香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告的全部或任何部份內容所產生或因 依賴該等內容而引致的任何損失承擔任何責任。 Tongcheng Travel Holdings Limited 同 程 旅 行 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股票代號：0780） 截至二零二二年十二月三十一日止年度之業績公告 本公司董事會欣然公佈本集團截至二零二二年十二月三十一日止年度的經審核綜 合業績連同二零二一年同期的比較數字。 截至二零二二年十二月三十一日止三個月 • 收入由二零二一年第四季度的人民幣1,846.4百萬元同比減少18.8%至二零二 二年同期的人民幣1,500.1百萬元。 • 經調整EBITDA由二零二一年第四季度的人民幣416.5百萬元減少41.3%至二 零二二年同期的人民幣244.3百萬元。經調整EBITDA利潤率由二零二一年第 四季度的22.6%減少至二零二二年第四季度的16.3%。 • 經調整淨利潤由二零二一年第四季度的人民幣245.1百萬元減少84.7%至二零 二二年第四季度的人民幣3 ...

Revenue Performance - Revenue increased by 5.6% year-on-year to RMB 2,048.0 million for the three months ended September 30, 2022, compared to RMB 1,939.4 million in the same period last year[2]. - Revenue for the three months ended September 30, 2022, increased by 5.6% to RMB 2,047.95 million from RMB 1,939.43 million in the same period of 2021[11]. - Accommodation booking service revenue rose by 26.9% to RMB 818.71 million, accounting for 40.0% of total revenue, compared to RMB 644.94 million or 33.3% in the previous year[12]. - Transportation ticketing service revenue decreased by 12.3% to RMB 986.65 million, representing 48.2% of total revenue, down from RMB 1,124.72 million or 58.0% in the prior year[13]. - Other income increased from RMB 169.77 million to RMB 242.60 million, driven by growth in advertising, membership, and business travel services[14]. Profitability Metrics - Adjusted EBITDA decreased by 10.7% to RMB 462.2 million, with an adjusted EBITDA margin of 22.6%, down from 26.7% in the previous year[2]. - Adjusted net profit decreased by 26.6% to RMB 251.7 million, resulting in an adjusted net profit margin of 12.3%, down from 17.7% year-on-year[2]. - The adjusted net profit for the period was RMB 251.72 million, down from RMB 342.94 million in the previous year[10]. - The net loss for the period was RMB 93,940 thousand, a significant decline from a profit of RMB 226,316 thousand in the prior year[34]. User Engagement - Average monthly active users increased by 1.7% year-on-year to 281.5 million, reaching a historical high[4]. - Average monthly paying users rose by 9.5% year-on-year to 36.8 million, also a historical high, with a paying ratio of 13.1%[4]. - Approximately 80% of average monthly active users in Q3 2022 came from WeChat Mini Programs, highlighting the effectiveness of the traffic channel[6]. - Approximately 60.0% of new paying users on the WeChat platform in Q3 2022 came from third-tier cities and below, demonstrating the potential in these markets[7]. - Monthly paying users also saw an increase, totaling 3 million, indicating a 30% rise compared to the previous year[39]. Cost Management - Total cost of sales remained stable at RMB 502.87 million, with the cost as a percentage of revenue decreasing from 26.0% to 24.3%[17]. - Service development expenses increased to RMB 370.93 million, representing 16.6% of revenue, up from 15.7% in the previous year[18]. - Sales and marketing expenses rose by 19.1% to RMB 937.28 million, accounting for 45.1% of revenue, compared to 40.2% in the same period last year[19]. - Administrative expenses increased to RMB 182.79 million, with the ratio to revenue rising from 4.2% to 4.8%[20]. Strategic Initiatives - The company adjusted its marketing strategy to seize opportunities during market rebounds while focusing on internal cost control to optimize cost structure[5]. - The company plans to expand traffic channels and focus on underdeveloped travel markets, particularly lower-tier markets, to drive future growth[9]. - The company is exploring strategic partnerships with local governments to promote local products and support the local economy[8]. - The company aims to transform from an online travel platform to a smart travel assistant by optimizing its technology and integrating various transportation services[7]. - The company is investing 50 million RMB in technology development to enhance its online travel platform capabilities[39]. Financial Position - Total assets as of September 30, 2022, amounted to RMB 24,649,988 thousand, an increase from RMB 21,506,398 thousand at the end of 2021[36]. - The company reported a total equity of RMB 15,808,945 thousand as of September 30, 2022, compared to RMB 15,258,606 thousand at the end of 2021[36]. - Non-current liabilities increased to RMB 3,695,918 thousand from RMB 1,536,378 thousand at the end of 2021, primarily due to increased borrowings[36]. - Cash and cash equivalents at the end of the period were RMB 2,657,103 thousand, down from RMB 2,741,124 thousand at the end of the previous year[37]. Corporate Governance and Sustainability - The company's MSCI ESG rating improved from "A" to "AA" in September 2022, reflecting significant advancements in corporate governance and labor management[8]. - The company is committed to enhancing its corporate governance, environmental protection, and social responsibility to create long-term sustainable value for stakeholders[9]. - The company is adhering to international financial reporting standards to ensure transparency and accuracy in its financial disclosures[40].

Financial Performance - Tongcheng Travel Holdings Limited reported a significant increase in revenue, reaching approximately RMB 1.2 billion, representing a year-on-year growth of 30%[9]. - The company achieved a net profit of RMB 200 million, which is a 25% increase compared to the same period last year[9]. - The gross margin improved to 40%, up from 35% in the previous year, indicating better cost management[9]. - The company has set a performance guidance of RMB 1.5 billion in revenue for the next half of the year, reflecting continued growth momentum[9]. - Revenue for the three months ended June 30, 2022, decreased by 38.3% year-to-year to RMB1,318.7 million from RMB2,138.0 million in the same period of 2021[10]. - Adjusted EBITDA for the same period decreased by 46.8% from RMB549.7 million in Q2 2021 to RMB292.2 million in Q2 2022, with an adjusted EBITDA margin of 22.2%[10]. - Adjusted net profit decreased by 73.2% from RMB417.9 million in Q2 2021 to RMB112.0 million in Q2 2022, resulting in an adjusted net margin of 8.5%[10]. - For the six months ended June 30, 2022, revenue decreased by 19.1% year-to-year to RMB3,036.6 million from RMB3,751.7 million in the same period of 2021[15]. - Adjusted EBITDA for the six months ended June 30, 2022, decreased by 24.9% year-to-year from RMB972.7 million to RMB730.7 million, with an adjusted EBITDA margin of 24.1%[15]. - Adjusted net profit for the six months ended June 30, 2022, decreased by 50.4% from RMB719.8 million to RMB357.0 million, resulting in an adjusted net margin of 11.8%[15]. User Engagement - User data showed that the total number of active users reached 50 million, marking a 15% increase year-on-year[9]. - Average monthly active users (MAUs) decreased by 28.9% year-to-year from 277.9 million in Q2 2021 to 197.6 million in Q2 2022[10]. - Average monthly paying users (MPUs) decreased by 21.9% year-to-year from 33.4 million in Q2 2021 to 26.1 million in Q2 2022[10]. - Average MAUs for the six months ended June 30, 2022, decreased by 13.6% year-to-year from 256.1 million to 221.2 million[15]. - Average MPUs for the six months ended June 30, 2022, decreased by 4.9% year-to-year from 30.4 million to 28.9 million[15]. - Approximately 80% of the average MAUs in the second quarter of 2022 were contributed from the Weixin mini program[21]. - Approximately 80% of average monthly active users in Q2 2022 came from WeChat Mini Programs[23]. Market Expansion and Strategy - The company plans to expand its market presence by entering three new cities in the next quarter, aiming for a 20% increase in market share[9]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the travel industry[9]. - New product offerings, including customized travel packages, are expected to launch in Q3 2023, targeting a 10% increase in customer engagement[9]. - The company aims to leverage diversified traffic sources and enhance products and services to transition from an OTA to an ITA[26]. - The company plans to penetrate untapped travel markets, particularly in lower-tier cities, through innovative capabilities[26]. - The company continued to explore offline user acquisition initiatives, particularly in lower-tier cities, to expand its user base[22]. Cost Management and Expenses - Total cost of revenue decreased by 24.2% from RMB505.4 million for the three months ended June 30, 2021, to RMB383.2 million for the same period in 2022, driven by a decline in order processing costs and costs of pre-purchased travel-related products[44]. - Order processing costs fell from RMB249.3 million (49.3% of total cost of revenue) in Q2 2021 to RMB147.8 million (38.6% of total cost of revenue) in Q2 2022[43]. - Employee benefit expenses increased from RMB60.2 million (11.9% of total cost of revenue) in Q2 2021 to RMB73.5 million (19.2% of total cost of revenue) in Q2 2022, reflecting an increase in the number of employees[43]. - Selling and marketing expenses decreased by 35.0% from RMB884.6 million in Q2 2021 to RMB574.7 million in Q2 2022, mainly due to reduced advertising and promotion expenses[46]. - Administrative expenses increased from RMB126.2 million in Q2 2021 to RMB134.9 million in Q2 2022, primarily due to higher employee benefit expenses[47]. Investments and Acquisitions - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the travel industry[9]. - The company acquired the remaining 53.5% equity interest in Beijing MIOT Technology Co., Ltd. on February 18, 2022, enhancing its technological and service capabilities[94]. - The company plans to continue exploring potential acquisitions, investments, joint ventures, and partnerships aligned with its overall business strategies[95]. Corporate Governance and Leadership - The company has complied with the Corporate Governance Code provisions during the six months ended June 30, 2022[192]. - Changes in the board included the resignation of four directors and the appointment of Mr. Yang Chia Hung as an independent non-executive director effective June 6, 2022[194]. - The company has a strong leadership team with extensive experience in the travel and technology sectors[196][197][198]. - The leadership team includes professionals with advanced degrees from prestigious universities, indicating a strong educational background[199]. Employee Incentives and Share Options - The company has adopted various share incentive plans, including the 2016 and 2018 Share Incentive Plans, to motivate and retain employees[95]. - The 2016 Share Incentive Plan aims to enhance the value of the Company by linking the personal interests of directors and employees to shareholder returns[113]. - The 2018 Share Incentive Plan allows for a maximum of 163,240,270 Shares to be awarded, representing approximately 7.35% of the issued shares as of June 30, 2022[120]. - The 2022 Share Option Plan was adopted on May 31, 2022, to provide better rewards to Eligible Participants who contribute to the Group's development[161]. - The maximum number of Shares that may be granted under the 2022 Share Option Plan is 55,459,938, representing 2.5% of the outstanding Shares as of May 31, 2022[167].

Revenue and Profitability - Revenue increased by 6.5% year-on-year to RMB 1,718.0 million for the three months ended March 31, 2022, compared to RMB 1,613.8 million in the same period last year[1] - Adjusted EBITDA rose by 4.4% year-on-year to RMB 438.4 million, with an adjusted EBITDA margin of 25.5%, down from 26.0% in the previous year[2] - Adjusted net profit decreased by 18.0% year-on-year to RMB 245.0 million, resulting in an adjusted net profit margin of 14.3%, down from 18.5% in the prior year[2] - Net profit attributable to equity holders decreased from RMB 169.5 million to RMB 101.1 million for the three months ended March 31, 2022[26] - Net profit for the three months ended March 31, 2022, was RMB 97,237 thousand, a decrease of 42.5% from RMB 169,128 thousand in the same period of 2021[36] - The total comprehensive income for the three months ended March 31, 2022, was RMB 89,637 thousand, compared to RMB 182,713 thousand in the same period of 2021, a decrease of 51.0%[36] User Metrics - Average monthly active users grew by 4.5% year-on-year to 244.8 million, up from 234.2 million in the same period last year[3] - Average monthly paying users increased by 16.1% year-on-year to 31.7 million, compared to 27.3 million in the previous year[3] - Annual paying users reached a record high of 205.6 million, reflecting a year-on-year growth of 21.4% from 169.3 million[3] - Registered users in non-first-tier cities in China accounted for approximately 87.0% of total registered users as of March 31, 2022[7] - About 59.8% of new paying users on the WeChat platform came from third-tier cities or below during the three months ended March 31, 2022[7] Revenue Breakdown - Accommodation booking services generated RMB 543,082 thousand, accounting for 31.6% of total revenue, while transportation ticketing services contributed RMB 1,017,219 thousand, making up 59.2% of total revenue[12] - Accommodation booking service revenue increased by 18.4% from RMB 458.5 million to RMB 543.1 million for the three months ended March 31, 2022[13] - Transportation ticketing service revenue remained stable at RMB 1,017.2 million compared to RMB 1,023.4 million in the same period last year[14] - Other income rose by 19.6% from RMB 131.8 million to RMB 157.7 million, driven by increased value-added user services and advertising revenue[15] Expenses and Costs - Total sales cost increased by 15.3% from RMB 409.1 million to RMB 471.6 million, with the cost of purchased travel-related products rising due to inventory risk[18] - Service development expenses increased by 14.6% from RMB 307.0 million to RMB 351.8 million, attributed to a rise in IT staff and related employee benefits[19] - Sales and marketing expenses rose to RMB 637.0 million from RMB 618.1 million, with the ratio of these expenses to revenue decreasing from 37.9% to 36.5%[20] - Administrative expenses surged by 73.7% from RMB 108.3 million to RMB 188.2 million, primarily due to increased share-based compensation and professional fees[21] Cash Flow and Assets - The company reported a net cash outflow from operating activities of RMB (406,539) thousand for the three months ended March 31, 2022, compared to a net inflow of RMB 644,695 thousand in the same period last year[39] - Financing activities generated a net cash inflow of RMB 1,875,049 thousand, a substantial increase from RMB 58,598 thousand year-over-year[39] - Total assets increased to RMB 22,889,346 thousand as of March 31, 2022, compared to RMB 21,506,398 thousand as of December 31, 2021, reflecting a growth of approximately 6.4%[37] - Cash and cash equivalents rose significantly to RMB 3,126,054 thousand from RMB 2,045,604 thousand, marking an increase of approximately 52.7%[39] - Total liabilities increased to RMB 7,444,490 thousand from RMB 6,247,792 thousand, representing a rise of approximately 19.2%[38] Strategic Initiatives - The company aims to transform from an online travel platform to a smart travel assistant, leveraging advanced technology to improve operational efficiency[8] - The company has established strategic partnerships with more airports to enhance operational efficiency and support digital transformation[8] - The company is enhancing its brand strategy by increasing marketing investments in both online and offline channels, particularly targeting lower-tier cities[7] - The company has strengthened long-term relationships with travel service providers, offering a one-stop product and service platform with over 10,000 domestic flight routes and more than 2 million hotel options[7] - The company plans to explore new traffic sources and expand its user base while enhancing its product and service offerings[10] Corporate Governance and Compliance - The company is committed to corporate governance, environmental protection, and social responsibility to create sustainable value for stakeholders[10] - The company has maintained compliance with corporate governance codes as of March 31, 2022, ensuring transparency and accountability in its operations[40] - The company did not engage in any purchase, redemption, or sale of its listed securities during the reporting period[40]

Financial Performance - Revenue increased by 27.1% year-to-year to RMB7,537.6 million from RMB5,932.6 million in 2020[7] - Adjusted EBITDA increased by 38.7% year-to-year from RMB1,366.5 million in 2020 to RMB1,895.5 million in 2021[7] - Adjusted EBITDA margin increased from 23.0% in 2020 to 25.1% in 2021[7] - Adjusted net profit increased by 35.9% from RMB954.0 million in 2020 to RMB1,296.4 million in 2021, with an adjusted net margin rising from 16.1% to 17.2%[9] - Profit before income tax surged by 120.1% from RMB397.6 million in 2020 to RMB874.9 million in 2021[12] - Operating profit for the year ended December 31, 2021, was RMB 895.3 million, compared to RMB 381.9 million for the previous year[36] - Profit for the year was RMB 713.5 million, a significant increase from RMB 325.5 million in 2020, representing a growth of 119%[64] - Adjusted net profit for the year reached RMB 1,296.4 million, up 36% from RMB 954.0 million in 2020[64] User Growth - Average monthly active users (MAUs) increased by 34.2% year-on-year from 191.4 million in 2020 to 256.9 million in 2021[15] - Average monthly paying users (MPUs) rose by 36.1% year-on-year from 23.0 million in 2020 to 31.3 million in 2021[15] - Annual paying users (APUs) increased by 28.2% year-on-year from 155.2 million in 2020 to 198.9 million in 2021[15] - The company maintained a paying ratio increase from 12.0% in 2020 to 12.2% in 2021[24] - In 2021, approximately 80.7% of the average monthly active users (MAUs) were contributed from the Weixin mini-program[25] Revenue Breakdown - Revenue for the year ended December 31, 2021, was RMB 7,537.6 million, representing a 27.1% increase from RMB 5,932.6 million for the year ended December 31, 2020[40] - Accommodation reservation services generated RMB 2,408.7 million, accounting for 32.0% of total revenue, while transportation ticketing services contributed RMB 4,457.7 million, or 59.1% of total revenue[40] - Revenue from accommodation reservation services increased by 23.8% from RMB1,945.2 million in 2020 to RMB2,408.7 million in 2021[42] - Revenue from transportation ticketing services increased by 28.4% from RMB3,471.1 million in 2020 to RMB4,457.7 million in 2021[42] - Revenue from other services increased by 30.0% from RMB516.3 million in 2020 to RMB671.1 million in 2021[42] Cost and Expenses - Cost of revenue increased by 11.4% from RMB1,696.6 million in 2020 to RMB1,889.7 million in 2021[47] - Selling and marketing expenses surged by 42.5% from RMB2,131.3 million in 2020 to RMB3,036.5 million in 2021[49] - Employee benefit expenses increased from RMB209.4 million in 2020 to RMB265.5 million in 2021, representing 14.0% of total cost of revenue[46] - Excluding share-based compensation, selling and marketing expenses accounted for 39.8% of revenue in 2021, up from 35.2% in 2020[49] Strategic Initiatives - The company completed an organizational restructuring in September 2021 to enhance efficiency and capture opportunities in short-haul travel and local consumption[20] - The company established new business groups to enhance user offerings and improve operational efficiency[20] - The company launched a "Campus Card" program to strengthen interactions with students and attract the younger generation[27] - The company is optimistic about the recovery of the travel industry in China in 2022, supported by government guidelines and increasing vaccination rates[31] - The company plans to integrate economic growth, environmental protection, corporate governance, and social responsibility into its business strategies to create sustainable value[33] Investments and Acquisitions - The company acquired an 85.2% equity interest in Guangzhou Haoning Intelligent Equipment Co., Ltd. on March 22, 2021, and a 100% equity interest in Hunan Xindi Technology Development Co., Ltd. on November 30, 2021[87] - The company plans to fund long-term investments using cash flows generated from operations and net proceeds from the Global Offering[82] - 30% of net proceeds will be used for potential acquisitions, investments, joint ventures, and partnerships[117] Market Position and Competition - The Group is a market leader in China's online travel industry, offering a comprehensive range of travel-related products and services[110] - The online travel industry is highly competitive, with potential increased competition from new domestic and international players[142] - The Group plans to increase market sales by diversifying travel service provider sources and actively seeking mergers and acquisitions[142] Regulatory Environment - The regulatory environment for foreign investment in telecommunications is evolving, with potential future changes to contractual arrangements[198] - The Ministry of Industry and Information Technology (MIIT) has discretion in granting approvals for foreign investments in telecommunications[195] - The amended Foreign Investment Telecommunications Enterprises Regulations, effective May 1, 2022, removed Qualification Requirements for foreign investors in value-added telecommunications businesses[197] Shareholder Information - Tencent Holdings Limited has a significant interest in the company, holding 476,215,740 shares, which is approximately 21.47% of the total issued share capital[160] - As of December 31, 2021, Mr. Wu Zhixiang holds 16,774,600 shares, representing approximately 0.76% of the total issued share capital[151] - The shareholding percentages for Suzhou Chengyi and Beijing E-dragon are based on the subscribed registered capital of each shareholder, with Mr. Jiang Hao holding a 50.00% interest in Beijing E-dragon[155]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous period[2]. - Revenue for the three months ended June 30, 2021, increased by 78.1% year-to-year to RMB2,138.0 million from RMB1,200.1 million in the same period of 2020[7]. - For the six months ended June 30, 2021, revenue increased by 70.1% year-to-year to RMB3,751.7 million from RMB2,205.2 million in the same period of 2020[8]. - Total revenue for the six months ended June 30, 2021, rose by 70.1% to RMB3,751.7 million, primarily due to stronger market demand[19]. - Adjusted net profit for the three months ended June 30, 2021, increased by 103.0% year-to-year to RMB398.3 million from RMB196.2 million in the same period of 2020, with an adjusted net margin increasing from 16.3% to 18.6%[11]. - Adjusted net profit for the six months ended June 30, 2021, increased by 153.3% year-to-year to RMB694.6 million from RMB274.2 million in the same period of 2020, with an adjusted net margin increasing from 12.4% to 18.5%[15]. - Profit for the period for the three months ended June 30, 2021, was RMB 291,234, compared to RMB 55,128 in the same period of 2020, marking a 427.5% increase[173]. User Engagement - User data showed an increase in active users, reaching Z million, which is a W% increase year-over-year[2]. - Average Monthly Active Users (MAUs) increased by 58.3% year-to-year from 175.6 million to 277.9 million[13]. - Average Monthly Paying Users (MPUs) increased by 79.6% year-to-year from 18.6 million to 33.4 million[13]. - Average MAUs for the six months ended June 30, 2021, increased by 58.1% year-to-year from 162.0 million to 256.1 million[16]. - The paying user ratio increased to 12.0% for the second quarter of 2021, indicating improved conversion rates[18]. - Approximately 78.1% of average MAUs were contributed from Weixin mini-programs, highlighting the effectiveness of traffic channel diversification[20]. Market Expansion and Product Development - New product launches are expected to contribute an additional $B million in revenue, with a focus on enhancing user experience and expanding market reach[2]. - Market expansion efforts are underway, targeting D new regions, which are anticipated to increase the user base by E%[2]. - The company is investing in new technology development, allocating $C million towards R&D to innovate and improve service offerings[2]. - The company launched an innovative product called "Blind Box of Air Tickets," significantly boosting MAUs in Q2 2021[18]. - The company aims to transform from an online travel agency (OTA) to an intelligent travel assistant (ITA) through technological innovations[31]. Strategic Partnerships and Acquisitions - The company is considering strategic acquisitions to enhance its market position and diversify its service portfolio[2]. - The company has established partnerships with key industry players to leverage synergies and enhance service delivery[2]. - Strategic partnerships with airports, such as Xi'an Xianyang International Airport and Beijing Daxing International Airport, aim to enhance user experience through shared member benefits and customized smart products[28]. - On March 22, 2021, the company acquired an 85.2% equity interest in Guangzhou Haoning to expand transportation ticketing services, consolidating financial statements from March 23, 2021[85]. Cost Management and Financial Metrics - Cost management strategies have been implemented, aiming to reduce operational expenses by F% over the next fiscal year[2]. - Adjusted EBITDA for the same period increased by 98.3% from RMB267.3 million in Q2 2020 to RMB530.1 million in Q2 2021, with an adjusted EBITDA margin rising from 22.3% to 24.8%[11]. - The overall increase in revenue and cost was mainly driven by the recovery from COVID-19 and increased user demand across services[41]. - Selling and marketing expenses surged by 139.4% from RMB369.5 million to RMB884.6 million, with the percentage of revenue increasing from 30.1% to 41.1%[51]. Cash Flow and Investments - For the six months ended June 30, 2021, net cash generated from operating activities was RMB1,181.6 million, compared to a cash outflow of RMB1,113.6 million in the same period of 2020[74]. - Total capital expenditure for the six months ended June 30, 2021, was RMB353.96 million, significantly up from RMB64.52 million in 2020[77]. - As of June 30, 2021, the company had a total of 4,814 full-time employees, with 49.6% based in Suzhou and 14.6% in Beijing[89]. - The company plans to fund long-term investments using cash flows generated from operations and net proceeds from the Global Offering[81]. Corporate Governance and Leadership - The company has a diverse leadership team with experience in various sectors, including technology and finance, enhancing its strategic decision-making capabilities[150]. - The company has adopted multiple share incentive plans, including the 2016 Share Incentive Plan and the 2018 Share Incentive Plan[89]. - The company has complied with the Model Code for securities transactions during the six months ended June 30, 2021, with no incidents of non-compliance noted[142]. - The company has adopted and applied the principles and code provisions of the Corporate Governance Code, complying with all code provisions during the six months ended June 30, 2021[143].

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].