Tongcheng Travel Holdings Limited

Good day and thank you for standing by. Welcome to Tongcheng Travel, 2026 Second Quarter and Interim Results Announcement. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star followed by 11 on your telephone and wait for your name to be announced. Please be advised that today's conference is being recorded. I would now like to hand the call over to your first speaker today, Ms. Kylie Yeung, Investor Relations Director of the company. Please go ahead.

Thank you. Good morning and good evening, everyone. Welcome to Tongcheng Travel's 2026 Second Quarter Results Conference Call. I'm Kylie Yeung, Investor Relations Director of the company. Joining us today on the conference call are our Co-Chairman of the Board, Executive Director and CEO, Mr. Hock Ma, our CFO, Mr. Julian Zhang, our Chief Capital Officer and President of Wonder Hotels and Resorts, Ms. Joyce Li. For today's call, our management team will provide a review of the company's performance in the second quarter. Hope will brief us on the company's strategy. Joyce will discuss our business and operational highlights. And then Julian will address the details of financial performance accordingly. We'll take your questions during the Q&A section that follows. As always, our presentation contains forward-looking statements. Such statements are based on management's current expectations and current market operating conditions and relate to events that involve known or unknown risks. and other factors which may cause the company's actual results, performance or achievements to differ from those in the forward-looking statements. This presentation also contains some unordered non-IFRS financial measures. They should be considered in addition to but not as a substitute for measures of the company's financial performance prepared in accordance with IFRS. For a detailed discussion of non-IFRS measures, Please refer to our disclosure document in the IR section of our website. Now let me introduce our chairman, Hope. Hope will be presenting in Mandarin, and our colleague will provide the English translation afterwards. Hope, please go ahead.

Thank you, Kylie. Welcome to our second quarter of the year. In the second quarter of the year, the Chinese tourism market is in good shape. The demand for travel during the holiday season and the spring break is still high. However, with the increase in fuel costs, the ticket prices have risen, increasing travel costs, leading to long-term travel needs and gradual pressure. Faced with the short-term pressure from high fuel costs, we actively adjust our operation strategy, implement targeted cost management measures, and continuously improve operation efficiency to respond to external challenges. On the other hand, China's travel consumption quality Thank you. Thank you. We accelerate the expansion of international business and deepen cooperation with international suppliers. We continue to enrich products and services to better meet the needs of users. In this period, international hotels and international flight tickets have achieved long-term growth. The number of Japanese hotels in the international hotel industry has increased significantly. In addition, as the company's second growth engine, our hotel management business focuses on the rapid expansion of scale. With the perfect brand correction and advanced technical capabilities, are the leading hotel management groups in China. According to the China Hotel Association's 2025 China Hotel Group size list, the number of hotel rooms in Yilong Hotel Technology and Wanda Hotel & Resort is ranked 7th and 22nd in the list. With a clear strategic layout, outstanding operating capabilities and flexible and efficient management capabilities, the company's income and profits continue to grow steadily in the second quarter. In the new stage of industry high-quality development, We have always focused on increasing the value of users and deepening the diversification needs of consumers in order to integrate the products and services of the general public to enhance the user travel experience. On August 21, we completed the cash invoices for low-cost travel and realized the control of low-cost travel. This time, SoGo is an important step in the strategic layout of the company's travel field, which helps the company to quickly enter the windmill market and complete the industrial chain layout. We look forward to the short-term pressure facing the tourism industry in the future. But the 15-5 plan for strong tourism construction will further highlight tourism industry as the position of the national economic strategic investment industry. The policy of the first stage is expected to provide support for the long-term stable development of the industry. At the same time, we see that digital technology, such as artificial intelligence and big data, will accelerate the integration of tourism industries and drive the transformation of industries. We believe that the growth opportunity brought by the AI era is greater than the challenge. We actively embrace the technological changes brought by AI, trying to integrate AI into business scenarios, promote business model upgrade and optimize business processes, and thus promote long-term sustainable development of companies. We are confident that in the AI era, through clear strategic layout and efficient strategic execution capabilities, we will first seize the opportunity to grow and create long-term value for stakeholders.