Financial Data and Key Metrics Changes - Total revenue for the first half of 2025 reached RMB 3,731 million, representing a year-on-year increase of 74.3% [4] - Drug sales achieved RMB 641 million with a year-on-year growth of 53.5% [4][13] - Net loss for 2025 significantly narrowed to RMB 35.6 million, a decrease of 86.7% year-on-year [4][15] - Cash position stood at RMB 7,600 million, equivalent to approximately USD 1,100 million [15] Business Line Data and Key Metrics Changes - The company reported strong performance in its hematology oncology segment, particularly with the drug Orillah, which achieved over 50% growth in the first half of 2025 [18] - Tafasitamab was approved as the first CD19 antibody product for treating DLBCL patients in China, contributing to revenue growth [14][18] - The company is transitioning to a diversified multi-franchise portfolio, with several late-stage drivers expected to add durable revenue growth [14] Market Data and Key Metrics Changes - The market potential for ITP is estimated to be around RMB 1 billion to 1.5 billion in China, while the potential for SLE is around RMB 3 billion [60] - The company anticipates significant market opportunities in autoimmune diseases, with a focus on expanding its patient base [22][46] Company Strategy and Development Direction - The company aims to expand its international presence through strategic collaborations, such as the partnership with Prolyom for developing and commercializing ICP B02 [16] - The focus is on advancing its clinical pipeline, particularly in hematology and autoimmune diseases, with several drugs in late-stage trials [15][22] - The company is committed to maintaining a strong R&D backbone, with R&D expenses increasing to RMB 450 million, reflecting its commitment to innovation [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving at least 35% growth for Orillah in 2025, driven by strong market demand and unique product positioning [19] - The company is optimistic about the upcoming approvals and market entries for its drugs, which are expected to significantly enhance revenue streams [14][22] - Management highlighted the importance of patient enrollment in ongoing clinical trials to support future growth [9][10] Other Important Information - The company has made significant progress in its R&D pipeline, with multiple drugs in various stages of clinical trials, including BCL2 inhibitors and BTK inhibitors [5][10] - The company is actively pursuing global trials for its drugs, particularly in the areas of AML and MDS, to capitalize on unmet medical needs [36][41] Q&A Session Summary Question: Regarding Orillah's performance and future guidance - Management confirmed that Orillah achieved over 50% growth in the first half of 2025, exceeding the annual guidance of 35% [58] - The company is confident in its ability to raise guidance based on strong market performance and upcoming product approvals [59] Question: Expectations for pricing negotiations and R&D expenses - Management is preparing for negotiations related to pricing and expects to provide unique value to patients, which will support sales momentum [65] - R&D expenses are projected to increase as the company invests in late-stage clinical trials and global initiatives [69] Question: Global trials for BCL2 inhibitors - Management indicated that while there are excellent results for first-line CLL, the focus will initially be on launching in China before considering global trials [73] Question: Progress on lupus indication and ADC pipeline - Management expects to have top-line results for the lupus indication by September and is optimistic about the ADC pipeline's potential [88][90]

Financial Data and Key Metrics Changes - Total revenue reached RMB 116 billion, up 30.5% year on year, marking the fifth consecutive quarter of record-breaking performance [4][22] - Adjusted net profit was RMB 10.8 billion, up 75% year on year, achieving a new record high for the third consecutive quarter [4][31] - Gross margin improved to 22.5%, an increase of 1.8 percentage points year on year [4][22] Business Line Data and Key Metrics Changes - Smartphone revenue was RMB 45.5 billion, accounting for 39.3% of total revenue, with global smartphone shipments reaching 42.4 million units, marking the eighth consecutive quarter of year-on-year shipment growth [23][22] - AIoT revenue reached RMB 38.7 billion, up 44.7% year on year, with a gross margin of 22.5%, up 2.8 percentage points year on year [24][25] - Revenue from smart large appliances grew 66.2% year on year, with air conditioning shipments exceeding 5.4 million units, up over 60% year on year [25][26] Market Data and Key Metrics Changes - In Mainland China, smartphone market share for devices priced between RMB 4,000 and 6,000 increased by 4.5 and 6.5 percentage points year on year, respectively [12] - Xiaomi ranked first in smartphone activations in Mainland China and maintained a strong presence in Southeast Asia, Europe, and Latin America [7][8] - Global MAUs for Internet services reached 731 million, up 8.2% year on year, with MAUs in Mainland China reaching 185 million, up 12.4% year on year [27] Company Strategy and Development Direction - The company aims to achieve steady annual increases in market share in China and is focused on premiumization and technological advancements [9][10] - Xiaomi plans to enter the European market by 2027 and is committed to enhancing its international market infrastructure [19][20] - The company emphasizes innovation driven by user needs and aims to transform the home appliance industry through intelligent transformation [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intense competition in the smartphone industry and the need for continuous investment in core technology and product innovation [8][9] - The company expects the smartphone market to remain flat globally, with a target of 175-180 million shipments for the year [81][82] - Management expressed confidence in the long-term growth of the large appliance business despite current market challenges [16][99] Other Important Information - Xiaomi's R&D expenses reached RMB 7.8 billion, up 41.2% year on year, with a record high number of R&D personnel [30] - The company was included in the Fortune 500 list for the seventh consecutive year, ranking 297th, an improvement of 100 places from the previous year [19] Q&A Session Summary Question: Performance of AIoT segment in Chinese and overseas markets - Management noted strong growth rates in both markets, with a focus on expanding offline retail channels to enhance efficiency [34][37] Question: Smartphone gross margin trends - Management indicated that rising costs for components are a concern, but premiumization efforts are expected to help improve margins in the long term [36][44] Question: AIoT gross margin pressure - Management attributed quarter-on-quarter pressure to seasonal factors and promotional activities, but year-on-year growth remains strong [46][55] Question: EV business gross margin and overseas development - Management expressed confidence in maintaining satisfactory gross margins through competitive product offerings and economies of scale [88][90] Question: Brand strength in overseas markets - Management highlighted high brand awareness in Europe and plans to enhance the reputation of Xiaomi EVs before entering the market [90][91]

Financial Data and Key Metrics Changes - Total revenue reached RMB 116 billion, up 30.5% year on year, marking the fifth consecutive quarter of record-breaking performance [6][24] - Adjusted net profit was RMB 10.8 billion, up 75% year on year, achieving a new record high for the third consecutive quarter [6][32] - Gross margin improved to 22.5%, an increase of 1.8 percentage points year on year [6][24] Business Line Data and Key Metrics Changes - Smartphone revenue was RMB 45.5 billion, accounting for 39.3% of total revenue, with global smartphone shipments reaching 42.4 million units, marking the eighth consecutive quarter of year-on-year shipment growth [25][24] - AIoT revenue reached RMB 38.7 billion, up 44.7% year on year, with a gross margin of 22.5%, up 2.8 percentage points year on year [26][24] - Smart large appliances revenue grew 66.2% year on year, with air conditioning shipments exceeding 5.4 million units, achieving over 60% year-on-year growth [27][15] Market Data and Key Metrics Changes - In Mainland China, smartphone market share for devices priced between RMB 4,000 and 6,000 increased by 4.5 and 6.5 percentage points year on year, reaching 24.7% and 15.4% respectively [13] - Xiaomi ranked first in smartphone activations in Mainland China and maintained strong positions in Southeast Asia, Europe, and Latin America [9][10] - Global MAUs for Internet services reached 731 million, up 8.2% year on year, with MAUs in Mainland China reaching 185 million, up 12.4% year on year [29] Company Strategy and Development Direction - The company aims to achieve steady annual increases in market share in China and is focused on premiumization and technological advancements [11][12] - Xiaomi plans to enter the European market by 2027 and is committed to enhancing its brand and product competitiveness [21][85] - The company emphasizes innovation driven by user needs and aims to transform the home appliance industry through intelligent transformation [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intense competition in the smartphone industry and the need for continuous investment in core technology and product innovation [10][11] - The company expects the smartphone market to show little growth overall, with a target of 175-180 million shipments for the year [81] - Management expressed confidence in the long-term growth of the large appliance business despite current market challenges [17][98] Other Important Information - Xiaomi's R&D expenses reached RMB 7.8 billion, up 41.2% year on year, with a record high of 22,641 R&D personnel [31] - The company was included in the Fortune 500 list for the seventh consecutive year, ranking 297th, an improvement of 100 places from the previous year [21] - The company is committed to corporate social responsibility and has made significant contributions to disaster relief efforts [33] Q&A Session Summary Question: Performance of AIoT segment in China and overseas - Management noted strong growth in both markets, with a focus on expanding the new retail system to enhance AIoT business [36][38] Question: Long-term smartphone gross margin outlook - Management indicated that while there are short-term pressures on gross margin, premiumization and product structure adjustments are expected to support future growth [37][45] Question: AIoT gross margin pressure and R&D investment direction - Management explained that the pressure on AIoT gross margin was due to market conditions, and R&D investments are focused on core technologies and product lines [48][52] Question: EV business gross margin and overseas development - Management expressed confidence in maintaining satisfactory gross margins through competitive products and emphasized the importance of brand awareness for EVs in overseas markets [88][90] Question: Robotics opportunities and large appliances strategy - Management is optimistic about robotics opportunities and highlighted the rapid growth of air conditioning sales, with plans to enhance competitiveness further [94][98]

Financial Data and Key Metrics Changes - Operating income reached JPY 5,450,000,000, a year-on-year increase of 22% [28][30] - Net profit for the first half of the year was JPY 550,000,000, reflecting a year-on-year increase of 34% [29][34] - Asset management grew to RMB 112.1 billion, a 12% increase compared to the same period last year [29] Business Line Data and Key Metrics Changes - Automobile financing transactions reached JPY 32,700,000,000, a year-on-year increase of 4% [12] - Used car financing grew by 31% year-on-year, with transaction volume reaching 222,000 units [15] - FinTech business achieved a financing scale of CNY 1,530,000,000, a year-on-year increase of 58% [17] Market Data and Key Metrics Changes - New passenger car sales in China reached 13,530,000 units, a year-on-year increase of 13% [6] - The transaction volume of used passenger cars was 7,570,000 units, a year-on-year increase of 0.5% [6] - New energy passenger cars saw a year-on-year growth of about 33.3% [7] Company Strategy and Development Direction - The company aims to focus on core capacity building and leverage technological advantages to consolidate its leading position in auto finance [11] - Yixin plans to enhance its FinTech capabilities to empower traditional finance and improve customer experience [12] - The company is transitioning to a more lightweight business model to better fulfill its value proposition [46][49] Management Comments on Operating Environment and Future Outlook - Management noted that the industry is expected to return to rational competition due to increased regulatory policies [8] - The company anticipates that its strategic focus on technology and innovation will drive sustainable growth [11] - Management expressed confidence in achieving better performance in the second half of the year compared to the first half [70] Other Important Information - The company has established partnerships with over 100 financial institutions and is focusing on expanding its overseas business, particularly in Southeast Asia [35][40] - The penetration rate of new energy vehicles in new cars is about 54%, indicating strong market demand [18] Q&A Session Summary Question: What is the core reason behind the successful transformation and future plans? - Management emphasized the shift to a lightweight business model and the importance of AI capabilities in enhancing operational efficiency and market competitiveness [46][49] Question: How does the company view its growth in the used car market? - Management confirmed that the company is increasing its market share and highlighted the potential for further growth in the underserved used car market [56][59] Question: Can you elaborate on the impact of anti-evolution policies on the market? - Management stated that these policies promote healthier competition and stability among partners, which is beneficial for the company's long-term growth [66][68] Question: What are the achievements in overseas expansion? - Management reported significant growth in Singapore, with plans to replicate successful models in other Southeast Asian markets [39][40]

Financial Data and Key Metrics Changes - Operating income reached JPY 5,450,000,000, a year-on-year increase of 22% [31] - Net profit for the first half of the year was JPY 550,000,000, reflecting a year-on-year increase of 34% [32] - Asset management grew to RMB 112.1 billion, a 12% increase compared to the same period last year [32] Business Line Data and Key Metrics Changes - Automobile financing transactions reached JPY 32,700,000,000, a year-on-year increase of 4% [14] - Used car financing grew by 31% year-on-year, with transaction volume at 222,000 units [17] - FinTech business achieved explosive growth, reaching CNY 1,530,000,000, a year-on-year increase of 58% [19] Market Data and Key Metrics Changes - New passenger car sales in China reached 13,530,000 units, a year-on-year increase of 13% [7] - The transaction volume of used passenger cars was 7,570,000 units, a year-on-year increase of 0.5% [7] - New energy passenger cars saw a year-on-year growth of about 33.3% [8] Company Strategy and Development Direction - The company aims to focus on core capacity building and leverage technological advantages to consolidate its leading position in auto finance [12] - Yixin plans to enhance its AI capabilities and integrate them into its business model to improve efficiency and customer experience [31] - The company is exploring overseas markets, particularly in Southeast Asia, to replicate its successful business model [43] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry is moving towards rational competition, emphasizing technological innovation and improved product quality [9] - The company expects to continue its solid performance in the second half of the year, building on the strong results from the first half [74] - Management highlighted the importance of AI capabilities in driving future growth and enhancing service offerings [55] Other Important Information - The company has established partnerships with over 100 financial institutions and is focusing on expanding its overseas business [38] - The penetration rate of new energy vehicles in financing reached about 52% of the total [18] - The company has applied for 18 new AI invention patents in the first half of the year [47] Q&A Session Summary Question: What is the core reason behind the successful transformation and future plans? - Management emphasized the shift to a lightweight business model to enhance value and quality, leveraging strong partnerships with financial institutions [49][50][52] Question: How does the company view its growth in the used car market? - Management confirmed that the company is increasing its market share and noted that the used car market remains relatively underserved, presenting opportunities for growth [60][62] Question: Can you elaborate on the anti-evolution policies and their impact? - Management stated that the company supports sustainable development and healthy competition, which is expected to stabilize partnerships and improve predictability in performance [70][72] Question: What are the achievements in overseas expansion? - Management reported significant success in Singapore, with plans to replicate this model in other Southeast Asian markets, focusing on new energy vehicles and technology solutions [42][43][80]

Financial Data and Key Metrics Changes - The company reported a revenue of RMB950 million for the first half of 2025, with over RMB300 million coming from commercialized drugs, marking a significant achievement in its first year of commercialization [50][51] - Gross profit was RMB660 million, comparable to the previous year, while the net loss for the first half was RMB145 million, with an adjusted loss of RMB69 million after one-off budget adjustments [52][53] Business Line Data and Key Metrics Changes - The company has three main products ready for the market, with significant progress in approvals and commercialization efforts [12][21] - The commercialization team has expanded to nearly 400 personnel to support the increasing number of products [12] Market Data and Key Metrics Changes - The company has covered over 30 provinces, 300 cities, and over 1,000 hospitals across China, with partnerships established with over 400 pharmacies [28][32] - The company is actively working towards gaining medical insurance coverage for its products, which is expected to enhance market access [33][34] Company Strategy and Development Direction - The company aims to advance differentiated pipelines targeting significant medical needs, optimizing payload linker strategies, and exploring applications in non-oncology areas [26] - The focus is on expanding global partnerships and strengthening strategic collaborations to maximize the value of its pipelines [26] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future income from sales revenue, anticipating continued cash flow generation from both R&D partnerships and commercialized drugs [51] - The company is preparing for the implementation of new medical insurance policies, which could significantly impact product sales strategies [97][100] Other Important Information - The company completed a follow-on financing of US$250 million and is included in several global equity indexes, enhancing its financial stability [25] - The company is involved in ongoing litigation regarding IP disputes with several founders, which has been accepted for review by the Sichuan Provincial High Court [101] Q&A Session Summary Question: What is the breakdown of sales revenue for breast cancer and lung cancer? - Lung cancer is the biggest contributor to sales revenue, consistent with patient numbers and indications. The sales expenses are expected to decrease once products are included in medical insurance coverage [62][63] Question: What is the focus for R&D going into the next stage? - The focus is on developing differentiated products targeting clinical demands, with an emphasis on bispecific targets and new payload strategies [68][70] Question: Can you provide guidelines on the sales trend for Q3? - The company expects quarter-over-quarter growth, with significant contributions anticipated from lung cancer indications [72] Question: What is the rationale behind the clinical trial design for PD L1 positive and negative patients? - The company is focusing on first-line treatment for wild-type non-small cell lung cancer, with ongoing projects in development [88] Question: How is the company planning to navigate the new medical insurance policy? - The company is prioritizing entry into the medical insurance catalog and is actively preparing to comply with the new policy [97][98]

Financial Data and Key Metrics Changes - The company reported a revenue of RMB 950 million for the first half of 2025, with over RMB 300 million coming from commercialized drugs, marking a significant achievement in its first year of commercialization [52][53]. - The gross profit was RMB 660 million, comparable to the previous year, while the net loss for the first half was RMB 145 million, with an adjusted loss of RMB 69 million after one-off budget adjustments [54][55]. - Cash and financial assets totaled RMB 4.5 billion, indicating a healthy financial status to support upcoming R&D and innovation [58]. Business Line Data and Key Metrics Changes - The company has three main products ready for the market, with significant progress in commercialization, covering over 30 provinces and 300 cities, and engaging over 10,000 doctors [32][34]. - The commercialization team has expanded to nearly 400 personnel to support the increasing number of products ready for market [14][15]. Market Data and Key Metrics Changes - The company has successfully partnered with over 400 pharmacies across China, enhancing its market access and professional services [32][34]. - The company is actively pursuing medical insurance coverage for its products, with seven provinces already covered under specific affordable care programs [36][37]. Company Strategy and Development Direction - The company aims to advance differentiated pipelines targeting significant medical needs, optimizing payload linker strategies, and exploring applications in non-oncology areas [30]. - The focus is on developing ADCs and small molecules, with an emphasis on bi-specific targets and innovative payloads to replace traditional chemotherapy [70][72]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future income from sales revenue, anticipating continued cash flow generation from both R&D partnerships and commercialized drugs [53]. - The company is preparing for the implementation of new medical insurance policies, which are expected to enhance market access and sales volume [100][101]. Other Important Information - The company has completed a follow-on financing of USD 250 million and is included in major global equity indexes, enhancing its market presence [29]. - The company has made significant advancements in clinical trials, with multiple pivotal trials initiated both domestically and globally [25][26]. Q&A Session Summary Question: What is the breakdown of sales revenue for breast cancer and lung cancer? - Lung cancer is the biggest contributor to sales revenue, consistent with patient numbers and indications. The sales expenses are expected to decrease once products are included in the national medical insurance catalog [60][64]. Question: What is the focus for R&D going into the next stage? - The focus is on developing differentiated products targeting clinical demands, with an emphasis on bi-specific targets and innovative payloads [70][72]. Question: Can you provide guidelines on the sales trend for Q3? - The company has recorded quarter-over-quarter growth of several dozen percentage points, indicating a positive sales trend [76]. Question: What is the rationale behind the clinical trial design for PD L1 positive and negative patients? - The company is focusing on developing effective treatments for both PD L1 positive and negative patients, with ongoing trials to assess efficacy [91]. Question: How does the company plan to navigate the new medical insurance policies? - The company is prioritizing entry into the medical insurance catalog and is actively preparing to comply with new policies to enhance market access [100][101].

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]

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 [26] - 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 [26] - Gross profit increased by 10.6% year-over-year to RMB3.0 billion, with gross margin rising slightly to 65% [29] - Adjusted EBITDA increased by 29.7% to RMB1.2 billion, with a 25.4% margin compared to a 21.5% margin in the same period last year [30] Business Line Data and Key Metrics Changes - The accommodation reservation business achieved RMB1.4 billion, representing a 15.2% increase from the same period in 2024 [27] - Transportation ticketing revenue reached RMB1.9 billion, marking a 7.9% year-over-year increase [28] - The hotel management business sustained healthy expansion, with over 2,700 hotels in operation and nearly 1,500 in the pipeline [16] Market Data and Key Metrics Changes - The international air ticketing volume reached a historical high, delivering nearly 30% year-over-year growth [14] - The cumulative number of passengers served on the platform reached 2 billion, suggesting a stable user purchase frequency of 8 times per year [20] - The twelve-month annual paying users climbed to over 250 million, representing a 10% year-over-year increase [20] Company Strategy and Development Direction - The company is focused on expanding its core OTA business while enhancing its brand awareness and market share [34] - There is a commitment to leveraging technology, including AI, to drive growth and improve user experience [21][23] - The company aims to deepen its presence in the hotel management sector, targeting over 3,000 hotels in operation by the end of 2025 [73] 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 [33] - The shift in consumer preferences towards experiential travel is seen as a significant opportunity for growth [56] - The company plans to maintain a disciplined approach to sales and marketing spending to ensure optimal returns [56] 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 [17] - The balance of cash, cash equivalents, restricted cash, and short-term investments was RMB13.5 billion as of June 30, 2025 [32] 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 and is expected to continue growing, driven by a shift in user behavior towards higher quality products [41][43] Question: How does the company balance strategic resource allocation between core OTA and pursuing a diverse business portfolio? - Management emphasized that the OTA business remains the foundation and strategic focus, while also pursuing organic growth opportunities and selective M&A [46][48] 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, but expects the OTA business to outpace overall market growth [52][54] Question: Can management share more details on outbound travel performance? - Management reported significant growth in international air ticketing and accommodation volumes, with a focus on improving marketing efficiency and ROI [58][59] 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 [64][66] Question: What is the expected margin outlook for the OTA business? - Management expects steady year-over-year improvement in margins, driven by reduced sales and marketing expenses and improved operational efficiency [69][70] Question: What is the latest development plan for the hotel management business? - Management aims to operate over 3,000 hotels by the end of 2025, with a focus on enhancing quality and brand recognition [73][74] Question: Can management comment on the standalone app's user base and revenue contribution? - Management reported that the app accounted for over 8% of core OTA revenue in Q2, with ongoing efforts to grow the user base and engagement [82] Question: How is AI evolving within the company? - Management highlighted the integration of AI into the travel planning process, improving operational efficiency and user experience [85][86]

Financial Data and Key Metrics Changes - In the first half of 2025, the company achieved a net profit of 30 million RMB, marking its first interim profitability and becoming the second EV startup to do so [6][9] - The gross profit margin reached a historical high of 14.1% in the first half of 2025, attributed to economies of scale, cost management, and product mix optimization [6][8] - Total income as of June was 24.25 billion RMB, with operating net cash increasing to 2.86 billion RMB compared to 270 million RMB in the same period of 2024 [9][10] - Free cash flow improved to 860 million RMB from a negative 480 million RMB year-on-year [9] Business Line Data and Key Metrics Changes - Total sales in the first half of 2025 were 221,664 units, up 155.7% compared to the same period in 2024, making the company the top startup EV brand in China [10] - In July, deliveries reached a new high of 50,129 vehicles, maintaining the number one position for five consecutive months [10][11] - The company marked cumulative deliveries of 800,000 vehicles since its IPO, with over 100,000 units delivered globally [11] Market Data and Key Metrics Changes - As of June, the company expanded its sales network to cover 286 cities, an increase of 88 cities from the previous year [19] - The company deployed 806 sales outlets, with same-shop performance exceeding 82% [20] - In June, the company's market share in Germany surpassed 1%, with over 4,000 European users placing orders in July, a historical high [25] Company Strategy and Development Direction - The company plans to continue investing in R&D, with a focus on achieving urban assisted driving by the end of 2025 [15][16] - New product launches include facelifts of existing models and the introduction of a high-quality sedan targeting young families [13][14] - The company aims to penetrate tier one and tier two cities while expanding into areas where it currently lacks presence [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sales guidance of 580,000 to 650,000 units for the full year, adjusting from the previous guidance of 500,000 to 600,000 units [33] - The company anticipates a slight increase in gross profit margin in the second half of the year, aiming for around 15% [49] - Management believes that the impact of the removal of purchase tax incentives will be minimal, similar to the previous year's experience with subsidy removal [90][92] Other Important Information - The company received an MSCI ESG double A rating for the second consecutive year, reflecting its commitment to environmental protection and corporate governance [27][28] - The company is exploring capital collaboration opportunities to enhance industrial resource synergies [24] Q&A Session Summary Question: What is the sales outlook for August and September? - Management expects significant growth in sales for August and September, with Q3 sales projected to be between 170,000 to 180,000 units [33] Question: What is the outlook for gross profit margin in subsequent quarters? - Management believes the gross profit margin will improve in the second half compared to the first half, maintaining above 14% [34] Question: How does the company plan to handle pricing strategy amid regulatory changes? - The company supports government efforts to curb industry chaos and will not engage in excessive competition, maintaining a strong gross profit margin through cost control [40][41] Question: What is the guidance on expenses as sales grow? - Management did not provide specific guidance on expenses but noted that the expense ratio is dropping as sales revenue increases [43] Question: What are the expectations for overseas sales and localized production? - The company expects to double overseas sales next year, with localized production in Europe planned for the B series model [44][45] Question: How will the removal of purchase tax incentives impact sales? - Management anticipates minimal impact from the removal of purchase tax incentives, similar to the previous year's experience with subsidy removal [90][92]