Financial Data and Key Metrics Changes - Total revenue for the third quarter of 2025 grew by 5.1% year over year to RMB 1.55 billion, primarily driven by a 70% increase in the financial services segment [12][13] - Net income for the third quarter was RMB 318 million, translating to RMB 3.65 per ADR share or $0.51 per ADR share, representing a 12% decline from the previous quarter [20][21] - The net margin slightly decreased from 22% in the prior quarter to 20% [21] Business Line Data and Key Metrics Changes - In the financial services segment, loan origination reached RMB 20.2 billion, up 51% year over year, with repeat borrowers accounting for 77% of total loan volume [5][14] - The insurance brokerage business reported gross return premiums of RMB 1.15 billion, a 35% increase quarter over quarter, while revenue from the segment was RMB 84.2 million, up 45% from the prior quarter [10][17] - The Internet insurance business delivered RMB 196 million in annualized premium, representing 204% quarter over quarter growth, with total customer numbers rising 93% quarter over quarter to 229,353 [10][17] Market Data and Key Metrics Changes - The company facilitated RMB 20.2 billion in loan origination during the quarter, reflecting a strong market position despite tightening credit policies [5][14] - The average size for new loans increased from RMB 7,000 to RMB 10,100, indicating a shift towards higher credit quality customer segments [6][14] Company Strategy and Development Direction - The company is focused on disciplined execution and positioning itself for the next generation of fintech with AI and blockchain technologies [4][11] - Strategic investments are being made in technology capabilities to build next-generation fintech infrastructure and deepen partnerships with key industry players [11] Management's Comments on Operating Environment and Future Outlook - Management noted a more challenging operating environment due to heightened regulatory uncertainty and a cautious credit backdrop, but emphasized effective risk management and asset quality protection [4][21] - The company remains cautiously optimistic about future growth, projecting fourth-quarter revenue between RMB 1.4 billion and RMB 1.6 billion [22] Other Important Information - The company has been included in the whitelist of nearly 30 compliant funding partners under the new regulatory framework, enhancing its market position [7] - AI-driven collection capabilities have significantly reduced labor costs and improved service quality, contributing to operational efficiency [8][19] Q&A Session Summary - The Q&A session was not conducted as the conference concluded without any questions being asked [23]

Financial Data and Key Metrics Changes - In Q3 2025, the company facilitated RMB 32.2 billion in loan volume, a year-on-year increase of approximately 20.6% [4][13] - Non-GAAP income from operations was RMB 490 million, up around 50.3% year-on-year [4][15] - Net income for the third quarter was RMB 376.5 million, representing an increase of 39.7% from the same period in 2024 [16] - Basic and diluted net income per share was RMB 1.83, compared to RMB 1.27 in Q3 2024 [16] Business Line Data and Key Metrics Changes - The company maintained cooperation with 75 financial institutions, with another 64 under negotiation, enhancing funding supply stability [5] - The 90-plus-day delinquency rate stood at 1.33% at the end of Q3 [6] - The share of facilitation volume from repeat borrowers rose to 78.6%, driving the average borrowing amount per transaction up to RMB 9,115, a year-on-year increase of approximately 19.5% [6][7] Market Data and Key Metrics Changes - China's GDP grew by 4.8% year-on-year in Q3 2025, contributing to a stable environment for consumer finance [4] - Demand for consumer finance has been rising steadily, with a narrow consumer credit balance up 4.2% year-on-year as of September 30 [4] Company Strategy and Development Direction - The company is focusing on high-quality borrower segments and optimizing resource allocation efficiency [6] - A cautious strategy for new customer acquisition has been adopted, emphasizing high-quality borrowers [6] - The company aims to navigate cyclical headwinds with lean operational capabilities for sustainable growth [12] Management's Comments on Operating Environment and Future Outlook - The implementation of new regulations in October has created significant downward pressure on pricing and emphasized consumer protection [18] - The company expects Q4 loan facilitation volume to reach RMB 23-25 billion, with full-year volume projected at RMB 127.8-129.8 billion, representing a year-on-year increase of approximately 26.8%-28.8% [12][21] - Long-term, the enforcement of new regulations is expected to raise industry entry barriers and promote healthier sector development [20] Other Important Information - The company has made significant investments in AI development, achieving innovations that enhance fraud detection and operational efficiency [8][9] - The Indonesian business saw nearly 200% year-on-year growth, with a 150% increase in the number of borrowers [11] Q&A Session Summary Question: Impact of new regulation on business and strategic adjustments - Management noted significant impacts from the new regulation, including pricing pressure and a focus on consumer protection, leading to adjustments in customer acquisition strategies and borrower segmentation [18][19] Question: Revenue take rate and margin expectations - The company facilitated RMB 32.2 billion in volume in Q3 2025, with a net margin of 25.6%, slightly down from 27.5% in Q2 [20]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported revenue of $25.4 million, a growth of 72% year-over-year, driven by robotaxi services and licensing [24][25] - Gross profit margin improved significantly from 9.2% in Q3 2024 to 18.4% in Q3 2025, with gross profit of $4.7 million [28][29] - The net loss for Q3 was $61.6 million, compared to $42.1 million in the same period last year [30] Business Line Data and Key Metrics Changes - Robotaxi services revenue reached $6.7 million, representing a growth of 89.5% year-over-year and 338.7% quarter-over-quarter, with fare charging revenue surging by 233.3% [25][26] - Robot truck service revenues were $10.2 million, growing by 8.7% [27] - Licensing and application revenues grew significantly by 354.6% to $8.6 million, driven by demand for the autonomous domain controller [28] Market Data and Key Metrics Changes - The company expanded its robotaxi presence to eight countries, including a new market entry in Qatar [11][12] - Daily net revenue per vehicle reached CNY 299, with an average of 23 orders per day [29][42] - The total number of registered users nearly doubled within a week of launching the Gen7 Robotaxi [7] Company Strategy and Development Direction - The company aims to scale its fleet to over 3,000 vehicles by 2026, leveraging the momentum from the successful Hong Kong IPO [4][32] - The focus is on expanding operational footprint in Tier 1 cities and exploring new markets through partnerships [11][36] - The company is committed to technological innovation and creating lasting value through efficient autonomous mobility services [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a city-wide unit economic break-even milestone, validating the business model [6][41] - The company anticipates sustained strong growth momentum through continuous fleet expansion and operational optimization [40][44] - The management highlighted the importance of partnerships and local government collaboration for future growth [62] Other Important Information - The company completed a dual primary listing on the Hong Kong Stock Exchange, raising over $800 million to support mass production and commercialization [4][32] - The Gen7 Robotaxi has achieved city-wide unit economics break-even in Guangzhou shortly after its launch [6][41] - The company is transitioning to a satellite model for fleet expansion, allowing for greater capital efficiency [32] Q&A Session Summary Question: Updates on fleet size and deployment plans for 2026 - Management expects to outperform the target of 1,000 robotaxis by year-end and aims for over 3,000 vehicles in 2026, driven by user experience improvements and partnerships [35][36] Question: Outlook for fare charging revenues - Fare charging revenue surged by 233% in Q3, driven by user demand and operational optimizations, with expectations for continued growth as fleet expands [38][39] Question: Details on unit economic break-even assumptions - The daily net revenue per vehicle is CNY 299, with 23 average orders per day, supported by operational cost management and hardware depreciation strategies [41][42] Question: Views on new entrants in the robotaxi space - The company sees new entrants as a positive sign for the industry but acknowledges significant barriers to entry, including business, regulatory, and technical challenges [45][46] Question: Factors behind faster operational area expansion - The company attributes rapid expansion to the number of robotaxi vehicles and the ability to handle corner cases effectively, emphasizing the importance of fleet density [52][53]

Financial Data and Key Metrics Changes - Net sales increased by 3% in the second quarter, with comparable net sales rising by 5% after excluding prior year sales related to divested businesses and foreign currency exchange [22] - Adjusted gross profit decreased by $90 million, or 10%, compared to the prior year, primarily due to higher commodity costs and unfavorable volume mix [23] - Adjusted earnings per share was $2.10, a decrease of 24% versus the prior year [24] Business Line Data and Key Metrics Changes - Uncrustables brand net sales grew by 7% at the total company level, with significant household penetration potential remaining [4][5] - Café Bustelo brand net sales increased by 41% in the U.S. retail coffee portfolio, driven by distribution expansion and marketing investments [8] - Milk-Bone brand showed sequential improvement in net sales growth, with expectations to return to growth in the latter half of the fiscal year [9][10] - Meow Mix brand outpaced the dry cat food category, growing sales nearly three times the category rate [11] Market Data and Key Metrics Changes - U.S. retail coffee segment net sales increased by 21%, with net price realization contributing significantly to this growth [24] - U.S. retail frozen handheld and spreads saw a net sales decline of 5%, primarily due to decreases in peanut butter and fruit spreads [25] - U.S. retail pet foods experienced a 7% decrease in net sales, driven by declines in dog snacks [26] Company Strategy and Development Direction - The company is focused on three strategic priorities: accelerating organic growth, embedding transformation, and fostering a be-bold mindset [3] - The strategy includes significant investments in brand-building and innovation, particularly for key growth platforms like Uncrustables and Café Bustelo [4][7] - The company aims to stabilize and position the Hostess brand for long-term growth through SKU reduction and improved marketing [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic environment, emphasizing the importance of controlling internal factors [21] - The company anticipates continued double-digit growth for the Café Bustelo brand and a positive outlook for the Uncrustables brand [9][18] - Future growth opportunities are expected in the away from home business, which is projected to grow to approximately 10% of total company net sales this fiscal year [20] Other Important Information - Free cash flow for the second quarter was $280 million, down from $317 million in the prior year [29] - The company plans to prioritize debt reduction, aiming to pay down $500 million of debt annually [29] - Full-year net sales guidance is narrowed to an increase of 3.5%-4.5%, reflecting various headwinds from divested businesses [30][31] Q&A Session Summary Question: What are the growth expectations for the Uncrustables brand? - The Uncrustables brand is on track to generate over $1 billion in net sales by the end of the fiscal year, with significant household penetration potential remaining [7] Question: How is the company addressing commodity cost pressures? - The company is managing commodity costs through flexible pricing strategies and anticipates normalization over time [16] Question: What is the outlook for the Hostess brand? - The Hostess brand is expected to stabilize performance and position for sustainable long-term growth through strategic actions and marketing efforts [15]

Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 increased by 5% year-over-year to RMB 2.2 billion, with e-commerce revenue growing by 2.4% to RMB 1.8 billion and brand management revenue rising by 20% to RMB 396 million [8][9] - Non-GAAP operating loss narrowed to RMB 11 million from RMB 85 million a year ago, indicating significant improvement in profitability [4][11] - Blended gross margin for product sales expanded to 34.3%, reflecting a 620 basis points year-over-year increase [9] Business Line Data and Key Metrics Changes - BEC achieved a non-GAAP operating profit of RMB 28 million, compared to an operating loss of RMB 30 million a year ago, marking its most profitable third quarter in recent years [5][6] - BBM revenue grew by 20% year-over-year to RMB 396 million, driven by effective merchandising and marketing initiatives [6][20] - Services revenue for BEC increased by 6.3% year-over-year to RMB 1.4 billion, primarily due to growth in online store operations [8][16] Market Data and Key Metrics Changes - The GAP brand engaged a top-tier brand ambassador, leading to a 25% increase in young customers and significant brand awareness [21][56] - BBM's gross profit margin expanded to 56.5%, up 370 basis points from the previous year, highlighting effective marketing strategies [20] Company Strategy and Development Direction - The company is focused on a strategic transformation with an emphasis on sustainable profitability and growth, anticipating 2026 to be a pivotal year for sustained profitable growth [7][19] - The strategy includes expanding the margin for BEC and optimizing cost efficiency, while BBM focuses on making each brand a successful operation [31][34] Management's Comments on Operating Environment and Future Outlook - Management noted an improvement in consumer sentiment, with consumers increasingly focused on value and targeted purchases [28][29] - The company expects to see strong performance in Q4 2025 and anticipates significant improvements in profitability for 2026 across both business segments [45][46] Other Important Information - The company reclassified an investment related to Tanyo, increasing total equity to RMB 5.5 billion, with no impact on warehouse and logistics operations [13] Q&A Session Summary Question: Observations on consumer sentiment and spending behavior - Management observed that consumer sentiment is improving, with a focus on value-driven purchases, particularly in sports and apparel categories [28][29] Question: 2026 outlook and strategic priorities - Management highlighted margin expansion and cost optimization as key priorities for BEC, while BBM aims to ensure successful operations for existing brands and develop synergies between divisions [31][34] Question: Impact of GAP's brand ambassador on awareness and sales - The collaboration has significantly increased brand awareness and customer engagement, particularly among younger demographics, leading to synergies in sales across product lines [56][57]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a net revenue of RMB 5.5 billion, reflecting a year-over-year increase of 10.4% [18] - Adjusted net profit reached RMB 1,060 million, marking a 16.5% year-over-year growth, with an adjusted net margin expanding to 19.2% from 18.2% [19][22] - Gross profit increased by 14.4% year-over-year to RMB 3.6 billion, with a gross margin of 65.7% [22] - Annual paying users reached a historic high of 253 million, representing a year-over-year growth of 8.8% [11] Business Line Data and Key Metrics Changes - The accommodation reservation business achieved RMB 1.6 billion in revenue for Q3 2025, a 14.7% increase from the same period in 2024, driven by increased hotel room nights sold [19] - Transportation ticketing revenue reached RMB 2.2 billion, marking a 9.0% year-over-year increase [20] - Other business segments, including hotel management, saw revenue grow to RMB 821 million, a 34.9% year-over-year increase [21] Market Data and Key Metrics Changes - The international air ticketing business accounted for around 6% of total transportation ticketing revenue, up about two percentage points year-over-year [21] - The company noted a significant increase in the proportion of higher-quality accommodation bookings, with over 20% growth in room nights sold [38] Company Strategy and Development Direction - The company aims to enhance user value and operational efficiency in its domestic business while expanding its outbound business and strengthening its global market presence [24][25] - Following the acquisition of Wanda Hotel Management, the company plans to integrate its operations to accelerate growth in the hotel management segment [6][32] - The focus remains on technological innovation to drive product and service upgrades, ensuring high-quality travel experiences for users [5] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience and growth potential of China's travel industry, driven by changing consumer behaviors and preferences [3][5] - The company anticipates continued growth in the outbound travel segment, targeting a revenue contribution of 10%-15% in the coming years [30] - Management remains committed to balancing market expansion with profitability, aiming for robust growth in both top line and bottom line [24][25] Other Important Information - The company has achieved an MSCI ESG rating of AAA, placing it among the top 5% of companies globally in its industry [15] - The standalone app has seen strong growth, with daily active users hitting nearly 5 million before the National Day holidays [12] Q&A Session Summary Question: Future growth engines regarding international business and hotel management - Management highlighted that the outbound business is a key growth driver, with expectations for rapid growth and profitability in the coming years [29][30] - The hotel management business is expected to expand significantly, with a focus on integrating the Wanda brand and enhancing operational efficiency [32][33] Question: Future hotel ADR trends and competition in the domestic market - Management noted that domestic ADR has stabilized and is expected to improve, driven by a shift towards higher-quality accommodations [38] - The company believes its established supply chain and user understanding provide a strong competitive advantage against new entrants [42][43] Question: Margin trends and AI technology impact - Management indicated that margin expansion remains a priority, supported by improved operational efficiency and AI integration [55][58] - AI technology is seen as beneficial for enhancing operational efficiency and user experience, with ongoing investments planned [59][60] Question: Impact of recent events in Japan on business performance - Management does not expect a material impact on overall performance but will monitor developments closely and adjust strategies as needed [64]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a net revenue of CNY 5.5 billion, a 10.4% year-over-year increase from Q3 2024 [18] - Adjusted net profit reached RMB 1,060 million, reflecting a 16.5% year-over-year growth, with an adjusted net margin expanding to 19.2% compared to 18.2% in the same period last year [19][22] - Gross profit increased by 14.4% year-over-year to RMB 3.6 billion, with a gross margin of 65.7% [22] Business Line Data and Key Metrics Changes - The core OTA business revenue grew by 14.9% year-over-year to RMB 4.6 billion, driven by accommodation reservation, transportation ticketing, and other segments [19] - Accommodation reservation revenue reached RMB 1.6 billion, a 14.7% increase from Q3 2024, attributed to increased hotel room nights sold [19][20] - Transportation ticketing revenue was RMB 2.2 billion, marking a 9.0% year-over-year increase [20] Market Data and Key Metrics Changes - The annual paying users reached a historic high of 253 million, representing a year-over-year growth of 8.8% [11] - The cumulative number of passengers served on the platform exceeded 2 billion over the past 12 months, indicating a stable annual purchase frequency of 8 times per user [11] - The international air ticketing business accounted for around 6% of total transportation ticketing revenue, up about 2 percentage points year-over-year [21][29] Company Strategy and Development Direction - The company aims to enhance user value and operational efficiency in its domestic business while expanding its outbound business and strengthening its global market presence [24][25] - The acquisition of Wanda Hotel Management is expected to accelerate the growth of the hotel management business and strengthen competitive positioning [6][11][32] - The company is committed to integrating AI technologies to enhance operational efficiency and user experience [6][15] Management Comments on Operating Environment and Future Outlook - Management noted that the travel market in China is showing robust growth, driven by rising demand for immersive experiences [7][18] - The company remains focused on balancing market expansion and profitability, aiming for robust growth in both top line and bottom line [24][25] - Management expressed confidence in the long-term sustainable growth and value creation for stakeholders [6][11][33] Other Important Information - The company has achieved an MSCI ESG rating of AAA, placing it among the top 5% of companies globally in its industry [15] - The standalone app has seen strong growth, with daily active users hitting nearly 5 million before the National Day holidays [12] Q&A Session Summary Question: Future growth engines regarding international business and hotel management - Management highlighted that the outbound business is a key growth driver, with expectations for rapid growth and a revenue contribution of 10-15% in the next two to three years [29][30][31] - The hotel management business is expected to expand significantly, with the acquisition of Wanda Hotel Management enhancing the company's portfolio and market influence [32][33] Question: Future hotel ADR trend and competition in the domestic market - Management indicated that domestic ADR has stabilized and is expected to improve, driven by a shift towards higher-quality accommodations [38][40] - The company believes it has strong defensive moats against competition due to its established supply chain and user understanding [42][43] Question: Margin trends and AI technology impact - Management expects continued margin improvement driven by operational efficiency and AI integration, with a focus on balancing revenue growth and profitability [55][58] - AI technology is seen as beneficial for enhancing operational efficiency and user experience, with ongoing investments planned [59][60] Question: Impact of recent Japan incident on business performance - Management does not expect a material impact on full-year performance but will monitor developments closely and adjust strategies as needed [64]

Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 increased by 5% year-over-year to RMB 2.2 billion, with e-commerce revenue growing by 2.4% to RMB 1.8 billion and brand management revenue rising by 20% to RMB 396 million [8][9] - Non-GAAP operating loss narrowed to RMB 11 million from RMB 85 million a year ago, indicating significant improvement in profitability [4][11] - Blended gross margin for product sales expanded to 34.3%, reflecting a 620 basis point year-over-year increase [9] Business Line Data and Key Metrics Changes - BEC achieved a non-GAAP operating profit of RMB 28 million, compared to an operating loss of RMB 30 million a year ago, marking its most profitable third quarter in recent years [5][11] - BBM revenue grew by 20% year-over-year to RMB 396 million, driven by effective merchandising and marketing initiatives [6][20] - Services revenue for BEC increased by 6.3% year-over-year to RMB 1.4 billion, primarily due to growth in online store operations [8][16] Market Data and Key Metrics Changes - The GAP brand saw a 7% same-store sales growth, contributing to BBM's overall revenue increase [20] - The beauty and cosmetics categories experienced healthy growth, while the appliance category faced challenges due to a shift in consumer preferences [15][16] Company Strategy and Development Direction - The company is focused on a strategic transformation aimed at sustainable profitability and growth, with 2025 seen as a building phase and 2026 anticipated as an inflection point for sustained profitable growth [7][19] - The strategy includes enhancing brand management capabilities and leveraging technology as a catalyst for growth [7][35] Management's Comments on Operating Environment and Future Outlook - Management noted an improvement in consumer sentiment, with consumers becoming more value-conscious and targeted in their purchasing behavior [28][29] - The company expects to see strong performance in Q4 2025 and anticipates significant improvements in profitability for 2026 across both business segments [45][46] Other Important Information - The company reported a cash and cash equivalents total of RMB 2.7 billion as of September 30, 2025 [11] - An accounting update reclassified an investment related to Tanyo, increasing total equity to RMB 5.5 billion [13] Q&A Session Summary Question: Observations on consumer sentiment and spending behavior - Management observed that consumer sentiment is improving, with a focus on value and targeted purchases, particularly in sports and apparel categories [28][29] Question: 2026 outlook and strategic priorities - Management highlighted margin expansion and cost optimization as key priorities for BEC, while BBM focuses on successful brand operations and synergy between divisions [31][33][35] Question: Impact of premium consumption stabilization - Management confirmed that premium categories are performing well, particularly in the luxury segment, with a focus on content-driven sales strategies [38][39] Question: Revenue and profitability outlook for Q4 and 2026 - Management expressed confidence in delivering solid results for both BEC and BBM in the upcoming quarter and expects significant profitability improvements in 2026 [45][46] Question: Impact of Taobao's Qiucommerce on performance - Management indicated that Qiucommerce primarily benefits FMCG categories, which are not the main focus for Baozun's growth strategy [50][51] Question: Effects of new advertising regulations - Management noted that while advertising spending has become more cautious post-pandemic, they have not observed significant impacts from new regulations on their operations [52]

Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 increased by 5% year-over-year to RMB 2.2 billion, with e-commerce revenue growing by 2.4% to RMB 1.8 billion and brand management revenue rising by 20% to RMB 396 million [8][9] - Non-GAAP operating loss narrowed to RMB 11 million from RMB 85 million a year ago, indicating significant improvement in profitability [4][11] - Blended gross margin for product sales expanded by 620 basis points year-over-year to 34.3%, with gross profits increasing by 26.1% to RMB 277.4 million [9][11] Business Line Data and Key Metrics Changes - BEC achieved a non-GAAP operating profit of RMB 28 million, compared to an operating loss of RMB 30 million a year ago, marking its most profitable third quarter in recent years [4][5] - BBM revenue grew by 20% year-over-year to RMB 396 million, driven by merchandising and marketing initiatives, with gross profit margin expanding to 56.5% [20][21] Market Data and Key Metrics Changes - Services revenue for BEC grew by 6.3% year-over-year to RMB 1.4 billion, driven by online store operations and additional marketing and IT solutions [8][16] - BEC product sales revenue decreased by 8.9% year-over-year to RMB 413.4 million, primarily due to declines in the appliance and health and nutrition categories [8][9] Company Strategy and Development Direction - The company is focused on a strategic transformation aimed at sustainable profitability and growth, with 2025 seen as a building phase and 2026 anticipated to mark a shift to sustained profitable growth [6][7] - The company is enhancing its distribution model to improve margins and is investing in technology and AI to drive efficiency and profitability [33][37] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment is improving, with consumers increasingly focused on value and willing to spend on premium categories [30][31] - The company expects strong performance in Q4 2025 and anticipates significant improvements in profitability for 2026 across both BEC and BBM segments [47][48] Other Important Information - The company reclassified an investment related to Tanyo, increasing total equity to RMB 5.5 billion, with no impact on warehouse and logistics operations [12] - The company is actively looking for new brands to add to its BBM portfolio while ensuring careful selection to maximize success [37] Q&A Session Summary Question: Observations on consumer sentiment and spending behavior - Management observed that consumer sentiment is improving, with a focus on value and targeted spending, particularly in sports and apparel categories [30][31] Question: 2026 outlook and strategic priorities - Management highlighted margin expansion and cost optimization as key priorities for BEC, while BBM focuses on successful brand operations and synergy between divisions [33][34] Question: Impact of GAP's brand ambassador on awareness and sales - The collaboration with a brand ambassador has increased young customer engagement by 25% and strengthened brand awareness across key product categories [55][56]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a net revenue of CNY 5.5 billion, reflecting a year-over-year increase of 10.4% from Q3 2024 [17] - Adjusted net profit reached RMB 1,060 million, representing a 16.5% year-over-year growth, with an adjusted net margin expanding to 19.2% compared to 18.2% in the same period last year [18] - Gross profit increased by 14.4% year-over-year to RMB 3.6 billion, with a gross margin of 65.7% [22] Business Line Data and Key Metrics Changes - The core OTA business revenue grew by 14.9% year-over-year to RMB 4.6 billion, driven by accommodation reservations, transportation ticketing, and other segments [18] - Accommodation reservation revenue reached RMB 1.6 billion, a 14.7% increase from Q3 2024, attributed to higher hotel room nights sold and a slight increase in ADR [18] - Transportation ticketing revenue was RMB 2.2 billion, marking a 9.0% year-over-year increase [20] - Other business segments saw revenue of RMB 821 million, a growth of 34.9% year-over-year, primarily due to the hotel management business [21] Market Data and Key Metrics Changes - The annual paying users reached a historic high of 253 million, representing a year-over-year growth of 8.8% [11] - The cumulative number of passengers served on the platform exceeded 2 billion, indicating a stable annual purchase frequency of 8 times per user [11] - The international air ticketing business accounted for around 6% of total transportation ticketing revenue, up about 2 percentage points year-over-year [30] Company Strategy and Development Direction - The company aims to maintain its focus on the mass market while expanding its outbound business and exploring new growth drivers across the travel industry [5] - The acquisition of Wanda Hotel Management is expected to accelerate the growth of the hotel management business and strengthen the company's competitive positioning [11] - The company is committed to integrating AI technologies to enhance operational efficiency and user experience [5][15] Management Comments on Operating Environment and Future Outlook - Management noted that the travel market in China is showing robust growth, driven by rising demand for immersive experiences and innovative service models [3] - The company plans to capitalize on market opportunities while managing risks with discipline and prudence, aiming for robust growth in both top line and bottom line [24] - Management expressed confidence in achieving long-term sustainable growth and delivering value to stakeholders through a clear strategic roadmap [5][34] Other Important Information - The company has achieved an MSCI ESG rating of AAA, placing it among the top 5% of companies globally in its industry [15] - The standalone app has seen strong growth, with daily active users hitting nearly 5 million before the National Day holidays [12] Q&A Session Summary Question: Future growth engines regarding international business and hotel management - Management highlighted that the outbound business is a key growth driver, with expectations for rapid growth and profitability in the coming years [30][31] - The hotel management business is expected to expand significantly, with a focus on integrating Wanda Hotel Management to enhance offerings and profitability [32][34] Question: Future hotel ADR trends and competition in the domestic market - Management noted that domestic ADR has stabilized and is expected to improve, driven by a shift towards higher-quality accommodations [39][40] - The company believes it has strong defensive moats against competition due to its established supply chain and user understanding [42][43] Question: Margin trends and AI technology impact - Management indicated that margin expansion remains a priority, supported by improved operational efficiency and AI integration [55][57] - AI technology is expected to enhance operational efficiency and user experience, contributing positively to the company's performance [58][60] Question: Impact of recent incidents in Japan on business performance - Management does not expect a material impact on full-year performance but will monitor developments closely and adjust strategies as needed [63]