Financial Data and Key Metrics Changes - The company reported a net revenue of RMB4.7 billion, marking a 10% year-over-year increase from the same period in 2024 [23] - Adjusted net profit rose to RMB775 million, reflecting an 18% year-over-year growth, with adjusted net margin expanding to 16.6% compared to 15.5% in the same period last year [23][27] - Gross profit increased by 10.6% year-over-year to RMB3.0 billion, with gross margin rising slightly to 65% [26][27] Business Line Data and Key Metrics Changes - The accommodation reservation business achieved RMB1.4 billion for the second quarter, representing a 15.2% increase from the same period in 2024 [24] - Transportation ticketing revenue reached RMB1.9 billion, marking a 7.9% year-over-year increase [25] - The hotel management business sustained healthy expansion, with over 2,700 hotels in operation and nearly 1,500 in the pipeline [14][68] Market Data and Key Metrics Changes - The international air ticketing volume reached a historical high, delivering nearly 30% year-over-year growth [12][52] - The cumulative number of passengers served on the platform reached 2 billion, suggesting a stable user purchase frequency of 8 times per year [18] - The twelve-month annual paying users climbed to over 250 million, representing a 10% year-over-year increase [18] Company Strategy and Development Direction - The company is focused on expanding its core OTA business while enhancing brand awareness and market share [31] - There is a commitment to leveraging technology, including AI, to drive growth and improve user experience [19][21] - The company aims to deepen its presence in the hotel management sector, targeting over 3,000 hotels in operation by the end of 2025 [68] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the Chinese travel market, anticipating steady year-over-year growth in both top line and bottom line [30][50] - The shift in consumer preferences towards experiential travel is seen as a significant opportunity for growth [30][50] - The company plans to maintain a disciplined approach to sales and marketing spending to ensure optimal returns [50] Other Important Information - The company announced the acquisition of a 100% stake in Wanda Hotel Management, which is expected to diversify brand metrics and strengthen market presence [15] - The balance of cash, cash equivalents, restricted cash, and short-term investments was RMB13.5 billion as of June 30, 2025 [29] Q&A Session Summary Question: Can management provide more color regarding the volume growth, ADR, and take rate in the accommodation business? - Management noted that the domestic ADR has stabilized year-over-year, with a shift in user behavior towards higher quality products driving growth [36][37] Question: How does the company balance strategic resource allocation between core OTA and pursuing a diverse business portfolio? - Management emphasized that capital allocation remains focused on both organic and inorganic expansion, with the OTA business as the foundation of operations [39][40] Question: What are the reasons for the low growth in domestic airline ticketing volume? - Management indicated that the industry has returned to a normalized growth trajectory after two exceptional years, with low single-digit growth observed in June [45][46] Question: Can management share more details on outbound travel performance during the summer break? - Outbound travel has seen significant growth, with international air ticketing volume achieving nearly 30% year-over-year growth [52] Question: How does management view the impact of JV and BaBa's investments in the OTA market? - Management believes that the competitive landscape remains stable, as new entrants face challenges in replicating established relationships and operational efficiencies [59][61] Question: What are the expectations for short-term and long-term margins of the OTA business? - Management expects steady year-over-year improvement in margins, driven by reduced sales and marketing expenses and increased operational efficiency [63][64] Question: What is the latest development plan for the hotel management business? - The hotel management business is targeting over 3,000 hotels in operation by the end of 2025, with revenue contribution increasing significantly [68] Question: Can management comment on the standalone app's user base and revenue contribution? - The app accounted for over 8% of core OTA revenue in the second quarter, with a focus on attracting incremental users [75]