A：The purpose of Full Truck Alliances first quarter 2025 earnings conference call was to discuss the company's financial performance and to provide updates on its business progress.

A：The main achievements highlighted in the first quarter of 2025 include enhanced operational efficiency, reduced logistics costs, technological innovation and product upgrades, displaced traditional offline logistics transaction models, and a 23% year-over-year growth in total fulfilled fielded orders.

A：The key components of the company's strategy to improve its business include long-term investments in branding initiatives, online user acquisition, and strategic efforts to reinforce brand perception, communicate a unique value proposition, and improve platform performance.

A：The outcome for the company's transport capacity, ecosystem, and matching efficiency was a strengthened trucker community with a high retention rate, enhanced trucker fulfillment capabilities and service quality, introduction of tailored membership offerings, and an overall performance rate of 39.2% for the first quarter, which is a new record.

A：Monetization is significant in the company's business model as it allows the company to fuel robust revenue growth and tap into the significant monetization potential of its platform, thereby delivering value to both truckers and shippers.

A：The company's strategic investments for the coming period include deepening investments in Cloud TRC to maintain technological leadership in heavy-duty truck autonomous driving and exploring the full spectrum of road transportation scenarios for AI applications to drive cost reductions and efficiency improvements.

A：The operational highlights for the first quarter include a 22.6% year-over-year growth in fulfilled orders to 48.2 million, a fulfillment rate reaching 39.2%, and the addition of 28.8% more average shipper MAUs to 2.76 million compared to the same period last year.

A：The user base for the company grew with an increase in both the average shipper MAU reaching 2.76 million and the number of shipper members exceeding 1.1 million by the end of the first quarter. This growth was primarily driven by an increase in low and medium frequency direct shippers due to effective user engagement and retention initiatives.

A：To optimize monetization within the trucker network, the company continuously iterated and optimized the matching system, differentiating freight pricing for low, median, and high-frequency shippers. This strategy strengthened retention among core shipper users and unlocked monetization potential within the long-tail user demographics. The fulfillment efficiency consistently increased, and the willingness of low and medium frequency direct shippers to pay for services was supported. Further refinement of the monetization structure is planned, leveraging an intelligent risk control system and dynamic pricing capabilities to deepen monetization in high-value scenarios.

A：The total net revenues in the first quarter were RMB 2,000,000,699.9 million, representing a 19% increase year over year. Revenues from freight matching services, including service fees, membership fees, and commissions from transaction services, grew by 20.2% year over year. Cost of revenues decreased by 32.3% year over year to RMB 698.6 million. Sales and marketing expenses increased by 37.9% year over year to RMB 377.9 million. General and administrative expenses decreased by 18.5% year over year to RMB 186 million. Research and development expenses decreased by 55.8% year over year to RMB 1193.4 million. Income from operations increased by 285.2% year over year to RMB 1,000,202.4 million. Net income in the first quarter was RMB 1,000,278.9 million, an increase of 118.1% from the prior year. Non-GAAP measures adjusted operating income and adjusted net income also showed significant increases. Basic and diluted net income per ADS were RMB 1.22 and RMB 1.21, respectively, in the first quarter, compared to RMB 0.56 in the prior year.

A：The company expects total net revenues for the second quarter of 2025 to be between RMB 3,06 billion and RMB 3,12 billion, representing a year-over-year growth rate of approximately 10.6% to 12.9%. This forecast is based on the company's preliminary reviews of market and operational conditions and is subject to change.

A：The company announced an additional investment of US$125 million into Plus PRC, a leading autonomous driving technology company in China. Following the completion of the investment, the company expects to maintain no less than 52.8% of equity interest and 56.2% of voting rights in Plus PRC, excluding ESOPs. The company expects to control the Board of Plus PRC and consolidate the financial results of Plus PRC into its consolidated financial statements upon completion of the investment transactions.

A：The speaker indicates that they have not observed any significant impact on their business due to the recent tariff adjustments, attributing this to their focus on domestic freight transportation and the indirect nature of tariffs on export cargoes managed by third-party logistics specialists.

A：The strong performance in fulfilled orders was attributed to three key factors: continued expansion of a high-quality user base, effective execution of operational strategies focusing on shipment onboarding, fulfillment assurance, and retention enhancement, and the addition of new business segments contributing to robust order volume growth.

A：The core strategy for 2025 will continue to focus on strengthening long-haul freight operations by improving supply and demand matching efficiency and enhancing the end-to-end service experience to solidify the company's leadership position in the long-haul freight market and drive high-quality volume growth.

A：The fulfillment rate improved rapidly in the first quarter primarily due to the combined effects of user structural optimization, upgraded operational strategies, and enhanced matching efficiency. Specifically, the improvement was driven by a better user mix with an increased proportion of direct shippers, who typically demand higher service quality and fulfillment reliability, and by refined operational strategies that improved pricing transparency and matching precision.

A：The high growth in the number of monthly active shippers is attributed to both short-term strategic optimizations and the platform's long-term accumulated value that continues to strengthen the user ecosystem. This includes targeted marketing, operational improvements that increased user engagement and retention, and the implementation of a membership program that offered benefits such as freight discounts and shipment tracking.

A：The ongoing enhancement of the platform's user growth is attributed to the styling proposition's acceleration, which includes an increasingly efficient and transparent matching mechanism. This allows direct shippers to connect with truckers at reasonable freight rates, avoiding traditional price markups by offline intermediaries. Additionally, the platform has built a robust credit rating and disputes resolution system to support user claims and minimize transaction risks.

A：The company's strategy moving forward will center around user value, with a focus on deepening technology, empowerment, and operational innovation. The goal is to further expand the share of direct freight leadership in the digitalization of freight logistics and drive sustained high-quality user growth.

A：In the first quarter, the average number of monthly active truckers remained above 3 million, achieving high single-digit growth year over year. Both truckers' engagement and transaction frequency per trucker improved in parallel.

A：The three drivers of trucker activity growth are: 1) the continuous increase in shipper volumes activating existing truck capacity and encouraging dormant truckers to become active; 2) the evolution of the matching algorithm that reduced idle time between orders; and 3) the total membership system contributing to improved fulfillment, with a significant number of charter members who enjoy benefits such as priority access and exclusive privileges showing higher transaction frequency and rates compared to non-members.

A：The stability of the trucking supply and matching efficiency is largely due to the high entry barriers for truckers, such as the requirement for a professional driver's license, substantial vehicle investment, and a level of cargo resources. The support from the platform has helped improve truckers' vehicles turnover, enabling them to maintain resilient income amid economic fluctuations. Looking ahead, continued growth in volume is expected to improve trucker vehicles utilization and income, while ongoing optimization of matching efficiency and membership programs will further balance supply and demand.

A：The main drivers behind the rapid growth of transaction service revenue in the first quarter were the robust growth in business scale and improving order quality. The number of commission orders grew rapidly with the growth in fulfilled orders and increased commission order coverage. The monetization per order also improved, driven by high-quality transactions and improvements in freight pricing and price protection for truckers.

A：The key considerations include viewing autonomous driving technology as a critical inflection point shifting from technical validation to large-scale commercialization. The current progress involves scaling up investment, establishing collaborations with leading Oems to develop and deploy next-generation autonomous driving systems, and achieving early-mover advantages in high-demand applications like long haul logistics. The intelligent trucking fleet is already providing services to enterprise clients, enabling the continuous accumulation of operational data and providing efficiency gains.

A：The current application of AI technology is primarily focused on intelligent dispatching. The platform has integrated industry-specific features into its AI model to create the smart Truck Finder, which helps shippers locate the right truckers effectively and efficiently. Future plans involve substantially increasing AI-related investment and actively exporting the use of AI technology in other areas such as posting, customer services, and route planning. The aim is to continually deepen AI capabilities to enhance overall operational efficiency and deliver high-quality services to shippers and truckers.