Dan Chee's questions to Atour Lifestyle Holdings (ATAT) leadership • Q2 2025
Question
Dan Chee from Morgan Stanley noted the rapid growth of the retail segment and the high tax rate, asking for the company's latest view on the full-year adjusted net income margin and whether it could remain stable at 18%.
Answer
Management explained that a structural shift in revenue, with the retail business growing to 38% of total revenue in H1 2025, is impacting the overall margin. Furthermore, the adjusted comprehensive tax rate is expected to rise from 25% to 30% this year due to withholding tax associated with the new shareholder return program. Consequently, they anticipate a year-over-year decline in the full-year adjusted net profit margin from the 18% level of last year.