Full Truck Alliance Co. Ltd.

Ladies and gentlemen, good day and welcome to Full Truck Alliance's second quarter 2025 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mao Mao, Head of Investor Relations. Please go ahead.

Thank you, Operator. Please note that today's discussion will contain forward-looking statements. relating to the company's future performance, which are intended to qualify for the safe harbor from liability as established by the U.S. Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in the Saturday's end discussion. A general discussion of the risk factors that could affect FDA's business and financial results is included in certain filings of the company with the SEC. The company does not undertake any obligation to update this forward-looking information except as required by law. During today's call, management will also discuss certain gap financial measures for comparison purpose only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today. Joining us today on the call from FTA's senior management are Mr. Hui Zhang, our founder, chairman, and CEO, and Mr. Simon Tsai, our chief financing and investment officer. Management will begin with prepared remarks and the call will conclude with a Q&A session. As a reminder, this conference is being recorded. In addition, a webcast replay of this call will be available on FTA's investor relations website at ir.fulltrackalliance.com. I will now turn the call over to our founder, chairman, and CEO, Mr. Zhang. Please go ahead, sir.

大家好,欢迎各位参加满堡2025年第二季度业绩电话会。 新年二季度面对外部环境的机遇和挑战。 The full-scale business has shown a strong development resilience. We insist on digitizing and intelligent promotion of the public logistics industry to this effect system. By increasing the exchange rate and optimizing the user experience, the unit size of the full-scale platform is rising again. This quarter, the exchange rate has reached 60.8 million units, which is 23.8% growth. This reflects the continuous upgrade of the digital logistics to the traditional online logistics trading model.

Hello everyone, and thank you for joining us today for our second quarter 2025 earnings conference call. In the second quarter, FDA demonstrated remarkable resilience in navigating both opportunities and challenges in the external environment. By leveraging digitalization and intelligent technologies, we continued to help shippers reduce logistics costs and enhance operational efficiency across the road freight industry. Through improvements in fulfillment efficiency and optimization of the user experience, our platform reached a new milestone with fulfilled orders totaling 60.8 million, a 23.8% year-over-year increase, underscoring the ongoing shift from offline to online logistics operations.

本季度我们的各项运营指标开始实现了突破, 分别体现在用户增长,运力和匹配,以及技术负能上。 First of all, in the face of the potential users of 30 million small and medium-sized goods, we insist on long-term investment in the brand and online marketing. At the same time, through the economic operation of different industries and categories, we have further optimized the user experience of old customers looking for a car to travel all over the world. In the end, the average number of goods in the second quarter broke 3.16 million people, which is 19.3% of the total growth. At the same time, the number of members of the goods group also broke 1.2 million people.

Our key operating matrix also reached record highs in this quarter, reflecting meaningful progress across shipper growth, trucker capacity, and matching efficiency, as well as technology enablement. On the user front, we continued to invest in long-term brand building and online user acquisition among the 30 million potential SME shippers nationwide. Simultaneously, our refined operations across cargo categories optimized the shipping concerns for existing users throughout the order placement, freight matching, and fulfillment process. As a result, average shipper MAUs in the second quarter exceeded 3.16 million, a 19.3% year-over-year increase. while Shipper members surpassed 1.2 million, demonstrating enhanced user engagement and stickiness. Notably, the order contribution from direct shippers rose to 53%, reflecting continued optimization of our user base.

在运力生态和匹配效率方面, 本纪录我们继续推进司机行为分和司机会员机制, 牵引司机提升服务质量, 导向服务好多接单更赚钱。 To further boost our trucker capacity and enhance matching efficiency,

we advanced our trucker credit rating and membership program, encouraging service quality improvement under the guiding principle of excellent service, more orders, higher income for truckers. We also strengthened protections and support for truckers, enhancing their sense of value and recognition. By the end of the quarter, the number of active truckers fulfilling orders over the past 12 months rose to 4.34 million, up approximately 9% year-over-year, while trucker membership approached 1 million, reflecting rising engagement and loyalty. Against this backdrop, our fulfillment rate reached a new high of 40.7%, an improvement of approximately 7 percentage points year-over-year.

In terms of technical replenishment, we focus on the core points of public logistics. Based on a wide range of unique logistics scene data, we promote AI replenishment from transaction to contract, from sales to service operations and other key business segments to improve user experience and operation efficiency. Based on high-quality business operations, the financial performance of the organization is also outstanding. The total revenue of the corporation reached 3.24 billion yuan, which increased by 17.2%. Among them, the transaction service revenue reached 13.3 billion yuan, which increased by 39.4%. On the technology front, we remain focused on addressing the core pain points in the freight matching process.

Leveraging our vast and proprietary transaction data, we advanced the AI-driven enablement across multiple key process, from matching to fulfillment externally and from sales and marketing to customer service and operations internally, enhancing both the overall user experience and our operational efficiency. Driven by our disciplined, high-quality operations, we delivered another quarter of exceptional financial results. Total net revenue reached RMB $3.24 billion, an increase of 17.2% year-over-year, with transaction service revenues surging 39.4% year-over-year to RMB $1.33 billion. Nungap adjusted operating income reached RMB $1.23 billion, up 76% year-over-year, while Nungap adjusted net income rose 39.3% year-over-year to RMB $1.35 billion.

Looking ahead, as a pioneer of new quality productive forces in the logistics sector, FDA will remain relentlessly user-centric.

We will continue to strengthen the healthy development of both our shipper and trucker ecosystems, expand into new markets, and drive the industry's digital and intelligent transformation. Through these efforts, we aim to empower enterprises with greater logistics competitiveness. Thank you all once again. Now I will pass the call over to Simon, who will provide an update on our second quarter's business progress and the financial results.

Thank you, Mr. Zhang. Thank you all for joining today's earnings conference call. I will now provide an overview of our operational highlights and financial results for the second quarter of 2025. Let's start with our operations. We continue to deliver steady and robust growth, once again setting new records, of course, our key operating metrics this quarter. Fulfilled orders rose to 60.8 million, up 23.8% year-over-year. consistently outpacing broader freight industry trends. This performance was driven by the expansion of our shipper base and ongoing improvements in fulfillment efficiency. Our fulfillment rate reached a historical high of 40.7% in the second quarter, an increase of nearly 7 percentage points from the prior year, marking yet another record for our platform. Notably, the average fulfillment rate among low and medium frequency direct shippers approached 60%, up almost 10 percentage points year over year. Orders from these user groups now account for roughly 53% of total fulfilled orders, an increase from last quarter, reflecting ongoing optimization of our shipper user structure and our ecosystem's growing strengths. These breakthrough results underscore the effectiveness of our differentiated operational strategy and lay a strong foundation for further service quality enhancements. Moving to our user base, our average shipper MAUs reached 3.16 million in the second quarter, up 19.3% year-over-year. Total shipper members surpassed 1.2 million by quarter end, another all-time high driven primarily by growth in low and medium frequency direct shippers. Since its launch early last year, our 288 membership program has been well received, with average monthly active members exceeding 300,000 in the second quarter. Our 12-month rolling retention rate for shipper members remained above 80%, demonstrating our shippers' communities strong loyalty and engagement. Turning to the trucker side, the number of active truckers fulfilling orders through our platform over the past 12 months increased to 4.34 million, hitting a record high. Meanwhile, the next month's retention rate for truckers who responded to orders consistently exceeded 85%. During the quarter, we further strengthened our trucker infrastructure, significantly enhancing order tracking completeness paving the way for high operational efficiency and a better fulfillment experience for truckers. By offering high-quality freight orders along with improved guarantees and benefits, we grew our mini-member trucker base to over 1 million. These members' order acceptance frequency increased substantially, driving parallel growth in business scale and trucker engagement while further enhancing trucker stickiness. Shifting now to monetization, supported by the dual engine of order growth and improved monetization efficiency, revenues from our transaction service achieved another quarter of high-quality growth, rising 39.4% year-over-year to RMB 1.33 billion. Monetized order penetration reached 86.7%, up more than 5 percentage points from the prior year, while average monetization per order increased to RMB 25.2 from 23.9. Highly targeted operations within our service ecosystems are consistently strengthening our monetization capabilities. Leveraging a more sophisticated credit rating system and tiered incentive programs for truckers, we effectively addressed the diversified needs of both high volume and long tail shippers. These efforts safeguarded trucker income and retention while also enhancing both order volumes and monetization efficiency. Looking ahead, we will continue to leverage our intelligent freight matching system and flexible subsidy strategies to further tap into high value users' monetization potentials. In parallel, our refined tiered approach to trucker operations will help accelerate the build-up of strategic core transportation capacity, fostering a virtuous cycle of healthy user growth and sustained improvements in monetization efficiency. We believe these initiatives will further strengthen our momentum in 2025, delivering long-term value for our platform and stakeholders. Now I'd like to provide a brief overview of our 2025 second quarter financial results. Our total net revenues in the second quarter were RMB $3,239.1 million, representing a 17.2% increase year over year, primarily attributable to an increase in revenues from freight matching services. Net revenues from freight matching services including service fees from freight brokerage models, membership fees from listing models, and commissions from transaction services were RMB $2,747.9 million in the second quarter, representing an increase of 18% year-over-year, primarily due to the rapid increase in transaction service revenues. Revenues from the freight brokerage service in the second quarter were RMB 1,177.9 million, representing an increase of 1.1% year-over-year, primarily attributed to an increase in service fee rate, partially offset by a decrease in transaction volume. Revenues from the freight listing service in the second quarter were RMB 242.9 million, up 14.5% year-over-year, primarily due to the growing number of total paying members. Revenues from the transaction service in the second quarter, or RMB, $1,327.1 million, up 39.4% year-over-year, primarily driven by increased order volume, penetration rate, and per-order transaction service fee. Revenues from Value Added Services in the second quarter were RMB $491.2 million, up 12.8% year over year. The increase was primarily due to growing demand for our credit solutions. Second quarter cost of revenues was RMB $1,238.4 million, a decrease of 5.6% from RMB $1,312.1 million in the same period of 2024. The decrease was primarily due to decreases in VAT-related tax surcharges and other tax costs net of grants from government authorities. And these tax-related costs net of government grants totaled RMB 1 billion and 87.1 million, representing a decrease of 7.6% from RMB 1 billion, 176.3 million in the same period of 2024. primarily due to a decrease in tax causes net of government refunds related to our freight brokerage service. Our sales and marketing expenses in the second quarter were RMB 433.8 million compared with RMB 372.3 million in the same period of 2024. The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions. General and administrative expenses in the second quarter were RMB $170.3 million compared with RMB $219.2 million in the same period of 2024. The decrease was primarily due to lower share-based compensation expenses. R&D expenses in the second quarter were RMB $189.6 million compared with RMB and 32.1 million in the same period of 2024. The decrease was primarily due to lower salary and benefits expenses. Income from operations in the second quarter was RMB 1,139.6 million, an increase of 101.6% from RMB 565.4 million in the same period of 2024. Net income in the second quarter was RMB 1,264.8 million, an increase of 50.5% from RMB 840.5 million in the same period of 2024. Under non-GAAP measures, our adjusted operating income in the second quarter was RMB 1,230.1 million, an increase of 76% from RMB 699 million in the same period of 2024. Our adjusted net income in the second quarter was RMB 1,352.1 million, an increase of 39.3% from RMB 970.9 million in the same period of 2024. Basic income per ADS was RMB 1.2 in the second quarter, compared with RMB 0.79 in the same period of 2024. Non-GAAP adjusted Basic net income per ADS was RMB 1.28 in the second quarter of 2025, compared with RMB 0.92 in the same period of 2024. Non-GAAP adjusted diluted net income per ADS was RMB 1.27 in the second quarter, compared with RMB 0.91 in the same period of 2024. As of June 30th, 2025, the company had cash and cash equivalents, restricted cash, short-term investment, long-term time deposit, and wealth management products, with maturities over one year of RMB 29.5 billion in total, compared with RMB 29.2 billion as of December 31st, 2024. As stated in our announcement on August 1st, to ensure the sustainable development of our freight brokerage business, the company has decided to increase the freight brokerage service fee starting in August, aiming to reduce reliance on government subsidies and mitigate associated uncertainties. This adjustment may lead to higher costs for shippers, and we anticipate a significant decline in freight brokerage transaction volume beginning in the quarter ending September 30, 2025. Consequently, revenues from freight brokerage business are expected to decrease while costs are likely to rise, which may exert some pressure on profitability. That said, we expect the shift in the freight brokerage business will have limited impact on our transaction service business. Based on this outlook, we expect our total net revenues to be between RMB $3 billion 3.07 billion and RMB 3.17 billion for the third quarter of 2025, representing a year-over-year growth rate of approximately 1.3% to 4.6%. Including freight brokerage service, net revenues are expected to range from RMB 2.16 billion to RMB 2.26 billion, reflecting an estimated year-over-year growth rate of 23.4% to 29.1%. These forecasts are based on our current and preliminary view of the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof. That concludes our prepared remarks. We would now like to open the call to Q&A. Operator, please go ahead.

Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. Your first question comes from Eddie Wang with Morgan Stanley. Please go ahead.

Mr. Zhang, Ms. Simon, thank you for your question. First of all, congratulations on the very strong performance of the company's second quarter. My question is about the entire turnover. In the second quarter, we saw that the turnover order of the platform increased by 23.8%, and the turnover rate increased to 40.7%. Both companies continue to have a very strong growth trend. Thank you, management, for taking my question. My question is regarding the fulfilled orders. We have seen that the fulfilled orders increased by 24% year-over-year in the second quarter and the fulfillment rate increased to around 41% both maintain very strong growth momentum. What are the key factors driving this growth? How do you view the fulfilled order volume growth in the second half of this year, as well as for the full year? Thank you.

Thank you, Eddie. In the past second quarter, our fulfilled orders continued to increase steadily, significantly outperforming the broader freight market. We attribute this strong growth to three key elements. Our ongoing user base extension, the optimization of shipper user structure in our product and service upgrades. First, the consistently rapid expansion of both shippers and trucker user base has laid a solid foundation for auto growth. Shipper side, rising demand among the SME owners to reduce costs and improve efficiency along with increased appetite for digital and intelligent transformation has accelerated the shift of shippers from offline to online. Our average monthly active shippers exceeded 3.16 million in the second quarter, hitting an all-time high. On the trucker side, more truckers who traditionally operated offline took orders through online platforms effectively boosting transportation capacity. The continued expansion on both the supply and demand sides has further supported order growth. And second, the continued optimization of our shipper user base has driven stronger order stickiness. Our high-quality shipper segments, who are mostly low and medium frequency direct shippers, have delivered consistent growth in average fulfilled orders per user thanks to ongoing platform service refinements reflecting stronger retention and stickiness. The order contribution of direct shipper further increased to 53% in the second quarter. That is up four percentage points year over year. In the meantime, our average fulfillment rate for these direct shippers surpassed 60% threshold for the first time. This user mix progress was a key structural driver of the overall increase in order volume and fulfillment rates. Thirdly, our further upgraded products and operational strategies have strengthened the certainty level of order fulfillment. For example, in the second quarter, we rolled out an intelligent matching system that prioritized dispatching orders to truckers closest to the shipping location. before gradually expanding outwards. This close-to-far strategy effectively cut down matching time and improved the trucker's order response efficiency and fulfillment reliability. Meanwhile, on the shipper side, we have fine-tuned our shipper information intake process, helping truckers get a clearer and more complete picture of the cargo before accepting orders, which has reduced cancellation caused by information gaps. For the full year, we remain optimistic about the continued growth in our fulfilled orders. While the macro uncertainties are likely to persist in the second half, we feel our relatively positive outlook is justified given our leading edge and strong market position in the freight matching service and the online penetration is still low. We will continue optimizing user structure and enhancing service standards to keep driving higher quality order conversions while also refining our product and service corporations to boost user engagement and retention among small and medium-sized shippers and core trucker groups. We're confident these efforts will further solidify our platform's industry leadership and bring us closer to our full-year order growth target. Thank you.

Thank you. Your next question comes from Charlie Chen with China Renaissance. Please go ahead.

Thank you, Manager Chen, for giving me this opportunity to ask a question. Congratulations to the company on another successful quarter in the second quarter. I noticed that in the second quarter, the shareholder's monthly turnover is now 3.16 million, which is 19.3% higher than before. I would like to know what the main driving factor behind this is. Thanks, management, to take my questions. In the second quarter, the number of monthly active shippers reached 3.16 million, representing a year-over-year growth of 19.3%. What are the main drivers behind this growth? And could you brief us on the progress of the shipper member business in the second quarter? Thank you.

Thank you Charlie. In the second quarter, the number of monthly active shippers maintained a solid growth trajectory we have observed in the past few quarters. This momentum was primarily driven by improved user acquisition efficiency and consistent enhancement to product experience. First, we continued to optimize our user acquisition strategy. We cut back on low conversion marketing placement channels and shifted resources to high conversion channels. such as online app store advertising and achieving better ROI within a controlled budget. Newshippers' willingness to engage and the conversion rate of their first postings to fulfillment both improved significantly, driving ongoing improvements in the quality of new users. Second, our efforts to increase engagement and retention among existing users contributed to the sustained MAU growth. We refined key features such as trucker trajectory completeness and real-time trucker locations in enhancing shippers' confidence in our fulfillment capabilities. This boosted both overall shipment frequency and fulfillment rates, elevating users' stickiness. Sequentially, our shipper MAU growth eased slightly quarter over quarter, mainly due to reduced activity among intermediary 1688 member shippers. As we stayed more focused on serving direct shippers and strengthen our platform's service capabilities, fulfilling experience and matching efficiency, more direct shippers opt to post orders directly onto our platform, reducing the role of intermediary brokers. This shift was essentially an improvement in our platform's ecosystem's quality, marking progress towards a more sustained shipper usage cluster. Regarding membership programs, the number of shipper members continued to steadily increase in the second quarter, with existing shipper members hitting 1.21 million by quarter end. This growth was primarily driven by our ongoing enhancements to our membership programs, effective execution of our tiered pricing strategies, and stable retention among existing members. The rapid growth of many member shippers remained the primary driver of shipper member growth. Promotion for our 288 membership program effectively lowered initial payment threshold, driving first-time conversions among low and median frequency direct shippers. Data shows that our tiered approach to member operations has started to pay off, notably in the second quarter among 288 members who used up their shipments. after shipment allowance and choose to renew, nearly 30% upgraded to the 688 membership, demonstrating users increasing trust and reliance on our platform services. In the meantime, retention among existing shipper members remained stable. As of the end of the second quarter, our 12-month rolling retention rate for shipper members remained above 80%. This sustained high level over multiple quarters reflects our continuous efforts to improve member experience. Looking ahead, we will continue to focus on high quality direct shipper operations, expanding the share of core users while naturally phasing out intermediary shippers. In terms of the membership program, we will further enhance renewal rates for many member shippers and encourage upgrades to higher tier members. leveraging our tiered approach to members, operations, and targeted benefits. This will enable us to boost overall payment rates and user lifecycle value, fueling our platforms, other growth, and enhancing transaction quality. Thank you.

Thank you. Your next question comes from Wenji Chang with CICC. Please go ahead.

Thank you management for taking my question. We know that in early July, Several major domestic online freight platforms have jointly signed the industry self-regulation convention. Under the context, what measures have you put in place?

Thank you, Wenjie. That's a good question. The industry self-regulation convention aimed to protect truckers' legitimate rights and foster a healthier, more sustainable industry ecosystem. Our platform responded swiftly with supplementary guidance and various measures aimed at helping truckers take orders confidently and receive payment promptly and operate with the peace of mind. In terms of freightway protection, we strengthened our oversight of shippers and provided truckers with robust support in resolving payment issues through both customer service and legal channels. We have also expanded our freight rate protection program for eligible trucker members. For orders that are not settled on time, the platform will advance or partially cover payments per established rules, ensuring that truckers' cash flow is more stable and predictable. To improve transaction fairness, we have taken steps to curb market-disrupting behaviors such as malicious order flipping, fake order taking, and frequent cancellations. Leveraging algorithm monitoring and optimization, we're able to block ultra-low priced or otherwise unreasonable freight resources, helping safeguard truckers' earnings. Shippers or truckers who violate platform rules may face account suspension or blacklisting. At the same time, we have made reporting channels more accessible, encouraging truckers to share tips and help maintain a transparent, fair trading environment. Finally, we are enhancing communication and feedback mechanism by regularly hosting trucker discussion panels in person where truckers can share their thoughts on what matters most to them, including rights protection and rule optimization. We'll also gradually open channels for truckers to submit reports, publicly share feedback, and track resolution so we can ensure closure of reported issues. These initiatives are designed to reinforce truckers' sense of security, satisfaction, and trust when operating on our platform while fostering a stable, long-lasting partnership between the platform and the trucker community.

Your next question comes from Yuan Liao with Citix.

Please go ahead. thanks management for taking my questions. Congrats for the strong results in second quarter. And we see that the company adjusted its freight brokerage service on August 1st. So what operational changes have been made in them? And do you observe any user behavior shift? and how should we view the future prospects and the financial contribution of the Ma Yunbao business? Thank you.

Thank you. In early August, in response to the upcoming cancellation of government grants, we promptly increased the fee rate for freight brokerage service to between 10% to 11% to cover the increased tax costs and other operating costs related to the business. At the operational level, we have been focused on strengthening existing customer communication and retention with emphasis on ensuring a seamless experience for shippers placing, invoicing, and also freight matching orders. At the same time, we have continued to enhance our freight matching services to maintain stable fulfillment performance. Early observations suggest that the retention of these users remain broadly in line with our expectation following the fee rate adjustment. confirming the core value of our platform's freight matching service in driving user engagement and loyalty. On group level, we believe the adjustments to our freight brokerage business will have limited impact on other freight matching service. We expect that as other platforms who provided similar freight brokerage services complete fee rate adjustments sooner or later, those smaller players with limited value add other than low priced invoice and service will exit the market eventually. This is likely to bring some users back to the FTA and support a new wave of consolidation in the freight sector. Further highlighting the core value of our platform delivers to both shippers and truckers. From a financial standpoint, We believe the reduced profit contribution of freight brokerage will, over the long run, help us optimize our revenue structure and key operating metrics, including profitability. It will also reduce cash flow uncertainty arising from receivable local government grants, allowing our earnings to more accurately reflect the true value of our core operations. and providing a stronger foundation for sustainable revenue and profit growth in the future. Thank you.

Your next question comes from Richie Sun with HSBC. Please go ahead.

Hello, Mr. Director. Thank you for answering my question. I would like to ask about the progress of the two-week car industry. Thank you, management, for taking my question. I want to ask about the entrusted shipment business. So how did this segment perform in the second quarter? And on the operations side, what were the key initiatives involved? Thank you.

Thank you, Richie. Since the beginning of the second quarter, we have reshuffled our entrusted shipment service as part of a broader business strategy optimization. Starting in April, we streamlined product offerings by discontinuing the entrusted shipment carpooling service and focusing exclusively on the full truckload transactions under the entrusted shipment segment. This shift was driven by two considerations. First, from a product positioning perspective, the entrusted shipment business is built around providing a high-quality, highly reliable transportation experience for shippers with stringent requirements for timeliness and stability. In contrast, lessen truckload carpooling services are primarily cost-driven, characterized by lower freight rates and less certainty in fulfillment. This inherent mismatch with our brand positioning to reshuffle the company service and concentrate on our resources on food truck load offering and further enhancing the premium image of the entrusted shipment segment. Second, from an operational efficiency standpoint, food truck load orders in the entrusted shipment business generally achieve higher freight rates and stronger fulfillment performance, making them more attractive to truckers. This advantage was amplified in May when we fully implemented the price consistency mechanism, under which freight rates for entrusted shipment orders are notably higher than standard freight orders. The resulting income potential has increased trucker engagement and expanded the availability of high-quality transportation capacity on the platform. While the restructuring of services offering under the Entrusted Shipment Program led to a short-term slowdown in auto volume growth, we believe this strategic adjustment will, over the medium to long term, strengthen user mindsets with premium brand positioning creating differentiated competitive advantages and help cultivate a higher quality ecosystem of both shippers and truckers. On the monetization front, The premium pricing strategy has created a more favorable revenue environment and improved the stability in revenues from transaction service. Looking ahead, we will continue refining the shipment business model, focusing on the dual engines of efficient matching and premium service to further enhance user experience, deepen platform engagement, and solidify its role as a core pillar of our product portfolio. Thank you.

And that concludes the question and answer session. I would like to turn the conference back over to management for any additional or closing comments.

Thank you once again for joining us today. If you have any further questions, please feel free to contact us at Full Truck Alliance directly or TPG Investor Relations. Have a good day.