Good day and thank you for standing by and welcome to TRIP.com Group 4th Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To answer questions during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand as raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. And I'd like to hand the conference over to your first speaker today, Michelle Chi, Senior IR Director. Please go ahead.

Thank you, Anda. Thank you, everyone. Good morning, and welcome to Trip.com Group's fourth quarter of 2025 earnings conference call. Joining me today on the call are Mr. James Lam, Executive Chairman of the Board, Ms. Jen Sung, Chief Executive Officer, and Ms. Cindy Wong, Chief Financial Officer. During this call, we will discuss our future outlook and performance, which are forward-looking statements made under the safe harbor provision of the U.S. Private Security Litigation Reform Act of 1995. Forward-looking statements involve inheritors and uncertainties. As such, our results may be material or different from the views expressed today. A number of potential risks and uncertainties are outlined in Trip.com Group's public filings with the Security and Exchange Commission. Trip.com Group does not undertake any obligation to update any forward-looking statements except as required under the applicable law. Jens, Jen, and Cindy will share our strategy and business updates, operation highlights and the financial performance for the fourth quarter and full year 2025, as well as outlook for the first quarter of 2026. After the prepared remarks, we will have a P&A session. With that, I will turn the call over to Gems. Gems, please.

Thank you, Michelle, and thanks everyone for joining us on this call today. Travel continues to be a vital pillar of the global economy, supporting consumption, employment, and cross-border connectivity. In 2025, global travel demand remained resilient, driven by leisure travel and the continued desire for meaningful, experience-led journeys. At the same time, travelers became more discerning, with greater emphasis on value, flexibility, and service reliability. These evolving preferences reinforced the importance of platforms that can deliver trusted services at scale while contributing positively to the broader travel ecosystem. Going forward, we will focus our investment priorities on three key areas – inbound tourism, social responsibility initiatives, and AI innovation. We see inbound travel as a structurally important growth driver, both for our platform and for destination economies. In 2025, we served approximately 20 million inbound travelers supporting demand across transportation, accommodation, and local experiences. Beyond volume, we focus on enabling local partners to better accommodate international visitors' needs and helping travelers move through their journeys with greater ease and confidence. To support this growth, we have built integrated inbound travel support capabilities across both our online platform and dedicated offline inbound service counters. These services reduce complexity for international visitors across travel information, connectivity solutions, and itinerary bookings by improving demand readiness and visibility on our platform. We can more effectively match inbound demand with local supply and channel incremental traffic towards small businesses, cultural venues, and regional destinations to support local economic vitality. We believe long-term value creation requires sustained reinvestment into the communities, partners, and people that underpin the travel ecosystem. Our sustainability initiatives integrate community empowerment, innovation, workforce support, and social responsibility into a unified long-term approach. we launched a USD 100 million Tourism Innovation Fund to support commercial innovation across the travel ecosystem and established the Tourism Innovation Award to recognize outstanding ideas that advance service quality, efficiency and sustainability. These initiatives are designed to encourage practical innovation and help new solutions scale within the industry. In rural revitalization our efforts focus on four dimensions business enablement operational improvement marketing support and industry development helping generate sustainable economic value for local communities through destination development and long-term operations we aim to create employment stimulate local consumption and support resilient tourism models We also place strong emphasis on responsible employment practices and social inclusion. We promote a family-friendly workplace through policies such as childbirth subsidies and flexible work arrangements supporting long-term workforce stability and employee well-being. In addition, we continue to support charitable initiatives focused on education, community welfare and inclusive development, reflecting our commitment to responsible corporate citizenship. Building on our social responsibility initiatives, technology serves as a critical force multiplier, enabling us to scale impact efficiently and sustainably. Within this framework, AI and vertical large models will become a core pillar of our long-term technology strategy. We will continue to scale investment and accelerate the development of proprietary, travel focused large models tailored to the industry's operational complexity. By embedding domain-specific intelligence across search, recommendation, supply operations, and service fulfillment, we aim to fundamentally enhance efficiency, deepen partner enablement, and deliver more personalized user experiences. Our objective is not simply to adopt AI tools, but to build intelligent infrastructure that strengthens our long-term competitive advantage through AI-powered communication systems. We help partners overcome language barriers when serving international visitors. Our AI-driven content solutions also allow them to better showcase their inventories to global audiences. These capabilities open new business opportunities for airlines, hotels, destinations and small merchants and strengthen their participation in the inbound travel market. For users, we continue to invest in our AI ecosystem to deliver highly personalized, data-driven recommendations that not only improve content quality but also continuously enhance the overall user experience. At our core, we believe travel goes beyond economic activity. It reflects a fundamental human desire to explore, connect, and experience the world. That demand is enduring and its potential remains significant. Our ambition is to grow alongside the market, contributing to a healthy, balanced, and inclusive travel industry over the long term. With that, I will turn the call over to Jane for operational highlights. ...enhancing the overall traveler experience.

Inbound demand benefited more than 6,000 attractions with over 40% in globalization. By expanding travel occasions and smoothing seasonal demand, we seek to broaden the overall travel market and support more balanced industry growth. In Q4, our Old Friends Club membership and total GMV increased by over 100% home growth, we continue to invest in strengthening the broader travel ecosystem. As a platform business, our long-term performance depends on the health of destinations, partners, employees, and communities. Our social responsibility efforts focus on four areas where we believe ecosystem investment most directly supports sustainable growth. At the destination level, part of our long-term commitment to prioritizing customer interests, strengthening user loyalty. Thanks, Jane.

Good morning, everyone. For the fourth quarter of 2025, Trip.com Group reported a net revenue of RMB 15.4 billion, representing a 21% increase from the same period last year. This was primarily due to robust travel demand throughout the winter holiday. For the full year of 2025, our core OTA business achieved a gross bookings of RMB 1.1 trillion. Net revenue was RMB $62.4 billion, representing a 17% increase year-over-year. Income from operations was RMB $15.8 billion, representing an 11% increase year-over-year, excluding gains from investments. Net income attributable to Trip.com Group Limited was RMB $13.4 billion. Accommodation reservation revenue for the fourth quarter was RMB $6.3 billion, representing a 21% increase year-over-year. This was primarily driven by solid demand for outbound travel and international hotel bookings. For the full year of 2025, accommodation reservation revenue was RMB 26.1 billion, representing a 21% increase year-over-year. Transportation ticketing revenue for the fourth quarter was RMB 5.4 billion, representing a 12% increase year-over-year. International air bookings showed robust growth. For the full year of 2025, transportation ticketing revenue was RMB 22.5 billion, representing an 11% increase year-over-year. Packaged tour revenue for the fourth quarter was RMB 1.1 billion, representing a 21% increase year-over-year, primarily driven by the expansion of our international offerings. For the full year of 2025, packaged tour revenue was RMB 4.7 billion, representing an 8% increase year-over-year. Corporate travel revenue for the fourth quarter was RMB 808 million, representing a 15% increase year-over-year. This was driven by more companies adopting our managed corporate travel services. For the full year of 2025, corporate travel revenue was RMB 2.8 billion, representing a 13% increase year-over-year. Excluding share-based compensation charges, adjusted product development expenses for the fourth quarter increased by 17% year-over-year. Adjusted GNA expenses for the fourth quarter increased by 9% year-over-year. These were mainly due to increase in personnel-related expenses. For the full year of 2025, the combined total of adjusted product development expenses and adjusted G&A expenses increased by 14% year-over-year. Adjusted sales and marketing expenses for the fourth quarter increased by 5% from the previous quarter and increased by 30% from the same period last year. For the full year of 2025, adjusted sales and marketing expenses as percentage of net revenue was 24%, compared to 22% last year. The sequential increase was primarily driven by broader marketing investments, with incremental spend allocated to our international expansion. Adjusted EBITDA was RMB 3.4 billion for the fourth quarter, compared with RMB 3.0 billion in the same period last year. For the full year of 2025, adjusted EBITDA was RMB 18.9 billion, representing a growth of 11% year-over-year. Diluted earnings per ordinary share and per ADS were RMB 6.11 or US$ 0.87 for the fourth quarter of 2025, Excluding share-based compensation charges Fair value changes of equity securities, investments, and exchangeable senior notes recorded in other expense or income And their tax effects Non-GAAP diluted earnings per ordinary share and per ADS were RMB 4.97 or US$ 0.71 for the fourth quarter For the full year of 2025, diluted earnings per ordinary share and per ADS were RMB 47.67 or US$6.82, excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other expense or income, and their tax effects, non-GAAP diluted earnings per ordinary share. and per ADES were RMB 45.59 or US$6.52. As of December 31, 2025, the balance of cash and cash equivalents, restricted cash, short-term investment, held to maturity time deposit and financial products was RMB 105.8 billion or US$15.1 billion. We remain committed to delivering long-term value to our shareholders through sustainable business growth. This is further supported by our ongoing shareholder return program, which includes sharey purchases when market conditions align with our capital allocation strategy. Looking ahead, we are confident in our business and will continue to take a disciplined approach to investment and execution that drives sustainable value creation. With that operator, please open the line for questions.

Thank you. If you would like to ask a question now, please press star one and one on your telephone and write for your name to be announced. To withdraw your question, please press star one and one again. A moment, please, for our first question.

We will now take our first question from the line of Yang Liu of Morgan Stanley. please ask your question your line is open thank you thank you for the opportunity I have one question could management to share any update regarding the recent SAMR investigation how do you assess the potential impact on your business in 2026 and longer term thank you sure The TRIP.com group is actively cooperating with the state administration for market regulation

of the China throughout its review process, and we continue to engage constructively and transparently and will provide further updates as appropriate in accordance with applicable laws and regulations. In alignment with relevant policies, we remain committed to fostering a transparent and sustainable environment for all the stakeholders. And looking ahead, we will continue to focus our investments on three core priorities. First, driving inbound tourism. This creates new growth opportunity for our domestic partners and foster a more open, globally connected market opportunity. And second, deepening social responsibility initiatives. We reinvested in communities, empower our partners, and support local economies, all while encouraging innovation that drives sustainable growth. Third, accelerating our AI innovations, we are building a stable AI infrastructure to enhance partner efficiency, improve visibility, and break down barriers, enabling the industry to deliver better content and reach more customers. And we believe that a collaborative and fair ecosystem is critical to the long-term development of the travel industry. With over 26 years of industry expertise, a broad global network, and advanced technology capabilities, we remain focused on serving our users and partners and creating long-term sustainable value for our shareholders. Thank you.

Thank you. We will now take our next question from the line of Alex Yao of JPMorgan. Please ask your question. Alex, your line is open.

Thank you, management, for taking my question. I have a question about AI intermediation. As AI agents like Gemini and the Queen show strong capabilities in personalized recommendations and the closing the transaction loop. How do you evaluate the impact on your OTA business model? And what is your strategy to sustain your value proposition in the travel industry?

It accelerates our long-term strategy, one of the most significant technological shifts in years, and we are actively shaping their role in travel, not just adapting to them. The core OTA model is built on three pillars, inspiration, transaction. While AI agents excel at inspiring travel, they also reinforce the critical importance of our transactional and service layers, which are central to our business. A true closed loop in travel requires more than just itinerary generation. It demands deep integration with a complex global supply chain, airlines, hotels, local activity providers, along with live rates, secure payments, and guaranteed fulfillment. This is where our operational expertise and service capabilities excel. We view general AI agents as the next generation of user entry points set to capture share from traditional search and social media. Externally, we are moving beyond simple collaboration to build direct agent-to-agent transactional capabilities with leading AI partners across the globe. Internally, we are investing to advance our native AI agent to deliver sophisticated agentic search and booking to handle complex multi-step travel planning and booking for our users. We are confident in our ability to lead in this new environment by focusing on the following areas that are difficult for general AI models to replicate. First, proprietary data and vertical AI. The rise of powerful open source models accelerates our strategy. We leverage the best available AI technology as a foundation, but our true advantage is the ability to fine-tune these models into vertical travel experts using our decades of proprietary data, real booking data, user preferences, and millions of verified reviews. Our AI tools, like TripGenie and TripPlanner, not only offer personalized recommendations but also real-time, bookable results grounded in live inventory and pricing. Second, strong supply chain. We have deep, long-standing relationships with hundreds of thousands of partners worldwide, giving us access to comprehensive inventory, live rates, and direct technical integrations. While AI agents may suggest options, we confirm bookings instantly at reliable and real-time rates for our users. This last-mile guarantee is a core part of our business. Travel is a high-stakes emotional purchase. When issues arise, travelers need reliable support, not just an algorithm. By one-stop platform and 24-7 global support, provides the trust and security that stand-alone AI agents cannot match. It's not just a booking tool. We are a true travel partner. In summary, we are embracing AI to enhance our platform while reinforcing the core strengths. We are aware of how the world travels in the age of AI.

Thank you. We will now take our next question from Simon Churung of Goldman Sachs. Please ask your question, Simon. Your line is open.

Yeah, thanks for taking my questions. In the opening remark, in the presentation, you mentioned that inbound tours has been one of the core pillars on your future growth and the futures. And we've seen a lot of, you know, excitement around the area. Can you perhaps help us to kind of maybe some guidance in terms of how we should think about the future growth trajectory for these markets into 2026 and beyond? Thanks a lot.

Sure. Thanks, Simon. And we believe that inbound travel to China is at the start of a significant and sustainable growth cycle. Currently inbound tourism only accounts for about 0.5% of China's GDP compared to the highest contribution country, which is Thailand, more than 10% of the GDP are from inbound travel. And in Europe, such as France, Italy, and Spain, about 5 to 6% of the GDP are from inbound travel. So we see at least 5 to 10 times growth for inbound travel. And when we look at our strengths, we believe Tripped Outcome Group is unique, very uniquely positioned to capture the opportunity. Our strength lies in synergy between our deep local expertise and our growing global presence. For local expertise, we have decades of experiences which enable us to build an unparalleled ecosystem of products and a service that are deeply attuned to the needs of the Chinese market. For global reach, our glowing international presence provides direct access to a brand based on the overseas travelers. We connect the rich travel supplies within the country to the global requirement through the multilingual products, localized insights, and integrated cross-border marketing. So, we have put great efforts to drive this growth. Firstly, we promote a super destination. We run integrated marketing campaigns online and offline to reach out to the global audience. Secondly, we also empower our local partners for global readiness. We invest heavily in technology to build a robust multilingual infrastructure, supports partners with technology integration and training help them serve international visitors effectively and create local employment opportunities for example our private tour business has supported a creation of more than 30,000 travel agents jobs and more than 20,000 private driver guides Thirdly, we enhance our travelers' experience or focus on optimizing end-to-end experience for travelers unfamiliar with the local market, offering 24 times 7 global customer service local guides through transportation hubs, simplify payments, and expand access to services such as tax refunds. So, we are very glad to see as a result in 2025, those efforts have already produced significant results. We first, we served more than 20 million inbound travelers, and that number is growing rapidly, close to 100% year-over-year growth. Secondly, more than 40 cities on our platform have seen very high inbound travel contribution, and consumption is also enhanced through these inbound travelers. We aim to double that number in 2026. Moreover, more than 63,000 hotels, more than 25,000 attractions, and more than 600 travel agencies received their first inbound bookings through our platform, which is an uplift for their service capability. We are very excited to see these efforts have generated great results. Looking forward, we remain dedicated to fostering a transparent, seamless, and sustainable travel ecosystem, connecting global travelers with the richness of the country, and creating long-term value for our users, our local partners, and our shareholders. Thank you very much for your question.

Thank you. We will now take the next question from Thomas Chong on Jefferies. Please have your questions in the moment. Your line is open.

Thanks, management, for picking my question. Could you share some color about the booking trend during the Chinese New Year? How has consumer sentiment been trending recently? Can you also break down your business by geographic contribution? Thank you.

Sure. The 2026 Chinese New Year marked the longest New Year holiday in recent years, extended by one additional day compared with last year. This incremental holiday time meaningfully stimulated travel demand and supported strong overall performance. Our domestic hotel business records robust double-digit growth while ADR increasing modestly year-over-year, reflecting healthy demand dynamics. We achieved the double-digit growth in our album business with notable momentum in long-haul definitions, especially across Europe. With regard to the international market, our globalization strategy continues to yield strong results with our international OTA platform delivering solid growth. According to date, our international OTA platform has achieved year-over-year growth of approximately 60%. As we continue our expansion into key APAC markets this year, we remain committed to investing strategically to enhance our brand presence, localize our products, and drive sustainable growth. With regard to the travel sentiment, with people's growing desire to explore, travel sentiment remains strong worldwide. Leisure travel continues to be the primary driver of the market growth. In 2025, average spending per user remains stable compared to last year, reflecting sustainable and healthy consumer demand for travel experiences. While business travel also remained robust over the past year, we are strategically positioned to capture this demand, particularly by supporting the global expansion of Chinese enterprises through our comprehensive corporate travel solutions. Our international business contributed about 40% of total revenue and bookings in 2025, up from around 35% in 2024. We expect this momentum to continue, mainly fueled by the rapid growth of our Trip.com brand. Thank you.

We will now take our next question from Brian Gong of Citibank. Please ask your question, Brian. Your line is open.

Good morning, James, James, Cynthia, and Michelle. Thanks for taking my question. My question is about competition. So have you observed intensifying competition in domestic travel market, and how do you maintain your competitive edge in this environment? Thank you.

Thanks for your question. Competition in the domestic travel market has always remained dynamic, which reflects the segment's strong growth potential and continued volatility. We view this as a healthy sign for the industry. Our competitive edge is anchored in a couple of frames. First of all, we have always focused on high level of the services. we offer 24 hours times seven excellent customer service. When you call our call center globally, we offer 24 hours times seven service, and any agent will be able to address any questions with you very effectively. Secondly, we offer very comprehensive products. So, when you travel with us, we offer flight, hotel, vacation package, rental car, anything that you need during your trip, which is also very convenient for our customers. In the unexpected events, such an earthquake or conflicts, regional conflicts due to wars, We reach out to our customers within two minutes to make sure they are moved to the safe area. Our comprehensive product enables them to be rescued to their home country on a timely The third one is our global coverage. Not only we have a very good service and products domestically, we also developed a very strong on service capability and inventory coverage globally. So customers, when they travel with us, not only they can have peace in mind within the country, when they travel around the world, we are also behind them to support them. So all these trends give us the competitive advantage, and we will continuously focus on the best product.

We will now take our next question from Joyce G of Bank of America. Please ask your question, Joyce. Your line is open.

Happy Chinese New Year, James, James, Cindy, and Michelle. Congrats on concluding 2025 with a very strong set of results. And thanks for taking my question. With 2.com achieving another strong quarter of growth overseas, could you share some operational highlights and outlook for the 2026? Thank you very much. Sure. In 2025, gross booking for our international OTA platform increased by around 60% year over year. APEC remains the primary region of our international expansion, while booking trends from the Middle East and other regions also demonstrate very strong growth potential. Inbound tourism is the key contributor to our international business growth. In 2025, we served approximately 20 million inbound travelers, driven by rapid growth in visa-free regions. We remain focused on growing our APAC business in the coming 2026 and continue to explore opportunities in other regions with a disciplined approach. With ongoing improvements in business scale, product innovation, and brand penetration, we expect to improve profitability trajectory of our international OTA business, particularly in the APAC region. Given the strong growth potential of the international travel market, we will continue investing for sustainable growth. Our mobile-first strategy, supported by intuitive front-end design and reliable back-end services and product capabilities, will help us enhance our global brand recognition and drive steady international expansion. Thank you.

Thank you. We will now take our next question from Parash Jain of HSBC. Please ask your question. Parash, your line is open.

Sure. Thank you, management. And for the update, if you can share some color on your international business, particularly in the Asia-Pacific region, in light of evolving competition, especially from players like Agoda, thank you.

Thanks for your question. In 2025, we remained focused on extending our presence in APEC market. Our continued execution across the key markets contributed to the rising brand recognition among local customers. As we localize our efforts, it's deepening, we are deploying market-specific strategies to better align products and services with local travel needs. Supported by improvements in product competitiveness and the mobile booking experiences, active users' growth is significant in major APAC markets. In Q4 2025, Our international bookings reached a record high, the growth and the strong results reflect the effectiveness of our globalization strategy, built through long-term experiences and supported by disciplined marketing investments. Going forward, we will continue to prioritize APEC region with online penetration and travel sentiment to continue to improve. We remain focused in our execution for strategies to develop the comprehensive products, localize the service, localize the marketing strategy, and excellent product offerings. So we intend to further penetrate in the Asia Pacific region and provide excellent services to more and more customers in that region. Thank you.

Thank you. Our last question for today comes from Wei Xiong of UBS. Please ask your question, Wei. Your line is open.

Yeah, thank you. Good morning, management. Thank you for taking my question. Just a quick one. Could you please provide an update on your shareholder return program? In 2025, we fully utilized the authorized share repurchase quarter under the 2025 repurchase plan and completed additional repurchase in the fourth quarter. Going forward, we remain committed to delivering long-term shareholder value through sustainable business growth as well as disciplined execution of our capital return program.

We have come to the end of the question and answer session. Thank you all very much for your questions. And now I'd like to turn the conference back to Michelle for closing comments.

Thank you. Thanks, everyone, for joining us today. You can find the transcript and webcast of today's call on investors.strips.com. We look forward to speaking with you on our first quarter of 2026 earnings call. Thank you, and have a good day.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.