Tuniu Corporation

Hello, and thank you for standing by for 2NEWS 2025 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, the Director of Investor Relations, Mary.

Thank you, and welcome to our 2025 first quarter earnings conference call. Joining me on the call today are Donald Yu, two news funder, chairman, and chief executive officer, and Anqiang Shen, two news financial controller. For today's agenda, Management will discuss business updates, operation highlights, and financial performance for the first quarter of 2025. Before we continue, I refer you to our safe harbor statement in the 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 the 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 funder, chairman, and chief executive officer, Donald Yu.

Thank you, Mary. Good day, everyone. Welcome to our first quarter 2025 earnings conference call. In the first quarter, our core business maintained steady growth with revenues from packaged tools growing by 19% year-over-year. The domestic travel market almost treated consistent growth momentum. with a notable surge during this year's spring festival. For outbound tours, despite headwinds faced by some Southeast Asian destinations, long-haul destinations continued to perform well. Thanks to the diversity of our products and destinations, customers had the flexibility to choose between domestic offerings and nearby international options. As a result, our outbound tour transaction volume achieved double-digit year-over-year growth in the first quarter. This year, we have adopted more proactive strategies to respond to changing market demands. First, by leveraging our differentiated products and high-quality services, 2NEW is able to attract premium customers and increase the reporting rate. Also, by capitalizing on our supply chain advantages, we have further reduced procurement costs allowing us to return value to customers and offer more competitively priced products to attract a broader customer base. We remain committed to open collaboration, introducing mutually beneficial policies to attract partners, explore new sales channels, and work closely with the upstream and downstream segments across the industry chain to better serve our customers. Moreover, we are embracing new AI technologies to enhance the customer experience and our internal operational efficiency through innovation. Now, I'd like to walk you through our strategies in more detail. First, differentiated and high-quality products have always been one of the new competitive advantages. Our in-house developed new tool product offers a unique position in the market as a premium organized tool product. Since its launch over a decade ago, Many of Neutro's loyal customers have evolved from first-time travelers to experienced travelers. To meet the evolving demands of our customers, we continue to enhance the travel experience by implementing a zero-shopping policy throughout the trip, and some even including ultra-luxury hotels and machine-starred dining. Meanwhile, we are expanding the variety of destinations and product offerings. In April this year, new tour launched its first tour to the three countries of the Caucasus region, which received a 100% satisfaction rate. In response to increasingly diverse customer needs, we have introduced a wider range of products offering good value for money to attract more price sensitive travelers. For example, our new selected products have expanded the outbound tour offerings to cover a broader array of international destinations. providing better options for customers, valuing cost effectiveness. With more competitive pricing, customers can now explore additional destinations within the same budget, an option that strongly appeals to travel fans, particularly younger vans. In the first quarter, Transaction volume for our new select products increased by over 80% compared to the previous quarter. In terms of our sales, we continue to explore and expand into a diverse range of channels. In the first quarter, our live streaming channels maintained strong growth. with both transaction and verification volume, achieving double-digit year-over-year growth. The contribution of live streaming to the company's total transaction volume increased from 10% in the first quarter last year to over 15% this year. In 2025, we expect our live streaming product offerings beyond the traditional hotel plus scenic spot packages to include personalized services such as photography and private tour guides, catering to more niche customer needs. In terms of packaged tour sales, we continue to promote destination-based live streaming. In March, our in-house live streaming shows partnered with several travel influencers to launch a 21-day on-site live streaming campaign across 10 islands in the Maldives. This campaign generated over RMB 100 million in total payment volume. helping Maldives-related products reach Chinese customers more effectively and boosting overall interest in travel to the Maldives. Regarding offline store expansion, as of the end of the first quarter, Sunil had opened nearly 300 offline stores. Primarily located in high demand, source markets, popular tourist destinations, and the major transportation car cities. For example, in March of this year, we launched 10 new stores in a single day in Chengdu. Our offline stores feature travel products tailored for in-person promotion. helping to create a seamless integration between online and offline services. We also organize in-store events and other marketing activities to strengthen customer engagement and loyalty. Additionally, these offline stores support our localized procurement efforts and allow us to share resources and grow with our supplier partners, contributing to the coordinated development of the local tourism industry. In addition, we are actively developing sales channels such as traffic platforms and corporate clients, offering tailored products to meet their specific needs. For example, sales of single items such as flight tickets and hotel bookings have grown rapidly on traffic platforms. For corporate clients, we provide customized growth tools as well as individual and family vacation packages to complement traditional business travel addressing both corporate needs, including business trips and team building, as well as personal location demands. In terms of technology, in early April, Zunio launched our self-developed travel AI agent, AI Assistant Xiaoniu. The Assistant Xiaoniu integrates vertical travel application scenarios with open-source large language models to provide customers with well-sourced services, including smart search, automated price comparisons, personalized recommendations, and dynamic packaging. Once customers find a product they like, we can book it directly, eliminating pop-up bundling offers and ensuring a transparent and efficient booking experience. During this year's Labor Day holiday, we observed a noticeable increase in user engagement with our AI assistants, particularly in searches for flights, train tickets, and hotel bookings. QNU has assembled a team of professionals with deep expertise in both technology and the travel industry, enabling our R&D efforts to more effectively address key customer pain points. Looking ahead, customers will be able to leverage AI to plan personalized itineraries with greater ease, making customized travel more convenient, efficient, and accessible. In conclusion, 2NEW remains firmly committed to our mission of making travel easier by staying closely aligned with evolving customer needs and continuously expanding our product offerings and sales channel options. With the support of AI technology, our service is becoming more intelligent, efficient, and transparent. We will continue to drive innovation in both products and technology to enhance the customer experience and satisfaction, unlock the company's growth potential, and pursue long-term sustainable development. I will now turn the call over to Anton, our financial controller, for the financial highlights.