Trip.com Group Limited (TCOM) 2019 Q4 法說會逐字稿

Thank you for standing by, and welcome to the Trip.com Group 2019 Q4 Earnings Conference Call. (Operator Instructions)

感謝各位耐心等候，歡迎參加 Trip.com Group 2019 年第四季財報電話會議。（接線員指示）

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

現在我想將會議交給資深投資人關係總監 Michelle Qi。請開始。

Thank you, Ben. Thank you, everyone. Good morning. Welcome to Trip.com Group's 2019 Q4 and full year earnings conference call. Joining me today on the call are Mr. James Liang, Chief Executive Chairman of the Board; with Jie Sun, Chief Executive Officer; and Ms. Cindy Wang, Chief Financial Officer. During this call, we will discuss our future outlook and performance, which are forward-looking statements made under safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

謝謝你，Ben。謝謝大家。早安。歡迎參加 Trip.com Group 2019 年第四季及全年財報電話會議。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 Jie Sun，以及財務長 Cindy Wang 女士。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。

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. James, Jie and Cindy will share on our strategy and business updates, operating highlights and financial performance for fourth quarter and full year 2019 as well as the outlook for the first quarter of 2020.

前瞻性陳述涉及固有風險與不確定性。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載明於 Trip.com Group 向美國證券交易委員會提交的公開文件中。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、Jie 與 Cindy 將分享我們的策略與業務最新進展、營運重點與 2019 年第四季及全年財務表現，以及 2020 年第一季展望。

After the prepared remarks, we will have a Q&A session. With that, I will turn the call over to James. James, please.

在預先準備的發言之後，我們將進行問答環節。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. 2019 was a formative year for us. We celebrated our 20th birthday and announced the rebranding into Trip.com Group.

謝謝你，Michelle。謝謝各位今天參加本次電話會議。2019 年對我們而言是奠基的一年。我們慶祝了 20 週年，並宣布更名為 Trip.com Group。

Looking back, we are pleased with the solid performance of our team in 2019. Total operating income increased to 94% year-over-year, reaching RMB 5 billion. First, each (inaudible) non-GAAP operating margin reached 19%, right on track to our original targets.

回顧 2019 年，我們對團隊的穩健表現感到滿意。總營運收入年增 94%，達到人民幣 50 億元。首先，經調整（聽不清）非 GAAP 營業利益率達到 19%，與我們原先目標一致。

The continued marketing expansion coincided with our team's rigorous execution expand our share across markets that we operate in. In China, we further listed the multiples of our core business growth rates against the industry, seeing particularly strong user growth from third and second-tier cities. Outside of China, our Trip.com brand has made solid progress entering new markets and gaining market share in APAC region.

持續的行銷擴張，配合團隊嚴謹的執行力，推動我們在所營運的各市場擴大市占。在中國，我們進一步將核心業務成長率與產業相比呈現倍數領先，尤其來自三、二線城市的用戶成長特別強勁。在中國以外，我們的 Trip.com 品牌在進入新市場並於亞太（APAC）地區取得市占方面，已取得穩健進展。

By the end of 2019, brand Trip.com is operating in 27 markets and supporting 20 languages. For the full year 2019, our core OTA brands achieved a total GMV of RMB 865 billion or USD 124 billion, up 19% year-over-year. I'd like to thank our team again for delivering excellent results despite certain industry headwinds. The beginning of 2020 has been challenging for the travel industry worldwide due to the novel coronavirus.

截至 2019 年底，Trip.com 品牌已在 27 個市場營運，並支援 20 種語言。2019 年全年，我們核心 OTA 品牌合計 GMV 達人民幣 8,650 億元（約 1,240 億美元），年增 19%。儘管面臨部分產業逆風，我仍要再次感謝團隊交出優異成果。由於新型冠狀病毒，2020 年開局對全球旅遊產業而言充滿挑戰。

Initial outbreak brought tens of millions of cancellations during the Chinese New Year and restrained travel activities after the holiday. Recently, we are encouraged to see signs of the successful containment of the virus container and initial recovery of domestic travel activity. Trip.com Group was the first in the industry to respond to the pandemic with a set of comprehensive protection measures, including safeguard cancellation guarantee policy and our partnership to go forward. As the outbreak evolves over time, we have expanded our guarantee to increase effective the customers worldwide. We are extremely proud of our team, especially customer services for what they were able to achieve during this special time.

疫情初期爆發在農曆新年期間帶來數以千萬計的取消訂單，並在假期後抑制了旅遊活動。近期，我們欣見病毒獲得成功控制的跡象，且國內旅遊活動開始初步復甦。Trip.com Group 是業界第一時間因應疫情的公司之一，推出一系列全面性的保障措施，包括取消保障政策以及我們的合作夥伴共同推進。隨著疫情隨時間演變，我們已擴大保障範圍，以提升對全球客戶的有效保障。我們對團隊深感自豪，尤其是客服團隊在這段特殊期間所達成的成果。

Many of them worked over the holidays and after hours in order to handle the sudden spike in customer requests. I'd like to thank all of our teams for their top-quality services and efforts in the joint fight against the impact of coronavirus on our customers and on the company. This further illustrates our belief that people are our most important asset and retaining and motivating talent will always be a top priority. During this period, we received many customer praises on our timely and professional service.

他們之中許多人在假期期間及下班後仍持續工作，以因應客戶需求的突然激增。我想感謝所有團隊提供的高品質服務與努力，與我們共同對抗冠狀病毒對客戶及公司造成的影響。這也進一步印證我們的信念：人才是我們最重要的資產，而留任並激勵人才永遠是首要任務。在此期間，我們也收到許多客戶對我們即時且專業服務的讚揚。

We believe the customer goodwill will translate into long-term engagement and retention, which will support our sustainable growth in the future. We also continue to appreciate the support from our value to partners and have announced a set of measures to help them manage through this difficult period. Along with our partners, we look forward to providing the best travel services -- and products once this outbreak is contained.

我們相信，客戶的善意將轉化為長期的互動與留存，並在未來支持我們的永續成長。我們也持續感謝價值鏈合作夥伴的支持，並已宣布一系列措施，協助他們度過這段艱難時期。我們期待與合作夥伴一同，在疫情受控後提供最優質的旅遊服務與產品。

Last but not least, we would like to give our highest gratitude to healthcare professionals all over the world, which have been fighting tirelessly to keep everyone safe during the crisis.

最後但同樣重要的是，我們要向全球醫護專業人員致上最高的感謝；他們在危機期間不懈奮戰，守護大家的安全。

I'm pleased to announce that the company will donate 1 million surgical masks to affected countries worldwide and will provide our VIP benefits to healthcare workers in China. Despite near-term challenges, we believe the impact from the novel coronavirus is going to be one-off. We remain confident for the long-term prospects of both the travel industry and our business fundamentals. In the past two decades, the travel industry has witnessed a serious of global health crisis, each time, global travel demand proved its resilience and rebounded strongly after successful containment of the virus. In recent weeks, we are encouraged to see the domestic travel starting to pick up as China continues on its path to recoveries. While the country is still on alert, many local municipalities are rolling out measures to bolster recovery of tourism industry. Nowadays, traveling has become a necessity for more and more people in China and abroad. We believe the coronavirus has not dented the healthy fundamentals of China's travel market, rather it will accelerate industry consolidation and online penetration into lower-tier cities. Similarly, for international markets, we believe that underlying travel demand remains promising, and we expect to see strong recovery once the outbreak is behind us.

我很高興宣布，公司將向全球受影響國家捐贈 100 萬個外科口罩，並將為中國的醫護人員提供我們的 VIP 權益。儘管短期面臨挑戰，我們認為新型冠狀病毒的影響將是一次性的。我們對旅遊產業的長期前景以及公司基本面仍充滿信心。過去二十年，旅遊產業歷經一系列全球健康危機；每一次在病毒成功受控後，全球旅遊需求都展現韌性並強勁反彈。近幾週，隨著中國持續走在復甦道路上，我們欣見國內旅遊開始回溫。儘管全國仍保持警戒，許多地方政府正推出措施以提振旅遊產業復甦。如今，無論在中國或海外，旅行已成為越來越多人的必要需求。我們認為，冠狀病毒並未削弱中國旅遊市場的健康基本面，反而將加速產業整合，以及線上滲透向低線城市擴張。同樣地，對於國際市場，我們相信潛在旅遊需求仍具前景，並預期在疫情過後將出現強勁復甦。

With that, I will turn to Jie for our operating highlights.

接下來，我將把時間交給Jie，請她分享我們的營運重點。

Thank you, James. Good morning, everyone. I would like to start with a quick recap of the last quarter of 2019. Despite the market headwinds around certain destinations, we are glad to see Trip.com Group delivered a solid execution on our strategy. First, for domestic travel market, we continued to expand our market share, especially in targeted second and third tier cities, which accounted for more than 60% of Ctrip's new users. Lower end hotels and transportation products have proven to be effective gateway product for new customers. Ctrip branded low end hotel grew about 50% year-over-year in the fourth quarter. In addition, our offline store continues to act as part of our core strategy to increase our influence in low tier cities. In the markets where we enjoy clear advantages, we have been working to further improve service quality thereby enhancing our competitiveness. For example, over 50,000 hotels have agreed to provide outstanding benefits to our transportation cross-sell customers. The participating hotels have seen significant incremental volume through these programs. Second, for the outbound travel market, certain China outbound destinations continued to be impacted by macro headwinds, while others saw growth at even faster pace. In Q4, revenue growth for hotels excluding Greater China destination reached 51% year-over-year. For our overseas brand, Skyscanner made additional progress in increasing its direct booking ratio. Trip.com brand recorded another strong quarter with triple-digit year-over-year growth in international air ticketing volume. As James mentioned, the beginning of 2020 has been challenging with the outbreak of the coronavirus. However, the strong operational efficiencies and the financial resources we have built over the years have prepared us well for times like this. To date, tens of millions of travel orders have been canceled due to the outbreak, totaling over RMB 31 billion in GMV terms. The company was the first in the industry to announce a set of customer protection measures upon initial outbreak, which subsequently extended to become the most comprehensive amongst peers, providing strong backing for our customers. Our safeguard cancellation guarantee policies covers customers in China and abroad who are unable to travel due to the travel restrictions or diagnosis, as well as those who work so hard at the medical front line in the fight against the virus. The outbreak of the virus is unfortunate -- is an unfortunate global development that has affected many families and lives directly and indirectly. We strongly believe it is our responsibility to protect effected customers to the best of our abilities.

謝謝你，James。各位早安。我想先快速回顧2019年最後一季的表現。儘管部分目的地面臨市場逆風，我們很高興看到Trip.com Group在策略執行上交出穩健成績。首先，在國內旅遊市場方面，我們持續擴大市占率，特別是在重點布局的二、三線城市，這些城市貢獻了超過60%的攜程新用戶。中低端飯店與交通產品已證明是吸引新客的有效入口產品。第四季攜程品牌中低端飯店年增約50%。此外，我們的線下門市也持續作為核心策略的一部分，以提升我們在低線城市的影響力。在我們具備明顯優勢的市場中，我們持續致力於進一步提升服務品質，從而增強競爭力。例如，已有超過50,000家飯店同意為我們的交通交叉銷售客戶提供優質福利。參與的飯店透過這些方案獲得顯著的增量訂單。第二，在出境旅遊市場方面，部分中國出境目的地仍受宏觀逆風影響，而其他目的地則以更快速度成長。第四季，剔除大中華區目的地後的飯店收入年增達51%。在海外品牌方面，Skyscanner在提升直接預訂占比方面取得進一步進展。Trip.com品牌再度交出強勁一季，國際機票出票量年增達三位數。如James所提到，2020年初因新冠病毒爆發而充滿挑戰。然而，我們多年來建立的強大營運效率與財務資源，使我們能夠更好地應對這樣的時刻。截至目前，因疫情已取消的旅遊訂單達數千萬筆，以GMV計合計超過人民幣310億元。公司在疫情初期即率先於業界宣布一系列客戶保障措施，之後也擴展為同業中最全面的方案，為客戶提供強力後盾。我們的安心取消保障政策涵蓋中國境內外因旅行限制或確診而無法出行的客戶，也涵蓋在抗疫醫療第一線辛勤工作的群體。病毒爆發令人遺憾——這是一項不幸的全球性事件，直接或間接影響了許多家庭與生命。我們堅信，盡我們所能保護受影響的客戶是我們的責任。

The company will take on one-time financial hit as a result. But we believe it is the right thing for us to do for our customers, for our industry and for our shareholders in the long run.

因此，公司將承擔一次性的財務衝擊。但我們相信，從長期來看，這對客戶、對產業以及對股東而言都是正確的做法。

The accumulated customer goodwill will deliver a long-lasting sustainable growth [in the long run] (corrected by company after the call).

累積的客戶善意將在長期帶來持久且可持續的成長（公司於電話會議後更正）。

Next, I would like to spend a minute to thank our team for their contribution during this special time. Whether remote or on-site, our customer service team worked tirelessly day and night to assist our customers with changes in their travel plans. Many of them sacrificed the holidays and worked for extended hours so our customers could be well taken care of as quickly as possible. New records and milestones were reached which we are extremely appreciative -- which we are extremely appreciative and products. During the Chinese New Year, even though peak core volume was over 10x of regular capacity, our customer satisfaction rate increased significantly.

接下來，我想花一點時間感謝我們的團隊在這段特殊時期的貢獻。無論遠端或在現場，我們的客服團隊日以繼夜、不知疲倦地協助客戶調整行程。許多人犧牲假期並延長工時，只為讓客戶能盡快獲得妥善照顧。我們達成了新的紀錄與里程碑，對此我們非常感激——我們非常感激以及產品。在農曆新年期間，即使尖峰核心量超過平時產能的10倍，我們的客戶滿意度仍顯著提升。

In addition, our technology and product team also responded with great speed. We're able to launch auto cancellation for certain qualified products with new policies issued. This greatly shortened the waiting time for our customers. As approximately 90% of accommodation transportation cancellation request was sales completed online. Such speed and responses expenses reflected Trip.com's highly dedication to service quality, especially during the times of need for our customers.

此外，我們的技術與產品團隊也以極快速度做出回應。在新政策發布後，我們得以針對部分符合資格的產品推出自動取消功能。這大幅縮短了客戶的等待時間。由於約90%的住宿與交通取消申請可在線上完成。這樣的速度與回應投入，反映了Trip.com對服務品質的高度投入，尤其是在客戶最需要的時刻。

We also would like to thank our most valued hotels, airlines and other travel partners for their timely assistance during this difficult situation. As of now, more than 1 million global hotels have joined us for safe cancellation guarantee initiatives. And over 110 domestic and international airlines have agreed to provide free cancellation for qualified products. In response to help our customers through this period of economic hardship, we also announced a set of measures to alleviate their burden. These include campaign and marketing assistance for participating hotels in our safeguard cancellation guarantee initiatives, including waiving and reducing marketing costs and offering additional campaign resources, waiving of nonrefundable costs that package suppliers incurred during the recent cancellations. Capital assistance for our hotels and other travel suppliers. Including RMB 1 billion fund and loans assistant program with our banking partners and over 2,000 free online courses for our business partners. And 2 weeks ago, we launched Tourism Revival V Plan. V stands for victory Ctrip has contributed over RMB 1 billion of resources to work with over more than 100 local destinations travel bureaus, industry partners and other organizations to prepare for the recovery in China, and we will take the lead in the recovery efforts.

我們也要感謝最重要的飯店、航空公司及其他旅遊合作夥伴在這段艱難時期提供及時協助。截至目前，已有超過100萬家全球飯店加入我們的安心取消保障倡議。並且有超過110家國內外航空公司同意對符合資格的產品提供免費取消。為協助客戶度過這段經濟困難時期，我們也宣布一系列措施以減輕其負擔。措施包括：對參與安心取消保障倡議的飯店提供活動與行銷支援，包括免除與降低行銷成本、提供額外活動資源，以及免除近期取消中套裝供應商所產生的不可退費成本。並為飯店及其他旅遊供應商提供資金支援。包括與銀行合作夥伴推出人民幣10億元基金與貸款協助方案，以及為商業合作夥伴提供超過2,000門免費線上課程。此外，兩週前我們推出了「旅遊復甦V計畫」。V代表勝利，攜程投入超過人民幣10億元資源，與超過100個地方目的地旅遊局、產業夥伴及其他機構合作，為中國的復甦做準備，我們也將在復甦工作中扮演領頭角色。

Internally, we have taken this opportunity to exam ourselves and improve our core competencies in order to prepare for the business recovery when the virus is contained. First, we are combining through products and services in more detail to improve our experience. Our customer satisfaction rate, has kept a record high in past months. We are confident that the improved customer satisfaction rate will translate into long-term customer retention and engagement. Second, we are working on streamlining and optimizing our operating processes and invest in technology and data platform to improve our infrastructure. Third, we will speed up our globalization of the product and backend technology infrastructure in order to bring focus on products and services to our global users. As we have started to see the early signs of recovery in China, the virus continues to spread with subsequent decline in travel activities in the overseas market.

在內部方面，我們也把握這次機會檢視自身並提升核心能力，以便在疫情受控後為業務復甦做好準備。首先，我們更細緻地整合產品與服務，以改善使用體驗。過去幾個月，我們的客戶滿意度維持在歷史高位。我們有信心，提升的客戶滿意度將轉化為長期的客戶留存與互動。第二，我們正著手精簡並優化營運流程，並投資技術與數據平台以強化基礎設施。第三，我們將加速產品與後端技術基礎設施的全球化，以便更聚焦於為全球用戶提供產品與服務。隨著我們開始看到中國出現初步復甦跡象，病毒仍在海外市場持續擴散，導致旅遊活動進一步下滑。

Therefore, we are preparing for a domestic industry rebound, while also getting ready for a prolonged battle against the potential weak international demand. As a result, we are executing on the ways to conserving resources and adopting to the challenges around the world.

因此，我們一方面正為國內產業反彈做準備，同時也為可能疲弱的國際需求所帶來的持久戰做好準備。因此，我們正推動各項節約資源並因應全球挑戰的方法。

Last week, we announced that senior management team will take a voluntary pay cut up to 50%, with James and I taking 0 salary until the situation improves. We believe every challenge brings risk and opportunity. While the virus represents a challenge for the entire world, we also give ourselves the opportunity to show our strength and extend our leadership. With strong financial reserves to weather the storm, we will continue to elevate our services, products, technology and brand.

上週，我們宣布高階管理團隊將自願減薪，幅度最高達50%，而 James 和我將在情況改善之前領取0薪資。我們相信每一次挑戰都伴隨風險與機會。雖然病毒對全世界都是一項挑戰，但我們也藉此給自己一個展現實力並擴大領導地位的機會。憑藉充足的財務儲備以度過風暴，我們將持續提升我們的服務、產品、技術與品牌。

Together with our employees and valued partners, we will not only overcome the challenge but also lead the recovery of the travel industry, starting in China. With that, I now will turn the call to our CFO, Cindy.

我們將與員工及珍貴的合作夥伴攜手，不僅克服挑戰，也將從中國開始，引領旅遊業的復甦。接下來，我把電話會議交給我們的財務長 Cindy。

Thank you, Jie. For the fourth quarter of 2019, Trip.com Group reported net revenue of RMB 8.3 billion representing a 10% increase from the same period in 2018. Despite a full quarter impact by certain destinations, such as Hong Kong and Taiwan, we delivered solid performance in other destinations and lifted the multiple of our core business growth rate against the industry.

謝謝你，Jie。2019年第四季，Trip.com 集團淨營收為人民幣83億元，較2018年同期成長10%。儘管香港與台灣等部分目的地在整個季度受到影響，我們在其他目的地仍交出穩健表現，並使核心業務的成長率相較於產業呈現更高倍數的提升。

For the full year ended December 31, 2019, net revenue was RMB 35.7 billion, representing a 15% increase from 2018. Accommodation reservation revenue for the fourth quarter of 2019 was RMB 3 billion or USD 426 million representing a 12% increase from the same period in 2018. During the fourth quarter, low end hotels sustained strong room night growth for the Ctrip brand, reaching around 50% year-on-year. It has become one of the most important getaway products for us to acquire new users, which reflects the effectiveness of our dynamic pricing strategy. In the domestic mid- to high-end hotel segment, we also saw accelerated growth momentum.

截至2019年12月31日止全年，淨營收為人民幣357億元，較2018年成長15%。2019年第四季住宿預訂營收為人民幣30億元（約4.26億美元），較2018年同期成長12%。第四季期間，低端酒店在攜程品牌下的間夜量維持強勁成長，年增約50%。其已成為我們獲取新用戶最重要的度假產品之一，反映出我們動態定價策略的有效性。在國內中高端酒店市場，我們也看到成長動能加速。

We have raised our competitive moat as an increasing portion of mid- to high-end hotels joined our Trip Plus program. And accommodation plus transportation dynamic package program, providing extra discount to end users while gaining incremental volume. The recent macro and industry headwinds in destinations, such as Hong Kong have put pressure on related travel demand and hotel prices. However, in other overseas non-Greater China destinations, we were glad to see hotel revenue growth over 50% year-on-year in the fourth quarter.

隨著越來越多中高端酒店加入我們的 Trip Plus 計畫，我們的競爭護城河進一步提升。以及「住宿加交通」的動態套裝方案，在為終端用戶提供額外折扣的同時，也帶來增量規模。香港等目的地近期的總體與產業逆風，對相關旅遊需求與酒店價格造成壓力。然而，在其他大中華區以外的海外目的地，我們很高興看到第四季酒店營收年增超過50%。

For the full year ended December 31, 2019, accommodation reservation revenue was RMB 13.5 billion or USD 1.9 billion, representing a 17% increase from 2018. Transportation ticketing revenue for the fourth quarter of 2019 was RMB 3.5 billion or USD 498 million representing a 2% increase from the same period in 2018. Headwinds in certain international destinations continued to put pressure on related travel demand and prices in the fourth quarter. Beside these destinations, growth rates for both domestic and international air ticket business achieved higher multiples against the industry. Trip.com brands recorded another strong quarter of triple-digit year-on-year growth in international air ticketing volume. For the full year ended December 31, 2019, transportation ticketing revenue was RMB 14 billion or USD 2 billion representing an 8% increase from 2018. Packaged total revenue for the fourth quarter of 2019 was RMB 800 million or USD 115 million, representing an 11% increase from the same period in 2018. For the full year ended December 31, 2019, packaged tour revenue was RMB 4.5 billion or USD 651 million representing a 20% increase from 2018.

截至2019年12月31日止全年，住宿預訂營收為人民幣135億元（約19億美元），較2018年成長17%。2019年第四季交通票務營收為人民幣35億元（約4.98億美元），較2018年同期成長2%。部分國際目的地的逆風在第四季持續對相關旅遊需求與價格造成壓力。除上述目的地外，國內與國際機票業務的成長率相較於產業均達到更高倍數。Trip.com 品牌在國際機票出票量方面，再度錄得三位數的年增強勁表現。截至2019年12月31日止全年，交通票務營收為人民幣140億元（約20億美元），較2018年成長8%。2019年第四季打包產品總營收為人民幣8億元（約1.15億美元），較2018年同期成長11%。截至2019年12月31日止全年，跟團遊營收為人民幣45億元（約6.51億美元），較2018年成長20%。

By the end of the year, Trip.com Group has around 8,000 off-line franchise stores in operation and in the pipeline, covering over 290 prefecture level cities and over 500 county level cities. Our online customized tour platform attracted more than 1,800 travel planning agencies and 6,000 planners, servicing millions of customers. Corporate travel revenue for the fourth quarter of 2019 was RMB 373 million or USD 54 million representing a 33% increase from the same period in 2018. Corporate travel saw sequential growth acceleration in the fourth quarter primarily driven by expansion in corporate customer base and optimized the product mix trend.

截至年底，Trip.com 集團約有8,000家線下加盟門店正在營運及籌備中，覆蓋超過290個地級市及超過500個縣級市。我們的線上定制旅遊平台吸引了超過1,800家旅遊策劃機構與6,000名策劃師，服務數以百萬計的客戶。2019年第四季商旅營收為人民幣3.73億元（約5,400萬美元），較2018年同期成長33%。商旅業務在第四季的環比成長加速，主要由企業客戶基礎擴張以及產品組合趨勢優化所帶動。

For the full year ended December 31, 2019, corporate travel revenue was RMB 1.3 billion or USD 180 million, representing a 28% increase from 2018. Revenues for our other business increased by 42% year-on-year in the fourth quarter of 2019 and 35% for the full year 2019.

截至2019年12月31日止全年，商旅營收為人民幣13億元（約1.8億美元），較2018年成長28%。我們其他業務的營收在2019年第四季年增42%，2019年全年年增35%。

This was primarily driven by strong growth in our advertisement and financial service business. Gross margin was 79% for the fourth quarter of 2019, consistent with that for the same period in 2018 and the previous quarter. For the full year ended December 31, 2019, gross margin was 79% compared to 80% in 2018. Product development expenses for the fourth quarter of 2019 increased by 1% year-on-year and by 3% quarter-over-quarter. Cost savings in product development in the fourth quarter (inaudible) effort streamlining operating process and improving efficiency across brand and entities in the past year. For the full year ended December 31, 2019, product development expenses increased by 11% from 2018 excluding share-based compensation charges, non-GAAP product development expenses for the full year 2019 accounted for 27% of the net revenue compared to 28% in 2018. Sales and marketing expenses for the fourth quarter of 2019 decreased by 5% year-on-year and remains consistent with that for the previous quarter. For the full year ended December 31, 2019, sales and marketing expenses decreased by 3% from 2018. Excluding share-based compensation charges, non-GAAP sales and marketing expenses accounted for 26% of the net revenue, which decreased from 30% in 2018. The decrease in sales and marketing expenses was due to the continued ROI driven marketing strategy. Despite it, our main brands maintain stable traffic growth and consistent amount of new customers, reflecting the continual improvement in marketing efficiency. Conversion and cross-sell ratio also increased steadily thanks to the enhanced competitiveness of products and services.

這主要由我們廣告及金融服務業務的強勁成長所帶動。2019年第四季毛利率為79%，與2018年同期及上一季度一致。截至2019年12月31日止全年，毛利率為79%，2018年為80%。2019年第四季產品研發費用年增1%，季增3%。第四季產品研發的成本節省（聽不清）源於過去一年在各品牌與各實體間精簡營運流程並提升效率的努力。截至2019年12月31日止全年，剔除股份基礎報酬費用後，產品研發費用較2018年增加11%；2019年全年非GAAP產品研發費用占淨營收的27%，2018年為28%。2019年第四季銷售與行銷費用年減5%，並與上一季度保持一致。截至2019年12月31日止全年，銷售與行銷費用較2018年下降3%。剔除股份基礎報酬費用後，非GAAP銷售與行銷費用占淨營收的26%，較2018年的30%下降。銷售與行銷費用下降，主要由持續以ROI為導向的行銷策略所致。儘管如此，我們的主要品牌仍維持穩定的流量成長與一致的新客獲取量，反映行銷效率持續提升。由於產品與服務競爭力增強，轉換率與交叉銷售比率也穩步提高。

G&A expenses for the fourth quarter of 2019 increased by 5% year-on-year and by 5% quarter-over-quarter primarily due to an increase in G&A personnel-related expenses. For the full year ended December 31, 2019, G&A expenses increased by 17% from 2018. Excluding share-based compensation charges, non-GAAP G&A expenses accounted for 7% of the net revenue, which remained consistent with 2018. The headcount for GMV staff was largely stable throughout the year. Excluding share-based compensation charges, non-GAAP operating margin was 12% for the fourth quarter of 2019 compared to 3% in the same period in 2018. For the full year ended December 31, 2019, non-GAAP operating margin was 19% compared to 14% in 2018. Diluted earnings per ADS was RMB 3.23 or USD 0.46 for the fourth quarter of 2019. Excluding share-based compensation charges and fair value changes of equity security investments. Non-GAAP diluted earnings per ADS were RMB 1.94 or USD 0.28 for the fourth quarter of 2019.

2019年第四季的G&A費用同比增加5%，環比增加5%，主要由於G&A人員相關費用增加所致。截至2019年12月31日止全年，G&A費用較2018年增加17%。剔除股份支付薪酬費用後，非GAAP口徑的G&A費用佔淨營收的7%，與2018年保持一致。GMV相關員工人數全年整體保持穩定。剔除股份支付薪酬費用後，2019年第四季非GAAP經營利潤率為12%，而2018年同期為3%。截至2019年12月31日止全年，非GAAP經營利潤率為19%，而2018年為14%。2019年第四季攤薄後每股ADS收益為人民幣3.23元或美元0.46元。剔除股份支付薪酬費用及權益證券投資的公允價值變動。2019年第四季非GAAP攤薄後每股ADS收益為人民幣1.94元或美元0.28元。

For the full year ended December 31, 2019, diluted earnings per ADS were RMB 11.5 or USD 1.65. Excluding share-based compensation charges and fair value changes on equity securities non-GAAP diluted earnings per ADS was RMB 10.75 or USD 1.45 (sic) [1.54]. As of December 31, 2019, the balance of cash and cash equivalents, restricted cash, shorter investment, held-to-maturity time deposits and financial products was RMB 59.9 billion or USD 8.6 billion.

截至2019年12月31日止全年，攤薄後每股ADS收益為人民幣11.5元或美元1.65元。剔除股份支付薪酬費用及權益證券公允價值變動後，非GAAP攤薄後每股ADS收益為人民幣10.75元或美元1.45元（原文如此）[1.54]。截至2019年12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餘額為人民幣599億元或美元86億元。

Now turning to the first quarter of 2020. Our original outlook reflected a continuation of the momentum last year, which includes sustained top line growth, penetration into lower-tier cities, oversees expansion and margin improvement. We were delighted to see January bookings up to the 20s, grew at double digits year-on-year. Obviously, the development of the coronavirus has since caused significant disruption in China and the global travel industry. Thus, for the first quarter of 2020, the company currently expect net revenue to decrease by 45% to 50% year-on-year. Excluding share-based compensation, but including onetime expenses related to our customer protection measures, especially during the Chinese New Year holiday, the company expects non-GAAP operating net loss will be in the range of RMB 1.75 billion to RMB 1.85 billion.

現在轉到2020年第一季。我們原先的展望反映了去年動能的延續，包括持續的營收增長、向低線城市滲透、海外擴張以及利潤率改善。我們很高興看到1月的預訂量增長至20%多，同比實現兩位數增長。顯然，此後新冠病毒的發展已對中國及全球旅遊行業造成重大擾動。因此，就2020年第一季而言，公司目前預期淨營收將同比下降45%至50%。剔除股份支付薪酬，但包含與客戶保障措施相關的一次性費用（尤其是在春節假期期間），公司預期非GAAP經營淨虧損將介於人民幣17.5億元至人民幣18.5億元之間。

This forecast reflects Trip.com Group's current and preliminary view, which is subject to change. The increase in 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.

該預測反映Trip.com Group目前及初步的看法，可能會有所變動。由於新冠疫情爆發帶來的不確定性增加，進一步限制了我們的能見度。我們將持續監測市場，並及時向投資者提供更多說明。

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

接下來，我們將開放問答環節。請接線員開始。

(Operator Instructions) Your first question comes from Ronald Keung of Goldman Sachs.

(接線員指示) 第一個問題來自高盛的Ronald Keung。

Thanks for the very useful sharing. My question would be more on the demand side, on the macro side. So the assumption that you talked about domestic travel may recover faster than international, just could you share strategies and priorities during these times? And is there any forward booking trend that you could also share if you help us gauge how things are going at this point?

感謝非常有用的分享。我的問題更多是關於需求端、宏觀層面。你們提到國內旅遊可能比國際旅遊恢復更快，能否分享在這段期間的策略與優先事項？另外，是否有任何前瞻性的預訂趨勢可以分享，以幫助我們評估目前進展如何？

Yes, we are reasonably optimistic about the recovery of the domestic travel. The -- big cities like Shanghai, government has removed some of the restrictions of restaurants and other businesses, for example, requiring (inaudible) that probably will be just limited to certain types of businesses. And we received many requests from different governments tourist definitions to help them to promote their travel products. And I'm going to trip to a few destinations or destinations to this coming week, and it looks like the interest is very strong, and the government is really -- the next phase of the task will be to accelerate the recovery of the overall economy. So unless there's another outbreak or something I expected of the containment effort. But I think given the general trends, given the trends we're seeing today that we expect a very quick and strong recovery of the domestic travel. And we're certainly in a very good position to capture that demand. So overall, we are quite optimistic about the net travel.

是的，我們對國內旅遊的復甦保持相當樂觀。像上海這樣的大城市，政府已取消了餐廳及其他商家的部分限制，例如要求（聽不清），這可能只會限於某些類型的業務。我們也收到許多不同地方政府旅遊部門的請求，希望我們協助推廣其旅遊產品。我下週也會去幾個目的地，看起來市場興趣非常強，政府也確實——下一階段的工作將是加速整體經濟復甦。因此，除非再次爆發或出現我預期之外的防控情況。但我認為，基於整體趨勢，以及我們今天看到的趨勢，我們預期國內旅遊將非常快速且強勁地復甦。而我們當然處於非常有利的位置來承接這些需求。總體而言，我們對旅遊淨需求相當樂觀。

Your next question comes from Thomas Chong of Jefferies.

下一個問題來自Jefferies的Thomas Chong。

Can you comment about the volume, pricing and the tick rate in accommodation and air ticketing in domestic and international travel and in Q1 as well as the trend that we should expect going into Q2 and the following quarters? And my second question, is also about the trend in operating expenses. Given the fact that we are facing the coronavirus headwinds, and we are seeing the recovery in domestic business, while outbound probably, there are still some headwinds going on. How should we think about our spending and the margin outlook in Q2 and beyond? Any qualitative color would be great.

能否評論一下國內與國際旅遊中，住宿與機票業務的量、價格以及出票率（tick rate）在第一季的情況，以及我們進入第二季及後續季度應該預期的趨勢？我的第二個問題也關於營運費用的趨勢。考慮到我們正面臨新冠帶來的逆風，同時看到國內業務復甦，而出境可能仍有一些逆風。我們應如何看待第二季及之後的支出與利潤率展望？任何定性的補充說明都會很有幫助。

Sure. The trend we have seen is a V shaped. So the first month of January, the volume growth for us is very strong. As Cindy said, it's more than 10% higher year-over-year growth both domestic and outbound and in international places. But when the virus hit, all the sudden travel is not allowed in many places. So we saw a decline during -- starting from the Chinese New Year, and it lasted for the past 2 months. So the trend is the left side of the V shape however, as of now, we already seeing positively probably in the China domestic travel business. We saw airlines, hotels and also the travel destination have put great efforts to resume the business. So at the beginning, there were only very few airlines taking specific routes within China. Now we have seen more than 50% of the airlines routes are within it. And then we saw, at the beginning, the price was very cheap because I think all the business partners wanted to make sure consumers have confidence for the recovery. Now the price is climbing up, not to the full price yet, but it's on a good trend, climbing up. So we -- as James said, I think we have got a lot of requests from all over the country for the (inaudible) try to participate in our Tourism Revival V Plan, V stands for victory. So everyone wants to put their efforts, attract the customers. So our expectation is for the people maybe in big cities, they probably thought with travel in the nearby city by taking one-day tour, weekend tour. And gradually, it can be expensed into a trip to Suanya or some popular travel destinations. So what we have done, first of all, is to initiate the leadership in the revival plan. More than 100 destinations have participated in this plan by giving more than 50% or 80% discount, so the customers can prepurchase lots of products. The reaction from the market is very strong, and the reaction from our partners is very strong. So we are hopeful that with the conserted efforts by the government to continuously contain the virus with the continuous efforts by Trip.com and our business partner, we will be able to bring the demand to our business partners in different travel destinations within China.

好的。我們看到的趨勢呈V形。因此在1月的第一個月，我們的量增長非常強勁。正如Cindy所說，無論是國內、出境還是國際目的地，同比增長都高於10%。但當病毒來襲時，許多地方突然不允許出行。因此我們從春節開始看到下滑，並持續了過去兩個月。所以趨勢是V形的左側；不過截至目前，我們已經在中國國內旅遊業務上看到正向跡象。我們看到航空公司、酒店以及旅遊目的地都在大力努力恢復業務。一開始，中國境內只有很少的航班在特定航線上運行。現在我們看到超過50%的航線已恢復。同時我們也看到，一開始價格非常便宜，因為我認為所有合作夥伴都希望讓消費者對復甦有信心。現在價格正在回升，雖然還沒回到全價，但趨勢良好，正在上升。因此——正如James所說，我們收到來自全國各地的許多（聽不清）請求，希望參與我們的「旅遊復甦V計畫」，V代表勝利（victory）。大家都希望投入努力，吸引客戶。因此我們的預期是，大城市的人們可能會先選擇到附近城市旅遊，例如一日遊、週末遊。並逐步擴展到去三亞或其他熱門旅遊目的地。因此我們首先做的是在復甦計畫中發起並扮演領導角色。已有超過100個目的地參與該計畫，提供超過50%或80%的折扣，讓客戶可以預先購買大量產品。市場反應非常強烈，我們合作夥伴的反應也非常強烈。因此我們有信心，在政府持續防控疫情的共同努力下，以及Trip.com與我們業務夥伴的持續努力下，我們將能把需求帶回給中國境內不同旅遊目的地的業務夥伴。

And regarding the cost side, excluding onetime expenses related to our customer protection margins, especially during the Chinese New Year, our regular non-GAAP operating expenses in the first quarter are expect to decrease 15% to 20% year-over-year. Actually, a large portion in our, for example, the cost of service as well as marketing expenses, either variable cost or purely discretional costs such as performance-based and marketing expenses. So these 2 items account for more than half of our total cost and non-GAAP operating expenses.

至於成本端，剔除與我們客戶保障金相關的一次性費用（尤其是在農曆新年期間）後，我們第一季的常態化非 GAAP 營運費用預計將較去年同期下降 15% 至 20%。事實上，我們成本中很大一部分，例如服務成本以及行銷費用，屬於變動成本或完全可自行裁量的成本，例如以績效為基礎的費用與行銷費用。因此，這兩項合計占我們總成本與非 GAAP 營運費用的一半以上。

Your next question comes from Binnie Wong of HSBC.

下一個問題來自匯豐的 Binnie Wong。

Good morning, management. And first of all, I wish everyone safe and healthy in this time. So a quick question here is that given the slower top line you're seeing, where are the areas that you think your investment or your spending can be optimized to protect your margins in this quarter or maybe in first half of the year? And then second, a follow-up on your recovery, the areas that you see recovery signs. Can you just comment on in terms of whether like hotel or air? Maybe which segment you think the recovery signs are more visible? And do you think like [SAS] is because when you look at the travel trends, say, the air passengers, the training passengers, is a sharp rebound, right? Do you think it's realistic for seeing so?

管理層早安。首先，我祝大家在這段期間都平安健康。我這裡有個簡單問題：鑑於你們看到營收端放緩，你們認為在哪些領域可以優化投資或支出，以在本季或可能在上半年保護你們的利潤率？第二個問題是關於復甦：你們看到哪些領域出現復甦跡象？能否就例如飯店或航空方面評論一下？你們認為哪個分部的復甦跡象更明顯？另外你們是否認為像 [SAS] 是因為當你看旅遊趨勢，例如航空旅客、鐵路旅客，都出現明顯反彈，對吧？你們覺得看到這樣的情況是否現實？

Thank you, Binnie. Maybe I'll provide a breakdown of each business law items -- the growth rates of each business line item to give you a sense. In the first quarter of 2020, we expect accommodation reservation revenue to decrease about 50% to 65% year-on-year. Our transportation regulation to decrease about 35% to 40% year-on-year. Packaged tour business will decrease about 50% to 60% year-on-year with corporate travel business to decrease about 50% to 60% year-on-year. As Jie mentioned earlier, we delivered solid double-digit growth in January up to the 20s. Booking volume quickly -- booking volume quickly dropped to about 10% to 20% of previous year's level during the holiday and the following weeks across product segments. But in recent weeks, we have observed the volume rebound to over 30% of previous year's level in the domestic transportation sector, but with certain [netting] for the accommodation activities. The restriction for packaged tour business is still not yet listed, and corporate travel activities remain quite weak. [Alba] and overseas business continue -- will continue to be covered by the outbreak rate situation abroad. Therefore, actually, it's very difficult for us to provide a reliable prediction for, for example, the second quarter or the full year due to the fast involvement of the pandemic situation and related travel restrictions. But in general, as Jie said, we expect that domestic accommodation and transportation will continue on track towards recovery from current level while the outbound and international remains weak until maybe global situation improves. We think it, for example, if the outbreak, is vastly contained by the summer for most regions in the world, we can be cautiously optimistic about the recovery in the second half of -- across all our business lines, but if the outbreak expands into (inaudible) later, we may be looking at a full year impact given the seasonality. We will monitor the situation and update our investors from a timely basis. Despite this near-term challenges, as James explained, we believe the impact will be one-off, and we remain very confident for the long-term prospects of both the travel industry and our business fundamentals. On the cost side, as I explained, a large portion in our cost and service and marketing expenses either variable cost or truly discretionary costs. So if you look at the Q1 costs -- if we look at the Q1 non-GAAP operating expenses, excluding one-time expenses related to customer care measurement, actually, our costs were down about 15% to 20% year-on-year.

謝謝你，Binnie。也許我先把各項業務線的項目拆開說明——各業務線項目的成長率，讓你有個概念。在 2020 年第一季，我們預計住宿預訂收入將較去年同期下降約 50% 至 65%。我們的交通業務預計較去年同期下降約 35% 至 40%。套裝旅遊業務預計較去年同期下降約 50% 至 60%，企業差旅業務也預計較去年同期下降約 50% 至 60%。如同 Jie 先前提到的，我們在 1 月仍實現了穩健的兩位數成長，增幅達到 20% 多。但在假期期間及其後幾週，各產品分部的預訂量迅速——預訂量迅速下滑至去年同期水準的約 10% 至 20%。不過在最近幾週，我們觀察到國內交通領域的量已反彈至去年同期水準的 30% 以上，但住宿活動方面仍有一定的 [netting] 影響。套裝旅遊業務的限制仍尚未解除，而企業差旅活動依然相當疲弱。[Alba] 與海外業務仍將——仍將受到海外疫情發展情況的影響。因此，鑑於疫情形勢快速演變以及相關旅行限制，我們其實很難就例如第二季或全年提供可靠的預測。但整體而言，如 Jie 所說，我們預期國內住宿與交通將會在目前水準上持續朝復甦軌道前進，而出境與國際業務仍將疲弱，直到全球情勢可能改善為止。我們認為，例如若疫情在夏季前於全球多數地區得到大幅控制，我們可以對下半年——涵蓋我們所有業務線——的復甦保持審慎樂觀；但若疫情延伸擴大到（聽不清）更晚，我們可能會因季節性因素而面臨全年影響。我們將持續監測情況，並及時向投資人更新。儘管短期面臨挑戰，如 James 所解釋，我們相信影響將是一次性的，且我們對旅遊產業以及我們業務基本面的長期前景仍非常有信心。在成本端，如我所說，我們成本中的很大一部分——服務成本與行銷費用——屬於變動成本或真正可自行裁量的成本。因此，如果你看第一季成本——如果我們看第一季的非 GAAP 營運費用，剔除與客戶關懷措施相關的一次性費用後，實際上我們的成本較去年同期下降約 15% 至 20%。

The next question comes from Alex Poon from Morgan Stanley.

下一個問題來自摩根士丹利的 Alex Poon。

Management. First of all, wish everyone good health and stay safe. My question is about the opportunities in future. So the virus has a severe damage to the travel industry. So can you give us an assessment of the whole tourism value chain, upstream, downstream with your better infrastructure resources, market leadership, your Recovery V Plan, et cetera, where are the opportunities, you think, you can strengthen your most in future and gain market share, for example, you mentioned about mid- to high-end hotel segments. And how about the low to mid-star hotels? After this, when are we getting back to normal, is it possible to grow -- even grow faster than before with your market share gain over this period.

管理層好。首先祝大家身體健康、注意安全。我的問題是關於未來的機會。這次病毒對旅遊產業造成了嚴重衝擊。能否請你們評估整個旅遊價值鏈（上游、下游），在你們更好的基礎設施資源、市場領導地位、你們的 Recovery V 計畫等背景下，你們認為未來最能強化、並取得市占的機會在哪裡？例如你們提到的中高端飯店分部。那低到中星級飯店呢？在這之後，我們何時能回到正常？在你們於這段期間提升市占的情況下，是否有可能恢復後——甚至比以前成長更快？

Thank you, Alex. We are very positive about the growth in the long-term for travel industry. During this time, we have seen a couple of things mainly from three fronts. First of all, to gain the heart from our customers during the most challenging time. When the virus hit and the travel ban was involved, they come to us asking for help. And that was the moment we really put customers' interest in the center of our business. Our tech team worked overnight to launch products that allows our customers to auto-cancel their orders. Our customer service team was day and night, 24 hours nonstop, although the volume increased to 10x. So as I said in the opening comments, the customer satisfaction rate during this challenging time reached all-time high. So we believe the investment we put in the customer service and technology and infrastructure will benefit us in the long run. And it helps us to accelerate a lot of technology products as well as the infrastructure and put it in the front line. So our development actually was accelerated during this challenging time. The second thing is also listen to our partners. Right now, the occupant rate for hotels and the loading rate for airlines is all-time low so we listen to our partners and really worked with them to come up with the revival plan. The Tourism Revival V Plan was a joint effort by industry players and Ctrip team. So we asked them to come together with the innovative products by giving very good deals to the customers. And our customers are able to prepay for these -- for these products. So it's a winning situation. Where our partners will be able to get some cash flow during this challenging time, but our customers will also get very good deals if they have indicated their orders. And thirdly, is our team, even during this very challenging time, our team is highly motivated. So we want to make sure, going forward, we will work very hard with our global team to make sure we stand together with our customers and partners together to lead the efforts for recovery starting from China. So China market and the markets overseas are in the different stage of the ship. For China, we already see the bottom-up with effective measures by the government. We expect we can lead the recovery of the domestic travel market within the next few months. For the market outside of China, I think they are starting the process of taking care of the cancellation putting care of the customers' need. We already see the similar trends in Korea and Japan, but now Korea and Japan are stabilizing. So we are confident that with the experience we accumulated in the China market, we will be able to help our global customers as well. And also, during this time, I think it's good for us to take the responsibility to help our global customers. So we, as James said, we are donating 1 million masks to the countries that are badly impacted by this virus. I think not only we will take care of Trip.com's customers, partners and employees, we also want to make sure we take the responsibility, help global communities. During this challenging time.

謝謝你，Alex。我們對旅遊產業長期的成長非常樂觀。在這段期間，我們主要從三個面向看到幾件事。首先，是在最具挑戰的時刻贏得客戶的心。當病毒來襲、並且實施旅行禁令時，客戶來找我們尋求協助。那一刻，我們真正把客戶利益放在業務的核心。我們的技術團隊連夜工作，上線了讓客戶可自動取消訂單的產品。我們的客服團隊日以繼夜、24小時不間斷運作，儘管服務量增加到10倍。因此，如同我在開場致詞所說，在這段艱難時期，客戶滿意度達到歷史新高。所以我們相信，在客服、技術與基礎設施上的投入，長期將使我們受益。同時也幫助我們加速多項技術產品以及基礎設施的建置，並把它們推到第一線。因此，我們的發展其實在這段艱難時期反而加速了。第二件事，是傾聽我們的合作夥伴。目前飯店入住率與航空載客率都處於歷史低點，因此我們傾聽夥伴需求，並與他們共同制定復甦計畫。「旅遊復甦V計畫」是產業參與者與攜程團隊的共同努力。我們邀請大家一起推出創新產品，並以非常優惠的價格提供給客戶。而我們的客戶也可以預付購買這些——這些產品。因此這是一個雙贏的局面。合作夥伴能在這段艱難時期獲得部分現金流，而客戶若已表達下單意願，也能享有非常好的優惠。第三，是我們的團隊，即使在如此艱難的時期，仍然高度有動力。因此我們希望確保，未來我們將與全球團隊一起努力，確保我們與客戶及合作夥伴站在一起，從中國開始帶領復甦工作。中國市場與海外市場正處於不同階段。就中國而言，在政府有效措施下，我們已看到觸底回升的跡象。我們預期在未來幾個月內，可以帶動國內旅遊市場的復甦。至於中國以外的市場，我認為他們正開始處理取消事宜並照顧客戶需求的流程。我們已在韓國與日本看到類似趨勢，而目前韓國與日本正在趨於穩定。因此我們有信心，憑藉在中國市場累積的經驗，我們也能協助全球客戶。同時在這段期間，我認為我們也應承擔起協助全球客戶的責任。因此，正如James所說，我們正向受病毒嚴重影響的國家捐贈100萬個口罩。我認為我們不僅會照顧Trip.com的客戶、合作夥伴與員工，也希望確保我們承擔責任、協助全球社群。在這段艱難時期。

Your next question comes from Natalie Wu from CICC.

下一個問題來自中金公司的Natalie Wu。

Wish everyone is safe and healthy. I just wanted to start with (inaudible) actually announced a (inaudible) date that it was deboning its share purchase program so that it can retain maximum flexibility (inaudible) during the epidemic. Given that we announced the free cancelation guarantee in end of January enabling ticket cancellation, which is quite nice for your (inaudible) products. But just curious, what's the financial implication of the (inaudible) guarantee policy? And how do you ensure your liquidity for healthy cash itself in such difficult times?

祝大家平安健康。我想先從（聽不清）開始，實際上公司宣布了（聽不清）日期，表示將暫停其股份回購計畫，以便在疫情期間保留最大的彈性（聽不清）。鑑於我們在一月底宣布了免費取消保障、可進行機票取消，這對你們的（聽不清）產品而言相當不錯。但我想了解的是，（聽不清）保障政策的財務影響是什麼？以及在如此艱難的時期，你們如何確保流動性與健康的現金水位？

I think you see that the cumulative GMV for the canceled orders reached more than RMB 40 billion. Our product team work very closely with our supplier partners to reduce the potential loss caused by free cancellation policy. A large majority of our suppliers that were willing to raise relevant charges. We expect the onetime costs related to customer cancellation is manageable, and it's already being reflected in our Q1 guidance. The customer refund policy mostly temporary treat our cash flow. A large majority of the refund request can be paid by the company in advance, but I collect the refund. So we have collected the funds from our suppliers in weeks following the holiday. On the cash side, we actually have a very strong capital reserves to get us through this tough situation. By the end of 2019, we have about RMB 20 billion in cash and cash equivalents or about RMB 60 billion, if we include short-term investments and healthy maturity deposits. In addition, we have a large low-cost credit facilities from multiple commercial banks. And therefore, we have a very strong cash reserve to improve our business positions. For maybe an even prolonged recovery time line as well as paying back all that.

我想你們看到，累計被取消訂單的GMV已超過人民幣400億元。我們的產品團隊與供應商夥伴非常緊密合作，以降低免費取消政策可能造成的潛在損失。我們的大多數供應商都願意承擔相關費用。我們預期與客戶取消相關的一次性成本是可控的，且已反映在我們第一季的指引中。客戶退款政策主要是暫時性地影響我們的現金流。大多數退款申請可由公司先行墊付，但我收回退款。因此，我們在假期後的數週內已向供應商收回資金。在現金方面，我們其實有非常強的資本儲備，足以讓我們度過這段艱難時期。截至2019年底，我們約有人民幣200億元的現金及現金等價物；若包含短期投資與健康到期存款，約為人民幣600億元。此外，我們還從多家商業銀行取得大額、低成本的授信額度。因此，我們擁有非常強的現金儲備，以改善我們的業務態勢。也能應對可能更長的復甦時間線，以及償還所有那些。

Your final question comes from Gregory Zhao of Barclays.

最後一個問題來自巴克萊的Gregory Zhao。

Best wishes to your health. So I have 2 quick questions. The first one to equally record the fast without break back to 2003, so I think it only took me about one quarter to fully recover to the level of pre the outbreak. So do please remind us what the kind of incentive policies you used at that moment to stimulate online booking demand? And what kind of policy you think you can use again at the current situation to recover the growth. So the second one I wanted to understand was the market competitive dynamics during the epidemic period. I think James mentioned, are almost a RMB 60 billion cash position. Can we assume a strong balance sheet is more defensive and taking more market share from other smaller players so during the market -- the travel market recovery?

祝你們身體健康。我有兩個簡短問題。第一個是回顧2003年非典後的快速復甦，我記得大概只花了一個季度就完全恢復到疫情爆發前的水準。能否請你們提醒一下，當時你們採用了哪些激勵政策來刺激線上預訂需求？以及在目前情況下，你們認為可以再次採用哪些政策來恢復成長？第二個我想了解的是疫情期間的市場競爭動態。我想James提到，你們有接近人民幣600億元的現金部位。我們是否可以假設，強勁的資產負債表更具防禦性，並在旅遊市場復甦期間，從其他較小的業者手中取得更多市占？

Yes. Thank you for your question. The travel ban started with the Chinese New Year. And now we already saw the market shows early signs of recovery. And Ctrip will lead the efforts to encourage the consumers to protect themselves, meanwhile, also travel within the safe areas within China. And as James said, right after this phone call, he personally will lead the efforts to go to different travel destinations and encourage consumers to travel within China. We believe that principal demand is there because lots of customers before Chinese New Year already booked their trips within China and overseas. And because of the virus outbreak, the whole market took a very prudent view by isolating each family and individual to prevent the faster spread of the virus, which is the right thing to do. And I think Chinese government was very effective taking the right approach, getting the virus under control with a very rapid speed. So with that under control, we believe the market has already show the signs of recovery, and the consumers have the buying power to resume the travel. We just need to make sure the confidence is there, the infrastructure is there. And Ctrip is very well positioned to bring the demand to our business partners around the country. So we hope the recovery will be very well under the way. The second thing is the leadership. Yes, I think normally, during the difficult time is the best time for us to reach out to both our consumer side as well as our partner side. With the strong reserve on our balance sheet, we will be able to extend our leadership as we always do during the difficult times, and our team is very well positioned for that.

是的。感謝您的提問。旅行禁令是從農曆新年開始的。而現在我們已經看到市場出現初步復甦跡象。攜程將帶頭推動相關工作，鼓勵消費者做好自我防護，同時也在中國境內的安全區域內出行。正如 James 所說，就在這通電話結束後，他本人將親自帶隊前往不同的旅遊目的地，鼓勵消費者在中國境內旅遊。我們相信根本需求仍然存在，因為許多客戶在農曆新年前就已預訂了國內及海外行程。由於病毒爆發，整個市場採取了非常審慎的態度，透過隔離每個家庭與個人來防止病毒更快速擴散，這是正確的做法。我認為中國政府採取了正確的方法且非常有效，以非常快的速度將病毒控制住。因此在疫情受控後，我們相信市場已經出現復甦跡象，消費者也具備購買力以恢復出行。我們只需要確保信心到位、基礎設施到位。攜程也具備非常有利的定位，能把需求帶給全國各地的業務合作夥伴。因此我們希望復甦能夠順利推進。第二點是領導力。是的，我認為通常在困難時期，正是我們與消費者端以及合作夥伴端加強聯繫的最佳時機。憑藉資產負債表上的充足儲備，我們將能夠像以往在艱難時期一樣延伸並強化我們的領導地位，而我們的團隊也已為此做好充分準備。

And that does conclude our Q&A session for today. I will now hand back to Michelle for closing remarks.

以上即為我們今天的問答環節。我現在把時間交回給 Michelle 作結語。

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

感謝各位今天參與。您可以在 investor.trip.com 上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 年第一季財報電話會議上與各位交流。謝謝，祝您有美好的一天。

Thank you very much.

非常感謝。

Thank you.

謝謝。