[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) [Overall Performance Overview](index=1&type=section&id=Overall%20Performance%20Overview) Trip.com Group reported strong Q2 2025 financial results, with net revenue increasing 16% year-over-year and 7% quarter-over-quarter, driven by robust travel demand - Executive Chairman James Liang emphasized travel as a key driver for national growth and global engagement, focusing on long-term industry growth and strategic investments in innovation, partnership development, and inbound travel expansion[2](index=2&type=chunk) - CEO Jane Sun noted strong momentum across all segments, with a strategy to capture growing demand from all demographics, particularly inbound travel, and enhance service capabilities for global travelers[2](index=2&type=chunk) [International Business Growth](index=2&type=section&id=International%20Business%20Growth) The company's international businesses demonstrated strong growth across all segments in Q2 2025, with overall reservations on its international OTA platform increasing by over 60% year-over-year and inbound travel bookings surging by over 100% year-over-year - International businesses sustained strong growth across all segments during Q2 2025[21](index=21&type=chunk) International Business Growth (Q2 2025 YoY) | Metric | Growth | | :----------------------------------- | :------- | | Overall reservations (international OTA) | >60% | | Inbound travel bookings | >100% | | Outbound hotel & air ticket bookings | >120% of pre-COVID (2019) | [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) [Net Revenue Performance](index=1&type=section&id=Net%20Revenue%20Performance) Trip.com Group's net revenue for Q2 2025 reached RMB14.8 billion (US$2.1 billion), marking a 16% year-over-year increase and a 7% quarter-over-quarter increase, primarily fueled by strong travel demand Net Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :--------- | :------------ | :------------ | :--------- | :--------- | | Net Revenue | 14,843 | 2,072 | +16% | +7% | - The increase was primarily driven by stronger travel demand, particularly during holiday periods[3](index=3&type=chunk) [Accommodation Reservation Revenue](index=1&type=section&id=Accommodation%20Reservation%20Revenue) Accommodation Reservation Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :------------------------ | :------------ | :------------ | :--------- | :--------- | | Accommodation Reservation | 6,225 | 869 | +21% | +12% | - Primarily driven by an increase in accommodation reservations and stronger travel demand, especially during holiday periods[4](index=4&type=chunk) [Transportation Ticketing Revenue](index=1&type=section&id=Transportation%20Ticketing%20Revenue) Transportation Ticketing Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :---------------------- | :------------ | :------------ | :--------- | :--------- | | Transportation Ticketing | 5,397 | 753 | +11% | Flat | - Primarily driven by an increase in transportation reservations[5](index=5&type=chunk) [Packaged-Tour Revenue](index=1&type=section&id=Packaged-Tour%20Revenue) Packaged-Tour Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :--------------- | :------------ | :------------ | :--------- | :--------- | | Packaged-Tour | 1,079 | 151 | +5% | +14% | - Primarily driven by an increase in packaged-tour reservations and stronger travel demand, particularly during holiday periods[6](index=6&type=chunk) [Corporate Travel Revenue](index=1&type=section&id=Corporate%20Travel%20Revenue) Corporate Travel Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :-------------- | :------------ | :------------ | :--------- | :--------- | | Corporate Travel | 692 | 97 | +9% | +21% | - Primarily driven by an increase in corporate travel reservations[7](index=7&type=chunk) [Operating Expenses](index=1&type=section&id=Operating%20Expenses) Total operating expenses for Q2 2025 increased to RMB7.9 billion, with cost of revenue, product development, and sales & marketing expenses all showing year-over-year increases, generally in line with revenue fluctuations and strategic investments Total Operating Expenses (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :-------------------- | :------------ | :------------ | :--------- | :--------- | | Total Operating Expenses | 7,923 | 1,106 | +15% | +5% | [Cost of Revenue](index=1&type=section&id=Cost%20of%20Revenue) Cost of Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | % of Net Revenue | | :------------- | :------------ | :------------ | :--------- | :--------- | :--------------- | | Cost of Revenue | 2,818 | 393 | +22% | +4% | 19% | [Product Development Expenses](index=1&type=section&id=Product%20Development%20Expenses) Product Development Expenses (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | % of Net Revenue | | :---------------------- | :------------ | :------------ | :--------- | :--------- | :--------------- | | Product Development Expenses | 3,500 | 489 | +17% | -1% | 24% | - Primarily due to the increase in product development personnel related expenses[9](index=9&type=chunk) [Sales and Marketing Expenses](index=1&type=section&id=Sales%20and%20Marketing%20Expenses) Sales and Marketing Expenses (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | % of Net Revenue | | :-------------------- | :------------ | :------------ | :--------- | :--------- | :--------------- | | Sales and Marketing Expenses | 3,326 | 464 | +17% | +11% | 22% | - Primarily due to the increase in expenses relating to sales and marketing promotion activities[10](index=10&type=chunk) [General and Administrative Expenses](index=1&type=section&id=General%20and%20Administrative%20Expenses) General and Administrative Expenses (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | % of Net Revenue | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | :--------------- | | General and Administrative Expenses | 1,097 | 153 | +2% | +6% | 7% | [Profitability and Earnings](index=1&type=section&id=Profitability%20and%20Earnings) Trip.com Group reported strong profitability in Q2 2025, with net income increasing significantly year-over-year and quarter-over-quarter, and adjusted EBITDA also showing healthy growth Income from Operations (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :----------------- | :------------ | :------------ | :--------- | :--------- | | Income from Operations | 4,102 | 573 | +15% | +15% | [Net Income and Adjusted EBITDA](index=1&type=section&id=Net%20Income%20and%20Adjusted%20EBITDA) Net Income and Adjusted EBITDA (Q2 2025) | Metric | RMB (million) | USD (million) | Q2 2024 (RMB) | Q1 2025 (RMB) | YoY Change | QoQ Change | | :-------------- | :------------ | :------------ | :------------ | :------------ | :--------- | :--------- | | Net Income | 4,880 | 681 | 3,888 | 4,314 | +25% | +13% | | Adjusted EBITDA | 4,880 | 680 | 4,436 | 4,247 | +10% | +15% | [Net Income Attributable to Trip.com Group Limited](index=1&type=section&id=Net%20Income%20Attributable%20to%20Trip.com%20Group%20Limited) Net Income Attributable to Trip.com Group Limited (Q2 2025) | Metric | RMB (million) | USD (million) | Q2 2024 (RMB) | Q1 2025 (RMB) | YoY Change | QoQ Change | | :------------------------------------------ | :------------ | :------------ | :------------ | :------------ | :--------- | :--------- | | Net Income Attributable to Trip.com Group Limited | 4,846 | 676 | 3,833 | 4,277 | +26% | +13% | | Non-GAAP Net Income Attributable to Trip.com Group Limited | 5,011 | 699 | 4,985 | 4,188 | +1% | +20% | [Earnings Per Share (EPS)](index=1&type=section&id=Earnings%20Per%20Share%20%28EPS%29) Earnings Per Share (Q2 2025) | Metric | RMB | USD | Q2 2024 (RMB) | Q1 2025 (RMB) | YoY Change | QoQ Change | | :-------------------------------- | :---- | :---- | :------------ | :------------ | :--------- | :--------- | | Diluted EPS (per ordinary share/ADS) | 6.97 | 0.97 | 5.57 | 6.09 | +25% | +14% | | Non-GAAP Diluted EPS (per ordinary share/ADS) | 7.20 | 1.01 | 7.25 | 5.96 | -1% | +21% | [Financial Position](index=1&type=section&id=Financial%20Position) [Cash and Investments](index=1&type=section&id=Cash%20and%20Investments) As of June 30, 2025, Trip.com Group maintained a strong liquidity position with RMB94.1 billion (US$13.1 billion) in cash, cash equivalents, restricted cash, short-term investments, and held-to-maturity time deposits and financial products Cash and Investments (as of June 30, 2025) | Metric | RMB (billion) | USD (billion) | | :-------------------------------------------------------------------------------- | :------------ | :------------ | | Cash, cash equivalents, restricted cash, short-term investment, and held to maturity time deposit and financial products | 94.1 | 13.1 | [Recent Developments](index=1&type=section&id=Recent%20Developments) [Share Repurchase Program](index=1&type=section&id=Share%20Repurchase%20Program) Trip.com Group continued its capital return policy by repurchasing 7 million ADSs for US$400 million under its existing program, and the Board authorized a new share repurchase program of up to US$5 billion - Repurchased **7 million ADSs** for a total gross consideration of **US$400 million** under the existing share repurchase program as of August 27, 2025[17](index=17&type=chunk) - The Board authorized a new share repurchase program of up to an aggregate of **US$5 billion** of its outstanding ordinary shares and/or ADSs in August 2025[18](index=18&type=chunk) [Conference Call Information](index=1&type=section&id=Conference%20Call%20Information) [Conference Call Details](index=1&type=section&id=Conference%20Call%20Details) Trip.com Group will host a conference call on August 27, 2025, at 8:00 PM U.S. Eastern Time to discuss the financial results, with webcast and replay available on its investor relations website - Conference call scheduled for August 27, 2025, at 8:00 PM U.S. Eastern Time (August 28, 2025, 8:00 AM Hong Kong Time)[19](index=19&type=chunk) - Live webcast and replay available at https://investors.trip.com, with replay archived for twelve months[19](index=19&type=chunk) - Participants must pre-register to join the call[19](index=19&type=chunk)[20](index=20&type=chunk) [Forward-Looking Statements & Non-GAAP Measures](index=2&type=section&id=Forward-Looking%20Statements%20%26%20Non-GAAP%20Measures) [Safe Harbor Statement](index=2&type=section&id=Safe%20Harbor%20Statement) The report includes forward-looking statements subject to inherent risks and uncertainties, as per the U.S. Private Securities Litigation Reform Act of 1995, and actual results may differ materially - The announcement contains forward-looking statements made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995[21](index=21&type=chunk) - Forward-looking statements involve inherent risks and uncertainties, and actual results could differ materially due to factors such as economic downturns, industry disruptions, competition, and regulatory changes[22](index=22&type=chunk) [About Non-GAAP Financial Measures](index=2&type=section&id=About%20Non-GAAP%20Financial%20Measures) Trip.com Group utilizes non-GAAP financial measures to supplement GAAP consolidated financial statements, excluding specific items to provide a clearer view of operating results and aid future planning - Non-GAAP financial measures (adjusted net income, adjusted EBITDA, adjusted diluted EPS) are used to supplement GAAP statements[23](index=23&type=chunk) - These measures exclude share-based compensation charges, fair value changes of equity securities investments, and exchangeable senior notes, and their tax effects[23](index=23&type=chunk)[24](index=24&type=chunk) - Management believes non-GAAP measures facilitate a better understanding of operating results and aid in planning and forecasting, but they are not a substitute for GAAP results[23](index=23&type=chunk)[24](index=24&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) [About Trip.com Group Limited](index=2&type=section&id=About%20Trip.com%20Group%20Limited) Trip.com Group Limited is a leading global one-stop travel platform, founded in 1999, operating brands like Ctrip, Qunar, Trip.com, and Skyscanner - Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) is a leading global one-stop travel platform[26](index=26&type=chunk) - Operates under a portfolio of brands including Ctrip, Qunar, Trip.com, and Skyscanner[26](index=26&type=chunk) - Mission is 'to pursue the perfect trip for a better world'[26](index=26&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Unaudited Consolidated Balance Sheets](index=2&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) The unaudited consolidated balance sheets provide a snapshot of the company's financial position as of December 31, 2024, and June 30, 2025, detailing assets, liabilities, and shareholders' equity Total Assets (as of June 30, 2025) | Metric | RMB (million) | USD (million) | | :---------- | :------------ | :------------ | | Total Assets | 252,438 | 35,239 | Total Liabilities (as of June 30, 2025) | Metric | RMB (million) | USD (million) | | :------------- | :------------ | :------------ | | Total Liabilities | 102,958 | 14,373 | Total Shareholders' Equity (as of June 30, 2025) | Metric | RMB (million) | USD (million) | | :---------------------- | :------------ | :------------ | | Total Shareholders' Equity | 148,689 | 20,756 | [Unaudited Consolidated Statements of Income](index=3&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Income) The unaudited consolidated statements of income present the company's revenues, expenses, and net income for the three and six months ended June 30, 2025, and comparative periods Net Revenue (Six Months Ended June 30, 2025) | Metric | RMB (million) | USD (million) | H1 2024 (RMB) | YoY Change | | :--------- | :------------ | :------------ | :------------ | :--------- | | Net Revenue | 28,673 | 4,003 | 24,677 | +16% | Net Income (Six Months Ended June 30, 2025) | Metric | RMB (million) | USD (million) | H1 2024 (RMB) | YoY Change | | :--------- | :------------ | :------------ | :------------ | :--------- | | Net Income | 9,194 | 1,283 | 8,213 | +12% | [Unaudited Reconciliation of GAAP and Non-GAAP Results](index=4&type=section&id=Unaudited%20Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section provides a detailed reconciliation between GAAP and non-GAAP financial measures for the three and six months ended June 30, 2025, and comparative periods, illustrating the adjustments made for items like share-based compensation and fair value changes Non-GAAP Net Income Attributable to Trip.com Group Limited (Six Months Ended June 30, 2025) | Metric | RMB (million) | USD (million) | H1 2024 (RMB) | YoY Change | | :------------------------------------------ | :------------ | :------------ | :------------ | :--------- | | Non-GAAP Net Income Attributable to Trip.com Group Limited | 9,199 | 1,283 | 9,040 | +2% | Non-GAAP Diluted Income Per ADS (Six Months Ended June 30, 2025) | Metric | RMB | USD | H1 2024 (RMB) | YoY Change | | :---------------------------- | :---- | :---- | :------------ | :--------- | | Non-GAAP Diluted Income Per ADS | 13.16 | 1.84 | 13.24 | -0.6% |

Core Insights - Trip.com Group Limited reported strong financial results for the second quarter of 2025, with net revenue reaching RMB14.8 billion (US$2.1 billion), a 16% increase year-over-year and a 7% increase from the previous quarter, driven by robust travel demand [3][20]. Financial Performance - Accommodation reservation revenue was RMB6.2 billion (US$869 million), up 21% year-over-year and 12% from the previous quarter, attributed to increased reservations [4]. - Transportation ticketing revenue reached RMB5.4 billion (US$753 million), an 11% increase from the same period in 2024, but flat compared to the previous quarter [5]. - Packaged-tour revenue was RMB1.1 billion (US$151 million), reflecting a 5% increase year-over-year and a 14% increase from the previous quarter [6]. - Corporate travel revenue increased by 9% year-over-year to RMB692 million (US$97 million) and surged 21% from the previous quarter [7]. - The company's net income for the second quarter was RMB4.9 billion (US$681 million), compared to RMB3.9 billion in the same period of 2024 [13]. Cost and Expenses - Cost of revenue increased by 22% to RMB2.8 billion (US$393 million) year-over-year, aligning with revenue growth [8]. - Product development expenses rose by 17% to RMB3.5 billion (US$489 million), primarily due to increased personnel costs [9]. - Sales and marketing expenses also increased by 17% to RMB3.3 billion (US$464 million), driven by promotional activities [10]. - General and administrative expenses saw a modest increase of 2% to RMB1.1 billion (US$153 million) [11]. Strategic Initiatives - The company announced a new share repurchase program, allowing for the repurchase of up to US$5 billion of its outstanding shares [18]. - Trip.com Group emphasized its commitment to innovation and partnership development to capture growing travel demand, particularly in inbound travel [2]. Market Trends - International business segments showed strong growth, with overall reservations on the international OTA platform increasing by over 60% year-over-year and inbound travel bookings surging by over 100% [20].

Group 1 - Ctrip (TCOM.US) stock rose by 1.25% in pre-market trading ahead of its earnings report scheduled for August 27 [1] - Analysts expect Ctrip to achieve revenue of 14.639 billion yuan in Q2 2025, representing a year-on-year increase of 14.62% [1] - The expected earnings per share for Ctrip is 5.369 yuan, which reflects a year-on-year decrease of 3.61% [1] Group 2 - Ctrip's recent report on the summer travel market for 2025 indicates that car rentals have become a popular choice for family trips, with orders for family car rentals increasing by 77% year-on-year during this summer [1] - The top cities for domestic self-driving trips this summer include Chengdu, Urumqi, Sanya, Xining, Haikou, Guiyang, Dali, Shanghai, Beijing, and Guangzhou [1]

Group 1: Summer Travel Trends - The summer travel season for 2025 has concluded, with nearly half of domestic tourists opting for interprovincial long-distance travel, reflecting a more rational approach to travel spending [1] - Jiangsu province saw a 14% year-on-year increase in hotel bookings, with major sources of visitors coming from Shanghai, Beijing, Hangzhou, Hefei, and Shenzhen [1] - Popular attractions in Jiangsu included Suzhou's Humble Administrator's Garden, Yangzhou's Slender West Lake, and Nanjing's Niushou Mountain Cultural Tourism Area [1] Group 2: Cooling Travel Preferences - The "cooling travel" trend emerged due to record high temperatures, with destinations like Weihai and Guilin becoming popular for their average temperatures below 30°C [2] - The "chartered car + cooling vacation" model gained traction, with orders for popular cooling destinations in Guizhou and Yunnan increasing by over 80% [2] - Lesser-known cooling destinations such as Chifeng in Inner Mongolia and Dandong in Liaoning saw order volumes increase by over 200% [2] Group 3: Impact of Media on Tourism - The popularity of the TV series "A Mortal's Journey to Immortality" significantly boosted tourism in Xinjiang's Nalati Scenic Area, with a 68% increase in interest over the past month [4] - Xinjiang's tourism orders rose by over 20% during the summer, with Urumqi experiencing an 11% growth [4] - The animated film "The Little Monster of Langlang Mountain" contributed to a 43% increase in ticket sales for attractions in Datong, with overall tourism orders rising by over 40% [5] Group 4: Outdoor Activities and Family Travel - There was a more than 100% increase in searches for outdoor activities such as camping and hiking, with rafting projects particularly popular [7] - Rafting orders in Jiangxi's Dajue Mountain increased fourfold, while nighttime rafting in Jiangsu's Changzhou also gained popularity [7] - Families remained the core group for summer travel, accounting for 35% of related orders, with car rental and self-driving travel orders rising by 77% [7] Group 5: Inbound and Outbound Travel Dynamics - Inbound travel remained strong, with Shanghai, Shenzhen, Guangzhou, Beijing, and Chengdu as the top five destinations [9] - Major source countries for inbound tourists included South Korea, the USA, Japan, Thailand, and Russia, with museum ticket sales increasing by nearly 20% year-on-year [9] - Outbound travel destinations with cooling attributes included Japan, Thailand, South Korea, Hong Kong, and Malaysia, with hotel orders for Okinawa and Jeju Island increasing by 98% and 44%, respectively [12] Group 6: Upcoming Travel Promotions - With a rational decline in summer travel prices, the upcoming National Day and Mid-Autumn Festival period is expected to see a surge in hotel prices, rising by 30% to 50% compared to regular days [14] - Ctrip has launched the "919 Global Travel Festival," collaborating with over 4,000 travel brands to offer promotional activities [14] - Ctrip also introduced a guarantee for hotel bookings in ten countries, allowing users to receive a full refund if their visa application is denied [14]

Core Insights - The report indicates that Zhengzhou has emerged as a top destination for domestic surrounding tourism, ranking in the "Top 9 Domestic Surrounding Travel Destinations" due to its stable tourist attraction and diverse cultural offerings [1][2] - The overall tourism market in Henan province has shown significant growth, with various cities reporting impressive increases in hotel bookings and tourist activities during the summer season [4] Group 1: Zhengzhou's Tourism Performance - Zhengzhou's hotel bookings increased by 4% year-on-year during the summer, highlighting its ability to attract surrounding tourists [2] - Major sources of tourists to Zhengzhou include the Beijing-Tianjin-Hebei region and local cities, with Beijing, Shanghai, and several cities in Henan being the top contributors [2] - Popular tourist attractions in Zhengzhou include Henan Opera City, Shaolin Temple, and Zhengzhou Silver Base Animal Kingdom, catering to diverse cultural and family-oriented experiences [2][3] Group 2: Family and Self-Driving Tourism Trends - Family-oriented travel has become a significant driver of consumption in Zhengzhou, with 35% of summer orders being for family trips, and self-driving rentals increasing by 77% year-on-year [3] - Zhengzhou has become a popular self-driving destination alongside cities like Chengdu and Sanya, supported by its rich family-friendly tourism products [3] - Local attractions are enhancing family experiences by extending operating hours and adding interactive projects, aligning with the trend of providing high-value travel experiences [3] Group 3: Henan Province's Overall Tourism Growth - Other cities in Henan, such as Luoyang and Kaifeng, have also reported substantial growth in hotel bookings, with Luoyang seeing a 14% increase and Kaifeng experiencing a remarkable 66% rise [4] - The province's tourism development aligns with national trends, with a focus on cooler destinations and cultural sites attracting visitors [4] - Cultural IPs like Longmen Grottoes and Qingming Riverside Landscape Garden are drawing cultural enthusiasts, contributing to the province's tourism appeal [4] Group 4: Inbound and Outbound Tourism Trends - The report highlights a dual increase in inbound and outbound tourism, with a 30% year-on-year rise in the number of foreign visitors entering China [5] - Popular outbound destinations include Japan, Thailand, and South Korea, with significant growth in hotel bookings for these locations [5] - Zhengzhou is positioned to leverage its cultural IP and transportation advantages to enhance its inbound tourism potential [8]

Group 1 - The overall demand for summer travel in 2025 is strong, with significant interest in cooling trips, cultural tours, and family educational travel [1][2] - The average order price for travel has increased significantly, with a year-on-year growth of 9.9% [2] - Self-driving travel remains popular, with a notable increase in car rental orders, which have grown by 77% for family trips [4] Group 2 - The inbound tourism market, typically a low season during summer, has shown remarkable growth this year, with a 50% increase in visitors compared to the previous year [6] - Popular inbound destinations include Shanghai, Shenzhen, Guangzhou, Beijing, and Chengdu, with major source countries being South Korea, the USA, Japan, Thailand, and Russia [6] - The outbound tourism market is also experiencing strong growth, with Japan, Thailand, South Korea, Hong Kong, and Malaysia being the top destinations [6][7] Group 3 - The trend of family-oriented travel is prominent, with theme parks like Shanghai Disneyland and Beijing Universal Studios being highly favored [4] - The demand for unique travel experiences and all-inclusive packages is rising, with new destinations and activities gaining quick acceptance among travelers [2][4] - The search volume for outdoor activities such as camping and hiking has increased by over 100% this summer [3]

Group 1 - Ctrip Group (code: 9961.HK/TCOM) is a leading one-stop travel service platform in China, covering over 200 countries globally and becoming the third-largest online travel company by market capitalization [1][4][7] - The domestic tourism business is the foundation, with a leading market share and stable operations, supported by a solid supply chain of over 750,000 hotels across more than 600 cities in China [1][9][18] - The OTA penetration rate in China continues to rise, reaching 51.5% in 2024, driven by the growing online consumption habits of younger consumers [13][15] Group 2 - Ctrip's outbound tourism business is a significant growth driver, with a market share of 48.3% in outbound travel as of July 2024, benefiting from a strong service model and rich supply chain resources [2][26][37] - The company effectively addresses common pain points for Chinese travelers abroad through localized services, including a 24/7 Chinese-speaking customer service center [28][30][44] - Ctrip's early resource layout in outbound tourism has established a competitive advantage, with a diverse range of products and partnerships enhancing its market position [3][34][39] Group 3 - Ctrip's overseas business is expected to be a key growth driver, with projected revenue of 7.72 billion yuan in 2024, reflecting a year-on-year increase of 31.0% [2][9][37] - The company aims to leverage its one-stop service model and strong app presence to expand internationally, particularly in the Asia-Pacific region [4][39][49] - Ctrip's strategic focus on inbound tourism is expected to enhance its global customer acquisition and retention, supported by a comprehensive service offering [45][49]

Core Insights - The summer of 2023 has seen a significant increase in self-driving travel, with car rentals becoming a mainstream choice for travelers [1][2] - The "self-driving +" trend is reshaping travel and tourism, with a notable rise in both domestic and outbound self-driving bookings [1] Group 1: Domestic Self-Driving Trends - Ctrip's report indicates a 15% year-on-year increase in per capita car rental spending, with a shift in user demographics, vehicle preferences, and service models [1] - Popular domestic routes include cities like Urumqi, Chengdu, and Sanya, with emerging routes such as the Anhui Southern Tibet Line and Qinghai Lake Loop gaining attention [1] - The average duration of domestic self-driving trips has increased by 9.6%, with average spending rising by 8% [1][2] Group 2: Outbound Self-Driving Trends - Chinese tourists are increasingly opting for self-driving trips in Europe, with notable growth in orders to Italy (6.8%), France (12.9%), Spain (5.12%), and Switzerland (6.43%) [1] - There is a remarkable 58% year-on-year increase in self-driving demand in Africa, particularly in South Africa [1] Group 3: User Demographics and Preferences - The self-driving user base spans all age groups, with family orders increasing by 77% and a 34% rise in inquiries for child seats [2] - The "post-00s" generation has seen a 24% increase in orders, while new customers among graduates have grown by 30% [2] - The silver-haired demographic (55 years and older) accounts for over 18% of orders, favoring longer trips to regions like Xinjiang and Yunnan [2] Group 4: Vehicle Preferences - Mid to high-end vehicles are in high demand, with large space models making up 59% of orders [3] - Popular models include the Buick GL8, Tank 300, and various electric and smart vehicles like the Model Y and BMW i3, with a 19% year-on-year growth in electric vehicle orders [3] - Ctrip's "Worry-Free Rental" service has seen a 235% increase in orders, particularly favored by family travelers [3]

Core Insights - The report indicates a sustained interest in self-driving tours during the summer of 2025, with significant increases in both domestic and outbound self-driving rental bookings [1] - Average car rental spending per person has risen by 15% year-on-year [1] Company Summary - Ctrip Car Rental has released a report highlighting trends in self-driving tourism for the summer of 2025 [1] Industry Summary - The self-driving tourism sector is experiencing a notable growth in demand, reflecting a robust recovery and consumer interest in travel [1]

Market Overview - Global markets showed mixed performance, with the Hang Seng Index closing at 25,830, up 1.94% for the day and 28.76% year-to-date [1] - The A-share market is entering a second bullish phase, with significant increases in client margin sizes at securities firms and a notable rise in ETF investments, reaching $681 billion, surpassing Japan [3][4] Company Analysis Pinduoduo (PDD US) - Pinduoduo reported Q2 2025 revenue growth of 7% year-on-year, reaching 104 billion RMB, in line with expectations, driven by online marketing services [5] - Non-GAAP net profit decreased by 5% to 32.7 billion RMB, but exceeded market expectations by 46%, indicating strong operational performance [5] - The target price has been raised by 9% to $146.30, reflecting a positive outlook despite ongoing investments in platform ecosystem enhancement [5] Jiumaojiu (9922 HK) - Jiumaojiu's revenue for the first half of FY25 decreased by 10% to 2.75 billion RMB, slightly below market expectations [9] - The company anticipates closing 40 to 50 additional stores in the second half of FY25, leading to a total of approximately 100 closures for the year [6] - Despite challenges, there are positive signs of stabilization in same-store sales, with a potential rebound expected from store renovations [6][9] ZhongAn Online (6060 HK) - ZhongAn Online's net profit for the first half of FY25 surged by 11.04 times to 668 million RMB, significantly exceeding market expectations [10] - The property and casualty insurance segment saw a 9.3% increase in total premiums, driven by substantial growth in health and auto insurance [10] - The target price has been raised to 23 HKD, reflecting improved profitability and operational efficiency [10] Greentown Service (2869 HK) - Greentown Service reported a 22.6% increase in net profit for the first half of FY25, with total revenue growing by 6.1% [12] - The company has successfully improved operational efficiency, leading to enhanced profit margins despite industry pressures [12][13] - The target price has been adjusted to 6.61 HKD, based on a revised earnings forecast and valuation adjustments [12][15] Baker Hughes (2149 HK) - Baker Hughes achieved a revenue of 292 million RMB in the first half of FY25, a slight increase from the previous year, maintaining strong profitability with a gross margin of 51.8% [18] - The company continues to expand its product offerings and remains a core recommendation in the semiconductor sector [18][19] - The target price remains at 93 HKD, reflecting confidence in long-term growth prospects [19] Tongda Group (698 HK) - Tongda Group's net profit for the first half of FY25 increased by 394%, driven by reduced financial costs and improved operational efficiency [20] - The company is expected to benefit from upgrades in its main business and expansion in its subsidiary's product lines [20] - The target price has been raised to 0.135 HKD, reflecting improved earnings visibility [20]