Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $1.8 billion, with adjusted EBITDA showing a loss of $325 million, an improvement from a loss of $567 million in the prior year, resulting in a 9% margin improvement year over year [33] - Depreciation per unit (DPU) for the quarter was $353, a 45% decrease year over year, with expectations to drop below $300 in Q2 2025 [35][36] - Direct operating expenses (DOE) per day decreased by 4% quarter over quarter and 1% year over year on a volume-adjusted basis [36] Business Line Data and Key Metrics Changes - The fleet was down 8% year over year, with a focus on tighter fleet management to capitalize on strong residual values [24][44] - Retail car sales achieved record performance, positively impacting depreciation per unit [18] - The company is prioritizing retail as the primary car selling channel, enhancing net margins through better management of reconditioning costs [19] Market Data and Key Metrics Changes - Overall demand remains solid, particularly in leisure segments, while corporate and government segments are experiencing moderation [27][64] - The average selling price through the retail channel strengthened in March, indicating a positive trend in the retail market [18] - The MMR Rental Car Index for April was up 8%, reflecting rising residual values in the wholesale market [58] Company Strategy and Development Direction - The company is focused on disciplined fleet management, revenue optimization, and rigorous cost management as part of its transformation strategy [9][22] - The strategy includes a shift towards a younger fleet, with over 70% of the core U.S. RAC fleet now 12 months old or newer [11] - The company aims to leverage technology partnerships to enhance fleet management and customer experience [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges potential macroeconomic headwinds but remains confident in the company's ability to navigate uncertainties [15][22] - The company expects to achieve a full-year EBITDA margin in the low single digits, with a target of over $1 billion in EBITDA by 2026 [45][46] - Management is optimistic about the future, citing strong demand in leisure and the potential for rising residual values [48] Other Important Information - The company amended its revolving credit facility, extending the maturity date and maintaining access to $2 billion until June 2026 [38] - The company is pursuing various transactions to optimize liquidity, including an ATM equity offering to start deleveraging [42][41] Q&A Session Summary Question: Can you discuss the fleet situation and residual values? - Management indicated that while there was temporary overfleeing at the local market level, overall fleet management remains tight, with a focus on optimizing pricing and utilization [54][55] - Residual values are rising, with retail sales skewed towards higher residuals, and the wholesale market showing quick increases [58] Question: How is demand geographically and what is the impact of seasonality? - Demand is moderating in corporate and government segments, but leisure bookings are up year over year, with normal seasonal demand expected as summer approaches [64] Question: What are the fleet activities in April and May? - The company continues to take deliveries throughout the year, with a focus on model year 2025 vehicles and maintaining flexibility in fleet management [68] Question: How do you balance cost-cutting with revenue generation? - Management emphasized the importance of customer experience alongside cost control, noting improvements in Net Promoter Scores and the use of technology to enhance service [75][78] Question: What is the outlook for depreciation and fleet value? - The company expects DPU to remain below $300, with rising residual values contributing positively to fleet economics [101][103]

Core Viewpoint - The incident highlights issues with automatic deductions by car rental company Ehi Car Rental, where customers were charged for violations from years prior without proper notification or evidence [1][10]. Group 1: Incident Overview - On May 6, 2025, a customer named Mr. Xie discovered an automatic deduction of 1,098.42 yuan from his account by Ehi Car Rental, related to a violation from five years ago [1][2]. - Mr. Xie was informed by customer service that the deduction was due to a traffic violation incurred during a rental in 2020, but he did not receive any proof of this claim [4][6]. Group 2: Customer Experience - Mr. Xie initially thought his credit card was compromised and faced difficulties reaching customer service, ultimately receiving vague responses regarding the deduction [2][4]. - After further inquiry, he was told that the violation was linked to a rental in April 2020, but he had already settled the fine at that time [4][6]. Group 3: Company Response - Ehi Car Rental acknowledged that there were issues with their system following an upgrade, which led to the erroneous deductions without prior notification [10]. - The company has since refunded the deducted amounts to both Mr. Xie and another customer, Mr. Du, who experienced a similar issue [10][7]. Group 4: Legal and Regulatory Context - Legal experts indicated that the company should have obtained authorization from customers before processing any violation-related deductions, as the statute of limitations for traffic violations is two years [12]. - The lack of notification and failure to provide documentation for the deductions were deemed violations of consumer rights, including the right to be informed and the right to property [12].

Domestic News - The Ministry of Industry and Information Technology (MIIT) is proposing new regulations to enhance safety standards for electric vehicle door handles, addressing issues such as insufficient strength and potential safety risks in emergency situations [2] - The sales revenue from the consumption of old products in exchange for new ones is expected to exceed 1.3 trillion yuan in 2024, which will significantly boost consumer spending and support the automotive market [3] - Zeekr Energy and GAC Energy have launched a bidirectional interconnection cooperation for charging networks, aiming to create a comprehensive smart energy ecosystem [4] - SAIC-GM-Wuling plans to introduce solid-state batteries in vehicles by 2027, indicating progress in battery technology [5] - iFlytek and Chery Automobile have established a joint venture focused on developing intelligent audio systems for Chery's vehicle lineup [6] - CATL has unveiled a 9MWh ultra-large capacity energy storage system, TENER Stack, which boasts a 50% increase in energy density and a 45% improvement in space utilization compared to traditional systems [7] - Baidu Apollo and Shenzhou Car Rental have announced a partnership to launch the world's first autonomous vehicle rental service [8] - Leche Automobile Supermarket has opened in Chengdu, integrating various retail formats to transform the automotive sales model [9] Foreign News - The UK and the US have reached an agreement on tariff trade terms, with the UK making concessions on imports of US agricultural products in exchange for reduced tariffs on UK car exports [11] - In April, South Korea registered 21,495 new imported cars, a slight decrease of 0.3% year-on-year, while the cumulative registration for the year reached 82,152 vehicles, a 7.9% increase compared to the previous year [12] - Mitsubishi Motors plans to launch a new electric crossover vehicle in the US and Canada in 2026, marking its first new model in North America in seven years [13] - Mercedes-Benz will expand its production lineup in Alabama starting in 2027, focusing on a "core model" tailored to American consumer preferences [14] Commercial Vehicles - DeepWay has launched two new models of electric heavy-duty trucks, featuring advanced self-developed power systems and L2-level driver assistance [15] - Yunnan Province has announced a plan to update transportation equipment, aiming to retire over 2,600 old trucks and purchase more than 150 new energy cold chain delivery vehicles by 2025 [16] - Jiangxi and Hebei provinces have issued subsidy notifications for the scrapping of old trucks, with potential subsidies reaching up to 140,000 yuan for replacing heavy-duty vehicles [17] - New Asia Technology has established its China headquarters in Shanghai, focusing on the manufacturing of components for new energy commercial vehicles [18]

Core Viewpoint - Shenzhou Car Rental has launched a month-long "Dirty Must Compensate" service quality initiative starting May 9, aimed at significantly improving vehicle cleanliness standards in the rental industry [1][3] Group 1: Service Quality Initiative - The initiative includes a strict compensation mechanism where users can receive three times the vehicle preparation fee if they find the vehicle does not meet cleanliness standards [1][3] - The program is designed to ensure that every user enjoys a clean and comfortable vehicle experience upon pickup [1][3] Group 2: Operational Standards - Shenzhou Car Rental operates the largest direct rental platform in China with a fleet of nearly 160,000 vehicles, utilizing extensive user research to establish a rigorous vehicle preparation process [3] - Each vehicle must undergo comprehensive, standardized inspections covering exterior paint, interior cleanliness, and functional equipment before being released [3] Group 3: User Engagement and Feedback - During the service quality month, users can report any cleanliness issues within 10 minutes of vehicle pickup through a designated feedback channel, and if confirmed, they will receive the compensation while continuing to use the vehicle [3] - The compensation promise applies to all vehicle models and is implemented across 6,600 direct outlets nationwide, including high-traffic areas like train stations and airports [3] Group 4: Industry Leadership - Shenzhou Car Rental has been a leader in the Chinese car rental industry for over a decade, focusing on user needs and continuously upgrading the travel experience [3] - The company has maintained the top position in the China Brand Power Index for the car rental industry for 12 consecutive years, with over 170 million registered users [3]

"车队有40多辆车，每辆车一天接送游客六七趟，还免费送麻饼、矿泉水、防暑药品等，让游客开心游 玩。""五一"假期，重庆渝驾汇汽车租赁公司负责人陈鹏申请成为一名志愿者。他带头组建"荣昌同心志 愿服务车队"，为游客提供免费接送服务。 巨大的流量，让从业多年的鹅堂食品公司负责人王龙有些"措手不及"。"现有的食品车间每天只能生产 5000只卤鹅，线上还有3000—5000只的需求缺口。"王龙说。 "不能为了冲销量盲目扩产能。"热潮之下，王龙保持着清醒：新建工厂需投入数千万元，批量赶工对口 碑会有负面影响；若热度消退，产能过剩也将拖垮企业。"我们的应对策略是临时租工厂生产，并严控 配方品质保证出品。"王龙说。 "五一"假期，荣昌区接待游客234.5万人次，同比增长168.2%；荣昌卤鹅销售量超29万只，同比增长 752.53%。 "荣昌卤鹅是有着300年历史的非遗美食，发展卤鹅产业，我们很有底气。"荣昌区商务委副主任温成才 介绍，依托农牧特色国家级高新区，荣昌已启动规划卤鹅产业园，未来将集聚种鹅繁育、深加工、冷链 物流企业；行业标准和冷链物流体系也在建设中，"养殖—加工—流通"的卤鹅生产全链条将逐步打 通。"让流量赋能 ...

央视网消息（新闻联播）：今年"五一"假期，全社会跨区域人员流动量同比增长7.9%，再创新高。"流动的中国"充满发展活力。我国不断完善的交通基 础设施网络正有力支撑运输服务水平整体跃升，有力支撑经济高质量发展。 这个"五一"假期，从雪域高原到椰林海岸，从繁华都市到偏远乡村，车流穿梭、人潮涌动。全社会跨区域人员流动量超14.65亿人次，日均超2.9亿人 次，比去年"五一"增长7.9%，再创历史同期新高。 这个"五一"假期，每天约9万艘次船舶抵离各地港口，5500多万辆汽车奔驰在城乡公路，全国最繁忙的机场之一首都机场高峰时段每分钟起降一架航 班。一张世界最大的现代化交通网承载起14亿多人的"诗与远方"。 这个"五一"假期，便捷的交通运输网络为旅客出行提供了重要保障，多项交通运输数据表现亮眼。 超13亿人次选择公路出行，550多万公里纵横交错的公路网让假日出行平稳有序。自驾出行占比超过八成，旺盛的自驾出行带火了汽车租赁行业，假期 期间，汽车租赁企业订单比平时增加10%。超过460万公里的农村公路如同毛细血管深入乡村，加速了城乡资源相互流通，带动乡村旅游持续升温，大江南 北，一片片乡间花海吸引着八方来客。 铁路客流创出 ...

Core Viewpoint - The People's Bank of China (PBOC) will lower the reserve requirement ratio (RRR) for auto leasing companies, aiming to enhance liquidity and support the automotive sector [1] Group 1: Policy Changes - The decision to reduce the RRR is part of broader efforts to stimulate economic growth and support industries affected by recent market fluctuations [1] - This policy change is expected to provide auto leasing companies with more capital to facilitate their operations and potentially increase vehicle purchases [1] Group 2: Industry Impact - Lowering the RRR for auto leasing companies may lead to increased competition in the automotive market as companies gain access to more funds [1] - The automotive sector, which has been facing challenges, could see a boost in demand as leasing options become more attractive to consumers [1]

Core Insights - The tourism market is experiencing a surge during the May Day holiday, with self-driving car rentals becoming a popular choice among travelers due to their flexibility and autonomy [1][2] - Rental demand in Jinan has increased by 2-3 times compared to regular periods, with rental prices for economy models rising significantly [2][4] Rental Market Dynamics - Jinan's rental market has seen a rental rate of 90% with expectations to exceed 96% during peak holiday times, marking a 20%-30% increase in rental rates compared to the Qingming holiday [2][4] - Over 40% of rental orders are made at least a week in advance, with popular economy cars like the Volkswagen Lavida and Nissan Sylphy being the main choices [4][5] Price Trends - Rental prices have surged, with daily rates for vehicles like the Buick Excelle increasing from 80 yuan to 243 yuan, and the Tesla Model 3 rising to 523 yuan [7][8] - The demand for spacious MPVs has also increased, with daily rental prices for models like the GAC Trumpchi M8 and Buick GL8 exceeding 700 yuan, doubling from regular prices [4][8] Consumer Preferences - There is a growing trend among younger consumers towards personalized vehicle choices, with electric vehicles and RVs becoming increasingly popular [9][12] - The proportion of electric vehicles in the rental market has risen from 30% to nearly 50% this year, driven by younger consumers seeking unique driving experiences [11] Market Growth and Competition - The rapid increase in demand has led to a surge in new rental companies, with 248 new registrations in Jinan within the past year, bringing the total to 66,441 [15] - The rental market is shifting from standardized services to personalized experiences, with a focus on service quality and user experience as key competitive factors [17]

Group 1 - The domestic car rental market is experiencing significant growth during the "May Day" holiday, with Shenzhou Car Rental reporting a double-digit year-on-year increase in order volume as of late April [1] - The Ministry of Transport predicts a surge in self-driving trips during the holiday, with both interprovincial traffic and new energy vehicle usage expected to rise [1] - Shenzhou Car Rental's data indicates a steady increase in daily orders since the opening of the "May Day" booking window, with an overall booking scale up by double digits compared to the same period last year [1] Group 2 - The rental duration preferences show a dual trend of short and long trips, with 44% of users opting for 2 to 3 days and 33% booking 4 to 5 days, while bookings for over 5 days have surged by 164% year-on-year [1] - Popular destinations for car rentals are being reshaped by social media influence and the flexibility of self-driving, with top cities including Beijing, Chengdu, Shanghai, Guangzhou, Nanning, Shenzhen, Kunming, Wuhan, Xi'an, and Hangzhou [1] Group 3 - Non-traditional tourist cities are seeing a remarkable increase in rental orders, with locations like Altay in Xinjiang, Zhaotong in Yunnan, Nanping in Fujian, Xingyi in Guizhou, and Golmud in Qinghai experiencing over 500% year-on-year growth in orders [2] - Long-distance intercity travel has become a new necessity for holiday travel, with a 170% increase in cross-city rental bookings compared to the same period last year [2]

Core Insights - The trend of self-driving car rentals is gaining popularity among young people, with a reported 44% increase in weekend rental orders after the Spring Festival, and a projected 2-3 times increase in demand during the upcoming May Day holiday compared to the Qingming Festival [1][3] Group 1: Market Trends - Self-driving travel allows for greater freedom in choosing routes and flexible scheduling, appealing to younger demographics such as those born in the 1990s and 2000s [1][3] - The rise in self-driving rentals is attributed to a shift in travel preferences, moving away from traditional group tours to more personalized travel experiences [1][3] Group 2: Company Initiatives - To accommodate the anticipated surge in demand for the May Day holiday, Didi Car Rental is offering a free "New User Protection Package" from April 12 to April 25, which includes benefits like scratch damage waivers and hassle-free returns [3][5] - The "New User Protection Package" aims to alleviate concerns for inexperienced drivers, providing coverage for vehicle damage and depreciation costs, thus enhancing the rental experience [5][7] Group 3: Customer Support and Safety - Didi emphasizes the importance of choosing large rental platforms for better service and support, including 24-hour customer service and strict vehicle maintenance standards [3][5] - In case of accidents, users are advised to contact emergency services and Didi's customer support immediately, ensuring that they can return the vehicle without complications [5][7]