Core Insights - Tongcheng Travel (0780.HK) reported a revenue of 4.67 billion yuan for Q2 2025, marking a 10% year-on-year increase, with adjusted EBITDA of 1.19 billion yuan, up 29.7%, and adjusted net profit of 780 million yuan [1] - For the first half of 2025, Tongcheng Travel achieved a revenue of 9.05 billion yuan, a year-on-year growth of 11.5%, with adjusted EBITDA of 2.34 billion yuan, increasing by 35.2%, and adjusted net profit of 1.56 billion yuan [1] - The average monthly paying users reached 46.4 million and 46.5 million for Q2 and H1 2025 respectively, both showing a 9.2% year-on-year growth, while the cumulative service users reached 1.99 billion, up 7.2% [1] Revenue Breakdown - Accommodation business revenue grew by 18.8% year-on-year to 2.56 billion yuan, indicating a significant increase in demand for high-quality lodging [2] - Transportation business revenue increased by 11.6% year-on-year to 3.88 billion yuan, with first-time airline users growing by 241% quarter-on-quarter [2] - Other revenues, including online vacation services, reached 1.36 billion yuan, reflecting a 24.1% year-on-year increase, indicating a shift from essential travel to leisure and international travel [2] Market Trends - The demand for travel is evolving from "necessary travel" to "leisure vacation," with international flight ticket volume increasing by nearly 30% year-on-year, achieving record daily ticket volume [2] - The CEO of Tongcheng Travel emphasized the strong foundation for high-quality growth due to the continuous release of demand in the mass tourism market, particularly in non-first-tier cities [2]

人民财讯8月18日电，8月18日，同程旅行发布财报显示，2025年上半年，公司实现营收90.5亿元，同比 增长11.5%；经调整EBITDA(税息折旧及摊销前利润)23.4亿元，同比增长35.2%；经调整净利润15.6亿 元,同比增长28.6%；经调整净利润率为17.3%，比去年同期上升2.3个百分点。截至二季度末，同程旅行 年累计服务人次已达到19.9亿，同比增长7.2%。 ...

Core Insights - Tongcheng Travel reported a revenue of 9.05 billion yuan for the first half of 2025, marking an 11.5% year-on-year increase [1] - Adjusted EBITDA reached 2.34 billion yuan, reflecting a 35.2% year-on-year growth [1] - Adjusted net profit for the same period was 1.56 billion yuan [1] Revenue Breakdown - Accommodation business revenue grew by 18.8% year-on-year, reaching 2.56 billion yuan, indicating a significant increase in demand for high-quality lodging [1] - Transportation business revenue also saw an 11.6% year-on-year increase, totaling 3.88 billion yuan, with first-time airline users growing by 241% quarter-on-quarter [1] - Other revenues, including online vacation services, amounted to 1.36 billion yuan, up 24.1% year-on-year, showing a shift from essential travel to leisure and international travel [1] User Demographics - Over 87% of registered users on the Tongcheng Travel platform are from non-first-tier cities in China [2] - The number of annual paying users reached a new high of 252 million by the end of Q2 2025 [2] Market Outlook - The CEO of Tongcheng Travel expressed optimism about the ongoing demand in the mass tourism market, particularly from non-first-tier cities, and emphasized the company's commitment to enhancing product quality and intelligence [2]

Core Insights - Tongcheng Travel reported a revenue of 9.05 billion yuan for the first half of 2025, marking an 11.5% year-on-year increase, and a net profit of 1.311 billion yuan, up 57.86% [2] - The company achieved an adjusted EBITDA of 2.34 billion yuan, reflecting a 35.2% growth compared to the previous year [2] - The total number of service users reached 1.99 billion by the end of Q2 2025, representing a 7.2% increase year-on-year, with annual paying users hitting a record high of 252 million [2] Revenue Breakdown - Accommodation revenue grew by 18.8% to 2.56 billion yuan in the first half of 2025, indicating a significant rise in demand for high-quality lodging [2] - Transportation revenue increased by 11.6% to 3.88 billion yuan, with first-time airline passengers growing by 241% quarter-on-quarter [2] - Other revenues, including online vacation services, reached 1.36 billion yuan, up 24.1% year-on-year, highlighting a shift from essential travel to leisure and international travel [3] Market Trends - The demand for travel is evolving, particularly in non-first-tier cities, where consumer spending is on the rise, contributing to the overall growth of the travel market [3] - The international ticket volume for Tongcheng Travel saw a nearly 30% year-on-year increase in Q2 2025, with daily ticket sales reaching a historical high [3] - The CEO of Tongcheng Travel expressed optimism about the long-term prospects of the mass tourism market, emphasizing the company's commitment to enhancing product quality and service intelligence [3]

Core Insights - Tongcheng Travel reported a revenue of 9.05 billion yuan for the first half of 2025, marking an 11.5% year-on-year increase, with adjusted EBITDA reaching 2.34 billion yuan, up 35.2% [1] - The company has seen a significant increase in user engagement, with 87% of registered users coming from non-first-tier cities, and annual paid users reaching a record high of 252 million [2][4] - The demand for high-quality accommodation has surged, with accommodation revenue hitting 2.56 billion yuan, a growth of 18.8% year-on-year, driven by increased bookings for mid-range and high-end hotels [4][5] Financial Performance - In the first half of 2025, Tongcheng Travel achieved an adjusted net profit of 1.56 billion yuan, with average revenue per user (ARPU) increasing by 13.8% compared to the same period last year [4] - The transportation segment experienced an 11.6% year-on-year growth, generating 3.88 billion yuan in revenue [3] User Engagement and Trends - The number of first-time airline passengers using Tongcheng Travel increased by 241% quarter-on-quarter in Q2 2025, indicating a growing trend in air travel among new users [4] - The company has diversified its offerings to meet the evolving travel needs of users, with a 24.1% increase in revenue from online vacation services, reaching 1.36 billion yuan [5] Market Dynamics - The domestic tourism market is thriving, with Chinese residents spending 3.15 trillion yuan on travel in the first half of 2025, reflecting a robust recovery in the tourism industry [4] - Non-first-tier city residents are becoming the main force in travel consumption, showing a shift in market dynamics towards these demographics [2][5]

Group 1 - The core viewpoint of the articles highlights the strong performance of Tongcheng Travel in the first half of 2025, driven by the growing demand for travel, particularly in non-first-tier cities [1][2] - In the first half of 2025, Tongcheng Travel achieved a revenue of 9.05 billion yuan, representing a year-on-year growth of 11.5% [1] - Adjusted EBITDA for the same period was 2.34 billion yuan, reflecting a significant year-on-year increase of 35.2% [1] - The adjusted net profit for Tongcheng Travel reached 1.56 billion yuan in the first half of 2025 [1] Group 2 - By the end of Q2 2025, the cumulative number of service users reached 1.99 billion, marking a year-on-year growth of 7.2% [1] - The number of annual paying users hit a new high of 252 million [1] - The accommodation business revenue grew by 18.8% year-on-year, reaching 2.56 billion yuan, indicating an increase in demand for high-quality lodging [1] - Transportation business revenue also saw an 11.6% year-on-year increase, totaling 3.88 billion yuan, with a notable 241% quarter-on-quarter growth in first-time airline users [1] Group 3 - Other revenues, including online vacation services, reached 1.36 billion yuan in the first half of 2025, showing a year-on-year growth of 24.1% [2] - The demand for travel has shifted from "essential travel" to "leisure travel," expanding from domestic to international destinations [2] - In Q2 2025, the volume of international flight tickets sold increased by nearly 30%, with daily ticket sales reaching a historical high [2] - The CEO of Tongcheng Travel emphasized the sustained release of demand in the mass tourism market, particularly from non-first-tier cities, which supports the company's high-quality growth [2]

Core Insights - Tongcheng Travel reported a revenue of 9.05 billion yuan for the first half of 2025, marking an 11.5% year-on-year increase, with adjusted EBITDA reaching 2.34 billion yuan, up 35.2% [1] - The company has seen a significant increase in service users, with a total of 1.99 billion users served in the first half of 2025, reflecting a 7.2% growth [1][3] - The demand for high-quality travel experiences is rising, particularly in non-first-tier cities, leading to a notable increase in accommodation and transportation revenues [1][5] Revenue Breakdown - Accommodation revenue grew by 18.8% year-on-year, reaching 2.56 billion yuan, driven by increased demand for high-quality lodging [1][5] - Transportation revenue also saw an 11.6% increase, totaling 3.88 billion yuan, with a remarkable 241% quarter-on-quarter growth in first-time airline users [1][6] - Other income, including online vacation services, reached 1.36 billion yuan, up 24.1% year-on-year, indicating a shift from essential travel to leisure and vacation travel [2][6] User Demographics and Behavior - Over 87% of registered users on Tongcheng Travel's platform are from non-first-tier cities, highlighting the growing importance of this demographic in the travel market [3] - The number of paying users reached a record high of 252 million, with increased travel frequency among users [3] - The average revenue per user (ARPU) increased by 13.8% year-on-year, reflecting the rising value of users to the company [5] Market Trends - The domestic tourism market is thriving, with residents spending 3.15 trillion yuan on travel in the first half of 2025, contributing to the overall growth of the tourism industry [5] - There is a noticeable shift in travel preferences, with users increasingly seeking unique experiences and international travel options [6] - The CEO of Tongcheng Travel expressed optimism about the long-term growth potential of the mass tourism market, emphasizing the company's commitment to enhancing product quality and service [6]

Group 1 - The core viewpoint of the articles highlights the strong performance of Tongcheng Travel in the first half of 2025, driven by the growing demand for travel, particularly in non-first-tier cities [1][2] - In the first half of 2025, Tongcheng Travel achieved a revenue of 9.05 billion yuan, representing a year-on-year growth of 11.5% [1] - Adjusted EBITDA for the same period was 2.34 billion yuan, reflecting a significant year-on-year increase of 35.2% [1] - The adjusted net profit for the first half of 2025 reached 1.56 billion yuan [1] Group 2 - By the end of Q2 2025, Tongcheng Travel served a total of 1.99 billion users, marking a year-on-year growth of 7.2% [1] - The number of annual paying users reached a new high of 252 million [1] - The accommodation business revenue grew by 18.8% year-on-year, amounting to 2.56 billion yuan, indicating an increase in demand for high-quality lodging [1] - Transportation business revenue also saw an 11.6% year-on-year increase, totaling 3.88 billion yuan, with a notable 241% quarter-on-quarter growth in first-time airline users [1] Group 3 - Other revenues, including online vacation services, reached 1.36 billion yuan in the first half of 2025, showing a year-on-year growth of 24.1% [2] - The demand for travel has shifted from "essential travel" to "leisure vacation," expanding from domestic to international travel [2] - In Q2 2025, the volume of international flight tickets sold increased by nearly 30%, with daily ticket sales reaching a historical high [2] - The CEO of Tongcheng Travel emphasized the sustained release of demand in the mass tourism market, particularly from non-first-tier cities, which supports the company's high-quality growth [2]

Group 1 - The core viewpoint of the articles highlights the strong performance of Tongcheng Travel in the first half of 2025, driven by the growing demand for travel, particularly in non-first-tier cities [1][2] - In the first half of 2025, Tongcheng Travel achieved a revenue of 9.05 billion yuan, representing a year-on-year growth of 11.5% [1] - Adjusted EBITDA for the same period reached 2.34 billion yuan, with a significant year-on-year increase of 35.2% [1] - The adjusted net profit for the first half of 2025 was reported at 1.56 billion yuan [1] Group 2 - The total number of service users reached 1.99 billion by the end of Q2 2025, marking a year-on-year growth of 7.2% [1] - The number of annual paying users hit a record high of 252 million [1] - Revenue from accommodation services grew by 18.8% year-on-year, amounting to 2.56 billion yuan, indicating a rising demand for high-quality lodging [1] - Transportation revenue also saw an increase of 11.6% year-on-year, reaching 3.88 billion yuan, with a notable 241% quarter-on-quarter growth in first-time airline users [1] Group 3 - Other revenues, including online vacation services, reached 1.36 billion yuan in the first half of 2025, reflecting a year-on-year growth of 24.1% [2] - The demand for travel has shifted from "essential travel" to "leisure travel," expanding from domestic to international markets [2] - International ticket sales volume increased by nearly 30% year-on-year, with daily ticket volume hitting a historical high [2] - The CEO of Tongcheng Travel expressed optimism about the long-term prospects of the mass tourism market, emphasizing the company's commitment to enhancing product quality and service [2]

Performance Highlights [Q2 2025 Performance Highlights](index=1&type=section&id=2025%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E4%B8%9A%E7%BB%A9%E4%BA%AE%E7%82%B9) Tongcheng Travel Holdings Limited announced unaudited consolidated results for the three months ended June 30, 2025, with revenue increasing by 10.0% to RMB 4,669.4 million, adjusted EBITDA growing by 29.7%, and adjusted net profit increasing by 18.0%, while average monthly paying users also saw a 9.2% increase Q2 2025 Key Financial Indicators | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 4,669,431 | 4,245,357 | 10.0% | | Profit before income tax | 785,745 | 539,128 | 45.7% | | Profit for the period | 642,105 | 429,330 | 49.6% | | Adjusted EBITDA for the period | 1,185,177 | 913,465 | 29.7% | | Adjusted net profit for the period | 775,103 | 656,690 | 18.0% | | Revenue Growth (YoY) | 10.0% | 48.1% | - | | Adjusted EBITDA Margin | 25.4% | 21.5% | Up 3.9pp | | Adjusted Net Profit Margin | 16.6% | 15.5% | Up 1.1pp | - Average monthly paying users increased by **9.2% year-over-year** to **46.4 million** people[3](index=3&type=chunk)[7](index=7&type=chunk) [H1 2025 Performance Highlights](index=3&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E4%B8%9A%E7%BB%A9%E4%BA%AE%E7%82%B9) For the six months ended June 30, 2025, the company's revenue increased by 11.5% year-over-year to RMB 9,046.9 million, adjusted EBITDA grew by 35.2%, and adjusted net profit increased by 28.6%, with annual paying users and cumulative service person-times reaching new highs H1 2025 Key Financial Indicators | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 9,046,863 | 8,111,635 | 11.5% | | Profit before income tax | 1,590,807 | 991,458 | 60.5% | | Profit for the period | 1,320,606 | 829,586 | 59.2% | | Adjusted EBITDA for the period | 2,344,561 | 1,733,693 | 35.2% | | Adjusted net profit for the period | 1,563,271 | 1,215,178 | 28.6% | | Revenue Growth (YoY) | 11.5% | 48.8% | - | | Adjusted EBITDA Margin | 25.9% | 21.4% | Up 4.5pp | | Adjusted Net Profit Margin | 17.3% | 15.0% | Up 2.3pp | - Average monthly paying users increased by **9.2% year-over-year** to **46.5 million** people[10](index=10&type=chunk)[13](index=13&type=chunk) - Annual paying users increased by **10.2% year-over-year** to **251.7 million** people, reaching a new historical high[10](index=10&type=chunk)[13](index=13&type=chunk) - Cumulative service person-times for the twelve months increased by **7.2% year-over-year** to **1,990.6 million**[10](index=10&type=chunk)[13](index=13&type=chunk) Business Review [Market Overview and Company Performance](index=5&type=section&id=%E5%B8%82%E5%9C%BA%E6%A6%82%E5%86%B5%E4%B8%8E%E5%85%AC%E5%8F%B8%E8%A1%A8%E7%8E%B0) China's tourism industry maintained strong growth in Q2 2025 with increasing demand for experiential travel, and the company solidified its market position through user insights and product service optimization, achieving significant growth in total revenue and adjusted net profit - China's tourism industry maintained a strong growth momentum in Q2 2025, with increasing demand for experiential travel[14](index=14&type=chunk) - The company's total revenue increased by **10.0%** and **11.5% year-over-year** in Q2 and H1, respectively, with adjusted net profit reaching **RMB 775.1 million** and **RMB 1,563.3 million**, respectively[14](index=14&type=chunk) [User Growth and Traffic Strategy](index=5&type=section&id=%E7%94%A8%E6%88%B7%E5%A2%9E%E9%95%BF%E4%B8%8E%E6%B5%81%E9%87%8F%E7%AD%96%E7%95%A5) The company's user base and value continued to grow, with annual and monthly paying users reaching new highs, and its market position in non-first-tier cities was strengthened through multi-channel strategies including the WeChat ecosystem, proprietary apps, and social media - For the twelve months ended June 30, 2025, annual paying users increased by **10.2% year-over-year** to **251.7 million** people, reaching a new historical high[15](index=15&type=chunk) - For the three and six months ended June 30, 2025, average monthly paying users both increased by **9.2% year-over-year** to **46.4 million** and **46.5 million** people, respectively[15](index=15&type=chunk) - Over **87%** of registered users reside in non-first-tier cities in China, with **69%** of new paying users on the WeChat platform originating from non-first-tier cities[15](index=15&type=chunk) - The WeChat ecosystem and proprietary apps are significant traffic sources, with daily active users of proprietary apps showing strong growth in Q2 and reaching a new historical high[16](index=16&type=chunk) - The establishment of dedicated hotlines and customer service teams, along with enriched user benefits and welfare, significantly improved user retention and loyalty[17](index=17&type=chunk) [Core Business Segment Performance](index=6&type=section&id=%E6%A0%B8%E5%BF%83%E4%B8%9A%E5%8A%A1%E5%88%86%E9%83%A8%E8%A1%A8%E7%8E%B0) Core online travel platform business showed strong growth with increased revenue from accommodation and transportation ticketing, while other businesses performed exceptionally driven by hotel management, but the vacation business saw a revenue decline due to safety concerns in Southeast Asia [Accommodation Reservation Services](index=6&type=section&id=%E4%BD%8F%E5%AE%BF%E9%A2%84%E8%AE%A2%E6%9C%8D%E5%8A%A1) Accommodation business revenue increased by 15.2% year-over-year to RMB 1,371.4 million, driven by business volume growth and improved monetization capabilities, as the company actively explored new booking scenarios and focused on high-value users and expansion in lower-tier cities - Accommodation business revenue increased by **15.2% year-over-year** to **RMB 1,371.4 million**[18](index=18&type=chunk) - Actively exploring new accommodation booking scenarios such as weekend getaways, concerts, and sports events, driving daily average room nights to a new historical high[18](index=18&type=chunk) - Focusing on high-value users and intensifying expansion efforts in lower-tier cities to enhance market share and competitiveness[18](index=18&type=chunk) [Transportation Ticketing Services](index=6&type=section&id=%E4%BA%A4%E9%80%9A%E7%A5%A8%E5%8A%A1%E6%9C%8D%E5%8A%A1) Transportation ticketing services revenue increased by 7.9% year-over-year to RMB 1,881.0 million, with international air ticket volume reaching a new historical high, growing by nearly 30%, and improved monetization capabilities for train ticket services - Transportation ticketing services revenue increased by **7.9% year-over-year** to **RMB 1,881.0 million**[19](index=19&type=chunk) - International air ticket volume reached a new historical high, growing by nearly **30% year-over-year**[19](index=19&type=chunk) - Continuously upgrading the Smart Travel system and optimizing operational strategies to enhance the monetization capability of train ticket services[19](index=19&type=chunk) [Other Businesses](index=6&type=section&id=%E5%85%B6%E4%BB%96%E4%B8%9A%E5%8A%A1) Other businesses revenue increased by 27.5% to RMB 755.4 million, primarily driven by the hotel management business, which continues its healthy asset-light development with over 2,700 hotels in operation and another 1,500 in preparation - Other businesses revenue increased by **27.5% year-over-year** to **RMB 755.4 million**[19](index=19&type=chunk) - The number of hotels operating under the hotel management business platform has exceeded **2,700**, with another **1,500** hotels in preparation[19](index=19&type=chunk) [Vacation Business](index=6&type=section&id=%E5%BA%A6%E5%81%87%E4%B8%9A%E5%8A%A1) Vacation business revenue decreased by 8.0% to RMB 661.7 million, primarily due to safety concerns in Southeast Asia - Vacation business revenue decreased by **8.0% year-over-year** to **RMB 661.7 million**[19](index=19&type=chunk) - The revenue decline was primarily due to safety concerns in Southeast Asia, leading to a reduction in outbound tour group revenue[19](index=19&type=chunk) [Technology Empowerment and Strategic Partnerships](index=7&type=section&id=%E6%8A%80%E6%9C%AF%E8%B5%8B%E8%83%BD%E4%B8%8E%E6%88%98%E7%95%A5%E5%90%88%E4%BD%9C) The company is committed to empowering industry partners through technology, forming strategic collaborations with Shandong Airport Management Group and Xi'an Xianyang International Airport, while also integrating cutting-edge technology to launch the AI itinerary planning agent DeepTrip, enhancing operational efficiency and user experience - Reached a strategic partnership with Shandong Airport Management Group to help optimize route networks and improve operational efficiency[20](index=20&type=chunk) - Fully upgraded strategic cooperation with Xi'an Xianyang International Airport, deepening intermodal product development, member benefit integration, and joint marketing[20](index=20&type=chunk) - Launched AI itinerary planning agent DeepTrip, integrating platform supply chain capabilities with DeepSeek inference capabilities to optimize customized tour consultation processes, enhancing user experience and booking efficiency[21](index=21&type=chunk) Business Outlook and Strategy [Business Outlook and Strategy](index=7&type=section&id=%E4%B8%9A%E5%8A%A1%E5%89%8D%E6%99%AF%E5%8F%8A%E7%AD%96%E7%95%A5) The company remains optimistic about the development prospects of China's tourism industry, benefiting from strong market demand, government support, improved infrastructure, and digital transformation, and will continue to deepen its core online travel platform business, expand outbound tourism, strengthen hotel management, and seek strategic growth opportunities - China's tourism industry maintains high-quality development driven by strong market demand, with summer travel enthusiasm remaining high[22](index=22&type=chunk) - Optimistic about the development prospects of China's tourism industry, benefiting from government attention, improved infrastructure, and digital transformation[22](index=22&type=chunk) - Tourist preferences are shifting towards more experiential and immersive travel methods, driving the emergence of new tourism scenarios[22](index=22&type=chunk) - Confident in the growth potential of China's outbound tourism market, benefiting from simplified visa policies, restored international flight capacity, and increased demand[22](index=22&type=chunk) - Future strategies include deepening the core online travel platform, expanding outbound tourism, strengthening the hotel management business, and seeking strategic growth opportunities[22](index=22&type=chunk) Detailed Financial Performance Analysis [Q2 2025 vs. Q2 2024 Comparison](index=8&type=section&id=2025%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E4%B8%8E2024%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E6%AF%94%E8%BE%83) This section details the financial performance comparison between Q2 2025 and the same period in 2024, covering revenue, gross profit, various operating expenses, changes in financial assets, and final profit, showing significant growth in revenue and operating profit but also increases in some expense items Q2 2025 vs. Q2 2024 Income Statement Comparison | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 4,669,431 | 4,245,357 | +10.0% | | Gross Profit | 3,036,282 | 2,744,335 | +10.6% | | Operating Profit | 809,316 | 517,025 | +56.5% | | Profit for the Period | 642,105 | 429,330 | +49.6% | | Profit Attributable to Equity Holders of the Company | 641,813 | 433,691 | +48.0% | [Revenue Analysis](index=9&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue increased by 10.0% year-over-year to RMB 4,669.4 million, with core online travel platform revenue growing by 13.7%, including 15.2% in accommodation reservation services and 7.9% in transportation ticketing services, while other revenue grew by 27.5% driven by hotel management services, and vacation business revenue declined by 8.0% due to safety concerns in Southeast Asia Q2 2025 Revenue Segment Comparison | Revenue Segment | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Core Online Travel Platform | 4,007,775 | 3,525,959 | 13.7% | | Accommodation Reservation Services | 1,371,367 | 1,190,879 | 15.2% | | Transportation Ticketing Services | 1,881,010 | 1,742,736 | 7.9% | | Other | 755,398 | 592,344 | 27.5% | | Vacation | 661,656 | 719,398 | (8.0)% | | **Total Revenue** | **4,669,431** | **4,245,357** | **10.0%** | - Vacation revenue decreased by **8.0%** to **RMB 661.7 million**, primarily due to reduced outbound tour group revenue from Southeast Asia[27](index=27&type=chunk) [Analysis of Cost of Sales, Operating Expenses, and Unallocated Items](index=10&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC%E3%80%81%E7%BB%8F%E8%90%A5%E5%BC%80%E6%94%AF%E5%8F%8A%E6%9C%AA%E5%88%86%E9%85%8D%E9%A1%B9%E7%9B%AE%E5%88%86%E6%9E%90) Cost of sales, service development expenses, sales and marketing expenses, and administrative expenses all saw varying changes, with cost of sales increasing by 8.8% due to higher procurement costs and depreciation, sales and marketing expenses growing by 2.4% but decreasing as a percentage of revenue, and net reversal of impairment losses on financial assets increasing, alongside significant growth in fair value gains on investments measured at fair value Q2 2025 Details of Cost of Sales, Operating Expenses, and Unallocated Items | Item | 2025 (RMB '000) | % of Total | 2024 (RMB '000) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 1,633,149 | 42.3% | 1,501,022 | 40.2% | | Service Development Expenses | 504,524 | 13.1% | 494,281 | 13.3% | | Sales and Marketing Expenses | 1,538,292 | 39.9% | 1,501,710 | 40.2% | | Administrative Expenses | 277,742 | 7.2% | 272,193 | 7.3% | | Net Reversal of Impairment Losses on Financial Assets | (8,745) | (0.2)% | (8,267) | (0.2)% | | Fair Value Changes of Investments Measured at FVTPL | (48,208) | (1.2)% | (19,468) | (0.5)% | | Other Income | (17,399) | (0.5)% | (27,708) | (0.7)% | | Other Gains/(Losses) Net | (19,240) | (0.6)% | 14,569 | 0.4% | | **Total Cost of Sales, Operating Expenses, and Unallocated Items** | **3,860,115** | **100.0%** | **3,728,332** | **100.0%** | - Cost of sales increased by **8.8%** to **RMB 1,633.1 million**, primarily due to increased costs for value-added user services, depreciation expenses, and employee benefit expenses[29](index=29&type=chunk) - Sales and marketing expenses increased by **2.4%** to **RMB 1,538.3 million**, but excluding share-based compensation, the percentage of revenue decreased from **35.1%** to **32.8%**[31](index=31&type=chunk) - Fair value gains on investments measured at fair value through profit or loss reached **RMB 48.2 million**, primarily influenced by fair value gains from investments in certain public and private companies and wealth management products[34](index=34&type=chunk) - Other net gains amounted to **RMB 19.2 million**, primarily due to exchange gains of **RMB 10.5 million**[36](index=36&type=chunk) [Non-IFRS Financial Measures](index=13&type=section&id=%E9%9D%9E%E5%9B%BD%E9%99%85%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E5%87%86%E5%88%99%E8%B4%A2%E5%8A%A1%E8%AE%A1%E9%87%8F) The company uses adjusted EBITDA and adjusted net profit for the period as non-IFRS financial measures to provide a more comparable assessment of core business performance, excluding non-cash or non-core business-driven items such as share-based compensation, amortization, and depreciation - Adjusted EBITDA is defined as operating profit adjusted for share-based compensation, amortization of intangible assets, depreciation, exchange gains/losses, and other items[39](index=39&type=chunk) - Adjusted net profit for the period is defined as profit for the period adjusted for net share-based compensation, amortization of intangible assets from acquisitions, exchange gains/losses, and other items[39](index=39&type=chunk) [Reconciliation of Adjusted EBITDA to Operating Profit](index=14&type=section&id=%E7%BB%8F%E8%B0%83%E6%95%B4EBITDA%E4%B8%8E%E7%BB%8F%E8%90%A5%E6%BA%A2%E5%88%A9%E7%9A%84%E5%AF%B9%E8%B4%A6) This section provides a detailed reconciliation of adjusted EBITDA to operating profit, illustrating the impact of various adjustment items on operating profit to derive adjusted EBITDA Reconciliation of Adjusted EBITDA to Operating Profit (RMB '000) | Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Profit for the Period | 809,316 | 517,025 | 1,626,599 | 972,050 | | Add: Total Share-based Compensation | 73,878 | 107,910 | 149,057 | 222,124 | | Add: Amortization of Intangible Assets | 195,058 | 170,092 | 389,886 | 346,770 | | Add: Depreciation of Property, Plant and Equipment and Right-of-use Assets | 135,807 | 84,815 | 226,555 | 166,306 | | Less: Net Exchange (Gains)/Losses | (10,452) | 29,259 | (18,167) | 46,932 | | Less: Net (Gains)/Losses from Investees | (21,412) | 4,470 | (27,385) | (18,574) | | Other | 2,982 | (106) | (1,984) | (1,915) | | **Adjusted EBITDA** | **1,185,177** | **913,465** | **2,344,561** | **1,733,693** | [Reconciliation of Adjusted Net Profit to Profit for the Period](index=15&type=section&id=%E6%9C%9F%E5%86%85%E7%BB%8F%E8%B0%83%E6%95%B4%E6%BA%A2%E5%88%A9%E4%B8%8E%E6%9C%9F%E5%86%85%E6%BA%A2%E5%88%A9%E7%9A%84%E5%AF%B9%E8%B4%A6) This section provides a detailed reconciliation of adjusted net profit for the period to profit for the period, illustrating the impact of various adjustment items on profit for the period to derive adjusted net profit Reconciliation of Adjusted Net Profit for the Period to Profit for the Period (RMB '000) | Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | 642,105 | 429,330 | 1,320,606 | 829,586 | | Add: Net Share-based Compensation | 91,607 | 124,001 | 149,523 | 211,817 | | Add: Amortization of Intangible Assets from Acquisitions | 65,100 | 64,417 | 130,201 | 134,969 | | Less: Net Exchange (Gains)/Losses | (10,452) | 29,259 | (18,167) | 46,932 | | Less: Net (Gains)/Losses from Investees | (21,412) | 4,470 | (27,385) | (18,574) | | Other | 8,155 | 5,213 | 8,493 | 10,448 | | **Adjusted Net Profit for the Period** | **775,103** | **656,690** | **1,563,271** | **1,215,178** | [Share-based Compensation](index=16&type=section&id=%E4%BB%A5%E8%82%A1%E4%BB%BD%E4%B8%BA%E5%9F%BA%E7%A1%80%E7%9A%84%E9%85%AC%E9%87%91) This section lists the total and net share-based compensation recognized in cost of sales and expense items, broken down by different expense categories Details of Share-based Compensation (RMB '000) | Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 1,962 | 3,928 | 3,942 | 8,019 | | Service Development Expenses | 13,012 | 26,753 | 26,421 | 54,724 | | Sales and Marketing Expenses | 6,493 | 13,475 | 13,548 | 27,499 | | Administrative Expenses | 52,411 | 63,754 | 105,146 | 131,882 | | **Total Share-based Compensation** | **73,878** | **107,910** | **149,057** | **222,124** | | Tax Impact of Provisional Differences | 17,729 | 16,091 | 466 | (10,307) | | **Net Share-based Compensation** | **91,607** | **124,001** | **149,523** | **211,817** | Liquidity and Financial Resources [Cash Flow](index=16&type=section&id=%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F) The company primarily funds its liquidity needs through net cash generated from operations and bank borrowings; for the six months ended June 30, 2025, net cash from operating activities significantly increased, but net cash outflow from investing activities substantially rose, leading to a net decrease in cash and cash equivalents H1 2025 Cash Flow (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,035,147 | 1,294,712 | | Net Cash Flow (Used in)/Generated from Investing Activities | (3,559,529) | 576,752 | | Net Cash Flow (Used in)/Generated from Financing Activities | (216,859) | 688,029 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (741,241) | 2,559,493 | | Cash and Cash Equivalents at End of Period | 7,272,479 | 7,747,983 | - Net cash generated from operating activities was **RMB 3,035.1 million**, primarily driven by profit before income tax and an increase in trade payables[46](index=46&type=chunk) - Net cash used in investing activities was **RMB 3,559.5 million**, primarily due to net cash paid for wealth management products and time deposits, and the purchase of property, plant and equipment[47](index=47&type=chunk) - Net cash used in financing activities was **RMB 216.9 million**, primarily due to repayment of bank borrowings and payment of long-term lease liabilities[48](index=48&type=chunk) [Capital Gearing Ratio](index=17&type=section&id=%E8%B5%84%E6%9C%AC%E8%B4%9F%E5%80%BA%E6%AF%94%E7%8E%87) As of June 30, 2025, the company's capital gearing ratio was approximately 25.0% - As of June 30, 2025, the capital gearing ratio was approximately **25.0%**[49](index=49&type=chunk) [Pledge of Assets](index=17&type=section&id=%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) On January 9, 2024, the company borrowed RMB 410.0 million for an acquisition completed in 2023, with the loan secured by 100% equity interest in the target company - On January 9, 2024, the company borrowed **RMB 410.0 million**, secured by **100%** equity interest in the target company, to finance an acquisition completed in 2023[50](index=50&type=chunk) [Capital Expenditure](index=18&type=section&id=%E8%B5%84%E6%9C%AC%E5%BC%80%E6%94%AF) For the first half of 2025, total capital expenditure amounted to RMB 440.4 million, primarily for the acquisition of property, plant and equipment, purchase of intangible assets, and long-term investments, which was a decrease compared to the same period last year H1 2025 Total Capital Expenditure (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 224,322 | 372,679 | | Purchase of Intangible Assets | 31,940 | 6,607 | | Long-term Investments | 184,104 | 574,201 | | **Total Capital Expenditure** | **440,366** | **953,487** | - Capital expenditure is primarily funded by cash generated from operations and bank borrowings[51](index=51&type=chunk) [Long-term Investments](index=18&type=section&id=%E9%95%BF%E6%9C%9F%E6%8A%95%E8%B5%84) As of June 30, 2025, total long-term investments amounted to RMB 3,775.2 million, a decrease from the end of 2024, mainly due to the disposal of certain equity-accounted investments and fair value-measured investments Total Long-term Investments (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investments Accounted for Using the Equity Method | 1,632,892 | 1,682,145 | | Investments Measured at Fair Value Through Profit or Loss | 798,135 | 957,238 | | Investments Measured at Amortized Cost | 1,344,153 | 1,329,289 | | **Total Long-term Investments** | **3,775,180** | **3,968,672** | - The decrease in long-term investments was primarily due to the disposal of investments or interests in certain private companies and funds with significant influence, as well as the disposal of investments in certain private companies[52](index=52&type=chunk) - The overall strategy for long-term investments is to invest in or acquire businesses that can foster growth and bring benefits to the company[52](index=52&type=chunk) [Short-term Investments](index=19&type=section&id=%E7%9F%AD%E6%9C%9F%E6%8A%95%E8%B5%84) As of June 30, 2025, total short-term investments amounted to RMB 6,162.6 million, a significant increase from the end of 2024, primarily driven by short-term investments (wealth management products) measured at fair value through profit or loss Total Short-term Investments (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Short-term Investments Measured at Amortized Cost | 1,042,817 | 160,639 | | Short-term Investments Measured at Fair Value Through Profit or Loss | 5,119,817 | 2,733,033 | | **Total Short-term Investments** | **6,162,634** | **2,893,672** | - Short-term investments measured at fair value through profit or loss primarily consist of wealth management products with expected returns ranging from **0.86% to 6.50%**[53](index=53&type=chunk) - The company chooses to invest in highly liquid, secure financial products with reasonable returns to generate higher returns than demand deposits or time deposits in a low-interest rate environment[53](index=53&type=chunk) [Significant Acquisitions and Disposals](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) On April 17, 2025, the company, through eLong, entered into an agreement with Wanda Hotels Development to acquire 100% equity interest in Wanda Hotel Management for an initial consideration of approximately RMB 2,497.3 million, upon which Wanda Hotel Management will become an indirect wholly-owned subsidiary of the company - The company, through eLong, acquired **100%** equity interest in Wanda Hotel Management for an initial consideration of approximately **RMB 2,497.3 million**[54](index=54&type=chunk) - Upon completion, Wanda Hotel Management will become an indirect wholly-owned subsidiary of the company, and its financial results will be consolidated into the Group's financial statements[54](index=54&type=chunk) [Foreign Exchange Risk](index=19&type=section&id=%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9) The company manages foreign exchange risk by regularly reviewing its net foreign exchange exposure and entering into derivative contracts for economic hedging purposes - The company manages foreign exchange risk by regularly reviewing its net foreign exchange exposure[55](index=55&type=chunk) - As of June 30, 2025, the company entered into certain derivative contracts with financial institutions for economic hedging purposes[56](index=56&type=chunk) Employees [Employees](index=20&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, the company had 10,402 full-time employees, primarily located in non-first-tier cities in China, and recruits through diverse channels, provides internal training, participates in statutory employee benefit plans, and maintains good employee relations without significant labor disputes - As of June 30, 2025, the company had **10,402** full-time employees[57](index=57&type=chunk) - Approximately **30.3%** and **6.9%** of employees are located in Suzhou and Beijing, respectively, with the remaining **62.8%** in other regions of China and overseas[57](index=57&type=chunk) - The company recruits through campus recruitment, recruitment agencies, and online channels, and provides management, technical, and other training[57](index=57&type=chunk) - Participates in China's statutory employee welfare plans, including social insurance funds and housing provident funds[57](index=57&type=chunk) - The company maintains good working relationships with its employees and has not experienced any significant labor disputes[57](index=57&type=chunk) Interim Condensed Consolidated Financial Statements [Interim Condensed Consolidated Statement of Profit or Loss](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the unaudited consolidated profit or loss for the three and six months ended June 30, 2025, including revenue, cost of sales, gross profit, various expenses, operating profit, and profit for the period - Provides detailed data for revenue, gross profit, operating profit, and profit for the period for the three and six months ended June 30, 2025 and 2024, respectively[58](index=58&type=chunk) [Interim Condensed Consolidated Statement of Comprehensive Income](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the unaudited consolidated comprehensive income for the three and six months ended June 30, 2025, including profit for the period and other comprehensive income/loss - Provides detailed data for profit for the period and other comprehensive income/loss for the three and six months ended June 30, 2025 and 2024, respectively[59](index=59&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=23&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) This statement presents the unaudited consolidated financial position as of June 30, 2025, and December 31, 2024, including non-current assets, current assets, equity, and liabilities - Provides detailed data for assets, liabilities, and equity as of June 30, 2025, and December 31, 2024[60](index=60&type=chunk)[61](index=61&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement presents the unaudited consolidated cash flows for the six months ended June 30, 2025, including cash flows from operating, investing, and financing activities - Provides detailed data for net cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024, respectively[62](index=62&type=chunk) Notes to the Financial Statements [General Information](index=26&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) Tongcheng Travel Holdings Limited was incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, with the Group primarily engaged in travel-related services in China, and the interim condensed consolidated financial information is prepared in accordance with IAS 34, adopting certain new or revised standards - The Company was incorporated on January 14, 2016, under the laws of the Cayman Islands, and its shares have been listed on the Hong Kong Stock Exchange since November 26, 2018[63](index=63&type=chunk) - The Group is primarily engaged in providing travel-related services in China, including accommodation reservation, transportation ticketing, online advertising, hotel management (core online travel platform), and offline travel agencies, operating scenic spots (vacation business)[63](index=63&type=chunk) - The interim condensed consolidated financial information is prepared in accordance with IAS 34 and has adopted new or revised standards, such as 'Lack of Exchangeability—Amendments to IAS 21'[63](index=63&type=chunk) - Certain new or revised standards (e.g., IFRS 18, IFRS 19) are not yet mandatorily effective and are not expected to have a significant impact on the Group[65](index=65&type=chunk)[66](index=66&type=chunk) [Segment Information](index=27&type=section&id=%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group identifies two reportable segments: core online travel platform and vacation, with the chief operating decision maker assessing business performance based on each segment's revenue and operating profit/loss, and unallocated items primarily include share-based compensation, amortization of intangible assets, and corporate administrative expenses - The Group identifies two reportable segments: core online travel platform and vacation[67](index=67&type=chunk) - The chief operating decision maker assesses segment performance based on the revenue and operating profit/loss of each operating segment[67](index=67&type=chunk) Q2 2025 Segment Operating Profit/(Loss) (RMB '000) | Segment | Core Online Travel Platform | Vacation | Unallocated Items | Total | | :--- | :--- | :--- | :--- | :--- | | Operating Profit/(Loss) | 1,070,334 | 4,427 | (265,445) | 809,316 | H1 2025 Segment Operating Profit/(Loss) (RMB '000) | Segment | Core Online Travel Platform | Vacation | Unallocated Items | Total | | :--- | :--- | :--- | :--- | :--- | | Operating Profit/(Loss) | 2,177,173 | 29,970 | (580,544) | 1,626,599 | [Expenses by Nature](index=28&type=section&id=%E6%8C%89%E6%80%A7%E8%B3%AA%E5%8A%83%E5%88%86%E7%9A%84%E9%96%8B%E6%94%AF) This section details expenses by nature for the three and six months ended June 30, 2025, including employee benefits, advertising and promotion, and travel product costs Q2 2025 Expenses by Nature (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Employee Benefit Expenses | 1,029,124 | 1,002,817 | | Advertising and Promotion Expenses | 980,841 | 971,271 | | Travel Product Costs | 669,712 | 712,662 | | Order Payment and Settlement Costs | 335,385 | 336,624 | | Depreciation and Amortization Expenses | 330,865 | 254,907 | | Procurement Costs | 228,829 | 142,462 | | Commission Expenses | 166,632 | 143,920 | | Bandwidth and Server Hosting Fees | 52,335 | 39,881 | | Short-term Rental and Utility Fees | 33,702 | 26,465 | | Professional Service Fees and Subcontracting Fees | 33,449 | 53,033 | | Travel and Entertainment Expenses | 32,193 | 34,445 | | Taxes and Surcharges | 25,088 | 21,968 | | Telephone and Communication | 4,316 | 2,918 | | Other | 31,236 | 25,833 | | **Total** | **3,953,707** | **3,769,206** | [Other Gains/(Losses) Net](index=29&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E5%87%80%E9%A2%9D) For the three and six months ended June 30, 2025, the company recorded net other gains, primarily influenced by exchange gains and investment income from investments measured at amortized cost Q2 2025 Other Gains/(Losses) Net (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Exchange Gains/(Losses) | 10,452 | (29,259) | | Investment Income from Investments Measured at Amortized Cost | 19,657 | 12,498 | | Net (Losses)/Gains from Derivative Financial Instruments | (2,982) | 106 | | Net (Losses)/Gains from Disposal/Partial Disposal of Equity-Accounted Investments | (7,113) | 206 | | Net Losses from Disposal/Write-off of Property, Plant and Equipment | (4,163) | (349) | | Other | 3,389 | 2,229 | | **Total** | **19,240** | **(14,569)** | [Income Tax Expense](index=29&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The company's income tax expense increased in both Q2 and H1 2025, with Chinese subsidiaries enjoying a 15% preferential tax rate as high-tech enterprises, some small low-profit enterprises benefiting from a 20% preferential rate, and others paying at 25%, while no deferred tax liability for withholding tax on retained earnings of Chinese subsidiaries has been recognized Q2 2025 Income Tax Expense (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Income Tax | 122,580 | 93,592 | | Deferred Income Tax | 21,060 | 16,206 | | **Total** | **143,640** | **109,798** | - Four direct Chinese subsidiaries are recognized as high-tech enterprises, subject to a **15%** preferential tax rate, with qualifications to be renewed between 2025 and 2026[74](index=74&type=chunk) - Certain subsidiaries, as small low-profit enterprises, enjoy a **20%** preferential corporate income tax rate[75](index=75&type=chunk) - The company has not recognized deferred tax liabilities for withholding tax on retained earnings distributed by Chinese subsidiaries, as there are no plans for distribution[75](index=75&type=chunk) - The Group has assessed the potential risks of Pillar Two income tax and does not expect to pay any related top-up tax for the financial year ending December 2025[76](index=76&type=chunk) [Earnings Per Share](index=31&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This section presents the basic and diluted earnings per share for the three and six months ended June 30, 2025, along with calculation details Q2 2025 Basic Earnings Per Share (RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (RMB '000) | 641,813 | 433,691 | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 2,282,569 | 2,271,428 | | **Basic Earnings Per Share (RMB)** | **0.28** | **0.19** | Q2 2025 Diluted Earnings Per Share (RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company for Diluted EPS Calculation (RMB '000) | 641,813 | 433,691 | | Weighted Average Number of Ordinary Shares for Diluted EPS Calculation (thousand shares) | 2,315,864 | 2,299,776 | | **Diluted Earnings Per Share (RMB)** | **0.28** | **0.19** | - As of June 30, 2025, a total of **129,915,768** share options and **27,729,953** restricted share units remained unexercised, having a potential dilutive effect on earnings per share[79](index=79&type=chunk) [Dividends](index=32&type=section&id=%E8%82%A1%E6%81%AF) The company declared a final dividend of HKD 0.18 per share for the year ended December 31, 2024, on March 20, 2025, which was paid on July 15, 2025, and no dividends were declared or paid for the six months ended June 30, 2025 - The 2024 final dividend of **HKD 0.18 per share** (approximately **RMB 379.1 million**) was paid on July 15, 2025[81](index=81&type=chunk) - For the six months ended June 30, 2025, the company did not declare or pay any dividends[81](index=81&type=chunk) [Investments Accounted for Using the Equity Method](index=32&type=section&id=%E6%8E%A1%E7%94%A8%E6%9D%83%E7%9B%8A%E6%B3%95%E5%85%A5%E8%B3%B9%E7%9A%84%E6%8A%95%E8%B3%87) As of June 30, 2025, the closing balance of investments accounted for using the equity method was RMB 1,632.9 million, a decrease from the beginning of the period, primarily due to dividend payments and the disposal of certain investments Changes in Investments Accounted for Using the Equity Method (RMB '000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Beginning Balance | 1,682,145 | 1,429,800 | | Additions | 2,350 | 138,872 | | Dividends | (55,121) | (46,168) | | Share of Profit | 23,464 | 10,848 | | Disposals | (22,744) | (2,830) | | **Ending Balance** | **1,632,892** | **1,629,738** | [Investments](index=32&type=section&id=%E6%8A%95%E8%B3%87) This section details the company's short-term and long-term investments, including types of investments measured at amortized cost and fair value through profit or loss, their rates of return, and fair value changes Total Investments (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Assets - Short-term Investments | 6,162,634 | 2,893,672 | | Non-current Assets - Long-term Investments | 2,142,288 | 2,286,527 | | **Total** | **8,304,922** | **5,180,199** | [Short-term Investments Measured at Amortized Cost](index=32&type=section&id=%E6%8C%89%E6%94%A4%E9%8A%B7%E6%88%90%E6%9C%AC%E8%A8%88%E9%87%8F%E7%9A%84%E7%9F%AD%E6%9C%9F%E6%8A%95%E8%B3%87) Short-term investments measured at amortized cost are time deposits of less than one year, denominated in USD or RMB, held to collect contractual cash flows - Short-term investments are time deposits of less than one year, with returns calculated at a fixed interest rate, denominated in USD or RMB[84](index=84&type=chunk) [Short-term Investments Measured at Fair Value Through Profit or Loss](index=33&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E7%9F%AD%E6%9C%9F%E6%8A%95%E8%B3%87) These short-term investments primarily consist of wealth management products denominated in RMB, HKD, or USD, with expected returns ranging from 0.86% to 6.50%, and are measured at fair value because their returns are not guaranteed - Short-term investments primarily consist of wealth management products with expected returns ranging from **0.86% to 6.50%** (2024: **1.90% to 4.58%**)[85](index=85&type=chunk) - All wealth management products have unguaranteed returns and are therefore measured at fair value through profit or loss[85](index=85&type=chunk) [Long-term Investments Measured at Amortized Cost](index=33&type=section&id=%E6%8C%89%E6%94%A4%E9%8A%B7%E6%88%90%E6%9C%AC%E8%A8%88%E9%87%8F%E7%9A%84%E9%95%B7%E6%9C%9F%E6%8A%95%E8%B3%87) Long-term investments measured at amortized cost are time deposits with maturities of 2 to 3 years, denominated in RMB, with fixed annual interest rates ranging from 2.50% to 3.35% - Long-term investments are time deposits with maturities of **2 to 3 years**, with fixed annual interest rates ranging from **2.50% to 3.35%** (2024: **2.70% to 3.56%**), all denominated in RMB[86](index=86&type=chunk) [Long-term Investments Measured at Fair Value Through Profit or Loss](index=33&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%95%B7%E6%9C%9F%E6%8A%95%E8%B3%87) These long-term investments include equity in private and public companies and wealth management products with maturities over one year, measured at fair value due to lack of control or unguaranteed returns, with wealth management products having an expected return of 8.00% - Long-term investments include equity in private and public companies and wealth management products with maturities over one year[86](index=86&type=chunk) - Wealth management products have an expected return of **8.00%** (2024: **3.43% to 8.00%**), with unguaranteed returns[87](index=87&type=chunk) - Fair value of private company equity is valued using unobservable inputs (Level 3), while public company equity is measured at market quotations (Level 1)[86](index=86&type=chunk) [Fair Value Changes of Investments Measured at Fair Value Through Profit or Loss](index=34&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E6%8A%95%E8%B3%87%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%AE%8A%E5%8B%95) For the three and six months ended June 30, 2025, both short-term and long-term investments measured at fair value through profit or loss recorded fair value gains Q2 2025 FVTPL Investment Fair Value Changes (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Fair Value Changes of Short-term Investments | 22,855 | 24,239 | | Fair Value Changes of Long-term Investments | 25,353 | (4,771) | | **Total** | **48,208** | **19,468** | [Prepayments and Other Receivables](index=34&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total prepayments and other receivables amounted to RMB 5,976.8 million, with a significant portion being current, including restricted designated deposit accounts and amounts due from related parties Total Prepayments and Other Receivables (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current, Total | 574,433 | 475,761 | | Current, Total | 5,976,791 | 5,450,137 | | **Total** | **6,551,224** | **5,925,898** | - Among current prepayments and other receivables, restricted designated deposit accounts amounted to **RMB 2,933.2 million**, and amounts due from related parties were **RMB 852.8 million**[89](index=89&type=chunk) [Trade Receivables](index=35&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables amounted to RMB 2,144.3 million, with most balances aged within six months Trade Receivables Aging Analysis (RMB '000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Up to Six Months | 2,102,898 | 1,702,620 | | Over Six Months | 102,575 | 117,550 | | Less: Impairment Allowance | (61,188) | (92,583) | | **Ending Balance** | **2,144,285** | **1,727,587** | - The company typically grants customers a **30-day** credit period[90](index=90&type=chunk) [Derivative Financial Instruments](index=35&type=section&id=%E8%A1%8D%E7%94%9F%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7) The company recognized net realized gains and unrealized losses/gains from forward exchange contracts in other gains/losses net Q2 2025 Derivative Financial Instruments Profit or Loss (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Realized Gains | – | – | | Unrealized (Losses)/Gains | (2,982) | 106 | | **Total** | **(2,982)** | **106** | [Borrowings](index=36&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the company's total borrowings amounted to RMB 4,062.1 million, comprising unsecured and secured long-term and short-term bank borrowings Total Borrowings (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Liabilities | 2,687,325 | 2,794,457 | | Current Liabilities | 1,374,809 | 1,359,289 | | **Total** | **4,062,134** | **4,153,746** | [Trade Payables](index=36&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables amounted to RMB 6,233.6 million, with most balances aged within six months Trade Payables Aging Analysis (RMB '000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Up to Six Months | 6,079,391 | 4,228,780 | | Over Six Months | 154,225 | 238,350 | | **Total** | **6,233,616** | **4,467,130** | Corporate Governance and Other Information [Interim Dividend](index=37&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend to shareholders for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[94](index=94&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=37&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and the company held no treasury shares - For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[95](index=95&type=chunk) - As of June 30, 2025, the company held no treasury shares[96](index=96&type=chunk) [Standard Code for Securities Transactions](index=37&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted and complied with the Standard Code for Securities Transactions, with all directors confirming compliance, and no instances of employee breaches have been noted - The company has adopted and complied with the Standard Code, and all directors have confirmed compliance[97](index=97&type=chunk) - No instances of employee breaches of the Standard Code have been noted[97](index=97&type=chunk) [Compliance with Corporate Governance Code](index=37&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company has adopted and applied the principles and code provisions of the Corporate Governance Code and has been in compliance for the six months ended June 30, 2025 - The company has adopted and applied the Corporate Governance Code and has consistently complied with its code provisions[98](index=98&type=chunk) [Audit Committee](index=37&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%A1%E6%9C%83) The Audit Committee, comprising three members, has reviewed the Group's unaudited condensed consolidated financial results for the six months ended June 30, 2025, and found them to be in compliance with relevant accounting standards, rules, and regulations - The Audit Committee comprises three members, including two independent non-executive directors and one non-executive director[99](index=99&type=chunk) - Reviewed the Group's unaudited condensed consolidated financial results for the six months ended June 30, 2025, and deemed them to be in compliance with relevant accounting standards, rules, and regulations[99](index=99&type=chunk) [Events After Six Months Ended June 30, 2025](index=37&type=section&id=%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events requiring disclosure in this announcement occurred from June 30, 2025, up to the date of this announcement - No significant post-balance sheet events occurred from June 30, 2025, up to the date of this announcement[100](index=100&type=chunk) Publication of Results Announcement and Interim Report [Publication of Results Announcement and Interim Report](index=38&type=section&id=%E5%88%8A%E7%99%BC%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement has been published on the HKEXnews website and the company's website, and the company's interim report for the three and six months ended June 30, 2025, will be dispatched or made available electronically to shareholders in due course - The results announcement has been published on the HKEXnews website (www.hkexnews.hk) and the company's website (www.tongchengir.com)[101](index=101&type=chunk) - The interim report will be dispatched or made available electronically to shareholders in due course[101](index=101&type=chunk) Definitions [Definitions](index=38&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and phrases used in the announcement to ensure readers' accurate understanding of the report's content - Provides definitions for key terms including the Company's share incentive schemes, AI, APP, annual paying users, Audit Committee, China, the Company, Corporate Governance Code, daily active users, Directors, eLong, the Group, HKD, Hong Kong, IFRS, Listing Rules, Standard Code, monthly paying users, online travel platform, RMB, Shares, USD, Shareholders, Stock Exchange, travel service providers, Wanda Hotels Development, and Wanda Hotel Management[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[108](index=108&type=chunk) Acknowledgements [Acknowledgements](index=40&type=section&id=%E8%87%B4%E8%AC%9D) The Board of Directors extends its sincere gratitude to the company's shareholders, management team, employees, business partners, and customers, and lists the members of the Board - The Board of Directors thanks shareholders, the management team, employees, business partners, and customers for their support and contributions[105](index=105&type=chunk) - Lists the names of executive directors, non-executive directors, and independent non-executive directors[107](index=107&type=chunk)[108](index=108&type=chunk)