2025-08-28 01:02Financial 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]