Tuniu Corporation

Hello, and thank you for standing by for 2NEWS 2024 Fourth Quarter and Full Year Earnings Conference Calls. 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.

Thank you, and welcome to our 2024 Fourth Quarter and the Full Year Earnings Conference Call. Joining me on the call today are Donald Yu, 2NEWS founder, chairman, and chief executive officer, and Ann Changsheng, 2NEWS financial controller. For today's agenda, management will discuss business updates, operation highlights, and financial performance for the fourth quarter and the fiscal year 2024. Before we continue, I refer you to our State Harbor Statement in Earnings Press Release, which applies to this core, as we will make forward-looking statements. Also, this core includes assistance of certain non-GAAP financial measures. Please refer to our Earnings Release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that unless advice stated All figures mentioned during this conference call are in RMB. I would now like to turn the call over to our funder, chairman, and chief executive officer, Donald Yu.

Thank you, Mary. Good day, everyone. Welcome to our fourth quarter and four-year 2024 earnings conference call. 2024 has been a year filled with achievements and milestones for 2NEW. With the recovery of the tourism market, our business is making steady progress and our profitability continues to grow. On the financial side, In 2024, we achieved our first GAAP profit for the full year since our listing. On a non-GAAP basis, net income grew by over 70% year-over-year, reaching a record high since our IPO. While demonstrating the company's profitability, we also need to share our interim achievements with our shareholders. Therefore, the Board of Directors approved a special cash dividend in March 2025 with approximately $4.2 million allocated for distribution. Additionally, in March 2024, we announced a share repurchase program and have spent over $6.2 million on buybacks throughout the year. In total, we returned approximately $10 million to our shareholders in 2024. For our products, we remain committed to innovation and adopt to involving customer needs. In addition to continuously upgrading our existing products, we launched new products and product lines, such as the new select products, to better serve a wider range of customers. Our commitment to self-serve remains strong. as we focus on customers' needs and strive to deliver high-quality experiences. We implemented initiatives to improve customer satisfaction rates, such as new tools, zero-shopping policy for all of its itineraries, and a new funneling policy for flight tickets. In terms of channels, we proactively embrace new media and continue to strengthen our live streaming presence. At the same time, we collaborated with more online and offline partners to serve our customers and strengthen our capabilities in supply chain products and services. Next, I will provide a more detailed overview of the company's business achievements in 2024. For domestic tools, we saw an increase in demand for private and small-growth tools, as well as more self-guided tools. In response to this trend, we increased our supply of private and small-growth tools. Private tools have become a standalone category on the homepage of the 2NEW app, and our in-house new tool products now feature a significantly larger selection of private and small-growth tools. For self-guided tools, leveraging the company's accumulated strengths in supply chain management we have further increased the supply of fragmented resources in order to offer more flexible arrangement options for customers. In addition to increasing the supply of standalone resources such as flights, hotels, and attraction tickets, we have also launched a variety of day tour products to attract more self-guided travelers who have already arrived at the destination. At the same time, we will continue to leverage 2NEWS advantages in dynamic packaging technology to better serve self-guided travelers. For outbound tours, customers remain focused on destination coverage and the product variety. Many of our new tour customers are experienced travelers who are not taking their first trip abroad. To better serve this segment, we have introduced more in-depth single destination tour products. Additionally, we have expanded our offerings to include new destinations, such as South Africa and the polar regions. For our in-house products, New Tool has built a large loyal customer base with a repurchase rate twice that of regular products. In 2024, transaction volume for New Tool products will be over 30% year-over-year. New Tool has earned us customers' favor and trust by delivering exceptional experience, and we are committed to provide even higher quality products to the customers. Last year, New Tool fully implemented a zero-shopping policy, significantly enhancing the travel experience. This year, we will introduce more premium products, including customized travel itineraries, tailored to customer preferences. In addition, with the growing popularity of travel from lower tier cities and the rise of checklist-style travel among younger generations, we launched the in-house new select product in the third quarter last year. In 2024, Transaction volume from cities outside the Tier 1 cities contributed more than 50% of the total transaction volume. New selected products have gained significant popularity, especially among first-time travelers to new destinations. Due to their highly competitive pricing, This year, we will continue to expand the supply of new selected products, particularly outbound tour options, to meet the growing demand for first-time international travel from customers in lower tier cities. In terms of sales, we have been continuously expanding the diversity of our sales channels As information is increasingly consumed via video content, as opposed to text and images, user habits are also changing. Closing live streams and short videos has become an essential part of daily life. In 2024, we made significant progress in this area. We expanded the variety of live streaming products and the destination coverage, introducing more organized tours and outdoor travel products. We also adjusted the product structure seasonally to meet the diverse needs of customers. In addition, we explored new approaches in our co-organized tour business by experimenting with live streaming directly from travel destinations, which received positive feedback. In 2024, our live streaming channels performed exceptionally well with both transaction and verification volume increasing by over 100% year-over-year. while the verification rate continued to improve. This year, we will continue to leverage our experience and capabilities in live streaming to further explore new media channels. We also made significant progress in expanding our offline and external channels in 2024. The transaction volume of our offline stores grew by over 50% year-over-year. These stores have attracted partners with their diverse product offerings, advanced systems, and promotion policies. At the same time, our offline stores have also helped increase the sales of our in-house brand and contributed to brand promotions. This year, we will continue to open more offline stores, working closely with partners to provide customers with more personalized premium services. In our collaborations with traffic platforms, we attracted customers through a streamlined booking process and a high-quality service experience. By collaborating with external partners, we are able to provide our resources and high-quality services to a broader customer base. For external channels, we will continue to embrace an open and collaborative approach, striving for win-win outcomes with all partners. Finally, regarding technology, we see great potential and opportunities in the combination of large language model agents with tourism. We will test the opportunity and invest in R&D to improve our internal efficiency as well as user experience, enhancing our conversion rate and repurchase rate. Our goal is to provide customers with better solutions and prepare proactively for the evolving market landscape. In summary, 2025 will bring more opportunities and challenges in travel markets. This year, we will focus on product and service upgrade, channel expansion, and technological advancement. We will remain resilient amidst change, seizing opportunities, and achieving high quality business development. In addition, we will leverage new technologies to further improve internal operational efficiency, reduce costs, and achieve sustainable development and profitability goals. I will now turn the call over to Anqiang, our financial controller, for the financial highlights.