Core Insights - Ctrip Group reported a net revenue of 14.8 billion RMB (2.1 billion USD) for Q2 2025, representing a year-on-year increase of 16% and a quarter-on-quarter increase of 7% [1] Revenue Breakdown - Accommodation booking revenue reached 6.2 billion RMB (869 million USD), up 21% year-on-year, driven by growth in accommodation bookings [1] - Transportation ticketing revenue was 5.4 billion RMB (753 million USD), an 11% year-on-year increase, primarily due to the rise in transportation ticket bookings [1] - Vacation business revenue amounted to 1.1 billion RMB (151 million USD), reflecting a 5% year-on-year increase, supported by growth in vacation bookings [1] - Business travel management revenue was 692 million RMB (97 million USD), up 9% year-on-year and 21% quarter-on-quarter, attributed to the increase in business travel orders [1] Profitability - Net profit attributable to Ctrip Group shareholders was 4.8 billion RMB (676 million USD), compared to 3.8 billion RMB in the same period of 2024 and 4.3 billion RMB in the previous quarter [1] Cash Position - As of June 30, 2025, the company had cash and cash equivalents, restricted cash, short-term investments, and held-to-maturity deposits totaling 94.1 billion RMB (13.1 billion USD) [2]

Financial Data and Key Metrics Changes - The company reported a net revenue of RMB 14.8 billion for Q2 2025, representing a 16% increase year over year and a 7% increase quarter over quarter, driven by strong travel demand across segments [30] - Adjusted EBITDA for Q2 was RMB 4.9 billion, up from RMB 4.4 billion in the same period last year, reflecting operational efficiency [34] - Diluted earnings per ordinary share were RMB 6.97, or USD 0.97, for Q2 2025, with non-GAAP diluted earnings at RMB 7.20, or USD 1.01 [34] Business Line Data and Key Metrics Changes - Accommodation reservation revenue increased by 21% year over year to RMB 6.2 billion, with a 12% increase quarter over quarter [30] - Transportation ticketing revenue was RMB 5.4 billion, an 11% year-over-year increase, remaining flat quarter over quarter [31] - Packaged tour revenue grew by 5% year over year and 14% quarter over quarter, driven by international tour offerings [32] Market Data and Key Metrics Changes - Inbound travel bookings increased by over 100% year over year, with national inbound arrivals growing by 30% [14][6] - International bookings on the platform rose by over 60% year over year, with strong contributions from the APAC region [17] - Outbound travel from China saw flight capacity recover to 84% of pre-pandemic levels, with outbound hotel and air bookings surpassing 120% of 2019 volumes [19] Company Strategy and Development Direction - The company aims to leverage AI technology to enhance travel planning and user experience, with a focus on personalized recommendations and content generation [9][42] - A commitment to empowering small and medium-sized enterprises in the travel sector through digital tools and marketing support is emphasized [8] - The company plans to expand its reach globally while focusing on inbound travel as a key growth engine, particularly as visa policies ease [16][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects of the travel industry, highlighting the importance of travel for economic development and cultural exchange [11] - The company is focused on maintaining operational efficiency and cost discipline to deliver sustainable growth and long-term value [36] - Management noted that consumer sentiment remains resilient, with strong demand for experiential products and travel among various demographics [53] Other Important Information - The company launched a USD 100 million tourism innovation fund to support commercial innovation in travel [27] - A new share repurchase program was approved, allowing the company to repurchase up to USD 5 billion of its outstanding shares, reflecting confidence in long-term value [35][94] Q&A Session Summary Question: AI and content strategy - Management elaborated on the integration of AI and content, enhancing user experience through personalized recommendations and improved data processing efficiency [38][39] Question: Booking trends and cross-border travel - Management noted resilient demand in domestic travel and strong growth in outbound and inbound travel, with significant year-over-year increases [44][46] Question: Hotel and air ticket price trends - Management indicated that domestic hotel and air ticket prices faced pressure despite volume growth, with outbound air ticket prices softening year over year [49][50] Question: Consumer sentiment trends - Management observed strong volume growth across all markets, particularly for experiential products, despite slight decreases in average daily rates [52][53] Question: Competition landscape - Management emphasized a focus on service quality and comprehensive product offerings rather than engaging in price competition, aiming to maintain leadership in the travel industry [64] Question: Market potential for Old Friends Club and Travel Plus Entertainment - Management projected significant growth potential in these segments, estimating the market could exceed USD 1 trillion in the next few years [68][70] Question: Inbound travel potential - Management highlighted the substantial growth potential for inbound travel in China, which currently accounts for less than 0.5% of GDP compared to 1-2% in developed markets [76] Question: International expansion and marketing strategy - Management discussed the effectiveness of their marketing strategy, focusing on user acquisition through their mobile app, which accounts for 70% of global orders [85][90] Question: Shareholder return and buyback process - Management provided updates on the share repurchase program, indicating a commitment to enhancing shareholder returns through disciplined capital allocation [94][95]

Financial Data and Key Metrics Changes - The company reported a net revenue of RMB 14.8 billion for Q2 2025, representing a 16% increase year over year and a 7% increase from the previous quarter [31] - Adjusted EBITDA for the quarter was RMB 4.9 billion, up from RMB 4.4 billion in the same period last year [34] - Diluted earnings per share were RMB 6.97 or USD 0.97, with non-GAAP diluted earnings per share at RMB 7.20 or USD 1.01 [34] Business Line Data and Key Metrics Changes - Accommodation reservation revenue increased by 21% year over year to RMB 6.2 billion [31] - Transportation ticketing revenue was RMB 5.4 billion, an 11% year-over-year increase [32] - Packaged tour revenue grew by 5% year over year to RMB 1.1 billion, while corporate travel revenue increased by 9% year over year to RMB 692 million [32] Market Data and Key Metrics Changes - Inbound travel bookings increased by over 100% year over year, with national inbound arrivals growing by 30% [15][31] - International bookings on the platform rose by over 60% year over year, particularly strong in the APAC region [18][81] - Outbound travel from China saw cross-border flight capacity recover to 84% of pre-pandemic levels, with outbound hotel and air bookings surpassing 120% of 2019 volumes [21] Company Strategy and Development Direction - The company aims to leverage AI technology to enhance travel planning and user experience, with a focus on personalized recommendations and content generation [8][41] - A new initiative, Intellitrip, was launched to help hotels capture inbound demand and improve operational efficiency through AI-powered tools [23] - The company is committed to sustainability and innovation, launching a USD 100 million tourism innovation fund to support breakthroughs in travel [28] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects of the travel industry, highlighting the potential for inbound travel to become a key growth engine [12][17] - The company noted that consumer sentiment remains resilient, with strong demand for experiential products and travel among various demographics [54] - Management emphasized the importance of maintaining high service quality and comprehensive product offerings in a competitive landscape [65] Other Important Information - The company has completed share repurchases totaling approximately USD 400 million and announced a new share repurchase program of up to USD 5 billion [35][96] - The balance of cash and cash equivalents as of June 30, 2025, was RMB 94.1 billion or USD 13.1 billion [35] Q&A Session Summary Question: Can you elaborate on the AI and content strategy? - The integration of AI enhances content delivery and user experience, allowing for personalized travel planning and improved data processing efficiency [38][40] Question: What are the booking trends observed this year? - Domestic travel shows strong volume growth, while outbound travel has recovered significantly, with inbound travel also seeing substantial growth [44][46] Question: How have hotel and air ticket prices trended recently? - Domestic hotel and air ticket prices faced pressure despite volume growth, while outbound travel prices softened due to increased flight capacity [49][50] Question: What insights can you share on consumer sentiment? - The market shows resilience, with strong demand for experiential products among various age groups, despite slight decreases in average daily rates [53][54] Question: How does the competition landscape look with new entrants? - The company focuses on providing excellent service and comprehensive offerings rather than engaging in price competition, which is crucial for customer satisfaction [65][66] Question: What is the potential market size for the Old Friends Club and Travel Plus Entertainment? - The Old Friends Club market could grow to over USD 1 trillion in the next few years, while demand for travel plus entertainment products is also strong [69][72] Question: Can you provide insights into the inbound travel potential? - Inbound travel currently accounts for less than 0.5% of China's GDP, indicating significant growth potential if effectively promoted [77][78] Question: What is the update on the marketing strategy for trip.com? - The company maintains a disciplined ROI-driven marketing strategy, focusing on acquiring app users and enhancing operational efficiency [85][91] Question: Can you provide an update on the share repurchase program? - The company has fully utilized its previous share repurchase quota and announced a new multiyear program to strategically buy back shares [93][96]

Core Insights - Ctrip Group reported strong financial results for the first half and second quarter of 2025, with significant revenue and profit growth compared to the previous year [1] Financial Performance - For the first half of 2025, Ctrip's revenue reached RMB 28.7 billion, operating profit was RMB 7.665 billion, and net profit was RMB 9.194 billion [1] - In Q2 2025, revenue was RMB 14.864 billion, a 16% increase from RMB 12.788 billion in the same period last year, with net profit of RMB 4.88 billion [1] Business Segment Performance - Accommodation booking revenue was RMB 6.2 billion, up 21% year-on-year and 12% quarter-on-quarter [2] - Transportation ticketing revenue reached RMB 5.4 billion, reflecting an 11% year-on-year growth [2] - Travel vacation business revenue was RMB 1.1 billion, increasing by 5% year-on-year and 14% quarter-on-quarter [2] - Business travel management revenue was RMB 0.692 billion, a 9% year-on-year increase and a 21% quarter-on-quarter increase [3] Profitability - Q2 2025 net profit was RMB 4.9 billion, compared to RMB 3.9 billion in the same quarter last year and RMB 4.3 billion in the previous quarter [4] - Adjusted EBITDA for Q2 2025 was RMB 4.9 billion, up from RMB 4.4 billion year-on-year [4] - Net profit attributable to Ctrip shareholders was RMB 4.8 billion, compared to RMB 3.8 billion in the same quarter last year [4] Cost Structure - Q2 2025 operating costs were RMB 2.8 billion, a 22% year-on-year increase [5] - Product development expenses were RMB 3.5 billion, up 17% year-on-year [5] - Sales and marketing expenses reached RMB 3.3 billion, reflecting a 17% year-on-year increase [5] - General and administrative expenses were RMB 1.1 billion, a 2% year-on-year increase [5] Earnings Per Share - Diluted earnings per share were RMB 6.97 [6] - Non-GAAP diluted earnings per share were RMB 7.20 [7] Cash Flow and Financial Position - As of June 30, 2025, the company had cash and cash equivalents totaling RMB 94.1 billion [8] Shareholder Returns - As of August 27, 2025, Ctrip had repurchased approximately 7 million ADS for a total consideration of about USD 400 million [9] - The board approved a new share repurchase plan, authorizing up to USD 5 billion for common stock and/or ADS [9]

Group 1 - The core viewpoint of the article highlights Ctrip Group's strong financial performance in Q2 2025, with net revenue reaching 14.843 billion RMB, a year-on-year increase of 16.22% [1] - The net profit attributable to shareholders was 4.846 billion RMB, reflecting a year-on-year growth of 26.43% [1] - Basic earnings per share stood at 7.34 RMB, indicating solid profitability [1] Group 2 - Accommodation booking revenue amounted to 6.2 billion RMB, showing a year-on-year increase of 21% and a quarter-on-quarter growth of 12% [1] - Transportation ticketing revenue was 5.4 billion RMB, with a year-on-year growth of 11% and stable quarter-on-quarter performance [1] - The company's executive chairman emphasized the critical role of tourism in national development and global cooperation, expressing confidence in the industry's long-term prospects [1] Group 3 - The CEO stated that the company will continue to address the growing demands of diverse customer segments, particularly focusing on the inbound tourism market [1] - The company is committed to enhancing service capabilities to provide localized experiences for global users [1]

Core Insights - Ctrip Group reported strong financial results for the first half of 2025, with revenue reaching 28.7 billion RMB (approximately 4 billion USD) and a net profit of 9.194 billion RMB (approximately 1.283 billion USD) [3][4] Financial Performance - For Q2 2025, Ctrip's revenue was 14.864 billion RMB (approximately 2.075 billion USD), a 16% increase year-over-year from 12.788 billion RMB [8][10] - The company's net profit for Q2 2025 was 4.88 billion RMB (approximately 681 million USD), up 26% from 3.9 billion RMB in Q2 2024 [16] - Operating profit for Q2 2025 was 4.1 billion RMB, with an operating margin of 28% [12][14] Revenue Breakdown - Accommodation booking revenue for Q2 2025 was 6.225 billion RMB (approximately 869 million USD), a 21% increase year-over-year [4][10] - Transportation ticketing revenue reached 5.397 billion RMB (approximately 753 million USD), an 11% increase compared to the previous year [10] - The vacation package business generated 1.079 billion RMB (approximately 151 million USD), up 5% year-over-year [10] - Business travel management revenue was 692 million RMB (approximately 97 million USD), a 9% increase year-over-year [10] Cost and Expenses - Total operating costs for Q2 2025 were 2.8 billion RMB (approximately 393 million USD), a 22% increase year-over-year [10] - Research and development expenses for Q2 2025 were 3.5 billion RMB (approximately 489 million USD), up 17% year-over-year [10][11] - Sales and marketing expenses were 3.3 billion RMB (approximately 464 million USD), also up 17% year-over-year [10][11] Cash Position - As of June 30, 2025, Ctrip held cash and cash equivalents totaling 94.1 billion RMB (approximately 13.1 billion USD) [16]

Core Insights - Ctrip Group-S (09961) reported a net revenue of RMB 14.843 billion for the second quarter ending June 30, 2025, representing a year-on-year increase of 16.22% [1] - The net profit attributable to Ctrip Group Limited was RMB 4.846 billion, up 26.43% year-on-year, with basic earnings per share of RMB 7.34 [1] Revenue Breakdown - Accommodation booking revenue for Q2 2025 was RMB 6.2 billion (USD 869 million), showing a year-on-year increase of 21%, driven by growth in accommodation bookings [1] - Transportation ticketing revenue for Q2 2025 was RMB 5.4 billion (USD 753 million), reflecting an 11% year-on-year increase, primarily due to growth in transportation ticket bookings [1] Strategic Outlook - The Executive Chairman of Ctrip, Liang Jianzhang, emphasized that tourism is a key factor for national development and global cooperation, serving as an engine for economic growth and a catalyst for cultural exchange [1] - The CEO of Ctrip, Sun Jie, expressed optimism about the strong development momentum across various tourism sectors and highlighted the focus on meeting the growing demands of different customer segments, particularly in the inbound tourism market [1]

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] - National cross-border flight capacity has recovered to 84% of pre-pandemic levels [1] Inbound Tourism - The growth in inbound tourism is primarily driven by demand from South Korea and Southeast Asia, which are the two largest source markets [1] - In the first half of 2025, the total number of inbound visitors increased by 30%, with 71% of these visitors coming from visa-exempt regions [1] Strategic Initiatives - Ctrip has 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]

Core Insights - Ctrip Group reported a net revenue of RMB 14.843 billion for Q2 2025, representing a year-on-year increase of 16.22% [1] - The net profit attributable to Ctrip Group reached RMB 4.846 billion, up 26.43% year-on-year, with basic earnings per share of RMB 7.34 [1] Revenue Breakdown - Accommodation booking revenue for Q2 2025 was RMB 6.2 billion (USD 869 million), showing a year-on-year increase of 21% and a quarter-on-quarter increase of 12%, driven by strong travel demand, particularly during holidays [1] - Transportation ticketing revenue for Q2 2025 was RMB 5.4 billion (USD 753 million), reflecting an 11% year-on-year increase, with stable quarter-on-quarter performance [1] Strategic Outlook - The Chairman of the Board emphasized that tourism is a key factor for national development and global cooperation, viewing it as an engine for economic growth and a catalyst for cultural exchange [1] - The CEO highlighted the strong growth momentum across various tourism sectors and the company's focus on meeting the increasing demands of different customer segments, particularly in the inbound tourism market [1]

[Q2 and H1 2025 Earnings Announcement](index=1&type=section&id=2025%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E5%8F%8A%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) [Company Information and Announcement Overview](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%85%AC%E5%91%8A%E6%A6%82%E8%A7%88) This section outlines the context, basic information, and access details for Trip.com Group's Q2 and H1 2025 unaudited financial results announcement [Company Profile](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) - Trip.com Group Limited (Stock Code: 9961) is a company incorporated in the Cayman Islands[2](index=2&type=chunk) [Announcement Publication Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%85%AC%E5%91%8A%E6%A6%82%E8%A7%88) - Trip.com Group released its unaudited financial results for Q2 and H1 2025 on August 28, 2025 (Singapore time)[2](index=2&type=chunk)[3](index=3&type=chunk) - The announcement is available on the HKEX website www.hkexnews.hk and the company's investor relations website investors.trip.com[2](index=2&type=chunk) [Q2 and H1 2025 Performance Summary](index=2&type=section&id=2025%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E5%8F%8A%E4%B8%8A%E5%8D%8A%E5%B9%B4%E4%B8%9A%E7%BB%A9%E6%A6%82%E8%A6%81) Trip.com Group achieved strong growth in Q2 2025, particularly in international business and inbound tourism, with management expressing optimism and emphasizing strategic investments in innovation, partnerships, and inbound tourism expansion [Performance Highlights](index=2&type=section&id=%E4%B8%9A%E7%BB%A9%E4%BA%AE%E7%82%B9) - International business segments continued to show **strong growth** in Q2 2025[4](index=4&type=chunk) - Outbound hotel and air ticket bookings have fully surpassed **120% of 2019 pre-pandemic levels**[4](index=4&type=chunk) - International OTA platform total bookings increased by **over 60% year-over-year**[6](index=6&type=chunk) - Inbound tourism bookings increased by **over 100% year-over-year**[6](index=6&type=chunk) [Management Commentary](index=2&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AF%84%E8%AE%BA) - Executive Chairman Mr. James Liang stated that tourism is a key factor for national development and global cooperation, and the company will continue to prioritize strategic investments in innovation, partnership development, and inbound tourism expansion[4](index=4&type=chunk) - CEO Ms. Jane Sun emphasized the company's strategy focuses on capturing the growing demands of diverse customer segments, particularly in the inbound tourism market, and enhancing service capabilities to provide seamless local experiences[4](index=4&type=chunk) [Financial Performance Analysis](index=2&type=section&id=%E8%B4%A2%E5%8A%A1%E4%B8%9A%E7%BB%A9%E5%88%86%E6%9E%90) Trip.com Group's Q2 2025 net revenue increased by 16% year-over-year, driven by strong tourism recovery, with accommodation and transportation as primary revenue sources and significant growth in profitability, net profit, and adjusted EBITDA [Net Revenue](index=2&type=section&id=%E5%87%80%E8%90%A5%E4%B8%9A%E6%94%B6%E5%85%A5) Q2 2025 Net Revenue | Metric | Amount (RMB) | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Net Revenue | 14.8 billion | +16% | +7% | [Revenue by Business Segment](index=2&type=section&id=%E5%90%84%E4%B8%9A%E5%8A%A1%E6%9D%BF%E5%9D%97%E6%94%B6%E5%85%A5) Q2 2025 Revenue by Business Segment | Business Segment | Revenue (RMB) | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Accommodation Reservation | 6.2 billion | +21% | +12% | | Transportation Ticketing | 5.4 billion | +11% | Stable | | Packaged Tours | 1.1 billion | +5% | +14% | | Corporate Travel | 692 million | +9% | +21% | [Operating Costs and Expenses](index=3&type=section&id=%E8%90%A5%E4%B8%9A%E6%88%90%E6%9C%AC%E4%B8%8E%E8%B4%B9%E7%94%A8) Q2 2025 Operating Costs and Expenses | Metric | Amount (RMB) | YoY Change | QoQ Change | Percentage of Net Revenue | | :--- | :--- | :--- | :--- | :--- | | Cost of Revenue | 2.8 billion | +22% | +4% | 19% | | Product Development Expenses | 3.5 billion | +17% | -1% | 24% | | Sales and Marketing Expenses | 3.3 billion | +17% | +11% | 22% | | General and Administrative Expenses | 1.1 billion | +2% | +6% | 7% | [Profit and Profitability](index=3&type=section&id=%E5%88%A9%E6%B6%A6%E4%B8%8E%E7%9B%88%E5%88%A9%E8%83%BD%E5%8A%9B) Q2 2025 Profit Metrics | Metric | Q2 2025 (RMB) | Q2 2024 (RMB) | QoQ vs Q1 2025 (RMB) | | :--- | :--- | :--- | :--- | | Net Income | 4.9 billion | 3.9 billion | 4.3 billion | | Adjusted EBITDA | 4.9 billion | 4.4 billion | 4.2 billion | | Net Income Attributable to Trip.com Group Shareholders | 4.8 billion | 3.8 billion | 4.3 billion | | Non-GAAP Net Income Attributable to Trip.com Group Shareholders | 5.0 billion | 5.0 billion | 4.2 billion | | Diluted Earnings Per Ordinary Share and Per ADS | 6.97 | 5.57 (Q2 2024) | 6.09 (Q1 2025) | | Non-GAAP Diluted Earnings Per Ordinary Share and Per ADS | 7.20 | 7.25 (Q2 2024) | 5.96 (Q1 2025) | - Income tax expense was **RMB 998 million**, a significant increase compared to Q2 2024 and the previous quarter, primarily due to subsidiary profitability, deferred tax liability changes, and fair value changes in investments[8](index=8&type=chunk) [Cash and Liquidity](index=3&type=section&id=%E7%8E%B0%E9%87%91%E5%8F%8A%E6%B5%81%E5%8A%A8%E6%80%A7) Cash and Liquidity as of June 30, 2025 | Metric | Amount (RMB) | | :--- | :--- | | Balance of cash and cash equivalents, restricted cash, short-term investments, and held-to-maturity time deposits and wealth management products | 94.1 billion | [Recent Developments and Capital Returns](index=4&type=section&id=%E8%BF%91%E6%9C%9F%E5%8F%91%E5%B1%95%E4%B8%8E%E8%B5%84%E6%9C%AC%E5%9B%9E%E6%8A%A5) Trip.com Group remains committed to delivering shareholder value and actively returning capital to investors through share repurchase programs [Share Repurchase Program](index=4&type=section&id=%E8%82%A1%E7%A5%A8%E5%9B%9E%E8%B4%AD%E8%AE%A1%E5%88%92) - As of August 27, 2025, the company repurchased approximately **7 million American Depositary Shares (ADS)** for a total consideration of approximately **$400 million** under the share repurchase program authorized in February 2025[10](index=10&type=chunk) - The Board of Directors approved a new share repurchase program in August 2025, authorizing the repurchase of up to **$5 billion** of its outstanding ordinary shares and/or ADSs[10](index=10&type=chunk) [Conference Call Information](index=4&type=section&id=%E7%94%B5%E8%AF%9D%E4%BC%9A%E8%AE%AE%E4%BF%A1%E6%81%AF) Trip.com Group management will host a conference call to discuss the results, with live webcast and replay services available - The conference call will be held on August 27, 2025, at 8:00 PM U.S. Eastern Time (August 28, 2025, at 8:00 AM Hong Kong Time)[11](index=11&type=chunk) - The call will be webcast live and replayed on https://investors.trip.com, with an archive available for 12 months[11](index=11&type=chunk) [Forward-Looking Statements and Non-GAAP Disclosures](index=5&type=section&id=%E5%89%8D%E7%9E%BB%E6%80%A7%E5%A3%B0%E6%98%8E%E4%B8%8E%E9%9D%9EGAA%E9%9C%B2) This section includes forward-looking statements regarding future performance and explains the company's Non-GAAP financial measures and their reconciliation to GAAP, providing more comparable operational data [Forward-Looking Statements](index=5&type=section&id=%E5%89%8D%E7%9E%BB%E6%80%A7%E5%A3%B0%E6%98%8E) - The announcement contains forward-looking statements subject to inherent risks and uncertainties, where actual results may differ materially from expectations[12](index=12&type=chunk) - Potential risks include economic slowdowns, travel disruptions, competitive failures, growth management failures, strategic investment risks, seasonality, infrastructure damage, loss of key personnel, and regulatory changes[12](index=12&type=chunk) [Non-GAAP Financial Measures Explanation](index=5&type=section&id=%E9%9D%9EGAA%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E8%AF%B4%E6%98%8E) - Trip.com Group provides Non-GAAP financial information, including Non-GAAP net income attributable to Trip.com Group Limited, adjusted EBITDA, adjusted EBITDA margin, and diluted earnings per ordinary share and per ADS[13](index=13&type=chunk) - Non-GAAP metrics adjust for share-based compensation expenses, fair value changes in investments and exchangeable bonds measured at fair value through profit or loss, and their income tax effects, aiming to enhance comparability of operating data across periods[13](index=13&type=chunk)[14](index=14&type=chunk) [About Trip.com Group](index=6&type=section&id=%E5%85%B3%E4%BA%8E%E6%90%BA%E7%A8%8B%E9%9B%86%E5%9B%A2) Trip.com Group is a leading global one-stop travel platform offering comprehensive products, services, and differentiated travel content through brands like Ctrip, Qunar, Trip.com, and Skyscanner - Trip.com Group Limited (NASDAQ: TCOM; HKEX: 9961) is a **leading global one-stop travel platform**[15](index=15&type=chunk) - Founded in 1999, the company listed on NASDAQ in 2003 and on HKEX in 2021[15](index=15&type=chunk) - Key operating brands include Ctrip, Qunar, Trip.com, and Skyscanner, with a mission to 'pursue the perfect trip for a better world'[15](index=15&type=chunk) [Investor Relations Contact Information](index=6&type=section&id=%E6%8A%95%E8%B5%84%E8%80%85%E5%85%B3%E7%B3%BB%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides contact information for Trip.com Group's investor relations department - Investors can contact Trip.com Group Investor Relations by phone at +86 (21) 3406 4880 X 12229 or via email at iremail@trip.com[16](index=16&type=chunk) [Financial Statements](index=7&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents Trip.com Group's unaudited consolidated balance sheets, statements of operations, and GAAP to Non-GAAP reconciliations, illustrating the company's financial position and operating results for Q2 and H1 2025 [Unaudited Consolidated Balance Sheets](index=7&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%BB%BC%E5%90%88%E8%B5%84%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) Summary of Unaudited Consolidated Balance Sheets as of June 30, 2025 (RMB in millions) | Metric | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | 112,120 | 116,516 | | Total non-current assets | 130,461 | 135,922 | | **Total Assets** | **242,581** | **252,438** | | **Liabilities** | | | | Total current liabilities | 74,010 | 87,454 | | Total non-current liabilities | 25,089 | 15,504 | | **Total Liabilities** | **99,099** | **102,958** | | Mezzanine equity | 743 | 791 | | **Total Shareholders' Equity** | **142,739** | **148,689** | | Total Liabilities, Mezzanine Equity and Shareholders' Equity | 242,581 | 252,438 | [Unaudited Consolidated Statements of Operations](index=9&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%BB%BC%E5%90%88%E5%88%A9%E6%BD%A6%E8%A1%A8) Summary of Unaudited Consolidated Statements of Operations for Q2 and H1 2025 (RMB in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenue | 14,843 | 12,772 | 28,673 | 24,677 | | Gross profit | 12,025 | 10,460 | 23,150 | 20,127 | | Operating income | 4,102 | 3,555 | 7,665 | 6,870 | | Net income | 4,880 | 3,888 | 9,194 | 8,213 | | Net income attributable to Trip.com Group Limited | 4,846 | 3,833 | 9,123 | 8,145 | | Diluted earnings per ordinary share | 6.97 | 5.57 | 13.05 | 11.93 | [Reconciliation of GAAP to Non-GAAP Results](index=11&type=section&id=GAAP%E4%B8%8E%E9%9D%9EGAA%E4%B8%9A%E7%BB%A9%E5%AF%B9%E8%B4%A6) Summary of GAAP to Non-GAAP Reconciliation for Q2 and H1 2025 (RMB in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (GAAP) | 4,880 | 3,888 | 9,194 | 8,213 | | Adjusted EBITDA | 4,880 | 4,436 | 9,127 | 8,410 | | Adjusted EBITDA margin | 33% | 35% | 32% | 34% | | Net income attributable to Trip.com Group Limited (Non-GAAP) | 5,011 | 4,985 | 9,199 | 9,040 | | Diluted earnings per ordinary share (Non-GAAP) | 7.20 | 7.25 | 13.16 | 13.24 | [GAAP to IFRS Reconciliation](index=13&type=section&id=GAAP%E4%B8%8EIFRS%E8%B0%83%E8%8A%82%E8%A1%A8) This section provides a reconciliation between Trip.com Group's US GAAP financial statements and International Financial Reporting Standards (IFRS), detailing key accounting policy differences [Reconciliation Overview](index=13&type=section&id=%E8%B0%83%E8%8A%82%E8%A1%A8%E6%A6%82%E8%BF%B0) - The unaudited interim financial statements are prepared under US GAAP, with a reconciliation provided for differences from IFRS accounting policies[23](index=23&type=chunk)[24](index=24&type=chunk) - The reconciliation has been subject to a limited assurance review by PricewaterhouseCoopers in accordance with International Standard on Assurance Engagements 3000 (Revised)[23](index=23&type=chunk) [Consolidated Statements of Operations Adjustments](index=14&type=section&id=%E7%BB%BC%E5%90%88%E5%88%A9%E6%BD%A6%E8%A1%A8%E8%B0%83%E6%95%B4) - For H1 2025, GAAP net income was **RMB 9,194 million**, adjusted to **RMB 10,417 million** under IFRS, primarily due to fair value changes in convertible bonds[25](index=25&type=chunk) - For H1 2024, GAAP net income was **RMB 8,213 million**, adjusted to **RMB 9,002 million** under IFRS[26](index=26&type=chunk) [Consolidated Balance Sheets Adjustments](index=16&type=section&id=%E7%BB%BC%E5%90%88%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E8%B0%83%E6%95%B4) - As of June 30, 2025, GAAP total assets were **RMB 252,438 million**, adjusted to **RMB 252,468 million** under IFRS, with key differences in classification and measurement of intangible assets, investments, and convertible bonds[27](index=27&type=chunk) - As of December 31, 2024, GAAP total assets were **RMB 242,581 million**, adjusted to **RMB 242,599 million** under IFRS[28](index=28&type=chunk) [Basis of Preparation and Accounting Policy Differences](index=18&type=section&id=%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80%E4%B8%8E%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%B7%AE%E5%BC%82) - Key accounting policy differences between GAAP and IFRS include: share-based compensation (straight-line vs graded vesting), leases (straight-line lease expense vs effective interest method interest expense), equity securities without readily determinable fair value (cost less impairment vs FVTPL), available-for-sale debt investments (accumulated other comprehensive income vs FVTPL), convertible bonds (amortized cost vs FVTPL), and software classification (property, equipment and software vs intangible assets)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)