Full Truck Alliance Co Ltd (YMM) 2023 Q4 法說會逐字稿

Ladies and gentlemen, good day, and welcome to Full Truck Alliance's fourth-quarter and fiscal-year 2023 earnings conference call. At this time, I would like to turn the conference over to Mao Mao, Head of Investor Relations. Please go ahead.

女士們、先生們，美好的一天，歡迎參加全卡車聯盟第四季和 2023 財年收益電話會議。這次我想把會議交給投資人關係部主管毛毛。請繼續。

Thank you, operator. Please note that today's discussion will contain forward-looking statements relating to the company's future performance, which are intended to qualify for the Safe Harbor from liability, as established by the US Private Securities Litigation Reform Act.Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and discussion.A general discussion of the risk factors that could affect FTA's business and financial results is included in certain filings of the company with the SEC. The company does not undertake any obligation to update this forward-looking information, except as required by law.During today's call, management will also discuss certain non-GAAP financial measures, for comparison purposes only. For a definition of non-GAAP financial measures, and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today.Joining us today on the call from FTA's senior management are Mr. Hui Zhang, our Founder, Chairman and CEO; and Mr. Simon Cai, our CFO. Management will begin with prepared remarks, and the call will conclude with a Q&A session. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on FTA's investor relations website at ir.fulltruckalliance.com.

謝謝你，接線生。請注意，今天的討論將包含與公司未來業績相關的前瞻性陳述，這些陳述旨在符合美國私人證券訴訟改革法案規定的免責安全港的資格。此類陳述不是對未來業績的保證，受到某些風險和不確定性、假設和其他因素的影響。其中一些風險超出了公司的控制範圍，可能導致實際結果與今天的新聞稿和討論中提到的結果大不相同。公司的某些文件中包含了對可能影響FTA 業務和財務業績的風險因素的一般性討論與美國證券交易委員會。除法律要求外，該公司不承擔更新此前瞻性資訊的任何義務。在今天的電話會議中，管理層還將討論某些非公認會計準則財務指標，僅供比較之用。有關非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務業績的調整表，請參閱今天早些時候發布的收益報告。今天參加 FTA 高級管理層電話會議的是我們的創始人張輝先生，董事長兼首席執行官；和我們的財務長蔡西蒙先生。管理階層將以準備好的發言開始，電話會議將以問答環節結束。提醒一下，本次會議正在錄製中。此外，FTA 投資者關係網站 ir.fulltruckalliance.com 也將提供本次電話會議的網路直播重播。

I will now turn the call over to our Founder, Chairman, and CEO, Mr. Zhang. Please go ahead, sir.

我現在將電話轉給我們的創辦人、董事長兼執行長張先生。請繼續，先生。

(spoken in foreign language)

（用外語說）

(interpreted) Hello, everyone. Thank you for joining us today on our fourth quarter and fiscal year of 2023 earnings conference call. We are thrilled to report another quarter of data results for the fourth quarter of 2023, closing out the year on a strong note. Despite the challenges and opportunities present in the external environment, we have adeptly navigated the prevailing trend of efficiency enhancement and cost reduction in the freight industry.

（譯）大家好。感謝您今天參加我們的 2023 財年第四季財報電話會議。我們很高興報告 2023 年第四季的另一個季度數據結果，以強勁的業績結束這一年。儘管外部環境挑戰與機會並存，我們還是很好地掌握了貨運業提效降本的大趨勢。

Embracing the digital transformation of China's road freight sector, we have positioned ourselves as the leader in online, digital, and intelligent logistics solutions, effectively replacing traditional offline logistics with our core cost saving advantage. Through continuous enhancements to our product features and operating efficiency, we successfully deepened among direct shippers. We are committed to becoming the preferred shipping gateway for tens of millions of small- and medium-sized shippers, empowering and prices with greater logistics competitiveness and improved profitability.

擁抱中國道路貨運產業的數位轉型，我們將自己定位為線上化、數位化、智慧化物流解決方案的領導者，以節省成本為核心優勢，有效取代傳統線下物流。透過不斷提升產品功能和營運效率，我們成功深化了直托商關係。我們致力於成為數千萬中小貨主的首選航運門戶，以更強的物流競爭力和更高的獲利能力賦能和價格。

(spoken in foreign language)

（用外語說）

(interpreted) In the fourth quarter, we witnessed steady improvements across key operational metrics, sending you the base product operation, transportation capacity supply and one-stop services. Our average shipper MAU reached an all-time high of 2.24 million, representing nearly 19% year-over-year growth. Notably, the scale of direct shippers continue to increase during the fourth quarter, with the proportion of fulfilled orders surpassing 45% for the first half, reflecting a significant shift towards more efficient and cost-effective online channels.

（解讀）第四季度，各項關鍵營運指標穩定提升，為您帶來基礎產品營運、運力供應、一站式服務。我們的平均出貨人月活躍用戶數達到 224 萬的歷史新高，較去年同期成長近 19%。值得注意的是，第四季直運商規模持續成長，上半年訂單履行率超過45%，體現出向更高效、更具成本效益的線上管道的重大轉變。

For product operations, we further refine and streamline the shipping and efficient fulfillment product features for new direct shippers, facilitating the onboarding and the driving robust growth. With respect to trucker supply, we upgraded our tiered trucker rating system, consistently optimizing transaction efficiency= through an incentive-driven offering and precise matching, while continuously expanding the supply of truckers and [aggravating] user stickiness.

在產品營運方面，我們進一步細化和簡化新直托商的運輸和高效履行產品功能，促進其入職並推動強勁成長。在卡車司機供給方面，我們升級了卡車司機分級評級體系，透過激勵驅動和精準匹配，持續優化交易效率=，同時不斷擴大卡車司機供給，增強用戶黏性。

Additionally, for our one-stop service, our value-added services such as freight brokerage service, credit solutions and insurance, energy services and etc. saw continued penetration, synergizing with our transportation business to enhance user satisfaction and stickiness. These achievements further boosted our network effect growth momentum, catalyzing the road freight market shift from traditional offline model to an innovative, efficient and a digitalized future.

此外，在一站式服務方面，貨運經紀服務、信貸解決方案及保險、能源服務等加值服務持續滲透，與運輸業務協同提升用戶滿意度與黏性。這些成果進一步增強了我們的網路效應成長動力，推動公路貨運市場從傳統的線下模式轉向創新、高效、數位化的未來。

(spoken in foreign language)

（用外語說）

(interpreted) Our strong business growth translated into exception financial performance, with revenue growing by 25.3% year over year to RMB2.41 billion in the fourth quarter. Non-GAAP adjusted net income increased by 64.4% year over year to RMB733 million. Going forward, we remain committed to optimizing our revenue mix and enhancing monetization efficiency to create a greater value for our shareholders.

（解讀）我們強勁的業務成長轉化為卓越的財務業績，第四季營收年增25.3%至人民幣24.1億元。非美國通用會計準則調整後淨利年增64.4%至人民幣7.33億元。展望未來，我們將持續致力於優化收入結構、提高變現效率，為股東創造更大價值。

In February 2024, the fourth meeting of the central commission for our financial and economic affairs emphasized the importance of effectively reducing logistics costs throughout society. As logistics serves as the backbone of the real economy, it continues to garner, increased attention and support within the strategic landscape. By leveraging digitalized logistics offerings, we are confident in leveraging digital logistics to further enhance logistics efficiency and the reduce costs, creating greater value for both industry and our users.

2024年2月，中央財經委員會第四次會議強調，要實際降低全社會物流成本。物流作為實體經濟的支柱，不斷受到策略佈局的重視與支持。透過數位化物流產品，我們有信心利用數位化物流進一步提升物流效率、降低成本，為產業和用戶創造更大價值。

(spoken in foreign language)

（用外語說）

(interpreted) Thank you. Let me pass the call over to our CFO, Simon, who will provide an update on our fourth-quarter business progress and the financial results.

（翻譯）謝謝。讓我將電話轉接給我們的財務長西蒙，他將提供有關我們第四季度業務進展和財務業績的最新資訊。

Thank you, Mr. Zhang, and thanks, everyone, for making time to join our earnings conference call today. I will now provide an overview of our operational highlights and financial performance for the fourth quarter of 2023.

謝謝張先生，也謝謝大家抽空參加我們今天的財報電話會議。我現在將概述我們 2023 年第四季的營運亮點和財務表現。

We concluded the year with strong operational and financial results in 2024. Our fulfilled orders experienced a remarkable 40.4% year-over-year growth, driving quarterly average daily fulfilled orders to an all-time high. Despite the impact of the adverse weather conditions, fourth-quarter order growth again outpaced the overall freight market, propelled by sustained scale expansion and increased activity of both shipper and trucker users. We set a new record in fulfillment rate at approximately 32% in the fourth quarter, an increase of more than eight percentage points year over year and more than three percentage points quarter over quarter.

我們在 2024 年以強勁的營運和財務業績結束了這一年。我們的履行訂單量年增 40.4%，季度日均履行訂單量創歷史新高。儘管受到不利天氣條件的影響，在托運人和卡車用戶的持續規模擴張和活動增加的推動下，第四季度訂單增長再次超過了整體貨運市場。第四季度，我們的履約率創下約 32% 的新紀錄，較去年同期成長超過 8 個百分點，較上季成長超過 3 個百分點。

From a supply-demand perspective, the quarters increased supply of truckers, improved matching efficiency across various transaction types, including negotiated orders, tap-and-go orders entrusted shipment and including long haul, full truckload, lessened truckload and short haul by distance range.

從供需角度來看，本季度卡車司機供應有所增加，各類交易的撮合效率有所提高，包括協議訂單、委託發貨的即付即走訂單，以及長途、整車、零擔、短途等不同距離範圍的運輸。 。

Operationally, we continue to make progress with our tier trucker operations strategy during the quarter. Initiatives, such as our Saving Package 2.0 and truckers deposits helped strengthened our tiered truck rating management and income, fulfillment quality of truckers, thereby boosting retention among high-frequency active truckers.

在營運方面，本季我們的一級卡車司機營運策略持續取得進展。儲蓄包2.0和卡車司機押金等措施幫助加強了卡車分級管理和卡車司機的收入、履約質量，從而提高了高頻活躍卡車司機的保留率。

In terms of all our structure, we sustained the growth momentum of direct shippers from the third quarter, with direct shippers contributing more than 45% of total fulfilled orders in the fourth quarter. We expect direct shippers order contribution will continue to grow as their penetration increases leading to an additional improvements in our platforms, overall order fulfillment efficiency.

從整體結構來看，我們從第三季開始就保持了直發貨人的成長勢頭，第四季度直發貨人訂單量佔總訂單量的比重超過45%。我們預計，隨著直接托運人滲透率的提高，直接托運人的訂單貢獻將持續成長，從而進一步改善我們的平台和整體訂單履行效率。

Regarding our user base, our average shipper MAUs reached a historic high of 2.24 million in the fourth quarter, up 18.7% year over year and 4.9% sequentially. This increase was primarily driven by rapid growth of our non-member low-frequency direct shippers. Meanwhile, our RMB1688 and RMB688 members shippers activity levels remained essentially stable year over year, given all types of shippers, whether it's professional shipper or direct shipper, have incentives looking for efficient shipping channels to lower their logistics cost.

就我們的用戶基礎而言，我們的平均發貨人月活躍用戶數在第四季度達到 224 萬的歷史新高，年增 18.7%，環比增長 4.9%。這一成長主要是由我們的非會員低頻直接托運人的快速成長所推動的。同時，我們的RMB1688和RMB688會員貨主活躍水準年比基本保持穩定，因為各類貨主，無論是專業貨主還是直接貨主，都有動力尋找高效的運輸管道以降低物流成本。

We expect this trend to continue with robust growth in our shipper user base through the year of 2024, primary from low and medium frequency direct shippers. Our platform, strong and growing network effect, drove parallel growth in both our trucker base and activity during the quarter. For example, the number of active truckers fulfilling orders through our platform over the past 12 months rose to 3.88 million.

我們預計這一趨勢將持續到 2024 年，我們的托運人用戶群將強勁成長，主要來自低頻和中頻直接托運人。我們的平台以及強大且不斷增長的網路效應推動了本季卡車司機數量和活動的平行成長。例如，過去 12 個月透過我們的平台履行訂單的活躍卡車司機數量上升至 388 萬人。

In addition, we've maintained our ship member 12-months rolling retention rate as well as our next month's retention of truckers who responded to orders on a sequential basis. In the fourth quarter of 2023, revenues from our online transaction commission amounted to RMB644.9 million, up 44% year over year.

此外，我們還保持了船舶成員 12 個月的滾動保留率，以及下個月連續回應訂單的卡車司機的保留率。2023年第四季度，我們的線上交易佣金收入為人民幣6.449億元，年增44%。

This growth was fueled by a solid expansion in a number of fulfilled orders and the heightened commission penetration. Our commission model currently covered more than 59% of fulfilled orders and generated an average commission per transaction of RMB23.7 during the quarter. It is important to note that historically, we did not include revenues from our interest-ready commission model in online transaction commission revenues. Therefore, interest of these transactions were also included when calculating our commission penetration, resulting in an underestimation of overall commission model coverage.

這一增長是由已履行訂單數量的穩健增長和佣金滲透率的提高所推動的。我們的佣金模式目前涵蓋了超過 59% 的已履行訂單，本季每筆交易的平均佣金為 23.7 元。值得注意的是，從歷史上看，我們並沒有將利息就緒佣金模式的收入納入線上交易佣金收入。因此，在計算我們的佣金滲透率時，也包括了這些交易的利息，導致整體佣金模型覆蓋範圍被低估。

Moving forward, starting from 2024, we will rename our transaction commission revenue stream to transaction services, which consists of all monetization from truckers relating to freight matching services, including the revenue generated from our interest study business that was previously classified under the freight listing and value-added services in order to better reflect the company's latest development status and the businesses nature of our revenues.

展望未來，從2024 年開始，我們將把交易佣金收入流重命名為交易服務，其中包括與貨運匹配服務相關的卡車司機的所有貨幣化，包括先前分類在貨運清單下的興趣研究業務產生的收入和增值服務是為了更好地反映公司的最新發展狀況和收入的業務性質。

Next, a brief update on our share repurchase program. From November of 2023 to March 6, 2024, we repurchased approximately 7.9 million ADS shares totaling approximately USD52.7 million. Since we announced the program, we have repurchased a total of around 30.7 million ADS shares from the open market with a total value of approximately USD200 million.

接下來，簡要介紹我們的股票回購計畫。從2023年11月至2024年3月6日，我們回購了約790萬股ADS股票，總計約5,270萬美元。自宣布該計劃以來，我們已從公開市場回購了總計約 3,070 萬股 A​​DS 股票，總價值約 2 億美元。

Now our 2023 fourth-quarter and year-end financial results. In interest of time, I'll be presenting some abbreviated highlights only. We encourage you to refer to our press release issued earlier today for complete details.

現在是我們 2023 年第四季和年底的財務業績。由於時間關係，我將只介紹一些簡短的要點。我們鼓勵您參閱我們今天早些時候發布的新聞稿以了解完整的詳細資訊。

So the revenues for full-year 2023 RMB8.4 billion, representing a 25.3% increase year over year. Net revenues for the fourth quarter were RMB2.4 billion, representing a 25.3% increase year over year. Net revenues from freight matching services, including service fees from freight brokerage models, membership fees from listing models and commissions from allied transaction services for RMB7,048.8 million for the full year of 2023, up 24.6% from 2022, primarily due to the rapid growth in transaction commissions as well as growing revenues from our freight brokerage service.

因此2023年全年營收為人民幣84億元，年增25.3%。第四季淨收入為人民幣24億元，較去年同期成長25.3%。2023年全年貨運撮合服務淨收入（包括貨運經紀模式服務費、掛牌模式會員費及聯合交易服務佣金）為人民幣70.488億元，較2022年增長24.6%，主要是由於快速增長交易佣金以及貨運經紀服務收入的成長。

Revenues from freight brokerage service reached RMB3.9 billion for 2023, up up 16.5% year over year. For the fourth quarter, net revenue increased by 19.2% to RMB1.1 billion, primarily driven by an increase in transaction volume due to robust user demand. Revenue from freight listing service were RMB929.4 million for the full year, up 9% year over year and rose 10.4% year over year in the fourth quarter to reach RMB246.2 million, primarily due to a growing number of total paying members. Revenues from transaction commissions among the RMB2.2 billion in 2023, representing a 52.6% increase year over year.

2023年貨運經紀服務收入達人民幣39億元，較去年成長16.5%。第四季淨收入成長19.2%至人民幣11億元，主要是由於用戶需求強勁導致交易量增加。全年貨運掛牌服務收入為人民幣9.294億元，較去年同期成長9%，第四季年增10.4%至人民幣2.462億元，主要由於付費會員總數不斷增加。2023年交易佣金收入將達到人民幣22億元，較去年同期成長52.6%。

For the fourth quarter last year, net revenues amounted to RMB644.8 million, representing a 44% increase year over year, primarily driven by a strong order volume growth as well as higher per order transaction commission. Revenues from value-added services were RMB1.4 billion in 2023, representing a 28.8% increase year over year. For the fourth quarter, net revenues increased to RMB392,2 million, representing a 27.3% increase year over year, mainly attributable to an increase in revenues from credit solutions and other value-added services.

去年第四季度，淨收入達人民幣6.448億元，年增44%，主要是由於訂單量強勁增長以及每筆訂單交易佣金的提高。2023年增值服務收入為人民幣14億元，較去年同期成長28.8%。第四季淨收入增至人民幣3.922億元，年增27.3%，主要得益於信貸解決方案和其他增值服務收入的增加。

Fourth quarter cost of revenues was RMB1,152.3 million compared with RMB951.8 million in the prior year period. This increase was primarily due to an increase in the VAT-related tax surcharges and other tax costs and net of tax refunds from government authorities. These tax-related costs, net of refunds totaled RMB1,015.3 million, representing an increase of 18.4% from RMB857.4 million in the same period of 2022, primarily due to the increase -- due to the continued growth in transaction activities involving our freight brokerage service.

第四季營收成本為 11.523 億元，去年同期為 9.518 億元。這一增長主要是由於與增值稅相關的稅收附加費和其他稅收成本的增加以及政府當局退稅的淨額所致。這些稅務相關成本（扣除退款）總計人民幣 10.153 億元，較 2022 年同期的人民幣 8.574 億元增長 18.4%，主要是由於涉及我們的交易活動持續增長所致。貨運經紀服務。

Our sales and marketing expenses in the fourth quarter were RMB421 million compared with RMB281.1 million in the prior year period. The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions. General and administrative expenses in the fourth quarter were RMB266 million compared with RMB408.2 million in the prior year period. The decrease was primarily due to lower share-based compensation expenses and professional service fees. R&D expenses in the fourth quarter were RMB255.3 million compared with RMB250.2 million in the prior year period.

我們第四季的銷售和行銷費用為人民幣 4.21 億元，而去年同期為 2.811 億元。這一增長主要是由於獲取用戶的廣告和行銷費用增加所致。第四季一般及行政費用為人民幣2.66億元，去年同期為人民幣4.082億元。減少的主要原因是股權激勵費用和專業服務費減少。第四季研發費用為人民幣2.553億元，去年同期為人民幣2.502億元。

The increase was primarily due to higher share-based compensation expenses and increased investment in technology infrastructure, partially offset by a decrease in salary and benefit expenses. Income from operations in the fourth quarter were RMB250.8 million compared with a loss from operation of RMB5.3 million in the same period of 2022. Net income in the fourth quarter was RMB588.3 million, an increase of 200.6% from RMB195.7 million in the same period of 2022.

這一增長主要是由於股權激勵費用增加以及技術基礎設施投資增加，但部分被工資和福利費用的減少所抵消。第四季營業收入為人民幣2.508億元，2022年同期營業虧損為人民幣530萬元。第四季淨利為人民幣5.883億元，較2022年同期的人民幣1.957億元成長200.6%。

Under non-GAAP measures, our adjusted operating income in the fourth quarter was RMB398.8 million, an increase of 60.6% from RMB248.4 million in the same period of 2022. Our adjusted net income in the fourth quarter was RMB733 million, an increase of 64.4% from RMB445.8 million in the same period of 2022. Basic and diluted net income per ADS were RMB0.58 in the fourth quarter compared with RMB0.18 in the same period of 2022. Non-GAAP adjusted basic net income per ADS were RMB0.7 in the fourth quarter compared with RMB0.42 in the same period of 2022.

根據非公認會計原則衡量，我們第四季調整後的營業收入為人民幣3.988億元，比2022年同期的人民幣2.484億元成長60.6%。第四季調整後淨利為人民幣7.33億元，較2022年同期的人民幣4.458億元成長64.4%。第四季每股美國存託股基本及稀釋淨利為人民幣0.58元，2022年同期為人民幣0.18元。第四季非美國通用會計準則調整後每股美國存託股基本淨利為人民幣 0.7 元，而 2022 年同期為人民幣 0.42 元。

Non-GAAP adjusted diluted net income per ADS were RMB0.69 in the fourth quarter compared with RMB0.42 in the same period of 2022. As of December 31, 2023, our cash and cash equivalents, restricted cash, short-term investments, long-term time deposits and wealth management products totaled RMB27.6 billion compared with RMB26.3 billion as of December 31, 2022.

第四季非美國通用會計準則調整後攤薄每股美國存託股淨利為人民幣 0.69 元，而 2022 年同期為人民幣 0.42 元。截至2023年12月31日，我們的現金及現金等價物、限制性現金、短期投資、長期定期存款及理財產品總計人民幣276億元，而截至2022年12月31日為人民幣263億元。

For our first-quarter 2024 business outlook, we expect our total net revenues to be between RMB2.11 billion and RMB2.16 billion, representing a year-over-year growth rate of approximately 23.9% to 27.1%. And this forecast reflects our current and preliminary views on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

對於我們2024年第一季的業務展望，我們預計總淨收入將在人民幣21.1億元至人民幣21.6億元之間，年成長率約為23.9%至27.1%。這項預測反映了我們對市場和營運狀況的當前和初步看法，這些看法可能會發生變化，並且截至本報告發布之日無法以合理的準確性進行預測。

That concludes our prepared remarks. We will now like to open the call to Q&A. Operator, please go ahead.

我們準備好的演講到此結束。我們現在要開始問答電話。接線員，請繼續。

(Operator Instructions)

（操作員說明）

Ronald Keung, Goldman Sachs.

姜羅納德，高盛。

(spoken in foreign language) Thank you, management and -- for the sharing. I want to ask about fulfillment rate, that we've seen that record fulfillment rate of 32% in the fourth quarter. What are the key drivers behind and what's the year-on-year increase and the sequential increase as well? And what is your expectation for fulfillment rate for 2024? Thank you.

（用外語發言）謝謝管理階層和 -- 的分享。我想問一下履行率，我們在第四季度看到了創紀錄的 32% 的履行率。背後的關鍵驅動因素是什麼？年成長和環比成長是多少？您對 2024 年的履行率有何預期？謝謝。

Thank you, Ronald. In this quarter, we have seen a substantial improvement in the freight matching efficiency, which can be attributed to the rapid expansion of our user base on both ends and the scale effects generated as a result. So with more active shippers on the platform, we attract new trucker registration, ensuring a sufficient supply of transportation capacity to meet the diverse needs of shippers quickly.

謝謝你，羅納德。本季度，我們看到貨運匹配效率有了大幅提升，這得益於我們兩端用戶規模的快速擴大以及由此產生的規模效應。隨著平台上貨主的活躍，我們吸引了新的卡車司機註冊，確保了充足的運力供應，快速滿足貨主的多樣化需求。

This dynamic cycle, again, lead to an influx of newly registered small and medium business owners, specifically the significant improvements in fulfillment rates in fourth quarter was driven by a number of positive factors. Firstly, the average trucker daily active user who are responding to others, increased by approximately 13% year over year in the quarter, resulting in an increase in effective supply on the trucker side, further balancing supply and demand and therefore increasing the probability of successful matches.

這種動態循環再次導致新註冊的中小型企業主湧入，特別是第四季度履行率的顯著提高是由許多積極因素推動的。首先，本季卡車司機平均每日活躍用戶回覆量年增約13%，導致卡車司機端有效供給增加，進一步平衡供需，提高成功機率火柴。

And secondly, ongoing optimization of the shipper structure also led to an improvement in matching capability. The contribution of fulfilled orders from direct shippers increased by three percentage points year over year to over 45%. In housing, the overall quality of order listing and the certainty of order fulfillment.

其次，貨主結構的持續優化也帶動了配對能力的提升。直運訂單佔比年增3個百分點，達45%以上。在住房方面，訂單掛牌的整體品質和訂單履行的確定性。

Another key factor is the continued improvement of the platform's pricing capabilities. For big database and measurement, the platform can set reasonable recommended prices that are better aligned with the current market conditions and further increasing the likelihood of transaction completion. And additionally, we have continued to create remarkable value adds to our users during the fulfillment process, such as disputes resolution and user rating, all of which have also contributed to the increase in fulfillment rates.

另一個關鍵因素是平台定價能力的持續提升。對於大資料庫和計量，平台可以設定更符合當前市場狀況的合理推薦價格，進一步增加交易完成的可能性。此外，我們在履行過程中繼續為用戶創造顯著的附加價值，例如爭議解決和用戶評分，所有這些也都有助於履行率的提高。

Looking to the coming year, we will continue to attract more shippers and truckers by utilizing a multilateral market approach to create and match more supply and demand, thereby maintaining a better balance between users on both sides.

展望未來的一年，我們將繼續利用多邊市場的方式吸引更多的貨主和卡車司機，創造和匹配更多的供需，從而在雙方用戶之間保持更好的平衡。

We also continue to encourage shippers to utilize transaction types such as entrusted shipment and tap and go, which more truckers are willing to respond to, while consistently optimizing the product function and improving data efficiency to drive even higher fulfillment rates. Also, as the user structure continuously shift towards direct shippers, we also anticipated further improvement in the fulfillment rate. Thank you.

我們也持續鼓勵貨主採用委託出貨、拍拍即走等更多卡車司機願意回應的交易方式，同時不斷優化產品功能和提高數據效率，以推動更高的履約率。此外，隨著使用者結構不斷向直運商轉變，我們也預期履約率將進一步提高。謝謝。

Eddy Wang, Morgan Stanley.

艾迪王，摩根士丹利。

(spoken in foreign language) Thank you, management for taking my question. My question is regarding the fulfilled orders. We noticed that there is a 40% year over year of the fulfillment orders -- fulfilled orders in the fourth quarter. And for the full year last year, it is around 33% year over year. So this is significantly higher than the growth of the broad logistic market. So what's the major driver behind the strong growth and what's your expectation for the auto growth -- value growth in 2024? Thank you.

（用外語發言）謝謝管理階層提出我的問題。我的問題是關於已履行的訂單。我們注意到，第四季的履行訂單量年增了 40%。而去年全年，年增約33%。所以這明顯高於整個物流市場的成長。那麼，強勁成長背後的主要推動力是什麼？您對 2024 年汽車成長（價值成長）的預期是什麼？謝謝。

Yes. Thank you, Eddy. Things -- since last year, the online penetration of the freight matching industry has shown very consistent growth. Our platform has maintained strong order volume growth over the past year and mainly benefiting from the continued increase of new shippers, improved activity level of existing users and continued the improvement in matching efficiency as a result of operational strategy optimization.

是的。謝謝你，艾迪。事情——去年以來，貨運匹配行業的線上滲透率呈現非常持續的成長。過去一年平台訂單量保持強勁增長，主要受益於新發貨人的持續增加、現有用戶活躍度的提升以及營運策略優化帶來的撮合效率持續提升。

In the fourth quarter, we sustained our holistic user acquisition efforts across various channels, including app store, information streams and SCM, among others. Additionally, our leading network effect brought us a large number of user -- new user registration through natural traffic. As of the end of December, we had an average of around 20,000 new shippers and 10,000 new truckers registering on our platform every day.

第四季度，我們持續在應用程式商店、資訊流、SCM等多種管道進行全面的使用者獲取工作。此外，我們領先的網路效應為我們帶來了大量的用戶——透過自然流量註冊的新用戶。截至12月底，我們平台平均每天約有20,000名新托運人和10,000名新卡車司機註冊。

Looking ahead to the coming year, we will continue to invest in branding and improve user acquisitions, user -- improve user acquisition efficiency by further exploring innovative user acquisition channels such as increasing offline truck stickers, advertisement and promoting alignment program. At the same time, we'll optimize the conversion of registered users to active users through a series of effective operational tools.

展望來年，我們將持續在品牌建立上投入，提升獲客效率，透過進一步探索增加線下車貼、廣告、推廣對接計畫等創新獲客管道，提升獲客效率。同時，我們將透過一系列有效的營運工具，優化註冊用戶向活躍用戶的轉換。

Also, this quarter brought more than just the growth of long-haul business, with our ongoing product functionality and operational efficiency optimizations, the less-than-truckload orders matched through our platform also grew rapidly in the past quarter. We believe that the online penetration rate of LTL remains considerably low at the moment, indicating there's still huge market opportunity to be unlocked.

此外，本季帶來的不僅是長途業務的成長，隨著我們不斷的產品功能和營運效率優化，透過我們平台匹配的零擔訂單在上個季度也快速成長。我們認為，目前零擔的線上滲透率仍然相當低，顯示仍有巨大的市場機會有待釋放。

As we look out into 2024, we will see new opportunities for growth as the trend toward direct shippers and LTL transactions continue to intensify. We anticipate continued high growth in our total fulfillment orders, not solely confined to the FTL market. Additionally, we anticipate making significant strides in new markets such as LTL and capitalizing on emerging opportunities. Thank you.

展望 2024 年，隨著直接托運人和零擔交易趨勢的持續加強，我們將看到新的成長機會。我們預計我們的履行訂單總量將持續高速成長，而不僅限於 FTL 市場。此外，我們預計將在零擔等新市場取得重大進展，並利用新興機會。謝謝。

Thank you.

謝謝。

Charlie Chen, China Renaissance.

陳查理，華興資本。

(spoken in foreign language) Could you please provide me with an update on site listing services, specifically the trend in the number of subscribing shippers, not members during the fourth quarter? It seems that the revenue growth of freight lifting has been slower compared to the fast growth of monthly active shippers. Could you please explain the main reason behind the growth rate discrepancy and provide us with an estimate of the expected membership growth for 2024? Thank you.

（用外語發言）您能否向我提供網站列表服務的最新情況，特別是第四季度訂閱托運人（而非會員）數量的趨勢？與每月活躍貨主的快速成長相比，貨運起重的收入成長似乎較慢。您能否解釋一下成長率差異背後的主要原因，並為我們提供 2024 年預期會員成長的估計？謝謝。

Thank you. The number of shipper members remain largely stable in the fourth quarter with approximately 790,000 existing subscribing members as of December, a steady increase from last quarter end. Our shipper members have demonstrated strong retention and engagement with a 12-month rolling retention rate of over 80% since 2023.

謝謝。第四季托運人會員數量基本保持穩定，截至 12 月現有訂閱會員數量約 79 萬，較上季末穩定成長。我們的托運人會員表現出了強大的保留率和參與度，自 2023 年以來 12 個月的滾動保留率超過 80%。

The reason membership growth has been primarily driven by two factors. Firstly, we have already achieved a high penetration rate among professional shippers, and we expect a number of shipper members from this segment to remain relatively stable in the future.

會員成長的原因主要有兩個因素。首先，我們在專業托運人中已經實現了較高的滲透率，我們預計該細分市場的托運人成員數量未來將保持相對穩定。

Secondly, we have observed majority of the new shippers are low and medium frequency users and the number of orders included in our RMB688 memberships exceeded their needs. In response, our operation teams is actively formulating product strategies and exploring the development of packages that are more suitable for low frequency direct shippers.

其次，我們觀察到新增的發貨人大部分是中低頻用戶，我們的688元會員包含的訂單數量超出了他們的需求。對此，我們的營運團隊正在積極制定產品策略，探索開發更適合低頻直運商的套餐。

In addition, although direct shipper members contributes less revenue from our proof perspective, there are specific characters such as willing to accept higher freight rate and demonstrate a better fulfillment rate, provide us with a greater potential for cross-selling with online transaction services and value-added products.

此外，雖然從我們的證據來看，直接托運人會員貢獻的收入較少，但有一些特定的特徵，例如願意接受更高的運費並表現出更好的履行率，為我們提供了更大的與線上交易服務和價值交叉銷售的潛力-添加的產品。

So in the long run, direct shippers will not only serve as the primary catalyst for future freight listing revenue growth, but will also present growth opportunities across other segments of our business.

因此，從長遠來看，直接托運人不僅將成為未來貨運掛牌收入成長的主要催化劑，而且還將為我們業務的其他部門提供成長機會。

Jiulu Li, CICC.

李九路，中金公司。

(spoken in foreign language) My first question is about the commission strategy. So what are the overall commission strategy for 2024? And in particular, what is your plan for commission rate and the commission coverage improvement in 2024?

（外語）我的第一個問題是關於佣金策略。那麼2024年的整體佣金策略是什麼呢？特別是，您在 2024 年改善佣金率和佣金覆蓋範圍的計劃是什麼？

Thank you, Jiulu. The substantial increase in our commission revenue in the past quarter was fueled by the rapid growth rate of the platform's overall orders. The number of commission orders rose by 41% year over year and nearly 10% from the third quarter. From an operational level this quarter, we will continue to prioritize growth in users now the volume rather than just expanding to additional cities under the commission model. By the end of 2023, our commission model had been successfully rolled out in 204 cities.

謝謝你，九鹿。上一季我們佣金收入的大幅成長是由平台整體訂單的快速成長所推動的。委託訂單數量較去年同期成長41%，較上季成長近10%。從本季的營運層面來看，我們將繼續優先考慮用戶數量的成長，而不是僅僅在佣金模式下擴展到更多城市。截至2023年底，我們的佣金模式已在204個城市成功推廣。

In the meantime, we have also stressed test higher commission parameters in randomly selected cities and verify its viability. So enter into 2024, we will remain -- we will maintain our prudent approach business for our transactions service business. In addition, we will continue to enhance our value of our transaction services to users through ongoing product functionality improvement. For instance, we recently launched our (inaudible) RD&E Saving Package 2.0 product for truckers, which includes various privileges and protection features for those who subscribed.

同時，我們也強調在隨機選擇的城市中測試更高的佣金參數並驗證其可行性。因此，進入 2024 年，我們將繼續保持交易服務業務的謹慎態度。此外，我們將透過持續的產品功能改進，不斷提升交易服務對用戶的價值。例如，我們最近為卡車司機推出了（聽不清楚）RD&E Saving Package 2.0 產品，其中包括為訂閱者提供的各種特權和保護功能。

And truckers who purchased the Saving Package 2.0 will also receive discounts on future commissions as well as a bonus order points, which they can redeem for additional benefits such as expedited deposit refund.

購買 Saving Package 2.0 的卡車司機還將獲得未來佣金折扣以及獎金訂單積分，他們可以兌換額外的福利，例如快速押金退款。

From a long-term perspective, we believe that our current commission rates are very conservative and there is still ample room to boost our commission revenues in the future. And looking ahead into 2024, as the platform's network effects strengthens and users' reliance on our platform deepens, we expect that year-over-year commission revenue growth will remain strong and potentially surpassing the growth rate that we achieved in the past year.

從長遠來看，我們認為目前的佣金率非常保守，未來仍有足夠的空間來提高我們的佣金收入。展望2024年，隨著平台網路效應的增強以及用戶對平台依賴的加深，我們預計佣金收入同比增長將保持強勁，並有可能超過我們去年實現的增長率。

(spoken in foreign language) My second question is that non-GAAP sales and marketing expenses increased by 50.6% year over year in the fourth quarter, outpacing revenue growth for the same period. What are the main reasons for the high growth in sales and marketing expenses in the quarter? How do you expect the sales and marketing expenses to trend in 2024? Thanks.

（用外語發言）我的第二個問題是，第四季非美國通用會計準則銷售和行銷費用年增50.6%，超過同期營收成長。本季銷售和行銷費用高成長的主要原因是什麼？您預計 2024 年銷售和行銷費用的趨勢如何？謝謝。

Thank you. The high growth rate of non-GAAP sales and marketing expenses in fourth quarter was primarily due to the increase of investment in marketing to acquire new users, both through online and offline channels, as well as our brand promotion to increase our brand awareness. Online, we mainly advertised through app source, information streams and search engine marketing, among other values. And offline, we primarily acquire users to truck stickers and advertising and our field marketing teams.

謝謝。第四季度非公認會計準則銷售和行銷費用的高成長率主要是由於透過線上和線下管道增加了行銷投資以獲取新用戶，以及我們為提高品牌知名度而進行的品牌推廣。在網路上，我們主要透過應用程式來源、資訊流和搜尋引擎行銷等方式進行廣告。在線下，我們主要透過卡車貼紙和廣告以及我們的現場行銷團隊來獲取用戶。

Moving into the coming year, we will continue to employ a very active user acquisition strategy to grow our user base and optimize our use of structure. Our overall user acquisition strategy will continue to attract shippers and truckers to our platform via a combination of online and offline channels driving (technical difficulty) here. In the longer run, we anticipate a continued increase in sales and marketing expenses aligned with the expansion of new business ventures.

進入新的一年，我們將繼續採用非常積極的用戶獲取策略來擴大我們的用戶群並優化我們的使用結構。我們的整體用戶獲取策略將繼續透過線上和線下管道結合的方式吸引托運人和卡車司機來到我們的平台（技術難度）。從長遠來看，我們預計銷售和行銷費用將隨著新業務的擴張而持續增加。

However, as our revenue quickly scale up and especially as we optimize commission penetration and improve -- further improved operating leverage, sales and marketing expenses will gradually decline as a percentage of total net revenues.

然而，隨著我們的收入迅速擴大，特別是隨著我們優化佣金滲透率並進一步提高營運槓桿，銷售和行銷費用佔總淨收入的百分比將逐漸下降。

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想將會議轉交管理層發表閉幕詞。

Again, thank you once again for joining us today. If you have any further questions, please feel free to contact us at Full Truck Alliance directly or TPG Investor Relations. Our contact information for IR in both China and the US can be found in today's press release. Have a good day. Bye-bye

再次感謝您今天加入我們。如果您還有任何疑問，請隨時直接聯繫滿卡車聯盟或 TPG 投資者關係部。您可以在今天的新聞稿中找到我們在中國和美國的投資者關係聯絡資訊。祝你有美好的一天。再見

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。