Trip.com Group Q2 2025 Earnings Call Summary Company Overview - **Company**: Trip.com Group - **Date**: Q2 2025 Earnings Call Key Financial Metrics - **Net Revenue**: 14.8 billion RMB, up 16% year-over-year and 7% quarter-over-quarter [2][16] - **Adjusted EBITDA**: 4.9 billion RMB, an increase of 10% year-over-year [3][16] - **Cash Reserves**: 94.1 billion RMB (approximately 13.1 billion USD) [2][16] - **Stock Buyback Plan**: New plan approved for up to 5 billion USD [4][16] Industry Insights - **Inbound Tourism Growth**: Inbound tourism bookings increased by over 100% year-over-year, driven by strong demand from South Korea and Southeast Asia [2][3] - **Market Potential**: Inbound tourism currently accounts for less than 0.5% of China's GDP, significantly lower than the 1-2% typical in developed markets [4][25] - **International Bookings**: International bookings grew by over 60% year-over-year, with significant contributions from the Asia-Pacific region [2][8] Strategic Initiatives - **Technological Innovations**: Upgraded itinerary planner providing personalized experiences; AI system supports 26 languages for customer service [2][6] - **Support for SMEs**: Trip.com is providing digital tools and marketing support to local hotels, restaurants, and travel agencies [7] - **Sustainability Efforts**: Encouraged over 100 million travelers to choose eco-friendly travel options, with a doubling of low-carbon hotel participation to 3,000 [15] Market Trends - **Domestic Tourism Resilience**: Domestic tourism shows strong growth, with flight volumes recovering to 80-90% of pre-pandemic levels [18] - **Pricing Trends**: Domestic hotel and flight prices are under pressure, but overall demand remains robust [19] - **Consumer Sentiment**: Increased interest in experiential products like concerts and festivals, particularly among younger travelers [20] Target Demographics - **Silver Generation**: The "Old Friends Club" targeting retirees aged 50-55 saw user numbers and GMV grow over 100% [13][23] - **Youth Engagement**: Travel and entertainment products are attracting younger travelers, with revenue growth exceeding 100% [14][24] Competitive Landscape - **Service Quality Focus**: Emphasis on providing high-quality service rather than solely competing on price [22] - **Direct Airline Sales**: Introduction of direct airline sales functionality expected to enhance customer satisfaction and sales opportunities [21] Future Outlook - **Global Expansion**: Continued focus on global market expansion and enhancing service quality to meet evolving customer demands [17][22] - **Marketing Strategy**: Investment in high-performance marketing strategies to drive long-term growth, particularly in the APEC region [27] Conclusion Trip.com Group is positioned for significant growth in the inbound tourism market, leveraging technology and strategic partnerships while focusing on sustainability and customer experience to enhance its competitive edge in the travel industry.

Market Overview - The U.S. stock market opened with slight gains, with the Nasdaq up 0.18%, S&P 500 up 0.1%, and Dow Jones up 0.09% [1] Company Highlights - Nvidia saw a rise of over 1%, reporting a Q2 revenue growth of 56% year-over-year, exceeding expectations, and approved an additional $60 billion for stock buybacks [1] - Cloud software company Snowflake increased by 10.5%, with Q2 revenue growth of 32% year-over-year, also raising its full-year revenue forecast [1] - Trip.com Group (携程) rose by 8.2%, reporting a Q2 net profit attributable to shareholders that grew over 26% year-over-year, and announced a stock buyback of up to $5 billion [1] - CrowdStrike experienced a decline of over 2%, reporting a Q2 net loss of $77.7 million, reversing from profit, and provided slightly lower revenue guidance for the upcoming quarter [1]

Group 1 - The U.S. stock market opened with slight gains, with the Nasdaq up 0.18%, S&P 500 up 0.1%, and Dow Jones up 0.09% [1] - Nvidia's Q2 revenue increased by 56% year-over-year, exceeding expectations, and the company approved an additional $60 billion for stock buybacks [1] - Snowflake's Q2 revenue grew by 32% year-over-year, surpassing expectations, and the company raised its full-year revenue forecast [1] - Trip.com saw an 8.2% increase in stock price, with Q2 net profit attributable to shareholders rising over 26%, and announced a stock buyback of up to $5 billion [1] - CrowdStrike experienced a decline of over 2%, reporting a net loss of $77.7 million in Q2, transitioning from profit to loss, with revenue guidance slightly below market expectations [1]

Group 1 - Ctrip (TCOM.US) stock surged 8.33% in pre-market trading [1] - The company reported a net profit attributable to shareholders of 4.846 billion yuan for Q2, a year-on-year increase of 26.43% [1] - Total revenue reached 14.864 billion yuan, up 16.23% year-on-year, exceeding expectations [1] Group 2 - Adjusted EBITDA was 4.9 billion yuan, compared to 4.4 billion yuan in the same period last year [1] - Adjusted EBITDA margin was 33%, a decrease of 2 percentage points year-on-year [1] - As of August 27, 2025, the company repurchased approximately 7 million American Depositary Shares (ADS) for a total consideration of about 400 million USD [1] Group 3 - The board approved a new share repurchase plan, authorizing the repurchase of up to 5 billion USD of issued common stock and/or ADS [1] - The closing price on August 27 was 65.290 USD, with a pre-market price of 70.730 USD on August 28 [1] - The total market capitalization of the company is 42.674 billion USD [1]

Core Viewpoint - Ctrip reported strong financial performance for Q2 2025, with significant growth in net revenue and profit, driven by a surge in inbound tourism bookings and a focus on quality service over price competition [2][3][4]. Financial Performance - In Q2, Ctrip's net operating revenue reached 14.8 billion RMB, a year-on-year increase of 16% and a quarter-on-quarter increase of 7% [2]. - The net profit attributable to Ctrip's shareholders was 4.8 billion RMB, reflecting a year-on-year growth of 26.3% [2]. Business Segments - Accommodation booking revenue was 6.2 billion RMB, up 21% year-on-year; transportation ticketing revenue was 5.4 billion RMB, up 11% year-on-year; and vacation business revenue was 1.1 billion RMB, with business travel management revenue at 690 million RMB, showing year-on-year growth of 5% and 9% respectively [4]. - The international segment saw OTA platform bookings increase by over 60% year-on-year, with the Asia-Pacific region contributing significantly to international revenue [4]. Inbound Tourism Growth - Inbound tourism bookings doubled, primarily driven by demand from South Korea and Southeast Asia [5]. - Ctrip's outbound hotel and flight bookings surpassed 120% of pre-pandemic levels, leading the market by 30-40 percentage points [4][5]. Market Trends - The inbound tourism sector currently contributes less than 0.5% to China's GDP, indicating substantial growth potential compared to developed countries where it typically ranges from 1% to 2% [5]. - Ctrip's "Smart Travel Future" hotel empowerment plan aims to enhance service capabilities and efficiency for various hotel types, targeting a 100% annual growth in inbound tourism orders over the next three years [5]. Target Demographics - Ctrip is focusing on the "silver-haired" market and younger travelers, with the "Ctrip Old Friends Club" seeing membership and transaction volume growth exceeding 100% year-on-year [6]. - The silver-haired demographic is projected to exceed 100 million by 2025, with significant potential for tourism revenue growth [6]. Product Innovation - The "Tourism + Entertainment" product segment saw revenue growth exceeding 100%, driven by the popularity of concerts and live events [8]. - Ctrip is investing in AI-driven travel planning tools to enhance user experience and optimize travel itineraries based on individual preferences [8].

Market Overview - The Hang Seng Technology Index (HSTECH) decreased by 1.66% as of August 28, 2025, with mixed performance among constituent stocks [3] - Ctrip Group-S (09961) and SMIC (00981) led gains, both up by 8.00%, while Meituan-W (03690) fell by 12.38% [3] - The Hang Seng Technology Index ETF (159742) dropped by 1.54%, with a latest price of 0.77 HKD [3] Trading Activity - The Hong Kong stock market recorded a total turnover of 371.38 billion HKD on August 27, 2025, with southbound funds net buying 15.371 billion HKD [3] - The ETF saw an intraday turnover of 14.53%, with a transaction volume of 458 million HKD, indicating active market participation [3] Institutional Insights - Future catalysts for the Hong Kong stock market include AI technology and new consumption trends, which are expected to drive market growth [4] - Continuous inflow of southbound funds is enhancing marginal pricing power, especially if domestic interest rates remain low [4] - The transition from loose monetary policy to loose credit in China, along with potential US interest rate cuts, could further support the Hong Kong market [4] ETF Performance - The latest size of the Hang Seng Technology Index ETF reached 3.157 billion HKD, with a total of 4.075 billion shares, marking a one-year high [5] - The ETF has seen a net inflow of 228 million HKD over the past three days, with a daily average net inflow of 75.882 million HKD [5] - The ETF's net asset value has increased by 36.12% over the past three years, with a maximum monthly return of 33.70% since inception [5] Tracking Accuracy - As of August 27, 2025, the Hang Seng Technology Index ETF has a tracking error of 0.047% over the past three years, the highest among comparable funds [6] Index Composition - The Hang Seng Technology Index comprises the top 30 Hong Kong-listed companies highly related to technology, with the top ten stocks accounting for 68.53% of the index [7]

Core Insights - Ctrip Group reported a significant increase in its financial performance for Q2 2025, with total bookings on its international OTA platform growing by over 60% year-on-year [1] - The inbound tourism bookings saw a remarkable growth of over 100% year-on-year, while outbound hotel and flight bookings surpassed pre-pandemic levels by 120% [1] - The recovery of national cross-border flight capacity reached 84% of pre-pandemic levels [1] Inbound Tourism Performance - The inbound tourism business continued to show strong growth, primarily driven by demand from South Korea and Southeast Asia, the two largest source markets [1] - In the first half of 2025, the number of inbound visitors increased by 30% year-on-year, with 71% of inbound tourists coming from visa-exempt regions [1] Strategic Initiatives - Ctrip Group launched the "Smart Travel Future" hotel empowerment program aimed at enhancing hotel performance in terms of inbound orders, new customer growth, and operational efficiency [1] - This initiative is designed to create a growth community between the platform and hotels [1]

Group 1 - Ctrip Group's stock surged significantly on August 28, with a nearly 9% increase in Hong Kong and a 2.1% rise in U.S. after-hours trading following the release of its Q2 2025 unaudited financial results [1] - The company's Q2 net operating revenue reached 14.8 billion RMB, marking a 16% year-over-year increase and a 7% quarter-over-quarter increase, driven by strong travel demand [1] - Net profit attributable to shareholders for Q2 was 4.846 billion RMB, with international OTA platform bookings increasing over 60% year-over-year and inbound tourism bookings more than doubling [1] Group 2 - Ctrip's inbound tourism business continues to grow robustly, with a 30% year-over-year increase in inbound visitors in the first half of 2025, and over 100% growth in inbound bookings on the platform, primarily driven by demand from South Korea and Southeast Asia [2] - The contribution of inbound tourism to China's GDP remains below 0.5%, indicating significant growth potential compared to developed countries where it ranges from 1% to 2% [2] - Ctrip's global business also shows strong growth, with international orders up over 60%, and mobile orders accounting for 70% of total orders, highlighting the importance of the app as a core channel for user interaction and conversion [2] Group 3 - Ctrip's CEO emphasized the resilience of the travel market and the company's ability to seize structural opportunities, identifying inbound tourism, international business, and younger senior travelers as new growth drivers [2] - The company has repurchased approximately 7 million American Depositary Shares (ADS) for a total consideration of about 400 million USD as part of its stock repurchase plan, with a new authorization to repurchase up to 5 billion USD of issued common stock and/or ADS [2]

Core Viewpoint - Ctrip Group's stock surged significantly following the announcement of its strong Q2 2025 financial results, reflecting robust travel demand and growth in both domestic and international bookings [3][4]. Financial Performance - In Q2 2025, Ctrip reported net operating revenue of 14.8 billion RMB, a year-on-year increase of 16% and a quarter-on-quarter increase of 7% [4]. - The net profit attributable to shareholders was 4.846 billion RMB [4]. Booking Growth - Ctrip's international OTA platform bookings grew over 60% year-on-year [4]. - Inbound travel bookings increased by over 100% year-on-year, with outbound hotel and flight bookings surpassing pre-pandemic levels by 120% [4]. - National cross-border flight capacity has recovered to 84% of pre-pandemic levels [4]. Inbound Tourism Insights - Inbound tourism's contribution to China's GDP remains below 0.5%, indicating significant growth potential compared to developed countries where it ranges from 1% to 2% [5]. - In the first half of 2025, inbound visitor numbers increased by 30%, with 71% of visitors coming from visa-exempt regions [4][5]. Business Strategy and Growth Drivers - Ctrip aims to empower small and medium enterprises in the tourism sector through digital tools and marketing support, enhancing their ability to capture global demand [5]. - The company emphasizes the resilience of the travel market and its capability to seize structural opportunities, with inbound tourism, international business, and younger demographics identified as new growth drivers [5]. Share Buyback Program - As of August 27, 2025, Ctrip repurchased approximately 7 million American Depositary Shares (ADS) for a total consideration of about 400 million USD [5]. - A new share buyback plan was approved, allowing for the repurchase of up to 5 billion USD of issued common stock and/or ADS [5].

Group 1 - The core idea of the news is the significant increase in inbound foreign travelers to Beijing, prompting Ctrip to establish a one-stop inbound travel consultation center at Beijing Capital Airport to enhance the travel experience [2][3] - In the first five months of this year, the total number of inbound foreign travelers at Beijing port reached 1.21 million, a 40% increase compared to the same period last year, with 690,000 benefiting from the transit visa exemption policy, doubling last year's figures [2] - Ctrip's new center offers over ten high-frequency services for inbound travelers, including payment guidance, itinerary planning, and accommodation booking, aiming to provide a comprehensive solution for their needs [2][3] Group 2 - Ctrip's "Smart Travel Future" hotel empowerment plan aims to help hotels overcome language barriers using AI, resulting in a significant increase in inbound orders [5][6] - The hotel manager reported that the use of Ctrip's multilingual AI system reduced response time from half a day to just 30 minutes, leading to an 8-fold increase in inbound orders in the past month [5] - The plan is expected to drive a 100% annual growth in inbound travel orders for partner hotels over the next three years [6] Group 3 - Ctrip hosted the Envision 2025 Global Partner Conference in Shanghai and Chengdu, attracting over 3,000 tourism industry partners from 74 countries, setting a record for the number of overseas professionals received by the Chinese tourism industry [8] - The event featured a global live broadcast that reached over 10 million viewers, promoting tourism in Sichuan, which saw a 52% increase in inbound tourist numbers and a 54% increase in tourism consumption from January to August 2025 [8] Group 4 - The 2025 Innovation Tourism Contribution Award recognized 20 global tourism innovation projects, providing a low-risk platform for traditional scenic spots to test new technologies and business models [10] - The award aims to encourage the tourism industry to innovate and develop sustainable practices, with a prize of 400,000 yuan for the winning projects [10] Group 5 - Ctrip's I+I project aims to enhance international transfer services for Sichuan Airlines, resulting in a 101% increase in international transfer ticket sales in the first half of the year [12] - The project focuses on optimizing online product displays and marketing exposure to boost passenger flow through domestic airlines and airports [12] Group 6 - Ctrip launched a zero-carbon practice project in Ningxia, showcasing sustainable development in rural tourism through the establishment of a holiday farm [16] - The project employs local villagers and aims to create job opportunities while preserving traditional culture and heritage [16] Group 7 - Ctrip's collaboration with 15 key tourism cities to promote self-driving travel experiences has led to a significant increase in rental orders, with a 200% year-on-year growth in the core rental product [18][19] - The initiative combines car rentals with deep cultural experiences, enhancing travel freedom and cultural immersion for tourists [19]