HONG KONG - Media OutReach - 21 November 2023 - Tongcheng Travel Holdings Limited ("Tongcheng Travel" or the "Company", together with its subsidiaries the "Group", stock code: 0780.HK), an innovator and leader in China's online travel industry, today announced its unaudited consolidated results for the three months ended 30 September 2023 (the "period under review" or "2023Q3"). 2023Q3 Highlights with Year-on-year ChangeRemarkable growth on industry revitalization · Revenue increased by 61.1% to RMB 3,299.3 million, thanks to effective strategies to capitalize on the sustained travel frenzy · Adjusted EBITDA rose by 88.2% to RMB 870.0 million; adjusted EBITDA margin increased by 3.8 percentage points to 26.4% as profitability rose · Adjusted net profit surged by 146.5% to RMB 620.6 million; adjusted net margin widened by 6.5 percentage points to 18.8% · Profit for the period amounted to RMB 515.5 million User base expanded with deepened reach into non-first tier cities · Average MPUs¹ rose by 20.1% to 44.2 million · APUs² grew by 12.1% to historic high of 224.7 million · Over 71% of new paying users on the Weixin platform were from non-first-tier cities in 2023Q3 · Registered users residing in non-first-tier cities accounted for approximately 87% of the total registered users Record-setting growth across core businesses with both volumes and revenues reaching new highs · Transportation ticketing revenue rose by 70.3% to RMB 1,679.9 million · Accommodation reservation revenue grew by 37.7% to RMB 1,127.4 million · Revenue from others* increased by 102.8% to RMB 491.9 million 1. MPUs = Monthly Paying Users, 2. APUs = Annual Paying Users * Revenue from others mainly includes revenues generated from (i) advertising services; (ii) tourism services; (iii) hotel management services; (iv) membership services; (v) ancillary value-added user services; and (vi) corporate travel services. Mr. Ma Heping, Executive Director and Chief Executive Officer of Tongcheng Travel, said, "The domestic travel market in China has experienced a phenomenal recovery since the beginning of 2023, showing stellar rebound as compared to the pre-pandemic period. We delivered accelerated growth in 2023Q3, posting record highs in both transportation ticketing and accommodation reservation businesses in terms of both volumes and revenues. Consumers are eager to explore new scenic spots and travel destinations for unparalleled experiences. We swiftly responded to surging travel demand, flexibly executing our strategies to deepen market reach, enrich service and product offerings, strengthen brand presence, and promote industry digitization to achieve win-win collaborations. We maintain an optimistic outlook on the sustained growth of the China travel industry. Going forward, we will continue to capitalize on the significant room for growth in lower-tier cities and seek opportunities in international markets to address both China's domestic and outbound travel demands." User Base Expansion through Diverse Online and Offline Channels The Group seized rising market opportunities and captured user flows through diverse online and offline user acquisition channels to develop diversified traffic sources. The Group deepened its strategic partnership with Tencent and consistently invested in major channels within the Tencent ecosystem. It teamed up with QQ Browser to provide users with convenient access to their travel products on Weixin mini-program. It also joined hands with Tencent Doc and delivered customized travel-related content targeting younger user groups. Moreover, the Group officially launched a strategic collaboration with a top-notch handset maker in China to provide convenient mobile transportation ticketing and accommodation reservation services to its users. It also widened user reach by pre-installing its App on mobile phones. Its App was selected for the second time by App Store as "Editors' Choice" during the period under review. Offline, the Group leveraged the significant traffic of metro and intra-city buses to expand coverage in lower-tier cities. The offline user acquisition initiatives contributed to the growth of MPUs. During the period under review, the Group's recorded historic highs in both average MPUs and APUs. APUs increased by 12.1% year-on-year to 224.7 million, while the average MPUs increased by 20.1% to 44.2 million, or a 48.3% increase compared with the same period of 2019. Comprehensive Product and Service Offerings Drove Record Performance in Transportation Ticketing and Accommodation Reservation The Group deepened collaborations with airlines, airports and hotels during the period under review, and continued to solidify its edge in the conventional travel segment. It also strengthened its bus ticketing, car-hailing and other public transportation ticketing service scenarios, fulfilling the diverse demands for business...