Financial Performance Analysis - In Q2 2025, the company achieved a net operating revenue of 14.8 billion yuan, reflecting a year-on-year growth of 16.2%, with total revenue for the first half reaching 28.7 billion yuan [1] - The net profit for Q2 was 4.9 billion yuan, showing growth compared to the same period last year and Q1 2025 [1] - The revenue growth was primarily driven by the accommodation booking segment, which grew by 21.2% year-on-year, contributing 6.225 billion yuan, accounting for 42% of total revenue [1] - The gross profit margin for Q2 was 81%, slightly down from 82% year-on-year but stable above 80% [3] - Operating costs increased by 22% year-on-year to 2.8 billion yuan, with R&D expenses rising by 17% to 3.5 billion yuan, representing 24% of total revenue [3] Business Development Insights - The company accelerated its international business development, with inbound travel bookings growing over 100% year-on-year, and international business revenue accounting for approximately 30% of total revenue in Q2 [4] - The company launched a series of services targeting inbound travel, enhancing customer experience and addressing traveler pain points [4] - The "Old Friends Club" brand targeting senior travelers saw membership and transaction volume more than double, indicating increased engagement from older consumers [5] - The company is focusing on high-star hotels, with hotel booking revenue accounting for 41% of total revenue, showcasing strong pricing power and user loyalty [5] Technological Innovation - The company is enhancing its AI capabilities for both consumer and business segments, improving travel planning features and operational insights for hotels [7] - AI-driven tools are expected to enhance customer satisfaction and operational efficiency, particularly in the context of inbound tourism [7] Future Business Directions - The company plans to intensify its focus on inbound tourism and holiday marketing in Q3, with initiatives like a one-stop inbound tourism consultation center [8] - The company is leveraging promotional events to stimulate travel demand, with significant exposure from the "GoChina" marketing campaign [8] - Predictions indicate that the company's comprehensive operational index will improve in Q3, driven by summer and National Day travel product sales and international business expansion [11]

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]