanghai Mingduo Business Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Youduo Hotel Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Yinduo Culture Communication Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Atour Hotel (HK) Holdings, Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Shanghai Rongduo Commercial Management Co., Ltd. | ||
Description of the business and organization | ||
% of Ownership | 100% | 100% |
Significant accounting polic_24
Significant accounting policies (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Significant accounting policies | |||||
Accumulated deficit | ¥ (61,457) | $ (8,949) | ¥ (78,304) | $ (11,353) | ¥ (176,403) |
Convenience translation | 6.8676 | 6.8676 | 6.8972 | 6.8972 | |
ASU 2016-13 | Effect of adoption | |||||
Significant accounting policies | |||||
Accumulated deficit | ¥ 1,028 |
Prepayments and other assets (D
Prepayments and other assets (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Prepayments and other assets | ||||||
Prepaid rental and property management fees | ¥ 6,625 | ¥ 5,467 | ¥ 12,112 | |||
Prepayment for purchase of goods and service | 7,978 | 5,990 | 12,247 | |||
VAT recoverable | 19,912 | 23,183 | 25,425 | |||
Receivables on behalf of manachised hotels | 157,964 | 81,473 | 103,495 | |||
Contract assets | 9,227 | 8,741 | 7,171 | |||
Deposits | 2,185 | 2,165 | 2,904 | |||
Others | 21,345 | 10,006 | 6,931 | |||
Subtotal | 225,236 | 137,025 | 170,285 | |||
Less: allowance for doubtful accounts | (3,124) | (3,124) | (3,124) | ¥ (3,441) | ||
Total | ¥ 222,112 | $ 32,342 | ¥ 133,901 | $ 19,414 | ¥ 167,161 |
Prepayments and other assets _5
Prepayments and other assets - Changes in the allowance for doubtful accounts (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2021 CNY (¥) | |
Prepayments and other assets | |
At the beginning of the year/period | ¥ 3,441 |
Allowance made during the year | 3,124 |
Allowance write-off during the year | (3,441) |
At the end of the year/period | ¥ 3,124 |
Prepayments and other assets _6
Prepayments and other assets - Other assets (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Prepayments and other assets | |||||
Long-term rental deposits | ¥ 76,248 | ¥ 75,954 | ¥ 75,604 | ||
Contract assets | 56,263 | 58,288 | 62,615 | ||
VAT recoverable | 2,069 | 6,744 | 8,800 | ||
Prepayments for purchase of property and equipment | 12,420 | 349 | 444 | ||
Deferred rental initial direct costs | 11,758 | ||||
Deferred initial public offering related costs | 23,360 | ||||
Total | ¥ 147,000 | $ 21,405 | ¥ 141,335 | $ 20,492 | ¥ 182,581 |
Property and equipment, net (_3
Property and equipment, net (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Property and equipment, net | |||||||
Total cost | ¥ 867,337 | ¥ 863,699 | ¥ 859,289 | ||||
Less: accumulated depreciation | (524,775) | (503,399) | (420,274) | ||||
Property and equipment, net | 342,562 | 360,300 | 439,015 | $ 49,881 | $ 52,239 | ||
Depreciation expense | 21,598 | ¥ 18,761 | 87,473 | 92,609 | ¥ 84,003 | ||
Leasehold improvements | |||||||
Property and equipment, net | |||||||
Total cost | 441,663 | 443,695 | 452,030 | ||||
Equipment, fixtures and furniture, and other fixed assets | |||||||
Property and equipment, net | |||||||
Total cost | ¥ 425,674 | ¥ 420,004 | ¥ 407,259 |
Intangible assets, net (Detai_2
Intangible assets, net (Details) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Intangible assets, net | |||
Total cost | ¥ 11,055 | ¥ 11,055 | ¥ 8,250 |
Less: accumulated amortization | (5,817) | (5,518) | (4,430) |
Total | 5,238 | 5,537 | 3,820 |
Purchased software | |||
Intangible assets, net | |||
Total cost | ¥ 11,055 | ¥ 11,055 | ¥ 8,250 |
Intangible assets, net - Addi_2
Intangible assets, net - Additional Information (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible assets, net | |||||
Amortization expense recognized | ¥ 299 | ¥ 281 | ¥ 1,088 | ¥ 1,302 | ¥ 952 |
Intangible assets, net - Esti_2
Intangible assets, net - Estimated amortization expense of existing intangible assets (Details) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Estimated amortization expense of existing intangible assets | |||
Nine months ending December 31, 2023 | ¥ 918 | ||
2024 | 1,064 | ¥ 1,978 | |
2025 | 1,048 | 1,419 | |
2026 | 776 | 1,173 | |
2027 | 623 | 616 | |
Thereafter | 809 | ||
Total | ¥ 5,238 | ¥ 5,537 | ¥ 3,820 |
Lease - Additional Informatio_2
Lease - Additional Information (Details) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 item | Dec. 31, 2022 item | Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Lease | |||||||
Number of operated leased hotels | item | 33 | 33 | |||||
Lease concessions from landlords | ¥ | ¥ 5,940 | ¥ 2,480 | ¥ 27,122 | ¥ 646 | ¥ 12,668 | ||
Minimum | |||||||
Lease | |||||||
Initial term | 5 years | 5 years | 5 years | 5 years | |||
Maximum | |||||||
Lease | |||||||
Initial term | 15 years | 15 years | 15 years | 15 years |
Lease - Supplemental Balance _2
Lease - Supplemental Balance Sheet (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) |
Assets | ||||
Operating lease right-of-use assets | ¥ 1,868,615 | $ 272,091 | ¥ 1,932,000 | $ 280,114 |
Liabilities | ||||
Operating lease liabilities, current | 321,370 | 46,795 | 319,598 | 46,337 |
Operating lease liabilities, non-current | 1,742,358 | $ 253,707 | 1,805,402 | $ 261,759 |
Total lease liabilities | ¥ 2,063,728 | ¥ 2,125,000 |
Lease - Summary of lease cost_2
Lease - Summary of lease cost (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease | |||||
Operating lease cost | ¥ 91,599 | ¥ 91,895 | ¥ 362,689 | ||
Variable lease cost | (4,743) | (247) | (20,684) | ||
Sublease income | (3,188) | (3,065) | (9,019) | ||
Total lease cost | ¥ 83,668 | ¥ 88,583 | ¥ 332,986 | ¥ 366,763 | ¥ 358,853 |
Lease - Supplemental cash flo_2
Lease - Supplemental cash flow information (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Lease | |||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | ¥ 86,435 | ¥ 81,495 | ¥ 341,348 |
Lease - Lease term and discou_2
Lease - Lease term and discount rate (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Lease | ||
Weighted-average remaining lease term (years), Operating leases | 7 years 8 months 1 day | 7 years 9 months 25 days |
Weighted-average discount rate, Operating leases | 4.39% | 4.39% |
Lease - Future lease payments_2
Lease - Future lease payments and lease liabilities (Details) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Maturities of operating lease liabilities | ||
Nine months ending December 31, 2023 | ¥ 317,585 | |
2024 | 341,436 | ¥ 404,020 |
2025 | 304,783 | 341,576 |
2026 | 284,021 | 304,923 |
2027 | 280,851 | 284,170 |
Thereafter | 898,901 | 1,175,366 |
Total undiscounted lease payment | 2,427,577 | 2,510,055 |
Less: imputed interest(a) | (363,849) | (385,055) |
Present value of lease liabilities | ¥ 2,063,728 | ¥ 2,125,000 |
Income tax (Details)_2
Income tax (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Income tax | |||||||
Tax rate | 25% | 25% | 25% | 25% | |||
Income tax expense | ¥ 52,626 | $ 7,663 | ¥ 7,944 | ¥ 84,474 | $ 12,248 | ¥ 64,217 | ¥ 37,602 |
Effective tax rate, percent | 74.40% | 74.40% | 52.40% | ||||
Foreign withholding tax rate | 10% | 10% | |||||
Reduction as a result of expiry of net tax losses carried forward | ¥ (2,800) | ||||||
Hong Kong | |||||||
Income tax | |||||||
Tax rate | 16.50% | 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% | 8.25% | |||||
Hong Kong | After first HK$2,000 of assessable profits earned | |||||||
Income tax | |||||||
Tax rate | 16.50% | 16.50% | |||||
PRC | |||||||
Income tax | |||||||
Tax rate | 25% | 25% | |||||
Foreign withholding tax rate | 10% | 10% |
Accrued expenses and other pa_6
Accrued expenses and other payables (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Accrued expenses and other payables | |||||
Deposits | ¥ 55,793 | ¥ 53,203 | ¥ 46,961 | ||
Payments received on behalf of manachised hotels | 410,444 | 199,395 | 287,516 | ||
Deferred rent | 6,483 | ||||
VAT and other taxes payable | 26,569 | 19,871 | 22,120 | ||
Payable for purchase of property and equipment | 8,092 | 12,617 | 38,357 | ||
Others | 31,475 | 45,196 | 45,943 | ||
Total | ¥ 532,373 | $ 77,520 | ¥ 330,282 | $ 47,886 | ¥ 447,380 |
Borrowings (Details)_2
Borrowings (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Borrowings | |||||
Short-term borrowings | ¥ 181,848 | $ 26,479 | ¥ 142,828 | $ 20,708 | ¥ 64,808 |
Current portion of long-term borrowings | 29,130 | 4,242 | 29,130 | 4,223 | 1,000 |
Long-term borrowings, non-current portion | 2,000 | $ 291 | 2,000 | $ 290 | 43,630 |
Bank loans | |||||
Borrowings | |||||
Short-term borrowings | 181,000 | 141,000 | 62,000 | ||
Current portion of long-term borrowings | 29,130 | 29,130 | 1,000 | ||
Long-term borrowings, non-current portion | 41,630 | ||||
Loan from third parties | |||||
Borrowings | |||||
Short-term borrowings | 848 | 1,828 | 2,808 | ||
Long-term borrowings, non-current portion | ¥ 2,000 | ¥ 2,000 | ¥ 2,000 |
Borrowings - Schedule of debt_2
Borrowings - Schedule of debt (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Schedule of debt | ||
Credit facilities of liabilities | ¥ 300,000 | ¥ 300,000 |
Credit facilities of revenues | 2,500,000 | 2,500,000 |
Credit facilities | Third party banks | ||
Schedule of debt | ||
Maximum borrowing capacity | 400,000 | 400,000 |
Debt Instrument, Unused Borrowing Capacity, Amount | ¥ 278,870 | ¥ 279,000 |
Borrowings - Weighted average_2
Borrowings - Weighted average interest rates (Details) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Borrowings | |||
Weighted average interest rates of short-term borrowings | 3.60% | 3.70% | 4.10% |
Weighted average interest rates of long-term borrowings | 4.90% | 4.90% | 4.60% |
Borrowings - Aggregate maturi_2
Borrowings - Aggregate maturities of the long-term borrowings (Details) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Aggregate maturities of the above long-term borrowings | ||
Nine months ending March 31, 2023 | ¥ 29,130 | |
2024 | 0 | ¥ 29,130 |
2025 | 500 | |
2026 | 200 | 500 |
2026 | 200 | |
2027 and thereafter | 1,300 | |
2027 and thereafter | 1,300 | |
Total | ¥ 31,130 | ¥ 31,130 |
Other non-current liabilities_5
Other non-current liabilities (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Other non-current liabilities | |||||
Deposits received from franchisees | ¥ 137,326 | ¥ 129,101 | ¥ 107,034 | ||
Asset retirement obligations | 3,820 | 3,773 | 3,597 | ||
Others | 8,817 | 8,889 | 2,920 | ||
Total | ¥ 149,963 | $ 21,836 | ¥ 141,763 | $ 20,554 | ¥ 317,607 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of revenue | |||||
Disaggregation of revenue | ¥ 773,936 | ¥ 452,114 | ¥ 2,262,983 | ¥ 2,147,577 | ¥ 1,566,552 |
Upfront franchise fees | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 10,693 | 8,036 | 38,066 | 32,356 | 29,841 |
Continuing franchise fees | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 278,429 | 151,726 | 757,158 | 554,227 | 351,933 |
Sales of hotel supplies and other products | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 140,679 | 102,267 | 516,865 | 514,557 | 421,217 |
Other transactions with the franchisees | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 16,997 | 11,776 | 48,754 | 119,161 | 123,316 |
Manachised hotels revenues | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 446,798 | 273,805 | 1,360,843 | 1,220,301 | 926,307 |
Room revenues | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 173,754 | 100,788 | 505,557 | 579,946 | 457,173 |
Food and beverage revenues | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 12,263 | 9,580 | 43,313 | 43,641 | 36,244 |
Others | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 1,293 | 1,213 | 4,059 | 6,651 | 3,053 |
Leased hotels revenues | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 187,310 | 111,581 | 552,929 | 630,238 | 496,470 |
Retail revenues | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | 112,933 | 41,175 | 253,607 | 191,596 | 70,877 |
Others | |||||
Disaggregation of revenue | |||||
Disaggregation of revenue | ¥ 26,895 | ¥ 25,553 | ¥ 95,604 | ¥ 105,442 | ¥ 72,898 |
Revenue - Change in accounts _2
Revenue - Change in accounts receivable from contracts with customers (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Revenue | ||||||
Accounts receivable | ¥ 133,708 | ¥ 152,167 | ¥ 114,692 | |||
Less: allowance for doubtful accounts | (19,243) | (19,468) | (14,731) | ¥ (14,966) | ||
Accounts receivable, net | ¥ 114,465 | $ 16,667 | ¥ 132,699 | $ 19,239 | ¥ 99,961 |
Revenue - Changes in allowanc_2
Revenue - Changes in allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
At the beginning of the year/period | ¥ 19,468 | ¥ 14,731 | ¥ 14,966 |
Allowance made (reversed) during the year/period | (1,596) | 4,737 | (235) |
At the end of the year/period | 19,243 | 19,468 | ¥ 14,731 |
Cumulative effect of the adoption of ASU | ASU 2016-13 | |||
At the beginning of the year/period | ¥ 1,371 | ||
At the end of the year/period | ¥ 1,371 |
Revenue - Contract assets (De_2
Revenue - Contract assets (Details) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Contract assets | |||
Current | ¥ 9,227 | ¥ 8,741 | ¥ 7,171 |
Non-current | 56,263 | 58,288 | 62,615 |
Contract assets | ¥ 65,490 | ¥ 67,029 | ¥ 69,786 |
Revenue - Deferred revenue fr_2
Revenue - Deferred revenue from contracts with customers (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Deferred revenue from contracts with customers | |||||
Current | ¥ 228,812 | $ 33,318 | ¥ 202,996 | $ 29,432 | ¥ 233,735 |
Non-current | 290,302 | $ 42,271 | 277,841 | $ 40,283 | 267,909 |
Deferred revenue | ¥ 519,114 | ¥ 480,837 | ¥ 501,644 |
Revenue - Deferred revenue ba_2
Revenue - Deferred revenue balances (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred revenue from contracts with customers | |||||
Upfront franchise fees | ¥ 333,905 | ¥ 319,537 | ¥ 303,216 | ||
Advances from sales of hotel supplies and other products | 106,087 | 92,144 | 111,633 | ||
Loyalty program | 33,346 | 36,877 | 48,691 | ||
Others | 45,776 | 32,279 | 38,104 | ||
Deferred revenue | 519,114 | 480,837 | 501,644 | ||
Recognized revenues which were included in deferred revenue | ¥ 64,502 | ¥ 66,751 | ¥ 170,768 | ¥ 160,633 | ¥ 143,570 |
Revenue - Revenue allocated t_2
Revenue - Revenue allocated to remaining performance obligation (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue allocated to remaining performance obligation | ||||
Deferred revenues related to upfront franchise fees which are expected to be recognized as revenues over the remaining contract periods | ¥ 333,905 | ¥ 319,537 | ¥ 303,216 | |
Practical expedient, not to disclose the transaction price | false | false | ||
Capitalized costs | ¥ 2,322 | ¥ 2,800 | ||
Minimum | ||||
Revenue allocated to remaining performance obligation | ||||
Remaining contract period | 1 year | 1 year | ||
Maximum | ||||
Revenue allocated to remaining performance obligation | ||||
Remaining contract period | 20 years | 20 years |
Net income per ordinary share_2
Net income per ordinary share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | ||
Numerator: | ||||||||
Net income attributable to the Company | ¥ 17,875 | $ 2,603 | ¥ 7,824 | ¥ 98,099 | $ 14,223 | ¥ 145,054 | ¥ 42,051 | |
Accretion to the redemption value of redeemable Class A ordinary shares | ¥ | [1] | ¥ 15,115 | ¥ 52,881 | |||||
Denominator: | ||||||||
Weighted average number of ordinary shares (for basic calculation) | 393,958,225 | 393,958,225 | 376,970,454 | 379,321,522 | 379,321,522 | 323,163,367 | 171,589,918 | |
Effect of dilutive share-based awards | 18,352,391 | 18,352,391 | 2,277,167 | 2,277,167 | ||||
Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding (for diluted calculation) | 412,310,616 | 412,310,616 | 376,970,454 | 381,598,689 | 381,598,689 | 323,163,367 | 171,589,918 | |
Basic net (loss) income per ordinary share (in RMB) | (per share) | ¥ 0.05 | $ 0.01 | ¥ 0.02 | ¥ 0.26 | $ 0.04 | ¥ 0.40 | ¥ (0.06) | |
Diluted net (loss) income per ordinary share (in RMB) | (per share) | ¥ 0.04 | $ 0.01 | ¥ 0.02 | ¥ 0.26 | $ 0.04 | ¥ 0.40 | ¥ (0.06) | |
[1]Represent Series C shares of Atour Shanghai prior to Restructuring (see Note 12) |
Net income per ordinary share -
Net income per ordinary share - Additional Information (Details) - shares | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income per ordinary share | |||||
Share options diluted net income per ordinary share | 16,637 | 17,740,297 | 660,000 | 17,740,297 | 11,663,920 |
Share based compensation - Ad_2
Share based compensation - Additional Information (Details) - CNY (¥) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2022 | Apr. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2017 | |
Aggregate Intrinsic Value | ||||||
Share options granted | 4,033,274 | |||||
Incremental share-based compensation expense | ¥ 0 | |||||
Share-based compensation expense | ¥ 96,605,000 | ¥ 141,580,000 | ¥ 163,193,000 | |||
2017 Share Incentive Plan | ||||||
Aggregate Intrinsic Value | ||||||
Ordinary shares reserved for issuance | 51,200,000 | |||||
Term of the options | 10 years | |||||
Share options granted | 14,196,882 | |||||
Public Company Plan | ||||||
Aggregate Intrinsic Value | ||||||
Ordinary shares reserved for issuance | 51,029,546 | |||||
Term of the options | 10 years | 10 years | ||||
Public Company Plan | Share options granted prior to the IPO | Minimum | ||||||
Aggregate Intrinsic Value | ||||||
Vesting period | 1 year | 1 year | ||||
Public Company Plan | Share options granted prior to the IPO | Maximum | ||||||
Aggregate Intrinsic Value | ||||||
Vesting period | 4 years | 4 years | ||||
Public Company Plan | Share options granted post IPO | Minimum | ||||||
Aggregate Intrinsic Value | ||||||
Vesting period | 1 year | 1 year | ||||
Public Company Plan | Share options granted post IPO | Maximum | ||||||
Aggregate Intrinsic Value | ||||||
Vesting period | 4 years | 4 years |
Share based compensation - Su_3
Share based compensation - Summary of activities of the share options (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of share options | ||||||
Outstanding at the beginning | 21,444,931 | 17,740,297 | 17,740,297 | |||
Grant | 4,033,274 | |||||
Prior to IPO | 640,095 | |||||
Post IPO | 3,628,971 | |||||
Forfeiture | (1,000) | (564,432) | ||||
Outstanding at the end | 17,740,297 | 25,477,205 | 21,444,931 | 17,740,297 | ||
Exercisable | 23,912,776 | 19,681,140 | ||||
Weighted average exercise price | ||||||
Outstanding at the beginning | ¥ 5.78 | ¥ 5.06 | ¥ 5.06 | |||
Prior to IPO | 10.33 | |||||
Post IPO | 8.41 | |||||
Forfeiture | 5.35 | |||||
Outstanding at the end | ¥ 5.06 | 8.11 | 5.78 | ¥ 5.06 | ||
Exercisable | ¥ 8.06 | ¥ 5.52 | ||||
Weighted remaining contractual years | 9 years 2 months 26 days | 8 years 6 months 14 days | 8 years 4 months 6 days | |||
Exercisable | 8 years 6 months 21 days | 8 years 6 months 21 days | ||||
Aggregate intrinsic value | ¥ 473,237 | ¥ 1,321,995 | ¥ 764,494 | ¥ 473,237 | ||
Exercisable | ¥ 1,241,983 | ¥ 706,750 | ||||
Weighted average grant date fair value | ¥ 34.61 | ¥ 0 | ¥ 22.32 | ¥ 11.93 | ¥ 6.02 |
Share based compensation - As_2
Share based compensation - Assumptions used in estimative the fair value of share options (Details) ¥ / shares in Units, ¥ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 | Mar. 31, 2023 ¥ / shares | Dec. 31, 2022 CNY (¥) item ¥ / shares | Dec. 31, 2021 item ¥ / shares | Dec. 31, 2020 item ¥ / shares | |
Aggregate Intrinsic Value | |||||
Risk-free rate of return, minimum | 3.80% | 3.10% | 1.70% | 2.90% | |
Risk-free rate of return, maximum | 4% | 3.20% | 3.10% | ||
Volatility, minimum | 40.20% | 38.98% | 34.61% | 34.30% | |
Volatility, maximum | 40.40% | 40.44% | 37.64% | 34.40% | |
Expected dividend yield | 0% | 0% | 0% | 0% | |
Exercise multiple | item | 2.2 | 2.2 | 2.2 | ||
Expected term | 10 years | 10 years | 10 years | 10 years | |
Total unrecognized compensation expense | ¥ | ¥ 29,131 | ||||
Remaining weighted-average vesting period | 3 years 1 month 2 days | ||||
Total fair value at grant date of share options held by the company's employees | ¥ | ¥ 158,183 | ||||
Minimum | |||||
Aggregate Intrinsic Value | |||||
Fair value of ordinary share (in RMB) | ¥ / shares | ¥ 42 | ¥ 28.80 | ¥ 11.93 | ¥ 10.54 | |
Exercise multiple | 0.022 | ||||
Maximum | |||||
Aggregate Intrinsic Value | |||||
Fair value of ordinary share (in RMB) | ¥ / shares | ¥ 54 | ¥ 43.56 | ¥ 31.74 | ¥ 10.93 | |
Exercise multiple | 0.028 |
Share based compensation - su_4
Share based compensation - summary of share-based compensation expenses recognized (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Nov. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Share based compensation | |||
Total | ¥ 96,605 | ¥ 141,580 | ¥ 163,193 |
Hotel operating costs | |||
Share based compensation | |||
Total | 124 | 2,111 | |
Selling and marketing expenses | |||
Share based compensation | |||
Total | 38 | 618 | |
General and administrative expenses | |||
Share based compensation | |||
Total | ¥ 141,418 | ¥ 160,464 |
Ordinary shares (Details)
Ordinary shares (Details) ¥ in Thousands | 1 Months Ended | ||||||
Nov. 30, 2022 CNY (¥) shares | Feb. 28, 2021 Vote $ / shares shares | Mar. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | Nov. 30, 2022 $ / shares | Dec. 31, 2021 $ / shares shares | Jan. 31, 2021 shares | |
Ordinary shares | |||||||
Ordinary shares, shares authorized | shares | 3,000,000,000 | 500,000,000 | |||||
Ordinary shares, Par value per share | $ 0.0001 | ||||||
IPO | |||||||
Ordinary shares | |||||||
Number of shares issued | shares | 16,387,500 | ||||||
Price per share | $ 3.67 | ||||||
Net proceeds from initial public offering | ¥ | ¥ 365,784 | ||||||
Class A ordinary shares | |||||||
Ordinary shares | |||||||
Ordinary shares, shares authorized | shares | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | 2,900,000,000 | |||
Ordinary shares, Par value per share | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Ordinary shares, number of votes per share | Vote | 1 | ||||||
Class A ordinary shares | IPO | |||||||
Ordinary shares | |||||||
Number of shares issued | shares | 16,387,500 | ||||||
Price per share | 3.67 | ||||||
Class B ordinary shares | |||||||
Ordinary shares | |||||||
Ordinary shares, shares authorized | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||
Ordinary shares, Par value per share | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Ordinary shares, number of votes per share | Vote | 10 | ||||||
American depositary shares | IPO | |||||||
Ordinary shares | |||||||
Number of shares issued | shares | 5,462,500 | ||||||
Share Price | 11 | ||||||
Price per share | $ 11 |
Related party transactions - _2
Related party transactions - Major transactions with related parties (Details) - Trip.com Group - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Hotel reservation payments collected on behalf of the Group | |||||
Related party transactions | |||||
Amounts of transaction | ¥ 290,397 | ¥ 88,757 | ¥ 692,771 | ¥ 588,238 | ¥ 257,963 |
Hotel reservation service fees | |||||
Related party transactions | |||||
Amounts of transaction | ¥ 6,159 | ¥ 2,839 | ¥ 11,334 | ¥ 21,276 | ¥ 14,473 |
Related party transactions - _3
Related party transactions - Balances with related parties (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Related party transactions | |||||
Amounts due from related parties | ¥ 102,885 | $ 14,981 | ¥ 53,630 | $ 7,776 | ¥ 51,937 |
Amounts due to related parties | 5,607 | $ 816 | 3,004 | $ 436 | 1,772 |
Trip.com Group | |||||
Related party transactions | |||||
Amounts due from related parties | 102,885 | 53,630 | 51,937 | ||
Amounts due to related parties | ¥ 5,607 | ¥ 3,004 | ¥ 1,772 |
Contingencies - Capital commi_2
Contingencies - Capital commitments (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | ||
Sep. 30, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | |
Contingencies | |||
Commitments related to leasehold improvements and installation of equipment for hotel operations which is expected to be incurred within one year | ¥ 27,700 | ¥ 1,289 | |
Loss in excess of the amount accrued | ¥ 12,333 |
Changes in shareholders' equi_3
Changes in shareholders' equity (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
May 31, 2021 shares | Mar. 31, 2023 CNY (¥) shares | Mar. 31, 2023 USD ($) shares | Mar. 31, 2022 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 CNY (¥) shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | ¥ 1,187,406 | $ 172,158 | ¥ 564,615 | ¥ 564,615 | ¥ (315,596) | ¥ (299,757) | |||
Profit (loss) for the period | 18,072 | 2,629 | 7,210 | 96,082 | $ 13,932 | 139,670 | 37,822 | ||
Other comprehensive loss | (2,080) | (303) | (219) | (1,918) | (279) | (8,947) | |||
Total comprehensive income | 15,992 | 2,326 | 6,991 | 94,164 | 13,653 | 130,723 | 37,822 | ||
Acquisition of non-controlling interest | (350) | (780) | |||||||
Accretion to the redemption value of redeemable Class A ordinary shares | [1] | 15,115 | 52,881 | ||||||
Reclassification of redeemable Class A ordinary shares upon termination of preference rights | [2] | 896,508 | |||||||
Shares repurchase | (111,260) | ||||||||
Shares repurchase (in shares) | shares | (8,822,664) | ||||||||
Distribution to shareholders | (20,645) | ||||||||
Share-based compensation | 141,580 | 163,193 | |||||||
Balances at the end | 1,343,950 | $ 195,693 | ¥ 571,606 | 1,187,406 | $ 172,158 | ¥ 564,615 | (315,596) | ||
Cumulative effect of the adoption of ASU | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | ¥ (1,028) | ||||||||
Balances at the end | ¥ (1,028) | ||||||||
Class A ordinary shares | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning (in shares) | shares | 319,677,037 | 319,677,037 | 303,289,537 | 303,289,537 | 303,289,537 | ||||
Balances at the end (in shares) | shares | 319,677,037 | 319,677,037 | 319,677,037 | 319,677,037 | 303,289,537 | ||||
Class B ordinary shares | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning (in shares) | shares | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | ||||
Balances at the end (in shares) | shares | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | ||||
Total (deficit)/equity attributable to shareholders of the Company | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | ¥ 1,197,305 | ¥ 579,426 | ¥ 579,426 | ¥ (306,169) | (295,339) | ||||
Profit (loss) for the period | 17,875 | 7,824 | 98,099 | 145,054 | 42,051 | ||||
Other comprehensive loss | (2,080) | (219) | (1,918) | (8,947) | |||||
Total comprehensive income | 15,795 | 7,605 | 96,181 | 136,107 | 42,051 | ||||
Acquisition of non-controlling interest | (7,279) | ||||||||
Accretion to the redemption value of redeemable Class A ordinary shares | 15,115 | 52,881 | |||||||
Reclassification of redeemable Class A ordinary shares upon termination of preference rights | [2] | 896,508 | |||||||
Shares repurchase | (111,260) | ||||||||
Distribution to shareholders | (20,645) | ||||||||
Share-based compensation | 141,580 | 163,193 | |||||||
Balances at the end | 1,353,652 | 587,031 | 1,197,305 | 579,426 | (306,169) | ||||
Total (deficit)/equity attributable to shareholders of the Company | Cumulative effect of the adoption of ASU | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | (1,028) | ||||||||
Balances at the end | (1,028) | ||||||||
Ordinary shares | Class A ordinary shares | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | ¥ 229 | ¥ 218 | ¥ 218 | ¥ 74 | ¥ 74 | ||||
Balances at the beginning (in shares) | shares | 319,677,037 | 319,677,037 | 303,289,537 | 303,289,537 | 303,289,537 | 97,909,001 | 97,909,001 | ||
Reclassification of Class A ordinary shares with liquidation preference upon termination of preference rights | [3] | ¥ 43 | |||||||
Reclassification of Class A ordinary shares with liquidation preference upon termination of preference rights (in shares) | shares | [3] | 60,912,400 | |||||||
Reclassification of redeemable Class A ordinary shares upon termination of preference rights | [2] | ¥ 107 | |||||||
Shares repurchase | ¥ (6) | ||||||||
Shares repurchase (in shares) | shares | (8,822,664) | ||||||||
Balances at the end | ¥ 229 | ¥ 218 | ¥ 229 | ¥ 218 | ¥ 74 | ||||
Balances at the end (in shares) | shares | 319,677,037 | 319,677,037 | 303,289,537 | 319,677,037 | 319,677,037 | 303,289,537 | 97,909,001 | ||
Ordinary shares | Class B ordinary shares | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | ¥ 56 | ¥ 56 | ¥ 56 | ¥ 56 | ¥ 56 | ||||
Balances at the beginning (in shares) | shares | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | ||
Balances at the end | ¥ 56 | ¥ 56 | ¥ 56 | ¥ 56 | ¥ 56 | ||||
Balances at the end (in shares) | shares | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | 73,680,917 | ||
Additional paid-in capital | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | ¥ 1,286,189 | ¥ 764,502 | ¥ 764,502 | ||||||
Acquisition of non-controlling interest | (7,279) | ||||||||
Reclassification of redeemable Class A ordinary shares upon termination of preference rights | [2] | ¥ 896,401 | |||||||
Shares repurchase | (111,254) | ||||||||
Distribution to shareholders | (20,645) | ||||||||
Share-based compensation | 141,580 | 163,193 | |||||||
Balances at the end | 1,427,769 | 764,502 | 1,286,189 | 764,502 | |||||
Accumulated deficit | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | (78,304) | (176,403) | (176,403) | (306,342) | ¥ (295,512) | ||||
Profit (loss) for the period | 17,875 | 7,824 | 98,099 | 145,054 | 42,051 | ||||
Total comprehensive income | 17,875 | 7,824 | 98,099 | 145,054 | 42,051 | ||||
Accretion to the redemption value of redeemable Class A ordinary shares | 15,115 | 52,881 | |||||||
Balances at the end | (61,457) | (168,579) | (78,304) | (176,403) | (306,342) | ||||
Accumulated deficit | Cumulative effect of the adoption of ASU | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | (1,028) | ||||||||
Balances at the end | (1,028) | ||||||||
Accumulated other comprehensive loss | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | (10,865) | (8,947) | (8,947) | ||||||
Other comprehensive loss | (2,080) | (219) | (1,918) | (8,947) | |||||
Total comprehensive income | (2,080) | (219) | (1,918) | (8,947) | |||||
Balances at the end | (12,945) | (9,166) | (10,865) | (8,947) | |||||
Non-controlling interests | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balances at the beginning | (9,899) | (14,811) | (14,811) | (9,427) | (4,418) | ||||
Profit (loss) for the period | 197 | (614) | (2,017) | (5,384) | (4,229) | ||||
Total comprehensive income | 197 | (614) | (2,017) | (5,384) | (4,229) | ||||
Acquisition of non-controlling interest | 6,929 | (780) | |||||||
Balances at the end | ¥ (9,702) | ¥ (15,425) | ¥ (9,899) | ¥ (14,811) | ¥ (9,427) | ||||
[1]Represent Series C shares of Atour Shanghai prior to Restructuring (see Note 12)[2]Represent Series B and C shares of Atour Shanghai prior to Restructuring (see Note 12)[3]Represent Series A shares of Atour Shanghai prior to Restructuring (see Note 12) |