A：The company's strategic priorities are to accelerate the development of inbound travel by investing in a stronger inbound travel ecosystem, empowering local partners, and enhancing accessibility to travelers worldwide.

A：Globalization and high quality are fundamental to the company's long-term growth strategy. Globalization represents a significant structural opportunity, particularly in inbound travel, while high quality is essential for defining travel growth through differentiated products, superior service, and compelling value.

A：The company is investing in building a stronger inbound travel ecosystem, empowering local partners, and making the country more accessible to international travelers.

A：AI is rapidly transforming how consumers discover, plan, and experience travel, making the travel journey more personalized, seamless, and valuable. The company is advancing its proprietary AI capabilities across the travel journey to enhance these experiences.

A：The company aims to serve 200 million inbound travelers over the next five years. It plans to achieve this by bringing more destinations, experiences, and local businesses into the global tourism ecosystem to capture the next phase of inbound travel growth.

A：The company is expanding its international presence by strengthening its relationship with key international markets, offering localized products and services, and increasing the diversity of its platform to enable travelers from around the world to discover destinations globally.

A：While outbound travel demand remained resilient, higher fuel prices and airfares impacted overall growth. The company believes that as travelers adjust their destination preferences and respond to changes in airfare, outbound demand has the potential to return toward its underlying growth trajectory.

A：Domestic travel experienced robust demand, with holidays and spring break programs driving travel. There was a shift in travel preferences towards less traditional, lower-density destinations, and there was a preference for short haul trips, city breaks, rural leisure, and educational experiences. These trends broaden the addressable opportunity for the company's platform.

A：Entertainment is increasingly becoming a driver of travel demand, with growth in bookings for the entertainment business over 80% year on year in the second quarter. Live entertainment such as concerts and sporting events are important reasons for travel, with three out of four event tickets booked on the platform associated with cross-city travel. Additional travel-related expenses, such as hotel bookings and local consumption, increase during major events, boosting demand across accommodation, transportation, and dining.

A：The company is evolving its partnership model to support healthier competition and sustainable growth. This includes discontinuing the Tier one distribution program and moving partners to a new multi-tiered framework, as well as refining the pricing ecosystem by discontinuing the Tier two distribution program to give partners greater autonomy in commercial decisions. These changes aim to focus competition on service quality, product differentiation, customer experience, and overall performance.

A：To strengthen partner enablement, the company is simplifying platform rules and promotional processes, investing in data technology and international marketing to improve service quality, and updating hotel ranking algorithms to prioritize genuine service and guest satisfaction. Additionally, the company remains committed to consumer protection by enhancing data security and responsible algorithm development. The aim is to create a healthier competitive environment where partners can compete on quality and differentiation, while providing better experiences for consumers and fostering sustainable industry development.

A：Following the antitrust investigation, the company has fully accepted the regulator's decision and views the conclusion as an opportunity to reinforce its core strategic path. The company's strategic priorities focus on improving the value delivered to hotel partners and users, investing in technology and merchant tools to enhance transparency, operational efficiency, customer service, and user experience. AI is being integrated across business lines to improve capabilities and efficiency, and the company continues to invest in globalization strategies, such as inbound travel, international expansion, and supply and technology integration to support network growth and application capability. Going forward, the company aims to comply with regulations, cooperate with regulatory bodies, and strengthen governance frameworks to provide a solid foundation for executing strategies with speed, discipline, and long-term value creation.

A：The new hotel partnership framework aims to improve market competitiveness by simplifying platform rules and promotional processes, and by enhancing service quality through investments in data technology and marketing. This will enable the company to compete on broader value rather than primarily on price. The updated hotel ranking algorithms give greater weight to genuine service and guest satisfaction, and the overall strategy is expected to strengthen the company's position in the market.

A：The new dimensions under the updated collaboration framework include customer feedback, service quality, information level, product competitiveness, and historical conversion rate.

A：The penalties led to a recognition of expenses of RMB 5.18 billion and control revenue of RMB 122 million in the second quarter, which are one-time items not reflecting the underlying business performance. In the near term, there may be some volatility in domestic performance due to the transition to a new operating model and market practices. However, in the long term, the company expects growth to be driven by the strength of its underlying business and its G2 strategy, particularly global expansion, with international business contributing an increasing share of group revenue and incremental growth.

A：The company believes AI will significantly reshape travel discovery, search, and booking, and it is adapting by expanding partnerships with leading AI platforms, exploring new AI discovery channels, and building differentiated travel-specific AI capabilities. It aims to remain relevant in travel discovery and search while leveraging its supply, data, transaction, and fulfillment capabilities to convert intent into bookings.

A：The financial implications of the ongoing AI investment carry different impacts across time horizons. In the near term, there will be an increase in AI-related CapEx for computing infrastructure and AI capabilities, but the investment is primarily application-oriented development and post-training refinement rather than large-scale foundational model building. Over the longer term, the company expects to translate these investments into improvements across the group, leading to greater automation, personalization, improved operational efficiency, and higher conversions and returns on marketing spend. These efficiency and revenue benefits should offset the incremental AI cost and improve the overall economics of the business.

A：Recent trends in the travel market include a short-term impact on travel volume due to the war in the Middle East, higher energy prices, and storms, but the company has observed resilience from customers. They have identified three key trends: premium service, purpose-driven travel, and pro leisure. The company is focusing on these trends by elevating offerings and services to meet and exceed customer expectations.

A：Operational highlights include trip.com achieving strong growth with revenue increasing across products and markets, despite facing challenges in flight demand due to capacity tightening and price hikes. Accommodation continued to deliver strong growth, and attractions and packaged products showed robust growth. Geographically, APAC remains the largest growth contributor, while Europe and the Americas showed faster growth from a smaller base. Distribution channels like mobile bookings and AI agents saw strong growth. Looking ahead, the focus is on scaling across APAC and other international markets by expanding local supplier networks and building brand awareness while maintaining discipline.