Core Insights - Trip.com Group Limited will announce its financial results for the three months ended September 30, 2025, on November 17, 2025, after market close [1] - A conference call will be held by the management team at 7:00 PM U.S. Eastern Time on the same day to discuss the results [2] - Participants must pre-register for the conference call to receive access details [3] Company Overview - Trip.com Group Limited is a leading global one-stop travel platform, offering a comprehensive suite of travel products and services [4] - The company operates under various brands, including Ctrip, Qunar, Trip.com, and Skyscanner, and aims to provide cost-effective travel bookings and support [4] - Founded in 1999, the company was listed on Nasdaq in 2003 and on HKEX in 2021, with a mission to pursue the perfect trip for a better world [4]

Group 1 - The core theme of the news is the deep collaboration between Ctrip Group and the China International Import Expo, showcasing its innovative inbound tourism services and commitment to enhancing the travel experience for international visitors [1][5] - Ctrip Group is recognized as the "official travel service partner" for the expo, providing comprehensive services including flight bookings, hotel accommodations, and local experiences, highlighting its strength as a leading global travel service provider [1][3] - Inbound tourism continues to thrive, with Ctrip reporting over 100% growth in flight segments and hotel nights for foreign visitors compared to the previous year, and a remarkable 300% increase in ticket sales [1][3] Group 2 - The establishment of China's first one-stop inbound tourism consultation center aims to provide extensive services for overseas tourists, promoting a cross-industry collaboration model [3] - The "Go China" annual marketing campaign achieved over 500 million global exposures, while the new "FLiP !T Trips" initiative invites over a thousand international influencers to experience various local cultures [3] - Ctrip's "free city half-day tour" program has successfully hosted over 10,000 tourists from more than 100 countries, enhancing long-term travel interest [3][5] Group 3 - Ctrip Group's exhibition at the expo also emphasizes its multi-dimensional practices in ESG and corporate sustainability, focusing on carbon reduction in tourism, family-friendly travel services, and community inclusivity [5] - The company plans to continue investing in innovation, leveraging technology and global partnerships to enhance inbound tourism services and promote a more open and friendly image of China [5]

Market Overview - The US stock market indices collectively declined on Tuesday, with the Hang Seng Index ADR falling to 25,866.46 points, down by 85.94 points or 0.33% compared to the Hong Kong close [1]. Company Performance - Major blue-chip stocks mostly experienced declines, with HSBC Holdings closing at HKD 108.602, up by 0.56% compared to the Hong Kong close, while Tencent Holdings closed at HKD 623.88, down by 0.81% [3]. - Tencent Holdings saw a decrease of HKD 5.12 or 0.81% in its ADR price, closing at HKD 623.88 [4]. - Alibaba Group's ADR fell by HKD 4.20 or 2.57%, closing at HKD 159.00 [4]. - Xiaomi Group's ADR dropped by HKD 1.30 or 2.91%, closing at HKD 43.42 [4]. - AIA Group's ADR decreased by HKD 0.30 or 0.38%, closing at HKD 79.62 [4]. - NetEase's ADR fell by HKD 3.40 or 1.54%, closing at HKD 216.80 [4]. - Ctrip Group's ADR declined by HKD 4.50 or 0.81%, closing at HKD 548.50 [4]. - BYD's ADR decreased by HKD 2.00 or 2.02%, closing at HKD 97.10 [4]. - The Hong Kong Stock Exchange's ADR fell by HKD 3.20 or 0.75%, closing at HKD 425.60 [4].

Group 1 - The service industry is expected to benefit from favorable policies, with a significant increase in service consumption anticipated in 2026 due to continuous policy support and demand dividends [3][7][11] - The report highlights the structural growth in emotional value and symbolic consumption, particularly in the IP toy industry, which is rapidly realizing commercial value [3][7][9] - The retail industry is undergoing a transformation towards a decentralized model, with traditional retail facing intense competition and new channels like discount stores and community supermarkets emerging [3][7][9] Group 2 - The report emphasizes the importance of optimizing holiday arrangements and integrating cultural tourism to stimulate demand, particularly for families with children [12][15] - The service consumption structure in China shows significant room for growth, with the current per capita service consumption being much lower than that of developed countries [29][30][32] - The tea and coffee beverage market in China is experiencing rapid growth, with the market size expected to increase significantly, driven by consumer demand in lower-tier cities [56][58][59] Group 3 - The online travel agency (OTA) market is projected to maintain stable profit margins, with companies like Trip.com leading in growth despite slight slowdowns in overseas markets [48][54] - The hotel industry is seeing a gradual improvement in operating data, with a narrowing decline in revenue per available room (RevPAR) expected to continue [37][40][43] - The report indicates that the demand for travel and tourism services is stable, with business travel being a significant source of fluctuations in demand [40][41]

Summary of China Travel & Leisure Industry Conference Call Industry Overview - The conference call focused on the **China travel and leisure industry**, particularly the performance of various companies in the sector during **3Q25** [1][2]. Key Points and Arguments General Market Trends - **Weaker Disposable Income**: Disposable income growth slowed to **4.5%** in 3Q25 from **5.1%** in 2Q25, impacting consumption trends which fell to **3.4%** from **5.2%** [2][3]. - **Domestic Air Traffic**: Increased by **3%** year-over-year (yoy) in 3Q25, down from **6%** in 2Q25 [2]. - **Outbound Travel**: Normalized to **15%** yoy growth, significantly lower than **34%** and **24%** in 1Q and 2Q25 respectively, as flight capacity returned to pre-pandemic levels [2]. Company Performance Highlights - **Songcheng**: Reported a **10%** yoy revenue decline due to competition and health issues [3]. - **CTGDF**: Revenue decline narrowed to flat yoy in 3Q25 from **-11%** and **-8%** in previous quarters, with a **14%** increase during the Golden Week holidays [3][6]. - **Jinjiang and BTG**: RevPar improved to declines of **-2%** and **-3%** yoy, respectively, compared to **-5%** and **-6%** in 2Q25 [3][6]. - **Chinese Airlines**: Benefited from lower fuel costs and traffic recovery, with domestic traffic up **13%** and international traffic up **11%** [6]. - **Shiji**: Revenue increased by **7%** yoy, but net loss widened to **Rmb12 million** due to higher impairment losses [6]. Macau Casino Performance - **Macau GGR**: Increased by **13%** yoy in 3Q25, up from **8%** in 2Q25, driven by factors such as the wealth effect from the stock market and reduced diversion of travelers to other destinations [7]. - **Sands China and MGM**: Results exceeded expectations, with Sands China expected to report **US$1.901 billion** and MGM **US$1.091 billion** in revenue for 3Q25 [7][10]. Samsonite Expectations - Expected to report a narrower revenue decline of **-2%** yoy in 3Q25, improved from **-5%** in 2Q25, driven by better performance in the US and Asia [7][10]. Hotel Operators - **H World and Atour**: Both expected to report better-than-expected results due to stabilizing hotel RevPar and robust retail sales growth [7][10]. - **RevPar Forecasts**: H World and Atour projected declines of **-0.4%** and **-3%** yoy, respectively, with revenue growth forecasts of **+7%** and **+35%** yoy [8][10]. OTA Performance - **Trip.com and Tongcheng**: Expected to meet revenue guidance with Trip.com projected to grow **+15%** and Tongcheng **+9%** [9][10]. - **Profit Margins**: Potential for improved profit margins due to favorable revenue mix shifts towards higher-margin businesses [9]. Other Important Insights - **Investor Focus**: Investors are expected to pay close attention to companies' forward guidance during their 3Q25 results to assess the sustainability of the recovery [2][10]. - **Valuation Considerations**: Despite recent performance, share prices of US-listed chain hotels are still trading below mid-cycle valuations, indicating potential for upward earnings revisions [10][11]. Conclusion - The China travel and leisure industry is showing signs of recovery, although challenges remain due to weaker consumer spending and competition. Companies like H World, Atour, and TCOM are positioned well for growth, while Macau casinos are benefiting from a rebound in gaming revenue. Investors should remain cautious but optimistic about the sector's trajectory moving forward.

Core Points - The Hang Seng Index (HSI) closed at 26,167.41, reflecting a slight increase of 0.03% on November 3, 2023 [1] - Major blue-chip stocks showed mixed performance, with HSBC Holdings rising by 1.13% while Tencent Holdings fell by 0.21% [2] Stock Performance Summary - Tencent Holdings: Latest price at 628.00 HKD, down by 1.00 HKD (-0.16%), ADR price at 626.678 HKD, a decrease of 1.322 HKD compared to the Hong Kong market [3] - Alibaba Group: Latest price at 163.20 HKD, down by 1.90 HKD (-1.15%), ADR price at 162.916 HKD, a decrease of 0.284 HKD compared to the Hong Kong market [3] - HSBC Holdings: Latest price at 108.30 HKD, up by 0.20 HKD (+0.19%), ADR price at 109.527 HKD, an increase of 1.227 HKD compared to the Hong Kong market [3] - AIA Group: Latest price at 79.95 HKD, up by 4.50 HKD (+5.96%), ADR price at 79.996 HKD, a slight increase of 0.046 HKD compared to the Hong Kong market [3] - BYD Company: Latest price at 99.10 HKD, down by 1.50 HKD (-1.49%), ADR price at 98.008 HKD, a decrease of 1.092 HKD compared to the Hong Kong market [3]

Core Viewpoint - The performance of popular Chinese concept stocks showed mixed results, with the Nasdaq Golden Dragon China Index increasing by 0.26% [1] Group 1: Stock Performance - Alibaba experienced a decline of over 1% [1] - Ctrip saw an increase of over 1% [1] - Tencent Music rose by over 3% [1] - Futu Holdings dropped by over 2% [1] - Li Auto fell by over 1% [1] - NIO increased by over 2% [1]

Core Insights - Ctrip has upgraded its "Global Taste Coordinates," covering 68 countries, 512 cities, and over 18,000 restaurants, enhancing its offerings in the food and dining sector [1] - Inbound travel orders on Ctrip surged by 100% year-on-year in the first half of the year, with inbound visitor numbers increasing by 64% and spending rising by 59% as of October [3] - The motivations for inbound tourists have shifted, with food experiences now surpassing sightseeing and accommodation as the primary reason for travel planning [3] Company Developments - Ctrip's new high-end restaurant ranking system categorizes restaurants into three tiers: Black Diamond, Diamond, and Platinum, redefining their significance beyond just price and appearance [3] - The ranking process for high-end restaurants now includes insights from Black Diamond users, providing a more authentic market perspective and consumer insights [3] Market Trends - The landscape of inbound tourism has expanded, with new source countries for visitors including Kazakhstan, Kuwait, and Qatar, indicating a diversification beyond traditional markets like Japan and Southeast Asia [3] - Major cities in China such as Shanghai, Beijing, Hangzhou, Guangzhou, Hong Kong, Chengdu, and Macau are identified as the most active regions for high-end dining consumption [4]

Group 1: Core Insights - Ctrip's inbound travel orders surged by 100% year-on-year in the first half of this year, with inbound visitor numbers increasing by 64% and inbound spending rising by 59% as of October [1] - China has established itself among the top three countries globally for inbound travel orders, with a growth rate that places it in the top five [1] - The source countries for inbound tourists to China have expanded from traditional markets like Japan and Southeast Asia to include Europe, North America, India, the Middle East, and newly added visa-free countries such as Kazakhstan, Kuwait, and Qatar [1] Group 2: Culinary Trends - The Ctrip Food Guide 2026 global list, covering 68 countries and over 18,000 restaurants, indicates that food is evolving from an "additional experience" to the "primary motivation" for inbound travel [1] - Ctrip's CMO highlighted the strong appeal of "China travel," presenting a significant opportunity in the growing market [1] - Overseas tourists are increasingly searching for keywords like "food," "restaurants," and "local specialties," with a rise of over 30%, indicating a shift in travel planning priorities towards culinary experiences [1] Group 3: High-End Dining Insights - The newly released high-end restaurant rankings redefine three categories: Black Diamond as "ultimate travel destinations," Diamond as "taste landmarks," and Platinum as "hidden culinary surprises" [3] - The rankings incorporate user perspectives for the first time, providing real market insights and consumer preferences [4] - Major cities for high-end dining in China include Shanghai, Beijing, Hangzhou, Guangzhou, Hong Kong, Chengdu, and Macau, with Shanghai dominating the top five hottest restaurants [4] Group 4: Home Cuisine Appeal - The "Home Flavor" theme list targets the emotional connection of travelers seeking familiar tastes, with a 30% increase in searches for various cuisines [5] - Ctrip's Food Guide ensures travelers can find authentic "Chinese flavors" abroad, with Chinese cuisine now available in 13 countries and 21 cities [5] - The list caters not only to Chinese travelers but also to those from Japan, Korea, and Southeast Asia, allowing them to find their home cuisine while traveling [5] Group 5: Must-Visit Restaurant Recommendations - Ctrip's "Must-Visit" list addresses the dilemma of choosing popular restaurants that may not always meet expectations [6] - The platform provides a comprehensive guide from luxury dining to street food, helping travelers avoid poor choices [6] - Ctrip's immersive dining experience, "Taste of China," launched in Shanghai, aims to transform the dining experience into a journey, with plans for future culinary tours [6]

Summary of Key Points from the Conference Call Industry and Company Focus - The conference call discusses the strategic sectors in China, particularly focusing on innovative growth companies that are expected to emerge as "China Next Winners" in the context of the country's five-year plans [1][3][4]. Core Insights and Arguments 1. **Five-Year Plans as Investment Roadmaps**: China's five-year plans have historically served as effective roadmaps for investors, highlighting key sectors that are prioritized for growth. Significant alpha generation is often observed in the initial years following the prioritization of these sectors [3][12][13]. 2. **Key Growth Areas Identified**: - **Technology and Innovation**: Growth in semiconductors and artificial intelligence (AI) is anticipated, with a focus on self-reliance and high-tech innovation [3][4]. - **Advanced Manufacturing and Automation**: Chinese companies are expanding in mature automation areas, with new entrants in humanoid robotics benefiting from a large customer base and lower development costs [3]. - **Green Technology Leadership**: China has achieved 50% penetration of electric vehicles, with expectations for full electrification by the end of the decade. Rapid development in solar, wind, and nuclear energy is also anticipated [3]. - **Healthcare and Drug Development**: The aging population is expected to create greater opportunities in healthcare, with the industry catching up to global standards in R&D capabilities [3]. - **Domestic Consumption Boost**: A shift in consumer behavior from material ownership to experiential wealth is noted, benefiting companies focused on experiences rather than goods [3]. - **Urban Air Mobility**: China aims to dominate the low altitude economy, with proactive regulations and infrastructure development supporting this market [3]. 3. **Investment Implications**: The report emphasizes that growth stocks and innovative companies have historically provided the best returns for long-term investors, with a focus on high-growth and highly innovative firms [4][12]. 4. **Top Stock Recommendations**: Key stocks highlighted include Tencent, CATL, Alibaba, Trip.com, Luxshare, Hengrui, and Innovent as potential investment opportunities [4]. Additional Important Insights 1. **Historical Performance of Strategic Industries**: Industries identified as strategic in five-year plans have historically shown an average alpha of 30-40% in the first two years post-inclusion, although returns tend to decline after five years [13][17]. 2. **Characteristics of Historical Winners**: Successful companies typically emerged from mid-cap stocks (around $5 billion adjusted for today's market size), with reasonable valuations (13x PE), operating margins of 6-9%, and long-term earnings growth expectations exceeding 12% [12][50]. 3. **Long-Term Trends**: The report indicates that high-growth and innovative companies have generated significant annualized alpha, with the top 20% of the market leading in innovation yielding 8.5% p.a. alpha over the last decade [12][50]. 4. **Geopolitical and Macroeconomic Influences**: The evolving geopolitical landscape and domestic structural challenges are shaping China's economic and policy environment, emphasizing self-reliance and technological innovation [14][29]. This summary encapsulates the key points discussed in the conference call, focusing on the strategic sectors and companies poised for growth in China, as well as the historical context and investment implications derived from the five-year plans.