Hello, and thank you for standing by Tuniu’s 2024 Fourth Quarter and Full-Year Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Mary.

Thank you, and welcome to our 2024 fourth quarter and full-year earnings conference call. Joining me on the call today are Donald Yu, Tuniu's Founder, Chairman and Chief Executive Officer; and Anqiang Chen, Tuniu's Financial Controller. For today's agenda, management will discuss business updates, operational highlights and financial performance for the fourth quarter and fiscal year 2024. Before we continue, I refer you to our Safe Harbor statement in earnings press release, which 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 in RMB. I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Yu.

Thank you, Mary. Good day, everyone. Welcome to our fourth quarter and full-year 2024 earnings conference call. 2024 has been a year filled with achievements and milestones for Tuniu. With the recovery of the tourism market, our business is making steady progress and our profitability continues to grow. On the financial side, in 2024, we achieved our first GAAP profit for the full-year since our listing. On a non-GAAP basis, net income grew by over 70% year-over-year, reaching a record high since our IPO. While demonstrating the company's profitability, we are also needing to share our interim achievements with our shareholders. Therefore, the Board of Directors approved a special cash dividend in March 2025 with approximately $4.2 million allocated for distribution. Additionally, in March 2024, we announced a share repurchase program and have spent over $6.2 million on buybacks throughout the year. In total, we returned approximately $10 million to our shareholders in 2024. For our products, we remain committed to innovation and adapt to evolving customer needs. In addition to continuously upgrading our existing products, we launched new products and a product line such as the Niu Select products to better serve a wider range of customers. Our commitment to self-serve remains strong as we focus on customers' needs and strive to deliver high-quality experiences. We implemented initiatives to improve customer satisfaction rate such as Niu Tour's zero shopping policy for all of its itineraries and a new bundling policy for flight tickets. In terms of channels, we proactively embrace new media and continue to strengthen our large streaming presence. At the same time, we collaborated with more online and off-line partners to serve our customers and strengthen our capabilities in supply chain, products and services. Next, I will provide a more detailed overview of the company's business achievements…

Thank you, Donald. Hello, everyone. Now I will walk you through our fourth quarter and fiscal year 2024 financial results in greater detail. Please note that all the monetary amounts are in RMB unless otherwise stated. You can find the U.S. dollar equivalents of the numbers in our earnings release. For the fourth quarter of 2024, net revenues were RMB102.7 million, representing a year-over-year increase of 3% from the corresponding period in 2023. Revenues from packaged tours were up 3% year-over-year to RMB75.4 million and accounted for 73% of our total net revenues for the quarter. The increase was primarily due to the growth of organized tours. Other revenues were up 3% year-over-year to RMB27.3 million and accounted for 27% of our total net revenue. The increase was primarily due to the increase in the fees for advertising services provided for tourism boards and bureaus. Gross profit for the fourth quarter of 2024 was RMB69.8 million, down 6% year-over-year. Operating expenses for the fourth quarter of 2024 were RMB82.5 million, down 58% year-over-year. Research and product development expenses for the fourth quarter of 2024 were RMB13.3 million, up 28% year-over-year. The increase was primarily due to the increase in research and product development personnel-related expenses. Sales and marketing expenses for the fourth quarter of 2024 were RMB 42.7 million, up 28% 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 fourth quarter of 2024 were RMB26.8 million, down 36% year-over-year. The decrease was primarily due to the decrease in general and administrative personnel-related expenses. Net loss attributable to ordinary shareholders of Tuniu Corporation was RMB24.2 million in the fourth quarter of 2024. Non-GAAP net loss attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based…

Thank you. [Operator Instructions] The first question comes from [Stacy Zhao] (ph) a Private Investor. Please go ahead.

Hi, management, congratulations on a profitable year. Can you share with us your projections for the 2025 revenue and profit? What are some key drivers to support revenue growth? Are you going to maintain quarterly or yearly profitability? Thank you.

Thank you for the questions. In 2025, the total travel market will continue to grow, while the market competition is getting more intense in the form of both quality and price. We will continue to adopt high-quality business development strategy, trying to beat the industry average growth rate. On the product side, we will invest in product upgrading and innovation for our core products. For example, we will introduce more in-depth and single destination tour products for our Niu Tour to better serve and retain our repeat customers. Facing factors such as the intense competition will keep competitive pricing for certain products and the product lines to attract more new customers. Therefore, our gross profit ratio will be negatively impacted this year. On the sales side, we'll continue to expand the diversity of our sales channels. To embrace the changing user habits, we'll expand sales on new media channels. We will leverage our experience and the capabilities in live streaming, expanding to more platforms. Last year, live streaming channel contributed about 10% of our total GMV. For off-line channels, currently, we have over 200 stores nationwide. This year, we'll largely increase the number of off-line stores, maybe double that number. On the technology side, we focus on AI agent. Through combining the power of AI agent with our insights of leisure travel market, we will further enhance our user experience and improve operational efficiency. As for your questions regarding profit, we believe our full year GAAP net income in 2024 has demonstrated Tuniu's ability to be profitable and serve as a meaningful step towards achieving long-term profitability. In 2025, the market is filled with new opportunities and challenges. So we plan to make some investments as mentioned above: in product innovation; sales channel expansion and R&D to further improve user experiences and internal efficiency. With these improvements, we will refine our competitive advantages and consolidate our market position, so as to drive the long-term sustainable growth of Tuniu. Despite our investments, we are still aiming for a profitable year in 2025. Quarterly performance may vary due to the seasonality, and the third quarter is expected to be the season -- the peak season and will contribute the majority of the annual profit. Thank you.

We are now approaching the end of the conference call. 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 for your participation in today's conference. This concludes the presentation. You may now disconnect. Have a good day.