Trip.com Group Ltd (TCOM) 2020 Q4 法說會逐字稿

Thank you for standing by, and welcome to the Trip.com Group 2020 Q4 Earnings Conference Call. (Operator Instructions)

感謝您的耐心等待，歡迎參加攜程集團2020年第四季業績電話會議。 （操作員說明）

I would now like to hand the conference over to Michelle Qi, Senior Director. Please go ahead.

現在我想將會議交給資深總監 Michelle Qi。請繼續。

Thank you. Good morning, and welcome to Trip.com Group's 2020 Q4 Earnings Conference Call. Joining me today on the call are Mr. James Liang, Executive Chairman of the Board; Ms. Jane Sun, Chief Executive Officer; and Ms. Cindy Wang, Chief Financial Officer.

謝謝。早安，歡迎參加攜程集團2020年第四季業績電話會議。今天與我一起參加電話會議的是董事會執行主席梁建章先生；孫潔女士，執行長；王欣迪女士，財務長。

During this call, we will discuss our future outlook and performance, which are forward-looking statements made under the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in Trip.com Group's public filings with the Securities and Exchange Commission. Trip.com Group does not undertake any obligation to update any forward-looking statements except as required under applicable law.

在本次電話會議中，我們將討論我們的未來前景和業績，這些前瞻性陳述是根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的。前瞻性陳述涉及固有風險和不確定性。因此，我們的結果可能與今天表達的觀點有重大差異。 Trip.com 集團向美國證券交易委員會提交的公開文件中概述了一些潛在的風險和不確定性。除適用法律要求外，攜程集團不承擔任何更新任何前瞻性聲明的義務。

James, Jane and Cindy will share our strategy and business update, operating highlights and financial performance for the fourth quarter of 2020 as well as outlook for the first quarter of 2021. After the prepared remarks, we will have a Q&A session.

James、Jane 和 Cindy 將分享我們的策略和業務更新、2020 年第四季度的營運亮點和財務業績以及 2021 年第一季的展望。在準備好的發言後，我們將進行問答環節。

With that, I will turn the call over to James. James, please.

這樣，我就把電話轉給詹姆斯。詹姆斯，請。

Thank you, Michelle. Thank you, everyone, for joining us on the call today.

謝謝你，米歇爾。謝謝大家今天加入我們的電話會議。

Looking back at 2020, it was a year filled with both challenges and opportunities. Despite the negative impact of the pandemic, we have continued to innovate our products, improve our service and strengthening collaboration with our partners. Such results demonstrated our strong resilience and helped to make us stronger as a company. As a result, we further gained market share across our product lines as domestic China maintained a strong recovery momentum throughout the year. We are fully prepared to take additional market share in upcoming global recovery.

回顧2020年，是挑戰與機會並存的一年。儘管受到疫情的負面影響，我們仍持續創新產品、改善服務並加強與合作夥伴的合作。這些結果證明了我們強大的韌性，有助於使我們作為一家公司變得更強大。因此，在中國國內全年保持強勁復甦勢頭的情況下，我們進一步提高了各產品線的市場份額。我們已做好充分準備，在即將到來的全球復甦中佔據更多市場份額。

Going forward, we'll continue to focus on the domestic market in terms of supply chain, product innovation, content capabilities, quality and technology. At the same time, we are pushing ahead with our global ambition for international travel recovery and seeking for opportunities in the long run. Our focused efforts have not only in our products gained additional market share during the pandemic, but also laid solid foundation for new growth drivers beyond COVID.

未來，我們將在供應鏈、產品創新、內容能力、品質和技術等方面繼續聚焦國內市場。同時，我們正在推動國際旅行復甦的全球雄心，並尋求長期機會。我們的專注努力，不僅讓我們的產品在疫情期間獲得了更多的市場份額，也為疫情以外的新增長點奠定了堅實的基礎。

Today, I would like to shed some light on the latter. First of all, product supply chain is our core competence which have built over the decades of operation. Therefore, we are best positioned to expand the breadth and depth of our product offerings to capture users involving demand such as the unique and in-depth experiences as alternative for outbound travel and short-haul and the staycation trips, which are incremental to the typical long-haul plans. This is a near-term goal that has already started to bear fruit. We are glad to see reservation for short haul travel and in-destination activities achieved strong year-over-year growth despite industry fluctuation in the past winter. Secondly, we are working hard to strengthen our content capability, which is highly synergistic with our core product business and can bring meaningful revenue sources in the years to come.

今天，我想對後者做一些闡述。首先，產品供應鏈是我們數十年來經營累積的核心競爭力。因此，我們最有能力擴大產品的廣度和深度，以吸引用戶的需求，例如獨特而深入的體驗，作為出境遊、短途旅行和居家旅行的替代方案，這些是典型的增量旅行。長期計劃。這是一個已經開始取得成果的近期目標。我們很高興看到，儘管去年冬季行業出現波動，短途旅行和目的地活動的預訂量仍實現了同比強勁增長。其次，我們正在努力加強我們的內容能力，這與我們的核心產品業務高度協同，可以在未來幾年帶來有意義的收入來源。

We expect to follow a 3-step strategy in developing our content road map. First, we will continue to enrich content selections in terms of category and formats. We believe comprehensive content offering will help attract new users and improve engagement in terms of frequency and time spent with our apps.

我們希望在製定內容路線圖時遵循三步驟策略。首先，我們將繼續豐富內容的品類和形式。我們相信，全面的內容提供將有助於吸引新用戶，並提高使用我們應用程式的頻率和時間方面的參與度。

Next, we will strengthen the integration of content generation, effective recommendation and product innovation to improve conversion rates, especially for the short-haul products. A complete loop from content to transactions will form a virtuous cycle to benefit our sustained growth.

接下來，我們將加強內容生成、有效推薦和產品創新的整合，以提高轉換率，特別是短程產品。從內容到交易的完整循環，將形成良性循環，有利於我們的持續成長。

Third, the deep integration of content capabilities, products and our quality, user base and extensive marketing network enables us to serve as a tourism marketing hub for branding, promotion and other marketing activities, leading to incremental revenue opportunity in tourism and the pan-industry advertising and marketing.

第三，內容能力、產品與我們的品質、用戶基礎和廣泛的營銷網絡的深度融合，使我們能夠成為品牌推廣和其他營銷活動的旅遊營銷中心，為旅遊和泛行業帶來增量收入機會廣告和行銷。

Last but not least, we continue to upgrade our service quality and technology capability. In order to safeguard a smooth and effortless delivery of our products to our end users, we remain our core competencies and we'll continue to invest and further our leadership compared with peers in the travel space.

最後但並非最不重要的一點是，我們不斷提升服務品質和技術能力。為了確保我們的產品順利、輕鬆地交付給最終用戶，我們將繼續保持我們的核心競爭力，並將繼續投資並進一步鞏固我們與旅行領域同行相比的領先地位。

Finally, looking beyond COVID, we remain deeply excited by the global travel opportunities. We believe that the international markets present an attractive long-term growth potential for a one-stop travel platform, one that could be multiple of China's domestic market. Particularly for international travel partners, Trip.com Group is uniquely positioned to reach a truly global audience through our brand portfolio from a marketing perspective.

最後，除了新冠疫情之外，我們仍然對全球旅行機會感到深感興奮。我們認為，國際市場對於一站式旅遊平台而言具有有吸引力的長期成長潛力，其成長潛力可能是中國國內市場的數倍。特別是對於國際旅遊合作夥伴而言，攜程集團擁有獨特的優勢，從行銷角度來看，可以透過我們的品牌組合接觸到真正的全球受眾。

With that, I will turn the call over to Jane for our operating highlights.

接下來，我將把電話轉給 Jane，了解我們的營運亮點。

Thanks, James. Good morning, everyone. I would like to start with a quick overview of Q4 and full year of 2020.

謝謝，詹姆斯。大家，早安。我想先快速回顧一下 2020 年第四季和全年情況。

Despite the industry fluctuation and a weaker seasonality in the winter in Q4, we are glad to see that Trip.com Group delivered solid performance and consistently outgrow the industry average across the product lines. Total net revenue saw a further narrowed year-over-year decline in Q4 to 40% as domestic accommodation reservation, air ticketing business, ground transportation and other domestic travel products recovered nicely in Q4. In addition, we achieved positive non-GAAP profit margin of 10% in the fourth quarter. On a full year basis, our core OTA brands delivered GMV of RMB 395 billion or USD 61 billion, again, leading the industry worldwide. For full year 2020, thanks to our efficiency improvements and a strong cost control, we were able to achieve 2% non-GAAP operating profit margin.

儘管第四季面臨產業波動和冬季季節性減弱的影響，但我們很高興看到攜程集團的業績表現穩健，各產品線的成長持續超過產業平均。由於第四季度國內住宿預訂、機票業務、地面交通等國內旅遊產品恢復良好，四季總淨收入年減幅進一步收窄至40%。此外，我們在第四季度實現了 10% 的非 GAAP 利潤率。全年核心OTA品牌實現GMV 3,950億元人民幣（610億美元），再次領先全球產業。 2020 年全年，由於我們的效率提升和強有力的成本控制，我們實現了 2% 的非 GAAP 營業利潤率。

Today, I would like to share some operating highlights in 4 areas. First, mid- to high-end travel market. Second, lower-tier city penetration. Third, our new strength in higher frequency categories. And fourth, improvements of our content capabilities.

今天我主要從四個方面分享一些經營亮點。一是中高端旅遊市場。其次，低線城市滲透率。第三，我們在高頻品類上的新優勢。第四，提高我們的內容能力。

First, we continue to improve our product competitiveness and increased market share in the fourth quarter, especially in the mid-to-high-end market. Our mid-to-high-end hotel bookings reached double-digit growth year-over-year, far exceeding the industry average by 15% to 20%. In addition, high-quality niche and boutique travel has become an important alternative for our previously outbound customers. We saw an average spending on domestic packaged-tours grew significantly year-over-year in the fourth quarter, especially for our mobile users.

首先，我們第四季持續提高產品競爭力，提高市場份額，特別是在中高端市場。我們的中高階飯店預訂量較去年同期實現兩位數成長，遠超業界平均15%至20%。此外，高品質的小眾精品遊已成為我們以往出境遊客戶的重要選擇。我們看到第四季度國內跟團遊的平均支出較去年同期大幅成長，尤其是對於我們的行動用戶而言。

Second, we gained further market share in the lower-tier markets. In 2020, more than 40% of our new customers came from third-tier cities and below. Transportation products has become important channels to acquire new users with whom we can cross-sell other product.

其次，我們在低線市場的市佔率進一步擴大。 2020年，我們超過40%的新客戶來自三線及以下城市。交通產品已成為獲取新用戶的重要管道，我們可以透過新用戶交叉銷售其他產品。

Third, as James mentioned, we worked hard to unlock our new strength in highly frequent categories such as short-haul and staycation. We attracted more diverse and high-quality partners to our platform to expand our product offerings and also broaden the scope of collaboration with existing partners. The number of our in-destination activity suppliers increased by over 25% year-over-year by the end of last year.

第三，正如詹姆斯所提到的，我們努力在短途旅行和居家度假等高頻類別中釋放我們的新優勢。我們吸引了更多多元化、高品質的合作夥伴加入我們的平台，以擴大我們的產品範圍，並擴大與現有合作夥伴的合作範圍。截至去年底，我們的目的地活動供應商數量年增超過25%。

As a result, short-haul and local travel has become a key contributor to our recovery. In the fourth quarter, our hotel GMV for the same province stays increased by over 20% year-over-year and reservation for attraction and activities increased almost 100%. Such strong performance for short-haul and local travel extended into the past Chinese New Year holiday. Compared to the same period in 2019, our hotel GMV for the same province stays achieved 20% year-over-year growth and reservation for local attractions and activities more than tripled.

因此，短途和本地旅行已成為我們復甦的關鍵因素。第四季度，我們的飯店同省住宿GMV年增超過20%，景點和活動預訂量成長近100%。短途和本地旅遊的強勁表現一直持續到剛剛過去的農曆新年假期。與2019年同期相比，我們的同省飯店住宿GMV實現了20%的年成長，當地景點和活動的預訂量增加了兩倍多。

Over the past year, we focused on improving our content offering. We achieved -- we believe the content will generate unique and long-term, long-lasting value in user engagement as well as the new earnings power. By the end of 2020, our content channels contribution to the total app traffic more than doubled compared to the beginning of the year and the visit time of our information feeds more than tripled during the year. Our livestreaming and special deals channel have now become a place where people come to find attractive deals, which contribute approximately 5 billion GMV during the past year.

在過去的一年裡，我們專注於改進我們的內容提供。我們實現了——我們相信內容將在用戶參與度以及新的獲利能力方面產生獨特的、長期的、持久的價值。到 2020 年底，我們的內容管道對應用程式總流量的貢獻比年初增加了一倍多，我們的資訊來源的存取時間在這一年增加了兩倍多。我們的直播和特賣頻道現已成為人們尋找有吸引力的特賣的地方，在過去的一年裡貢獻了約50億的GMV。

We are also glad to see the initial development in advertisement revenue opportunities. Our domestic advertising and marketing revenue increased significantly year-over-year in the fourth quarter and maintained an overall positive growth throughout the year. In the future, we will continue to build our content ecosystem with concerted efforts. The ecosystem will enable our users' engagement and make our platform a comprehensive marketplace.

我們也很高興看到廣告收入機會的初步發展。第四季國內廣告行銷收入較去年同期大幅成長，全年維持整體正成長。未來，我們將持續共同打造內容生態圈。該生態系統將使我們的用戶參與進來，並使我們的平台成為一個綜合市場。

Turning to the year of 2021, the domestic travel demand remained resilient despite industry headwinds due to the small outbreaks and tightened travel restrictions during the Chinese New Year holiday. Our domestic hotel and air reservation quickly rebounded post the holiday and reached full recovery recently compared to the same period in 2019. We are fully confident that the domestic market will come back with the growth trajectory in the year of 2021 due to the effective pandemic control and wide distribution of vaccines.

進入2021年，儘管因小規模疫情和春節期間旅行限制收緊而帶來行業阻力，國內旅遊需求仍保持韌性。節慶結束後，我們的國內飯店和機票預訂量迅速反彈，與2019年同期相比，近期已全面恢復。我們完全有信心，由於疫情控制得力，2021年國內市場將恢復成長軌跡以及疫苗的廣泛分發。

Around the world, cross-border travel is still under pressure. However, the domestic travel under Trip.com has started its recovery. According to China Tourism Academy, an increased distribution of effective COVID-19 vaccine worldwide, global travel will resume orderly in the new year. We are optimistic and will be fully prepared to take advantage of upcoming recovery in the international travel.

在世界各地，跨境旅行仍面臨壓力。不過，攜程旗下的國內旅遊已經開始復甦。據中國旅遊研究院稱，隨著有效的COVID-19疫苗在全球範圍內的分發增加，全球旅行將在新的一年有序恢復。我們很樂觀，並將做好充分準備，利用國際旅行即將復甦的機會。

Finally, I would like to thank our team again for their dedicated efforts and commitment in maintaining quality service during this challenging time. As always, we are committed to leading the best-in-industry practice for all our stakeholders, including our customers, business partners, employees, shareholders and communities.

最後，我要再次感謝我們的團隊在這個充滿挑戰的時期為維持優質服務所做的奉獻努力和承諾。一如既往，我們致力於為所有利害關係人（包括我們的客戶、業務合作夥伴、員工、股東和社區）引領業界最佳實踐。

Last year, we released our first ESG report which covered our approaches and efforts in developing an inclusive workplace, promoting responsible travel and providing quality user experience. Going forward, we will continue to improve our efforts in ESG to lead our sustainable growth in the long term.

去年，我們發布了第一份 ESG 報告，涵蓋了我們在發展包容性工作場所、促進負責任的旅行和提供優質用戶體驗方面的方法和努力。展望未來，我們將繼續加強在ESG方面的努力，以引領我們的長期永續成長。

With that, I will now turn the call over to Cindy.

現在，我將把電話轉給辛蒂。

Thanks, Jane. Thanks, everyone.

謝謝，簡。感謝大家。

For the fourth quarter of 2020, Trip.com Group reported net revenue of RMB 5 billion, representing a 40% decrease from the same period in 2019. The further narrowed decline reflects a continued recovery of our China domestic market, especially for short haul and staycations.

2020年第四季，攜程集團淨收入為50億元人民幣，較2019年同期下降40%。降幅進一步收窄，反映出我們國內市場的持續復甦，尤其是短途旅遊和旅遊市場。居家度假。

I'd like to first go through some business highlights that drives the recovery of our domestic revenues. Accommodation reservations for China domestic market sustained positive growth in Q4 with mid- to high-end hotel reservations growing at double digits and intra-province hotel GMV grew by more than 20%. Domestic air revenue maintained positive year-over-year growth in Q4 despite the higher base in the previous year with transportation bookings for early Chinese New Year holiday. Reservations for domestic in-destination activities achieved a strong growth during the quarter, mainly driven by short-haul trips. Recovery for domestic packaged product was lower due to industry fluctuations with small outbreaks of COVID cases in this quarter.

我想先介紹一些推動我們國內收入復甦的業務亮點。第四季國內市場住宿預訂持續正成長，中高階飯店預訂量以兩位數成長，省內飯店GMV成長超過20%。儘管去年春節假期運輸預訂基數較高，但第四季國內航空收入仍維持年比正成長。本季國內目的地活動預訂量實現強勁成長，主要受到短途旅行的推動。由於本季小規模疫情爆發導致產業波動，國內包裝產品的復甦速度較低。

International business is still under pressure. However, similar to what we experienced in China, our brand, Trip.com, also saw strong growth for domestic hotel reservations in many markets.

國際業務仍面臨壓力。然而，與我們在中國的經驗類似，我們的品牌攜程網在許多市場的國內飯店預訂也出現了強勁成長。

Gross margin was 82% for the fourth quarter of 2020, increased from 79% for the same period in 2019 and 81% for the previous quarter. The increase of gross margin was mainly helped by favorable change in product mix and continued improvement in service efficiency. In the mid to long term, we still expect the gross margin to be around 75% to 80%.

2020年第四季毛利率為82%，高於2019年同期的79%和上一季的81%。毛利率的提升主要得益於產品結構的有利變化以及服務效率的持續提升。中長期來看，我們仍預期毛利率約為75%至80%。

Total non-GAAP operating expenses decreased by 36% from the same period in 2019 and increased by 14% from the previous quarter, thanks to our largely flexible cost expense structure and efficient operating management. During the past year, we have further streamlined our operations across business lines in addition to certain adjustments related to COVID. In addition, our improvement on content and cross-selling have further lifted the marketing efficiencies.

由於我們靈活的成本費用結構和高效的營運管理，非美國通用會計準則營運費用總額較 2019 年同期下降 36%，環比增長 14%。在過去的一年裡，除了與新冠疫情相關的一些調整外，我們還進一步簡化了跨業務線的營運。此外，我們對內容和交叉銷售的改進也進一步提升了行銷效率。

Product development expenses for the fourth quarter decreased by 20% to RMB 2.2 billion from the same period in 2019 and increased by 8% from the previous quarter. The sequential increase was mainly due to the normalization of our personnel arrangement.

第四季產品開發費用較2019年同期下降20%至人民幣22億元，較上季成長8%。環比增長主要是由於人員安排正常化所致。

Sales and marketing expenses for the fourth quarter decreased by 50% to RMB 1.2 billion from the same period in 2019 and increased by 9% from the previous quarter. The sequential increase was mainly due to the increased marketing spending in response to continued travel demand recovery.

第四季銷售及行銷費用較2019年同期下降50%至人民幣12億元，較上季成長9%。環比成長主要是由於為應對旅行需求持續復甦而增加的行銷支出。

Excluding share-based compensation charges, non-GAAP operating margin was 10% for the fourth quarter of 2020 compared to 12% in the same period in 2019.

不含股權激勵費用，2020 年第四季非 GAAP 營業利潤率為 10%，而 2019 年同期為 12%。

Diluted earnings per ADS were RMB 1.65 or USD 0.25 for the fourth quarter of 2020. Excluding share-based compensation charges and fair value changes of equity security investments and exchangeable senior notes, non-GAAP diluted earnings per ADS were RMB 1.75 or USD 0.27 for the fourth quarter of 2020.

2020 年第四季每份美國存託憑證的稀釋收益為1.65 元人民幣或0.25 美元。不包括股權激勵費用以及股權證券投資和可交換優先票據的公允價值變動，非美國通用會計準則每份美國存託憑證的稀釋收益為 1.75 元人民幣或0.27 美元。2020年第四季。

As of December 31, 2020, the balance of cash and cash equivalents, restricted cash, short-term investment held to maturity time deposit and financial products was RMB 59.6 billion or USD 9.1 billion.

截至2020年12月31日，現金及現金等價物、限制性現金、持有至到期短期投資定期存款及理財產品餘額為596億元人民幣（91億美元）。

Now turning to the first quarter of 2021. As James shared early, we saw significant variability in the booking trend in the first 2 months of 2021, mostly due to COVID-related travel restrictions during the Chinese New Year. Our visibility for the full quarter is still very limited as of today due to the ongoing volatility of the recovery pace and the short booking window. Therefore, we will not provide a full quarter guidance this time. Instead, I'd like to share some color on our recent performance.

現在轉向 2021 年第一季。正如 James 早些時候分享的那樣，我們看到 2021 年前 2 個月的預訂趨勢存在顯著變化，這主要是由於農曆新年期間與新冠病毒相關的旅行限制。由於復甦步伐的持續波動和較短的預訂窗口，截至今天，我們對整個季度的能見度仍然非常有限。因此，我們這次不會提供完整的季度指引。相反，我想分享一些關於我們最近表現的顏色。

We have sustained better-than-industry performance across major business lines. And in the first quarter of Q1 -- in the first half of Q1, the recovery of our domestic hotel reservation led the industry average performance by around 15% against the same period of 2019. In particular, hotel reservations for intra-province travel and in-destination activity reservations maintained solid growth.

我們的主要業務線均保持優於行業的業績。而第一季－第一季上半年，我們國內飯店預訂的復甦領先產業平均表現，較2019年同期成長15%左右。特別是省內旅遊和旅遊飯店預訂。目的地活動預訂維持穩健成長。

After the holiday, we've seen that travel demand quickly rebounded and our hotel and air ticketing achieved a full recovery recently compared with the same period in 2019. We remain fully confident on the general trend that the domestic market is getting back to the growth trajectory and increasingly more positive on the potential reopening of international travel, encouraged by the wide availability of vaccines and relaxation of travel restrictions. We are fully prepared to continue gaining market share, capturing the opportunities during the recovery domestically and internationally.

節後，我們看到出行需求快速回升，飯店、機票近期較2019年同期實現全面復甦，我們對國內市場恢復成長的大勢充滿信心受疫苗廣泛供應和旅行限制放寬的鼓舞，人們對重新開放國際旅行的可能性越來越正面。我們已做好充分準備，繼續擴大市場份額，抓住國內和國際復甦期間的機會。

With that, operator, please open the line for questions.

那麼，接線員，請開通提問線路。

(Operator Instructions) Your first question comes Alex Yao from JPMorgan.

（操作員說明）您的第一個問題來自摩根大通的 Alex Yao。

So I have a question on the content strategy. James, you talked briefly on your content strategy in the prepared remarks. Can you elaborate a bit more on the strategy? Particularly from a competition perspective, how do you plan to compete against the more established content platforms with exposure to travel such as Xiaohongshu and Douyin?

所以我有一個關於內容策略的問題。詹姆斯，您在準備好的演講中簡要介紹了您的內容策略。能詳細說明一下該策略嗎？特別是從競爭的角度來看，你們打算如何與小紅書、抖音等較成熟的旅遊內容平台競爭？

Yes. First, we are the largest travel transaction platform in China, so many of our users are already used to writing authentic reviews and travel journals on the platform. But more importantly, our strong product and transaction capability allows to make content-to-transaction conversion easy and frictionless. For example, our livestream channels delivered the highest conversion rate in travel industry last year. So for these reasons, we are confident to see that we will be one of the go-to platforms for users that seek both travel inspirations and values for care in the short-haul and long-haul travel demand.

是的。首先，我們是中國最大的旅遊交易平台，所以我們的許多用戶已經習慣在平台上寫真實的評論和旅遊日記。但更重要的是，我們強大的產品和交易能力使內容到交易的轉換變得輕鬆無阻。例如，我們的直播管道去年的轉換率是旅遊業最高的。因此，基於這些原因，我們有信心看到我們將成為在短途和長途旅行需求中尋求旅行靈感和護理價值的用戶的首選平台之一。

Your next question comes from Thomas Chong from Jefferies.

您的下一個問題來自 Jefferies 的 Thomas Chong。

Congratulations on the recovery after Chinese New Year. My question is more about the competitive landscape in lower-tier cities. Can management talk about the pricing trend in lower-tier cities as well as our strategy in lower-tier cities this year?

恭喜農曆新年後康復。我的問題更多的是低線城市的競爭格局。管理層能否談談低線城市的定價趨勢以及我們今年在低線城市的策略？

Yes. For the lower-tier cities, we are putting a lot of efforts fully utilizing the comprehensiveness of our platform. First of all, our transportation products offer the leads for us to further penetrate into the lower-tier cities and our cross-sell capability enable us to cross-sell all the products on our platform.

是的。對於二、三線城市，我們充分利用平台的綜合性，做了許多努力。首先，我們的交通產品為我們進一步滲透到低線城市提供了線索，我們的交叉銷售能力使我們能夠交叉銷售我們平台上的所有產品。

Secondly, not only we have online platform, we also have thousands of the lower-tier cities offline stores, which enable us also to sell products in these cities. We will be able to input even more products, including hotel, transportation products, packaged tours, local activities into these offline stores as well to enable us to further penetrate into these cities.

其次，我們不僅有線上平台，我們還有數千個線下城市的線下門市，這使得我們也可以在這些城市銷售產品。我們還可以把更多的產品，包括飯店、交通產品、跟團遊、當地活動等，輸入到這些線下店裡，讓我們能夠進一步滲透到這些城市。

And thirdly, because of the upcoming trend, we are also making sure our product is very competitive in terms of coverage as well as the pricing to make sure the people in these cities get the best deal when they select products from different product lines. So our efforts for the lower-tier cities is going to be strengthened.

第三，由於即將到來的趨勢，我們還確保我們的產品在覆蓋範圍和定價方面都非常有競爭力，以確保這些城市的人們在從不同產品線選擇產品時獲得最好的交易。所以我們對低線城市的力道將會加大。

And also, we have special teams to look at specific markets such as for people who are retired, et cetera. These segments also present different opportunities for our new businesses.

此外，我們還有專門的團隊來關注特定市場，例如退休人員等。這些細分市場也為我們的新業務提供了不同的機會。

Your next question comes from Ronald Keung from Goldman Sachs.

你們的下一個問題來自高盛的 Ronald Keung。

I guess my question kind of follows on the competitive landscape. Particularly, I want to hear about the hotel. Given a very good performance, you mentioned 15 percentage points above the industry. I see that should be the overall industry. How do we see that amongst the online players? With more booking online I see, so [that way] online penetration for hotel for the overall industry now for online penetration. And between, say, ourselves plus our associate, Kaohsiung, how do we see ourselves doing amongst -- within the online trend maybe versus other players, including the Meituan and other players in -- within the online space?

我想我的問題有點跟競爭格局有關。我特別想聽聽有關酒店的情況。鑑於表現非常好，你提到比行業高出15個百分點。我認為這應該是整個行業的情況。我們如何看待線上玩家的這一點？我看到，隨著線上預訂的增加，飯店的線上滲透率現在整個行業都達到了線上滲透率。比如說，我們自己加上我們的同事高雄，我們如何看待自己在線上趨勢中與其他參與者（包括美團和線上空間中的其他參與者）的表現？

For the hotel business, the majority of the hotel booking still is offline. So with the concerted efforts by every player, there are more volumes moving online, and we are gaining a lot of shares through these movements. As we discussed from lower-tier -- from mid- to high-end, we are outpacing the industry growth by 15%, gaining market share in that segment. In the lower-tier cities, we are also putting concerted efforts to make sure our price is the best, penetrating into the lower-tier cities. And thirdly, we also offer a comprehensive one-stop shopping platform to everyone who are interested in using our platform to travel. So all these efforts give us the advantage leading the industry growth.

對於酒店業務來說，大部分酒店預訂仍然是線下進行。所以在每個玩家的共同努力下，線上的交易量越來越多，我們也透過這些交易獲得了很多份額。正如我們從低端（中端到高端）討論的那樣，我們的成長速度超過了行業 15%，贏得了該細分市場的市場份額。在低線城市，我們也在齊心協力，確保我們的價格是最好的，滲透到低線城市。第三，我們還為每個有興趣使用我們平台旅行的人提供全面的一站式購物平台。因此，所有這些努力使我們具有引領產業成長的優勢。

Your next question comes from Binnie Wong from HSBC.

您的下一個問題來自匯豐銀行的 Binnie Wong。

I have 2 questions here, 2 short questions. One is also a follow-up on the competitive landscape in the domestic market. We understand that some of your peers are stepping up subsidies, right, and especially even like to the hotel, right, on the hotel side. So how do we see that would trend in terms of like on the subsidies side? Do you have to step up on that? Especially, you also see sales and marketing step-up in the fourth quarter.

我這裡有兩個問題，兩個簡短的問題。一也是國內市場競爭格局的跟進。我們了解到你們有些同行正在加大補貼力度，對吧，甚至特別喜歡對酒店，對吧，酒店方面。那我們又該如何看待補貼方面的趨勢呢？你必須加強這一點嗎？特別是，您還可以看到第四季度銷售和行銷的加強。

And then also, I guess, your thoughts in terms of our cross-selling efforts, right? In terms of like when you get like a retention and also the cross-selling, any metrics that you can share with us for us to see in terms of our user retention and also cross-selling? That will be very helpful for us to better understand our strategy for the year.

然後，我想，您對我們交叉銷售工作的想法，對吧？當您想要保留和交叉銷售時，您可以與我們分享任何指標，以便我們了解用戶保留和交叉銷售方面的情況嗎？這對於我們更好地了解我們今年的策略非常有幫助。

Yes. With regard to the competition, I think our strategy is, as Jane explained, our strategy is quite consistent and also time-proven.

是的。關於競爭，我認為我們的策略，正如Jane所解釋的，我們的策略是相當一致的，也是經過時間驗證的。

For the high-end hotels, price subsidy have been proved ineffective. We keep focusing on strengthening our core competence in the inventory service as well as the content. Especially during the pandemic, we not only strengthened our collaborations with our hotel partners by launching a broader range of room and non-room offerings at very attractive prices, but also developed preorder offerings, which allow our users to lock in a competitive pricing while enjoying great flexibilities in determining the actual travel date. We also launched the channels like short-haul holidays and fresh sales to help hotels run targeted marketing.

對於高端酒店來說，價格補貼已被證明是無效的。我們始終致力於加強庫存服務和內容的核心競爭力。特別是在疫情期間，我們不僅加強了與酒店合作夥伴的合作，以極具吸引力的價格推出了更廣泛的客房和非客房產品，還開發了預訂產品，讓我們的用戶在享受優惠的同時鎖定有競爭力的價格在確定實際旅行日期方面具有很大的靈活性。我們也推出了短程度假、生鮮銷售等管道，幫助飯店進行精準行銷。

These are -- these kind of efforts, to some extent, further strengthening our strategic partnership with almost all the major mid- to high-end hotels in the China market. Therefore, our market share increased significantly against peer players. And we are very confident that we will continue to leading the edge.

這些努力在某種程度上進一步加強了我們與中國市場幾乎所有主要中高端飯店的策略夥伴關係。因此，我們的市佔率相對於同業顯著增加。我們非常有信心我們將繼續保持領先地位。

For the low-end hotel, well, in this segment, we did notice that customers tend to be more price-sensitive. Therefore, we will continue to lead the price competitiveness in the targeted market and acquire new users with competitive lower-end hotels. We also work very closely with our third-party partners, especially in the Tier 4 and Tier 5 cities, to help our inventory grow market share against the peers in this segment. As our low-end hotel business has very limited contribution to our total revenue as well as the net profit, any competition in this area have limited impact to group level financial performance.

對於低端酒店，在這個細分市場中，我們確實注意到客戶往往對價格更加敏感。因此，我們將繼續引領目標市場的價格競爭力，並透過有競爭力的低端飯店獲取新用戶。我們也與第三方合作夥伴密切合作，特別是在四線和五線城市，以幫助我們的庫存增加相對於該細分市場同行的市場份額。由於我們的低端酒店業務對我們的總收入和淨利潤的貢獻非常有限，該領域的任何競爭對集團財務業績的影響有限。

In the long run, our value proposition is much more sustainable for hotels as we focus on bringing new customers and incremental demand from other places instead of serving as just inserted paid channel to bring hotels' existing local demand online.

從長遠來看，我們的價值主張對酒店來說更具可持續性，因為我們專注於從其他地方帶來新客戶和增量需求，而不是僅僅作為插入付費管道來將酒店現有的本地需求帶到網上。

Okay. May I just have a quick follow-up also on the margin side? If we think about like the margin, because 3Q, we see very good margins and I think 4Q is because of seasonality and also our high investments, any structural positive drivers we should expect in 2021 on the margin side?

好的。我可以在保證金方面也進行快速跟進嗎？如果我們考慮利潤率，因為第三季我們看到了非常好的利潤率，我認為第四季度是因為季節性以及我們的高投資，我們在 2021 年利潤率方面應該期待什麼結構性積極驅動因素？

Yes. The total non-GAAP cost and operating expenses decreased around 39% year-over-year in Q4 largely -- thanks to our largely flexible cost expenses structure and very efficient operating management.

是的。第四季的非 GAAP 總成本和營運費用年減了 39% 左右，這主要歸功於我們靈活的成本費用結構和非常高效的營運管理。

During the past year, we have further streamlined our operation across business lines in addition to certain adjustments related to COVID. In addition, our improvement on content and cross-selling has further lifted the marketing efficiency. Our non-GAAP sales and marketing expenses increased -- now in the Q -- looking forward in 2021, we expect a modest increase in our personnel expenses in 2021 while we did expect that the total head count will largely be stable, especially for our core businesses.

在過去的一年裡，除了與新冠疫情相關的一些調整外，我們還進一步簡化了跨業務線的營運。此外，我們在內容和交叉銷售方面的改進也進一步提升了行銷效率。我們的非 GAAP 銷售和行銷費用有所增加（現在是在第二季度），展望 2021 年，我們預計 2021 年的人員費用將小幅增加，同時我們確實預計總人數將基本穩定，特別是對於我們的核心業務。

Sales and marketing expenses are largely discretional and we adjusted in accordance with our business recovery. And we will continue to adopt an ROI-driven strategy. We believe our improvement on content and cross-selling will help improve our marketing efficiency, but at the same time, we will also reserve certain budgets in the short term to develop our strategic -- long-term strategic project, for example, the content ecosystem and to prepare for the recovery and our potential growth in the international market.

銷售和行銷費用在很大程度上是可自由支配的，我們根據業務復甦情況進行調整。我們將繼續採用投資報酬率驅動的策略。我們相信我們在內容和交叉銷售上的改進將有助於提高我們的行銷效率，但同時我們也會在短期內保留一定的預算來發展我們的策略——長期策略項目，例如內容生態系統，並為復甦和我們在國際市場上的潛在成長做好準備。

(Operator Instructions) Your next question comes from Jed Kelly from Oppenheimer.

（操作員說明）您的下一個問題來自奧本海默的傑德凱利。

Just sort of looking at like big picture, the global OTAs and online travel, there's a lot of investor enthusiasm that these companies are going to emerge from the pandemic with structurally higher margins. Do you see that's the case for you? Do you think you can come out of this with higher margins?

綜觀全局，全球線上旅行社和線上旅遊，許多投資者都熱情地認為這些公司將從疫情中脫穎而出，並獲得結構性更高的利潤率。您認為您的情況是這樣嗎？您認為您能以更高的利潤擺脫困境嗎？

Yes. As I explained, I think that the -- in terms of the long-term margins, we still think -- although in the very short term, because of the volatility on the top line, we -- especially for the Q1 as well as the 2021, we probably cannot provide at this moment a clearer guidance in terms of the margin. But in the long run, we still think the original 20% to 30% margin is very achievable for us.

是的。正如我所解釋的，我認為 - 就長期利潤率而言，我們仍然認為 - 儘管在很短期內，由於營收的波動，我們 - 特別是第一季以及2021 年，我們目前可能無法就利潤率提供更明確的指導。但從長遠來看，我們仍然認為原來20%到30%的利潤率對我們來說是非常可以實現的。

Compared with the international peers in terms of sales and marketing efficiencies, Trip.com probably is the most efficient player in the market because we -- as always, we focus on gaining market share by growing our own customer, especially the mobile app customers. And we will continue to focus on this. And in addition, this year, because of the pandemic, we also noticed the content product will help significantly improve our conversion rate as well as the stickiness of our users. Therefore, we think we can have some leverage, especially compared with the global peers on the sales and marketing side.

就銷售和行銷效率而言，與國際同行相比，Trip.com 可能是市場上最高效的參與者，因為我們一如既往地專注於透過發展自己的客戶（尤其是行動應用程式客戶）來獲得市場份額。我們將繼續關注這一點。另外，今年因為疫情的原因，我們也注意到內容產品對於我們的轉換率以及用戶的黏性會有很大的提升。因此，我們認為我們可以有一定的影響力，特別是與銷售和行銷方面的全球同行相比。

Your next question comes from James Lee from Mizuho.

你的下一個問題來自瑞穗銀行的詹姆斯李。

Jane, maybe can -- is there any way you can help us understand maybe some of the policy support for the travel industry that's coming up this year? And what kind of signs should we look for, for a possible lifting and restriction for outbound travel? Should we think about those signs as widely available vaccine in Asian countries? Or would the government kind of consider reestablishment of the green channel that we talked about earlier?

簡，也許可以——你有什麼辦法可以幫助我們了解今年即將到來的一些針對旅遊業的政策支持嗎？我們應該尋找什麼樣的跡象來看待出境旅行可能取消和限制的情況？我們是否應該將這些跡象視為亞洲國家廣泛使用的疫苗？或者政府會考慮重建我們之前談到的綠色通道嗎？

And also, kind of as we look beyond the pandemic right now, do you have a sense, when you talk to hotel partners in general, they'll rely more on the OTAs? Certainly, we saw that trend in the U.S. as OTA gained market share post the financial crisis. Just curious what you're thinking there.

而且，當我們現在超越大流行時，您是否有一種感覺，當您與一般酒店合作夥伴交談時，他們會更依賴 OTA？當然，我們在美國也看到了這種趨勢，金融危機後 OTA 的市佔率不斷增加。只是好奇你在那裡想什麼。

Let me illustrate the answers in a couple of layers. First of all, for domestic travel, during the January and February time frame during the winter season, there were small outbreaks of the virus. So we stay put for the whole country, very quickly contained the small outbreaks. And after the Chinese New Year, we have seen very good recovery for domestic travel. So we expect the Chinese domestic travel will have a very strong rebound this year. And our team is very well prepared in terms of service capability, content generation, our technology investment. So we are very positive in full recovery for the Chinese domestic travel.

讓我分幾層來說明答案。首先，就國內旅遊而言，冬季1月和2月期間，病毒有小規模爆發。所以我們在全國範圍內堅守崗位，很快就遏制了小規模的疫情。春節過後，我們看到國內旅遊恢復得很好。因此我們預計今年中國國內旅遊將會出現非常強勁的反彈。我們的團隊在服務能力、內容產生、技術投入方面都做好了充分的準備。因此，我們對中國國內旅遊的全面復甦非常樂觀。

Secondly, with the vaccine is being adopted by more and more countries, there are a couple of things we would like to see. First of all, for medical experts across the world, they need to form a consensus in terms of -- for the people who have taken medicines -- taken vaccines, how long do they need to be quarantined when they return to their home country or when they enter into another country, if any. Secondly, with the consensus built by the global medical experts, every country will form their policy in terms of opening up green lanes, opening up special channels for travelers. And thirdly, once the countries, every country has their policies ready, OTAs with a strong investment in technology, we will make sure the cross-borders information as well as the service capability is coupled with the policy imposed by every country and make sure all the information and services is very well supporting our customers when they go across. So our team is making the right investment in terms of information assimilation, in terms of the technology capability to support our customers.

其次，隨著疫苗被越來越多的國家採用，有一些事情我們希望看到。首先，對於全世界的醫學專家來說，對於那些吃過藥、打過疫苗的人，回國後需要隔離多長時間，或者需要隔離多久，需要形成共識。當他們進入另一個國家（如果有）時。其次，在全球醫學專家的共識下，各國將在開闢綠色通道、為旅客開闢特殊通道等方面形成自己的政策。第三，一旦國家、每個國家都做好了政策，OTA在技術方面投入很大，我們會確保跨境資訊以及服務能力與每個國家的政策相結合，確保所有的當我們的客戶經過時，資訊和服務為他們提供了很好的支援。因此，我們的團隊在資訊同化和支持客戶的技術能力方面進行了正確的投資。

Now looking into different continents, we believe China, in most nation, controlled the virus very well. So the domestic travel is leading the recovery among all the global players. And secondly, many countries in Asia have also demonstrated their abilities to well control the virus. Countries such as Singapore, Japan, Korea have them very well. So we expect this country in domestic will recover very well and we are hopeful that with the effectiveness of the vaccine, we will be able to see some kind of recovery in green lanes in limited travel as the test of the water, leading the recovery for cross-border transactions.

現在看看不同的大陸，我們相信中國在大多數國家都很好地控制了病毒。因此，國內旅遊正在引領全球所有參與者的復甦。其次，亞洲多國也展現了良好控制疫情的能力。新加坡、日本、韓國等國家都很好。所以我們預計這個國家在國內會恢復得很好，我們希望隨著疫苗的有效性，我們能夠在有限出行的綠色通道上看到某種程度的恢復，作為試水，引領整個國家的複蘇。跨境交易。

Your next question comes from Natalie Wu from Haitong International.

您的下一個問題來自海通國際的Natalie Wu。

Just some follow-up with the sales and marketing question. I want to get a rough sense of your propelled sales and marketing plan in the first half of this year given your full recovery of domestic business post the Chinese New Year. And wondering if there's any change of sales and marketing spending ROI-related criteria loosening or tightening across different channels during the pandemic.

只是對銷售和行銷問題進行一些跟進。鑑於春節後國內業務全面恢復，我想大致了解你們今年上半年推進的銷售和行銷計劃。想知道在大流行期間，不同管道的銷售和行銷支出投資回報率相關標準是否會放鬆或收緊。

Also wondering if you can give us an update of your app MAU last year, and how much of that is really a cloud first-time user and if you have observed any new demographic features and cohorts, that would be grateful -- that will be great.

另外想知道您是否可以向我們提供您去年應用程式 MAU 的最新情況，其中有多少是真正的雲端首次用戶，如果您觀察到任何新的人口統計特徵和群組，我們將不勝感激 - 這將是偉大的。

Thank you, Natalie. The sales and marketing expenses for us are largely discretional. And we will continue to monitor our returns based on our ROI. And the criteria is pretty consistent, not losing -- or tightening our ROI threshold, but we will swiftly adjusted our sales and marketing budget based purely on the return.

謝謝你，娜塔莉。我們的銷售和行銷費用很大程度上是可自由支配的。我們將繼續根據投資報酬率監控我們的回報。標準非常一致，不會損失或收緊我們的投資回報率門檻，但我們將純粹根據回報迅速調整我們的銷售和行銷預算。

And starting -- as we explained, starting from last year, we did notice that the content as well as the content, including the, for example, the livestreaming as well as the fresh sell, significantly helped us to improve our conversion rate. Therefore, our overall marketing efficiencies has been improved.

正如我們所解釋的，從去年開始，我們確實注意到內容和內容，包括直播和生鮮銷售，這大大幫助我們提高了轉換率。因此，我們的整體行銷效率得到了提升。

And moving into 2021, we will continuously to make investment in our content product. And hopefully, our marketing efficiencies will continuously improving.

進入2021年，我們將繼續對內容產品進行投資。希望我們的行銷效率能夠持續提升。

Sorry, what's your second question?

抱歉，您的第二個問題是什麼？

About new users. Firstly is about your MAU. Just wondering if you can give us an update of your MAU last year. And how much of that is the like newly acquired first-time new user. And also the -- if there's any new demographic figure or user cohorts related with the new users?

關於新用戶。首先是關於您的月活躍用戶數。只是想知道您能否向我們提供您去年的月活躍用戶數的最新情況。其中有多少是新獲得的首次新用戶。還有——是否有任何新的人口統計數字或與新用戶相關的用戶群體？

Yes, our app MAU has been quite consistently increasing, especially with more and more content in our app. We did see -- we did notice the timing -- the stickiness of our users increased significantly.

是的，我們的應用程式 MAU 一直在持續成長，尤其是隨著我們應用程式中的內容越來越多。我們確實看到——我們確實注意到了時機——用戶的黏性顯著增加。

In terms of new users, we did notice that more and more percentage of our new users coming from the lower-tier cities, especially coming from the third, fourth as well as 5-tier cities. They may not make a booking at the first time, but they will spend some time looking at the content that we provide on the app at the beginning.

在新用戶方面，我們確實注意到越來越多的新用戶來自於低線城市，尤其是來自三、四、五線城市。他們可能不會在第一時間進行預訂，但他們會花一些時間查看我們一開始在應用程式上提供的內容。

Your next question comes from Alex Poon from Morgan Stanley.

您的下一個問題來自摩根士丹利的 Alex Poon。

My question is mainly related to the overall new revenue opportunities coming out of COVID. In the post-COVID world, you mentioned actually many things, particularly I want to understand the content strategies and how this new content strategy can drive up the long-term conversion -- paying user conversion? And also, you talk about many other things, actually like advertising, short haul, location, local attraction, cross-selling, lower-tier city, efficient marketing, higher online penetration. So trying to understand on an overall basis, not just domestic market and also the international opportunities, how much -- how should we quantify all these new revenue opportunities as we go out of COVID?

我的問題主要與新冠疫情帶來的整體新收入機會有關。在後疫情時代，您實際上提到了很多事情，特別是我想了解內容策略以及這種新的內容策略如何推動長期轉換——付費用戶轉換？而且，你還談到了很多其他事情，實際上例如廣告、短途運輸、位置、當地景點、交叉銷售、二、三線城市、高效行銷、更高的線上滲透率。因此，試圖從整體上了解，不僅是國內市場，還有國際機會，當我們走出新冠疫情後，我們應該如何量化所有這些新的收入機會？

Yes. I think this is a new space for us. We traditionally only made most of our money from commission. So it's really coming out of the sales budgets of airlines and destinations and hotels. Of course, as we know, they also have a marketing budget and branding budget, probably just as large and the same order magnitude, and it's just as large as the sales budget. So this is the area that we hope to, through our marketing and platform and our content capability, be able to tap into in the near future.

是的。我認為這對我們來說是一個新的空間。傳統上，我們的大部分收入僅來自佣金。所以它實際上來自航空公司、目的地和酒店的銷售預算。當然，正如我們所知，他們還有行銷預算和品牌預算，可能和銷售預算一樣大，而且數量級相同。因此，這是我們希望透過我們的行銷和平台以及內容能力在不久的將來能夠進入的領域。

Yes. In addition, as we have seen, China's infrastructure has been developed quite significantly, penetrating into many areas. And China is a very big country. So during the lockdown period, James and I and our team have been visiting different provinces. And there are great potential, leading our customers not only to the most famous attractions, but also many, many other newly developed attractions. So the staycation, local attractions represent new opportunities for us to gain market share.

是的。另外，我們也看到，中國的基​​礎建設發展非常顯著，滲透到許多領域。中國是一個非常大的國家。所以在封鎖期間，我和詹姆斯以及我們的團隊一直在訪問不同的省份。而且潛力巨大，不僅可以引導我們的客戶前往最著名的景點，還可以引導我們前往許多其他新開發的景點。因此，居家度假、當地景點為我們贏得市場份額提供了新的機會。

And lastly, I think we are also be very prepared to further taking market share when the cross-border transaction opens. I think this is a great opportunity. Almost every country, all the travel industry-related job opportunities being depressed during this pandemic. So there is a thirst of the demand for us to drive the volume into this area. So we are working very closely with players in the global places to make sure once the vaccine is adopted, once the cross-border transaction take place, we'll be very well prepared to bring the Chinese customers into these areas.

最後，我認為我們也做好了跨境交易開放後進一步搶佔市場份額的準備。我認為這是一個很好的機會。幾乎每個國家，所有與旅遊業相關的就業機會在這次大流行期間都受到抑制。因此，我們迫切需要將銷量推向這一領域。因此，我們正在與全球各地的參與者密切合作，以確保一旦疫苗被採用，一旦跨境交易發生，我們將做好充分準備，將中國客戶帶入這些地區。

Your next question comes from Brian Gong from Citigroup.

你的下一個問題來自花旗集團的布萊恩龔。

So my question is regarding the margins. So we have done a lot of cost-saving measures in secondary (inaudible) 2, which are also reflected in our financials. So my question is, if we assume full recovery of outbound and international travel and a decent growth on domestic travel, say, in 2022 or 2023, what would our operating margin be under that scenario compared to pre-COVID-19 level?

所以我的問題是關於利潤的。所以我們在二級（聽不清楚）2中做了很多節省成本的措施，這些措施也反映在我們的財務上。所以我的問題是，如果我們假設出境和國際旅行全面恢復，國內旅行也有可觀的增長，例如在2022 年或2023 年，與COVID-19 之前的水平相比，在這種情況下我們的營業利潤率會是多少？

Yes. We -- although there are some fluctuate -- volatilities in the margin due to the COVID, but in general, we're still targeting at 20% to 30% non-GAAP operating margin, which we think is very achievable if everything resumed as normal.

是的。儘管由於新冠疫情，我們的利潤率出現了一些波動，但總的來說，我們的目標仍然是20% 至30% 的非GAAP 營運利潤率，我們認為如果一切都恢復正常，這是非常可以實現的。普通的。

Your next question comes from Tian Hou from T.H. Capital.

您的下一個問題來自 T.H. 的 Tian Hou首都。

Apologies that questioner has disconnected. That does conclude our time for questions. I would now like to hand the conference back to Senior Director, Michelle Qi.

抱歉提問者已斷開連線。我們的提問時間到此結束。現在我想將會議交回給資深總監 Michelle Qi。

Hello? Hello? Hello?

你好？你好？你好？

She's back.

她回來了。

Hi, Tian.

嗨，田。

Hi, Tian.

嗨，田。

I was muted. Okay, this is the question. So first, I'd say congratulations on Q4. It's really not easy to bring back the top line, bottom line back to almost normal.

我被靜音了。好吧，這就是問題。首先，我要祝賀第四季。要讓營收、利潤恢復到幾乎正常水準確實不容易。

So as the company refocus the business to domestic -- and then I do believe domestic is going to be really great in 2021. So the company did mention a lot of possibilities. So in the short-haul and the high-frequency product in the travel market, what's the company's plan to develop into it? And what is our advantage? That is my question. So I'm very excited for these 2 products, so I want to know more details about it.

因此，當公司將業務重新聚焦於國內業務時，我確實相信 2021 年國內業務將會非常出色。因此，該公司確實提到了許多可能性。那麼在旅遊市場的短程、高頻次產品上，公司有什麼發展計畫呢？我們的優勢是什麼？這是我的問題。所以我對這兩種產品感到非常興奮，所以我想了解更多關於它的細節。

Thank you, Tian. First of all, I think we -- as we, yes, are very focused on the travel verticals, all the content will be more relevant for our customers look for their, for example, their weekend getaway of staycations and scene tours. And secondly, thanks to our very strong product team, our short-haul and staycation product, especially the hotel and hotel-related packages, are very competitive in terms of both pricing as well as the coverage. Our livestreaming and special deals channels have become the go-to platform for travelers that seek value-for-money deals. The travel market is immense and we are confident that our growth potential will be further unlocked, especially in the quality travel market segment.

謝謝你，田。首先，我認為我們——是的，我們非常專注於旅遊垂直領域，所有內容都將與我們的客戶尋找更相關的內容，例如，他們的週末度假和場景旅遊。其次，由於我們非常強大的產品團隊，我們的短途和居家度假產品，尤其是酒店和酒店相關套餐，無論是定價還是覆蓋範圍都非常有競爭力。我們的直播和特價頻道已成為尋求超值優惠的旅客的首選平台。旅遊市場龐大，我們有信心進一步釋放成長潛力，特別是在品質旅遊細分市場。

That does conclude our time for questions. I would now like to hand the conference back to Senior Director, Michelle Qi.

我們的提問時間到此結束。現在我想將會議交回給資深總監 Michelle Qi。

Thank you. Thanks, everyone, for joining us today. You can find the transcript and webcast of today's call on investors.trip.com.

謝謝。謝謝大家今天加入我們。您可以在 Investors.trip.com 上找到今天電話會議的文字記錄和網路廣播。

We look forward to speaking with you on the second quarter 2021 earnings call. Thank you, and have a good day.

我們期待在 2021 年第二季財報電話會議上與您交談。謝謝你，有美好的一天。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Thank you.

謝謝。

That does conclude our conference for today. Thank you for participating. You may now disconnect.

我們今天的會議到此結束。感謝您的參與。您現在可以斷開連線。