Tongcheng Travel (780) investor relations material

Executive summary

• Achieved solid revenue and profit growth in Q2 and H1 2026, driven by core OTA, tourism, and hotel management segments, despite macro headwinds from higher fuel surcharges and airfares.

• Strengthened position in China's mass market, with over 87% of users from non-first-tier cities, and enhanced user engagement through diversified channels and AI integration.

• Expanded hotel management business, including the acquisition of Wanda Hotels and Dida Inc, and accelerated global expansion.

• Integrated AI across business operations, improving efficiency, user experience, and launching new platforms like DeepTrip.

• Achieved over 2 billion cumulative travelers served in 12 months, with annual paying users at 254 million.

Financial highlights

• Q2 2026 revenue reached RMB 5.0 billion, up 6.8% year-over-year; H1 2026 revenue was RMB 10.0 billion, up 10.5%.

• Adjusted net profit for Q2 was RMB 851 million, up 9.8%; for H1, RMB 1.8 billion, up 14.6%.

• Adjusted EBITDA for Q2 was RMB 1.3 billion (margin 25.5%), and for H1 was RMB 2.7 billion (margin 26.6%).

• Core OTA revenue grew 8.4% to RMB 4.3 billion in Q2; accommodation reservation revenue rose 8.0% to RMB 1.5 billion.

• Cash and equivalents as of June 30, 2026: RMB 6,782.3 million.

Outlook and guidance

• Expects Q3 core OTA growth to moderate due to extreme weather; ADR supported by higher hotel mix.

• Transportation revenue to face near-term headwinds; air ticket volume expected to recover in Q3.

• Outbound revenue contribution projected to reach 9% by year-end, with international business expanding.

• Continued investment in AI, technology, and marketing for efficiency and growth; committed to 18% reduction in carbon emission intensity by 2030.

• Management remains positive on long-term growth, citing government support and a shift toward experiential travel.