Financial Performance - Tongcheng-Elong reported a total revenue of RMB 1.2 billion for the last fiscal year, representing a year-over-year increase of 15%[6] - The company achieved a net profit of RMB 300 million, which is a 20% increase compared to the previous year[6] - The company has set a performance guidance of RMB 1.5 billion in revenue for the upcoming fiscal year, indicating a growth target of 25%[6] - Revenue decreased by 19.8% year-to-year to RMB 5,932.6 million from RMB 7,392.9 million in 2019[13] - Adjusted EBITDA dropped by 32.3% year-to-year from RMB 2,018.5 million in 2019 to RMB 1,366.5 million in 2020, with an adjusted EBITDA margin decrease from 27.3% to 23.0%[13] - Adjusted profit for the year fell by 38.2% from RMB 1,544.3 million in 2019 to RMB 954.0 million in 2020, with adjusted net margin decreasing from 20.9% to 16.1%[13] - The total revenue for 2020 decreased by 19.8% from RMB 7,392.9 million in 2019 to RMB 5,932.6 million[30] - The adjusted profit for the year decreased by 38.2% from RMB 1,544.3 million in 2019 to RMB 954.0 million in 2020[30] - The adjusted net margin dropped from 20.9% in 2019 to 16.1% in 2020[30] User Engagement - User engagement metrics showed a 25% increase in active users, reaching 50 million by the end of the fiscal year[6] - Average Monthly Active Users (MAUs) decreased by 6.7% year-to-year from 205.2 million in 2019 to 191.4 million in 2020[13] - Average Monthly Paying Users (MPUs) decreased by 14.5% year-to-year from 26.9 million in 2019 to 23.0 million in 2020[13] - Annual Paying Users (APUs) increased by 1.8% year-to-year from 152.4 million in 2019 to 155.2 million in 2020[13] - In Q4 2020, the average monthly active users (MAUs) decreased by 4.8% year-over-year from 205.9 million to 196.0 million, while average monthly paying users (MPUs) increased by 5.9% from 27.1 million to 28.7 million[27] - The company's paying ratio improved from 13.2% to 14.6% in Q4 2020[27] Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% growth in international revenue over the next two years[6] - The company is exploring strategic acquisitions to enhance its service offerings and market share, with a budget of RMB 500 million allocated for potential deals[6] - The company aims to transform from an Online Travel Agency (OTA) to an Intelligent Travel Assistant (ITA) by enhancing operations and profitability through advanced technology[41] - The company plans to continue seeking merger and acquisition opportunities to boost future growth[47] - The company aims to explore local travel opportunities with local governments and travel bureaus to provide comprehensive local travel recommendations and solutions[48] Technology and Innovation - Tongcheng-Elong is investing RMB 200 million in new technology development, focusing on AI-driven travel solutions[6] - The company has developed comprehensive Software-as-a-Service (SaaS) solutions to assist individual and small chain hotels in managing daily operations, inventory, revenue, and marketing[41] - The company launched value-added services such as COVID-19 insurance during the pandemic to alleviate travel concerns for users[39] - The company aims to leverage advanced technology to improve supplier and partner value positioning[49] Customer Satisfaction - Customer satisfaction ratings improved to 90%, reflecting a 10% increase from the previous year due to enhanced service quality[6] Financial Health and Cash Flow - Tongcheng-Elong's cash flow from operations increased by 35%, reaching RMB 400 million, providing a strong foundation for future investments[6] - The company experienced unfavorable working capital trends and stress on net cash flow due to decreased demands in the travel business amid the COVID-19 outbreak[92] - For the year ended December 31, 2020, net cash generated from operating activities was RMB 135.5 million, a significant decrease from RMB 1,696.4 million in 2019[94] - Cash and cash equivalents as of December 31, 2020, were RMB 1,804.5 million, compared to RMB 2,271.3 million in 2019, reflecting a decrease of 20.5%[92] Corporate Governance and Management - The company has a diverse board with members having extensive experience in technology and finance sectors[120][122][124] - The independent directors have extensive backgrounds in finance, law, and academia, enhancing the company's governance[127][129] - The company emphasizes the importance of independent directors in guiding its strategic direction and oversight[128] - The Group's senior management includes experienced professionals with backgrounds in finance, marketing, and technology[136][137][138] Risk Management - The Group's risk management includes strategies to mitigate the impact of major customer dependency and competition within the industry[171] - The Group's operational risks include user privacy breaches and payment fraud, which could affect overall performance[178] Future Outlook - The company is optimistic about the recovery of the travel industry in China in 2021, supported by effective pandemic control and the emergence of vaccines[43] - The Group aims to expand its market size through strategic alliances, acquisitions, and investments[172] - The Group will continue to seek strategic alliances, acquisitions, and investments to enhance competitiveness[178]

Impact of COVID-19 - The company's operations and performance were significantly disrupted by the COVID-19 outbreak since January 2020, leading to a decline in key metrics for the three and six months ended June 30, 2020, compared to the same periods in 2019[9]. - There was a notable recovery trend in the second quarter of 2020 for some key metrics, attributed to the restoration of economic activities and living orders in mainland China as the outbreak was contained[9]. - The decrease in travel demand was primarily due to reduced travel willingness and the implementation of travel restrictions and lockdown policies by governments worldwide[10]. - The travel industry in China showed clear signs of recovery as restrictions were relaxed in April 2020[23]. - The pandemic circumstances delayed users' decision-making, contributing to the decline in average MPUs[24]. - The company streamlined operations to capture recovery opportunities during the pandemic[23]. - The overall market confidence and demand improved significantly in the second quarter of 2020[24]. Financial Performance - Revenue decreased by 24.6% year-to-year to RMB1,200.1 million from RMB1,590.9 million in the same period of 2019, with a quarter-to-quarter increase of 19.4% in Q2 2020[11]. - Adjusted EBITDA dropped from RMB440.5 million in Q2 2019 to RMB267.3 million in Q2 2020, with a year-to-year decrease of 39.3%[11]. - Adjusted net profit for the period decreased by 43.2% year-to-year to RMB196.2 million from RMB345.6 million in the same period of 2019[11]. - For the six months ended June 30, 2020, revenue decreased by 34.6% year-to-year to RMB2,205.2 million from RMB3,374.3 million in the same period of 2019[13]. - Adjusted EBITDA for the six months ended June 30, 2020, decreased by 59.6% year-to-year to RMB426.3 million from RMB1,056.1 million in the same period of 2019[13]. - Adjusted net profit for the six months ended June 30, 2020, decreased by 65.5% year-to-year to RMB274.2 million from RMB794.0 million in the same period of 2019[13]. - Total revenue for the second quarter of 2020 was RMB1,200.1 million, a decline of 24.6% year-on-year from RMB1,590.9 million in Q2 2019, but an increase of 19.4% quarter-on-quarter from RMB1,005.1 million in Q1 2020[26]. - Adjusted net profit for the second quarter of 2020 was RMB196.2 million, with an adjusted net profit margin of 16.3%[26]. User Metrics - Average MAUs decreased by 3.3% year-to-year from 181.6 million in the same period of 2019 to 175.6 million, but increased by 18.3% quarter-to-quarter[12]. - Average MPUs decreased by 32.9% year-to-year from 27.7 million in the same period of 2019 to 18.6 million, with a quarter-to-quarter increase of 25.7%[12]. - The average MAUs for the same period declined by 15.0% year-to-year to 162.0 million, down from 190.5 million in 2019[21]. - The average MPUs also saw a significant decline of 34.3% year-to-year, reaching 16.7 million, compared to 25.4 million in 2019[21]. - In the second quarter of 2020, the average MAUs improved by 18.3% quarter-to-quarter to 175.6 million, despite a year-to-year decline of 3.3%[24]. - The average MPUs for the second quarter increased by 25.7% quarter-to-quarter, indicating a recovery trend[24]. Market Strategy and Initiatives - The company achieved better financial results than the industry in the second quarter and the first half of 2020, despite the pandemic's impact[23]. - The company launched a "Search + Travel" ecosystem in collaboration with Weixin to enhance user engagement[27]. - The company implemented various initiatives to support users and suppliers during the pandemic, including a self-service online cancellation function and the "Safe Room" initiative for hotel guests[26]. - The company expanded its traffic channels through live streaming promotions in collaboration with local governments and tourist attractions[28]. - The company focused on offline user acquisition by collaborating with hotels, bus operators, and tourist attractions, yielding initial positive results[28]. - The company aims to capture recovery opportunities and outperform the industry by leveraging its core competitive advantages, including stable traffic channels and advanced technology innovations[33]. - The ongoing development and investment in infrastructure in China are expected to provide immense growth potential for the travel industry[33]. - The company plans to further penetrate the travel market in lower-tier cities by leveraging diversified and cost-effective traffic sources[33]. - The transformation from an OTA to an ITA will be pursued by enhancing products and services with technology innovations[33]. - The company will strengthen long-term relationships with suppliers to build a more efficient travel ecosystem[33]. - The company is actively looking for merger and acquisition opportunities to boost future growth[32]. - The market uncertainties are expected to remain for the rest of the year, prompting the company to adjust strategies swiftly according to market dynamics[33]. Expenses and Cost Management - Cost of revenue decreased by 40.8% from RMB561.2 million for the three months ended June 30, 2019, to RMB332.5 million for the same period in 2020[45]. - Order processing cost fell from RMB243.6 million to RMB134.1 million, a decrease of 44.9% due to reduced GMV[45]. - Cost of pre-purchased inventory-risk-taking products decreased from RMB101.8 million to RMB49.7 million, a decline of 51.2%[45]. - Service development expenses decreased by 14.7% from RMB352.2 million to RMB300.4 million, primarily due to a reduced number of IT employees[45]. - Selling and marketing expenses decreased by 9.3% from RMB407.2 million to RMB369.5 million, attributed to a decrease in sales headcount and agency commission expenses[45]. - Administrative expenses increased from RMB99.5 million to RMB106.3 million, mainly due to increased employee severance and one-time termination benefits[46]. Cash Flow and Investments - For the six months ended June 30, 2020, the company reported a net cash used in operating activities of RMB1,113.6 million, compared to a net cash generated of RMB618.0 million in the same period of 2019[64]. - The company generated net cash from investing activities of RMB1,216.5 million for the six months ended June 30, 2020, primarily from wealth management products, while in 2019, it used RMB1,389.7 million in investing activities[64]. - As of June 30, 2020, the company had cash and cash equivalents of RMB2,393.1 million, a slight increase from RMB2,376.8 million in 2019[61]. - The total capital expenditure for the six months ended June 30, 2020, was RMB64.5 million, significantly lower than RMB368.4 million in the same period of 2019[69]. - The company reported a total of RMB4,298,011 in level 3 investments as of June 30, 2020, compared to RMB4,622,921 in the previous period[192]. Shareholder Information and Corporate Governance - The company has adopted several share incentive plans, including the 2016 Share Incentive Plan and the 2019 RSU Plan, to motivate and retain employees[77]. - The company has complied with the Corporate Governance Code during the six months ended June 30, 2020[139]. - The Audit Committee has reviewed the interim financial results for the six months ended June 30, 2020, and found them compliant with relevant accounting standards[144]. - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2020[145]. - The company has maintained compliance with the standard code of conduct as of June 30, 2020[141]. Future Outlook - The company plans to fund long-term investments using cash flows generated from operations and net proceeds from the global offering[73]. - The completion timeline for utilizing the net proceeds will depend on the Company's future business development[152]. - There have been no material events after the end of the reporting period that require disclosure[153]. - The company reported net proceeds from the global offering of approximately RMB 1,319.3 million after deducting professional fees and other related expenses[145].

Financial Performance - The company reported a consolidated income statement with significant financial metrics for 2019, including total revenue and net profit figures[2]. - Revenue increased by 40.7% year-to-year to RMB 7,392.9 million from RMB 5,255.6 million in 2018[8]. - Adjusted EBITDA increased by 75.2% year-to-year to RMB 2,018.5 million from RMB 1,152.1 million in 2018, with an adjusted EBITDA margin rising from 21.9% to 27.3%[8]. - Adjusted profit for the year increased by 68.6% year-to-year to RMB 1,544.3 million from RMB 915.9 million in 2018, with an adjusted net margin increasing from 17.4% to 20.9%[8]. - Total comprehensive income for the year was RMB 716.6 million, compared to RMB 519.6 million in 2018[18]. - The company reported a profit for the year of RMB 686.5 million, up from RMB 534.5 million in 2018[1]. - The company reported a significant one-off charge in 2018 related to reorganization expenses, impacting administrative expenses in subsequent years[46]. User Growth and Engagement - The five-year performance review highlighted a steady growth trend in user data, with an increase in active users by 15% year-over-year[3]. - Average monthly active users (MAUs) increased by 17.1% year-to-year from 175.2 million in 2018 to 205.2 million in 2019[8]. - Average monthly paying users (MPUs) increased by 34.5% year-to-year from 20.0 million in 2018 to 26.9 million in 2019[8]. - User retention rates improved to 85%, up from 80% in the previous year[86]. - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[96]. Revenue Growth and Projections - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by market expansion and new product launches[3]. - New product launches are expected to contribute an additional $30 million in revenue in the upcoming year[3]. - Revenue for the last quarter reached $150 million, representing a 15% increase compared to the previous quarter[86]. - The company has set a future outlook with a revenue guidance of $200 million for the next quarter, indicating a projected growth of 33%[98]. Market Expansion and Strategy - Market expansion strategies include entering three new international markets by the end of 2021, aiming for a 10% market share in each[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by the end of 2024[86]. - The company aims to leverage its traffic and resources to further penetrate the Chinese travel market, particularly in lower-tier cities[28]. - The company plans to enhance its products and services to better serve users and strengthen relationships with suppliers[28]. Cost Management and Efficiency - The company plans to implement cost-cutting measures to improve operating margins by 5% over the next two years[3]. - The company aims to reduce operational costs by 5% through efficiency improvements in the next fiscal year[86]. - Total administrative expenses decreased from RMB 934.9 million in 2018 to RMB 625.2 million in 2019[1]. Technology and Innovation - The company is investing in new technology development, with a budget allocation of approximately $50 million for R&D in 2020[3]. - The company has allocated $10 million for research and development of new technologies aimed at enhancing user experience[86]. - New product development initiatives are underway, focusing on enhancing user experience and integrating advanced technologies[97]. Strategic Acquisitions and Partnerships - The company has completed a strategic acquisition of a smaller competitor, enhancing its service offerings and user base by 25%[3]. - A strategic partnership with a leading travel agency is anticipated to increase customer acquisition by 30%[86]. - The company is exploring potential acquisitions to bolster its service offerings and market reach[86]. Governance and Management - The company has a diverse board with members holding significant experience in finance, law, and education, enhancing governance and strategic oversight[90][91][92][93]. - The independent directors bring a wealth of experience from various industries, which may aid in strategic decision-making and market expansion[90][91][92][93]. - The company is focused on enhancing its governance structure through the appointment of experienced independent directors[90][91][92][93]. COVID-19 Impact and Response - The outbreak of COVID-19 at the end of January 2020 has significantly impacted the travel industry, presenting short-term challenges[23]. - The company aims to operate on a cost-saving mode while seeking opportunities amid uncertainties caused by COVID-19[23]. - The company does not anticipate any material adverse effects on its financial performance for the fiscal year 2019 due to the COVID-19 outbreak[119]. - The company launched a dynamic set of initiatives to fulfill responsibilities towards the community and protect users and employees during the COVID-19 outbreak[119]. Financial Position and Assets - Non-current assets totaled RMB 9,791.9 million, while current assets amounted to RMB 9,691.3 million, leading to total assets of RMB 19,483.3 million[19]. - Total equity attributable to equity holders of the company was RMB 13,156.4 million, with total liabilities of RMB 6,331.6 million[19]. - Cash and cash equivalents decreased to RMB 2,271.3 million in 2019 from RMB 3,143.9 million in 2018, a decline of 27.7%[63]. Compliance and Regulatory Matters - Compliance with relevant laws and regulations is a priority, ensuring adherence to corporate governance and operational standards[105]. - The Group confirmed compliance with the disclosure requirements for related party transactions under the Listing Rules[142]. - The Group's contractual arrangements have been reviewed and confirmed to comply with relevant provisions, ensuring fairness and benefit to shareholders[173].

Financial Performance - Revenue for the six months ended June 30, 2019, increased by 69.0% year-over-year to RMB3,374.3 million from RMB1,996.8 million in the same period of 2018[14]. - Adjusted EBITDA for the same period increased by 138.6% year-over-year to RMB1,056.1 million from RMB442.6 million in the same period of 2018, with an adjusted EBITDA margin rising from 22.2% to 31.3%[14]. - Adjusted profit for the period increased by 96.6% year-over-year to RMB794.0 million from RMB403.8 million in the same period of 2018, with an adjusted net margin increasing from 20.2% to 23.5%[14]. - For the three months ended June 30, 2019, revenue increased by 21.0% year-over-year to RMB1,590.9 million from RMB1,314.5 million in the same period of 2018[13]. - Adjusted profit for the three months increased by 60.0% year-over-year to RMB345.6 million from RMB216.0 million[19]. - Profit for the period showed a significant decline of 54.5% to RMB295.6 million from RMB649.4 million[28]. - Operating profit for the period was RMB 218.2 million, significantly up from RMB 63.6 million in the same period last year[45]. - Profit attributable to equity holders of the Company was RMB 199.3 million, a turnaround from a loss of RMB 32.7 million in the previous year[45]. User Metrics - Average monthly active users (MAUs) increased by 15.4% year-over-year from 157.4 million to 181.6 million[13]. - Average monthly paying users (MPUs) increased by 53.9% year-over-year from 18.0 million to 27.7 million[13]. - Average monthly active users (mAUs) grew by 18.8% year-over-year to 190.5 million from 160.4 million[17]. - Average monthly paying users (mPUs) increased by 45.1% year-over-year to 25.4 million from 17.5 million[17]. - The average monthly paying users (mpUs) increased by 53.9% for the three months ended June 30, 2019, achieving a higher paying ratio of 15.3%[36]. Market Expansion and Strategy - The company continues to focus on expanding its user base and enhancing user engagement through new product offerings and technology advancements[11]. - Future outlook includes further market expansion and potential strategic acquisitions to strengthen its competitive position[11]. - The company aims to deepen penetration in lower-tier cities and enhance user engagement through a loyalty program and innovative travel products[38]. - The ongoing developments in China and further investment in infrastructure are expected to support industry growth, presenting positive growth opportunities[38]. Revenue Breakdown - Revenue from accommodation reservation services rose by 25.5% from RMB 441.0 million in Q2 2018 to RMB 553.4 million in Q2 2019, driven by increased room nights and revenue per room night[47]. - Revenue from transportation ticketing services increased by 13.0% from RMB 829.5 million in Q2 2018 to RMB 937.1 million in Q2 2019, primarily due to an increase in the number of flight segments and train tickets sold[49]. - Other revenue surged by 128.2% from RMB 44.0 million in Q2 2018 to RMB 100.4 million in Q2 2019, mainly due to increased advertising services revenue and contributions from tCCt[49]. Cost and Expenses - Cost of revenue increased by 51.4% from RMB 370.5 million for the three months ended June 30, 2018, to RMB 561.2 million for the same period in 2019[55]. - Selling and marketing expenses decreased by 12.3% from RMB 464.1 million to RMB 407.2 million, mainly due to reduced agency commission and advertising spending[57]. - Service development expenses grew by 10.9% from RMB 317.5 million to RMB 352.2 million, driven by increased employee benefits and depreciation related to intangible assets from the acquisition of tCCt[56]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2019, was RMB 618.0 million, down from RMB 1,066.2 million in the same period of 2018[81]. - The company incurred net cash flows used in investing activities of RMB 1,389.7 million for the six months ended June 30, 2019, compared to cash generated of RMB 374.4 million in the same period of 2018[80]. - Long-term investments as of June 30, 2019, amounted to RMB 314.1 million, an increase from RMB 101.2 million as of December 31, 2018[88]. Shareholder Information - Mr. Wu Zhixiang holds a beneficial interest in 56,711,000 shares, representing 2.72% of the total issued share capital[94]. - Tencent Holdings Limited has an interest in controlled corporations with 476,215,740 ordinary shares, accounting for approximately 22.85% of the total issued share capital[103]. - Ctrip.com International, Ltd. owns 560,234,960 ordinary shares, which is approximately 26.88% of the total issued share capital[105]. Corporate Governance - The Audit Committee reviewed the unaudited condensed consolidated interim financial results for the six months ended June 30, 2019, confirming compliance with relevant accounting standards[149]. - The Company has complied with the mandatory code provisions in the Corporate Governance Code during the six months ended June 30, 2019[143]. - No incidents of non-compliance with the model Code for securities transactions were noted by the Company during the six months ended June 30, 2019[142].

Financial Performance - The company reported a total revenue of approximately 1.2 billion RMB for the year 2018, representing a year-on-year increase of 15%[2]. - Revenue increased by 16.5% year-to-year to RMB6,090.8 million from RMB5,226.1 million in 2017[8]. - Adjusted profit for the year increased by 66.8% year-to-year to RMB1,140.7 million from RMB684.0 million in 2017, with an adjusted net margin increasing from 13.1% to 18.7%[8]. - The standalone revenue for 2018 was RMB5,255.6 million, a significant increase of 108.7% compared to RMB2,518.6 million in 2017[15]. - Profit before income tax increased by 348.8% to RMB601.5 million in 2018 from RMB134.0 million in 2017[15]. - Total comprehensive income for the year was RMB519.6 million, compared to RMB147.8 million in 2017[19]. - Adjusted profit for the year on a standalone basis was RMB915.9 million, reflecting a year-to-year increase of 375.4% from RMB192.7 million in 2017[15]. - Profit for the year increased to RMB 534.5 million in 2018 from RMB 194.4 million in 2017, representing a significant growth[88]. - Adjusted profit for the year reached RMB 915.9 million in 2018, compared to RMB 192.7 million in 2017, indicating a substantial increase[88]. User Metrics - The number of active users reached 50 million, showing a growth of 20% compared to the previous year[2]. - Average monthly active users (MAUs) increased by 44.6% year-to-year from 121.2 million in 2017 to 175.2 million in 2018[8]. - Average monthly paying users (MPUs) increased by 28.2% year-to-year from 15.6 million in 2017 to 20.0 million in 2018[8]. - The average monthly active users (MAUs) reached 74.2 million in 2018, accounting for 52.8% of the total average MAUs of Tencent-based platforms[25]. - The average monthly active users (MAUs) generated through interactive advertisements on Tencent-based platforms was 49.1 million in 2018, accounting for 34.9% of the total[25]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition in the region over the next year[2]. - A strategic partnership with a leading travel agency is anticipated to enhance service offerings and increase customer retention by 15%[2]. - The company is exploring potential acquisitions to bolster its technology capabilities and expand its service portfolio[2]. - The company plans to pursue strategically selected acquisitions, investments, joint ventures, and partnerships to enhance its business operations[28]. - The company aims to leverage strong data analytics and technology capabilities to enhance big data and AI innovations[28]. Revenue Breakdown - Transportation ticketing services revenue surged to RMB3,232.5 million, accounting for 61.5% of total revenue in 2018[35]. - Revenue from accommodation reservation services decreased by 22.5% from RMB2,361.6 million in 2017 to RMB1,830.4 million in 2018[46]. - Revenue from accommodation booking services decreased by 22.5% from RMB2,361.6 million in 2017 to RMB1,830.4 million in 2018, primarily due to a strategic reduction in lower-margin sales channels[47]. - Revenue from transportation ticketing services increased significantly from RMB61.3 million in 2017 to RMB3,232.5 million in 2018, mainly due to the consolidation of Tongcheng Online Business's financial results since March 2018[48]. - Other revenue rose by 101.4% from RMB95.7 million in 2017 to RMB192.7 million in 2018, attributed to the consolidation of Tongcheng Online Business's financial results[49]. Cost and Expenses - Total cost of revenue increased by 97.2% from RMB811.8 million in 2017 to RMB1,600.5 million in 2018, driven by the consolidation of Tongcheng Online Business and increased order processing costs[56]. - Employee benefit expenses rose from RMB89.0 million in 2017 to RMB296.3 million in 2018, primarily due to additional share options granted to employees[56]. - Selling and marketing expenses grew by 68.2% from RMB1,095.0 million in 2017 to RMB1,841.3 million in 2018, mainly due to the consolidation of Tongcheng Online Business and increased advertising spending[63]. - Administrative expenses increased significantly from RMB97.4 million in 2017 to RMB934.9 million in 2018, influenced by one-off reorganization expenses and additional share options granted[64]. Leadership and Management - Liang Jianzhang has served as Co-Chairman since March 2018 and has extensive experience in the travel industry, including being a co-founder of Ctrip[106]. - The company has a strong leadership team with directors who have held significant positions in other publicly listed companies, enhancing its strategic capabilities[109]. - The management team collectively holds advanced degrees from prestigious universities, enhancing their capability in driving the company's strategic initiatives[119]. - The company emphasizes strategic client management and business development, with a focus on expanding its market presence[119]. Financial Position and Investments - Non-current assets totaled RMB9,294.5 million, while current assets reached RMB7,496.9 million as of December 31, 2018[21]. - Total equity amounted to RMB11,527.8 million, a significant increase from a negative equity position in previous years[21]. - The company reported a gearing ratio of approximately 1.5% as of December 31, 2018, compared to -3.6% in 2017[93]. - The company intends to use the unutilized net proceeds in the same manner and proportions as stated in the Prospectus[131]. Compliance and Regulatory Matters - The company has complied with relevant laws and regulations impacting its operations, including the PRC Telecommunications Regulations and PRC Cyber Security Law[135]. - The group provides online information services and transaction services classified as foreign investment restricted under current PRC laws[179]. - The relevant businesses have been conducted through Contractual Arrangement Entities to comply with PRC laws and regulations[179]. Shareholding Structure - The Company has a significant shareholding structure with various stakeholders, including TCH Sapphire Limited and Tencent Holdings Limited, indicating strong institutional interest[168]. - Ctrip.com International, Ltd. holds 560,234,960 ordinary shares, representing approximately 26.98% of the total issued share capital[169]. - The report indicates a significant concentration of shareholding among a few entities, with Ctrip and its subsidiaries holding a substantial portion of the total issued share capital[169].