Tuniu Corporation

Hello, and thank you for standing by for TUNIA's 2022 First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Mary. Mary, please go ahead.

Thank you, and welcome to our 2022 first quarter earnings conference call. Joining me on the call today are Donald Yu, 2NEWS founder, chairman, and chief executive officer, and Enqiang Chen, 2NEWS financial controller. For today's agenda, management will discuss business updates, operation highlights, and financial performance for the first quarter of 2022. Before we continue, I refer you to our safe harbor statement in earnings press release, which applies to this call, as we will make forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to most directly comparable GAAP measures. Finally, please note that Unless otherwise stated, all figures mentioned during this conference call are in RMB. I would now like to turn the call over to our founder, chairman, and chief executive officer, Donald Yu.

Thank you, Mary. Good day, everyone. Welcome to our first quarter 2022 earnings conference call. From the beginning of this year, We have seen the most severe resurgence of COVID-19 since the initial breakout in 2020. As a company with deep experience in tourism, 2NEW has built resilience for coping with short-term industry fluctuations and we are confident that the industry will resume its recovery in the near future. During the past quarter, we continued to focus on product innovation, service quality, all of which will help us to remain competitive as we take on new opportunities and challenges. Even as the pandemic resurgence has temporarily halted most travel infuses them among the public remains high. According to a recent study by a domestic mainstream media outlet, travel ranked at the top of the consumption wish list for consumers aged between 18 to 35 and ranked in the top three categories for consumers about the age of 60. In order to satisfy our customers' demand for travel while complying with pandemic prevention regulations, we are constantly upgrading and innovating our products and sales models. In terms of our products, we have emphasized the development of local tour products for travel within cities and nearby destinations. Leveraging our leader hotel resources, we initiated seasonal product offerings and our hotel plus X product model, such as winter hot springs and the spring float picking in order to provide more device selection of local tour products for customers. Leveraging our resources in the city travel market, We also launched a series of city walk educational themed tour products, which cover museums, zoos, and public gardens. Our product innovations are designed to mirror market trends. Among these, camping has become more popular. We have recently begun offering high quality camping of glamping and RV camping for young customers and families with children. During the May holiday this year, sales of camping-related travel products saw significant growth. In line with our motto of safe booking, safe travel, most of 2NEWS products, especially inter-provincial tools, have adopted the advanced booking and travel confirmation sales model. Customers are able to make discount bookings and later confirm their departure date with the option to receive a full refund in case of cancellation, which also will help drive strong, enthusiastic sales done among customers for traveling in the future. Cuneo has fully leveraged live streaming shows as a case sales channel through the COVID-19 outbreak. We have hosted themed shows for our members' day, as well as shows centered around specific regional travel products, as well as multi-channel live streaming shows featuring outdoor travel and destination recommendations. in addition to our regular daily product promotions. 2NEW's live streaming shows are also an important channel for collecting customer feedback and to help us improve our product offerings. 2NEW has steadfastly adhered to our customer-first principle in providing full-cycle services for customers during the COVID-19 pandemic. Our customer service team has been monitoring the pandemic situation and works closely with our local tour operators to ensure gas safety during travel, providing timely refunds or exchange services during spikes in resurgence. Our customer service team communicates our regular customers on a constant basis and provide two recommendations, especially for discounted products that are available for advance booking. SUNY has gained a great number of loyal customers over the years through our reputation of providing high-quality products and services. And the contribution of our repeat customers To our overall, GMV has been increasing since the pandemic broke out. We will continue to work hard to provide high quality service for our customers and help them with future travel plans. Next, I would like to talk about our ESG development. In terms of products, we adhere to our strategy of supporting agriculture through travel. We collaborated with destinations in remote areas for product development and launched customized travel products especially for them. We also launched sales channels for local specialty products, allowing guests to have authentic local experience while supporting the development of the local tourism economy. Throughout the pandemic, we have placed a great focus on our employees' safety and health. In order to better take care of our local employees who work in different regions in China, we made proper work arrangements in accordance with regional pandemic prevention and control guidelines, such as working remotely from home, and enjoying flexible worksheets. We also implemented regular nucleic-based testing for local staff, especially reception staff at our destinations, to ensure the safety and health of themselves and our guests. We continued to organize team-building activities during the recent pandemic resurgence. and carried out internal trainings and competitions for our core staff and teams to keep them engaged and motivated. We also carried out several recreational activities such as short video contests and outdoor running contests to encourage our employees to stay healthy physically and mentally, in addition to Nielsen volunteers to support the community's dynamic prevention work and services. We remain confident about the future of China's travel industry, even though we are still facing many challenges on the road to full recovery. We are encouraged to see that the COVID-19 inter-province travel guidance was adjusted recently, which narrowed the restrictions from provinces to cities. While the overall travel demand in China continues to rise despite the resurgence of the pandemic, we believe that with patience, and support of our guests and partners, the days of traveling really will return soon. I'll now turn the call over to Anqiang Chen, our financial controller for the Financial Heights.