Tuniu Corporation

Hello, and thank you for standing by for 10U's 2025 Third Quarter Earnings Conference Call. At this time, all participants are in 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 Investment Relations, Mary. Please go ahead.

Thank you, and welcome to our 2025 Third Quarter Earnings Conference call. Joining me on the call today are Donald Yu, Juneau's founder, chairman, and chief executive officer, and Anqiang Chen, Juneau's financial controller. For today's agenda, management will discuss business updates, operation highlights, and financial performance for the third 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. These 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 founder, chairman, and chief executive officer, Donald Yu.

Thank you, Mary. Good day, everyone. Welcome to our third quarter 2025 earnings conference call. In the third quarter, with the peak travel season approaching, Demand for travel accelerated and the tourism industry demonstrated thriving growth. 2NEW also recorded year-over-year growth in both transaction volume and the number of trips booked. From a destination perspective, both domestic and outbound travel achieved year-over-year growth in transaction volume and the number of trips booked. In the third quarter, net revenues increased by 9% year-over-year, with revenues from our core packaged tool products growing by 12%. Since the beginning of this year, quarterly revenues from our packaged tools have consistently achieved double-digit year-over-year growth. We also continued to deliver quarterly profitability on both a GAAP and a non-GAAP basis. As customer needs continue to evolve this quarter, we tapped into our core capabilities across products, supply chain, and sales channels to better tailor our portfolio to market demand In addition, we further enhanced our operational efficiency by leveraging technology tools. Next, I will elaborate in detail on some of our key initiatives. In terms of products, we continue to focus on customer needs and enhance our offerings to meet their involving expectations. for experienced travelers and repeat customers who tend to prioritize the travel experience and usually have more time and budget. We leverage the company's strength in outbound tourism to introduce a wider range of niche destination products. For example, in October, our new tour launched its first organized tour to South America. Our new tour series now spans all major regions across Asia, Europe, Africa, the Americas, and Oceania. In addition, to meet the surge in leader travel demand during the summer, we expanded our long-haul island offerings, including destinations such as Seychelles and Mauritius. In the third quarter, transaction volume for these long-haul island products grew by several times year-over-year. We fully leveraged our supply chain advantages to continuously expand destinations for our new select products and attract customers with compelling high-value offerings. For key domestic destinations, such as Guizhou, we adopted on-site live streaming to offer customers a more immersive experience. In the outbound travel market, we expanded our destination coverage and offered more price competitive options, helping value conscious customers reach their preferred destinations on a smaller budget. In the third quarter, transaction volume for our new select outbound travel products increased by more than 100% year-over-year. In response to the growing number of self-guided travelers in China, we continue to leverage 2NEWS advantages in dynamic packaging technology to expand our HotelPlusX product offerings. Our self-drive toward products now cover all provinces in Chinese mainland. During the National Day holiday this year, Transaction volume for our self-drive tool products increased by five times year-over-year. For our sales channels, live streaming is playing an increasingly important role for our sales. In the third quarter, both payment and verification volume through our live streaming channels continued to record to record double-digit year-over-year growth while maintaining single-quarter profitability. On the product side, we fully leveraged our supply chain strength during the peak season to maintain a wide, reliable product range and deliver price-competitive offerings. In terms of format, We expanded our outdoor live streaming activities, including inviting live streamers to broadcast live from destination sites. We formed a professional verification team and specialized system support, which together have improved efficiency across the entire process from product to supply to verification. In terms of external partnerships, we collaborate with top-tier live streamers to create synergies. And we work closely with mid- and long-tier creators, providing them with support and resources so we can grow together. We are pleased to see that more and more external live streamers are choosing partners with 2NEW without even becoming our exclusive live streamers, focusing solely on selling our products. Offline stores remain an essential part of our overall sales and service network. Their personalized face-to-face service makes them particularly popular among senior travelers and community-based customers. who are also key customer segments for our organized 12 products. In the third quarter, we continued to expand our offline store footprint, adding locations in major cities as popular tourist destinations and key transportation hubs. In September, we opened two flagship stores in Xi'an on the same day to better service to better serve customers, preparing for National Day holiday travel. In the third quarter, transaction volume from offline stores increased by nearly 20% year-over-year. The summer season is the peak period for leader travel, and while serving individual travelers, we also continue to provide high-quality services to corporate clients. In addition to business travel bookings, we leverage our extensive experience and skills in the leader travel sector to offer tailored vacation products to corporate clients. We provide customized mind trips for some corporate clients and further extended our products and services to offer their employees with a range of personal and family vocation options. In the third quarter, transaction volume from corporate customers also recorded double-digit year-over-year growth. In terms of technology, various technology tools and methodologies have been embedded across all aspects of our operations and management, including product development and marketing, supply chain management, and financial management. This has strengthened communication and collaboration between internal and external teams and further improved our operational efficiency. We will continue to explore advanced technologies such as dynamic packaging and AI applications and apply them across more scenarios to further enhance our operational efficiency and profitability. We were pleased to see the robust travel demand during this year's National Day holiday, supported by several factors such as the extended holiday period, Although the industry typically enters a low season in the fourth quarter, we continue to see active demand for off-peak travel, ice and snow trips, and other niche segments. We will continue to seize these market opportunities by strengthening product development and adjusting our marketing efforts for seasonal With a richer, more distinctive, and more value for many product portfolios, we aim to attract both new and existing customers while also preparing fully for the peak travel period during the Chinese New Year holiday. I will now turn the call over to Anqiang, our financial controller, for the financial highlights.