Trip.com Group Ltd (TCOM) 2024 Q2 法說會逐字稿

(technical difficulty) (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Michelle Qi, Senior IR Director. Please go ahead.

（技術難題）（操作員指示）請注意，今天的會議正在錄音。現在，我想將會議交給今天的發言人、高級投資者關係總監 Michelle Qi。請繼續。

Thank you, Maggie. Good morning, and welcome to Trip.com Group's second-quarter of 2024 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.

謝謝你，瑪吉。早安，歡迎參加攜程集團2024年第二季財報電話會議。今天與我一起參加電話會議的還有董事會執行主席梁建章先生；孫潔女士，執行長；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 provision of the US Private Securities Litigation Reform Act of 1995. These 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，我們將討論我們的未來前景和業績，這些都是根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。這些前瞻性陳述涉及固有風險和不確定性。因此，我們的結果可能與今天表達的觀點有重大不同。

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,

攜程集團向美國證券交易委員會提交的公開文件中列出了許多潛在的風險和不確定性。除適用法律要求外，攜程集團不承擔更新任何前瞻性聲明的義務。詹姆斯，

Jane, and Cindy will share our strategy and business updates, operating highlights and financial performance for the second quarter of 2024, as well as outlook for the third quarter of 2024. After the prepared remarks, we will have a Q&A session. With that, I will turn the call over to James. James, please.

Jane 和 Cindy 將分享我們的策略和業務更新、2024 年第二季的營運亮點和財務業績以及 2024 年第三季的展望。準備好的發言結束後，我們將進行問答環節。說完這些，我將把電話轉給詹姆斯。請叫我詹姆斯。

Thank you, Michelle. And thanks, everyone, for joining us on this call today. Before we proceed further, I would like to highlight that today marks a significant step towards innovation in our approach. In a departure from traditional presentations, we are leveraging AI to facilitate our discussion. Through my digital twins, I am pleased to present to you, one, the latest travel trends and developments in the market; and two, our AI innovations and the business progress we have made so far.

謝謝你，米歇爾。感謝大家今天參加我們的電話會議。在我們繼續討論之前，我想強調的是，今天標誌著我們朝著方法創新邁出了重要一步。與傳統的演示不同，我們利用人工智慧來促進討論。透過我的數位孿生，我很高興向您展示：一、市場上最新的旅遊趨勢和發展；二是我們的人工智慧創新和迄今為止的業務進展。

Building on the momentum from a robust first quarter, we are delighted to report continued growth across all segments in the second quarter, especially for cross-border travel. For the second quarter, outbound travel remained popular and continued to drive growth in the travel market with strong interest in popular APAC destinations like Japan and Thailand. Major international events such as the European Soccer Cup and the Olympics have also attracted a diverse array of travelers to Europe, extending travel distances and enriching cultural experiences.

基於第一季強勁的成長勢頭，我們很高興地報告第二季度所有領域繼續實現成長，尤其是跨境旅行。第二季度，出境旅遊依然受歡迎，並持續推動旅遊市場的成長，人們對日本和泰國等亞太地區熱門目的地有著濃厚的興趣。歐洲足球盃、奧運等重大國際賽事也吸引了各類遊客前往歐洲，延長了旅行距離並豐富了文化體驗。

Interestingly, our AI-powered TripTrends data reveals that the introduction of new flight routes can significantly increase travelers' interest in those specific destinations. Over the past three months, we have observed that new flight routes have doubled or more than doubled search volumes for the corresponding destinations.

有趣的是，我們基於人工智慧的 TripTrends 數據顯示，新航線的推出可以顯著增加旅客對特定目的地的興趣。在過去三個月中，我們觀察到新航線對應目的地的搜尋量增加了一倍或一倍以上。

Simultaneously, inbound travel to China has seen remarkable growth in the first half of 2024 with a 150% year-on-year increase. Notably, visitors from visa-free countries have surged by an impressive 190% over the same period.

同時，2024年上半年中國入境旅遊人數顯著成長，年增150%。值得注意的是，同期來自免簽證國家的遊客數量激增了190%。

As international travelers explore the diverse landscape of China, and Chinese travelers venture to overseas destinations, the demand for tailored inspirations and personalized recommendations is growing. Common questions about must-do activities, must-try bites, and must-visit attractions highlight the need for reliable guidance.

隨著國際遊客探索中國多樣化的風景，以及中國遊客前往海外旅遊，對客製化靈感和個人化推薦的需求日益增長。關於必做的活動、必嚐的美食和必去的景點的常見問題凸顯了對可靠指導的需求。

We strive to leverage AI to provide users with fresh and trendy options, empowering them to plan less and travel more. Powered by large language models, we can analyze vast amounts of data to understand individual preferences, respond to contingencies with adaptive recommendations, and deliver customized itineraries that resonate with each traveler's unique interest.

我們致力於利用人工智慧為用戶提供新鮮、時尚的選擇，讓他們減少計劃，增加旅行次數。在大型語言模型的支援下，我們可以分析大量資料以了解個人偏好，透過自適應建議來應對突發事件，並提供符合每位旅客獨特興趣的客製化行程。

In June, we unveiled our AI-powered 2024 Trip.Best Global and Asia 100 lists which are based on real user reviews and year-round sales popularity. These lists enable travelers to select the best experiences a destination has to offer, including not only hotels and attractions, but also lifestyle choices such as restaurants and night life.

6 月份，我們發布了由人工智慧驅動的 2024 年 Trip.Best 全球和亞洲 100 強榜單，該榜單基於真實用戶評論和全年銷售熱度。這些清單使旅客能夠選擇目的地所提供的最佳體驗，不僅包括酒店和景點，還包括餐廳和夜生活等生活方式的選擇。

Furthermore, our TripTrends list track the hottest travel topics and events, revealing the latest travel trends based on user searches. These trends indicate that more individuals are now directing their discretionary income towards enriching travel experiences and premium services.

此外，我們的 TripTrends 清單追蹤最熱門的旅遊主題和事件，根據用戶搜尋揭示最新的旅遊趨勢。這些趨勢表明，現在越來越多的人將可支配收入用於豐富的旅行體驗和優質服務。

For example, according to TripTrends, the Ancient Egyptian exhibition in Shanghai has been China's top attraction for the past three months. Adding a playful twist to the experience, we introduced a unique “Visit With Your Cats” ticket, available exclusively on our platform, allowing visitors to bring their feline friends to see the cat mummies.

例如，根據TripTrends的數據，上海的古埃及展覽在過去三個月裡一直是中國最熱門的景點。為了讓體驗更加有趣，我們推出了獨特的「帶貓參觀」門票，該門票僅在我們的平台上發售，遊客可以帶著他們的貓朋友來看貓木乃伊。

By making trip planning easier and more enjoyable, we enhance customer satisfaction, foster loyalty, and encourage repeat visits. These improvements ultimately drive growth and innovation within the travel industry.

透過讓旅行計劃變得更輕鬆、更愉快，我們提高了客戶滿意度、培養了忠誠度並鼓勵重複訪問。這些改進最終推動了旅遊業的成長和創新。

In conclusion, travel demand remains resilient as the enduring human desire to explore makes travel a lifelong pursuit for many. As we look to the future, AI stands ready to revolutionize the travel industry, offering unparalleled opportunities to inspire new journeys, enhance user experiences, and boost operational efficiency.

總而言之，旅遊需求仍然具有彈性，因為人類持久的探索慾望使得旅行成為許多人的終身追求。展望未來，人工智慧將徹底改變旅遊業，提供無與倫比的機會來激發新的旅程、增強用戶體驗並提高營運效率。

We are committed to harnessing the power of AI and unlocking its full potential, ensuring we deliver exceptional value and continuous innovation to meet the evolving needs of our customers. With that, I will turn the call over to Jane for operational highlights.

我們致力於利用人工智慧的力量並充分發揮其潛力，確保提供卓越的價值和持續的創新以滿足客戶不斷變化的需求。說完這些，我會把電話轉給 Jane，講述營運亮點。

Thank you, James. Good morning, everyone. Like James, I am also excited to introduce my digital self as we explore a new way of delivering our insight. By employing AI to guide this segment of the presentation, I will be showcasing key operational highlights and performance metrics across our various market segments.

謝謝你，詹姆斯。大家早安。與詹姆斯一樣，我也很高興介紹我的數位自我，因為我們正在探索一種傳遞見解的新方法。透過使用人工智慧來指導演示的這一部分，我將展示我們各個細分市場的關鍵營運亮點和績效指標。

As a quick overview, our net revenue in Q2 grew by 14% year-over-year. Our adjusted EBITDA margin for this quarter was 35%.

簡單來說，我們第二季的淨收入年增了 14%。我們本季的調整後 EBITDA 利潤率為 35%。

Over the past quarter, our hotel reservations by Chinese travelers have surged by around 20% year-over-year, reflecting this enduring interest. We are pleased to see that travel consumption in China remains resilient and the travel market continues to show robust growth following a strong start in 2024.

過去一個季度，中國遊客的飯店預訂量年增約 20％，反映出這種持久的興趣。我們很高興看到，中國的旅遊消費仍保持韌性，旅遊市場繼2024年強勁開局後持續呈現強勁成長。

Outbound travel continues to be a significant driver of market growth with international flight capacity restored to about 75% of the pre-pandemic level. During the quarter, our outbound hotel and air ticket bookings recovered to 100% compared to 2019 levels, continuing to outpace the industry average by an impressive 20% to 30%.

出境旅遊持續成為市場成長的重要推手，國際航班運能已恢復至疫情前水準的75%左右。本季度，我們的出境飯店和機票預訂量較 2019 年水準恢復 100%，繼續以 20% 至 30% 的驚人速度領先行業平均水平。

Remarkably, bookings surged to more than 120% of 2019 levels during the May Labor Day holiday and over 110% during Dragon Boat Festival. The APAC region remains the top choice for Chinese travelers, with visa-free destinations such as Singapore, Thailand, and Malaysia seeing a strong resurgence.

值得注意的是，在五一勞動節假期期間，預訂量飆升至2019年水準的120％以上，端午節期間預訂量飆升至110％以上。亞太地區仍是中國遊客的首選，新加坡、泰國和馬來西亞等免簽目的地呈現強勢復甦。

In Northeast Asia, a favorable exchange rate has made Japan an even more attractive destination. Korea has also experienced a notable increase in bookings.

在東北亞，優惠的匯率使得日本成為更具吸引力的旅遊目的地。韓國的預訂量也明顯增加。

Long-haul destinations are also gaining popularity. Improved visa processing and international events such as the Euro Cup and the Olympics have further fueled this trend, leading to a year-over-year increase of over 100% in travel to France and Europe during the summer. The expanding travel radius of Chinese travelers indicates their eagerness to explore distant destinations, highlighting a shift towards higher travel expenditures.

長途目的地也越來越受歡迎。簽證辦理的改善以及歐洲盃和奧運會等國際賽事進一步助長了這一趨勢，導致夏季前往法國和歐洲的旅遊人數同比增長超過 100%。中國遊客出行半徑不斷擴大，顯示他們渴望探索遙遠的目的地，並凸顯他們向更高旅遊支出的轉變。

In addition to the increasing popularity of outbound travel, the enthusiasm for exploring destinations within China remains strong. To meet the changing preferences of travelers and support our hotel partners, Trip.com Group is continually innovating. We collaborate closely with hotel partners to explore innovative use cases and offer targeted products and services such as enticing hotel packages and Old Friends Club promotion deals to gain traction to different customer cohorts.

除了出境旅遊越來越受歡迎之外，探索中國境內旅遊目的地的熱情也依然強勁。為了滿足旅行者不斷變化的偏好並支持我們的酒店合作夥伴，攜程集團正在不斷創新。我們與酒店合作夥伴密切合作，探索創新用例，並提供有針對性的產品和服務，例如誘人的酒店套餐和老友俱樂部促銷優惠，以吸引不同的客戶群。

Interestingly, more travelers are now seeking out hidden gems in lesser-known Tier 2 and 3 cities. To foster this trend, we have teamed up with 27 cities to boost local tourism. Cities like Quanzhou, Zibo, Luoyang, and Anshan has seen impressive growth rates with traveler numbers doubling or even tripling year-over-year.

有趣的是，現在越來越多的旅客在鮮為人知的二線和三線城市尋找隱藏的寶藏。為了促進這一趨勢，我們與 27 個城市合作，推動當地旅遊業發展。泉州、淄博、洛陽、鞍山等城市的成長率令人矚目，遊客數量較去年同期增加了一倍甚至三倍。

Additionally, we are collaborating with 22 local airports to form a marketing alliance aimed at enhancing connectivity between regional and mainland life. This initiative not only makes travel more convenient but also enhances the appeal of these destinations, driving economic growth in these regions.

此外，我們還與 22 個當地機場合作，建立行銷聯盟，旨在增強地區與大陸生活之間的連結性。此舉不僅使出行更加便捷，也增強了這些目的地的吸引力，推動了這些地區的經濟成長。

On the international front, our international OTA platform has also experienced significant growth with revenue soaring by around 70%. This includes a notable 76% increase in revenue from the APAC region.

在國際方面，我們的國際OTA平台也實現了顯著成長，收入飆升約70％。其中亞太地區營收顯著成長 76%。

As we continue to focus on our mobile-first strategy, currently more than 65% of transactions on our international OTA platform are conducted through mobile platform. In Asia, this figure climbs even higher to around 75%.

隨著我們繼續專注於行動優先策略，目前我們國際OTA平台上超過65％的交易都是透過行動平台進行的。在亞洲，這一數字甚至更高，達到 75% 左右。

Building on our success in the APAC region, we are also witnessing an increase from global travelers in visiting China. This heightened interest has led to remarkable growth in our inbound travel segment with a nearly 200% surge in bookings in the first half of 2024 compared to the same period last year.

基於我們在亞太地區的成功，我們也看到來華旅遊的全球遊客數量增加。這種日益增長的興趣導致我們的入境旅遊領域實現了顯著增長，與去年同期相比，2024 年上半年的預訂量激增了近 200%。

Inbound travel now accounts for more than 25% of our international OTA platforms revenue, up from the teens level prior to COVID. Particularly, bookings from countries with visa-free entry to China are growing at the fastest rate. While Beijing, Shanghai, Guangzhou, and Shenzhen remain popular destinations, foreign visitors are increasingly exploring cities such Zhangjiajie, Xi'an, Chengdu, and Harbin.

入境遊目前占我們國際 OTA 平台收入的 25% 以上，高於新冠疫情之前的十幾個百分點。其中，來自對中國實施免簽證入境政策的國家的預訂量成長速度最快。北京、上海、廣州和深圳仍然是熱門旅遊目的地，但越來越多的外國遊客開始探索張家界、西安、成都和哈爾濱等城市。

China has facilitated travel by establishing mutual visa-free agreements with 23 countries in implementing a unilateral visa-free policy for citizens from 15 countries in Europe and Oceania. Additionally, citizens from 54 countries can benefit from a 72/144-hour visa-free transit policy when entering China.

中國已與23個國家簽訂了互免簽證協定，對歐洲、大洋洲15個國家的公民實施單邊免簽政策，為公民出行提供便利。此外，54個國家的公民入境中國可享有72/144小時過境免簽政策。

These policies allow international travelers to take a closer look and experience China firsthand. We are glad that China continues to address entry challenges for foreign visitors and look forward to growing inbound business with industry partners.

這些政策讓國際遊客能夠近距離了解並親身體驗中國。我們很高興看到中國繼續解決外國遊客入境難題，並期待與產業合作夥伴共同發展入境業務。

As we continue to expand our conventional business segment, we are thrilled to announce the performance of our “Old Friends Club”, which was launched just last quarter to cater to the 50-and-above silver generation. Year to date, these senior users had spent more than RMB 1.6 billion on our platform. This achievement comes at a time when the travel preferences of senior travelers have evolved notably over the past year.

隨著我們繼續擴大傳統業務部門，我們很高興地宣布我們的「老友俱樂部」的業績，該俱樂部於上個季度剛剛推出，旨在滿足 50 歲以上銀髮一代的需求。今年迄今，這些老年用戶在我們平台上的消費已超過16億元。這項成就的取得正值老年旅行者的旅行偏好在過去一年中發生顯著變化之際。

In 2023, group tours were the go-to choice for many seniors. However, 2024 has seen a shift towards customized tours, as seniors increasing seek quality and novelty in their travel experiences.

2023年，團體旅遊成為許多老年人的首選。然而，隨著老年人越來越追求旅行體驗的品質和新穎性，2024年將出現向客製化旅遊的轉變。

To meet these demands, Old Friends Club offers 700 exclusive products across 40 destinations and collaborates with 1,600 hotels to provide over 4,000 tailored hotel options. Additionally, we introduced the “Family Card” feature. This allows younger, tech-savvy family members to use their own phones to assist elderly relatives in planning trips and completing travel bookings, thereby making travel easier for seniors.

為了滿足這些需求，老友俱樂部在 40 個目的地提供 700 種獨家產品，並與 1,600 家酒店合作，提供超過 4,000 種客製化飯店選擇。此外，我們也推出了「家庭卡」功能。這使得年輕的、精通科技的家庭成員可以使用自己的手機協助老年親戚規劃行程、完成旅行預訂，從而使老年人的出行變得更加輕鬆。

With China's economy on the rise, the silver generation is no longer synonymous with budget travel. Instead, they are increasingly drawn to mid-to-high-end travel experiences, seeking higher quality and more unique offerings. We see significant potential for future business growth within this demographic and are committed to catering to their evolving preferences to enhance their travel experiences.

隨著中國經濟的崛起，銀髮世代不再是廉價旅行的代名詞。相反，他們越來越被中高端旅遊體驗所吸引，尋求更高品質、更獨特的服務。我們看到這一人群未來業務成長的巨大潛力，並致力於滿足他們不斷變化的偏好，以增強他們的旅行體驗。

In addition to developing initiatives tailored to the senior population, we also recognize the rising popularity of “entertainment + travel” products among the younger generation. This innovative approach has proven highly effective, with the GMV of these products increasing by more than 70% year-over-year, reflecting users’ clear intent and the trust they place in our brand.

除了製定針對老年人群體的計劃外，我們還認識到「娛樂+旅遊」產品在年輕一代中越來越受歡迎。這種創新方法已被證明非常有效，這些產品的 GMV 同比增長超過 70％，反映了用戶的明確意圖和對我們品牌的信任。

With this new type of product added to our arsenal, it also serves as an important tool for driving user acquisition. Additionally, to further expand our reach and cater to a global audience, we have rolled out these products on our international platform in six major Asian markets. This strategic move ensures that we can attract and engage young travelers from diverse background, reinforcing our commitment to innovation and customer satisfaction.

隨著這種新型產品加入我們的庫存，它也能成為推動用戶取得的重要工具。此外，為了進一步擴大我們的影響力並滿足全球受眾的需求，我們在六大亞洲主要市場的國際平台上推出了這些產品。這項策略措施確保我們能夠吸引和留住來自不同背景的年輕旅行者，從而加強我們對創新和客戶滿意度的承諾。

At Trip.com Group, we prioritize not only business development but also social responsibility and industry sustainability. This commitment to these values has significantly improved our MSCI rating, elevating it by two levels from BB to A.

在攜程集團，我們不僅重視業務發展，也重視社會責任與產業永續發展。對這些價值觀的承諾顯著提高了我們的 MSCI 評級，將其提升了兩個級別，從 BB 升至 A。

To further reduce greenhouse gas emissions, we offer electric vehicle options for car rentals and actively promote thier utilization among our users. Additionally, we encourage our hotel partners to install solar panels to harness renewable energy. Our flexible work-from-home options also contribute to reducing carbon emission and enhancing employee satisfaction.

為了進一步減少溫室氣體排放，我們提供電動車租賃選項，並積極在用戶中推廣其使用。此外，我們鼓勵我們的酒店合作夥伴安裝太陽能電池板來利用再生能源。我們靈活的在家辦公選擇也有助於減少碳排放並提高員工滿意度。

In summary, travel consumption in China continues to demonstrate remarkable resilience, with robust demand across various segments. The positive market outlook instills a sense of optimism and drives our enthusiasm for the new initiatives we have introduced. By collaborating closely with our dedicated partners, we are poised to achieve even greater success. With that, I will now turn the call over to Cindy.

整體來看，中國旅遊消費持續展現強勁的韌性，各領域的需求都很旺盛。積極的市場前景為我們帶來了樂觀的感覺，並激發了我們對所推出的新舉措的熱情。透過與我們忠誠的合作夥伴密切合作，我們有望取得更大的成功。說完這些，我現在將電話轉給 Cindy。

Thanks, Jane. Good morning, everyone. For the second quarter of 2024, Trip.com Group reported a net revenue of RMB 12.8 billion, representing a 14% increase from the same period last year and a 7% increase from the previous quarter, primarily due to strong recovery in the travel market. Accommodation reservation revenue for the second quarter was RMB 5.1 billion, representing a 20% increase year-over-year and a 14% increase quarter-over-quarter.

謝謝，簡。大家早安。2024年第二季度，攜程集團報告淨營收為人民幣128億元，較去年同期成長14%，較上一季成長7%，主要得益於旅遊市場的強勁復甦。第二季住宿預訂收入為人民幣51億元，較去年成長20%，較上季成長14%。

Outbound hotel bookings have fully recovered to the 2019 level. Domestic hotel bookings have also seen robust growth and outpaced the industry despite a tough comparison basis.

出境飯店預訂量已全面恢復至2019年的水準。儘管比較基礎嚴格，但國內酒店預訂量也呈現強勁增長，並超過了行業平均水平。

Transportation ticketing revenue for the second quarter was RMB 4.9 billion, representing a 1% increase year-over-year and a 3% decrease quarter-over-quarter. Outbound air ticket bookings have fully recovered to the 2019 level, with our domestic air business outpacing the market and global air business experiencing robust growth.

第二季交通票務收入為人民幣49億元，較去年成長1%，季減3%。出境機票預訂量已全面恢復至2019年水平，國內航空業務表現優於市場，全球航空業務維持強勁成長。

Packaged tour revenue for the second quarter was RMB 1.0 billion, representing a 42% increase year-over-year and a 16% increase quarter-over-quarter. Domestic packaged tour has already surpassed 2019 level and continue to show robust growth. The year-over-year growth was mainly driven by outbound packaged tour, which has increased by multifold.

第二季旅遊度假收入為人民幣10億元，較去年成長42%，較上季成長16%。國內度假旅遊已超過2019年的水平，並持續呈現強勁成長。年成長主要得益於出境旅遊的推動，出境旅遊成長了數倍。

Corporate travel revenue for the second quarter was RMB 633 million, representing an 8% increase year-over-year and a 24% increase quarter-over-quarter. This was primarily due to more companies choosing to adopt managed corporate travel services.

第二季商旅管理收入為人民幣6.33億元，較去年成長8%，較上季成長24%。這主要是因為越來越多的公司選擇採用託管企業差旅服務。

Excluding share-based compensation charges, adjusted product development expenses for the second quarter decreased by 2% year-over-year. Adjusted general and administrative expenses for the second quarter increased by 6% year-over-year, mainly due to increase in personnel-related expenses.

不包括股權激勵費用，第二季調整後產品開發費用較去年同期下降 2%。第二季調整後一般及行政開支年增6%，主要由於人員相關開支增加。

Adjusted sales and marketing expenses for the second quarter increased by 22% from the previous quarter and increased by 20% from the same period last year. The increase was primarily due to increased marketing promotion activities to drive business growth, particularly for our international OTA platform.

第二季調整後銷售和行銷費用較上一季增加22%，較去年同期增加20%。成長的主要原因是增加了行銷推廣活動以推動業務成長，尤其是我們的國際 OTA 平台。

Adjusted EBITDA was RMB 4.4 billion for the second quarter compared with RMB 3.7 billion in the same period last year and RMB 4.0 billion in the previous quarter. Adjusted EBITDA margin was 35% for the second quarter compared with 33% in the same period last year.

第二季調整後EBITDA為44億元人民幣，去年同期為37億元人民幣，上季為40億元。第二季調整後 EBITDA 利潤率為 35%，去年同期為 33%。

And in the previous quarter, diluted earnings per ordinary share and per ADS were RMB 5.57 or USD 0.77 for the second quarter of 2024. Excluding share-based compensation charges and fair value changes of equity securities investments and exchangeable senior notes, non-GAAP diluted earnings per ordinary share and per ADS was RMB 7.25 or USD 1 for the second quarter.

而上一季度，2024 年第二季每股普通股和每股美國存託憑證攤薄收益為 5.57 元人民幣或 0.77 美元。不計股權報酬費用以及權益類證券投資和可交換優先票據的公允價值變動，第二季度非美國通用會計準則下每股普通股和每股美國存託憑證攤薄收益為人民幣 7.25 元或 1 美元。

As of June 30, 2024, the balance of cash and cash equivalents, restricted cash, short-term investment, held-to-maturity time deposit, and financial products was RMB 99.0 billion or USD 13.6 billion. In conclusion, we are pleased to see that travel demand remains strong and that our company continues to perform well even with a tough comparison basis.

截至2024年6月30日，現金及現金等價物、受限現金、短期投資、持有至到期定期存款及理財產品餘額為人民幣990億元或136億美元。總之，我們很高興地看到，旅遊需求依然強勁，即使在嚴格的比較基礎上，我們公司仍然表現良好。

As we look ahead, we are confident that 2024 will be another great year for travel. We are dedicated to carrying out our strategic plans, which sets us up for continued growth and success. With that, operator, please open the line for questions.

展望未來，我們相信 2024 年將是另一個旅遊豐收年。我們致力於實施我們的策略計劃，這將為我們持續成長和成功奠定基礎。接線員，請打開熱線來回答問題。

Could you explain why you chose to use digital humans for this earnings call and provide more details on Trip.com Group's adoption of AI technology?

您能否解釋為什麼選擇在本次財報電話會議上使用數位人類，並提供更多有關攜程集團採用人工智慧技術的細節？

We chose to use digital humans for this earnings call to underscore our commitment to innovation and our dedication to leveraging transformative technology that has the potential to revolutionize the industry. By incorporating these virtual agents, we not only make our communication more engaging and captivating but also highlight our forward-thinking approach.

我們選擇在本次財報電話會議上使用數位人類來強調我們對創新的承諾以及我們致力於利用有可能徹底改變產業的變革性技術。透過結合這些虛擬代理，我們不僅使我們的溝通更具吸引力和吸引力，而且還突出了我們的前瞻性方法。

This choice hints at exciting future applications, such as in livestreaming shows and other scenarios, demonstrating the versatility and transformative potential of digital human technology. On our platforms, we have already employed virtual agents like virtual James to introduce popular destinations such as Shanghai and Xi'an.

這個選擇暗示了未來令人興奮的應用，例如在直播節目和其他場景中，展示了數位人技術的多功能性和變革潛力。在我們的平台上，我們已經僱用了像虛擬詹姆斯這樣的虛擬代理商來介紹上海和西安等熱門目的地。

In addition to the general use of generative AI in customer service, Copilot in software engineering, and the virtual agents you've seen, we have integrated several other AI-powered tools to enhance user experience on our mobile platforms. These include Trip.Best, which offers tailored recommendations for top accommodations, dining options, and activities around the world; TripTrends, which showcase trending events and provides inspiration for users seeking new experiences; Trip.Genie, which helps travelers in planning their itineraries with real-time insights, personalized suggestions, and customizable options.

除了在客戶服務中廣泛使用的生成式人工智慧、在軟體工程中廣泛使用的 Copilot 以及您所見過的虛擬代理之外，我們還整合了其他幾種人工智慧工具來增強我們行動平台上的使用者體驗。其中包括 Trip.Best，它為世界各地的頂級住宿、餐飲選擇和活動提供客製化推薦； TripTrends，展示熱門活動並為尋求新體驗的用戶提供靈感； Trip.Genie 透過即時洞察、個人化建議和可自訂選項幫助旅客規劃行程。

Overall, the adoption of AI technology at Trip.com Group demonstrates our commitment to enhancing both operational efficiency and customer experience. By integrating AI across various touch points, we are able to provide more personalized, consistent, and scalable interactions, ultimately driving innovation and delivering greater value to our customers.

整體而言，攜程集團採用人工智慧技術展現了我們致力於提高營運效率和客戶體驗的決心。透過在各個接觸點整合人工智慧，我們能夠提供更個人化、一致和可擴展的交互，最終推動創新並為我們的客戶提供更大的價值。

(Operator Instructions) Joyce Ju, Bank of America.

(操作員指示) Joyce Ju，美國銀行。

Good morning, James, Jane, Cindy, and Michelle. Thanks for taking my question. My question is related to the travel demand. Recently, we have seen a clear deceleration trend in China's consumption growth. I'm just wondering if management has observed a similar trend in the travel spending? Any colors on individual or business travel spending behaviors will be great. Have you seen any companies tighten their travel budgets and how does this will actually affect Trip.com's business? Thanks a lot.

早安，詹姆斯、珍、辛蒂和米歇爾。感謝您回答我的問題。我的問題與旅行需求有關。近期，我們看到我國消費成長呈現明顯減速趨勢。我只是想知道管理層是否觀察到了旅行支出的類似趨勢？任何有關個人或商務旅行消費行為的顏色都會很棒。您是否看到有公司縮減旅遊預算，這將如何影響 Trip.com 的業務？多謝。

Thanks, Joyce, for your question. What we have seen is that, the GMV per traveler on our platform remain quite consistent from last year. So the buying power still hold quite consistent with last year.

謝謝喬伊斯的提問。我們看到，我們平台上每位旅行者的商品交易總額與去年相比保持相當穩定。因此購買力仍與去年保持相當一致。

Secondly, a lot of our customers are getting their visas to traveling -- to travel around the world. So part of the increase in the price overseas offset, partially, on the ADR pressure, so we have seen quite a steady increase.

其次，我們的許多客戶正在辦理旅行簽證——到世界各地旅行。因此，海外價格上漲部分抵消了 ADR 壓力，所以我們看到了相當穩定的成長。

And thirdly, from the search volume, we realized that customers interest to explore domestically, as well as internationally, are very high. So we believe travel in the long run still is a robust industry. We just need to work very hard to provide the best product and service to our customers. Thank you.

第三，從搜尋量來看，我們發現顧客對國內和國際探索的興趣非常高。因此我們相信，從長遠來看，旅遊業仍然是一個強勁的行業。我們只需要努力為客戶提供最好的產品和服務。謝謝。

Many thanks.

非常感謝。

Alex Poon, Morgan Stanley.

摩根士丹利的 Alex Poon。

Hello, James, Jane, Cindy, Michelle, and our new AI friends. I hope you had a great summer vacation. Speaking of summer holiday, could you provide more details about our travel bookings in the summer and also the outlook for second half of the year? Thank you very much.

大家好，James、Jane、Cindy、Michelle，還有我們的新 AI 朋友。我希望你度過了一個愉快的暑假。說到暑假，您能否提供更多關於我們暑假旅行預訂的詳細資訊以及下半年的展望？非常感謝。

Sure. The quarter -- with regard to the summer performance quarter to date, our China business has maintained robust momentum with outbound travel driving the growth. Outbound air and hotel reservations have exceeded, reaching 110% to 120% of the 2019 levels, consistently outperforming the market by 20% to 30%.

當然。本季—就迄今為止的夏季業績而言，我們的中國業務保持強勁勢頭，出境遊推動了成長。出境機票和飯店預訂量已超過2019年水平，達到110％至120％，持續超出市場20％至30％。

Domestic hotel reservations have shown double-digit, year-on-year growth despite a challenging comparison to the same period last year. With regard to the overseas platform, Trip.com has maintained robust growth in the mid- to high-end, double-digit percentage range.

儘管與去年同期相比面臨挑戰，但國內酒店預訂量仍呈現兩位數的同比增長。海外平台方面，攜程持續維持中高端、兩位數百分比的強勁成長。

With regard to the forecast for the second half, despite we always have very limited visibility due to the short booking windows in China. We expect the travel activities in the second half to generally follow normal seasonal patterns.

對於下半年的預測，由於中國的預訂窗口期較短，我們的可預測性始終非常有限。我們預計下半年的旅遊活動將大致遵循正常的季節性模式。

Year-over-year comparison will be more favorable after the National Day holiday due to a relatively easier comp in the last year. In the global market, we anticipate Trip.com to continue its robust growth with Skyscanner and other overseas brands also expected to maintain a healthy growth trajectory. Thank you.

由於去年的年比銷量相對較低，國慶假期後較去年同期銷售量將更加可觀。在全球市場，我們預計Trip.com將持續保持強勁成長，Skyscanner和其他海外品牌也有望保持健康的成長軌跡。謝謝。

Thank you.

謝謝。

Thomas Chong, Jefferies.

傑富瑞 (Jefferies) 的托馬斯張 (Thomas Chong)。

Hi, good morning. Thanks, management, for the question, and a solid set of result. Could you provide more details about the domestic ADR trend during the summer? What factors have contributed to the softness in price? And how does that impact your business performance and how do you expect prices to move in the future? Thank you.

嗨，早安。謝謝管理層提出的問題以及一套可靠的結果。您能否提供有關夏季國內 ADR 趨勢的更多詳細資訊？哪些因素造成價格疲軟？這對您的業務表現有何影響？謝謝。

Thank you so much. Although our domestic hotel ADR and average airfares decreased on a year-over-year basis, sequentially, the summer prices have improved slightly as we enter the stronger season. The increase in hotel and air supply has put pressure on short-term prices, particularly when compared to the high benchmark set during last year's peak seasons.

太感謝了。儘管我們的國內酒店平均房價和平均機票價格同比有所下降，但隨著我們進入旺季，夏季價格較上季略有改善。飯店和航空供應的增加給短期價格帶來了壓力，尤其是與去年旺季的高基準相比。

For instance, a number of listed hotel inventories on our platform has increased by about 20% year-over-year. And additionally, outbound travel has significant increase this year, drawing mid-to-high-end travelers away from only domestic options.

例如，我們平台上許多上市酒店的庫存年增了約20％。此外，今年出境旅遊數量大幅增加，吸引了中高端遊客不再​​侷限於國內遊。

And the decrease of hotel ADR and average air ticket price have partially offsetting our very strong volume growth. However, in the longer-term period, as a platform, the increase in overall supply will benefit us especially in the longer-term period.

飯店平均房價和平均機票價格的下降部分抵消了我們強勁的銷售成長。但是從更長遠的角度來講，作為一個平台，整體供給量的增加對我們是有利的，特別是在更長遠的時期。

With regard to the outlook, we expected the ADR pressure to ease somewhat, maybe in the Q4 this year, and to generally follow the normal seasonality in the future. While in the longer term, as I said, we believe that the expansion and diversification of travel supply will significantly contribute to the overall growth and stability of the travel business. Thank you.

展望未來，我們預計 ADR 壓力將有所緩解，或許在今年第四季度，未來將大致遵循正常的季節性。而從長遠來看，正如我所說，我們相信旅遊供應的擴大和多樣化將極大地促進旅遊業務的整體成長和穩定。謝謝。

Thank you.

謝謝。

Brian Gong, Citi.

花旗銀行的 Brian Gong。

Morning, James, Jane, Cindy, and Michelle. Thanks for taking the question and then, congratulations on solid results. So my question is regarding outbound. Our outbound recovered decently in the second quarter. And could you please provide more details about the recovery pace of outbound during the summer break and also the outlook for the second half of this year? And what are the latest price trends? Thank you.

早安，詹姆斯、珍、辛蒂和米歇爾。感謝您回答這個問題，並祝賀您取得了堅實的成果。我的問題是關於出站的。我們的出站業務在第二季度得到了良好的恢復。另外請您介紹一下暑假出境遊的恢復速度以及今年下半年的前景？最新的價格趨勢如何？謝謝。

Thank you. The total outbound flight capacity has recovered to nearly 80% of the 2019's level during the summer with Chinese airlines showing even higher recovery rates. We anticipate that the flight capacity will remain stable over the next couple of months based on last year's patterns. And we also expect a continuous improvement in the international travel offerings in the coming years. With regard to the pricing, during the summer, average outbound airfares are still 5% to 10% above the pre-COVID levels and slightly increased quarter-over-quarter. Thank you.

謝謝。今年夏季，出境航班總運能已恢復至2019年水準的近80％，中國航空的恢復率甚至更高。根據去年的模式，我們預計未來幾個月的航班運力將保持穩定。我們也預計未來幾年國際旅行服務將持續改善。價格方面，夏季平均出境機票價格仍比疫情前的水平高出 5% 至 10%，且較上季略有上漲。謝謝。

Thank you.

謝謝。

Alex Yao, JPMorgan.

摩根大通的 Alex Yao。

Good morning, management. Thank you for taking my question. And welcome to the AI friends to join this investment community, and I sincerely hope AI will become a powerful driver to the comp's long-term growth.

早安，管理層。感謝您回答我的問題。也歡迎AI朋友們加入這個投資社區，真心希望AI能成為公司長期成長的強大驅動力。

Thank you.

謝謝。

So coming back to the question, can you provide more details on Trip.com's performance in Q2, including a breakdown by market and the product lines? Additionally, could you elaborate on Trip.com's margin trend? Thank you.

那麼回到問題上，您能否提供有關 Trip.com 第二季度業績的更多細節，包括按市場和產品線細分的情況？另外，可以詳細說明一下Trip.com的利潤率趨勢嗎？謝謝。

Thank you, Alex. Trip.com achieved a robust revenue growth of approximately 70% in the second quarter, contributing roughly about 10.5% to the group's total revenue. The APAC region accounted for over 70% of Trip.com's total revenue and showed the strongest growth among all regions, increasing by 76% year-over-year. Cross-selling transportation to hotels continue to rise with hotel-related revenue accounted for 35% to 40% of Trip.com's total revenue in the second quarter.

謝謝你，亞歷克斯。攜程第二季營收實現約70%的強勁成長，為集團總營收貢獻約10.5%。亞太地區佔Trip.com總營收的70%以上，是所有地區中成長最強勁的地區，較去年同期成長76%。交通與飯店交叉銷售持續成長，飯店相關收入佔攜程第二季總營收的 35% 至 40%。

Mobile is also another contributor. Mobile contributed -- significantly increased with 65% to 70% of orders placed through Trip.com's mobile apps globally. And in the APAC region, mobile contribute over 75%.

行動裝置也是另一個貢獻者。行動端貢獻顯著－全球範圍內，透過Trip.com行動應用程式下達的訂單佔比顯著​​提升，達65%至70%。在亞太地區，行動端貢獻率超過 75%。

With regard to the Trip's.com margin, as mentioned in the previous quarter, the Trip.com brand will continue to prioritize growth while closely monitor the ROI in each of the market. But yeah, given the ample growth opportunity in the international market, we will continuously to invest in this brand. Thank you.

關於Trip.com的利潤率，如上一季所提到的，Trip.com品牌將繼續優先考慮成長，同時密切關注每個市場的投資報酬率。但是，鑑於國際市場充足的成長機會，我們將繼續投資該品牌。謝謝。

Thank you.

謝謝。

Wei Xiong, UBS.

瑞銀熊偉。

Thank you. Good morning, James, Jane, Cindy, and Michelle. Thank you for taking my question and congratulations on the very solid results. I want to follow up on our international business. So our international business has achieved another quarter of very solid growth. Could the management share if you have observed any increased competition in the Asian markets recently, and how does that impact your business? And also could management elaborate what are Trip.com's key competitive advantages against local and global peers in overseas markets? Thank you.

謝謝。早安，詹姆斯、珍、辛蒂和米歇爾。感謝您回答我的問題，並祝賀您取得了非常堅實的成果。我想跟進我們的國際業務。因此，我們的國際業務又實現了一個季度的穩健成長。管理階層能否分享一下最近您是否注意到亞洲市場的競爭加劇，以及這對您的業務有何影響？管理階層能否詳細說明 Trip.com 在海外市場相對於本地和全球同行的主要競爭優勢是什麼？謝謝。

Sure. As I said, given the ample growth opportunity, especially in the APAC market for all the travel players, firstly, I think the APAC still is currently the fastest growth region in the whole world. And secondly, the online penetration rate in this region is still relatively low, but there is a rapid shift from offline to online, as well as the mobile platform, which will benefit all the online players in this industry.

當然。正如我所說，鑑於充足的成長機會，特別是亞太市場對所有旅遊參與者而言，首先，我認為亞太地區目前仍然是全球成長最快的地區。其次，該地區的線上滲透率還相對較低，但線下向線上以及行動平台的轉變正在迅速推進，這將使該行業的所有線上參與者受益。

Trip.com aims to provide one-stop travel services, including not only the transportation but also accommodations, activities, and many more, primarily through our mobile apps. This approach offers travelers a unique and convenient experiences that would differentiate Trip.com from other players.

Trip.com 旨在透過我們的行動應用程式提供一站式旅行服務，不僅包括交通，還包括住宿、活動等。這種方法為旅客提供了獨特、便利的體驗，使 Trip.com 從其他競爭對手中脫穎而出。

We will also continue to focus on the product innovation, as well as the service qualities, to enhance the user experiences while making a necessary investment to increase our brand recognition in the relevant market. So far, we are very pleased with our strategy and execution.

我們也將持續注重產品創新和服務品質，以提升用戶體驗，同時進行必要的投資以提高我們在相關市場的品牌知名度。到目前為止，我們對我們的策略和執行非常滿意。

With regard to the differentiation or the selling point for the Trip.com business, firstly, we are one-stop shopping center in the travel industry. And secondly, we grow our business mainly through the mobile channels. And we already see very successful and high-percentage contribution from the mobile channels, which will help us to have a strong leverage, especially on the sales, marketing expenses in the longer-term period. And lastly, but not least, we are aiming to provide the best services in the travel industry to serve the local customers. Thank you.

關於Trip.com業務的差異化或賣點，第一，我們是旅遊業的一站式購物中心。其次，我們主要透過行動通路發展業務。我們已經看到行動通路取得了非常成功且高比例的貢獻，這將幫助我們獲得強大的槓桿作用，特別是在長期的銷售和行銷費用方面。最後，但並非最不重要的一點是，我們的目標是為當地客戶提供旅遊業最好的服務。謝謝。

Simon Cheung, Goldman Sachs.

高盛的 Simon Cheung。

Hi, management, thanks for taking my question. Just one quick question in relation to the margins, can't help to see that your margin continued to trend quite well. And in this particular quarter, it seems like your product development, as a percent of revenue, actually fallen quite sharply.

您好，管理層，感謝您回答我的問題。關於利潤率，我只想問一個簡單的問題，我發現你的利潤率繼續呈現良好的趨勢。在這個特定季度，看起來你們的產品開發佔收入的百分比實際上大幅下降了。

Now that you're obviously going to be investing a bit more on the AI, can you perhaps help us to understand and quantify what sort of investment you're going to be spending? And correspondingly, the second quarter -- second half, what sort of margin trend we should anticipate? Thanks a lot.

既然您顯然會在人工智慧上投入更多，您能否幫助我們了解並量化您將要花費的投資類型？相應地，我們應該預期第二季即下半年的利潤率趨勢是怎樣的？多謝。

Sure. Thank you. Generally, we expect our margin to follow the typical seasonal pattern. Q3 usually see the highest margin slightly above the Q2 levels, while the Q4 normally is the slowest season of the year. You may notice that we've increased or we invested in sales and marketing expenses in the Q2, which was in line with our expectations and consistent with our previous communications.

當然。謝謝。一般來說，我們預計我們的利潤率將遵循典型的季節性模式。第三季的最高利潤率通常略高於第二季的水平，而第四季通常是一年中最淡的季節。您可能注意到，我們在第二季度增加或投資了銷售和行銷費用，這符合我們的預期並與我們先前的溝通一致。

Due to the seasonality and shift in our revenue mix, we expect that the marketing expenses ratio to slightly increase in the upcoming quarters. However, it will still demonstrate significant efficiency gains compared with our pre-COVID levels. In the longer-term period, we expect it to enhance our marketing efficiencies across markets by prioritize direct traffic and cross-selling, as I said.

由於季節性和收入結構的變化，我們預計未來幾季的行銷費用率將略有上升。然而，與疫情之前的水平相比，其效率仍將顯著提高。正如我所說，從長遠來看，我們希望透過優先考慮直接流量和交叉銷售來提高我們在各個市場的行銷效率。

And over the next -- with regard to the general margin trends, over the next few years, we anticipate that our China business margin will benefit from the scalability of the business model and a favorable business mix, the revenue mix, particularly in the outbound travel and accommodations. Meanwhile, our overseas operations will remain in the investment as well as the expansion cycle.

就未來幾年的整體利潤率趨勢而言，我們預計中國業務的利潤率將受益於業務模式的可擴展性和有利的業務組合、收入組合，尤其是在出境旅遊和住宿領域。同時，我們的海外業務仍將處於投資和擴張週期。

The overall group margin will reflect this business mix. While in the very longer-term period, we do not foresee any structural limit for us to achieve the future profit margin, which we're comparable with our international peers. Thank you.

整個集團的利潤率將反映這一業務組合。而從長遠來看，我們預計不會有任何結構性限制我們實現未來的利潤率，我們的利潤率與國際同行相當。謝謝。

Thank you.

謝謝。

Jiong Shao, Barclays.

巴克萊銀行的邵炯（Jiong Shao）

Thank you for taking my question. It's great you are starting to use AI for your earnings call. You also mentioned some of the AI initiatives internally such as -- I think you mentioned Trip.Best and TripTrends. I was wondering if you can elaborate on exactly -- how do those things work from the sort of the operational perspective and also the related business impact from some of these AI initiatives? Thank you.

感謝您回答我的問題。您開始在收益電話會議中使用人工智慧，這真是太好了。您還提到了一些內部的人工智慧計劃，例如——我想您提到了 Trip.Best 和 TripTrends。我想知道您是否可以詳細說明——從營運角度來看這些事情是如何運作的，以及這些人工智慧計畫對相關業務的影響？謝謝。

Sure. Trip.Best and TripTrends are part of our innovative use of AI and are integral to our dynamic content strategy. We aim to drive consumer awareness and provide relevant information that makes trip planning easier and save time for our travelers. And Trip.Best offers curated list that help global travelers select the best experiences in the destinations including not only hotels, attractions, restaurants, as well as nightlife.

當然。Trip.Best 和 TripTrends 是我們創新使用人工智慧的一部分，也是我們動態內容策略不可或缺的一部分。我們的目標是提高消費者意識並提供相關訊息，讓旅行計劃更加輕鬆並為旅行者節省時間。Trip.Best 提供精選列表，幫助全球旅客選擇目的地最佳體驗，不僅包括飯店、景點、餐廳，還包括夜生活。

To date, the Trip.Best covers more than 190 countries and regions across 14 popular themes. Over 70% of Trip.com users have consulted Trip.Best with more than 80% citing it is helpful.

截至目前，Trip.Best已涵蓋14個熱門主題，涵蓋190多個國家和地區。超過70%的Trip.com用戶諮詢過Trip.Best，超過80%的用戶表示它很有幫助。

Travel partners featured in this list have seen significant improvements in traffic and revenue on our platform. TripTrends tracks popular travel topics and events, providing insight into current and future trends. It is tailored to user based in different locations and we have shared some interesting findings in our preprepared remarks.

此清單中的旅遊合作夥伴在我們平台上的流量和收入都有顯著的提升。TripTrends 追蹤熱門旅遊主題和事件，提供對當前和未來趨勢的洞察。它是針對不同地點的用戶量身定制的，我們在預先準備好的評論中分享了一些有趣的發現。

In addition to these two, we also introduced the AI-powered travel assistant Trip.Genie. Trip.Genie has continued to evolve with new features. For example, in the second quarter, the latest version allows friends to co-edit itineraries, making the trip planning process more convenient and enjoyable. While Trip.Genie is a complex tool with huge room for future improvement, it is already one of the leading travel assistant applications in the industry and we are pleased to observe that interactions with the Trip.Genie positively correlated with user loyalty and cross-selling ratios.

除此之外，我們也推出了人工智慧旅行助理Trip.Genie。 Trip.Genie 不斷發展，不斷推出新功能。例如第二季最新版本允許好友共同編輯行程，讓行程規劃過程更加方便愉快。雖然 Trip.Genie 是一個複雜的工具，未來還有很大的改進空間，但它已經是業內領先的旅行助理應用程式之一，我們很高興地看到與 Trip.Genie 的互動與用戶忠誠度和交叉銷售率呈正相關。

In addition to all these new products that powered by AI, we also continuously to improve our internal tools, for example, the AI-assisted instant message tool, which already significantly improved efficiencies for our call centers and, at the same time, improved the user experiences. So going forward, as James explained, we will continuously to invest in AI and to let AI help us to improve the user experience, and as well as to control and increase operational efficiencies for the company. Thank you.

除了所有這些由人工智慧驅動的新產品之外，我們還不斷改進我們的內部工具，例如人工智慧輔助的即時通訊工具，它已經顯著提高了我們呼叫中心的效率，同時也改善了用戶體驗。因此，正如詹姆斯所解釋的那樣，展望未來，我們將不斷投資人工智慧，讓人工智慧幫助我們改善用戶體驗，並控制和提高公司的營運效率。謝謝。

Thanks, super helpful.

謝謝，非常有幫助。

Ellie Jiang, Macquarie.

麥格理的 Ellie Jiang。

Good morning, management. Thanks for taking my question. I have a question on inbound. So could you elaborate on the opportunities in the China inbound travel market and how do we plan to further capture these market opportunities? Also, in terms of the total revenue contribution, can you also talk about the contribution of inbound travel to the entire Trip.com's brands overall business? Thank you.

早安，管理層。感謝您回答我的問題。我有一個關於入站的問題。那麼您能否詳細闡述中國入境旅遊市場的機會以及我們計劃如何進一步抓住這些市場機會？另外，從總收入貢獻來看，您能否談談入境遊對Trip.com整個品牌整體業務的貢獻？謝謝。

Sure. The inbound travel market to China represents a significant opportunity valued at RMB 1trillion level. We are pleased to see China addressing entry challenges for the foreign visitors, such as visa, payment, and Internet access, and we look forward to expanding our inbound business with industry partners.

當然。中國入境旅遊市場蘊藏著巨大商機，價值達兆元。我們很高興看到中國正在努力解決外國遊客入境的難題，例如簽證、支付、網路存取等，我們期待與產業合作夥伴一起擴大入境業務。

Trip.com is very well positioned to capitalize on these opportunities. First, our platform offers comprehensive travel information and highly competitive product and services through a convenient one-stop mobile app. And secondly, the rapidly expanding user base reflects the search in inbound travelers to China, attracting new users from key source in that market. Inbound hotel and air reservations on Trip.com platform grew about 200% year-over-year, and inbound travel now contributes over 25% to the Trip.com brand's overall business. Thank you.

Trip.com 非常有能力利用這些機會。首先，我們的平台透過便利的一站式行動應用程式提供全面的旅遊資訊和極具競爭力的產品和服務。其次，快速擴張的用戶群反映了中國入境旅客的搜尋需求，吸引了來自該市場主要來源的新用戶。Trip.com平台上的入境飯店和機票預訂量年增約200％，入境遊目前對Trip.com品牌整體業務的貢獻率超過25％。謝謝。

Parash Jain, HSBC.

Parash Jain，匯豐銀行。

Thank you for taking my question. Hi, James, Jane, Michelle. I have two if may, and one more strategic. In the past decade, we have seen that management on Trip was pretty active in terms of M&A, both domestic as well as international. Past few years have been washed out by COVID. What's the current dynamics or the opportunities in the M&A space, if you can share? And the second question is, with a steady-state margin profile now and a steady generation of cash flow, how should we think about the capital return policy going forward? Thank you.

感謝您回答我的問題。嗨，詹姆斯、簡、米歇爾。如果可以的話我有兩個，還有一個更具戰略意義。在過去十年中，我們看到 Trip 管理層在國內和國際併購方面非常活躍。過去幾年都被新冠病毒疫情沖走了。能分享一下目前併購領域的動態或機會嗎？第二個問題是，目前利潤率狀況穩定，現金流穩定，我們該如何考慮未來的資本回報政策？謝謝。

Sure. Yeah, we've been actively looking at -- always actively looking at all opportunities in the travel industry in the whole global market. However, I think, thanks to all the investments that we made in the past few years, and we already have the most valuable travel assets in the portfolio in the group. So now, the first priority for us is to maximize the synergies among different brands within the group and grow our business mainly through organic growth.

當然。是的，我們一直在積極尋找——始終積極尋找整個全球市場上旅遊業的所有機會。不過，我認為，由於過去幾年我們所做的所有投資，我們已經擁有集團投資組合中最有價值的旅遊資產。所以現在我們的首要任務是最大限度地發揮集團內不同品牌之間的協同作用，主要透過有機成長來發展我們的業務。

And second, for the shareholder returns, yes, we -- at the Trip.com Group, we manage our capital with long-term ownership mindset, focusing on four key priorities. The first, investment for the growth, our top priority, as we said in the previous questions. Given we have ample growth opportunity, especially in the global market, our top priority now is still building the sustainable competitive advantages and fostering our business growth.

第二，對於股東回報，是的，在攜程集團，我們以長期所有權的心態管理我們的資本，專注於四個關鍵優先事項。第一，正如我們在前面的問題中提到的，投資促進成長是我們的首要任務。鑑於我們擁有充足的成長機會，特別是在全球市場，我們現在的首要任務仍然是建立可持續的競爭優勢並促進業務成長。

And secondly, we practice disciplined cost management to achieve higher long-term returns. And certainly, we prudently manage leverage to maintain strategic flexibility and avoid concentrated maturities. And the fourth, the shareholder returns, we aim to provide consistent returns through either in the way of dividends or buybacks while manage our cash strategically. Thank you.

其次，我們實行嚴格的成本管理，以獲得更高的長期回報。當然，我們審慎管理槓桿，以保持策略靈活性，並避免集中到期。第四，股東回報，我們的目標是透過股利或回購的方式提供持續的回報，同時策略性地管理我們的現金。謝謝。

Thank you so much.

太感謝了。

Thank you. Thank you for the questions. This concludes our Q&A session. I will now hand the conference back to Michelle.

謝謝。感謝您的提問。我們的問答環節到此結束。現在我將會議交還給米歇爾。

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 2024 earnings call. Thank you and have a good day.

謝謝。感謝大家今天的參與。您可以在investors.trip.com上找到今天電話會議的記錄和網路直播。我們期待在 2024 年第三季財報電話會議上與您交談。謝謝您，祝您有美好的一天。

Thank you.

謝謝。

Thank you.

謝謝。

This concludes today's conference call. Thank you all for participating. You may now disconnect.

今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連線。