Tuniu Corp. Sponsored ADR Class A Aktie

Hello, and thank you for standing by for Tuniu's 2026 First Quarter 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.

Thank you, Drew, and welcome to our 2026 first quarter earnings conference call. Joining me on the call today are Donald Yu, Tuniu's Founder, Chairman and Chief Executive Officer; and Anqiang Chen, Tuniu's Financial Controller. For today's agenda, management will discuss business updates, operation highlights and financial performance for the first quarter of 2026.

Before we 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. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB.

I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Yu.

Thank you, Mary. Good day, everyone. Welcome to our first quarter 2026 earnings conference call. The travel industry maintained solid growth momentum in the first quarter of 2026, supported in part by the longest Chinese New Year holiday on record with both domestic and outbound travel market seeing stable growth.

In the first quarter, our net revenues increased by 13% year-over-year. At the same time, we achieved non-GAAP profitability for the fifth consecutive quarter. This year, we will continue to strengthen both our supply chain capabilities and the sales channel development. Supported by the company's strength in products and industry insights, we aim to further enhance our travel resource base and business partnerships. We will also continue to leverage technology tools to improve operational efficiency and deliver high-quality products and services to a broader customer base.

Next, I will go through our core strategic initiatives in more detail. On the supply side, we will continue to expand our supplier network across areas such as car rentals, overseas hotels and the destination experiences with the aim of further broadening our product offering. Also, we will integrate demand for both Tuniu and our partners to further strengthen the advantages of our centralized procurement while maintaining product quality and price competitiveness.

Last year, we added connecting flight solutions to our outbound travel products, expanding departure coverage and serving more travelers from lower-tier cities. This year, we are extending our connecting flight solutions to domestic travel products, offering customers more flexible travel arrangements. For certain Niu Tour products, we provide travelers departing from different cities across China with integrated flight solutions.

In the event of delays to connecting flights, we will assist customers in completing the remaining segments of their journeys at no additional cost. High-quality products continue to play an important role in attracting our customers and partners. In line with this, Niu Tour has been one of our core high-quality organized tour products, supported by a relatively loyal customer base.

To meet evolving customer demand, Niu Tour products have expanded into long-haul and more complex destinations, including Africa and South America. This year, we continued to introduce new premium outbound Niu Tour products for experienced travelers, such as North America multi-destination itinerary covering the U.S., Canada and Mexico as well as South America and Caucasus tours, which have been well received with many repeat customers.

In terms of the domestic travel market, we see that customer demand is gradually shifting from traditional sightseeing towards more culture and experience-oriented travel. In response, we have upgraded our organized tour products through introducing more in-depth itineraries, focused on single destinations. These products reduce the number of stops within an itinerary, focus on core destinations and selected sightseeing attractions and provide travelers with more time for exploration and local experiences.

To further enhance the travel experience, many of these in-depth products are offered in small group and private group tour format. Certain Niu Tour products also feature experienced senior tour guides to provide in-depth commentary for travelers. We have seen that the number of self-guided travelers has continued to increase. To address the changing needs of this segment, we expanded our Hotel + X offerings with hotels at the core component.

To support this, we have strengthened direct sourcing of resort hotels and increased procurement of other travel-related products to broaden our offering. In addition, supported by AI and dynamic packaging technologies, many self-guided travel products are now content-driven for potential bookings. After customers input relevant information, the system can automatically generate destination recommendations and the travel itineraries.

Customers can then select their preferred elements to customize their self-guided travel packages, which offers greater flexibility and personalization in the booking process. We have continued to expand our channel presence. Also, together with our partners, we work to better identify customer needs across different channels and have accordingly adopted our products and services to support product sales.

In the first quarter, live streaming contribution to our total transaction volume further increased to over 20%. Both payments and the verification volume continued to record double-digit year-over-year growth. As we continue to gain experience in live streaming and better understand the customer preferences, we have introduced more targeted products for different customer segments. For example, for senior travelers, we introduced European tour products with itineraries longer than 15 days. While for family-oriented customers, we promoted customized Singapore tours and the private group products. These targeted initiatives improve customer acquisition efficiency and contribute to higher verification rates.

In addition, we continue to expand live streaming to destination-based scenarios. For example, we conducted onboard live stream sessions from cruise ships, providing customers with a more direct understanding of destinations and helping drive both bookings and verifications. In the first quarter, our offline store business continued to grow with transaction volume increasing by nearly 30% year-over-year. Offline stores continued to play an important role in the sales of offline tour products and the promotion of Tuniu brands.

We fully opened our systems and the product offerings to offline stores, enabling them to expand our reach into lower-tier markets and provide customers in lower-tier cities with access to a broader range of travel products, particularly outbound travel products. This year, we plan to continue expanding our offline store network.

In addition, we are further broadening our channel partnerships, backed by our solid supply chain, quality products and advanced technology tools. Our S2B2C model enables us to efficiently provide business partners with a broad range of products and services to meet the needs of their end customers. This collaborative approach creates value for both sides.

Tuniu is able to connect the supply and demand more efficiently, lower customer acquisition costs and expand sales scale, while partners can offer high-quality travel products and services to better sell and retain their customers. Going forward, we will continue to expand our partner network and jointly serve a broader customer base.

In terms of technology, we will continue to explore the application of AI technologies across various business scenarios this year, further integrating automation tools into more operational processes. Through ongoing tool upgrades and improvements to our regular operations, AI tools can assist employees in handling more repetitive tasks, allowing them to focus on more contacts and innovative work.

On the customer side, technology tools such as itinerary recommendations, stand-alone product booking and dynamic packaging provide customers with more intelligent, convenient and efficient booking experience. In particular, self-guided travelers can leverage AI-assisted tools to customize travel products based on their own preferences and needs.

This year, the travel market has seen a growing number of peak travel periods. Following the spring break and the recent holidays in the second quarter, the summer travel season is approaching. This presents both opportunities and challenges. We will continue to strengthen the supply, sales and service capabilities of our seasonal travel products and work closely with sales channel partners to provide more customers with simple, convenient and high-quality travel experiences.

I will now turn the call over to Anqiang, our financial controller, for the financial highlights.

Thank you, Donald. Hello, everyone. Now I'll walk you through our first quarter of 2026 financial results in greater detail. Please note that all monetary amounts are in RMB unless otherwise stated. You can find the U.S. dollar equivalent of the numbers in our earnings release.

For the first quarter of 2026, net revenues were CNY 132.6 million, representing a year-on-year increase of 13% from the corresponding period in 2025. Revenues from packaged tours were 11% up year-over-year to CNY 109.7 million and accounted for 83% of our total net revenues for the quarter. The increase was primarily due to the growth of online tours and self-guided tours.

Other revenues were up 24% year-over-year to CNY 22.9 million and accounted for 17% of our total net revenues. The increase was primarily due to the increase in the fees for advertising services provided to tourism boards and bureaus. Gross profit for the first quarter of 2026 was CNY 73.6 million, up 6% year-over-year. Operating expenses for the first quarter of 2026 were CNY 77.3 million, down 4% year-over-year.

Research and product development expenses for the first quarter of 2026 were CNY 13.6 million, down 7% year-over-year. The decrease was primarily due to the decrease in research and product development personnel-related expenses. Sales and marketing expenses for the first quarter of 2026 were CNY 50.5 million, up 17% year-over-year. The increase was primarily due to the increase in promotion expenses.

General and administrative expenses for the first quarter of 2026 were CNY 13.5 million, down 41% year-over-year. The decrease was primarily due to the impairment of property and equipment, net, recorded in the first quarter of 2025. Net income attributable to ordinary shareholders of Tuniu Corporation was CNY 0.7 million in the first quarter of 2026. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses and amortization of acquired intangible assets was CNY 2.6 million in the first quarter of 2026.

As of March 31, 2026, the company had cash and cash equivalents, restricted cash, short-term investments and long-term deposits of CNY 1 billion. Capital expenditures for the first quarter of 2026 were CNY 0.5 million. For the second quarter of 2026, the company expects to generate CNY 134.9 million to CNY 141.6 million of net revenues, which represents a 0% to 5% increase year-over-year. Please note that this forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.

Thank you for listening. We are now ready for your questions. Operator?

[Operator Instructions] The first question comes from Kathy Liu, a private investor.

2 questions here. First, we were seeing market conditions for the second quarter look relatively mixed. With the rollout of spring break policy as a positive driver and the surging airfares as a headwind, how will these factors impact our business? And my second one is about the upcoming summer vacation. Could you kindly share some color also on the booking trends? That's all.

Thank you for the questions. Firstly, we are glad to see a lot of cities implemented spring break this year. Many of them arranged the break before timing of Labor Day holidays, forming a longer vacation. It stimulated the growth of travel, especially leisure travel in the domestic market. For example, we recorded over 50% year-over-year growth in the number of trips from April 1 till 6 this year. Moreover, during April 1 to the 3, the number of trips for family tours tripled compared to the same period last year.

Products featuring natural experiences, theme parks and study tours were most favored by families with children. We've launched several spring break-oriented products in East China, which were welcomed by the parents. We plan to expand the destination coverage and autumn break products in the second half of the year.

For the increase of airfare prices, the impact is limited on long-haul packaged tours. Such packaged tours often contain many travel resources other than airfare. So the risk can be mitigated by integrating other resources in the package. Through our coordinating with the suppliers, many long-haul outbound tour products maintain the same price despite the higher airfares.

For domestic tours, we provide alternative travel solutions such as connecting flights, train tickets and car rental. But considering headwinds at certain outbound destinations as well as airfare price impact on short-haul travels and air ticketing alone, we expect the revenues to increase up to 5% year-over-year in the second quarter.

For your second question about the summer vacation, it's still too early to tell. We have limited visibility towards the booking data due to short booking window, especially for domestic tours and the short-haul outbound tours. Based on our insight, destinations with cooler weather, such as [ Guizhou ] and Neimeng will be on the hot list.

Also, as we see the shift from traditional sightseeing to culture experience is undergoing, cities such as Beijing and [indiscernible] will be popular. For long-haul outbound tours, the bookings are on track. For example, so far, we see the booking amount for packaged tours to America in July and August has already exceeded the same period last year. Thank you.

[Operator Instructions] We are now approaching the end of the conference call. I will now turn the call over to Tuniu's Director of Investor Relations, Mary, for closing remarks.

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

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.

Hello, and thank you for standing by for Tuniu's 2025 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.

Thank you, Betsy, and welcome to our 2025 Fourth Quarter and Full Year Earnings Conference Call. Joining me on the call today are Donald Yu, Tuniu's Founder, Chairman and Chief Executive Officer; and Anqiang Chen, Tuniu's Financial Controller. For today's agenda, management will discuss business updates, operation highlights and financial performance for the fourth quarter and fiscal year 2025.

Before we 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. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB.

I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Yu.

Thank you, Mary. Good day, everyone. Welcome to our fourth quarter and full year 2025 earnings conference call. In the fourth quarter, our business continued to maintain solid growth momentum. Net revenues increased by 20% year-over-year, exceeding our previous guidance. While revenues from our core packaged tour products grew at an even faster pace, rising 35% year-over-year.

At the same time, we achieved profitability for both the quarter and the year. This also marks the third consecutive year following the pandemic in which we have delivered full year non-GAAP profitability. We have announced a long-term shareholder return plan totaling up to USD 50 million to be carried out during the 3-year period from March 2026 with cash dividends and share repurchase. This plan reflects both our commitment to provide shareholders with sustainable returns and our confidence in the long-term outlook of the travel industry.

The travel market continued to grow in a healthy manner in the past year. The extension of national holidays and other favorable policies further stimulated domestic travel demand, while the increasing number of visa-free destinations made it easier for Chinese travelers to explore more destinations overseas.

In 2025, we adopted a more proactive product strategy by differentiating our products and products line. We targeted distinct customer segments and offered a richer, more tailored portfolio based on customer needs. Meanwhile, we leveraged our supply chain strength to enhance price competitiveness and attract more customers. During the year, we continued to pursue an open and collaborative approach, attracting high-quality partners to expand new channels and enhance service quality for our customers.

Contributions from channels such as live streaming, offline stores and corporate clients continued to increase as the share of Tuniu's transaction volume. In addition, we actively embraced new technologies, leveraging innovation tools to further enhance our product and service and improve operational efficiency.

Now I will walk you through our key achievements in more detail. First, our strong supply chain remains the foundation for delivering high-quality and price competitive products. In 2025, we further enhanced our direct and centralized procurement strategy in order to lower purchasing costs. Moreover, based on customer needs and pain points, we consolidated flight resources and introduced several connecting flights for Select long-haul travel products to niche destinations.

This approach further expanded our departure city coverage, making it more convenient for travelers from lower-tier cities to travel abroad. It also enabled us to take advantage of airline discounts available in those hubs, allowing us to offer even more competitive pricing to our customers and further boosted demand for related destinations. Many hub cities such as Chengdu and Wuxi are popular tourist destinations themselves, allowing travelers to combine stopovers with their visits. As a result, these products gained strong traction upon launch. For example, our Caucasus series using connecting flights recorded over 500% year-over-year growth in transaction volume in 2025. We will continue to expand these offerings by adding more departure points and destinations.

In terms of products, we continued to adopt a differentiated strategy to better serve distinct customer segments. As the core customers of our new tour products, experienced travelers and repeat customers tend to prioritize the travel experience and typically have greater flexibility in both time and budget. In 2025, Niu Tour introduced a wider range of niche destination products, including the organized tours products to the Caucasus region in April and to South America in October. At the same time, we further enhanced the travel experience of Niu Tour products by implementing a zero shopping policy throughout the trip and some including curated experiences such as Michelin-star dining and helicopter tours.

In the second half of 2024, we launched our Niu Select series, offering a wider range of cost-effective products and further expanding to Tuniu's price tiers. In 2025, we expanded our Niu Select offerings to cover a broader array of international destinations. With more competitive pricing, the Niu Select products have attract a wider customer base, enabling travelers to either reduce their travel budgets or explore additional destinations within the same budget, an option that strongly appeals to travel fans, particularly younger ones.

The Niu Select Singapore-Malaysia tour series launched in June last year, recorded over 10,000 paid bookings during the summer holiday period. We also observed a continued rise in demand for self-guided tours, particularly in the domestic travel market. Last year, we expanded the supply of our Hotel + X products with hotels at the core and supported by dynamic packaging technology. We broadened the coverage to all provinces in China, Chinese Mainland and further penetrated the lower-tier markets. During the 2025 Labor Day and National Day holidays, transaction volume for our self-drive tour products recorded a triple-digit year-over-year growth.

Going forward, we will continue this strategy by expanding the supply and destination coverage of our self-guided tour products. In addition, in 2025, we continued to explore and expand diversified channels. Live streaming is playing an increasingly important role for our sales. In 2025, both payment and verification volume through our live streaming channel continued to record double-digit year-over-year growth while achieving profitability through a single channel. Live streaming channel contributed over 15% to our total transaction volume in 2025 compared to approximately 10% in 2024.

On the product side, first, we expanded the range of live streaming offerings beyond the traditional hotel plus scenic spot packages. We added personalized service products such as travel photography as well as more high-ticket items like long-haul outbound travel products, enriching customers' choices. Second, we fully leveraged our supply chain advantages to ensure competitive pricing. For example, our Niu Select products are highly popular with live stream audiences due to their good value for money.

In terms of format, we increased the number of our outdoor live streaming shows, including inviting live streamers to broadcast live from destination sites. In March last year, Tuniu partnered with multiple live streamers to conduct a 21-day on-site live streaming campaign across 10 islands in the Maldives, generating cumulative sales of over RMB 100 million.

On the service side, with more than a decade of experience in the travel industry, we provide professional tour guidance and comprehensive travel-related services. In addition, we have a dedicated verification team and specialized system support in place to deliver a smoother redemption experience for customers. Off-line stores remain an essential part of our overall sales and service network. As of the end of 2025, we operated more than 400 stores nationwide.

We expanded our store presence in key cities, including major popular tourist destinations and transportation hubs such as Chengdu and Xi'an, building scale in local markets to enhance operational efficiency and reduce costs. In 2025, transaction volume from offline stores increased by nearly 20% year-over-year. We also continued to develop channels such as traffic platforms and corporate clients, tailoring our product offerings to the specific needs of each channel.

On traffic platforms, sales of stand-alone products such as air tickets and hotel bookings grew rapidly. For corporate clients, in addition to providing business travel booking service, we leveraged our extensive experience in the leisure segment to offer customized group travel solutions as well as personal and family vacation products for employees. In the fourth quarter of 2025, transaction value from corporate clients increased by more than 20% year-over-year.

In terms of technology, we are exploring the application of AI agents across various business scenarios. Last April, Tuniu officially launched our self-developed travel agent -- travel AI agent, AI assistant, Xiao Niu. The assistant integrates vertical travel application scenarios with large language models to provide customers with one-stop services, including smart search, automated price comparisons, personalized recommendations and dynamic packaging.

At the same time, we continued to integrate technological tools into our daily operations. These initiatives have improved efficiency and helped control operating costs. We are encouraged by the growing adoption of our AI tools among both customers and employees. In addition, we have adopted an open collaboration approach by gradually providing external AI agents such as OpenClaw with the same comprehensive travel booking capabilities available in our app via MCP interface, enabling them to search and place bookings directly.

We will continue to embrace new technology to support high-quality growth. Over the past year, we made steady progress while managing a range of challenges. Overall, the company continues to move forward on a sustainable development path. In the year ahead, we will remain focused on customer needs, continue refining our products and services and expand our reach through diversified channels to support stable and sustainable growth.

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

Thank you, Donald. Hello, everyone. Now I'll walk you through our fourth quarter and fiscal year 2025 financial results in greater detail. Please note that all monetary amounts are in RMB, unless otherwise stated. You can find the U.S. dollar equivalent of the numbers in our earnings release.

For the fourth quarter of 2025, net revenues were CNY 123.5 million, representing a year-over-year increase of 20% from the corresponding period in 2024. Revenues from packaged tours were up 35% year-over-year to CNY 102.1 million and accounted for 83% of our total net revenues for the quarter. The increase was primarily due to the growth of organized tours and self-guide tours.

Other revenues were down 21% year-over-year to CNY 21.5 million and accounted for 17% of our total net revenues. The decrease was primarily due to the decrease of merchandise sales. Gross profit for the fourth quarter of 2025 was CNY 70 million, which was almost in line with gross profit in the fourth quarter of 2024.

Operating expenses for the fourth quarter of 2025 were CNY 69 million, down 16% year-over-year. Research and product development expenses for the fourth quarter of 2025 were CNY 12.3 million, down 8% year-over-year. The decrease was primarily due to the decrease in research and product development personnel-related expenses.

Sales and marketing expenses for the fourth quarter of 2025 were CNY 44.1 million, up 3% year-over-year. The increase was primarily due to the increase in promotion expenses. General and administrative expenses for the fourth quarter of 2025 were CNY 12.8 million, down 52% year-over-year. The decrease was primarily due to the impairment of property and equipment net recorded in the fourth quarter of 2024.

Net income attributable to ordinary shareholders of Tuniu Corporation was CNY 1.5 million in the fourth quarter of 2025. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses and amortization of acquired intangible assets was CNY 3.5 million in the fourth quarter of 2025.

As of December 31, 2025, the company had cash and cash equivalents, restricted cash, short-term investments and long-term deposits of CNY 1.1 billion. Cash flow generated from operations for the fourth quarter of 2025 was CNY 68.8 million. Capital expenditures for the fourth quarter of 2025 was CNY 0.5 million.

Now moving to full year 2025 results. In 2025, net revenues were CNY 578 million, representing a 13% year-over-year increase. Revenues from packaged tours were up 21% year-over-year to CNY 493.5 million and accounted for 85% of our total net revenues in 2025. The increase was primarily due to the growth of organized tours and self-guided tours.

Other revenues were down 20% year-over-year to CNY 84.5 million and accounted for 15% of our total net revenues in 2025. The decrease was primarily due to the decrease in the commission fees received from other travel-related products. Gross profit was CNY 335 million in 2025, down 6% year-over-year.

Operating expenses were CNY 323.7 million in 2025, up 10% year-over-year. Research and product development expenses were CNY 59 million in 2025, up 12% year-over-year. The increase was primarily due to the increase in research and product development personnel-related expenses. Sales and marketing expenses were CNY 193.9 million in 2025, up 8% year-over-year. The increase was primarily due to the increase in promotion expenses.

General and administrative expenses were CNY 71.8 million in 2025, down 18% year-over-year. The decrease was primarily due to the decrease in general and administrative personnel-related expenses and impairment of property and equipment net. Net income attributable to ordinary shareholders of Tuniu Corporation was CNY 31.1 million in 2025.

Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of property and equipment net was CNY 42.6 million in 2025. Capital expenditures were CNY 4.4 million in 2025. For the first quarter of 2026, the company expects to generate CNY 125.7 million to CNY 131.6 million of net revenues, which represents a 7% to 12% increase year-over-year. Please note that this forecast reflects new current and preliminary view on the industry and its operations, which is subject to change.

Thank you for listening. We are now ready for your questions. Operator?

[Operator Instructions] There are no questions at this time. I will now turn the call over to Tuniu's Director of Investor Relations, Mary.

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 look forward to speaking with you in the coming months.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Have a good day.

Hello, and thank you for standing by for Tuniu's 2025 Third Quarter 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. Please go ahead.

Thank you, and welcome to our 2025 third quarter earnings conference call. Joining me on the call today is Donald Yu, Tuniu's Founder, Chairman and Chief Executive Officer; and Anqiang Chen, Tuniu's Financial Controller.

For today's agenda, management will discuss business updates, operation highlights and financial performance for the third quarter of 2025. Before we 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. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB.

I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Yu.

Thank you, Mary. Good day, everyone. Welcome to our third quarter 2025 earnings conference call. In the third quarter, with the peak travel season approaching, demand for travel accelerated and the tourism industry demonstrated thriving growth. Tuniu also recorded year-over-year growth in both transaction volume and the number of trips booked. From a destination perspective, both domestic and outbound travel achieved year-over-year growth in transaction volume and the number of trips booked. In the third quarter, net revenues increased by 9% year-over-year with revenues from our core packaged tour products growing by 12%. Since the beginning of this year, quarterly revenues from our packaged tours have consistently achieved double-digit year-over-year growth.

We also continued to deliver quarterly profitability on both a GAAP and a non-GAAP basis. As customer needs continue to evolve this quarter, we tapped into our core capabilities across products, supply chain and sales channels to better tailor our portfolio to market demand. In addition, we further enhanced our operational efficiency by leveraging technology tools. Next, I will elaborate in detail on some of our key initiatives. In terms of products, we continue to focus on customer needs and enhance our offerings to meet their evolving expectations. For experienced travelers and repeat customers who tend to prioritize the travel experience and usually have more time and budget. We leveraged the company's strength in outbound tourism to introduce a wider range of niche destination products.

For example, in October, our new tour launched its first organized tour to South Africa -- South America. Our new tour series now spans all major regions across Asia, Europe, Africa, the Americas and Oceania. In addition, to meet the surge in leisure travel demand during the summer, we expanded our long-haul island offerings, including destinations such as Seychelles and Mauritius. In the third quarter, transaction volume for these long-haul island products grew by several times year-over-year. We fully leveraged our supply chain advantages to continuously expand destinations for our new select products and attract customers with compelling high-value offerings.

For key domestic destinations such as Guizhou, we adopted on-site live streaming to offer customers a more immersive experience. In the outbound travel market, we expanded our destination coverage and offered more price competitive options, helping value-conscious customers reach their preferred destinations on a smaller budget. In the third quarter, transaction volume for our new select outbound travel products increased by more than 100% year-over-year. In response to the growing number of self-guided travelers in China, we continued to leverage Tuniu's advantages in dynamic packaging technology to expand our Hotel+X product offering. Our self-drive tour products now cover all provinces in Chinese Mainland.

During the National Day holiday this year, transaction volume for our self-drive tour products increased by 5x year-over-year. For our sales channels, live streaming is playing an increasingly important role for our sales. In the third quarter, both payments and verification volume through our live streaming channels continued to record double-digit year-over-year growth while maintaining single quarter profitability. On the product side, we fully leveraged our supply chain strength during the peak season to maintain a wide reliable product range and deliver price competitive offerings. In terms of format, we expanded our outdoor live streaming activities, including inviting live streamers to broadcast live from destination sites.

We formed a professional verification team and specialized system support, which together have improved efficiency across the entire process from product supply verification. In terms of external partnerships, we collaborate with top-tier live streamers to create synergies. And we work closely with mid- and long-tail creators, providing them with support and resources so we can grow together. We are pleased to see that more and more external live streamers are choosing to partner with Tuniu with some even becoming our exclusive live streamers focusing solely on selling our products. Offline stores remain an essential part of our overall sales and service network. Their personalized face-to-face service makes them particularly popular among senior travelers and community-based customers who are also key customer segments for our organized tour products.

In the third quarter, we continued to expand our offline store footprint, adding locations in major cities as popular tourist destinations and key transportation hubs. In September, we opened 2 flagship stores in Xi'an on the same day to better serve customers, preparing for National Day holiday travel. In the third quarter, transaction volume from offline stores increased by nearly 20% year-over-year. The summer season is a peak period for leisure travel. And while serving individual travelers, we also continued to provide high-quality services to corporate clients. In addition to business travel bookings, we leveraged our extensive experience and strength in the leisure travel sector to offer tailored vacation products to corporate clients.

We provide customized trips for some corporate clients and further extended our products and services to offer their employees with a range of personal and family vacation options. In the third quarter, transaction volume from corporate customers also recorded double-digit year-over-year growth. In terms of technology, various technology tools and methodologies have been embedded across all aspects of our operations and management, including product development and marketing, supply chain management and financial management. This has strengthened communication and collaboration between internal and external teams and further improved our operational efficiency. We will continue to explore advanced technologies such as dynamic packaging and AI applications and apply them across more scenarios to further enhance our operational efficiency and profitability.

We were pleased to see the robust travel demand during this year's National Day holiday, supported by favorable factors such as the extended holiday period. Although the industry typically enters a low season in the fourth quarter. We continue to see active demand for off-peak travel, ice and snow trips and other niche segments. We will continue to seize these market opportunities by strengthening product development and adjusting our marketing efforts for seasonal needs. With a richer, more distinctive and more value-for-money product portfolio, we aim to attract both new and existing customers while also preparing fully for the peak travel period during the Chinese New Year holiday. I will now turn the call over to Anqiang, our Financial Controller, for the financial highlights.

Thank you, Donald. Hello, everyone. Now I'll walk you through our third quarter of 2025 financial results in greater detail. Please note that all monetary amounts are in RMB, unless otherwise stated. You can find the U.S. dollar equivalents of the numbers in our earnings release. For the third quarter of 2025, net revenues were CNY 202.1 million, representing a year-over-year increase of 9% from the corresponding period in 2024. Revenues from packaged tours were up 12% year-over-year to CNY 179 million and accounted for 89% of our total net revenues for the quarter. The increase was primarily due to the growth of organized tours and self-drive tours. Other revenues were down 14% year-over-year to CNY 23 million and accounted for 11% of our total net revenues. The decrease was primarily due to the decrease in the commission fees received from other travel-related products. Gross profit for the third quarter of 2025 was CNY 109.6 million, down 10% year-over-year.

Operating expenses for the third quarter of 2025 were CNY 95.8 million, up 3% year-over-year. Research and product development expenses for the third quarter of 2025 were CNY 15.7 million, up 15% year-over-year. The increase was primarily due to the increase in research and product development personnel-related expenses. Sales and marketing expenses for the third quarter of 2025 were CNY 61.5 million, up 2% year-over-year. The increase was primarily due to the increase in sales and marketing personnel-related expenses. General and administrative expenses for the third quarter of 2025 were CNY 18.5 million, which was almost in line with general and administrative expenses in the third quarter of 2024. Net income attributable to ordinary shareholders of Tuniu Corporation was CNY 19.8 million in the third quarter of 2025.

Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses and amortization of acquired intangible assets was CNY 21.8 million in the third quarter of 2025. As of September 30, 2025, the company had cash and cash equivalents, restricted cash, short-term investments and long-term deposits of CNY 1.1 billion. Capital expenditures for the third quarter of 2025 were CNY 2.1 million. For the fourth quarter of 2025, the company expects to generate CNY 111 million to CNY [ 116.1 ] million of net revenues, which represents an 8% to 13% increase year-over-year. Please note that this forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change. Thank you for listening. We are now ready for your questions.

Operator?

[Operator Instructions] And today's first question comes from [ Emma Li, ] a private investor.

Congratulations on a solid quarter. I've got 2 questions. First, can management share the revenue proportions by domestic and outbound tours in the third quarter? Well second, can you please elaborate on travel performance during this year's National Day holiday. Will our company still remain profitable in the fourth quarter? That's all.

Thanks for your questions. For your first question, currently, domestic tour still dominate. In the third quarter, domestic tours consisted of about 2/3 of our total GMV and overseas tours consisted of 1/3, which is almost the same as the previous quarter. For second question, we observed healthy increase in both domestic and outbound travel market during the National Day holiday. Both our GMV and the number of trips recorded during the holiday had double-digit growth compared with the same period last year. This reinforced our confidence in the sustained growth of China's travel market. For domestic market, we saw growing numbers of self-guided tours. In particular, our self-drive tours increased over 5x during the holiday. As self-guided tour is prevailing in the domestic market, we leveraged our dynamic packaging technology to enrich the supply of Hotel+X products.

We used to focus our self-guided tour products on popular regions such as Yangtze River Delta and hot scenic spots such as [indiscernible] Park. This year, we extended our product offerings to all provinces throughout Chinese Mainland, partnership penetrating to lower-tier cities. We will continue to adopt this strategy as we see great potential in lower-tier cities. For outbound travel market, we recorded double-digit growth during the holiday. We saw nearly 50% increase in GMV from APAC regions. Popular destinations included Singapore, Malaysia and certain islands such as Maldives and Bali.

For long-haul destinations, the Americas ranked #1 in terms of growth rate. Niche destinations are gaining appeal, especially for sophisticated travelers by their natural beauty and unique local experiences. For the fourth quarter, we expect an 8% to 13% year-over-year increase in our net revenues and the packaged tours may grow faster. We will also try our best to achieve non-GAAP breakeven or profitability for the quarter. Thank you.

Thank you. We are now approaching the end of the conference call. I will now turn the call over to Tuniu's Director of Investor Relations, Mary, for closing remarks.

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 look forward to speaking with you in the coming months.

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

Hello, and thank you for standing by for Tuniu's 2025 Second Quarter Earnings Conference Call. [Operator Instructions] Today's conference call 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, Ms. Mary Chen. Please go ahead.

Thank you, and welcome to our 2025 2nd quarter earnings conference call. Joining me on the call today are Donald Yu, Tuniu's Founder, Chairman and Chief Executive Officer; and Anqiang Chen, Tuniu's Financial Controller. For today's agenda, management will discuss business updates, operation highlights and financial performance for the second quarter of 2025. .

Before we continue, I refer you to our safe harbor statement in 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 most directly comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB.

I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Yu.

Thank you, Mary. Good day, everyone. Welcome to our second quarter 2025 earnings conference call. In the second quarter, we saw a robust performance across the travel sector as the 3 holiday period helped sustain strong consumer demand. During this holiday, Tuniu recorded year-over-year growth in both transaction volume and the number of trips. During the quarter, the company continued to maintain consistent growth momentum with net revenues increasing by 15% year-over-year and revenues from packaged towards growing by 26%. .

Tuniu's robust supply chain has allowed us to execute our product strategy effectively with positive results. By expanding our range of offerings, we are meeting the needs of diverse customer segments while attracting more customers through competitive pricing. Together, these efforts are driving sustained growth across the business. In addition, our diversified sales channels have enabled us to reach a broader customer base. We are seeing more and more of our sales coming from new channels like live streaming and off-line stores. At the same time, we are closely monitoring the ROI of each channel and maintaining strict cost control over internal operations.

In the second quarter, we once again achieved moderate profitability on both a GAAP and non-GAAP basis. Let me walk you through some of our key initiatives in more detail. In the second quarter, we continued to strengthen our supply chain, which remains simple to delivering high-quality products at competitive pricing. First, we further enhanced our direct and centralized procurement strategies in order to lower purchasing costs. Second, we focused on resource integration. For example, by leveraging our nationwide sales network with consolidated international flight resources and introduce connecting flights for certain outbound travel products.

This approach allows us to consolidate customers from across the country to depart from key hub cities, expanding our departure city coverage and making travel more convenient for customers in different regions. It also enabled us to take advantage of airline discounts available in those hubs, allowing us to offer even more competitive pricing to our customers. In addition, we support our suppliers by offering more favorable payment terms as well as providing systems and technical support. This initiative helped us attract high-quality suppliers to collaborate closely with us in delivering better products and services to our customers.

On the product side, our various product lines continue to provide more targeted solutions for different types of customers. Niu Tour target mid- to high-end customers and maintain a high repurchase rate by focusing on quality. Over half of the customers booking Niu Tour products are Tuniu's loyal customers. Niu Select products have gained popularity among customers due to its cost-effective value proposition, especially on live streaming channels. We continue to expand the offering of Niu Select products, covering more destinations and itineraries. In the second quarter, transaction volume for Niu Tours, Niu Select products grew by more than 25% year-over-year.

In terms of product innovation, we continue to explore new definition offerings. For example, Niu Tour launched its first tour in the emerging destination of the Caucasus region, which received a 100% satisfaction rate. In response to strong demand we expanded beyond the premium organized tours and introduce more price-competitive Caucasus products under our Niu Select line. As the summer peak season approach, we conducted a live streaming show in the region in July. As a result, transaction volume for Caucasus products in the second quarter grew by over 150% year-over-year.

We also continue to diversify our sales network during the quarter, with emerging channels contributing an increasing share of total transaction volume. During the second quarter, both payment and verification volume through our live streaming channels achieved double-digit year-over-year growth, backed by our leading position in travel live streaming as well as strong brand recognition and product reputation, we expanded our live stream offerings to include higher price items such as luxury hotels, outscale island destinations and long-haul outbound tours. With over a decade of deep experience in the outbound travel segment, we successfully brought our expertise into the live streaming channels.

Operating products tailored to live stream viewers supported by professional presentations and the comprehensive services such as visa assistance. As a result, we quickly emerged as a leading outbound travel supplier through live streaming. For example, one of our in-house products for Dubai has already surpassed 10,000 paying customers since its launch earlier this year. For live streaming leader travel products, we've been encouraging more influencers to step out of their studios and conduct live streaming shows directly from the destination, offering customers a more immersive experience.

At the same time, we partnered with a number of top and mid-tier influencers to host a dedicated live streaming shows and jointly promote our offerings. In the second quarter, live streaming contribution to the company's total transaction volume continued to grow, rising from over 15% in the previous quarter to nearly 20%. In the second quarter, we continue to strengthen our offline store network. We expanded coverage in key cities, particularly popular departure cities, tourist destinations and the transportation hub to build local scale and drive down operating costs. As a result, transaction volume from offline stores grew by over 20% year-over-year during the quarter.

On the technology front, we continue to explore the application of AI agents across various scenarios, with a focus on enhancing customer experience and improving internal operational efficiency. We are pleased to see that more and more customers and employees are actually using our AI tools to help book trips and the complete task. We will continue to enhance our and update our technology tools in response to user feedback.

In concurrence with the arrival of the summer season, the travel industry is entering its peak period, while managing the surge in travel demand, we are also closely observing shifts in customer behavior, including booking habits, travel preferences and the product choices and are continuously refining our products and the services in response. Our goal is to ensure that more new and regular customers think of Tuniu first when it comes to planning their trips.

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

Thank you, Donald. Hello, everyone. Now I will walk you through our second quarter of 2025 financial results in greater detail. Please note that all monetary amounts are in RMB, unless otherwise stated. You can find the U.S. dollar equivalent of the numbers in our earnings release.

For the second quarter of 2025, net revenues were CNY 134.9 million representing a year-over-year increase of 15% from the corresponding period in 2024. Revenues from packaged tours were up 26% year-over-year to CNY 113.4 million and accounted for 84% of our total net revenues for the quarter. The increase was primarily due to the growth of organized tours and the self-drive tours. Other revenues were down 21% year-over-year to CNY 21.5 million and accounted for 16% of our total net revenues. The decrease was primarily due to the decrease in the fees for advertising services provided to tourism boards and bureaus.

Gross profit for the second quarter of 2025 was CNY 86 million, up 2% year-over-year. Operating expenses for the second quarter of 2025 was CNY 78.9 million, up 58% year-over-year. Research and product development expenses for the second quarter of 2025 were CNY 16.4 million, up 29% year-over-year. The increase was primarily due to the increase in research and product development personnel-related expenses. Sales and marketing expenses for the second quarter of 2025 were CNY 45 million, up 12% year-over-year. The increase was primarily due to the increase in sales and marketing personnel related expenses and promotion expenses.

General and administrative expenses for the second quarter of 2025 were CNY 17.8 million, down 18% year-over-year. The decrease was primarily due to the reversal of current expected credit losses allowance. Net income attributable to ordinary shareholders of Tuniu corporation was CNY 14.5 million in the second quarter of 2025. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation which excluded share-based compensation expenses and amortization of acquired intangible assets was CNY 16.5 million in the second quarter of 2025. As of June 30, 2025, the company had cash and cash equivalents, restricted cash, short-term investments and long-term deposits of CNY 1.2 billion. Cash flow generated from operations for the second quarter of 2025 was CNY 46 million. Capital expenditures for the second quarter of 2025 were CNY 1 million.

For the third quarter of 2025, the company expects to generate CNY 199 million to CNY 208.3 million of net revenues, which represents a 7% to 12% increase year-over-year. Please note that this forecast reflects Tuniu current and preliminary view on the industry and its operations, which is subject to change.

Thank you for listening. We are now ready for your questions. Operator?

[Operator Instructions] The first question is Ms. [ Lisa Lu ], Investor.

I've got 2 questions. First, can management share the revenue breakdown by destinations for this quarter? And which destinations drove the growth of packaged tour revenues? Second, can you give more details about the bookings in the summer vacation?

Thank you for your questions. As you know, our packaged tour revenue increased 26% year-over-year, making a solid growth. In terms of key drivers for the growth, domestic destinations achieved double-digit growth during the quarter, outbound tours growth faster than domestic tours in terms of GMV. Europe, Japan and Maldives all posted double-digit year-over-year growth. Some emerging destinations had higher growth rates. For example, South America increased over 50%. Sri Lanka and the Caucasus both increased over 100%. But the headwind from some Southeast Asia countries have slowed down and lowered demand from -- for the destination. Southeast Asia declined roughly 30% during the quarter.

In terms of destination breakdown, domestic tours contributed about 2/3 of our total GMV and outbound tours about 1/3 during third quarter. Within outbound destinations, Europe is the top 1 destination, which contributed about 1/3 of our outbound towards GMV. Japan and Maldives each contributed about over 10%. Middle East and Africa as well as America less than 10%, respectively. For the rest of the outbound destinations each contributed less than 5%.

For the second question about summer vacation. The demand has increased significantly during the peak season. Families with children are one of the main customer growth during the summer. Domestic city tours are hot, especially cities with museums such as Xi An and the Nanjing as well as cities with theme parks such as Shanghai and Guangzhou.

For long-haul tours, Huizhou is a public destination due to its cool weather. Following the shift of our customer habits, this summer, we launched more small growth tours at more competitive prices and sell our products through live streaming shows as scenic spots in Guizhou. For outbond travel, although we don't have full picture now, we have seen double-digit year-on-year growth in Japan, Europe and certain islands, including Maldives in July. For Southeast Asia, in spite of headwinds in Thailand and Cambodia. Singapore and Malaysia are gaining popularity since the summer vacation. Our Niu Select itinerary is covering both Singapore and Malaysia launched this summer have passed 10,000 paying customers through live streaming shows so far.

In general, the market continues its growth momentum in the peak season. As a result, we expect 7% to 12% net revenues growth in the third quarter and we will try to make profit again.

[Operator Instructions] We are now approaching the end of our conference call. I would now like to turn the call over to Tuniu's Director of Investor Relations, Ms. Mary Chen. Please go ahead.

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 look forward to speaking with you in the coming months.

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

Hello, and thank you for standing by for Tuniu's 2025 First Quarter 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, the Director of Investor Relations, Mary.

Thank you. and welcome to our 2025 first quarter earnings conference call. Joining me on the call today are Dunde Yu, Tuniu's Founder, Chairman and Chief Executive Officer; and Anqiang Chen, Tuniu's Financial Controller.

For today's agenda, management will discuss business updates, operation highlights and financial performance for the first quarter of 2025. Before we 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. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB.

I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Dunde Yu.

Thank you, Mary. Good day, everyone. Welcome to our first quarter 2025 earnings conference call.

In the first quarter, our core business maintained steady growth with revenues from packaged tours growing by 19% year-over-year. The domestic travel market demonstrated consistent growth momentum with a notable surge during this year's spring festival. For outbound tours, despite headwinds faced by some Southeast Asian destinations, long-haul destinations continued to perform well. Thanks to the diversity of our products and destinations.

Customers had the flexibility to choose between domestic offerings and nearby international options. As a result, our outbound tour transaction volume achieved double-digit year-over-year growth in the first quarter. This year, we have adopted more proactive strategies to respond to changing market demands.

First, by leveraging our differentiated products and high-quality services, Tuniu is able to attract premium customers and increase the repurchase rate risk. Also by capitalizing on our supply chain advantages, we have further reduced procurement costs, allowing us to return value to customers and offer more competitively priced products to attract a broader customer base.

We remain committed to open collaboration, introducing mutually beneficial policies to attract partners, explore new sales channels and work closely with the upstream and downstream segments across the industry chain to better serve our customers. Moreover, we are embracing new AI technologies to enhance the customer experience and our internal operation -- operational efficiency through innovation.

Now I'd like to walk you through our strategies in more detail. First, differentiate [ AK ] and high-quality products have always been one of Tuniu's core competitive advantages. Our in-house developed new tool product offers a unique position in the market as a premium organized tour product. Since its launch over a decade ago, many of new tours loyal customers have involved from first-time travelers to experienced travelers.

To meet the evolving demands of our customers, we continue to enhance the travel experience by implementing a door shopping policy throughout the trip, and some even including ultra-luxury hotels and the [indiscernible] style dining. Meanwhile, we are expanding the variety of destinations and product offering.

In April this year, New Tour launched its first tour to the 3 countries of the Caucasus region, which received a 100% satisfaction rate. Secondly, it responds to increasingly diverse customer needs, we have introduced a wider range of products, offering good value for money to attract more price-sensitive travelers.

For example, our new select products have expanded the outbound tour offerings to cover a broader array of international destinations, providing better options for customers, valuing cost effectiveness. With more competitive pricing, customers can now explore additional destinations within the same budget, an option that strongly appeals to travel fans, particularly younger fans.

In the first quarter, transaction volume for our new select products increased by over 80% compared to the previous quarter. In terms of our sales, we continue to explore and expand into a diverse range of channels. In the first quarter, our live streaming channels maintained strong growth with both transactions and the verification volume achieving double-digit year-over-year growth.

The contribution of live streaming to the company's total transaction volume increased from 10% in the first quarter last year to over 15% this year. In 2025, we expanded our live streaming product offerings beyond the traditional hotel plus scenic sports packages to include the personalized services such as photography and private tour guide, catering to more niche customer needs.

In terms of packaged tour sales, we continue to promote destination-based live streaming. In March, our in-house live streaming shows partnered with several travel influencers to launch a 21-day on-site live streaming campaign across 10 Islands in the Maldives. This campaign generated over RMB 100 million in total payment volume, helping Maldives-related products reach Chinese customers more effectively and the boosting overall increase in travel to the Maldives.

Regarding offline store expansion, as of the end of the first quarter, Tuniu has opened nearly 300 off-line stores, primarily located in high demand source markets, popular tourist destinations and the major transportation hub cities.

For example, in March of this year, we launched 10 new stores in a single day in Chengdu. Our offline stores feature travel products tailored for in-person promotion, helping to create a seamless integration between online and offline services. We also organized in-store events and other marketing activities to strengthen customer engagement and loyalty.

Additionally, these off-line stores supports our localized procurement efforts and allow us to share resources and grow with our supplier partners, contributing to the coordinated development of the local tourism industry.

In addition, we are actively developing sales channels such as traffic platforms and corporate clients, offering tailored products to meet their specific needs. For example, sales of single items such as flight ticket and hotel bookings have grown rapidly on traffic platforms.

For corporate clients, we provide customized growth tours as well as individual and family location packages to complement traditional business travel, addressing both corporate needs, including business trips and the team building as well as personal location demand.

In terms of technology, in early April, Tuniu launched our self-developed travel AI agent, AI assistant Xiao Niu. The assistant integrated vertical travel application scenarios with open-source large language models to provide customers with one-stop solve services, including smart search, automated price comparisons, personalized recommendations and dynamic packaging.

Once customers find a product they like, they can book it directly, eliminating pop-up bundling offers and ensuring a transparent and efficient booking experience. During this year's Labor Day holiday, we observed a noticeable increase in user engagement with our AI assistant, particularly in searches for flights, train tickets and hotel bookings.

Tuniu has assembled a team of professionals with deep expertise in both technology and the travel industry, enabling our R&D efforts to more effectively address key customer pain points. Looking ahead, customers will be able to leverage AI to plan personalized itineraries with greater ease, making customized travel more convenient, efficient and accessible.

In conclusion, Tuniu remains firmly committed to our mission of making travel easier by staying closely aligned with the evolving customer needs and continuously expanding our product offerings and sales channel options. With the support of AI technology, our service is becoming more intelligent, efficient and transparent. We will continue to drive innovation in both products and technology to enhance the customer experience and satisfaction, unlock the company's growth potential and pursue long-term sustainable development.

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

Thank you, Dunde. Hello, everyone. Now I'll walk you through our first quarter of 2025 financial results in greater detail. Please note that all the monetary amounts are in RMB unless otherwise stated. You can find the U.S. dollar equivalents of the numbers in our earnings release.

For the first quarter of 2025, net revenues were RMB 117.5 million representing a year-over-year increase of 9% from the corresponding period in 2024. Revenues from packaged tours were up 19% year-over-year to RMB 99 million and accounted for 84% of our total net revenues for the quarter. The increase was primarily due to the growth of organized tours.

Other revenues were down 26% year-over-year to RMB 18.5 million and accounted for 16% of our total net revenues. The decrease was primarily due to the decrease in the commission fees received from other travel-related products. Gross profit for the first quarter of 2025 was RMB 69.3 million, down 15% year-over-year.

Operating expenses for the first quarter of 2025 were RMB 80.1 million, up 15% year-over-year. Research and product development expenses for the first quarter of 2025 were RMB 14.5 million, up 12% year-over-year. The increase was primarily due to the increase in research and product development personnel-related expenses.

Sales and marketing expenses for the first quarter of 2025 were RMB 43.2 million, up 17% year-over-year. The increase was primarily due to the increase in sales and marketing personnel-related expenses and promotion expenses.

General and administrative expenses for the first quarter of 2025 were RMB 22.8 million, up 11% year-over-year. The increase was primarily due to the impairment of property and equipment that recorded in the first quarter of 2025.

Net loss attributable to ordinary shareholders of Tuniu Corporation was RMB 4.7 million in the first quarter of 2025. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of property and equipment, net, was RMB 0.8 million in the first quarter of 2025.

As of March 31, 2025, the company had cash and cash equivalents, restricted cash, short-term investments and long-term deposits of RMB 1.2 billion. Capital expenditures for the first quarter of 2025 was RMB 0.8 million.

For the second quarter of 2025, the company expects to generate RMB 131 million to RMB 136.8 million of net revenues, which represents a 12% to 17% increase year-over-year. Please note that this forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.

Thank you for listening. We are now ready for your questions. Operator?

[Operator Instructions] We have a first question from the line of [ Lee Dongyu ], a private investor.

Well, my first question is about your product strategy. Would you please give me more color on why and how the company offers more competitively priced products in the first quarter? And how does the price strategy impact to your revenues and profits?

Moreover, my second question is about the outlook for the second quarter. Will you be profitable in the second quarter? That's all.

Thank you for the questions. First of all, I shall see quality takes priority in our strategy. High-quality products are our core and help us build a large loyal customer base. We see different needs from customers, some prefer enjoyable experience, while others like favorable price. We need to diversity of -- diversify our price range to attract different customer growth, competitively priced products attractive among new customers and the customers from lower-tier cities.

We also observed that competitive pricing helps enhance repurchase. With favorable prices, customers can now plan more trips within the same budget. This year, the market competition is getting more intense. Apart from through OTA, travel products are accessible to customers via many channels, such as live streaming, social media and community as well as off-line stores.

So this year, we provide more competitively priced products to compete with other channels and consolidate our market share to implement our strategy. Firstly, we consolidate the supply chain, through centralized and direct procurement, we are able to get more favorable resources and lower the purchasing cost.

Secondly, we use technical methods, including AI technology to assist product pricing, ensuring the competitiveness of our price. On product side, this year, we increased the supply of new select products, which is an affordable product line, we launched last year. On sales side, we will launch various promotions and the discounts to our customers.

For example, our membership cardholder can enjoy discounts while booking at Tuniu. Competitively priced products help us attract more customers contributing to the increase of our GMV. In the first quarter, transaction volume for our new select products increased by over 80%, compared to the previous quarter. As we return value to our customers, this year, our gross profit ratio will be lower compared to the previous year. We will adopt measures to further control internal costs and try to achieve profitability for the second quarter. Thank you.

[Operator Instructions] We have no further questions at this time. I will now turn the call over to Tuniu's Director of Investor Relations, Mary, for closing remarks.

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 look forward to speaking with you in the coming months.

Thank you. Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.