Thank you and welcome to our twenty twenty five first quarter earnings conference call. Joining me on the call today are Donald Yu, Tuniu's Founder, Chairman and Chief Executive Officer and An Qianq Shen, Tuniu's Financial Controller. For today's agenda, management will discuss business updates operational highlights and financial performance for the first quarter of twenty twenty five. Before we continue, I refer you to our Safe Harbor statement in the earnings press release 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 RMB. I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Thank you, Mary. Good day, everyone. Welcome to our first quarter twenty twenty one earnings conference call. In the first quarter our core business maintained steady growth with revenues from packaged tours growing by 19% year over year The domestic travel market demonstrated consistent growth momentum with a notable surge during this year's Spring Festival For outbound tours, despite headwinds faced by some sub Asian destinations long haul destinations continued to perform well.

Thanks to the diversity of our products and the definitions, customers had the flexibility to choose between domestic offerings and nearby international options. As a result, our outbound tour transaction volume achieved double digit year over year [indiscernible] In the first quarter. This year we have adopted more proactive strategies to respond to changing market demands. by leveraging our differentiated products and high quality services Tuniu is able to attract premium customers and increase the repurchase rates rate. Also by capitalizing our supply chain advantages, we have further reduced procurement costs allowing us to return value to customers and offer more competitively priced products to attract a broader customer base. We remain committed to open collaboration [indiscernible] mutually beneficial policies to attract partners explore new sales channels and work closely with the upstream and downstream segments across the industry chain. To better serve our customers. Moreover, we are embracing new AI technologies to enhance the customer experience and our internal operation operational efficiency through innovation. Now, I'd like to walk you through our strategies in more detail. differentiate [indiscernible] and high quality products have always been one of Tuniu's core competitive advantages Our in house developed new tool product offers a unique position in the market as a premium organizer tour product.

Since its launch over a decade ago, many of New Tour's loyal customers have evolved from time travelers to experienced travelers. To meet the evolving demands of our customers, we continue to enhance the travel experience by implementing a zero shopping policy throughout the trip. And some even including ultra hotels and the machine style dining. Meanwhile, we are expanding the variety of destinations [indiscernible] In April, Niu Tour launched its tour to the three countries of the Caucasus. [indiscernible] Which received a 100% satisfaction rate Secondly, in response to increasingly diverse customer needs, we have introduced a wider range of products offering good value for many to attract more price sensitive travelers. For example, our new Selective products have expanded the outbound tour offerings to cover a broader array of international destinations. Providing better options for customers valuing cost effectiveness. With more competitive pricing customers can now explore additional destinations within the same budget. An option that strongly appeals to travel fans. Particularly younger fans. In the first quarter, transaction volume for our new select products increased by over 80% compared to the previous quarter. In terms of our sales, we continue to explore and expand into a diverse range of channels.

In the first quarter, our live streaming channels maintained strong growth. With both transaction and verification volume achieving double digit year over year growth. The contribution of live streaming to the company's total transaction transaction volume increased from 10% in the first quarter last year to over 15% this year. In 2025, we expanded our live streaming product offerings beyond the traditional hotel plus scenic spot packages to include [indiscernible] [indiscernible] such as photography and private tour guides. Catering to more niche customer needs. In terms of packaged tour sales, we continue to promote destination based live streaming.

In March, our in house live streaming shows partnered with several travel influencers to launch a twenty one day on-site live streaming campaign across 10 islands in The Maldives. This campaign generated over RMB100 million in total payment volume. Helping MailDiv related products reach Chinese customers more effectively and boosting overall increased in travel to the rail Regarding offline store expansion, as of the end of the first quarter Tuniu had opened nearly 300 offline stores primarily located in high demand [indiscernible] popular tourist destinations [indiscernible] For example, in March of this year, we launched 10 new stores in a single day in Chengdu. Our offline stores feature travel products tailored for in person promotion helping to create a seamless integration between online and offline services. We also organized in store events and other other marketing activities. To strengthen customer engagement and loyalty. Additionally, these offline stores support our localized procurement efforts and allow us to share resources and grow with our supplier partners contributing to the coordinated development of the local tourism industry, In addition, we are actively developing sales channels such as traffic platforms and the corporate clients. Offering tailored products to meet their specific needs. Example, sales of single items such as five tickets and hotel bookings have grown rapidly on traffic platforms.

For corporate clients, we provide customized growth tours as well as individual and family vacation packages to complement traditional business travel addressing both corporate needs including business trips and team building as well as personal location demand. In terms of technology, in early April, Tuniu launched our self developed love travel AI agent AI assistant Xiao Niu, The assistant integrates vertical travel application scenarios with open source large language models to provide customers with one source services including smart search, automated price comparisons, personalized recommendations and dynamic packaging. Once customers find a product they like, we can book it directly Eliminating pop up borrowing offers and ensuring a transparent and efficient booking experience. During this year's Labor Day holiday, we observed a noticeable increase in user engagement with our AI assistant particularly in searches for flights train tickets and hotel booking. Tuniu has assembled a team of professionals, with deep expertise in both technology and the travel industry. Enabling our R and D efforts to more effectively address key customer pain points. Looking ahead, customers will be able to leverage AI to plan personalized itineraries with greater ease. Making customized travel more convenient efficient and accessible.

In conclusion, Tuniu remains firmly committed to our mission of making travel easier by staying closely aligned with evolving customer needs and continuously expanding our product offering and sales channel options. With the support of AI technology, our service is becoming more intelligent efficient and transparent We will continue to drive innovation in both products and technology to enhance the customer experience and satisfaction unlock the company's growth potential and pursue long term sustainable development I will now turn the call over to An Chang. Our Financial Controller for the financial highlights. Thank you, Donald. Hello, everyone. Now, I will walk you through our first quarter of twenty twenty five financial results in greater detail. Please note that all non monetary amounts are in RMB. Unless otherwise stated. You can find the U. S. Dollar equivalents of the numbers our earnings release. For the first quarter of twenty twenty five, net revenues were RMB117.5 million representing a year over year increase of 9% from the corresponding period in 2024. Revenues from packaged tours were up 19% year over year to RMB99 million. And accounted for 84% of our total net revenues for the quarter. The increase was primarily due to the growth of online tours Other revenues were down 26% year over year to RMB18.5 million and accounted for 16% of our total net revenues.

The decrease was primarily due to the decrease in the commission fees received from other travel related products. Gross profit for the first quarter of twenty twenty five was million down 15% year over year. Operating expenses for the first quarter of twenty twenty five were RMB80.1 million, up 15% year over year. Research and product development expenses for the first quarter of twenty twenty five were RMB14.5 million up 12% year over year. The increase was primarily due to the increase in research and product development personnel related expenses. Sales and marketing expenses the first quarter of twenty twenty five were RMB43.2 million up 17% year over year. The increase was primarily due to the increase in sales and marketing personnel related expenses and promotion expenses. General and administrative expenses for the first quarter of twenty twenty five were RMB22.8 million, up 11% year over year. The increase was primarily due to the impairment of property and equipment net recorded in the first quarter of twenty twenty five. Net loss attributable to ordinary shareholders of Tuniu Corporation was RMB4.7 million in the first quarter of twenty twenty five. 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 that was million in the first quarter of twenty twenty five.

As of 03/31/2025, the company had cash and cash equivalents restricted cash short term investments and long term deposits of RMB1.2 billion. Capital expenditures for the quarter of twenty twenty five were RMB0.8 million. For the second quarter of twenty twenty five, the company expects to generate RMB131 million to RMB136.8 million of net revenues. Which represents a 12% to 17% increase year over year. Please note that this forecast reflects new current and preliminary view on the industry its operations. Which is subject to change. Thank you for listening. We are now ready for your questions.

Operator?

Thank you. The question and answer session of this conference call will start in a moment. In order to be fair to all callers who wish to ask questions, we will take one question at a time from each caller.

If you have more than one question, after your has been addressed. We have our question from the line of Lee Don Yu. A Private Investor. Please go ahead.

Hi, management. Thank you for taking my questions. Well, my question is about your product strategy. Would you please give me more color on why and how the company offers more competitively priced products in the first quarter? And how does the price strategy track to your revenues and profits? Moreover, my question is about the outlook for the second quarter. Will you be profitable in the second quarter? That's all. Thank you.

Thank you for the questions. Of all, I shall see quality takes priority in our strategies. High quality products [indiscernible] and help us build a large loyal customer base. We see different needs from customers Some prefer enjoyable experience while others like favorable price. [indiscernible] our price range to attract different customer growth [indiscernible] products are attractive among new customers and the customers from lower tier cities. We also observed that competitive pricing helps enhance repurchase With favorable prices customers can now plan more trips within the same budget. This year the market's competition is getting more intense Apart from through OTA, travel products are accessible to customers via many channels such as live streaming, social media, and community. As well as offline stores. So this year we provide more competitively priced products to compete with other channels and consolidate our market share to implement our strategy firstly, we consolidate the supply chain through centralized and direct procurement are able to get more favorable resources resources and lower the purchasing cost. Secondly, we use technical methods including AI technology to assist product pricing ensuring the competitiveness of our price. On product side, this year we increased the supply of new select products which is an affordable product line [indiscernible] Last year On sales side, we will launch various promotions and discounts to our customers For example, our membership card holder can enjoy discounts while booking at Tuniu.

Competitively price products help us attract more customers contributing to the increase of our GMV. In the first quarter, transaction volume for our new select products increased by over 80% compared to the previous quarter. As we return value to our customers, this year our gross profit ratio will be lower compared to the previous year. We'll adopt measures to further control internal costs and try to achieve profitability for the second quarter. Thank you.

Thank you.

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

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

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