Tongcheng Travel (780) investor relations material

Executive summary

• Revenue grew 6.8% year-over-year to RMB4,987.0 million for Q2 2026 and 10.5% to RMB9,992.8 million for H1 2026, with solid profit growth despite macro headwinds from high fuel surcharges and subdued long-haul demand.

• Adjusted net profit rose 9.8% year-over-year to RMB850.9 million for Q2 and 14.6% to RMB1,792.0 million for H1, with improved margins.

• Focused on core OTA business, international expansion, and rapid hotel management growth, with international accommodation and air ticketing reaching record highs.

• Enhanced user engagement and value through diversified channels, marketing campaigns, and AI integration, with annual paying users reaching 253.9 million.

• Completed acquisition of Dida Inc, expanding into carpooling and mobility, and integrated Wanda Hotels & Resorts to accelerate global hotel expansion.

Financial highlights

• Q2 2026 revenue: RMB4,987.0 million (+6.8% YoY); H1 2026 revenue: RMB9,992.8 million (+10.5% YoY); adjusted net profit for Q2: RMB850.9 million (+9.8% YoY); for H1: RMB1,792.0 million (+14.6% YoY).

• Q2 2026 adjusted EBITDA: RMB1,271.6 million (+7.3% YoY); margin 25.5%. H1 2026 adjusted EBITDA: RMB2,660.7 million (+13.5% YoY); margin 26.6%.

• Core OTA revenue for Q2: RMB4.3 billion (+8.4% YoY); accommodation reservation revenue: RMB1.5 billion (+8.0% YoY); international accommodation revenue rose to 4% of total.

• Transportation ticketing revenue declined 2.3% YoY in Q2 to RMB1,838.2 million due to higher fuel prices.

• Other business revenue (including hotel management) surged 35.7% YoY in Q2 to RMB1,025.4 million, with over 3,500 hotels in operation and 2,000+ in pipeline.

Outlook and guidance

• Management remains positive on long-term growth, supported by government tourism initiatives and a shift toward experiential travel.

• Short-term headwinds include extreme weather, volatile fuel costs, and regulatory adjustments.

• Focus on core OTA, international expansion, hotel management, and leveraging AI for efficiency.

• Outbound revenue contribution projected to reach 9% by year-end; ADR supported by higher hotel mix.

• Committed to sustainability, aiming for 18% reduction in carbon emission intensity by 2030.