Tuniu Corp. Sponsored ADR Class A Aktie

Hello, and thank you for standing by for Tuniu's 2026 Second 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, and welcome to our 2026 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, operational highlights and financial performance for the second 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 second quarter 2026 earnings conference call. Supported by favorable policies such as the introduction of spring breaks, the domestic travel market maintained steady growth in the second quarter. Meanwhile, the overall travel market faced some uncertainties with certain outbound destinations experiencing headwinds. Despite these challenges, we maintained revenue growth in the second quarter and achieved non-GAAP profitability for the sixth consecutive quarter.

During the quarter, we continued to execute our diversified product and sales channel strategy. Guided by customer needs, we further enriched our product offerings across categories, destinations and price tiers. For our sales channels, we continued to work with a broad range of partners to better reach different customer segments. Let me walk you through some of our key initiatives in more detail. On the product side, as customers increasingly seek more personalized [ travel ] and flexible travel options, we have continued to expand and refine our product portfolio. First, we further expanded our product offerings to include more small group tours, private tours, customized tours, self-driving tours and other travel-related products.

For growth tours have been well received by younger travelers for their flexibility and strong value proposition, while private tours have gained popularity among family travelers for their more personalized and private travel experience. Better serve the needs of self-guided travelers, we also expanded our hotel-centric self-guided tour products and broadened our portfolio of other travel-related products, including hotels, car rentals and the destination experiences.

Second, in addition to enhancing our Niu tour products for the mass market and our value-oriented Niu Select series, we introduced a number of premium private tour products during the quarter to meet demand from customers seeking higher quality travel experiences.

These products feature premium accommodations, dedicated car services and other upgraded travel experiences. For example, our premium private tour package to Singapore for the summer season launched in late June has been well received by family travelers with sales volume exceeded RMB 10 million to date. We also continue to expand our product offerings for different customer segments. For family-oriented customers, we launched a range of travel products during the spring break season centered on East China. For senior travelers, we introduced a longer duration organized tours of more than 15 days as well as off-peak travel products scheduled outside major holiday period. By better aligning our products with the preferences of different customer segments.

This offerings have delivered higher conversion and redemption rates. On the sales side, we adopted more targeted marketing initiatives. We launched a series of online seminars, inviting customers interested in specific products or destinations to learn more through detailed presentations and interactive activities, helping deepen customer engagement and interest. Also introduced dedicated live streaming shows focused on specific products and destinations, providing viewers with more in-depth and specialized content.

These targeted live streaming shows have generally delivered higher redemption rates. In addition to more targeted product offerings and marketing initiatives, we continued to expand our partnerships across sales channels. In live streaming, we further extended our presence to multiple major platforms while also deepening cooperation with MCN agencies. Leveraging our comprehensive portfolio of high-quality leisure travel products and well-established fulfillment capabilities, together with the extensive viewer reach of our MCN partners, we are able to increase sales scale and expand our customer base. In the second quarter, both payment and verification volume generated through our live streaming channels continued to record double-digit year-over-year growth. In the second quarter, transaction volume from our off-line stores have also continued to record double-digit year-over-year growth.

As of today, we operate approximately 500 offline stores. Our offline store network has contributed to sales growth and expanded the reach of our service network. While we continue to provide stores with tailored products that help them better serve and attract local customers. During the second quarter, demand for customized travel solutions from corporate clients increased. Leveraging our industry experience and high-quality products and services, we worked with a number of well-known enterprise to plan and deliver corporate travel tours, including team building activities and incentive travel.

From a technology perspective, we have integrated AI into a broader range of workflows such as building knowledge bases, creating promotional materials and assisting with order processing. AI tools have become valuable assistants to many employees, helping them work more efficiently while reducing operating costs. On the customer side, we upgraded our travel AI agent, AI assistant Xiao Niu with integrated booking and order processing capabilities. Customers can now complete the entire booking process for stand-alone travel products, including flights, hotels and [ attraction ] tickets through AI from initial inquiry to final booking. In addition, Xiao Niu can search, plan and compare itineraries based on different travel scenarios such as business trips or vacations as well as customers' individual preferences.

Delivering a more personalized travel planning experience. As we enter the summer travel season, we are well positioned to support the increased demand during the peak travel period. While there may still be some uncertainties in the second half of the year, we are confident in the growth of travel demand and the resiliency of both the travel industry and our business. We remain committed to providing customers with high-quality products and services.

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 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 second quarter of 2026, net revenues were CNY 138.9 million, representing a year-over-year increase of 3% from the corresponding period in 2025.

Revenues from packaged tours were up 7% year-over-year to CNY 121.1 million and accounted for 87% of our total net revenues for the quarter. The increase was primarily due to the growth of organized tours. Other revenues were down 17% year-over-year to CNY 17.8 million and accounted for 13% 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 2026 were CNY 76.4 million, down 11% year-over-year. Operating expenses for the second quarter of 2026 were CNY 82.5 million, up 5% year-over-year. Research and product development expenses for the second quarter of 2026 were CNY 13.8 million, down 16% 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 second quarter of 2026 were CNY 54.7 million, up 22% year-over-year. The increase was primarily due to the increase in promotion expenses. General and administrative expenses for the second quarter of 2026 were CNY 14.1 million, down 20% year-over-year. The decrease was primarily due to the decrease in general and administrative personnel-related expenses.

Net income attributable to ordinary shareholders of Tuniu Corporation was CNY 0.7 million in the second 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 2.2 million in the second quarter of 2026. As of June 30, 2026, the company had cash and cash equivalents, restricted cash, short-term investments and long-term deposits of CNY 1 billion.

Cash flow generated from operations for the second quarter of 2026 was CNY 46.9 million. Capital expenditures for the second quarter of 2026 were CNY 1.4 million. For the third quarter of 2026, the company expects to generate CNY 202.1 million to CNY 212.2 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] Our first question comes from [ Sarah Zhao ] a Private Investor.

Two questions here. First, could you please share the reasons for the decrease in net profit in the second quarter? Second, could you provide more details about travel bookings in the summer and also the outlook for the profitability of the quarter?

Thank you for the questions. In the second quarter, the domestic travel market continued to grow steadily, whereas the outbound travel market met some headwinds at certain destinations. The headwinds directly impacted leisure travel to certain destinations. For example, the Middle East and Africa recorded over 20% year-over-year decrease of transaction volume during the quarter. As a result, outbound tours accounted for about 30% of our total GMV for the second quarter compared to over 1/3 in the same period last year.

Moreover, the promotional activities from certain destinations were suspended. In the second quarter, our other revenues decreased about 70% year-over-year, mainly due to reduction in fees for advertising services we provided. In the domestic market, we see more rapid growth in self-guided tour products, such as our Hotel + X products. These products are usually less profitable than organized tours. For the summer vacation, domestic travel market maintained steady growth momentum, high-quality organized tour products such as small group tours and private tours are welcomed by customers. Some of our [ MCN ] partners select only small group tour products to recommend to their viewers.

Outbound market continues to face some uncertainties, which dragged down the growth of outbound travel. Destinations such as Middle East still recorded negative growth in July, but other destinations such as Singapore, Malaysia and the Americas grew healthily during the summer. As many people took off-peak travels this year with more holidays introduced, we are seeing transaction volume become more evenly spread across the months. For example, -- since the coming Mid-Autumn Festival and the National Day holiday are very close to each other.

Many people plan to take a longer vacation connecting [ two ] holidays. Therefore, we are seeing bookings in the last week of September surging. Notably, as of today, travels to long-haul outbound destinations such as Americas and Oceania during the week, we have already surpassed the same period last year. Lastly, although we don't give specific profit outlook, we will try to achieve the profitability for another quarter. Thank you.

Thank you did that answer your questions, [ Sarah ]?

Yes.

[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 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. Good day.

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.