Tuniu Corporation

Hello and thank you for standing by for 2NEWS2026 Second 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.

Thank you. And welcome to our 2026 Second Quarter Earnings Conference Call. Joining me on the call today are Donald Yu, 2News founder, chairman, and chief executive officer, and Anqiang Chen, 2News financial controller. For today's agenda, management will discuss business updates, operation highlights, and Financial Performance for the second quarter of 2026. 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 the most directly comparable gap 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, Dunde Yu.

Thank you, Mary. Good day, everyone. Welcome to our second quarter 2026 earnings conference call. Supported by favorable policies such as the introduction of spring break, the domestic travel market maintained steady growth in the second quarter. Meanwhile, the overall travel market faced some uncertainties. with certain outbound destinations experiencing headwinds. Despite these challenges, we maintained revenue growth in the second quarter and achieved non-gap profitability for the sixth executive quarter. During the quarter, we continued to execute our diversified Product and Sales Channels Strategy. Guided by customer needs, we further enriched our product offerings across categories, destinations, and price tiers. For our sales channels, we continued to work with a broad range of partners to better reach different customer segments. Let me walk you through some of our key initiatives in more detail. On the product side, as customers increasingly seek more personalized towers and flexible travel options, we have continued to expand and refine our product portfolio. First, we further expanded our product offerings include more small growth tours, private tours, customized tours, self-driving tours, and other travel-related products. More growth tours have been well received by younger travelers for their flexibility and strong value proposition, while private tours have gained popularity among family travelers for their more personalized and private travel experience. To better serve the needs of self-guided travelers, we also expanded our hotel-centric self-guided tour products and broadened our portfolio of other travel-related products, including hotels, car rentals, and destination experiences. Second, in addition to enhancing our new tool products for the mass market and our value-oriented new select series, we introduced a number of premium private tool products during the quarter to meet demand from customers seeking higher quality travel experiences.