Trip.com Group Limited (TCOM) 2020 Q1 法說會逐字稿

Thank you for standing by, and welcome to the Trip.com Group Limited Q1 2020 Earnings Conference Call. (Operator Instructions)

感謝各位耐心等候，歡迎參加 Trip.com Group Limited 2020 年第一季財報電話會議。(接線員指示)

I would now like to hand the conference over to Ms. Michelle Qi, Head of Investor Relations. Please go ahead.

現在我想將會議交給投資人關係主管 Michelle Qi 女士。請開始。

Thank you, Ashley. Thank you, everyone, for joining on the call today. Good morning, and welcome to Trip.com Group's 2020 Q1 Earnings Conference Call. Joining me today on the call are Mr. James Liang, Chief Executive Chairman of the Board; Ms. Jane Sun, Chief Executive Officer; and Ms. Cindy Wang, Chief Financial Officer.

謝謝你，Ashley。謝謝各位今天加入本次電話會議。早安，歡迎參加 Trip.com Group 2020 年第一季財報電話會議。今天與我一同出席的有董事會執行董事長 James Liang 先生、執行長 Jane Sun 女士，以及財務長 Cindy Wang 女士。

During this call, we will discuss our future outlook and performance, which are forward-looking statements made under the safe harbor provisions 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，我們將討論未來展望與營運表現，其中包含依據 1995 年《美國私人證券訴訟改革法》安全港條款所作之前瞻性陳述。前瞻性陳述具有內在風險與不確定性。因此，我們的實際結果可能與今日所表達的觀點存在重大差異。多項潛在風險與不確定性已在 Trip.com Group 向美國證券交易委員會提交的公開文件中列示。除非適用法律另有要求，Trip.com Group 不承擔更新任何前瞻性陳述之義務。

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

James、Jane 與 Cindy 將分享目前的策略與業務更新、營運重點與 2020 年第一季財務表現，以及 2020 年第二季展望。在事先準備的發言結束後，我們將進行問答環節。

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

接下來，我把電話交給 James。James，請。

Thank you, Michelle. Thank you, everyone, for joining us on the call today. 2020 thus far has been a challenging year for all of us. COVID-19 made its way across the world, affecting global economy and social orders and is hitting the travel industry especially hard. In China, we are glad to see continued recovery of domestic travel in the past few months. However, international demand plummeted as more and more country adopted home quarantine and border control policies.

謝謝你，Michelle。謝謝各位今天加入本次電話會議。截至目前，2020 年對我們所有人而言都是充滿挑戰的一年。COVID-19 蔓延全球，影響全球經濟與社會秩序，對旅遊產業的衝擊尤為嚴重。在中國，我們很高興看到過去幾個月國內旅遊持續復甦。然而，隨著越來越多國家採取居家隔離與邊境管制政策，國際需求大幅下滑。

In the past quarter, our first priority was to provide maximum protection for our customers. Between January and April, the company extended coverage and scope of cancellation provisions multiple times in response to the global development of coronavirus, to the greatest extent possible, securing refunds for travelers. Our direct expense related to the customer refunds topped RMB 1.2 billion at first quarter. At the same time, we extended the membership status for affected customers worldwide. In addition, Trip.com launched COVID-19 international travelers guide to help customers navigate the travel restrictions and access the latest refund and cancellation policies.

在上一季度，我們的首要任務是為客戶提供最大程度的保障。在 1 月至 4 月期間，公司因應全球疫情發展，多次擴大取消條款的涵蓋範圍與適用情形，在最大可能範圍內為旅客爭取退款。第一季與客戶退款相關的直接費用超過人民幣 12 億元。同時，我們為全球受影響的客戶延長會員等級有效期。此外，Trip.com 推出 COVID-19 國際旅客指南，協助客戶掌握旅遊限制並取得最新退款與取消政策資訊。

As a result of all our efforts, our NPS score reached a new high in Q1, demonstrating customer satisfaction and confidence in our service quality. We believe the accumulated customer goodwill translates into long-term loyalty and increasing lifetime value.

在我們各項努力之下，第一季的 NPS 分數創下新高，展現客戶對我們服務品質的滿意度與信心。我們相信，累積的客戶善意將轉化為長期忠誠度並提升客戶終身價值。

By now, cancellation rate has stabilized in most of our markets, and we are seeing increasing new orders in many areas. Given the level of uncertainties outside of China, we will focus our attention on China's domestic business in the near term. So far, we have seen recovery coming back fastest in the short-haul segment and lower-tier cities due to travel restrictions' impact to customer confidence, which disproportionately affect top-tier cities.

目前，在我們多數市場的取消率已趨於穩定，且在許多地區看到新訂單增加。鑑於中國以外地區仍存在高度不確定性，短期內我們將把重點放在中國國內業務。截至目前，我們看到短途旅遊與低線城市的復甦最快，原因在於旅遊限制對客戶信心的影響，對一線城市的衝擊相對更大。

As of recently, reservations for short-haul travel bookings have almost fully recovered compared to last year as more and more regions lift travel restrictions. Long-haul business and leisure travel demands are gradually increasing as well.

近期，隨著越來越多地區解除旅遊限制，短途旅遊預訂量相較去年幾乎已全面恢復。長途商務與休閒旅遊需求也在逐步回升。

Our product and marketing teams have been working closely with industry partners to launch products which catered to new customer needs in the COVID-19 new normality. For example, in the past 2 months, I've been spending 1 hour every week on live streaming platforms to promote our presale products, featuring attractive discounts and flexible cancellations.

我們的產品與行銷團隊正與產業夥伴緊密合作，推出符合 COVID-19「新常態」下客戶新需求的產品。例如，在過去兩個月，我每週都會在直播平台花 1 小時推廣我們的預售產品，主打具吸引力的折扣與彈性取消。

In addition to bookings, we have gained new customers, reactivating existing ones and increased exposure of our high-end products through the live streaming channels. It is worth noting that more than half the presales in the past months or so have been concentrated in high-star hotel products.

除了帶動預訂之外，我們也透過直播渠道獲得新客戶、喚醒既有客戶，並提升高端產品的曝光度。值得注意的是，過去幾個月的預售中，超過一半集中在高星級飯店產品。

Meanwhile, our international business are still under pressure from COVID-19 given the uneven approaches adopted by different regions. It may take longer for international travelers to come back in full. Despite the challenges, we're glad to see in the recent weeks local travel has started to show signs of recovery in certain international markets.

同時，由於各地採取的應對方式不一，我們的國際業務仍承受 COVID-19 帶來的壓力。國際旅客要全面回流可能需要更長時間。儘管面臨挑戰，我們很高興看到近幾週在部分海外市場，本地旅遊已開始出現復甦跡象。

Our operation will continue to be flexible and ready to adapt as the pandemic continues to develop across the world. The team will also take advantage of the business downtime to focus on internal improvements such as enhancing our technology infrastructure.

隨著疫情在全球持續演變，我們的營運將保持彈性並隨時準備調整。團隊也將利用業務放緩的時間，專注於內部改善，例如強化我們的技術基礎設施。

In the end, I would like to say thank you to our entire team again for their tireless efforts in working together and getting through this difficult time period with the company. With everyone's heart into it, we have been able to achieve new goals and reach new milestones despite the challenging external environment. I'd like to reiterate my sincere appreciation to our global partners who have worked with us along the way to protect customer interest and now promote industry recovery.

最後，我想再次感謝全體團隊在這段艱難時期與公司同心協力、辛勤付出。在大家全心投入之下，即使外部環境充滿挑戰，我們仍能達成新目標並取得新里程碑。我也要再次向一路與我們合作、共同保障客戶權益並推動產業復甦的全球合作夥伴致上誠摯謝意。

We firmly believe that COVID-19 will eventually pass and travel demand will persist. In the meantime, we will continue to focus on improving our product competitiveness and service quality in order to best position ourselves for the coming recovery.

我們堅信 COVID-19 終將過去，而旅遊需求也將持續存在。在此期間，我們將持續專注於提升產品競爭力與服務品質，以便在即將到來的復甦中取得最佳定位。

Hello, everyone. This is Jane. I would like to update you with the previous quarter. The first quarter of 2020 was hit hard by COVID-19. Total net revenue in Q1 decreased by 42% year-over-year, reflecting COVID-19 impact on China-related travel from late January and overseas activities from the second half of the quarter.

各位好。我是 Jane。我想向各位更新上一季度的情況。2020 年第一季受到 COVID-19 的嚴重衝擊。第一季總淨營收年減 42%，反映自 1 月下旬起對中國相關旅遊的影響，以及本季度後半段對海外業務活動的影響。

The company took immediate actions to ensure that we protect our customers' interests, support industry partners and make appropriate internal adjustments in response to the pandemic. In the first quarter, we achieved breakeven on operating income excluding expenses related to customer refunds. Although Q2 may present an even further decline with full quarter impact from COVID-19 especially on international business, we have already seen improving results across the board in recent weeks.

公司立即採取行動，以確保保障客戶權益、支持產業合作夥伴，並因應疫情進行適當的內部調整。第一季，若排除與客戶退款相關的費用，我們的營業利益達到損益兩平。雖然第二季可能因 COVID-19 全季度影響、尤其是對國際業務的衝擊而出現更進一步下滑，但近幾週我們已看到各項指標全面改善。

First of all, let me walk you through the domestic travel. We have seen the recovery is well on track. As James mentioned, China domestic travel has been on the track of consistent recovery since hitting a low in February. During the May Labor Day holiday, tourist number in China doubled compared to the previous Qingming Festival in April. Recently, new reservation for domestic hotel and air have rebounded to more than 70% of previous level. All of these are encouraging trends we believe will continue in the coming months.

首先，我先帶各位看一下國內旅遊的情況。我們看到復甦進展良好。如 James 所提到，中國國內旅遊自 2 月觸底後，已走在持續復甦的軌道上。在 5 月勞動節假期期間，中國旅遊人次較 4 月清明連假增加一倍。近期，國內飯店與機票的新預訂量已回升至先前水準的 70% 以上。這些都是令人鼓舞的趨勢，我們相信未來幾個月將持續延續。

Short-haul travel activities are the first to recover in China. To date, reservations for short-haul travel products, such as hotel within same provinces and same cities, attraction tickets and car rental services are approaching a full recovery. Long-haul business and the leisure activities are lagging due to certain regional travel restrictions and customers' concerns. However, we have seen a combination of China's effective containment measures, local government lifting travel restrictions and our team's efforts in developing new products to enhance our customers' confidence in travel. As a result, long-haul travel activities have also begin to catch up after the Labor Day holiday on May 1.

短途旅遊活動是中國最先復甦的部分。截至目前，短途旅遊產品的預訂量，例如同省或同城飯店、景點門票與租車服務，正接近全面恢復。由於部分地區旅遊限制以及客戶疑慮，長途商務與休閒活動的復甦相對落後。不過，我們看到中國有效的防控措施、地方政府解除旅遊限制，以及團隊開發新產品以提升客戶旅遊信心的努力相互配合。因此，在 5 月 1 日勞動節假期之後，長途旅遊活動也開始加速追趕。

Second, for the international travel, activities are still at a low level due to global spread of COVID-19 with early signs of recovery in certain markets. The outbound travel activities has been at a low level since late January due to tight international travel restrictions across countries and jurisdictions. We believe part of China's outbound travel demand will convert to high-end domestic travel activities if such situation continues.

第二，就國際旅遊而言，由於 COVID-19 在全球蔓延，相關活動仍處於低位，但在部分市場已出現初步復甦跡象。自 1 月下旬以來，因各國及各司法管轄區實施嚴格的國際旅行限制，出境旅遊活動一直維持在低位。我們相信，若此情況持續，中國部分出境旅遊需求將轉化為高端國內旅遊活動。

Our overseas business has also been under pressure since March for the same reason. However, on the positive note, we did start to see certain small but positive sign of recovery in markets where the virus is being well contained. For example, in the past 2 weeks, for Korean market, the domestic hotel bookings have regained positive year-over-year growth.

基於同樣原因，我們的海外業務自 3 月以來亦承受壓力。不過，正面的是，我們確實開始在病毒得到良好控制的市場看到一些雖小但正向的復甦跡象。例如，在過去兩週，韓國市場的國內酒店預訂已恢復為同比正增長。

We are focusing on improving the product and services, strengthening our partnership and increasing operation efficiencies. As pandemic continues to evolve, we will make sure our team remain vigilant and quick to adjust to the situation.

我們正專注於提升產品與服務、強化合作夥伴關係並提高營運效率。隨著疫情持續演變，我們將確保團隊保持警覺並能迅速因應情勢調整。

Throughout the crisis, we are extremely proud of our employees for their exceptional hard work to protect our customers' interest. At the beginning of the outbreak in China, our service, product and technology team all pooled in together and worked overnight to respond promptly to customers' cancellation and refund requests which came in more than 10x of regular volume. In addition, we quickly launched the international travel guide, providing easy access to the most updated information to our international travelers.

在整個危機期間，我們為員工為保障客戶利益所付出的卓越努力深感自豪。在中國疫情爆發初期，我們的服務、產品與技術團隊齊心協力，通宵達旦工作，迅速回應客戶的取消與退款需求，而該等需求量超過平時的 10 倍。此外，我們迅速推出國際旅行指南，讓國際旅客能便捷取得最新資訊。

In the past month, our team came up with new products, catering to specific consumers' needs arising from the pandemic. For example, together with our hotel partners, we launched health guardian alliance safety standard in order to boost consumers' travel confidence. We also worked with partners to put together attractive deals. Through creative marketing tools, such as live streaming, we are able to reach out to a wide audience and enhance our customers' interest for long-haul and for high-end travel packages. As a result, in the recent week, our high-end hotel recovered meaningfully and outpaced the other segments.

在過去一個月，我們的團隊推出了新產品，以滿足疫情帶來的特定消費者需求。例如，我們與酒店合作夥伴共同推出「健康守護聯盟」安全標準，以提升消費者的出行信心。我們亦與合作夥伴攜手推出具吸引力的優惠方案。透過直播等創意行銷工具，我們得以觸達更廣泛的受眾，並提升客戶對長途及高端旅遊套裝產品的興趣。因此，在最近一週，我們的高端酒店業務出現顯著回升，且增速超越其他細分領域。

Our collaboration with the industry partners have further strengthened our strength in this tough environment. Since our announcement of tourism revival V plan in March, with V standing for victory, we have received participations from 10,000 hotel operators, 500 airlines and hundreds of attractions. As of today, we have facilitated more than 17,000 loans through our financing platform, offering more than RMB 10 billion loans to our suppliers to cope with the economic hardship brought by the COVID-19.

我們與產業合作夥伴的協作在此艱難環境下進一步強化了我們的優勢。自我們於 3 月宣布「旅遊復甦 V 計畫」（V 代表勝利）以來，已獲得 10,000 家酒店經營者、500 家航空公司及數百個景點的參與。截至今日，我們已透過融資平台促成超過 17,000 筆貸款，向供應商提供逾人民幣 100 億元貸款，以應對 COVID-19 帶來的經濟困境。

Just 2 weeks ago, InterContinental Hotel Group also launched inaugural flagship stores on our platform. At this collaboration, the 2 companies agreed to a membership matching program that recognize each other's membership benefits, which will be providing our customers with the best interests as well as the collaboration for our partners.

就在兩週前，洲際酒店集團亦在我們平台上開設了首批旗艦店。在此次合作中，雙方同意推行會員等級匹配計畫，互相認可對方的會員權益，從而為客戶提供最大利益，同時也促進我們合作夥伴之間的協作。

In addition, to show our support to our global partners, we have also donated more than 3 million surgical masks to more than 25 countries around the world. Due to the uncertainty in international markets, we were well prepared for all possibilities including a potential prolonged crisis overseas.

此外，為表達對全球合作夥伴的支持，我們亦向全球超過 25 個國家捐贈了逾 300 萬個外科口罩。鑑於國際市場的不確定性，我們已為包括海外危機可能延長在內的各種情況做好充分準備。

As of March 31, our company had USD 9.6 billion on hand in capital reserve. To ensure maximum financial flexibility, we further announced a revolving credit facility of up to USD 1.5 billion in early April. The company also taken measures, such as reducing discretional spending and voluntary management pay cuts to ensure our organization are lean and efficient in response to the pandemic. The combined efforts will provide ample liquidity for the company to be able to emerge as a stronger player for the future.

截至 3 月 31 日，本公司持有 96 億美元的資本儲備。為確保最大的財務彈性，我們於 4 月初進一步宣布一項最高 15 億美元的循環信貸額度。公司亦採取多項措施，例如削減非必要支出及管理層自願減薪，以確保組織在疫情下保持精簡高效。上述綜合舉措將為公司提供充足流動性，使公司未來能以更強的姿態走出困境。

During this challenging time, we will work hard with our employees, customers, business partners and all stakeholders to streamline our organization and increase our efficiency. We want to thank everyone for their hard work and contribution.

在這段充滿挑戰的時期，我們將與員工、客戶、業務合作夥伴及所有利害關係人共同努力，精簡組織並提升效率。我們感謝每一位的辛勤付出與貢獻。

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

接下來，我把電話會議交給 Cindy。

Thank you, Jane. Thanks, everyone. The company's results for the first quarter of 2020 have been significantly and negatively impacted due to COVID-19. The pandemic drove a significant decline in travel demand, resulting in customer cancellation and reduced new orders. The impact also included the increase in bad debt provisions and impairments of long-term investments. Because the COVID-19 is still evolving, we may also need to continuously assess the amount of impairments and bad debt provisions in the following periods.

謝謝你，Jane。謝謝大家。由於 COVID-19 的影響，公司 2020 年第一季業績受到顯著且負面的衝擊。疫情導致旅遊需求大幅下滑，造成客戶取消訂單並減少新訂單。影響亦包括壞帳準備及長期投資減值的增加。由於 COVID-19 仍在演變，我們在後續期間也可能需要持續評估減值與壞帳準備的金額。

For the first quarter of 2020, Trip.com Group reported net revenue of RMB 4.7 billion, representing a 42% decrease from the same period in 2019 and a 43% decrease from the previous quarter. Accommodation reservation revenue for the first quarter of 2020 was RMB 1.2 billion, representing a 62% decrease from the same period in 2019 and a 61% decrease from the previous quarter.

2020 年第一季，Trip.com 集團淨營收為人民幣 47 億元，較 2019 年同期下降 42%，較上一季下降 43%。2020 年第一季住宿預訂營收為人民幣 12 億元，較 2019 年同期下降 62%，較上一季下降 61%。

Hotel bookings maintained double-digit growth in the first 20 days of January. Demand started to fall as the outbreak spread in China, hitting bottom in the following weeks. Since then, we have seen domestic bookings gradually recover month-over-month while international demand remain at low level.

酒店預訂在 1 月前 20 天仍維持雙位數增長。隨著疫情在中國擴散，需求開始下滑，並在接下來數週觸底。此後，我們看到國內預訂逐月逐步回升，而國際需求仍維持在低位。

Transportation ticketing revenue for the first quarter of 2020 was RMB 2.4 billion, representing a 29% decrease from the same period in 2019 and a 31% decrease previous quarter. Compared to other travel segments, total transportation ticketing revenue was less impacted by the COVID-19 during the first quarter of 2019, mainly due to a higher revenue mix from international business. International transportation sustained solid growth in the first half of the quarter and benefited from an increase in ticketing price.

2020 年第一季交通票務營收為人民幣 24 億元，較 2019 年同期下降 29%，較上一季下降 31%。與其他旅遊細分領域相比，交通票務總營收在 2019 年第一季受 COVID-19 的影響較小，主要因國際業務的營收占比較高。國際交通在本季上半段保持穩健增長，並受益於票價上升。

Packaged tour revenue for the first quarter of 2020 was RMB 523 million, representing a 50% decrease from the same period in 2019 and a 35% decrease from the previous quarter. Group and dynamic package products delivered strong results for travel activities made before Chinese New Year. Cross-region and outbound packaged tour business have been on restricted list since late January while travel activities such as attraction tickets gradually resumed in the second half of the quarter.

2020 年第一季度假產品（打包旅遊）營收為人民幣 5.23 億元，較 2019 年同期下降 50%，較上一季下降 35%。在春節前完成的旅遊活動方面，跟團與動態打包產品表現強勁。自 1 月下旬起，跨區域及出境度假產品業務被列入限制清單，而景點門票等旅遊活動在本季下半段逐步恢復。

Corporate travel revenue for the first quarter of 2020 was RMB 126 million, representing a 47% decrease from the same period in 2019 and a 66% decrease from the previous quarter. Revenues from other business sustained growth by 4% year-on-year for the first quarter of 2020, primarily driven by a strong performance of travel financial services.

2020 年第一季商旅營收為人民幣 1.26 億元，較 2019 年同期下降 47%，較上一季下降 66%。2020 年第一季其他業務營收同比增長 4%，主要由旅遊金融服務的強勁表現所帶動。

Gross margin was 74% for the first quarter of 2020, which decreased from 79% for the same period in 2019 and the previous quarter.

2020 年第一季毛利率為 74%，較 2019 年同期及上一季的 79% 下降。

Product development expenses for the first quarter of 2020 decreased by 33% to RMB 1.7 billion from the same period in 2019 and decreased by 37% from the previous quarter.

2020 年第一季產品研發費用較 2019 年同期下降 33% 至人民幣 17 億元，較上一季下降 37%。

Cost savings in product development in the first quarter was mainly driven by a decrease of performance-based bonus due to the pandemic. Headcount in product and development was stable on a year-over-year basis.

第一季產品研發的成本節省主要來自疫情導致的績效獎金下降。產品與研發人員編制同比保持穩定。

Sales and marketing expenses for the first quarter of 2020 decreased by 38% to RMB 1.4 billion from the same period in 2019 and decreased by 44% from the previous quarter. Cost savings in sales and marketing expenses in the first quarter was mainly driven by decrease of variable and discretional spending across marketing channels.

2020 年第一季銷售及行銷費用較 2019 年同期下降 38% 至人民幣 14 億元，較上一季下降 44%。第一季銷售及行銷費用的成本節省主要來自各行銷渠道的可變支出及非必要支出下降。

G&A expenses for the first quarter of 2020 increased by 136% to RMB 1.9 billion from the same period in 2019 and increased by 130% from the previous quarter. G&A expenses in the first quarter of 2020 included bad debt provision of RMB 1.2 billion for the increased receivables, mainly due to the refunds for reservation cancellations we paid on behalf of our travel suppliers and the increased credit risk as a result of the COVID-19 pandemic.

2020年第一季的一般及行政（G&A）費用較2019年同期增加136%至人民幣19億元，並較上一季增加130%。2020年第一季的G&A費用包含人民幣12億元的壞帳準備，係因應應收款項增加所致，主要由於我們代旅遊供應商支付的訂房取消退款，以及COVID-19疫情導致的信用風險上升。

Excluding the bad debt provisions, G&A expenses for the first quarter of 2020 decreased by 9% from the same period in 2019 and 3% from the previous quarter. Excluding share-based compensation charges, non-GAAP loss from operation was RMB 1.2 billion. Adjusting for expenses related to customer refunds, our non-GAAP operating income reached breakeven level.

若不含壞帳準備，2020年第一季的G&A費用較2019年同期下降9%，較上一季下降3%。若不含股份基礎給付費用，非GAAP營運虧損為人民幣12億元。若再調整與客戶退款相關的費用，我們的非GAAP營運收入達到損益兩平水準。

Other expenses for the first quarter of 2020 was RMB 3.8 billion, mainly related to fair value changes of equity security investments and impairment of certain long-term investments due to the COVID-19.

2020年第一季其他費用為人民幣38億元，主要與權益證券投資的公允價值變動，以及因COVID-19對部分長期投資提列減損有關。

Diluted losses per ADS were RMB 8.98 or USD 1.27 for the first quarter of 2020. Excluding share-based compensation charges and fair value change of equity security investments, non-GAAP diluted loss per ADS were RMB 3.73 or USD 0.53 for the first quarter of 2020.

2020年第一季每股美國存託憑證（ADS）稀釋虧損為人民幣8.98元或1.27美元。若不含股份基礎給付費用及權益證券投資的公允價值變動，2020年第一季每股ADS非GAAP稀釋虧損為人民幣3.73元或0.53美元。

As of March 31, 2020, the balance of cash and cash equivalents, restricted cash, short-term investment, held-to-maturity time deposits and financial products was RMB 68.2 billion or USD 9.6 billion.

截至2020年3月31日，現金及現金等價物、受限制現金、短期投資、持有至到期定期存款及理財產品的餘額為人民幣682億元或96億美元。

To ensure maximum financial flexibility, in April, the company entered into a facility agreement with certain financial institutions for up to USD 1 billion transferable term and revolving loan facility with an incremental facility of up to USD 500 million. In which, USD 1 billion has been successfully drawn down in May 2020, with effective interest rate between 1.15% to 1.25%.

為確保最大的財務彈性，公司於4月與若干金融機構簽訂融資協議，取得最高10億美元可轉讓定期及循環貸款額度，並另有最高5億美元的增額額度。其中，10億美元已於2020年5月成功提用，實際利率介於1.15%至1.25%。

In addition, by today, we have repaid USD 250 million of convertible notes and plan to settle additional convertible notes worth USD 700 million, maturing in July and USD 400 million with putable date in July should investors choose to exercise such rights, which altogether potentially reduce fully diluted ordinary share count by up to 3.15 million.

此外，截至今日，我們已償還2.5億美元可轉換公司債，並計畫清償額外7億美元、於7月到期的可轉換公司債，以及若投資人選擇行使相關權利，另有4億美元、可於7月行使賣回權日期的可轉換公司債；上述合計可望使完全稀釋後普通股股數最多減少315萬股。

The outbreak of COVID-19 has negatively impacted on our cash flow during the first quarter of 2020, which could continue into subsequent periods depending on the speed of recovery, both domestically and internationally. We frequently assess our liquidity position, and the company is confident to conclude that the combination of our existing cash reserves, cash flow from operations and financing sources are sufficient to meet our anticipated cash needs, including working capital, capital expenditures and repayment of financial obligations for the foreseeable future.

COVID-19疫情爆發已對我們2020年第一季的現金流造成負面影響，且視國內外復甦速度而定，該影響可能延續至後續期間。我們會頻繁評估流動性狀況，公司有信心認為，現有現金儲備、營運產生的現金流及融資來源的組合，足以滿足可預見未來的預期現金需求，包括營運資金、資本支出及償還金融義務。

Now turning to the second quarter of 2020. We expect a full quarter impact of COVID-19 despite sequential improvement across the board in recent weeks. For the second quarter of 2020, the company currently expects net revenue to decrease by 67% to 77% year-over-year.

接下來談2020年第二季。儘管近幾週各項業務均呈現環比改善，我們預期COVID-19仍將對第二季造成整季影響。就2020年第二季而言，公司目前預期淨營收將年減67%至77%。

Excluding share-based compensation, the company expects non-GAAP operating net loss will be in the range of RMB 1.1 billion to RMB 1.3 billion. This forecast reflects Trip.com Group's current and preliminary view, which is subject to change.

若不含股份基礎給付，公司預期非GAAP營運淨虧損將介於人民幣11億元至13億元。此預測反映Trip.com集團目前的初步看法，仍可能變動。

The increasing uncertainty due to the coronavirus outbreak further restricted our visibility. We will continue to monitor the market and provide more color to investors in time.

由於新冠病毒疫情帶來的不確定性升高，進一步限制了我們的能見度。我們將持續監測市場，並適時向投資人提供更多資訊。

With that, we will open up for Q&A. Operator, please.

接下來我們開放問答。請接線員開始。

(Operator Instructions) Your first question comes from Gregory Zhao with Barclays.

(接線員指示) 第一個問題來自Barclays的Gregory Zhao。

So I just want to understand how do you think about the COVID-19 will reshape the long-term travel industry demand and user behavior? As we see some of the business-driven travel demand has been replaced by some virtual technologies like during the past pandemic period, so how shall we think about the long-term dynamic about this?

我想了解你們如何看待COVID-19將如何重塑長期旅遊產業需求與用戶行為？我們看到在過去疫情期間，一些商務驅動的差旅需求被虛擬技術所取代，那麼我們應如何看待這種長期動態？

In the short or midterm, we believe business travel demand is generally resilient and a strong correlation with economic prosperity. For example, according to the recent survey for corporate travel clients, more than 80% of the corporate clients believe their travel budgets will recover and grow once the pandemic is over. In the long run, how will technology reshape business travel demand is still to be watched. In the past decades, business travel activity have enjoyed continued growth despite the fast-evolving telecom technologies. For leisure travel demand, as I have shared many times, the only ever-green and ever-growing industries are the ones that fulfill people's spiritual needs rather than materialistic needs. In many parts of the world, including China, tourism is one of the most resilient industry. We believe the disruption caused by the pandemic will eventually disappear and the travel demand will come back stronger after the pandemic.

在短期或中期，我們認為商務差旅需求整體上具韌性，且與經濟景氣高度相關。例如，根據近期針對企業差旅客戶的調查，超過80%的企業客戶相信，一旦疫情結束，其差旅預算將恢復並成長。長期而言，科技將如何重塑商務差旅需求仍有待觀察。過去數十年，即使電信技術快速演進，商務差旅活動仍持續成長。至於休閒旅遊需求，如我多次分享，唯一能長青且持續成長的產業，是滿足人們精神需求而非物質需求的產業。在包括中國在內的世界許多地區，旅遊業是最具韌性的產業之一。我們相信，疫情造成的擾動終將消退，疫情過後旅遊需求將以更強勁的態勢回歸。

Your next question comes from Thomas Chong with Jefferies.

下一個問題來自Jefferies的Thomas Chong。

I have a question about the Q2 revenue guidance as well as the second half outlook. Can management provide some guidance about how the performance across different segments in accommodation, transportation, corporate travel and others were trending in Q2 as well as second half?

我想問關於第二季營收指引以及下半年展望。管理層能否就住宿、交通、企業差旅及其他不同業務板塊在第二季及下半年的走勢提供一些指引？

Sure, Thomas. We expect -- so Q2 reflected the full quarter due to the COVID-19 especially for the international travel activities, which accounted for about 35% to 40% of our group's total revenue in the second quarter last year. Therefore, we expect total revenue to decrease 67% to 77% year-on-year. For different segment, we expect revenue for the accommodation reservation to decrease 67% to 77% year-on-year. Within the accommodation reservation business, our domestic travel activities continued to recover in the past 3 to 4 months. To date, the new reservations for the domestic hotel reached over -- reached over 70% compared with last year, while the price still is heavily discounted. The new reservation for our international travel activities is back to close to almost 0 for the full quarter due to the strict international travel restrictions, especially for the China outbound business. However, in some countries and markets, we noticed the early signs of recoveries in their domestic travel segment.

好的，Thomas。我們預期——第二季反映了COVID-19的整季影響，尤其是國際旅遊活動；而國際旅遊在去年第二季約占我們集團總營收的35%至40%。因此，我們預期總營收將年減67%至77%。就不同板塊而言，我們預期住宿預訂營收將年減67%至77%。在住宿預訂業務中，我們的國內旅遊活動在過去3到4個月持續復甦。截至目前，國內飯店的新訂單量已回升至去年同期的70%以上，但價格仍大幅折扣。由於嚴格的國際旅行限制，尤其是中國出境業務，第二季整季我們國際旅遊活動的新訂單幾乎回到接近0。不過，在部分國家與市場，我們注意到其國內旅遊板塊出現早期復甦跡象。

Just for your information, our international hotel revenue accounted for 20% to 25% of the total accommodation reservation in the second quarter last year.

供您參考，去年第二季我們的國際飯店營收約占住宿預訂總額的20%至25%。

On the -- with regard to the transportation reservation revenues, we expect it will decrease 70% to 80% year-over-year. The domestic travel activities continued to recover in the past 3 to 4 months. To date, the reservations for our domestic air also recovered over 70% compared with last year. But the new reservations for our international activities is back to close to 0 due to strict international travel restrictions for both China outbound as well as international travel.

至於交通預訂營收，我們預期將年減70%至80%。國內旅遊活動在過去3到4個月持續復甦。截至目前，我們國內機票預訂量也已回升至去年同期的70%以上。但由於針對中國出境及國際旅行的嚴格限制，我們國際業務的新訂單幾乎回到接近0。

And for your information, international transportation accounted for close to half of our total transportation revenue in the second half -- in the second quarter last year, which mainly includes our outbound air ticket as well as our air revenues from our international brands.

另外供您參考，去年第二季國際交通約占我們交通總營收的近一半，主要包括我們的出境機票，以及來自我們國際品牌的航空相關營收。

We expect revenue for packaged tour business to decrease 80% to 90% year-on-year. Although the cross-region and international travel package are still on the restriction list, we are happy to see reservations for our short-haul activities in China, such as attraction ticket, have been fully recovered and even recorded positive growth in recent weeks.

我們預期跟團旅遊業務營收將年減80%至90%。雖然跨區域及國際旅遊套裝產品仍在限制清單上，但我們很高興看到，中國境內短程活動（例如景點門票）的預訂已全面恢復，且近幾週甚至錄得正成長。

With regard to our corporate travel business, we forecast it will decrease about 65% to 75% year-over-year. Many large operations only resume travel activities in recent months. We expect our revenue from other business to decrease about 15% to 25% year-over-year.

關於我們的企業差旅業務，我們預計其同比將下降約65%至75%。許多大型企業的營運直到最近幾個月才恢復出差活動。我們預計其他業務收入同比將下降約15%至25%。

Your next question comes from Binnie Wong with HSBC.

下一個問題來自匯豐（HSBC）的Binnie Wong。

I think it's very understandable in terms of the pandemic hit to the travel business and here. So with that, I just want to understand better following on James comment in terms of the opening remarks, saying that there will be improvement in the technology side, improvement in the efficiencies. And then should we expect like down the road, right, the improvement at the end, right, should be able to help us to preserve the potential stable or maybe flattish earnings growth despite a hit to the top line, maybe towards on the latter part of the year?

我認為就疫情對旅遊業務的衝擊而言，這是非常可以理解的。因此，我想更進一步了解一下，延續James在開場發言中的評論，他提到技術端會有所改善、效率也會提升。那麼我們是否可以預期，往後來看，這些改善最終應能幫助我們在營收端受到衝擊的情況下，仍能維持潛在的穩定或可能持平的獲利成長，或許是在今年較後段？

And then also, can you also comment on -- because 3Q upcoming third quarter would be the seasonally the strongest quarter. So I guess with the focus shifting more in the domestic business, how is Ctrip positioning differently to gain better market share in the domestic market?

另外，也請你們評論一下——因為即將到來的3Q第三季通常是季節性最強的一季。所以我想，隨著重心更多轉向國內業務，攜程在國內市場為了取得更好的市占率，會如何以不同方式進行布局？

Thanks, Binnie. Yes, I think during the crisis, our technology team and product team have been strengthened. A lot of projects was accelerated to handle the 10x volume due to the crisis for cancellation, orders, et cetera. So we took this opportunity to preserve and strengthen our technology and product team, and they build stronger scalability, so that we can handle the expansion of the business going forward.

謝謝你，Binnie。是的，我認為在這次危機期間，我們的技術團隊和產品團隊都得到了強化。許多專案被加速推進，以因應危機帶來的取消、訂單等需求量暴增10倍。因此我們把握這個機會，保留並強化我們的技術與產品團隊，並建立更強的可擴展性，以便未來能夠支撐業務擴張。

In Q3, we are looking forward to the summer months based on a couple of observations. First of all, I think the government has done a very good job controlling the outbreak of the viruses, so we have seen consumers' confidence has been increasing. Secondly, during the recent quarter -- or recent weeks, we also have seen the fast recovery, particularly on the high end of the product has been gaining its momentum after May 1 Labor Day weekend. So we are hoping this trend will continue on into the Q3 summer week.

在第三季，我們對暑期月份抱持期待，基於幾點觀察。首先，我認為政府在控制病毒疫情爆發方面做得非常好，因此我們看到消費者信心正在提升。其次，在最近一個季度——或最近幾週——我們也看到快速復甦，尤其是高端產品在五一勞動節連假後重新獲得動能。因此我們希望這個趨勢能延續到第三季的暑期週期。

And thirdly, we expect certain outbound demand will be converted into the high end of the products and long-haul products in the summer months. So our team is working very hard to develop products that can satisfy the high-end customers' need because this year, they will not be able to go abroad as they do every year. So we would like to capitalize this demand and convert it in domestic demand for high-end product and long-haul product. So in technology front as well as a product innovation front, we are full force to be as innovative as possible. And our Chairman, James even leaded efforts. He is going to all the provinces with the promotion to encourage the consumers' confidence. So far, the result has been very positive.

第三，我們預期部分出境需求會在暑期轉化為國內的高端產品與長途產品需求。因此我們團隊正非常努力開發能滿足高端客戶需求的產品，因為今年他們將無法像往年一樣出國。所以我們希望把握這部分需求，將其轉化為國內對高端產品與長途產品的需求。因此在技術面以及產品創新面，我們全力以赴，盡可能保持創新。而且我們的董事長James甚至親自帶頭推動。他正在走訪各省進行推廣，以鼓勵消費者信心。到目前為止，成果非常正面。

Your next question comes from Jed Kelly with Oppenheimer.

下一個問題來自Oppenheimer的Jed Kelly。

Can you just talk about how as you begin to gradually recover into the second half of this year and into next year, how you're thinking sort of positioning your overall cost structure over the next 12 to 18 months?

你能否談談，隨著你們在今年下半年以及明年逐步復甦，你們如何思考在未來12到18個月內，整體成本結構的定位與安排？

Sure. We have a large portion in our cost structures, for example, cost of service and sales -- cost of service as well as the marketing expenses. They are variable cost or purely discretional costs, such as performance-based marketing expenses. And these 2 items account for more than half of our total cost and non-GAAP operating expenses. So for personnel-related expense, a significant portion is variable, such as performance-based bonus. We are also executing on ways to conserve resources and adapt to the changing market demand, for example, our management -- management team have taken voluntary pay cut since the first quarter. And in response to the pandemic, we have swiftly adopted the cost-control measures to reflect a significant slowdown in consumer demand. Our total cost and operating expenses actually decreased about 31% year-over-year in the first quarter. And in the second quarter, we expect our total cost savings will be around 40% to 50% compared with last year.

當然可以。我們的成本結構中有很大一部分，例如服務成本以及銷售——服務成本以及行銷費用。這些屬於變動成本或完全可自行決定的成本，例如以績效為基礎的行銷費用。而這兩項合計占我們總成本與非GAAP營運費用的一半以上。在人員相關費用方面，也有相當大一部分是變動的，例如績效獎金。我們也在執行各種方式以節省資源並適應不斷變化的市場需求，例如我們的管理——管理團隊自第一季起已自願減薪。並且為了因應疫情，我們迅速採取成本控制措施，以反映消費者需求大幅放緩。我們第一季的總成本與營運費用實際上同比下降約31%。而在第二季，我們預期總成本節省將較去年約下降40%至50%。

Your next question comes from James Lee with Mizuho.

下一個問題來自瑞穗（Mizuho）的James Lee。

Two questions here. One is more policy related for Jane here. Anything coming out of National Congress specifically on the policy perspective that could be positive for travel going forward? I'm also wondering what's the status of summer vacation for students that could impact the travel during the summer season as well?

這裡有兩個問題。第一個比較偏政策面，想請教Jane。全國人大是否有任何特別從政策角度出發、可能對未來旅遊業帶來正面影響的內容？我也想了解學生暑假安排的最新狀況，這可能也會影響暑期旅遊旺季。

And a question for Cindy here, how should we think about the expense level for second quarter, given the revenue challenges that you provided in your guidance here?

另外一個問題想請教Cindy：在你們提供的營收指引所反映的挑戰下，我們應該如何看待第二季的費用水準？

Thanks, James. I think the government has put in very decisive policies first to contain the outbreak of the virus. So the whole country right now is very safe, and consumers' confidence in the control of the pandemic has been very positively enhancing.

謝謝你，James。我認為政府首先採取了非常果斷的政策來遏制病毒疫情的爆發。因此目前全國都非常安全，消費者對疫情控制的信心也在非常正面地提升。

Secondly, on economic front, the government also put in stimulus package to improve the employment level to increase the recovery of the economy, which is very positive for our travel industry, and we are hoping that city to city, state to state, travel will also be more open and more enhanced going forward. We have already seen positive recovery starting from May 1 Labor Day holiday, particularly on the high end of the product. So we are confident that going forward that we will see a recovery. And particularly, some of the demand from overseas will be converted into domestic demand. So our product team is working very hard to make sure we capitalize on this demand. Thank you, James.

第二，在經濟層面，政府也推出刺激方案以改善就業水準、促進經濟復甦，這對我們旅遊產業非常正面；我們也希望未來城市之間、省份之間的出行會更加開放、更加提升。我們已經看到自五一勞動節假期開始出現正向復甦，尤其是在高端產品方面。因此我們有信心，未來將會看到復甦。特別是部分海外需求將轉化為國內需求。因此我們的產品團隊正非常努力，確保我們能把握這部分需求。謝謝你，James。

Yes. On the cost control side, in the second quarter, we expect our total cost savings will be about 40% to 50% decrease compared with last year. And for the first quarter, actually, we already implemented a lot of cost-control measures, which resulted in instant significant decrease on the cost side. And excluding onetime bad debt provisions that we made in the first quarter in relation with our refund policy, actually, we achieved the breakeven level on the non-GAAP operating level.

是的。在成本控制方面，第二季我們預期總成本節省將較去年下降約40%至50%。而在第一季，我們其實已經實施了許多成本控制措施，從而使成本端立即出現顯著下降。並且若排除第一季因應退款政策而計提的一次性壞帳準備，我們在非GAAP營運層面實際上已達到損益兩平。

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

下一個問題來自T.H. Capital的Tian Hou。

Yes. So I have two questions. One is regarding Skyscanner. As Europeans start to go back to work, resume the business operations, I wonder how Skyscanner is recovering. And so what can management do there in terms of Skyscanner's business?

是的。我有兩個問題。第一個是關於Skyscanner。隨著歐洲人開始回到工作崗位、恢復商業運作，我想了解Skyscanner的復甦情況如何。那麼管理層在Skyscanner業務方面可以做些什麼？

And also in terms of OTA penetration in China, I can imagine after the coronavirus, a lot of agencies, offline agencies are hard to survive. So is that a true statement that OTA penetration post the virus is going to be much higher than before? So that's the two questions.

另外，關於中國OTA滲透率，我可以想像在新冠疫情之後，許多線下旅行社很難生存。那麼這樣的說法是否正確：疫情之後的OTA滲透率將會比之前高很多？以上是兩個問題。

Thank you. For our global team outside of China, we -- they are also reviewing their business and make adjustment for the cost structure very carefully, including our teams in Europe, in America, everywhere else, outside of China. So I'm sure the cost structure will also reflect their business recovery progress as we're monitoring the situation very carefully.

謝謝。對於我們在中國以外的全球團隊，我們——他們也正在檢視自身業務，並非常謹慎地調整成本結構，包括我們在歐洲、美國以及其他所有中國以外地區的團隊。因此我相信，隨著我們非常密切地監測情勢，成本結構也會反映其業務復甦進度。

Second, on OTA. Yes, every time various crisis, it's always a good time for us to reexamine our technology team as well as product team and make sure we extend our leadership in the travel industry. Thank you.

第二，關於 OTA。是的，每一次發生各種危機，對我們而言都是重新檢視技術團隊以及產品團隊的好時機，並確保我們能夠延續在旅遊產業的領先地位。謝謝。

Your next question comes from Ronald Keung with Goldman Sachs.

下一個問題來自高盛（Goldman Sachs）的 Ronald Keung。

So my question is on the shift back to domestic. As we shift more focus to domestic travel in the near term, do we have different strategies for our Ctrip, Qunar brands and even your affiliate, Tongcheng eLong? Just between higher and lower-tier markets, and I'm thinking about, are you also reattracting your original outbound travelers to domestic? So what are the kind of strategies with this and the different brands?

我的問題是關於回歸國內市場的轉變。當我們在短期內把更多重心轉向國內旅遊時，針對攜程（Ctrip）、去哪兒（Qunar）品牌，甚至你們的聯營公司同程藝龍（Tongcheng eLong），是否會有不同策略？特別是在高線與低線市場之間；另外我也在想，你們是否也在把原本的出境旅客重新吸引回國內旅遊？因此，這方面以及不同品牌的策略是什麼？

Sure. We have different brands to cover different segments and penetrate into different tiers of the cities and the provinces. Ctrip brand is known for high quality for business travelers and high end of the products. So with the limitation of the outbound business, this brand will be fully innovative to make sure we capitalize on the recovery of the business travelers as well as the international demand, which is being converted into the high end of the product into China. So our Chairman is leading the efforts for every province to open up more travel resources to be able to satisfy the high end of the needs, and there are lots of high end of the hotels and resorts being discovered through these efforts. And we have seen after the May holiday, the recovery of the high-end hotels have outpaced the other segments, which is very positive.

當然。我們有不同品牌來覆蓋不同客群，並滲透到不同層級的城市與省份。攜程品牌以高品質著稱，主要服務商務旅客與高端產品。因此在出境業務受限的情況下，這個品牌將全面創新，以確保我們能把握商務旅客復甦，以及國際需求轉化為中國境內高端產品的機會。我們的董事長正帶領各省的工作，開拓更多旅遊資源，以滿足高端需求；透過這些努力，也發掘了許多高端飯店與度假村。我們也看到在五一假期之後，高端飯店的復甦速度已超越其他細分市場，這是非常正面的。

And secondly, we also think that in the summer, normally, our outbound travel will hit a new high during the summer break with families and children going abroad. This time, because of the COVID-19, this demand will be converted into the domestic need. So our team also are being very innovative and creative in order to convert this demand into the long-haul travel as well as the luxury products within China. We hope to capitalize on these conversions.

第二，我們也認為在夏季，通常出境旅遊會在暑假期間創新高，因為家庭與孩子會出國。這一次因為 COVID-19，這部分需求將轉化為國內需求。因此我們的團隊也非常創新且富有創意，將這些需求轉化為中國境內的長途旅行以及奢華產品。我們希望把握這些轉化帶來的機會。

Yes. Just share some color on the recent development on each segment -- on different segments. We noticed that our short-haul travel activity is almost fully recovered in recent weeks. For example, our hotel reservations within the province and our car rental business are almost approaching fully recovered. And our renovations for the local attraction tickets resumed growth recently.

是的。我補充一些近期各細分市場的進展。我們注意到，近幾週短途旅遊活動幾乎已完全恢復。例如，我們省內飯店預訂與租車業務幾乎接近完全恢復。而本地景點門票的預訂近期也恢復成長。

Your next question comes from Alex Poon with Morgan Stanley.

下一個問題來自摩根士丹利（Morgan Stanley）的 Alex Poon。

I have two questions, first is regarding your hotel business. How should we think about the balancing of like bargaining power between OTAs, hotels and offline suppliers? And looks like the pandemic is going to help OTA more because you have the most traffic. And so going forward, if I think about the next -- next year is would there be any changes to the take rates, advertising revenue coming from these hotels, helping your overall domestic margins?

我有兩個問題，第一個是關於你們的飯店業務。我們應該如何看待 OTA、飯店與線下供應商之間議價能力的平衡？看起來疫情可能會更有利於 OTA，因為你們擁有最多流量。因此往後如果看明年，抽成率（take rate）或來自飯店的廣告收入是否會有任何變化，進而幫助你們整體國內業務的利潤率？

And because the domestic business -- my second question is, is much more controllable and it's recovering, and assuming next year, can we expect the operating margin to go back to 20%?

另外，因為國內業務——我的第二個問題是——更可控且正在復甦；假設明年，我們是否可以期待營業利潤率回到 20%？

The pandemic hit the global travel industry and no country and no industry have ever had the opportunity to rehearse for this kind of hit. So therefore, it's very important for us to team up with all our partners in the global places to make sure we bring demand to our hotel partners and support them as much as possible. So we'll reach out to our partners in the global spaces to make sure we understand their needs and their potential for the recovery. What we have done is launched our revival V plan in the travel industry, where hotels and attractions have idle and perishable inventory, we're able to link them up with the increased demand from our consumers. So at a very de minimis incremental costs, we're able to bring demand to us, which is tremendous for them to gradually reach the breakeven point. So we are very -- working very hard to make sure we understand our ecosystem and stimulate the demand from our consumer side and bring them to our partners which have idle, perishable inventory. So we'll work very hard to try to be very innovative to support our partners in the global places.

疫情衝擊了全球旅遊產業，沒有任何國家、任何產業曾有機會為這種衝擊進行演練。因此，對我們而言，與全球各地的合作夥伴攜手合作非常重要，以確保我們能為飯店合作夥伴帶來需求並盡可能支持他們。我們會與全球各地的合作夥伴聯繫，確保我們了解他們的需求以及復甦的潛力。我們所做的是在旅遊產業推出復甦 V 計畫（revival V plan）；在飯店與景點存在閒置且易耗損的庫存時，我們能把它們與消費者增加的需求連結起來。因此在極低的增量成本下，我們能為他們帶來需求，這對他們逐步達到損益兩平非常關鍵。所以我們非常——我們正非常努力，確保理解我們的生態系，從消費者端刺激需求，並把需求帶到那些擁有閒置、易耗損庫存的合作夥伴那裡。因此我們會非常努力，並嘗試以創新方式在全球各地支持我們的合作夥伴。

Your next question comes from Natalie Wu with CICC.

下一個問題來自中金公司（CICC）的 Natalie Wu。

A couple of questions here. Firstly, have you noticed any take rate change during the outbreak given the travel inventory issues you just mentioned? And also, how should we see the competition landscape evolution especially in lower-tier cities due to the outbreak? And lastly, regarding live streaming, how does that contribute to your GMV users and financials? Would be great if management can share more colors on that.

我這裡有幾個問題。第一，鑑於你們剛提到的旅遊庫存問題，在疫情期間你們是否注意到抽成率（take rate）有任何變化？另外，疫情之後，尤其在低線城市，競爭格局的演變應該如何看？最後，關於直播，它如何貢獻你們的 GMV、用戶以及財務表現？如果管理層能分享更多細節就太好了。

For take rate, I think it's very much a dynamic equation. So we allow all kinds of hotels to be on our platform and depending on how much inventory they have, how much demand they need. It's a dynamic balancing, so we enable them to use any kind of method. For example, certain hotel will say we use a step-up model, the more revenue you bring, the more commission you will get. Some other hotels will say, "Okay, we give you a fixed rate." So as the volume increases, the total amount of the revenue increases as well. We are very open-minded and work with our hotel partners in any kind of mechanism that they feel comfortable to support them.

關於抽成率（take rate），我認為這很大程度上是一個動態方程。我們允許各類飯店入駐我們的平台，並會依據他們有多少庫存、需要多少需求來做動態平衡。因此我們讓他們可以採用各種方式。例如，有些飯店會說我們採用階梯式模式，你帶來的營收越多，你獲得的佣金比例就越高。另一些飯店會說：「好，我們給你固定費率。」因此隨著交易量增加，總收入金額也會增加。我們非常開放，並會以任何他們覺得舒適的機制與飯店合作夥伴合作，以支持他們。

And in terms of the penetration into the local market, as we discussed, we have seen the short-haul packages and hotels and business recover fully already. Going forward, after May 1 holiday, we feel that state to state, city to city travel will enhance. And we already see across the line, including transportation, high-end hotels, et cetera, have seen positive recovery after the May holidays.

至於在本地市場的滲透，如我們所討論的，我們已看到短途套裝、飯店以及相關業務都已完全恢復。往後，在五一假期之後，我們認為跨省、跨市的旅行將會增強。而且我們已經看到整體各條線，包括交通、高端飯店等，在五一假期後都出現正向復甦。

Thank you. That is all the questions we have time for today. I'll now hand back to Ms. Qi for closing remarks.

謝謝。今天我們的提問時間就到這裡。我現在把時間交回給 Qi 女士做結語。

Thank you. Thank you, everyone, for joining us today. You can find the transcript and webcast of today's call on investors.trip.com. We look forward to speaking with you on our second quarter 2020 earnings call. Thank you, and have a good day.

謝謝。謝謝各位今天參與。您可以在 investors.trip.com 找到今天電話會議的逐字稿與網路直播回放。我們期待在 2020 年第二季財報電話會議上再與各位交流。謝謝，祝各位有美好的一天。

Thank you.

謝謝。

Thank you.

謝謝。