Trip.com Group Limited (TCOM) 2023 Q2 法說會逐字稿

Hello, everyone. Thank you for standing by. Welcome to Trip.com Group 2023 Q2 Earnings Conference Call. (Operator Instructions) I must advise you that today's conference is being recorded.

各位好。感謝各位耐心等候。歡迎參加 Trip.com Group 2023 年第二季財報電話會議。（接線員指示）我必須提醒各位，今天的會議將被錄音。

With that, I would like to now hand the call over to your host today, Ms. Michelle Qi, Investor Relations Director. Thank you. Please go ahead.

接下來，我想把電話交給今天的主持人——投資人關係總監 Michelle Qi 女士。謝謝。請開始。

Thank you. Thank you all. Good morning, and welcome to Trip.com Group's Second Quarter of 2023 Earnings Conference Call. Joining me today on the call are Mr. James Liang, Executive Chairman of the Board; Ms. Jane Sun, Chief Executive Officer; and Ms. Cindy Wang, Chief Financial Officer.

謝謝。謝謝各位。各位早安，歡迎參加 Trip.com Group 2023 年第二季財報電話會議。今天與我一同出席的有：董事會執行主席 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.

在本次電話會議中，我們將討論未來展望與經營表現，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。

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.

Trip.com Group 向美國證券交易委員會提交的公開文件中，已列示多項潛在風險與不確定性。除適用法律另有要求外，Trip.com Group 不承擔更新任何前瞻性陳述之義務。

James, Jane and Cindy will share our strategy and business updates, operating highlights and financial performance for the second quarter of 2023 as well as the outlook for the third quarter of 2023. After the prepared remarks, we will have a Q&A session.

James、Jane 與 Cindy 將分享我們的策略與業務最新進展、營運亮點與 2023 年第二季財務表現，以及 2023 年第三季展望。在管理層致詞結束後，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. Throughout the second quarter, China's travel industry has experienced a notable resurgence supported by (inaudible) travel demand. Our business continues to set new record highs in the overall hotel and air booking, spearheading the market recovery.

謝謝你，Michelle。也謝謝各位今天參加電話會議。整個第二季，中國旅遊業在（聽不清）旅遊需求的支撐下出現顯著復甦。我們的整體飯店與機票預訂量持續創下新高，引領市場復甦。

In China, travel demand has remained resilient as a result of a shift in consumer spending away from goods and into services. There is a strong rebound in both our domestic and international business. While air capacity is still limited, travelers' desire to gear up and venture worldwide remain intense.

在中國，隨著消費支出從商品轉向服務，旅遊需求仍具韌性。我們的國內與國際業務皆強勁反彈。儘管航空運能仍然受限，旅客整裝出發、走向全球的意願依然強烈。

The recently expanded list of outbound group tour destinations and additional international flights are potential booms for international travel. We are confident that the encouraging trend of outbound travel recovery will persist into the future.

近期擴大的出境跟團遊目的地清單，以及新增的國際航班，將可能為國際旅遊帶來新一波成長。我們有信心，出境旅遊復甦的正向趨勢將在未來持續。

To fuel the travelers' passion and fulfill their evolved needs for unique and personalized experiences, we have launched an array of AI-powered tools as we embrace innovative ways to provide enhanced user experience. Users can chat with our upgraded AI assistant TripGenie, for bespoke itinerary crafting and can now go directly to the product booking pages. They can also get inspirations and select the best experiences from our AI-powered curated lists, which cater to users' diverse needs and preferences by capturing real-time information and our big data.

為了點燃旅客熱情並滿足其對獨特且個人化體驗的進階需求，我們推出一系列 AI 驅動工具，以創新方式提升使用者體驗。使用者可與升級後的 AI 助理 TripGenie 對話，量身打造行程，並可直接前往產品預訂頁面；也能從 AI 驅動的精選清單中獲取靈感並挑選最佳體驗。這些清單透過即時資訊與我們的大數據，捕捉使用者多元需求與偏好。

These AI-powered accountant marketing tools also opened up new ways for our partners to highlight their offerings to captivated holidays. We will continue to explore and unlock the potential of leveraging AI to sales travelers enjoy the best booking experience and pursue their perfect trip.

這些 AI 驅動的精準行銷工具也為合作夥伴開啟新方式，讓其在吸引人的假期情境中凸顯自身產品與服務。我們將持續探索並釋放運用 AI 的潛力，協助旅客享有最佳預訂體驗，並實現理想旅程。

To conclude, we are encouraged by the strong demand so far and we'll continue to enhance our offerings, and we're prepared to capture the opportunities ahead.

總結而言，我們對目前強勁的需求感到振奮，並將持續強化產品與服務，同時也已準備好把握未來機會。

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

接下來，我把電話交給 Jane，請她分享營運亮點。

Thank you, James. Good morning, everyone. As a quick overview, our net revenue in Q2 grew by 180% year-over-year and has exceeded the 2019 level by 29%. We continue to see strong demand and a robust momentum in travel bookings in the second quarter.

謝謝你，James。各位早安。先快速概述：我們第二季淨營收年增 180%，並較 2019 年水準高出 29%。第二季旅遊預訂需求依然強勁，動能穩健。

For domestic, our hotel bookings have exceeded 2019 by 60%. For outbound, in spite of the fact that the industry level, international air passenger volume only recovered to about 37% in Q2 compared to 2019, we have recovered to over 60% of the pre-pandemic level. Moreover, our global business remains robust and continue to advance at a triple-digit rate above the 2019 level.

在國內方面，我們的飯店預訂量較 2019 年高出 60%。在出境方面，儘管行業層面第二季國際航空旅客量相較 2019 年僅恢復至約 37%，我們已恢復至疫情前水準的 60% 以上。此外，我們的全球業務仍然強勁，並以三位數增速持續高於 2019 年水準。

Our overall hotel bookings has set a new record high by growing over 160% versus last year. Overall, our air bookings also reached new all-time high and nearly doubled year-over-year.

我們整體飯店預訂量年增超過 160%，創下新高。整體機票預訂量亦達到歷史新高，年增近一倍。

Let's talk about the different markets. First, China market. The China domestic travel market has demonstrated a strong rebound since its opening in Q1 and such constructive momentum has persisted into the second quarter. Our domestic hotel reservation grew by around 170% year-over-year and more than 60% versus 2019 levels, among which long-haul hotel bookings have seen the fastest year-over-year growth rate of 277%. Our short-haul hotel bookings also more than doubled last year's level.

接下來談不同市場。第一，中國市場。中國國內旅遊市場自第一季開放以來強勁反彈，且此一正向動能延續至第二季。我們國內飯店預訂年增約 170%，較 2019 年水準亦高出逾 60%；其中長途飯店預訂年增最快，達 277%。短途飯店預訂也較去年水準翻倍以上。

Second, for outbound business. China outbound market continues to witness a firm trajectory of the robust recovery. International airlift has been increasing steadily as airlines continue to ramp up their services, and authorities continue to roll out favorable cross-border and visa policies.

第二，出境業務。中國出境市場持續呈現穩健的強勁復甦軌跡。隨著航空公司持續加密航班服務，國際運能穩步提升；同時，主管機關亦持續推出有利的跨境與簽證政策。

In Q2, the average international flight capacity has recovered to around 38%. However, the outbound hotel and air reservation on Trip.com Group recovered to over 60% of the pre-pandemic level and remained a leading industry by roughly more than 20%.

第二季，平均國際航班運能已恢復至約 38%。然而，Trip.com Group 的出境飯店與機票預訂已恢復至疫情前水準的 60% 以上，且領先行業約 20 個百分點以上。

While there has been a notable growth in the aviation capacity connecting China and the whole areas such as Europe, APAC remains the powerhouse of outbound travel. Top destinations include Hong Kong, Macau, Southeast Asia, Korea, and etc.

儘管連接中國與歐洲等地區的航空運能明顯成長，亞太地區仍是出境旅遊的主力引擎。熱門目的地包括香港、澳門、東南亞、韓國等。

Third, for global markets. Turning to our global business. The returning of Chinese tourists in greater numbers has seen a major rising catalyst for the recovery and development of global travel market. In Q2, we continue to see strong momentum in our global businesses, in which the APAC region remains the powerhouse of growth.

第三，全球市場。接著看我們的全球業務。中國旅客以更大規模回流，已成為全球旅遊市場復甦與發展的重要催化因素。第二季，我們的全球業務持續保持強勁動能，其中亞太地區仍是成長主引擎。

Air ticket bookings on our global OTA platform have increased by over 120% year-over-year and nearly doubled 2019 level. The overall hotel bookings on global platform also hit a new record high and more than doubled 2019 level.

我們全球 OTA 平台的機票預訂年增超過 120%，並較 2019 年水準接近翻倍。全球平台整體飯店預訂亦創下新高，且較 2019 年水準翻倍以上。

With global travel momentum on the rise, we continue to fortify our supply chain and strengthen our synergy among business units while remained focused on strengthening our brand in global market. We have successfully captured a substantial increase in market share in key areas such as Hong Kong, Korea and Southeast Asia, and we will continue to scale up tactical investment in these top markets.

隨著全球旅遊動能上升，我們持續強化供應鏈，並加強各業務單元之間的協同效應，同時仍專注於提升我們在全球市場的品牌力。我們已在香港、韓國與東南亞等關鍵地區成功取得顯著的市占提升，並將持續在這些重點市場加大策略性投資規模。

The DAU of our global OTA platform also shown strong upward trend and hit record high. Branding improvement for our global OTA platform will also help expand our reach to international travelers and gain traction to potential inbound travelers, empowering us to explore the potential of the untapped inbound market.

我們全球 OTA 平台的日活躍用戶（DAU）亦呈現強勁上升趨勢並創下新高。全球 OTA 平台的品牌提升也將有助於擴大我們觸及國際旅客的範圍，並吸引潛在入境旅客，賦能我們探索尚未充分開發的入境市場潛力。

Now, I would like to highlight a couple of strategic points as follows. First, accommodation. Following the strong growth in the China travel market, we continue to fortify our competitive advantage in our whole travel since the beginning of the year. In order to serve the evolving needs of our customers and create value for our products, we remain focused on diversifying our products and services offered to match a wider range of use-case scenario.

接下來我想強調幾個策略重點。第一，住宿。隨著中國旅遊市場強勁成長，自年初以來我們持續鞏固在整體旅遊領域的競爭優勢。為了服務客戶不斷演變的需求並為產品創造價值，我們仍專注於多元化產品與服務供給，以匹配更廣泛的使用情境。

We continue to press with product innovation and differentiation to provide users with novel and unique experiences. Our high-value package deal offer more than 8,000 high-end hotels with vast value of price for customers to choose from. Over 240,000 hotel partners with our TripPlus program to offer extra benefits to our high-quality customers in reward for their trust and loyalty.

我們持續推進產品創新與差異化，為使用者提供新穎且獨特的體驗。我們的高價值套裝方案涵蓋超過 8,000 家高端飯店，為客戶提供具高性價比的多元選擇。超過 240,000 家飯店合作夥伴加入我們的 TripPlus 計畫，為高品質客戶提供額外禮遇，以回饋其信任與忠誠。

Over 50% of our TripPlus reservation come from high-end hotels.

TripPlus 的預訂中，超過 50% 來自高端飯店。

Our lower-tier city penetration strategy in the previous years also continued to pay off as we persist in enhancing our product coverage, pricing and customer acquisition. Our efforts have been forging ahead to gain tractions to significant amount of new customers and successfully expanding our user base.

我們過去幾年的下沉城市滲透策略也持續見效；我們持續強化產品覆蓋、定價與獲客能力。我們的努力持續推進，成功吸引大量新客戶並有效擴大用戶基礎。

Second, AIGC. In the post-pandemic era, tourism should not be viewed as a monolith (inaudible) and it is key to understand that individual traveler choose their own demands and behaviors (inaudible). They often seek efficient and personalized solution to plan their trip in today's fast-paced world.

第二，AIGC。在後疫情時代，旅遊不應被視為單一整體（聽不清）；關鍵在於理解每位旅客會選擇其自身的需求與行為（聽不清）。在當今快節奏的世界中，他們往往尋求高效率且個人化的解決方案來規劃旅程。

With advancements in technology and the rise of AI, many travel companies are embracing innovatively to enhance customers' experience. Seeing a potential to drive a wave of disruption in the industry, we responded with the launch of TripGenie, which can interpret demands, answer questions and directly link the relevant information to the right pages.

隨著科技進步與 AI 的興起，許多旅遊公司正以創新方式提升客戶體驗。看見其可能在產業中帶來一波顛覆，我們推出 TripGenie，以解讀需求、回答問題，並將相關資訊直接連結至正確頁面。

Third, content. We also upgraded our travel bucket list to provide users strong content in order to meet travelers' evolving needs and younger generations designed break away from traditional travel norms and hit authentic encounters. We have also been establishing an infrastructure of AI-generated content production to enrich our ad creative with AIGC elements, and as a supplement to our content creation and try to enhance our content quality and improve efficiency.

第三，內容。我們也升級了我們的旅行願望清單內容，以提供使用者更強的內容供給，滿足旅客不斷演進的需求，並迎合年輕世代希望跳脫傳統旅遊規範、追求真實體驗的偏好。我們也正在建立 AI 生成內容（AIGC）的生產基礎設施，以 AIGC 元素豐富我們的廣告創意，作為內容創作的補充，並嘗試提升內容品質與效率。

In Q2, our content generation pipeline continue to grow steadily with number of KOLs increased by 30% year-over-year. User-generated content also increased by 23% compared to last quarter.

在第二季，我們的內容生成管線持續穩健成長，KOL 數量年增 30%。使用者生成內容也較上一季增加 23%。

On content marketing strategy, orbits around the product and technology innovation, we'll continue to enhance the tools and develop the latest tools to enhance our content to market offerings, ultimately improving the booking experience for our customers and providing diverse growth opportunities for our products.

在內容行銷策略方面，我們將圍繞產品與技術創新，持續強化工具並開發最新工具，以提升我們的內容與市場供給，最終改善客戶的預訂體驗，並為我們的產品提供多元的成長機會。

Now let us talk about corporate responsibility, which we are focusing on. While strengthening our capability to inspire and serve customers to explore the world, we remain committed to pushing forward our corporate responsibility works to make contributions to our society. First, for common prosperity initiatives, our commitment to contributing to the community is unwavering. Since the official launch of Trip.com Group Rural Revitalization Strategy in 2021, we have established 23 country repeats across the country, creating employment opportunity and increasing income for local residents, thereby contributing to the goal of common prosperity.

接下來談談我們重點關注的企業責任。在強化我們啟發並服務客戶探索世界的能力之際，我們仍致力於推進企業責任工作，為社會做出貢獻。第一，在共同富裕倡議方面，我們回饋社區的承諾始終如一。自 2021 年攜程集團鄉村振興策略正式啟動以來，我們已在全國建立 23 個鄉村據點，創造就業機會並提升當地居民收入，從而助力共同富裕目標。

Second, child care subsidy. We are also dedicated to empowering women in the workplace and have recently launched a subsidy program to alleviate the financial burden of childbirth for our employees with the hope to encourage our employees to start or grow their family without compromising on their professional goals and achievements.

第二，育兒補助。我們也致力於賦能職場女性，並近期推出補助計畫，以減輕員工生育的財務負擔；希望鼓勵員工在不影響其職業目標與成就的前提下，開始或擴大家庭。

Third, sustainability. With a growing focus on global sustainable development, we have been actively exploring the integration of business value and social value. We initiated the Less-Carbon Neutral Plan last year, aiming to provide users with a wider range of green travel options and have resulted in more than 16 million people opt for low carbon travels through our platform. Incentivizing sustainable travel initiatives for our partners, we aim to attract more like-minded organizations to join the low carbon green movement to respond to country's 30/60 Decarbonization goal.

第三，永續發展。隨著全球對永續發展的關注日益提升，我們一直積極探索商業價值與社會價值的融合。我們於去年發起「低碳中和計畫」，旨在為使用者提供更廣泛的綠色出行選擇，並已促成超過 1,600 萬人透過我們的平台選擇低碳旅行。我們也透過激勵合作夥伴的永續旅行倡議，期望吸引更多志同道合的組織加入低碳綠色行動，以回應國家 30/60 減碳目標。

In conclusion, we're encouraged by the strong recovery in 2023. We are proud of the efforts and the results delivered by our team, even when international airlift is still limited and visa backlogs remain, which all point to a considerable untapped potential in the travel recovery in the future. We remain optimistic about the long-term outlook of the industry, and we'll continue to strengthen our product offering to assist our travelers with their global ventures.

總結而言，我們對 2023 年的強勁復甦感到振奮。即使國際航班運力仍受限、簽證積壓仍在，我們仍為團隊所付出的努力與交付的成果感到自豪；這些因素也顯示未來旅遊復甦仍有相當可觀的未釋放潛力。我們對產業長期前景保持樂觀，並將持續強化產品供給，協助旅客展開全球旅程。

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

接下來，我把電話交給 Cindy。

Thanks, Jane. Good morning, everyone. For the second quarter of 2023, Trip.com Group reported a net revenue of RMB 11.2 billion, representing a 180% increase from the same period last year and a 22% increase from the previous quarter primarily due to strong recovery in the travel market. Accommodation reservation revenue for the second quarter was RMB 4.3 billion, representing a 216% increase year-over-year and a 23% increase quarter-over-quarter, which is 26% higher than the 2019 level.

謝謝，Jane。各位早安。2023 年第二季，Trip.com 集團淨營收為人民幣 112 億元，較去年同期成長 180%，較上一季成長 22%，主要受惠於旅遊市場強勁復甦。第二季住宿預訂營收為人民幣 43 億元，年增 216%、季增 23%，較 2019 年水準高出 26%。

Both domestic and outbound hotels have seen robust growth and outpaced the industry. Overall, hotel bookings have achieved a record high and have grown over 50% above the pre-pandemic level.

國內與出境酒店均呈現強勁成長，並跑贏行業。整體而言，酒店預訂量創下歷史新高，較疫情前水準成長超過 50%。

Transportation ticketing revenue for the second quarter was RMB 4.8 billion, representing a 173% increase year-over-year and a 16% increase quarter-over-quarter, which is 41% higher than the 2019 level. This is mainly due to robust recovery of outbound air and strong growth in domestic and global air business.

第二季交通票務營收為人民幣 48 億元，年增 173%、季增 16%，較 2019 年水準高出 41%。這主要由於出境航班強勁復甦，以及國內與全球機票業務的強勁成長。

Packaged tour revenue for the second quarter was RMB 722 million, representing a 492% increase year-over-year and an 87% increase quarter-over-quarter, recovering to 69% of the 2019 level. Domestic package tour has outgrown the 2019 level, while recovery in the outbound package tour was still lagging behind.

第二季跟團遊（套裝旅遊）營收為人民幣 7.22 億元，年增 492%、季增 87%，恢復至 2019 年水準的 69%。國內套裝旅遊已超過 2019 年水準，而出境套裝旅遊的復甦仍相對落後。

Corporate travel revenue for the second quarter was RMB 584 million, representing a 178% increase year-over-year and a 31% increase quarter-over-quarter, which is 89% higher than the 2019 level, with air ticket booking increased by double digit above 2019 level and hotel bookings fivefold the 2019 level.

第二季商旅營收為人民幣 5.84 億元，年增 178%、季增 31%，較 2019 年水準高出 89%；其中機票預訂較 2019 年水準呈雙位數成長，酒店預訂量為 2019 年的五倍。

Excluding share-based compensation charges, our total adjusted operating expenses was 18% higher than the previous quarter and 12% higher than the same period in 2019. Adjusted product development expenses for the second quarter increased by 9% from the previous quarter and increased by 12% compared with the same period in 2019.

剔除股份支付費用後，我們的調整後營運費用總額較上一季高出 18%，較 2019 年同期高出 12%。第二季調整後產品研發費用較上一季增加 9%，較 2019 年同期增加 12%。

Adjusted G&A expenses for the second quarter increased by 2% from the previous quarter and increased by 11% from the same period in 2019. This is mainly due to increase in personnel-related expenses. The increase was mainly related to regular wage inflation and high performance-based compensation in recognition of the exceptional performance achieved in this quarter. The total headcount of our product development and G&A teams was significantly lower than the same period in 2019.

第二季調整後一般及行政（G&A）費用較上一季增加 2%，較 2019 年同期增加 11%。這主要由於人員相關費用增加；增幅主要與例行薪資通膨以及為表彰本季卓越表現而提高的績效薪酬有關。我們產品研發與 G&A 團隊的總人數顯著低於 2019 年同期。

Adjusted sales and marketing expenses for the second quarter increased by 34% from the previous quarter and increased by 11% compared with the same period of 2019. The sequential increase was primarily due to increased marketing promotion activities.

第二季調整後銷售與行銷費用較上一季增加 34%，較 2019 年同期增加 11%。環比增加主要由於行銷推廣活動增加。

Adjusted EBITDA was RMB 3.7 billion for the second quarter compared with RMB 355 million in the same period last year and RMB 2.8 billion in the previous quarter. Adjusted EBITDA margin was 33% for the same -- for the second quarter compared with 9% in the same period last year and 31% in the previous quarter.

第二季調整後 EBITDA 為人民幣 37 億元，去年同期為人民幣 3.55 億元，上一季為人民幣 28 億元。第二季調整後 EBITDA 利潤率為 33%，去年同期為 9%，上一季為 31%。

Diluted earnings per ordinary share and per ADS was RMB 0.94 or USD 0.13 for the second quarter of 2023. Excluding share-based compensation charges and fair value changes of equity security investments, and exchangeable senior notes, non-GAAP diluted earnings per ordinary share and per ADS were RMB 5.11 or USD 0.70 for the second quarter.

2023 年第二季，每股普通股及每股 ADS 稀釋後收益為人民幣 0.94 元或美元 0.13 元。剔除股份支付費用、權益證券投資公允價值變動以及可交換高級票據的影響後，第二季非 GAAP 每股普通股及每股 ADS 稀釋後收益為人民幣 5.11 元或美元 0.70 元。

As of June 30, 2023, the balance of cash and cash equivalents, restricted cash short-term investment, held-to-maturity time deposits and financial products was RMB 75 billion or USD 10.3 billion.

截至 2023 年 6 月 30 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合計為人民幣 750 億元或美元 103 億元。

Turning to the third quarter of 2023. We would like to share some colors of our business. The travel market continued to show very strong momentum in the third quarter, primarily driven by leisure travel demand. In July, the industry-level air passenger volume in the domestic market was 10% to 15% higher than the 2019 level, and industry-level hotel RevPAR was above 10% higher. International air passenger volumes has also recovered to over 50% quarter-to-date.

接下來談 2023 年第三季。我們想分享一些業務近況。第三季旅遊市場持續展現非常強勁的動能，主要由休閒旅遊需求帶動。7 月，國內市場行業層面的航空旅客量較 2019 年水準高出 10% 至 15%，行業層面的酒店 RevPAR 也高出逾 10%。國際航空旅客量截至目前也已恢復至超過 50%。

Our domestic hotel bookings have increased by over 70% when compared to the same period in 2019 and have increased by more than 100% during peak weeks. In the outbound segment, our hotel and air bookings have recovered to 80% of the 2019 level and has even surpassed the pre-pandemic levels during peak weeks. In addition, our global OTA platform has also continued to maintain a triple-digit growth when compared to the same period before pandemic.

與 2019 年同期相比，我們的國內酒店預訂量增加超過 70%，在高峰週更增加超過 100%。在出境業務方面，我們的酒店與機票預訂已恢復至 2019 年水準的 80%，並在高峰週甚至超過疫情前水準。此外，與疫情前同期相比，我們的全球 OTA 平台也持續維持三位數成長。

To conclude, the strong level of bookings in the second quarter of 2023 across market segments is encouraging. We are confident in travelers' unwavering travel demand and the long-term market outlook and remain keen on capitalizing on the opportunities that lie ahead with us.

總結而言，2023 年第二季各細分市場的強勁預訂表現令人鼓舞。我們對旅客持續且堅定的出行需求與市場長期前景充滿信心，並將積極把握未來的機會。

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

接下來，請接線員開放提問。

Thank you, Management. (Operator Instructions) First question comes from the line of Brian Gong from Citi.

謝謝管理層。（接線員指示）第一個問題來自花旗 Brian Gong 的線路。

James, Jane, Cindy and Michelle, congratulations on solid results. I have a quick question on AI that James and Jane just discussed. So could you please provide more color on your generative AI assistant as such engines are also adopting generative AI technology to improve search experience. How do you evaluate the potential risks that search engines and platform with large online traffic that might replace OTAs or turning OTA to more like a mere provider of travel products?

James、Jane、Cindy 和 Michelle，恭喜取得穩健的業績。我有一個關於 AI 的簡短問題，剛才 James 和 Jane 提到了。能否請你們就生成式 AI 助手提供更多細節？因為搜尋引擎等也在採用生成式 AI 技術以改善搜尋體驗。你們如何評估：擁有大量線上流量的搜尋引擎與平台，可能取代 OTA，或將 OTA 轉變為更像只是旅遊產品供應商的潛在風險？

Yes. Thank you for the question. As mentioned in our prepared remarks, we launched our first AI assistant, TripGenie earlier in February this year. We have recently rolled out an updated version of TripGenie, which is capable of interpreting text and voice commands, offers contextual assistance and provide actionable responses.

是的。謝謝你的提問。如同我們在事先準備的發言中提到的，我們在今年2月較早時推出了我們第一個 AI 助理 TripGenie。我們近期也推出了 TripGenie 的更新版本，能夠解讀文字與語音指令，提供具情境的協助，並給出可執行的回應。

We also launched an infrastructure of AI-generated content production as a supplement to our content creation pipeline to enhance our content quality and improve efficiency.

我們也推出了 AI 生成內容（AIGC）的生產基礎設施，作為我們內容創作流程的補充，以提升內容品質並提高效率。

We believe generative AI technology will not replace OTA platforms, but instead is capable to help improve the operating efficiency of the OTA platforms. Also, OTAs are well positioned to develop their own AI travel assistance with the help of their large travel transaction data and deep understanding of customer requirements.

我們相信生成式 AI 技術不會取代 OTA 平台，而是能夠協助提升 OTA 平台的營運效率。此外，憑藉大量的旅遊交易數據以及對客戶需求的深刻理解，OTA 也具備良好條件在此基礎上開發自有的 AI 旅遊助理。

Hello, we can move on to the next question. Hello, operator? Hello, Operator, we can move on to the next question.

你好，我們可以進入下一個問題。你好，接線員？你好，接線員，我們可以進入下一個問題。

Excuse me. This is operating speaking. I beg your pardon. Our next question is from Alex Yao from JPMorgan.

不好意思。這裡是接線員。我再說一次。下一個問題來自摩根大通（JPMorgan）的 Alex Yao。

(technical difficulty) trend of China's travel market, including both leisure and business travel.

（技術問題）中國旅遊市場的趨勢，包括休閒與商務旅遊。

Alex, somehow we could not hear your full question. Can you please repeat the full question?

Alex，不知何故我們沒有聽到你完整的問題。可以請你把整個問題再重複一次嗎？

Okay. The first part of the question is, in the past few quarters, have you seen any indication of consumption downwards in China's leisure or business travel activity?

好的。問題的第一部分是：在過去幾個季度，你們是否看到中國休閒或商務旅遊活動出現任何消費走弱的跡象？

And then the second question is on your thoughts around long-term trend of China's travel markets, including both leisure and business travel.

第二個問題是：你們如何看待中國旅遊市場的長期趨勢，包括休閒與商務旅遊？

Thank you, Alex. There has been concerns that weakening consumer spending and investment may have a negative spillover effect on the demand for travel. Nevertheless, we maintained an optimistic outlook on the long-term growth of China's travel market as leisure travel holds a greater influence on industry growth and the demand for leisure travel since early 2023 has remained very robust.

謝謝你，Alex。市場一直擔心消費支出與投資走弱可能對旅遊需求產生負面外溢影響。儘管如此，我們仍對中國旅遊市場的長期成長保持樂觀，因為休閒旅遊對產業成長的影響更大，而且自 2023 年初以來，休閒旅遊需求一直非常強勁。

There has been a couple of reasons why we have -- why we keep quite optimistic on the long term. There has been a shift in the consumer spending away from goods and into the services. And we expect travel to occupy a larger share of the household expenditure as it is a significant component of experiential and service consumption. Moreover, the continuous online penetration in the travel industry will drive further growth for OTAs, helping to offset some potential negative impact stemming from economic fluctuations.

我們之所以對長期保持相當樂觀，主要有幾個原因。其一，消費支出正從商品轉向服務。我們預期旅遊將在家庭支出中占比更高，因為它是體驗型與服務型消費的重要組成部分。此外，旅遊產業線上滲透率的持續提升，將推動 OTA 進一步成長，有助於抵銷部分由經濟波動帶來的潛在負面影響。

So far, we have seen no sign of consumers trading down in terms of hotel star rating or shortening their length of stay. The average spending per customer on our platform in the first half of 2023 has already outgrown the pre-pandemic level. Increased amount and higher frequency of spending have seen for both new users and repeating users.

截至目前，我們尚未看到消費者在酒店星級上「降級消費」或縮短住宿天數的跡象。2023 年上半年，我們平台的單客平均消費已超過疫情前水準。無論是新用戶還是回訪用戶，消費金額與消費頻次都有所提升。

With regard to the business travel, since normally, business travel exhibits stronger correlation with economic activities, we do think economics fear could create hurdle for the growth of business travel spending in the short term. Meanwhile, we anticipate that the business will increasingly adopt -- manage corporate travel service as an effective approach to optimize their total travel budget.

就商務旅遊而言，由於商務旅遊通常與經濟活動的相關性更強，我們確實認為對經濟的擔憂可能在短期內對商務旅遊支出的成長造成阻礙。同時，我們預期企業將更廣泛採用企業差旅管理服務，作為優化其整體差旅預算的有效方式。

That being said, our corporate travel business has continued to show a robust performance this year, primarily driven by an expanded range of hotel products and a growing corporate client. Furthermore, according to a recent survey, around 85% and 75% of companies anticipate raising their -- they will raise their domestic and international travel budget for this year.

即便如此，我們的企業差旅業務今年仍持續展現強勁表現，主要由更豐富的酒店產品供給以及企業客戶數的成長所帶動。此外，根據近期一項調查，約 85% 與 75% 的公司預期將在今年提高其國內與國際差旅預算。

And last, but not least, recently, the government has also published a series of policies to promote service consumption in the travel industry. We strongly believe that the innovation and infrastructure development will inject energy into the recovery of the industry in general.

最後但同樣重要的是，近期政府也發布了一系列促進旅遊產業服務消費的政策。我們堅信，創新與基礎設施建設將為整體產業復甦注入動能。

(Operator Instructions) Next question is from the line of Alex Poon from Morgan Stanley.

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

Congratulations on a very strong quarter. Can management share more information about the recent burst of different segments, including domestic business, outbound business and international travel? And is there any additional color you can highlight for the upcoming national holiday in October? And how should we think about the momentum in Q4 and beyond?

恭喜本季表現非常強勁。管理層能否分享更多關於近期各細分領域的爆發式成長情況，包括國內業務、出境業務以及國際旅遊？另外，對於10月即將到來的國慶假期，你們能否提供更多補充說明？以及我們應如何看待第四季及之後的動能？

Sure. Domestic China travel market has already fully recovered and has outgrown the pre-pandemic level. The capacity of outbound flights further recovered to around 50% of the 2019 level. According to the China Air Aviation Association, outbound flight capacity is expected to reach 60% to 65% in the second half of 2023. We will continue to outpace -- we continued to outpace the industry recovery in both the domestic Chinese and outbound travel market.

好的。中國國內旅遊市場已經全面復甦，並且超過疫情前水準。出境航班運力進一步恢復至約 2019 年水準的 50%。根據中國航空運輸協會的資料，2023 年下半年出境航班運力預計將達到 60% 至 65%。我們在中國國內與出境旅遊市場的復甦速度均持續領先於行業。

Our domestic hotel bookings have surpassed the 2019 level by 70%. Outbound hotel and air reservations on our platform has also recovered to more than 80% of the 2019 level. In spite of the high base in the comparison period, our overseas OTA platforms maintained triple-digit growth over 2019 level.

我們的國內酒店預訂量已較 2019 年水準高出 70%。我們平台上的出境酒店與機票預訂也已恢復至 2019 年水準的 80% 以上。儘管比較基期較高，我們的海外 OTA 平台相較 2019 年仍維持三位數成長。

With regard to the coming mid-autumn and National Day holiday, we expect to see another wave of strong travel activities. The majority of its bookings will be reflected in our Q3 results.

關於即將到來的中秋與國慶假期，我們預期將迎來另一波強勁的旅遊活動。其大部分預訂將反映在我們第三季的業績中。

Since the current booking window remains quite short, so in terms of the Q4 number, we have a very limited visibility. While our China domestic travel momentum may slow down due to weaker seasonality, outbound travel could see further recovery with the increased international flight capacity.

由於目前的預訂窗口仍然相當短，因此就第四季數據而言，我們的能見度非常有限。雖然中國國內旅遊動能可能因季節性轉弱而放緩，但隨著國際航班運力增加，出境旅遊有望進一步復甦。

(Operator Instructions) Next question comes from the line of Simon Cheung of Goldman Sachs.

（接線員指示）下一個問題來自高盛（Goldman Sachs）的 Simon Cheung。

I have actually two questions. Good to see that you have outperformed the market and the market continue to improve quite strongly. And I think you did mention that, that's largely driven leisure travel. I think to the extent that you can give us some numbers, how is the business travel as a percentage of total or even when you compare with the 2019 level and some of the momentum that you have seen in the recent months or recent weeks, that would be helpful. That's the first question.

我其實有兩個問題。很高興看到你們跑贏市場，而且市場持續強勁改善。我記得你們提到這主要由休閒旅遊帶動。在你們方便提供一些數字的前提下，商務旅遊占總量的比例如何？或者與 2019 年水準相比恢復到什麼程度？以及你們在最近幾個月或最近幾週看到的動能如何？這是第一個問題。

And then the second question, I wanted to touch on a bit on the competitive landscape in China. We've been hearing some of your payers are increasing subsidies on the hotel segments. And obviously, one of the concerns has been doing stepping up, turning more aggressively in the market as well, providing different formats of booking. Wondering whether you -- how you have been adjusting it? And should we be expecting the sales and marketing expenses to further escalate as what we have seen in the last quarter?

第二個問題想談談中國的競爭格局。我們聽說你們的一些同業正在酒店業務加大補貼。當然，其中一個擔憂是某些玩家也在更積極地加碼市場，提供不同形式的預訂方式。想請問你們如何調整應對？以及我們是否應預期銷售與行銷費用會像上季那樣進一步上升？

Thank you. We have seen basically a very strong recovery or increase in our business across different segments. So the corporate travel revenues for the second quarter represent 178% increase year-over-year and a 31% increase quarter-over-quarter. In general, even the corporate travel business has achieved -- have achieved 89% if you compare, higher than the 2019 level, which mainly driven by the -- both the air and especially the hotel bookings. And so the hotel bookings in the corporate travel business have achieved a fivefold if you compare -- 5x compared with the 2019 level, which has been a growth leader for our corporate business.

謝謝。我們看到各個細分領域的業務都出現非常強勁的復甦或成長。第二季企業差旅收入同比增長 178%，環比增長 31%。整體而言，若與 2019 年相比，企業差旅業務已達到（並超過）2019 年水準的 89%，主要由機票以及尤其是酒店預訂所帶動。此外，企業差旅業務中的酒店預訂量若與 2019 年相比已達到 5 倍，成為我們企業業務的成長領先項。

Yes, as I explained, corporate travel business or business travelers will have a higher correlation with the general macros, but we've also seen the trend that -- actually, the manage -- the business travel services have created a lot of values to help our customers to manage their total travel spending. Therefore, we, to some extent, see acceleration of the new user acquisitions in the corporate travel business which, to some extent, will offset the potential negative impact.

是的，如我所說，企業差旅或商務旅客與整體宏觀環境的相關性更高，但我們也看到一個趨勢：差旅管理服務確實創造了很大價值，能幫助客戶管理其整體差旅支出。因此，在某種程度上，我們看到企業差旅業務的新客獲取有所加速，這也在一定程度上抵銷了潛在的負面影響。

And the second question is about the content -- competing with the content providers. The content providers, they have different co-competence compared to the OTAs in general. And they're primarily focusing on providing inspirations whereas OTAs will assess -- will prioritize transactions and service fulfillment.

第二個問題是關於內容——與內容平台的競爭。內容平台相較於 OTA 在能力上有所不同，它們主要聚焦於提供靈感，而 OTA 則會更優先聚焦交易與服務履約。

Through the robust supplier chain management and high-quality customer service, we are able to offer the competitive products, smooth booking experience, personalized and reliable travel services, which all these factors is critical success factors to provide travel-related services. And I think for the content platform, they will find it's very difficult to replicate. And at the same time, we will continue to invest in our own content strategy, helping users to find inspirations and make well-informed decisions.

憑藉強健的供應鏈管理與高品質的客戶服務，我們能提供具競爭力的產品、順暢的預訂體驗、個人化且可靠的旅遊服務；這些都是提供旅遊相關服務的關鍵成功因素。我認為內容平台很難複製。同時，我們也會持續投入自有內容策略，協助用戶獲取靈感並做出更明智的決策。

Next question comes from James Lee from Mizuho.

下一個問題來自瑞穗（Mizuho）的 James Lee。

I have a big picture question here for Jane, if I can. Maybe help us understand how do you think about the normalized growth rate post the COVID recovery. Is it different than before since I'm hearing that outbound ADRs in terms of inflation are higher and stickier. And also help us think about what drivers we should think about going forward? In the past, you talked about advertising. Just want to revisit some of the initiatives you're working on long term.

我有一個偏宏觀的問題想請教 Jane（如果可以的話）。能否幫我們理解一下，你們如何看待 COVID 復甦之後的常態化成長率？是否與疫情前不同？因為我聽到出境業務的 ADR（平均每日房價）在通膨影響下更高且更具黏性。另外也請幫我們思考未來應關注哪些驅動因素。過去你們談過廣告業務，我想再回顧一下你們正在推進的長期舉措。

Sure. Thanks, James. In the long term, we look at a couple of baseline. First of all, the GDP growth rate. If we assume the GDP growth rate is somewhere around 5% normally, the industry for travel will outpace the GDP growth rate by a couple of percentage because people who can afford to travel normally earns a little bit more than average of the people. So we assume travel probably will be somewhere around 8 -- 7%, 8%.

當然。謝謝你，James。從長期來看，我們會看幾個基準。首先是 GDP 成長率。若我們假設 GDP 成長率通常約在 5% 左右，旅遊產業的成長會比 GDP 成長率高出幾個百分點，因為有能力旅遊的人通常收入會略高於平均水準。因此我們假設旅遊成長大概會在 8%——約 7% 到 8%。

And the third line we're looking at is offline to online, and we can outpace the general industry growth by a couple of percentage. So somewhere around 15% to 25% in the next couple of years is what we have targeted for.

第三條線我們看的是線下到線上，我們可以比整體產業成長再快幾個百分點。因此，未來幾年我們的目標大約是 15% 到 25%。

The second thing is on ADR. You're right that when we send more people from China to the rest of the world, normally, the air ticket is more expensive and hotel will stay -- customers when they travel abroad will stay longer. So both on the ADR and the GMV will increase when we increase the percentage of outbound travel. So we are very positive on that.

第二點是 ADR。你說得對，當我們把更多人從中國送到世界各地時，通常機票會更貴，而出境旅遊的客戶也會住得更久。因此，隨著出境旅遊占比提升，ADR 與 GMV 都會上升。我們對此非常正面。

The third one is on the drivers. On the drivers, we -- like you said, the content plus advertisement is one of the drivers. The second thing is on the technology is how we can use new technology to explore new potential by offering better user interface and provide the targeted product, therefore, we can increase the conversion better. That's also another generation -- addition to our potential.

第三點是成長驅動因素。就驅動因素而言，我們——如你所說，內容加上廣告是其中一個驅動。第二個是技術：我們如何運用新技術，透過提供更好的使用者介面與更精準的產品推薦來挖掘新的潛力，從而更好地提升轉換率。這也是我們潛力的另一個來源——一個增量。

The third one is geographic expansion as our customers are traveling from China to Asia, from Asia to Australia, New Zealand to the rest of the world, we are also going to have more and more suppliers get on our system and therefore, increase our footprint in the global places. So we are very excited for the future of the travel industry, and we will work very hard with our partners, with our service team to provide excellent service to our customers and bring new customers to our suppliers.

第三個是地理擴張。隨著我們的客戶從中國到亞洲、從亞洲到澳洲、紐西蘭再到世界各地旅行，我們也會讓越來越多供應商接入我們的系統，從而擴大我們在全球各地的覆蓋。因此我們對旅遊產業的未來非常興奮，並將與合作夥伴及服務團隊一起努力，為客戶提供卓越服務，同時為供應商帶來新客戶。

Our next question comes from Wei Xiong from UBS.

下一個問題來自瑞銀（UBS）的魏熊。

Congrats on another solid quarter. I want to ask about the outbound travel because the recovery on our platform, again, exceeded the recovery pace of the industry and recently, we have further relaxation on group tours extending to 70 more countries and regions. So just wondering how should we think about the impact on outbound travel and our overall business? And also once we see better recovery on the outbound travel side, will there be any cannibalization to the domestic travel side?

恭喜又一個穩健的季度。我想問出境旅遊，因為我們平台上的復甦再次快於行業復甦節奏，且近期跟團遊進一步放寬，新增延伸至 70 個國家和地區。想請教我們應如何看待對出境旅遊及整體業務的影響？另外，一旦出境旅遊端復甦更好，是否會對國內旅遊端造成替代（蠶食）？

Thank you. Yes. At the industry level -- the industry level outbound flight capacity is expected to reach 60% to 65% in the second half of 2023. In the -- yes, during the summer holidays, while the industry level air capacity is about 50% recovery, we already achieved both our air and hotel outbound business have recovered to about 80% if you compare with the pre-pandemic level. And the expanded list of overseas group tour destinations will contribute to the recovery of our outbound group to our business.

謝謝。是的。從行業層面來看——行業層面的出境航班運力預計在 2023 年下半年達到 60% 到 65%。在——是的，在暑期期間，行業層面的航空運力大約恢復到 50% 時，我們的出境機票與酒店業務相較疫情前水準已恢復到約 80%。而擴大的出境跟團遊目的地清單也將推動我們出境跟團遊業務的復甦。

And with the total number of approved destination increased to 138, the outbound travel to most destinations right now is unrestricted. And this development is expect to instill the confidence in the travel market and potentially expedite the restoration of international air capacity and local service capacity in the destinations, which will benefit across the board, not only the group tours, but also more importantly to our hotel, air and all other product offering business targeting to the outbound business.

隨著核准目的地總數增加至 138 個，目前前往大多數目的地的出境旅遊已不受限制。這一進展預計將增強旅遊市場信心，並可能加速國際航班運力以及目的地當地服務能力的恢復，從而全面受益——不僅是跟團遊，更重要的是我們面向出境業務的酒店、機票及其他各類產品供給業務。

I think in general, our outbound business has comparatively higher selling price, while the service cost is pretty much similar compared with our domestic business. So I don't think there will be a cannibalization of the existing, for example, the domestic business. It's just for customers, they have a wider range of options for the destinations they can choose, and outbound travel business definitely will become a future growth driver for our business moving forward.

總體而言，我們的出境業務售價相對更高，而服務成本與國內業務相比基本相近。因此我不認為會對既有的、例如國內業務造成蠶食。對客戶而言，只是可選目的地範圍更廣；而出境旅遊業務無疑將成為我們未來業務增長的驅動因素。

Our next question comes from Bruce Chu from HSBC.

下一個問題來自匯豐（HSBC）的 Bruce Chu。

Can you hear me?

你聽得到我嗎？

Yes.

聽得到。

This is Parash here actually, Bruce helped me just for the line. I had one question probably two parts. So this quarter's results set a high bar compared to the pre-COVID level, both in terms of the domestic business as well as in terms of profitability. Do you think that the transition from offline to online or some of the pent-up demands of the market share gain will settle around this level and incremental growth will be more as the underlying business grows? Or you think that with adoption of AI or a generative AI, the pace of offline to online that has started from COVID probably has further more room to go and within that, Trip.com.com will take a larger share?

其實我是 Parash，Bruce 只是幫我接了這條線。我有一個問題，可能分兩部分。本季度的業績相較於疫情前水準設下了很高的門檻，無論是國內業務還是盈利能力。你們認為線下到線上的轉移，或市場份額提升所帶來的被壓抑需求，會在這個水準附近趨於穩定，之後的增量增長更多來自底層業務自然增長？還是你們認為，隨著 AI 或生成式 AI 的採用，從 COVID 開始的線下到線上轉移速度仍有更大提升空間，而在此過程中 Trip.com.com 會取得更大的份額？

Yes, AI definitely, as James and Jane explained, it will have an impact for all the industries. For our industry, it will impact, for example, will help us to increase the efficiencies of our service center. And on the same time, will change the -- potentially change the user behavior on the search result.

是的，AI 肯定會，如 James 和 Jane 所解釋的那樣，對所有行業產生影響。對我們行業而言，它會影響，例如幫助我們提升服務中心的效率。同時，也會改變——有可能改變用戶在搜尋結果上的行為。

But in general, I think in travel industry still, our growth were based on a couple of fundamental things. First is the service capability or excellent service qualities that we offer to the users, which will help users to have a peace of mind, especially when they travel, for example, in the long haul or to the outbound destinations. And second is the competitiveness of our inventory. Once you have the best inventory to serve your customers, you will definitely weighing a lot of users.

但總體來說，我認為旅遊行業的增長仍然基於幾個基本面。第一是我們向用戶提供的服務能力或卓越的服務品質，這能讓用戶更安心，尤其是在長途旅行或前往出境目的地時。第二是我們庫存（供給）的競爭力。一旦你擁有最好的庫存來服務客戶，你一定會吸引大量用戶。

I think going forward, definitely move from offline to online will continue to fuel our future growth. But a couple of few things that I think Jane already explained in the earlier question that we think our long-term growth will have -- even after the COVID, we think our long-term growth will be in the range of the teens to 20s.

我認為展望未來，線下到線上的轉移肯定會持續推動我們的未來增長。但有幾點——我想 Jane 在前面的問題中已經解釋過：我們認為長期增長——即使在 COVID 之後，我們的長期增長仍會在十幾到二十幾（百分比）的區間。

There's a couple of growth drivers. And the first 1 is the expansion of our user bases as a result of our increased online penetration, particularly in the mid- to lower-tier cities. This larger population increased the GDP per capita, present opportunities for our future business growth. And the second one is an increased purchasing frequency and cross-selling ratios, which will also contribute to the continuous growth of our business. Our transportation to the accommodation cross-selling ratio has improved by more than 40% as compared with the pre-COVID level.

有幾個增長驅動因素。第一個是，隨著線上滲透率提升，特別是在中低線城市，我們的用戶基礎擴大。這一更大的人口基數以及人均 GDP 的提升，為我們未來業務增長帶來機會。第二個是購買頻次與交叉銷售比例的提升，也將促進我們業務的持續增長。我們從交通到住宿的交叉銷售比例相較疫情前水準提升了 40% 以上。

Last but not least, the robust growth and improve the profitability of our Trip.com business. Our global OTA business will also significantly contribute to the group's long-term development.

最後但同樣重要的是，Trip.com 業務的強勁增長以及盈利能力的提升。我們的全球 OTA 業務也將對集團的長期發展作出重要貢獻。

Our next question comes from Thomas Chong of Jefferies.

下一個問題來自 Jefferies 的 Thomas Chong。

Congratulations on the strong set of results. My question is about capital allocation. Can management comment about the capital allocation plan for the utilization of your cash?

恭喜取得強勁的業績。我想問的是資本配置。管理層能否談談你們現金使用的資本配置計畫？

Sure. Our capital allocation approach is guided by a disciplined framework that prioritize the four key objects. The first is ensuring the sustainable operation in the face of the macroeconomic uncertainties, especially we just experienced a pandemic. During the pandemic, the top priority for us is to have a positive operating cash flow. That is the key success factor to help us to went through the whole pandemic period.

當然。我們的資本配置方法遵循一個嚴謹的框架，優先考量四個關鍵目標。第一是在面對宏觀經濟不確定性時確保可持續經營，尤其是我們剛經歷過一場疫情。在疫情期間，我們的首要任務是保持正向的經營現金流。這是幫助我們度過整個疫情期間的關鍵成功因素。

And the second one is investing in the strategic initiatives that will drive our long-term growth, for example, our investment into the AI, our investment in our global business, Trip.com, et cetera. And the third one is to fulfilling our debt obligations. And the last one and most important one is we will consider how to return our capital to return it back to long-term shareholders.

第二是投資於能推動我們長期增長的戰略舉措，例如我們對 AI 的投資、對全球業務 Trip.com 的投資等等。第三是履行我們的債務義務。最後也是最重要的一點是，我們會考慮如何回饋資本，將其回饋給長期股東。

With that, we would like to come to the close for the Q&A session. Allow me to hand the call back to Mr. Michelle Qi for closing remarks.

至此，我們的問答環節就結束了。請允許我把電話交回給 Michelle Qi 先生作結語。

Thank you. Thanks, 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 third quarter of 2023 earnings call. Thank you, and have a good day.

謝謝。感謝各位今天參與。您可以在 investors.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 2023 年第三季度業績電話會議上與各位交流。謝謝，祝各位有美好的一天。

Thank you, everyone.

謝謝各位。

Thank you.

謝謝。

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect your lines.

各位女士、先生，今天的電話會議到此結束。感謝您的參與。您現在可以掛線。