Tuniu Corp (TOUR) 2023 Q4 法說會逐字稿

Hello, and thank you for standing by for Tuniu's 2023 fourth quarter and full year earnings conference call. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Mary.

您好，感謝您出席途牛2023年第四季及全年財報電話會議。（操作員指示）今天的會議正在錄音。如果您有任何異議，您可以此時斷開連接。現在我想將會議交給今天電話會議的主持人投資者關係總監瑪麗。

Thank you, and welcome to our 2023 Fourth Quarter and Full Year Earnings Conference Call. Joining me on the call today are Dunde Yu, Tuniu's Founder, Chairman, and Chief Executive Officer; and Anqiang Chen, Tuni's Financial Controller.

謝謝，歡迎參加我們的 2023 年第四季和全年財報電話會議。今天和我一起參加電話會議的是途牛創辦人、董事長兼執行長餘敦德；和途尼財務總監陳安強。

For today's agenda, management will discuss business updates, operation highlights and financial performance for the fourth quarter and fiscal year 2023. Before I continue, I refer you to our safe harbor statement in the earnings press release, which applies to this call. As we will make forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.

在今天的議程中，管理層將討論第四季度和 2023 財年的業務更新、營運亮點和財務表現。在繼續之前，我請您參閱收益新聞稿中的安全港聲明，該聲明適用於本次電話會議。因為我們將做出前瞻性陳述。此外，本次電話會議也討論了某些非公認會計準則財務措施。請參閱我們的收益報告，其中包含非公認會計準則衡量標準與最直接可比較的公認會計準則衡量標準的調節表。

Finally, please note that unless otherwise stated, all figures mentioned during this conference call are RMB. I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Dunde Yu

最後請注意，除非另有說明，本次電話會議中提到的所有數字均為人民幣。我現在想把電話轉給我們的創辦人、董事長兼執行長餘敦德

Thank you Mary. Good day, everyone, welcome to our fourth quarter and the full year 2023 earnings conference call. To you delivered a strong performance in the fourth quarter of 2023, with net revenues growing year-over-year by 266%, including a 1,377% increase in revenues from packaged tours. Gross profit increased by 512% year-over-year, and we achieved non-GAAP profitability for the third consecutive quarter.

謝謝瑪麗。大家好，歡迎參加我們的第四季和 2023 年全年財報電話會議。To you 在 2023 年第四季表現強勁，淨收入年增 266%，其中跟團旅遊收入成長 1,377%。毛利年增 512%，我們連續第三個季度實現非 GAAP 獲利。

2023 was a significant year of recovery for the tower industry following the pandemic. With the robust, rebound in the domestic travel market, we saw a dramatic increase in tower demand during China's national holidays and summer occassion. Amid the emergence of many popular destinations and attractions. In terms of up bound travel, the number of newly opened up destination countries increased from 20 at the beginning of the year to 138 by the end of the fourth quarter.

2023年是鐵塔業疫情後復甦的重要一年。隨著國內旅遊市場的強勁反彈，中國國慶節和暑期期間塔樓需求大幅增加。許多熱門目的地和景點的出現。出遊方面，新開放目的地國家由年初的20個增至第四季末的138個。

Countries like Thailand and Singapore introduced the favorable visa policies helping to boost the recovery of the outbound travel market. We are pleased with our performance for the full year 2023. Our net revenues increased by 140% year-over-year. Revenues from taxes towards increased by 374% and gross profit increased by 228%.

泰國、新加坡等國推出簽證優惠政策，協助出境旅遊市場復甦。我們對 2023 年全年的表現感到滿意。我們的淨收入年增 140%。稅收收入成長374%，毛利成長228%。

We also achieved our first full year of profitability on a non-GAAP basis since the pandemic. With non-GAAP net income approaching RMB51 million. The highest since our listing. In 2023 (inaudible) power demand was relieved with the relaxation of travel restrictions. However, the tourism supply chain, especially the supply chain relating to the outperformance travel market was impacted during the pandemic. In response, our priority was to recover and rebuild the supply chain to promote, provide products to meet customer demand.

自大流行以來，我們也實現了非公認會計準則基礎上的第一個全年獲利。非美國通用會計準則淨利接近人民幣5,100萬元。是我們上市以來的最高水準。2023 年（聽不清楚），隨著旅遊限制的放鬆，電力需求得到緩解。然而，旅遊供應鏈，尤其是與表現優異的旅遊市場相關的供應鏈，在疫情期間受到了影響。對此，我們的首要任務是恢復和重建供應鏈，以促進、提供滿足客戶需求的產品。

Now(inaudible) experience in the industry and our continuous effort to maintain relationships during the pandemic. Our procurement and product teams have been able to rapidly rebuild our portfolio, our products by sourcing high-quality resources from hotel, airline and local tour operators. For example, as one of two new star destination, the Maldives was among the first batch of countries to open up for outbound travel as of last February.

現在（聽不清楚）行業經驗以及我們在大流行期間維持關係的持續努力。我們的採購和產品團隊能夠透過從飯店、航空公司和當地旅行社採購優質資源來快速重建我們的產品組合和產品。例如，馬爾地夫作為兩個新的明星旅遊目的地之一，截至去年2月已成為首批開放出境旅遊的國家之一。

As one of our earliest launch the outbound travel product in the first quarter of last year, Maldives towards sales tools have already surpassed RMB 10 million in sales volume. So, news call country competitive need is our commitment to providing high-quality products and services to our customers. Amid some strong demand post the pandemic, we continue to adhere to our strict standards for product [acumen] and the development.

作為我們去年第一季最早推出的出境旅遊產品之一，馬爾地夫的銷售工具銷售額已經超過1,000萬元。所以，新聞呼喚國家競爭的需要，是我們為客戶提供高品質產品和服務的承諾。在疫情後的強勁需求中，我們繼續堅持嚴格的產品[敏銳]和開發標準。

And increasingly raised the bar in terms of product and service quality. For instance, our in-house new-to-world products, we require our products of personnel to work crude slate as the definitions. And the actively coordinate with local tour operators are resource procurement. Tour guidance management and quality control. Additionally, we conduct quality inspections during organize toward to prometly, identify and resolve issues.

並不斷提高產品和服務品質的標準。比方說我們內部的新產品，我們要求我們的產品人員以粗石板作為定義。而與當地旅行社的積極協調就是資源採購。導遊管理和品質控制。此外，我們在組織過程中進行品質檢查，以確保問題得到及時發現和解決。

As a result, the average customer satisfaction rate for to our new tool products has been continuously increasing from slightly over 90% to 97%, and it reached over 98% during the summer of 2023. As at the same time, we've(inaudible) the customer experience by addressing pain points during the fees. Beginning last year, [new tour] introduced a zero shopping itinerary is showing no raises to shopping venues throughout the entire journey, which have been very well received.

因此，我們的新工具產品的平均客戶滿意度不斷提高，從略高於 90% 到 97%，並在 2023 年夏季達到 98% 以上。同時，我們（聽不清楚）透過解決收費期間的痛點來改善客戶體驗。從去年開始，【新遊】推出的零購物行程，全程購物場所不加價，深受好評。

For instance, our zero shopping tour to Bali was launched in December last year. And nearly 40 towards was conducted as of the end of this February. With that infection rate of 100%. Additionally since 2023, new tour have commenced offering exclusive services, where dedicated service personnel establishes a recap prior to the team to ensure seamless support throughout the journey. Furthermore, we established a more collaboration with suppliers to increase the diversity of our products.

例如我們去年12月就推出了峇裡島零購物之旅。截至今年2月底，已開展近40次。感染率100%。此外，自 2023 年以來，新之旅開始提供專屬服務，專門的服務人員會在團隊之前進行回顧，以確保整個旅程提供無縫支援。此外，我們與供應商建立了更多的合作，以增加我們產品的多樣性。

To ensure customer satisfaction, we maintain our focus on quality control, so implementing strict supplier selection process. The second fraction rate for product launches has reached 90%, and we have introduced a new mission done. We are proud of receiving highly negative reviews are prominently removed from our offering. We also handle customer complaints about the fire products in the same way as our in-house product.

為了確保客戶滿意度，我們始終注重品質控制，因此實施嚴格的供應商選擇流程。第二次產品投放率達到了90%，我們推出了新的任務。我們很自豪收到高度負面的評論，這些評論已從我們的產品中明顯刪除。我們也以與我們內部產品相同的方式處理客戶對消防產品的投訴。

That is to stay away(inaudible) problem resolution and injector can transition between customers on behalf of our suppliers. Additionally, we provide maximum assistance to our partners by acquiring by granting them access to our inventory management systems, to improve their efficiency. We also offer support and advice for product development and the improvements for our partners collectively driving to provide customers with more and better products.

也就是說，遠離（聽不清楚）問題解決，注射器可以代表我們的供應商在客戶之間進行轉換。此外，我們還透過授予合作夥伴存取我們的庫存管理系統的權限，為他們提供最大程度的幫助，以提高他們的效率。我們也為我們的合作夥伴提供產品開發和改進方面的支援和建議，共同努力為客戶提供更多更好的產品。

Looking now to our sales efforts. As you know, our professional customer service team has always been one or two new core advantages. After the pandemic, we didn't directly expand customer service staff in the face of increased demand. Is that we utilize automation technology to help our customer service team improve efficiency. We also focus on talent development, particularly for overseas destinations to have our staff become more familiar with the destinations and products and enhance work efficiency and service quality.

現在來看看我們的銷售工作。如您所知，我們專業的客戶服務團隊一直是新的一兩個核心優勢。疫情過後，面對需求的增加，我們並沒有直接擴充客服人員。就是我們利用自動化技術來幫助我們的客戶服務團隊提高效率。我們也注重人才培養，特別是海外目的地，讓我們的員工更熟悉目的地和產品，提高工作效率和服務品質。

In 2023, the number of our customer service staff increased by over 50% year-over-year, while our net revenues increased by 114%. In addition to individual customers, we also saw corporate clients offering services such as the growth capital for companies and as of now, how all of our corporate employees. In the fourth quarter with the arrival of the year and the season, Company Annual Meeting [team] building activities and incentive location becoming increasingly popular.

2023年，我們的客戶服務人員數量較去年同期成長超過50%，淨收入成長114%。除了個人客戶之外，我們還看到企業客戶提供諸如公司成長資本之類的服務，以及到目前為止，我們所有企業員工的服務。第四季度，隨著年末旺季的到來，公司年會【團隊】建設活動及激勵地點日漸火爆。

Leading to a small pick incorporate decline tower demand. In the fourth quarter of 2023, the GMV from corporate clients increased by over 40% compare to the previous quarter. Now streaming emerged as a new sales channel for us following the pandemic. In 2023, the total payment volume from auto news live streaming channels exceeded [RMB1 million] and our live streaming channels also achieved profitability for the full year.

導致塔架需求小幅下降。2023年第四季，企業客戶GMV較上季成長超過40%。現在，疫情過後，串流媒體成為我們新的銷售管道。2023年，汽車新聞直播頻道總支付額突破【100萬元】，直播頻道也實現全年獲利。

On the supply side, we received the doing and use that much a recommendation based on comprehensive evaluation, our business volume and the product quality. Additionally, we established our own agency to further develop and promote our accumulated live streaming capability and experiences. We have secured a partnership with more than 100 the external influences with to lower fan base exceeding RMB 4million. Moreover, in response to market demand this year, we will further strengthen the sales and promotion, however upon travel products.

在供應方面，我們根據綜合評估、我們的業務量和產品質量，收到了這麼多的使用和使用建議。此外，我們也成立了自己的代理商，以進一步發展和推廣我們累積的直播能力和經驗。我們與100多家外部影響力達成合作關係，粉絲數超過人民幣400萬。另外，今年針對市場需求，我們將進一步加強旅遊產品的銷售與推廣。

As well as high quality in-house products such as new tour. We are live streaming channel. Also, we continue to enhance the application, our system automation allows streaming activities such as online product verification to lower cost and improve live streaming channel profitability. In 2023, we also strengthened our offline channels by establishing more offline stores. We opened more than 150 offline stores, primarily located in second and third tier cities, as well as [crowd] provincial capitals. This stores expand the sales channels for our in-house products and help to promote the two new brands. We will continue to establish and develop our offline stores this year.

以及高品質的內部產品，例如新旅遊。我們是直播頻道。此外，我們不斷增強應用程序，我們的系統自動化允許線上產品驗證等串流媒體活動，以降低成本並提高直播管道的盈利能力。2023年，我們也透過建立更多線下商店來加強線下通路。我們開設了150多家線下門市，主要分佈在二、三線城市以及省會城市。該商店擴大了我們自有產品的銷售管道，並有助於推廣兩個新品牌。今年我們將繼續建立和發展線下門市。

In terms of technology, we are committed to leveraging towards to replace the simple, repetitive manual labor to liberate our employees to participate in more compact and creative work. Thereby enhancing our overall operating efficiency. In 2023, we have completed the application of system automation across various sales process, such as marketing, booking and order processing and have started to integrate it into supply chain management.

在科技方面，我們致力於用科技取代簡單、重複的體力勞動，解放員工參與更緊湊、更具創意的工作。從而提高我們的整體營運效率。2023年，我們已完成系統自動化在行銷、預訂和訂單處理等各個銷售流程中的應用，並開始將其整合到供應鏈管理中。

We are sharing the benefits brought by automation in inventory pricing and marketing management with our partner. This year, we will also focus on the application of technology in production and services such as utilizing dynamic packaging systems to generate self-guided tours that enrich our product offerings.

我們正在與合作夥伴分享庫存定價和行銷管理自動化帶來的好處。今年，我們也將重點放在科技在生產和服務中的應用，例如利用動態包裝系統來產生自助遊，以豐富我們的產品組合。

In conclusion, the tower industry saw substantial recovery last year and with the positive growth momentum continued into the beginning of 2024. The stream fast toward however boom this year was remarkable. We remain of this mistake about the development of the tower market this year, especially with the resumption of flights, relaxation of visa policies and the further enhance the supply chain, which still offers significant growth opportunities for the outbound travel market.

綜上所述，鐵塔產業去年大幅復甦，並將積極成長動能延續至2024年初。然而，今年的繁榮勢頭卻非常驚人。我們對今年塔樓市場的發展仍然存在這樣的誤解，特別是隨著航班的恢復、簽證政策的放寬以及供應鏈的進一步完善，這仍然為出境游市場提供了重要的成長機會。

Outbound travel is one of two news core advantages, and we will seize the opportunity to provide more and better products and achieve further revenue recovery. At the same time, we will continue to implement our strict cost control measures to enhance our profitability.

出境遊是新聞兩大核心優勢之一，我們將抓住機遇，提供更多更好的產品，並實現收入進一步恢復。同時，我們將繼續實施嚴格的成本控制措施，以增強獲利能力。

I will now turn the call over to Anqiang Chen, our Financial Controller, for the financial highlights.

我現在將電話轉給我們的財務總監陳安強，了解財務要點。

Thank you, Dunde. Hello, everyone. Now I'll walk you through our fourth quarter and fiscal year 2023 financial results in greater detail. Please note that all the monetary amounts are in RMB unless otherwise stated. You can find the US dollar equivalents of the numbers in our earnings release.

謝謝你，鄧德。大家好。現在，我將向您詳細介紹我們第四季和 2023 財年的財務表現。請注意，除非另有說明，所有金額均以人民幣為單位。您可以在我們的財報中找到這些數字的美元等值金額。

Starting from the fourth quarter of 2023, net revenues were RMB99.9 million in the fourth quarter of 2023, representing a year-over-year increase of 266% from the corresponding period in 2022. The increase was primarily due to the growth of packaged tour and travel market recovers. Revenue from packaged tours were up 1,377% year-over-year to RMB73.4 million and accounted for 73% of total net revenues for the quarter.

從2023年第四季開始，2023年第四季淨營收為人民幣9,990萬元，較2022年同期年增266%。這一增長主要是由於跟團遊的成長和旅遊市場的復甦。跟團旅遊收入年增 1,377% 至人民幣 7,340 萬元，佔本季總淨收入的 73%。

The increase was primarily due to the growth of (inaudible). Other revenues were up 19% year- over-year to RMB26.6 million and accounted for 27% of our total net revenues. The increase was primarily due to the growth in commission fees received from other travel-related products. Gross profit for the fourth quarter of 2023 was RMB74.6 million, up 512% year-over-year. Operating expenses for the fourth quarter of 2023 were RMB198 million, up 509% year-over-year. The increase was primarily due to the impairment of goodwill of RMB114.7 million recorded in fourth quarter of 2023.

該增長主要是由於（聽不清楚）。其他收入年增 19% 至 2,660 萬元，占我們總淨收入的 27%。這一增長主要是由於其他旅遊相關產品收取的佣金增長。2023年第四季毛利為人民幣7,460萬元，較去年同期成長512%。2023年第四季營運費用為人民幣1.98億元，年增509%。這一增加主要是由於2023年第四季記錄的商譽減損人民幣1.147億元。

Research and product development expenses for the fourth quarter of 2023 were RMB10.4 million, down 5% year-over-year. The decrease was primarily due to the decrease in research and product development, personnel-related expenses. Research and product development expenses as a percentage of net revenues were 10%, down from 40% during the same period last year.

2023年第四季研究及產品開發費用為人民幣1,040萬元，較去年同期下降5%。減少的主要原因是研究和產品開發、人員相關費用的減少。研究和產品開發費用佔淨收入的比例為 10%，低於去年同期的 40%。

Sales and marketing expenses for the fourth quarter of 2023 were RMB33.2 million, up 45% year-over-year. The increase was primarily due to the increase in promotion expenses. Sales and marketing expenses as a percentage of net revenues were 33%, down from 84% during the same period last year.

2023年第四季銷售及行銷費用為人民幣3,320萬元，較去年同期成長45%。增加的主要原因是促銷費用增加。銷售和行銷費用佔淨收入的比例為 33%，低於去年同期的 84%。

General and administrative expenses for the fourth quarter of 2023 were RMB42.1 million, up 27% year-over-year. The increase was primarily due to the impairment of property and equipment net recorded in the fourth quarter of 2023. General and administrative expenses as a percentage of net revenues were 42%, down from 121% during the same period last year.

2023年第四季管理費用為人民幣4,210萬元，較去年同期成長27%。這一增長主要是由於 2023 年第四季度記錄的財產和設備減損淨額。一般及管理費用佔淨收入的比例為 42%，低於去年同期的 121%。

Net loss attributable to ordinary shareholders of Tuniu corporation was RMB132.3 million in the fourth quarter of 2023. Non-GAAP net income attributable to ordinary shareholders of Tuniu corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets, impairment of goodwill and impairment of property and equipment net was RMB6.2 million in the fourth quarter of 2023. As of December 30, 2023, the company had cash and cash equivalents, restricted cash and short-term investments of RMB1.2 billion. Capital expenditures for the fourth quarter of 2023 were RMB1.3 million.

2023年第四季途牛公司普通股股東應佔淨虧損為1.323億元。2023年第四季度，歸屬於途牛公司普通股股東的非公認會計準則淨利潤（不包括股權激勵費用、收購無形資產攤銷、商譽減損以及財產及設備減損淨額）為人民幣620萬元。截至2023年12月30日，本公司擁有現金及現金等價物、限制性現金及短期投資人民幣12億元。2023年第四季的資本支出為人民幣130萬元。

Now moving to a full year 2023 results. In 2023, net revenues were RMB441.3 million, representing a 140% year-over-year increase. The increase was primarily due to the growth of packaged tour and travel market recovers. Revenues from packaged tours were up 374% year-over-year to RMB333.4 million, and accounted for 76% of our total net revenues in 2023. The increase was primarily due to the growth of an (inaudible) tour.

現在轉向 2023 年全年業績。2023年，淨收入為人民幣4.413億元，年增140%。這一增長主要是由於跟團遊的成長和旅遊市場的復甦。跟團旅遊收入較去年同期成長374%至人民幣3.334億元，佔2023年總淨收入的76%。這一增長主要是由於（聽不清楚）巡演的增長。

Other revenue was down 5% year-over-year to RMB107.9 million and accounted for 24% of our total net revenues in 2023. The decrease was primarily due to the decrease in revenue generated from financial services. Gross profit was RMB293.7 million in 2023, up 228% year-over-year. Operating expenses were RMB395.6 million in 2023, up 32% year-over-year.

其他收入年減 5% 至人民幣 1.079 億元，佔 2023 年淨收入總額的 24%。減少的主要原因是金融服務收入減少。2023年毛利為人民幣2.937億元，較去年成長228%。2023年營業費用為人民幣3.956億元，較去年成長32%。

Research and product development expenses were RMB57 million in 2023, up 12% year-over-year. The increase was primarily due to the increase in research and product development, personnel-related expenses.

2023年研究及產品開發費用為人民幣5,700萬元，較去年同期成長12%。增加的主要原因是研究和產品開發、人員相關費用的增加。

Research and product development expenses as a percentage of net revenues were 13% in 2023, down from 28% of the previous year. Sales and marketing expenses were RMB117.7 million in 2023, up 14% year- over-year. The increase was primarily due to the increasing promotion expenses. Sales and marketing expenses as a percentage of net revenues were 27% in 2023, decreasing from 56% of the previous year. General and administrative expenses were RMB113.2 million in 2023, up 4% year-over-year. The increase was primarily due to the impairment of property and equipment net recorded in 2023.

2023 年，研究和產品開發費用佔淨收入的比例為 13%，低於前一年的 28%。2023年銷售及行銷費用為人民幣1.177億元，年增14%。增加的主要原因是促銷費用增加。2023 年，銷售和行銷費用佔淨收入的比例為 27%，低於前一年的 56%。2023年管理費用為人民幣113.2百萬元，較去年同期成長4%。這一增長主要是由於 2023 年記錄的財產和設備減損淨額所致。

General and administrative expenses as a percentage of net revenue were 26% in 2023, decreasing from 59% of the previous year. Net loss attributable to ordinary shareholders of two new completion was RMB99.3 million in 2023. Non-GAAP net income attributable to ordinary shareholders of two new corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets, impairment of goodwill and impairment of property and equipment, net was RMB52.6 million in 2023.

2023 年，一般及管理費用佔淨收入的百分比為 26%，低於前一年的 59%。2023年，兩項新竣工項目歸屬於普通股股東的淨虧損為9,930萬元人民幣。2023 年，歸屬於兩家新公司普通股股東的非公認會計準則淨利潤（不包括股權激勵費用、收購無形資產攤銷、商譽減值以及財產和設備減值）淨額為人民幣5,260 萬元。

Cash flow generated from operations for 2023 was RMB253.3 million. Capital expenditures were RMB10.2 million in 2023. For the first quarter of 2024, two new events will generate RMB101.1 million to RMB107.4 million of net revenues, which represents a 60% to 70% increase year-over-year compared with net revenues in the corresponding period in 2023.

2023年經營產生的現金流量為人民幣2.533億元。2023年資本支出為人民幣1,020萬元。2024年第一季，兩項新賽事將產生人民幣1.011億元至人民幣1.074億元的淨收入，較2023年同期淨收入年增60%至70%。

Please note that these forecasts reflect on new current and preliminary review on the inventory and it's operations, which is subject to change. Thank you for listening. We are now ready for your questions, operator?

請注意，這些預測反映了對庫存及其營運的最新當前和初步審查，可能會發生變化。感謝您的聆聽。我們現在準備好回答您的問題了嗎，接線員？

(Operator Instructions)

（操作員說明）

Rita Lee, a private investor.

麗塔李，私人投資者。

Thank you, operator. Hi, management. First of all, congratulations on achieving a profit per year. Generally speaking, the financial performance is good, but for the fourth quarter, we see a GAAP net loss. Could you please specify the core cost saves?

謝謝你，接線生。嗨，管理層。首先恭喜您每年獲利。總體而言，財務業績良好，但第四季度我們看到 GAAP 淨虧損。能否具體說明節省的核心成本？

And another question about this year's outlook. Can you share any strategic plan in both business and finance? Thank you.

還有一個關於今年前景的問題。能分享一下商業和財務方面的策略計劃嗎？謝謝。

Thank you for the questions. For the fourth quarter last year, we achieved our non-GAAP profitability for the third consecutive quarter is also the first time since our late 10s that we achieved profitability in the fourth quarter, which is off season. We are on the GAAP basis. We still incur net loss this quarter. The main difference between the GAAP and non-GAAP results is that we recorded over RMB100 million of goodwill impairment in the GAAP results.

謝謝你的提問。去年第四季度，我們連續第三個季度實現了非公認會計準則盈利，這也是我們自10多歲以來首次在淡季的第四季度實現盈利。我們以公認會計準則為基礎。本季我們仍然出現淨虧損。GAAP 和非 GAAP 業績的主要差異在於，我們在 GAAP 業績中記錄了超過人民幣 1 億元的商譽減損。

This is the financial treatment based on assets we require to buy [US] GAAP. We conducted a settlement at year end comparing the company's net assets with a market value. When the market value is lower impairment, we are being triggered. However, given our rapid business recovery, improved profitability, as well as positive operating cash flow for the full year, we believe our share price is undervalued. So, we proposed share buyback plan of repurchasing up to USD10 million worth of shares.

這是基於我們購買[美國] GAAP 所需資產的財務處理方法。我們在年底進行了結算，將公司的淨資產與市場價值進行了比較。當市值較低時減值，我們就會被觸發。然而，鑑於我們業務的快速復甦、獲利能力的提高以及全年正的營運現金流，我們認為我們的股價被低估。因此，我們提出了回購最多1000萬美元股票的股票回購計畫。

We have faith in the continuous growth of both our industry and our company, and we want to deliver this confidence to the public, while announcing our past year achievements, as well as New Year resolutions.

我們對產業和公司的持續發展充滿信心，我們希望在宣布我們過去一年的成就以及新年決心的同時，向公眾傳遞這種信心。

Turning to the plans for 2024. First layer, we all continue to focus on the development of our in-house product (inaudible) new high-quality in-house products, our protective mode and differentiate to new from us from platform OTA. Moreover for two new branded products such as new tour, we have the pricing power. So, new tour contribute directly to both our revenues and profits.

轉向 2024 年的計劃。第一層，我們繼續專注於開發我們的內部產品（聽不清楚）新的高品質內部產品、我們的保護模式以及與我們平台OTA的新產品的差異化。而且新遊等兩個新品牌產品，我們有定價權。因此，新的巡演直接為我們的收入和利潤做出了貢獻。

This year, we continue to increase both SKUs and revenue contribution of new tours. For example, we develop (inaudible)and private group tour in new tour series. Covering for current demand trends. This towards you already contain two to eight people and are more flexible than traditional of 94s. For example, customers in the same group may choose different airlines and even hotel. And the price of this tour is lower than customized tours.

今年，我們繼續增加新遊的SKU和收入貢獻。例如，我們在新的旅遊系列中開發（聽不清楚）和私人團體旅遊。涵蓋當前的需求趨勢。這對你來說已經容納了兩到八個人，並且比傳統的 94 人更靈活。例如，同一團體的客戶可能會選擇不同的航空公司甚至飯店。而且這個旅遊的價格比客製化旅遊低。

These tours are viewed by young people and family. Secondly, we will continue to expand our sales channels such as live streaming and offline stores. These channels are good consignment to traditional online channels such as app and website. Live streaming is popular among young people, while offline stores can better serve senior citizens. For the more, compare with the traditional online channel, live streaming and offline stores provide a more actions between customers and our tour advisors.

這些旅遊的受眾是年輕人和家庭。其次，我們將持續拓展直播、線下門市等銷售管道。這些管道是對傳統線上管道（例如應用程式和網站）的良好寄售。直播受年輕人歡迎，而線下門市可以更好地服務老年人。更多的是，與傳統的線上管道相比，直播和線下商店為客戶和我們的導遊之間提供了更多的互動。

Creating more sales opportunities. So, for live streaming will consolidate our positioning employee at both [cells] and live streaming this year introducing more and better products to the market. We are also trying to expand to more platform, such as Little Red Book and our rental selection. For offline stores, we will continue to explore opportunities in lower tier cities.

創造更多銷售機會。因此，今年直播將鞏固我們在兩個單元和直播的定位員工，向市場推出更多更好的產品。我們也在嘗試擴展到更多的平台，例如小紅書和我們的租賃選擇。線下門市方面，我們將繼續探索低線城市的機會。

Lastly, to better serve our customers, we will improve our services for other tower related products such as air tickets and hotels. For example, we provided no funding (inaudible) to any air tickets, which simplifies the booking process, making that experience add to new more convenient and enjoyable. We also restart our special offer air ticket channel. Providing discount tickets for our customers. For hotel will increase the level of direct procurement to enhance the competitiveness of our hotels.

最後，為了更好地服務客戶，我們將改善機票、飯店等其他鐵塔相關產品的服務。例如，我們不為任何機票提供資金（聽不清楚），這簡化了預訂流程，使體驗變得更加方便和愉快。我們也重新啟動了特價機票管道。為顧客提供優惠門票。對於酒店來說，將加大直接採購的水平，以增強我們酒店的競爭力。

In terms of financial performance. In the first quarter, we expect a 60% to 70% year-over-year increase in our net revenues. We are trying to maintain a higher than industry average growth rate for the year. We are also continue to increase our profitability and create more weight values to our shareholders. Thank you.

在財務表現方面。第一季度，我們預計淨收入將年增 60% 至 70%。我們正在努力保持今年高於行業平均的成長率。我們也將持續提高獲利能力，為股東創造更多的價值。謝謝。

(Operator Instructions) There are no further questions at this time. I will now turn the call over to Tuniu's Director of Investor Relations, Mary for closing remarks.

（操作員說明） 目前沒有其他問題。現在我將把電話轉給途牛投資者關係總監 Mary 做總結發言。

Once again, thank you for joining us today. Please don't hesitate to contact us, if you have any further questions. Thank you for your continued support, and we'll look forward to speaking with you in the coming months.

再次感謝您今天加入我們。如果您有任何其他問題，請隨時與我們聯繫。感謝您一直以來的支持，我們期待在未來幾個月與您交談。

Thank you for your participation in today's conference. This concludes the presentation, and you may now disconnect.

感謝您參加今天的會議。演示到此結束，您現在可以斷開連接。