Q2 2024 Full Truck Alliance Co Ltd Earnings Call

August 21, 2024

Operator: Ladies and gentlemen, good day and welcome to Full Truck Alliance's second quarter 2024 earnings conference call. Today's conference is being recorded.

Operator: Ladies and gentlemen, good day and welcome to Full Truck Alliance's second quarter

Operator: Ladies and gentlemen, good day and welcome to Full Track Alliance's second quarter 2024 earnings conference call. Today's conference is being recorded.

Ladies and gentlemen, good day and welcome to full truck alliances second quarter 'twenty 'twenty four earnings conference call.

Operator: 2024 earnings conference call.

Operator: Thank you for attending today's presentation.

Speaker Change: Today's conference is being recorded at this time I would like to turn the conference over at our Mountain now head of Investor Relations. Please go ahead.

Mao Mao: At this time, I would like to turn the conference over to Mal-Mal, head of Investor Relations. Please go ahead.

Operator: At this time, I would like to turn the conference over to Mao Mao, Head of Investor Relations.

Operator: You may now disconnect.

Mao Mao: Please go ahead.

Mao Mao: Thank you, operator. Please note that today's good discussion will contain full-looking statements relating to the company's future performance, which are intended to qualify for the safe harbor formulability as established by the U.S. private security litigation reform act. Such statements are not guaranteed of future performance and are subject to certain risks and uncertainty, assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to deferment, really, from those mentioned in today's transformation and discussion.

Operator: Thank you, Operator.

Speaker Change: Thank you operator. Please note that today's discussion will contain forward looking statements relating to the company's future performance, which I'm trying to qualify for the safe Harbor from liability as established by the U S private securities litigation that format.

Mao Mao: Please note that today's discussion will contain forward-looking statements relating to the company's future performance, which are intended to qualify for the safe harbor from liability as established by the U.S. private security litigation reform act. Such statements are not guaranteed of future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and discussion.

Speaker Change: Statements are not guarantees of future performance and are subject to certain risks and uncertainties assumptions and other factors.

Speaker Change: These risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and discussion.

Mao Mao: A general discussion of the risk factors that could affect FDA's business and financial results is included in certain findings of the company with the FCC.

Speaker Change: A general discussion of the risk factors that could affect F. G H business and financial results is included in certain filings the company with the S&P.

Mao Mao: The general discussion of the risk factors that could affect FDA's business and financial results is included in certain findings of the company with the FTC.

Mao Mao: The company does not undertake any obligation to update this full-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. For a definition of non-GAAP financial measures and a reconfiguration of GAAP to non-GAAP financial results, please see the earnings release issued earlier today.

Mao Mao: The company does not undertake any obligation to update this forward-looking information, except as required by law.

The company does not undertake any obligation to update it for our forward looking information.

Speaker Change: As required by law.

Mao Mao: During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today.

Speaker Change: During today's call management will also discuss certain non-GAAP financial measures for comparison purpose only.

Speaker Change: A definition of non-GAAP financial measures and of the company Asian of GAAP to non-GAAP financial results. Please see the earnings release issued earlier today.

Mao Mao: Joining us today on a call from FTA's senior management side are Mr. Hui Zhang, our founder, chairman and CEO, and Mr. Simon Tai, our CFO.

Mao Mao: Joining us today on a call from FDA's senior management side, our Mr. Hweijum, our founder, chairman, and CEO, and Mr. Salantai are available. Management will begin with the pending month, and the call will conclude with the tarnish session.

Joining us today on our call from FTA Senior management side, all Mr. Li Zhang our founder Chairman and CEO and Mr. <unk> our CFO.

Mao Mao: Management will begin with prepared remarks and the call will conclude with a Q&A session.

Speaker Change: Management will begin with prepared remarks, and the call will conclude with attorney session.

Mao Mao: As a reminder, this conference is being reported. In addition, webcasts and replays of this call will be available on FDA's investor relations website at ir.photalkalines.com.

Operator: As a reminder, this conference is being recorded.

Speaker Change: As a reminder, this conference is being recorded in addition, a webcast and replay of this call will be available on <unk> Investor Relations website.

Mao Mao: In addition, a webcast replay of this call will be available on FTA's investor relations website at ir.fulltruckalliance.com.

Operator: Today's conference is being recorded. At this time,

John <unk>: <unk> dot photo airline's dot com I will now turn the call over to our founder Chairman and CEO Mr. John <unk>. Please go ahead Sir.

Mao Mao: I will now turn the call over to our founder, chairman, and CEO, Mr. Zhang.

Mr. Jock: I will now turn the call over to our founder, chairman, and CEO, Mr. Jock. Please go ahead. website at ir.photalkalines.com. In addition, this call will be available on FDA's website at ir.photalkalines.com.

Speaker Change: Clayton and almond milk.

Speaker Change: Got it cheaper.

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Speaker Change: Sometimes you wonder if without Gordian knot worldwide.

Well, ladies and gentlemen that crude oil.

Speaker Change: Sure sure.

Speaker Change: Just wondering.

Speaker Change: It would seem to me.

Speaker Change: Thank you John.

Speaker Change: Oh Geez, we're lucky.

Speaker Change: Good morning.

Lee Cooper.

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Speaker Change: Tony.

Don: Sure Don.

Don: Cleveland Marine drive.

Speaker Change: No no no.

Speaker Change: Actual golf, which somewhat holding back on going so that did not.

Speaker Change: Hi, Andrew I'm not sure there's a lot sooner.

Speaker Change: Shifting.

Speaker Change: Sure sure.

Hui Zhang: Please go ahead.

Hello, everyone. Thank you for Johnny.

Operator: I would like to turn the conference over to Mao Mao, Head of Investor Relations.

Speaker Change: On our second quarter 2024 earnings conference call.

Hui Zhang: 大家好,欢迎各位参加满帮2024年第二季度的业绩变化会,回顾20年的上半年,面对复杂多变的宏观环境。我們繼續堅定地推動物流行業的數字化、智能化富能企業根據物流競爭力在企业降本增效的大潮流之下我们基于平台双端的规模效应为客户带来极致的性价比和交易效率, 并持续驱动公司增长飞轮运转我们上半年的单辆同比增速达到了25% 大幅超过了货运大盘个位数的增长速度反映出我们的数字化智能化的模式正在持续的替代传统的性价手车和计划物流, Hello everyone, thank you for joining us today on our second quarter 2024 EARNES conference call.

Speaker Change: Despite the complex and volatile macro environment, we continue to advance the digitalization of the logistics industry in the first half of 'twenty 'twenty four empowering enterprises to enhance logistics comparison.

Mao Mao: Please go ahead.

Hui Zhang: Despite the complex and volatile macro environment, we continue to advance the digitalization of the logistics industry in the first half of 2024, empowering enterprises to enhance their logistics competitiveness.

Speaker Change: Amidst the broader industry trend of cost reduction and efficiency in headwinds, we leverage our <unk> platform scale effect to deliver exceptional cost effectiveness and transaction efficiency. Each I'll, let users driving the company's growth flywheel, our fulfilled orders in the first half of 2024.

Hui Zhang: Amidst the broader industry trend of cost reduction and efficiency enhancement, we leveraged our dual-end platform's skill effect to deliver exceptional cost effectiveness and transaction efficiency to our users, driving the company's growth flywheel.

Hui Zhang: Our fulfilled orders in the first half of 2024 grew by 25% year-over-year, significantly outpacing the single-digit growth in the overall free market. This exceptional performance demonstrated that our digital and intelligent logistics model is steadily replacing the traditional offline solutions, including acquaintance truckers and contracted shipments.

Speaker Change: <unk> grew by 25% year over year. So can you be currently outpacing the single digit growth in the overall freight market.

Speaker Change: Exceptional performance demonstrated that our digital and intelligent logistics model designate your casing traditional offline solution, including equivalents truckers and a contracted shipment.

Mr. Jock: In addition, this call will be available on FDA's Let's take a look at the results of the three-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-way-wayway-way-way-way-way-way-way-way-way-way-way-way-way-way-way I think the second quarter, our key operational initiatives have been highly effective, particularly in terms of shipper user acquisition, enhancing the trucker supply ecosystem and boosting monetization efficiency. We are committed to becoming the one-stop shipping platform for 30 million more-and-medium-sized shippers, focusing on acquiring high-quality users through various channels. In the second quarter, our average daily count of shippers for fueling initial transaction reaching a new record high. Additionally, we further improved new shippers' user experience through refined operational strategies.

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Jamie: Couldn't be interesting that we're launching.

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Farquhar: Thanks, you Farquhar and cool them down.

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Speaker Change: What it means.

Speaker Change: So would you call it cyclical hotshots social as you go forward.

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Toby Keith: Toby Keith.

Toby Keith: At this time.

Speaker Change: So do you feel like you do a woman who wore me out telecom of course, either your question Nathan.

Speaker Change: So two questions you do it on some buckets.

Speaker Change: When you talked about changing the oceans and John.

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Speaker Change: Todd.

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Speaker Change: Single B.

Speaker Change: But in general you'll we should've getting redemptions that you thought it would be.

Speaker Change: So Gulf within them.

Speaker Change: Jim will chime in on that.

Bumpy, but hold on a T that Jackson.

Hui Zhang: 二季度以來,我們的關鍵運營動作,所有成效分別體現在貨主拉新供給生態和變現質量三個方面,我們致力於成為三千萬中小貨主的一代式發貨入口,因此我們將持續關注多渠道的高質量拉新貨客,二季度我們的日均首旅用戶再創新高,同時我們進一步關注新手氣貨主的使用體驗,通過精細化的運營手段提升貨主首旅後的評測和轉化效率,最終使我們的二季度發貨貨主越貨再次破風。達到了265萬,同比提升了32.8%。在司機社,本紀錄我們通過了想好或實際等級和行為分等供給客組合權以流量分發和權益分配為抓手,牽引運力調性增長,得益於高質量運力的增長,本紀錄的約率達到了 33.7%,同比提升了3.4個百分點,創了歷史新高。而在變現指標方面,本季度我們進一步有序地驗證了平台巨大的貨幣化潛力,推動收入高速增長,以上成績進一步證明了滿幫對時過兩端,創造了難以替代的價值。 Since the second quarter, our key operational initiatives have been highly effective, particularly in terms of shipper user acquisition, enhancing the trucker supply ecosystem, and boosting monetization efficiency.

Speaker Change: I think the second quarter, our key operational initiatives have been highly effective particularly in terms of the ship our user acquisition enhancing the truckers apply ecosystem and boosting monetization efficiency. We are committed to becoming the one stop shopping platform for 40 million small and medium sized the shippers focused.

Hui Zhang: We are committed to becoming the one-stop shipping platform for 30 million small and medium-sized shippers, focusing on acquiring high-quality users through various channels.

On acquiring high quality users through various channels.

Hui Zhang: In the second quarter, our average daily count of shippers fulfilling initial transaction reaching a new record high. Additionally, we further improved new shippers' user experience through refined operational strategies designed to enhance their transaction frequency and conversion efficiency after their first shipment.

Speaker Change: In the second quarter, our average daily count of ship her fulfill the initial transaction, reaching a new record high. Additionally, we further include new shippers user experience through refined operational strategies designed to enhance their connections frequency and conversion efficiency after their first shipments.

Mr. Jock: Designed to enhance their transaction frequency and conversion efficiency after their first shipment. As a result, our average shipper M&U reached $2.65 million, an increase of 32.8% in over year. On the trucker side, we focused on a combination of strategies, including premium cargo building, tiered trucker release system, and trucker credit scores, all of which leverage traffic distribution and benefit allocation to promote healthy capacity growth on the platform. Thanks to the increase in high-quality transportation capacity, our fulfillment rate climbed to a record high of 33.7% in a quarter of nearly 3.4% in over year. As for monetization, our record revenue growth in a quarter validated the platform's immense monetization potential.

Hui Zhang: As a result, our average shipper MAUs reached 2.65 million, an increase of 32.8% year-over-year.

Speaker Change: As a result, our leadership here I mean, you reached to six 5 million an increase of 32, 8% year over year.

Hui Zhang: On the trucker side, we focused on a combination of strategies, including premium cargo bidding, tiered trucker rating system, and trucker credit scores, all of which leverage traffic distribution and benefit allocation to promote healthy capacity growth on the platform.

Speaker Change: On the truckload side, we focused on a combination of strategies, including premium cargo bidding she had a trucker ready system and trucking private schools, all of which leverage traffic distribution benefits allocation to promote healthy capacity growth on our platform.

Hui Zhang: Thanks to the increase in high-quality transportation capacity, our fulfillment rate climbed to a record high of 33.7% in the quarter, up nearly 3.4 percentage points year-over-year.

Speaker Change: Thanks to the increase in high quality transportation capacity, our fulfillment rate climbed to a record high of 43 point, you've got upset in the quarter up nearly three full percentage points year over year.

Hui Zhang: As for monetization, our rapid revenue growth in the quarter validated the platform's immense monetization potential.

Speaker Change: As for monetization.

Speaker Change: Rapid revenue growth in the quarter validates the purple in men monetization potential.

Mr. Jock: With accomplishments, highlights that it replaced the value that FTA provides to growth trucker and shippers. We now have the opportunity to show that we have reached 27.2% of the total income reached 27.6% in a quarter of a year. At the same time, the total income was reduced to $1 million. At the same time, the total income reached 3.6% in a quarter of a year. The total income reached 30% in a quarter of a year. The total income was reduced to $1 million in a quarter of a year. The total income reached 9.7% in a quarter of a year.

Hui Zhang: These accomplishments highlight the irreplaceable value that FTA provides to broad truckers and suppliers.

Speaker Change: Accomplishment highlights the get rid of it.

Speaker Change: Irreplaceable value that FTA provides both truckers kashagan.

Speaker Change: But in general.

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Schindler: Schindler to 19.

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No we didn't.

Treatment, what crazy because I don't know, who the Geneva Auto show didn't cheat Tobey.

Mr. Jock: The total income reached 34.3% in a quarter.

Speaker Change: <unk> tends to be said.

Mao Mao: Thank you, operator.

Mr. Jock: This quarter's solid operational performance resulted in another set of strong financial results, once again exceeding market expectations. Our total net revenues in the quarter, which are being 2,764 million, up 34.1% over year. Among them, transaction service revenues grew by 63% over year and accounted for more than 34% of our total revenues, becoming a new growth engine as we continue to optimize our revenue structure. Capitalizing our revenue optimization and operating leverage, we also steadily improved our property. Leng Gap adjusted operating income and adjusted net income increased by 55.1% and 34.7% over year to R&B 699 million and R&B 971 million, respectively.

Hui Zhang: 穩健的運營表現幫助我們財務指標再次操縱了市場預期二季度集團總收入達到了27.64億元同比增長34.1% 同時集團收入結構持續優化, 交易服務收入同比增速達到了63%,佔集團總收入比例超過了30%,成為了新的增長引擎,隨著收入結構的優化和經營槓桿發揮作用,我們的利潤率也永不提升,非美國快遞準則下調整後的營業利潤達到了6.99億元,同比增長55.1%,非美國快遞準則下調整後的淨利潤達到了9.7億元, 同比增長34.3% This quarter's solid operational performance resulted in another set of strong financial results, once again exceeding market expectations. Our total net revenues in the quarter reached RMB 2,764 million, up 34.1% year-over-year. Among them, transaction service revenues grew by 63% year-over-year and accounted for more than 34% of our total revenues, becoming a new-birth engine as we continue to optimize our revenue structure. Capitalizing on our revenue optimization and operating leverage, we also steadily improved our profits. Lung Gap adjusted operating income and adjusted net income increase by 55.1% and 34.2% year-over-year to RMB 699 million and RMB 971 million respectively.

Speaker Change: This quarter's solid operational performance resulted in another set of strong financial results once again exceeding market expectations.

Mao Mao: Please note that today's discussion will contain forward-looking, statements relating to the company's future performance, which are intended to qualify for the safe harbor from liability as established by the U.S. Private Security Litigation Reform Act. Such statements are not guaranteed of future performance and are subject to certain risks, and uncertainty, assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's plenary and discussion.

Mao Mao: A general discussion of the risk factors that could affect FTA's business and financial results is included in certain findings of the company with FTC.

Speaker Change: Total net revenue in a quarter. It reached RMB 2000, 764 million up 34, 1% year over year, our modem transaction service revenues grew by 63% year over year and accounted for more than 34% of our total revenue, becoming a new growth engine as we continue to optimize.

Speaker Change: The revenue structure.

Speaker Change: Capitalizing on our revenue optimization and operating leverage we also steadily improved our profit.

Speaker Change: non-GAAP adjusted operating income and adjusted net income increased by 55 point, what cause that and 34, 2% year over year to RMB 699 million and RMB 971 million respectively.

Hui Zhang: 今年七月,党的二十届三中全会再次强调了发展新制生产力和降低全社会物流成本,满帮作为物流新制生产力的代表,持续加大数字化智能化基建投入,同时积极推动新能源运力发展,二十年上半年,集团新能源运力订单占比接近百分之二十,增速翻盘,展望下半年,我们有信心通过数字化、智能化、绿色化引领物流行业降本增效, 为用户,为社会创造更大的价值。 This July, the 3rd Plenary Session of the 20th Central Committee of the Communist Party of China reiterated the importance of cultivating new quality productive force and reducing logistic costs across China. As a representative of intelligent productive force in the logistics industry, FTA continues to invest in digitalization and intelligent infrastructure construction, while actively promoting the development of new energy transportation capacity.

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Kosta: Kosta you trade them.

Kosta: When you do that.

Speaker Change: Tend to kind of be chicken by the us central part of that John and Siobhan will Nielsen in pool.

Speaker Change: Xinhua news of what you mean.

Joe: Thanks, Joe.

Rachel: Rachel will hold up cantata junction.

Mr. Jock: Mr. Li, the third preliminary session of the 20th Central Committee of the Communist Party of China reiterated the importance of calculating new quality productive force and reducing logistic cars across society. As a representative of intelligent productive force in the logistic industry, FDA continues to invest in digitalization and intelligent infrastructure construction, while actively promoting the development of new energy transportation capacity. In the first half of 2024, the number of orders fulfilled by our electronic vehicles increased by 100% over year and contributed nearly 20% of total order.

Speaker Change: This July the third plenary session of the 20th Central Committee of the Communist Party, China reiterated the importance of colony, we think new quality productive floor and reducing logistics costs across society is that representative of intelligence productive for us in the law.

Operator: Ladies and gentlemen, good day and welcome to Full Truck Alliance's second quarter, 2024 earnings conference call.

Operator: Ladies and gentlemen, good day and welcome to Full Truck Alliance's second quarter, 2024 earnings conference call. Today's conference is being recorded.

Operator: Today's conference is being recorded.

Speaker Change: Six industry FTA continues to invest in digitalization and intelligent infrastructure construction, well actively promoting the development of new energy transportation capacity.

Mao Mao: At this time, I would like to turn the conference over to Mao Mao, Head of Investor Relations.

Mao Mao: At this time, I would like to turn the conference over to Mao Mao, Head of Investor Relations. Please go ahead. Thank you, operator. Please note that today's good discussion will contain four looking statements relating to the company's future performance, which are intended to qualify for the safe harbor formulability, as established by the US private security litigation reform act. Such statements are not guaranteed a future performance and are subject to certain risks and uncertainties, assumptions and other factors.

Operator: Please go ahead.

Mao Mao: Thank you, operator.

Mao Mao: Please note that today's good discussion will contain four looking statements relating to the company's future performance, which are intended to qualify for the safe harbor formulability, as established by the US private security litigation reform act. Such statements are not guaranteed a future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the company's control and could cause actual results to deferment really from those mentioned in today's summary and discussion.

Hui Zhang: In the first half of 2024, the number of free orders fulfilled by our electronic vehicles increased by 100% year-over-year and contributed nearly 20% of total order volume.

Speaker Change: In the first half of 'twenty 'twenty four the number of orders fulfilled by our electronic vehicles increased by 100% year over year and contributed nearly 20% of the total order volume.

Mr. Jock: Looking ahead, we are confident that we will continue to lead the logistic industry in cost reduction and efficiency improvement through digitalization, intelligence, and green practice, creating value for all of our users and society as a whole.

Hui Zhang: Looking ahead, we are confident that we will continue to lead the logistics industry in cost reduction and efficiency improvement through digitization, intelligence, and green practices, creating greater value for all of our users and society as a whole.

Speaker Change: Going ahead, we are confident that we will continue to lead the logistics industry in cost reduction and efficiency improvements through Digitization intelligence and green practices.

Mao Mao: Some of these risks are beyond the company's control and could cause actual results to deferment really from those mentioned in today's summary and discussion. A general discussion of the risk factors that could affect FDA's business and financial results is included in certain findings of the company with the FCC. The company does not undertake any obligation to update this full looking information, except as required by law. During today's call management will also discuss certain non-gap financial measures for comparison purposes only.

Speaker Change: Creating value for all of our users and society as a whole.

Speaker Change: 70 of them unless you're going to other cyber week two digit Huntsville.

Mao Mao: A general discussion of the risk factors that could affect FDA's business and financial results is included in certain findings of the company with the FCC. The company does not undertake any obligation to update this full looking information, except as required by law.

Speaker Change: Got it.

Mr. Jock: Thank you, everyone.

Hui Zhang: 下面我把时间交给Simon为大家具体介绍一下我们科技组的业绩表现, Thank you everyone, let me pass the call over to our CFO Simon, who will provide an update on our second quarter business progress and financial results.

Mao Mao: The company does not undertake any obligation to update this forward-looking information, except as required by law.

Speaker Change: Thank you everyone. Let me pass the call over to our CFO, Simon who will provide an update on our second quarter business progress and financial results.

Simon: Let me pass the call over to our CEO, Simon, who will provide an update on our second quarter business progress and financial results. Thank you, Mr. John, and thanks everyone for making time to join our call today. I will now provide an overview of our operational and financial results for the second quarter of 2024. Despite macroeconomic challenges and pressure from extreme weather conditions, such as prolonged heavy rains that impacted shipments during the quarter, we maintained robust overall growth on our platform driven by an expanding shipper user base and higher fulfillment efficiency fueled by our enhanced network effect.

Simon Tai: Thank you Mr. John and thanks everyone for making time to join our call today.

Simon: [noise]. Thank you Mr. John and thanks, everyone for making time to join us.

Mao Mao: During today's call, management will also discuss certain non-gap financial measures for comparison purposes only. For a definition of non-gap financial measures and a reconciliation of gap to non-gap financial results, please see the earliest release issued

Mao Mao: During today's call management will also discuss certain non-gap financial measures for comparison purposes only. For a definition of non-gap financial measures and a reconciliation of gap to non-gap financial results, please see the earnings release issued earlier today.

Simon: Call today.

Simon Tai: I will now provide an overview of our operational and financial results for the second quarter of 2024. Despite macroeconomic challenges and pressure from extreme weather conditions such as prolonged heavy rains that impacted shipments during the quarter, we maintained robust overall order growth on our platform, driven by an expanding shipper user base and higher fulfillment efficiency fueled by our enhanced network effect. Our fulfilled orders increased by 22% year-over-year to 49.1 million in the second quarter. Building on last quarter's momentum, our fulfillment rate also continued to rise in the second quarter, reaching approximately 33.7 percent, over three percentage points year over year.

Mao Mao: earlier today.

Mao Mao: For a definition of non-gap financial measures and a reconciliation of gap to non-gap financial results, please see the earnings release issued earlier today.

Simon: I will now provide an overview of our operational and financial results for the second quarter of 2024.

Mao Mao: Joining us today on the call from FTA's senior management side are Mr. Hui Zhang, our founder, chairman, and CEO, and Mr. Simon Tai, our CFO.

Mao Mao: Management will begin with prepared remarks and the call will conclude with a Q&A session.

Simon: Despite macroeconomic challenges and pressure from extreme weather conditions, such as prolonged heavy rains that impacted shipments during the quarter.

Mao Mao: Joining up today on a call from FDA's senior management side, our Mr. Huijian, our founder, Chairman M.C.O, and Mr. Samen Tai, our CEO.

Mao Mao: Joining up today on a call from FDA's senior management side, our Mr. Huijian, our founder, Chairman M.C.O, and Mr. Samen Tai, our CEO. Management will begin with the pending month and the call will conclude with the training session. As a reminder, this conference is being recorded. In addition, a webcast or a play of this call will be available on FDA's invasive relations website at iR.photalkalines.com.

Simon: We maintained a robust overall order growth, although platform driven by an expanding shipper user base and higher fulfillment efficiency fueled by our in house.

Mao Mao: Management will begin with the pending month and the call will conclude with the training session.

Operator: As a reminder, this conference is being recorded.

Operator: In addition, a webcast or a play of this call will be available on FDA's invasive relations website at iR.photalkalines.com.

Network effect.

Simon: Our fulfilled orders increased by 22% year over year to 49.1 million in the second quarter.

Simon: A few others increased by 22% year over year to $49 1 million in the second quarter.

M.C.O.: I will now turn the call over to our founder, Chairman M.C.O.

M.C.O.: I will now turn the call over to our founder, Chairman M.C.O. Mr. Jock, please go ahead.

Simon: Group. Building on last quarter's momentum, our fulfillment rate also continued to rise in a second quarter, reaching approximately 33.7% over 3% each point's year over year. With the number of small and medium sized direct shippers growing faster than our 1688 membershippers, our shipper structure continued to improve, leading to an increased overall structure. In the second quarter, the other contribution from our 688 membershippers and non-membershippers climbed to 48%, breaking the record set last quarter. In addition, higher fulfillment rates among our 688 members and non-membershippers throw the improvement in our overall fulfillment rate. Looking ahead, we are confident there's significant potential to further elevate our fulfillment rate through ongoing product and service upgrades, as well as continued refinement to our freight matching services infrastructure.

Simon: Building on last quarter's momentum are fulfilled our fulfillment rates also continue to rise in the second quarter, reaching approximately 33, 7% over three percentage points year over year.

M.C.O.: Mr. Jock, please go ahead.

Simon: With a number of small and medium sized direct shippers growing faster than our 1688 member shippers.

Simon Tai: With the number of small and medium-sized direct shippers growing faster than our 1688 member shippers, our shipper structure continues to improve, leading to an enhanced overall auto structure.

Speaker Change: Super structure continue to improve leading to them in coast overall, although structure and.

Simon Tai: In the second quarter, the order contribution from our 688 membershippers and non-membershippers climbed to 48%, breaking the record set last quarter. In addition, higher fulfillment rates among our 688 members and non-membershippers drove the improvement in our overall fulfillment rates.

Speaker Change: In the second quarter, the order contribution from our six state aid membership Bruce a nonmember shippers climbed to 48% breaking the record set last quarter. In addition, higher fulfillment rates among our 688 member and non membership growth drove the improvement in our overall fulfillment right.

M.C.O.: [inaudible] Let's move on to the second round.

Speaker Change: <unk>.

Simon Tai: Looking ahead, we are confident there is significant potential to further elevate our fulfillment rate through ongoing product and service upgrades as well as continued refinement, to our freight matching services infrastructure.

Speaker Change: Looking ahead, we are confident there's a significant potential to further.

Speaker Change: Elevate our fulfillment rate through ongoing product and service upgrades as well as continued refinement.

Speaker Change: Two our freight matching services infrastructure.

Simon: Turning to our user base, we continue to make strong progress with our shipper users in the second quarter, as evidenced by our average shipper MAUs reaching 2.65 million, representing an increase of 32.8% year over year and 23.7% quarter over quarter. This quarter's rapid shipper user gain was again attributed to growth among our 688 membershippers and non-membershippers who are mostly low and medium frequency direct shippers. As we enter the second quarter, we continue to ramp up our new shipper acquisition efforts, leverage in multiple online channels to identify and convert high quality new shippers. In particular, we focused on the onboarding and retention of new users, making every effort to provide an exceptional human experience during their first three trials.

Simon Tai: Turning to our user base, we continue to make strong progress with our shipper users in the second quarter, as evidenced by our average shipper MAUs reaching 2.65 million, representing an increase of 32.8% year-over-year and 23.7% quarter-over-quarter.

Turning to our user base, we continued to make strong progress with our super users in the second quarter as evidenced by our average shipper I may use reaching 2.65 million, representing an increase of 32, 8% year over year, and 23, 7% quarter over quarter. This.

Simon Tai: This quarter's rapid shipper user gain was again attributed to growth among our 688 member shippers and non-member shippers who are mostly low and medium frequency direct shippers.

Speaker Change: Rapid shipper user game was again attributed to growth among our 688 membership and non members shippers, who are mostly low and medium frequency direct shippers.

Simon Tai: As we enter the second quarter, we continue to ramp up our new shipper acquisition efforts, leveraging multiple online channels to identify and convert high-quality new shippers.

Speaker Change: As we enter the second quarter, we continued to ramp up our new shipper acquisition efforts leveraging multiple online channels to identify and convert high quality new shippers.

Simon Tai: In particular, we focused on the onboarding and retention of new users, making every effort to provide an exceptional human experience during their first three trials.

Speaker Change: In particular, we focused on the on boarding and retention of new users, making every effort to provide an exceptional experience during their first three trials.

Simon: We expect ongoing growth in our shipper base thanks to this effective strategy. Furthermore, we achieved consistently robust shipper activity, with our shipper member 12 months, rolling retention rate remaining about 80% in the second quarter. In addition to our success with shippers, our trucker users have become increasingly dependent on our platform thanks to the value we bring to the trucker cargo matching process. As of the end of the second quarter, the number of active truckers for feeding orders through FTA over the past 12 months reached 3.98 million, maintaining sequential growth. Additionally, our next month's retention of truckers who responded to others remained above 85%, indicating continued strong users' thickness.

Simon Tai: We expect ongoing growth in our shipper base thanks to this effective strategy. Furthermore, we achieved consistently robust shipper activity with our shipper member 12-month rolling retention rate remaining above 80% in the second quarter.

Speaker Change: We expect ongoing growth in our shipper base. Thanks to this effective strategy.

Speaker Change: Furthermore, we achieved consistently robust shipper activity with our shipper remember a 12 month rolling retention rate remaining above 80% in the second quarter.

Simon Tai: In addition to our success with shippers, our trucker users have become increasingly dependent on our platform thanks to the value we bring to the trucker cargo matching process. As of the end of the second quarter, the number of active truckers who were feeding orders through FTA over the past 12 months reached 3.98 million, maintaining sequential growth. Additionally, our next month's retention of truckers who responded to orders remained above 85 percent, indicating continued strong user stickiness.

Speaker Change: In addition to our success with shippers are trucker users have become increasingly dependent on the platform. Thanks to the value we bring to the trucker cargo matching process.

Speaker Change: That's not the end of the second quarter. The number of active truck Christopher feeding all just through F. T. A over the past 12 months reached 398 million maintaining sequential growth. Additionally, our next month retention of truckers, who responded to others remained above 85%, indicating.

M.C.O.: [inaudible] Thanks to the second quarter, our key operational initiatives have been highly effective, particularly in terms of shipper users.

M.C.O.: [inaudible] Let's move on to the second round. [inaudible] Thanks to the second quarter, our key operational initiatives have been highly effective, particularly in terms of shipper users. We are committed to becoming the one-stop shipping platform for 30 million more and medium-sized shippers focusing on acquiring high-quality users through various channels. In the second quarter, our average daily count of shippers for fueling initial transaction reaching a new record high. Additionally, we further improved new shippers' user experience through refined operational strategies designed to enhance their transaction frequency and conversion efficiency after their first shipment.

Speaker Change: Strong user stickiness in.

Simon: In the second quarter, the average number of quarterly fulfilled orders per active trucker for feeding orders on a platform reached an all-time high, testament to their continuously increasing wallet share activities. Furthermore, our refinement to our trucker operation strategy is proving effective. During the second quarter, we systematically tested and upgraded certain product features to motivate truckers to bid on orders labeled high quality, achieving faster order acceptance rate and optimized for human Xi. Our approach to high-quality order bidding also enabled us to steer truckers toward median quality orders, giving us greater control over the distribution of order posting.

Simon Tai: In the second quarter, the average number of quarterly fulfilled orders per active trucker fulfilling orders on a platform reached an all-time high, a testament to their continuously increasing wallet share in FTAs. Furthermore, our refinements to our trucker operation strategy are proving effective. During the second quarter, we systemically tested and upgraded certain product features to motivate truckers to bid on orders labeled high quality, achieving faster order acceptance rate and optimized for human efficiency. Our approach to high-quality order bidding also enabled us to steer truckers toward medium-quality orders, giving us greater control over the distribution of order postings.

Speaker Change: In the second quarter, the average number of quarterly fulfilled orders per active trucker fulfilling orders on our platform.

Speaker Change: An all time high a testament to our two they're continuously increasing wallet share ftes.

Speaker Change: Furthermore, a refinement to our truckload operation strategy are proving effective.

M.C.O.: We are committed to becoming the one-stop shipping platform for 30 million more and medium-sized shippers focusing on acquiring high-quality users through various channels.

Speaker Change: During the second quarter, we systemically tested an upgraded certain product features to motivate and truckers to bid on orders labeled high quality, achieving faster order acceptance rate.

M.C.O.: In the second quarter, our average daily count of shippers for fueling initial transaction reaching a new record high.

Speaker Change: And optimized fulfillment efficiency.

Speaker Change: Our approach to high quality all their bidding also enabled us to steer truckers toward median quality orders, giving us greater control over the distribution of all the posting.

M.C.O.: Additionally, we further improved new shippers' user experience through refined operational strategies designed to enhance their transaction frequency and conversion efficiency after their first shipment.

Simon Tai: Going forward, we will delve deeper into the tiered trucker rating system to further improve trucker cargo matching efficiency, which in turn will enhance our overall management of high-quality transportation capacity supply.

M.C.O.: As a result, our average shipper M&U reached 2.65 million and increased of 32.8% in over year. On the trucker side, we focused on a combination of strategies including premium convoying, tiered trucker release system, and trucker credit scores, all of which leverage traffic distribution and benefit allocation to promote healthy capacity growth on a platform. Thanks to the increase in high-quality transportation capacity, our fulfillment rate climbed to a record high of 33.7% in quarter of nearly 3.4% in over year.

Simon: Going forward, we will delve deeper into the tiered truck rating system to further improve trucker cargo matching efficiency, which in turn will encounter overall management of high-quality transportation capacity supply.

Speaker Change: Going forward, we will delve deeper into the pure truck trucker rating system to further improve truckload cargo matching efficiency, which in turn will enhance our overall management of high quality transportation capacity supply.

Simon: Turning to our transaction service in a second quarter, revenues from transaction service surged by 63.4% year-over-year to RMB 952 million, mainly driven by three factors. The solid expansion in the number of refused orders, the increased, monetized order penetration ratio, and the elevated monetization rate. Truckers' growing reliance on a platform coupled with the development of trucker payment habits and rapid expansion of direct shippers has set the stage for us to accelerate the realization of our commission model's potential. Our second quarter revenues from transaction service covered 81.1% of all fulfilled orders, an increase of approximately 14 percentage points this year, a year-over-year from 67.1% order coverage in a prior year period.

Simon Tai: Turning to our transaction service in the second quarter, revenues from transaction service surged by 63.4% year-over-year to RMB952 million, mainly driven by three factors, the solid expansion in the number of a few orders, the increased monetized order penetration ratio, and the elevated monetization rate.

Speaker Change: Turning to our transaction services in the second quarter revenues from transaction service searched by 63, 4% year over year to RMB 952 million, mainly driven by three factors the solid expansion in the number of a few others.

Speaker Change: <unk> increased monetized other penetration ratio and the elevated our monetization rate.

M.C.O.: As for monetization, our record revenue growth in a quarter validated the platform's immense monetization potential. This accomplishment highlights the irreplaceable value that FTA provides to growth trucker and shippers. In addition to the increase in high-quality transportation and benefit allocation, FTA has reached 6.99 million and increased of 55.1%. FTA has reached 9.7 million and increased of 34.3%.

Simon Tai: Truckers' growing reliance on a platform coupled with the development of trucker payment habits and the rapid expansion of direct shippers has set the stage for us to accelerate the realization of our commission model's potential.

Speaker Change: Truckers growing reliance on our platform, coupled with the development of truck or payment habits, and the rapid expansion of direct shippers have set the stage for us to accelerate the realization of our commission models potential.

Simon Tai: Our second quarter revenues from transaction service covered 81.1% of all fulfilled orders, an increase of approximately 14 percentage points this year, a point a year over year from 67.1% order coverage in a prior year period. In the second quarter, our monetization amount per order, including transaction commission and trucker membership fee, increased to RMB 23.9 from RMB 20.9.

Speaker Change: Second quarter revenues from transaction service covered 81, 1% of all food orders an increase of approximately 14 percentage points. This year a point a year over year from 67, 1% although coverage in the prior year period.

Simon: In a second quarter, our monetization amount for other, including transaction commission and trucker membership fee, increased to RMB 23.9 from RMB 21.6 a year ago. Looking ahead to the second half of the year, we plan to steadily enhance both monetization coverage and monetization rate.

Speaker Change: In the second quarter, our monetization amount per order, including transaction Commission and trucker membership fee increased to RMB 23 nine from RMB.

Simon Tai: 21.6 a year ago.

Speaker Change: $21 six a year ago.

Simon Tai: Looking ahead to the second half of the year, we plan to steadily enhance both monetization coverage and monetization rates.

Speaker Change: Looking ahead to the second half of the year, we plan to steadily enhance both monetization coverage and monetization rates.

M.C.O.: This quota's solid operational performance resulted in another set of strong financial results, once again exceeding market expectations. Our total net revenues in the quarter, which are being 2764 million, up 34.1% over year. Among them, transaction service revenues grew by 63% over year and accounted for more than 34% of our total revenues, becoming a new growth engine as we continue to optimize our revenue structure. Capitalizing our revenue optimization and operating leverage, we also steadily improved our property. Leng Gap adjusted operating income and adjusted net income increased by 55.1% and 34.2% over year to R&B 699 million and R&B 971 million respectively.

Simon: Before going over our financial results, I would like to provide a brief update on our share repurchase program. Since we announced our one-year share repurchase program totaling US dollar 300 million on March 13, 2024, we have repurchased approximately 3.5 million ADS shares, totaling approximately US dollar 30.7 million.

Simon Tai: Before going over our financial results, I would like to provide a brief update on our share repurchase program. Since we announced our one-year share repurchase program totaling US$300 million on March 13, 2024, we have repurchased approximately 3.5 million ADS shares, totaling approximately US$30.7 million.

Mao Mao: As a reminder, this conference is being recorded.

Speaker Change: Before going over our financial results I would like to provide a brief update on our share repurchase program.

Mao Mao: In addition, a webcast replay of this call will be available on FTA's investor relations website at ir.fotocalliance.com.

Mao Mao: I will now turn the call over to our founder,

Speaker Change: As we announced a one year share repurchase program totaling a.

Speaker Change: U S. All the 300 million on March 13th 'twenty 'twenty four we have repurchased approximately three 5 million shares totaling approximately USD 37 million.

Simon: Moving on to our 2024 second quarter financial result. Our total net revenues in the second quarter, or RMB 2,764.3 million, are presenting a 34.1% increase year-over-year. Primarily attributable to the increase in revenues from freight matching services. That revenues from freight matching services, including service fees from freight brokerage model, membership fees from listing models, and commissions from transaction services, or RMB 2,328.7 million in the second quarter, representing an increase of 34.4% year-over-year, primarily due to a significant increase in transaction service and the continued growth in freight brokerage business. Revenues from freight brokerage service in the second quarter were RMB 1,164.8 million, up 22.7% year-over-year, primarily attributable to an increase in transaction volume due to the continued growth in user demand.

Simon Tai: Moving on to our 2024 second quarter financial results, our total net revenues in the second quarter were RMB $2,764.3 million, representing a 34.1% increase year-over-year, primarily attributable to an increase in revenues from freight matching services. Net revenues from freight matching services, including service fees from freight brokerage model, membership fees from vesting models, and commissions from transaction services were RMB2 billion and 328.7 million in the second quarter, representing an increase of 34.4% year-over-year, primarily due to a significant increase in transaction service and the continued growth in freight brokerage business. Revenues from freight brokerage service in the second quarter were RMB $1,164.8 million, up 22.7% year-over-year, primarily attributable to an increase in transaction volume due to the continued growth in user demand.

Moving on to our 2024 second quarter financial results, our total net revenues in the second quarter.

Hui Zhang: chairman, and CEO, Mr. Zhang.

Hui Zhang: Please go ahead, digitalization and smartization model has been continuously replaced by traditional new-priced vehicles and planned logistics.

Speaker Change: RMB 2 billion $764 3 million, representing a 34, 1% increase year over year, primarily attributable to an increase in revenues from freight matching services.

Hui Zhang: Hello, everyone.

Hui Zhang: Thank you for joining us today on our second quarter 2024 earnings conference call.

Speaker Change: Net revenues for freight matching services, including service fees from freight brokerage model membership fees from listing models and commissions from transaction services were RMB 2 billion and 320 328 7 million in the second quarter, representing an increase of 34, 4%.

M.C.O.: [inaudible] Liu. Building on last quarter's momentum, our fulfillment rate also continued to rise in a second quarter, reaching approximately 33.7% over three percentage points year over year. With the number of small and medium sized direct shippers growing faster than our 1688 members shippers, our shipper structure continued to improve, leading to an increased overall structure. In the second quarter, the other contribution from our 688 members shippers and non-members shippers climbed to 48% breaking the record set's last quarter.

Hui Zhang: Amidst the broader industry trend of cost reduction and efficiency enhancement, we, leveraged our dual-end platform scale effect to deliver exceptional cost-effectiveness and transaction efficiency to our users, driving the company's growth flywheel. Our fulfilled orders in the first half of 2024 grew by 25% year-over-year, significantly outpacing the single-digit growth in the overall freight market.

Hui Zhang: This exceptional performance demonstrated that our digital and intelligent logistics model is steadily replacing the traditional offline solutions, including a quantum trucker and a contracted shipment.

Four 4% year over year, primarily due to a increase a significant increase in transaction service.

Speaker Change: And the continued growth in freight brokerage business.

Hui Zhang: 二季度以来,我们的关键运营动作所有成效分别体现在货组拉薪、供给生态和变现质量三个方面。我们致力于成为三千万中小货组的一贷式发货入口,因此我们将持续关注多渠道的高质量拉薪货客。二季度我们的日均首旅用户再创新高,同时我们进一步关注新手机货组的使用体验, 通过精细化的运营手段提升货组首旅后的评测和转化效率, 最终使我们的二季度发货货组月货再次破封,达到了265万,同比提升了32.8%。在司机测,本季度我们通过了解好货实际等级和行为分等供给客组合群, 以流量分发和权益分配为抓手,迁移运力调性增长,得益于高质量运力的增长, 本季度的约率达到了33.7%,同比提升了3.4个百分点,创了历史新高。而在变现指标方面,本季度我们进一步有序地验证了平台巨大的货币化潜力, 推动收入高速增长,以上成绩进一步证明了满方对赤货两端创造了难以替代的价值。自第二季度起,我们的重要的行动开展都非常有效, 特别是货币的使用率减弱,提升了驱动机的供应处理,並加强了投资费用。我们也将成为口罩货币并赚取的一部分货币化平台, 我们也将将来的货币化平台提升至30亿个小型货币的货币化平台, 设定了各种渠道资源的高质量用户。第二季度,我们将在最新的日期内, 达到最新的新数据,提升货币的充值。此外,我们还将通过精细的行动策略提升了新货币的使用经验, 以增强货币的充值及转转效率, 我们将在两季度的高质量货币化平台提升到60亿个小型货币化平台。由于货币化平台增加的高质量货币化平台, 我们的充值率提升到一年一季度33.7%, 并提升了一年一季度的3.4%。至于货币化平台的充值, 我们的货币化平台在一季度的高质量货币化平台提升了一年一季度, 以提升货币化平台的充值。这些成就显示了FTA对产品货币化平台的, 对产品货币化平台的责任。稳健的运营表现帮助我们的财务指标再次超出了市场预期。二季度,集团总收入达到了27.64亿元, 同比增长34.1%。同时,集团收入结构持续优化, 交易服务收入同比增速达到了63%, 但集团总收入比例超过了34%,成为了新的增长引擎。随着收入结构的优化和经营杠杆发挥作用, 我们的利润率也永不提升。非美国快递准则下调整后的营业利润达到了6.99亿元, 同比增长55.1%。非美国快递准则下调整后的净利润达到了9.7亿元, 同比增长34.3%。 This quarter's solid operational performance resulted in another set of strong financial, results, once again exceeding market expectations.

Speaker Change: Revenues from freight brokerage service in the second quarter were RMB 1 billion $164 8 million.

Speaker Change: Up 22, 7% year over year, primarily attributable to an increase in transaction volume due to the continued growth in user demand.

Simon: Revenue from the Freed Listing Service in the second quarter were RMB 212.1 million, up 5.6% year-over-year, primarily due to a growing number of paying members. Revenue from the transaction service in the second quarter were RMB 951.9 million, up 63.4% year-over-year, primarily driven by an increase in order volume, penetration rate, and the per-order transaction service. Revenue from battery added services in the second quarter were RMB 435.6 million, up 32% year-over-year. This increase was due to the growing demand from truckers and shippers for credit solutions and other battery added services. Second quarter cost of revenues was RMB 1 billion, 300 and 12.1 million, compared with RMB 975.3 million in the prior year period.

Simon Tai: Revenues from the freight lifting service in the second quarter were RMB212.1 million, up 5.6% year-over-year, primarily due to a growing number of... Paying up, paying members, Revenues from the transaction service in the second quarter were RMB 951.9 million, up 63.4% year-over-year, primarily driven by an increase in order volume, penetration rate, and the per-order transaction service fees.

Speaker Change: Revenues from the free listing service in the second quarter were RMB $212 1 million up five 6% year over year, primarily due to a growing number of.

Speaker Change: Paying the paying members.

Hui Zhang: Our total net revenues in the quarter reached RMB 2,764 million, up 34.1% year-over-year. Among them, transaction service revenues grew by 63% year-over-year and accounted for more, than 34% of our total revenues, becoming a new growth engine as we continue to optimize our revenue structure.

Speaker Change: Revenues from the transaction service in the second quarter were RMB $951 9 million.

Speaker Change: Up 63.4% year over year, primarily driven by an increase in order volume penetration rate and the per order transaction services.

Simon Tai: Revenues from battery-added services in the second quarter were RMB 435.6 million, up 32% year-over-year. This increase was due to the growing demand from truckers and shippers for credit solutions and other battery-added services.

Speaker Change: Revenues from value added services in the second quarter were RMB $435 6 million up 32% year over year. This increase was due to the growing demand from truckers and shippers for credit solutions and other value added services.

Simon Tai: Second quarter cost of revenues was RMB 1,312,000,000 compared with RMB 975,000,000 in the prior year period. The increase was primarily due to an increase in BAT-related tax surcharges and other tax costs, net of grants from government authorities. And these tax-related costs, net of government grants, totaled RMB 1,176.3 million, representing an increase of 33.8 percent from RMB 879.3 million in the same period of 2023, primarily due to the expansion of transaction activities involving our freight brokerage service.

Speaker Change: Second quarter cost of revenues was RMB 1 billion $312 1 million compared with RMB $975 3 million in the prior year period.

Simon: The increase was primarily due to an increase in BAT-related tax surcharges and other tax causes, none of the grants from government authorities. And these tax-related causes, none of government grants, totaled RMB 1 billion, 176.3 million, representing an increase of 33.8% from RMB 879.3 million in the same period of 2023, primarily due to the expansion of transaction activities evolving our freight boat bridge service. I'll say also marketing expenses in the second quarter were RMB 372.3 million, compared with RMB 281.8 million in the same period of 2023. The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions, as well as higher salary and benefit expenses.

Speaker Change: The increase was primarily due to an increase in B G related tax surcharges and other tax causes net of grants from government authorities and these tax related costs net of government with clubs totaled RMB 1 billion $176 3 million representing an increase.

Speaker Change: <unk> of 33, 8% from RMB $879 3 million in the same period of 2023, primarily due to the expansion of transaction activities involving our freight brokerage service.

Simon Tai: Sales and marketing expenses in the second quarter were RMB372.3 million, compared with RMB281.8 million in the same period of 2023. The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions as well as higher salary and benefit expenses.

Speaker Change: Sales and marketing expenses in the second quarter were RMB $372 3 million compared with RMB 281.8 million in the same period of 2023 the.

Speaker Change: The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions, as well as higher salary and benefit expenses.

Simon: General and administrative expenses in the second quarter were RMB 219.2 million, compared with RMB 201.7 million in the same period of 2023. The increase was primarily due to higher share-based compensation expenses. RMB expenses in the second quarter were RMB 232.1 million compared with RMB 223.7 million in the same period of 2023. The increase was primarily due to higher share-based compensation expenses, as well as increased investment in technology infrastructure. The income from operations in the second quarter was RMB 565.4 million compared with RMB 333.8 million in the same period of 2023. The income in the second quarter was RMB 840.5 million and increase of 38% from RMB 600 and RMB 9 million in the same period of 2023.

Simon Tai: General and administrative expenses in the second quarter were RMB219.2 million compared with RMB201.7 million in the same period of 2023. The increase was primarily due to higher share-based compensation expenses.

Speaker Change: General and administrative expenses in the second quarter were RMB $219 2 million compared with RMB 201, 7 million in the same period of 2023. The increase was primarily due to higher share based compensation expenses.

Simon Tai: RMB expenses in the second quarter were RMB$232.1 million compared with RMB$223.7 million in the same period of 2023. The increase was primarily due to higher share-based compensation expenses as well as increased investment in technology infrastructure.

Speaker Change: R&D expenses in the second quarter were RMB, $232 1 million compared with RMB 200, and the 'twenty two 'twenty $3 7 million in the same period of 2023 the increase was primarily due to higher share based compensation expenses as well as increased our increase.

M.C.O.: In addition, higher fulfillment rates among our 688 members and non-members shippers throw the improvement in our overall fulfillment rate. Looking ahead, we are confident there's significant potential to further elevate our fulfillment rate through ongoing product and service upgrades as well as continued refinement to our freight matching services infrastructure. Turning to our user base, we continue to make strong progress with our shipper users in the second quarter as evidenced by our average shipper MAUs reaching 2.65 million, representing an increase of 32.8% year over year, and 23.7% quarter over quarter.

Speaker Change: And the investment in technology infrastructure.

Simon Tai: The income from operations in the second quarter was RMB 565.4 million compared with RMB 333.8 million in the same period of 2023.

Speaker Change: Income from operations in the second quarter was RMB 565.

Speaker Change: 4 million compared with RMB $333 8 million in the same period of 2023 net income in the second quarter was RMB 845 million, an increase of 38% from RMB 609 million in the same period of 2023.

Simon Tai: Net income in the second quarter was RMB 840.5 million, an increase of 38% from RMB 609 million in the same period of 2023.

M.C.O.: As a result, our average shipper M&U reached 2.65 million and increased of 32.8% in over year.

Hui Zhang: Capitalizing on our revenue optimization and operating leverage, we also steadily improved, our profits. LendGap adjusted operating income and adjusted net income increase by 55.1% and 34.2% year-over-year, to RMB 699 million and RMB 971 million, respectively.

Simon: The non-gap measures are adjusted in operating income in the second quarter was RMB 699 million and increase of 55.1% from RMB 450.7 million in the same period of 2023. Our adjusted net income in the second quarter was RMB 970.9 million, an increase of 34.3% from RMB 700 and RMB 22.7 million in the same period of 2023. The basic and diluted net income per ADS were on the 0.79 in the second quarter, compared with on the 0.57 in the same period of 2023. Non-Gap adjusted basic net income per ADS was on the 0.92 in the second quarter, compared with on the 0.68 in the same period of 2023.

Simon Tai: On the non-GAAP measures, our adjusted operating income in the second quarter was RMB 699 million, an increase of 55.1% from RMB 450.7 million in the same period of 2023. Our adjusted net income...

Speaker Change: On the non-GAAP measures our adjusted operating income in the second quarter was RMB 699 million, an increase of 55, 1% from RMB 400.

Speaker Change: $50 7 million in the same period of 2023.

M.C.O.: This quarter's rapid shipper user gain was again attributed to growth among our 688 members shippers and non-members shippers who are mostly low and medium frequency direct shippers. As we enter the second quarter, we continue to ramp up our new shipper acquisition efforts, leverage in multiple online channels to identify and convert high quality new shippers. In particular, we focused on the onboarding and retention of new users, making every effort to provide an exception of human experience during their first three trials.

Hui Zhang: 今年七月,党的二十届三中全会再次强调了发展新制生产力, 和降低全社会物流成本。满邦作为物流新制生产力的代表,持续加大数字化智能化基建投入, 同时积极推动新能源运力发展。二十年上半年,集团新能源运力订单占比接近20%, 增速翻盘,展望下半年,我们有信心通过数字化、智能化、绿色化引领物流行业降本增效,为用户、为社会创造更大的价值。 This July, the third plenary session of the 20th Central Committee of the Communities Party of China reiterated the importance of cultivating new quality productive force, and reducing logistics costs across society. As a representative of intelligent productive force in the logistics industry, FTA continues, to invest in digitalization and intelligent infrastructure construction, while actively promoting the development of new energy transportation capacity.

Hui Zhang: In the first half of 2024, the number of freight orders fulfilled by our electronic vehicles, increased by 100% year-over-year and contributed nearly 20% of total order volume.

Speaker Change: Adjusted net income.

Hui Zhang: Looking ahead, we are confident that we will continue to lead the logistics industry in cost, reduction and efficiency improvement through digitization, intelligence, and green practices, creating greater value for all of our users and society as a whole.

Simon Tai: The second quarter was RMB970.9 million, an increase of 34.3% from RMB722.7 million in the same period of 2023.

Speaker Change: <unk> quarter was RMB $970 9 million, an increase of 34, 3% from RMB $722 7 million in the same period of 2023.

Hui Zhang: 好,下面我把时间交给赛伯为大家具体介绍一下我们科技组的业绩表现。

Hui Zhang: Thank you, everyone.

Simon Tai: Basic and diluted net income per ADS were RMB 0.79 in the second quarter compared with RMB 0.57 in the same period of 2023. Non-GAAP-adjusted basic net income per ADS was RMB 0.92 in the second quarter, compared with RMB 0.68 in the same period of 2023.

Basic and diluted net income per a D S where be 0.79 in the second quarter compared with RMB 0.5 to seven in the same period of 2023.

Simon Tai: Let me pass the call over to our CFO, Simon, who will provide an update on our second quarter, business progress and financial results.

Speaker Change: non-GAAP adjusted basic net income per ads.

Speaker Change: <unk> was RMB <unk> 92 in the second quarter compared with RMB 0.68 in the same period of 2023 non-GAAP adjusted diluted net income per ads was RMB 0.91 in the second quarter compared with 1.68 in the same periods of 2023.

M.C.O.: We expect ongoing growth in our shipper base thanks to this effective strategy. Furthermore, we achieved consistently robust shipper activity with our shipper member 12-month rolling retention rate, remaining about 80% in the second quarter. In addition to our success with shippers, our trucker users have become increasingly dependent on our platform thanks to the value we bring to the trucker cargo matching process. As of the end of the second quarter, the number of active truckers for feeding orders through FTA over the past 12 months reached 3.98 million, maintaining sequential growth.

Simon Tai: Thank you, Mr. John, and thanks everyone for making time to join our call today.

Simon Tai: Non-GAAP-adjusted diluted net income per ADS was RMB 0.91 in the second quarter, compared with RMB 0.68 in the same period of 2023.

Simon Tai: I will now provide an overview of our operational and financial results for the second quarter, of 2024. Despite macroeconomic challenges and pressure from extreme weather conditions such as prolonged, heavy rain that impacted shipments during the quarter, we maintained robust overall order growth on our platform, driven by an expanding shipper user base and higher fulfillment efficiency fueled by our enhanced network effect. Building on last quarter's momentum, our fulfillment rate also continued to rise in the second, quarter, reaching approximately 33.7 percent, over three percentage points year-over-year.

Simon Tai: With the number of small and medium-sized direct shippers growing faster than our 1688, member shippers, our shipper structure continued to improve, leading to an enhanced overall order structure.

M.C.O.: On the trucker side, we focused on a combination of strategies including premium convoying, tiered trucker release system, and trucker credit scores, all of which leverage traffic distribution and benefit allocation to promote healthy capacity growth on a platform.

Simon: As of June 30, 2024, the company had cash and cash equivalent, restricted cash, short-term investments, long-term time deposits, and wealth management products, with mature materials over one year of R&B 26.8 billion in total, compared with on the 27.6 billion as of December 31, 2023.

Speaker Change: <unk>.

Simon Tai: As of June 30, 2024, the company had cash and cash equivalents, restricted cash, short-term investments, long-term time deposits and wealth management products, with maturities over one year of RMB 26.8 billion in total, compared with RMB 27.6 billion as of December 31, 2023.

As of June 32024, the company had cash and cash equivalents.

Speaker Change: Strict restricted cash short term investments long term time deposits and wealth management products with mature maturities over one year of RMB 26, 8 billion in total compared with RMB 27, 6 billion as of December 31 2023.

M.C.O.: Thanks to the increase in high-quality transportation capacity, our fulfillment rate climbed to a record high of 33.7% in quarter of nearly 3.4% in over year.

M.C.O.: Additionally, our next month's retention of truckers who responded to others remained above 85% indicating continued strong users' stickiness. In the second quarter, the average number of quarterly fulfilled orders per active trucker for feeding orders on a platform reached an all-time high a testament to their continuously increasing wallet share at use. Furthermore, our refinement to our trucker operation strategy are proving effective. During the second quarter, we systematically tested and upgraded certain product features to motivate truckers to bid on orders labeled high quality, achieving faster order acceptance rate and optimized for human efficiency.

Simon: For our third quarter, 2020-24 business outlook, we expect our total revenues to be between R&B 2.78 billion and R&B 2.82 billion, representing a year-over-year growth rate of approximately 21.9% to 24.6%. This forecast reflects the company's current and preliminary view on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

Simon Tai: For our third quarter 2024 business outlook, we expect our total revenues to be between RMB$1.5 billion and RMB$1.5 billion.

Speaker Change: For our third quarter 'twenty 'twenty 'twenty four business outlook, we expect total revenues to be between RMB.

Simon Tai: We expect our total revenues to be between RMB 2.78 billion and RMB 2.9 billion.

Speaker Change: We expect our total revenues to be between RMB 278 billion and RMB two point.

Simon Tai: 8.2 billion, representing a year-over-year growth rate of approximately 21.9% to 24.6%. This forecast reflects the company's current and preliminary view of the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

Speaker Change: Eight 2 billion, representing a year over year growth rate of approximately 21, 9% to 24, 6%. This forecast reflects the company's current and preliminary view on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy.

Speaker Change: As of the date hereof.

Simon: That concludes our prepared remarks.

Simon Tai: That concludes our prepared remarks.

Speaker Change: That concludes our prepared remarks, we'd now like to open the call to Q&A operator. Please go ahead.

Operator: We would now like to open the call to Q&A.

Operator: We would now like to open a call to Q&A.

M.C.O.: Xi. Our approach to high-quality order bidding also enabled us to steer truckers toward median quality orders, giving us greater control over the distribution of order posting. Going forward, we will delve deeper into the tiered trucker rating system to further improve trucker cargo matching efficiency, which in turn will encounter our overall management of high-quality transportation capacity supply.

Operator: Operator, please go ahead.

Operator: Operator, please go ahead. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you were using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.

Operator: We will now begin the question and answer session.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.

Operator: To ask a question, you may press star then 1 on your telephone keypad.

Operator: If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.

Speaker Change: Anytime Youre question has been addressed and you would like to withdraw your question. Please press Star then two.

Operator: For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.

Speaker Change: For the benefit of all participants on today's call.

Speaker Change: If you wish to ask your question to management in Chinese. Please immediately repeat your question in English.

M.C.O.: As for monetization, our record revenue growth in a quarter validated the platform's immense monetization potential.

M.C.O.: Turning to our transaction service in a second quarter, revenues from transaction service surged by 63.4% year-to-year to R&B 952 million, mainly driven by three factors. The solid expansion in the number of few orders, the increased, monetized order penetration ratio and the elevated monetization rate. Truckers growing reliance on a platform coupled with the development of trucker payment habits at the rapid expansion of direct shippers has set the stage for us to accelerate the realization of our commission model's potential.

Operator: At this time, we will pause momentarily to assemble our roster.

At this time, we will pause momentarily to assemble our roster.

Ronald Keung: At this time, we will come from Ronald Cume with Goldman Sachs. Please go ahead. Thank you, management, and we see that the fulfilled order grew around 22% in the second quarter, still much faster than the overall freight market, but the growth rate has slowed versus the first quarter.

Operator: Our first question comes from Ronald Keung with Goldman Sachs.

Speaker Change: Our first question comes from Ronald Keung with Goldman Sachs. Please go ahead.

M.C.O.: This accomplishment highlights the irreplaceable value that FTA provides to growth trucker and shippers.

Speaker Change:

Speaker Change: It sounds like he got a woman to go or do you think that in Colombia.

Simon Tai: In the second quarter, the order contribution from our 688 member shippers and non-member, shippers climbed to 48 percent, breaking the record set last quarter. In addition, higher fulfillment rates among our 688 member and non-member shippers drove, the improvement in our overall fulfillment rate.

Speaker Change: Yeah, no it didn't go up.

Speaker Change: Oh go logical or you know you got the alpine.

M.C.O.: In addition to the increase in high-quality transportation and benefit allocation, FTA has reached 6.99 million and increased of 55.1%.

M.C.O.: Our second quarter revenues from transaction service covered 81.1% of all fulfilled orders and increased of approximately 14%age points this year. A point a year-over-year from 67.1% order coverage in a priority period. In a second quarter, our monetization amount per order, including transaction commission and trucker membership fee, increased to R&B 23.9 from R&B 21.6 a year ago.

Speaker Change: And we won't be easy do though hydro.

Speaker Change: Your phone was no it sounds good I'll do all that you see there.

Speaker Change: If you don't mean food.

Oh do you want <unk> seen annualized to take off.

Speaker Change: But the 19 concrete you're putting down a momentum kind of entry, but it's Andy do her tenure.

Speaker Change: No not at all a phase thank you management and we see that the fulfillment order grew around 22% in the second quarter still much faster than overall freight market, but growing.

Speaker Change: Growth rates have slowed versus the first quarter. So what were the factors behind drivers and based on the trends. So far can you share how do you view or the volume growth into the third quarter and for the full year. Thank you.

Simon: So what were the factors behind drivers, and based on the trends so far, can you share how do you view all the volume growth into the third quarter and for the full year? Thank you. Thank you, Ronald. Our robust order volume growth in Q2 was primarily driven by three main factors: our expanding shipper user base, product and operational strategy, and optimization that drove considerable improvements in user activities and incremental volume from new business. This was partially offset a little bit by the overall amount of weakness in the role of freight since Q2 and extreme weather conditions in May and June, particularly the prolonged heavy rains in the eastern and southern part of China, as well as flooding in the south and drought in the north.

M.C.O.: Looking ahead to the second half of the year, we plan to steadily enhance both monetization coverage and monetization rate.

M.C.O.: Before going over our financial results, I'd like to provide a brief update on our share repurchase program. Since we announced our one-year share repurchase program, totaling US dollar 300 million on March 13, 2024, we have repurchased approximately 3.5 million ADS shares, totaling approximately US dollar 30.7 million. Moving on to our 2024 second quarter financial result, our total net revenues in second quarter or R&B 2.764.3 million are presenting a 34.1% increase year-over-year.

Ronald Keung: Please go ahead.

Thank you run up a robust order volume growth in Q2.

Simon Tai: Looking ahead, we are confident there's significant potential to further elevate our fulfillment, rate through ongoing product and service upgrades, as well as continued refinement to our freight matching services infrastructure.

Was primarily driven by three main factors are extending shipper user base, a product and operational strategy and optimization.

Speaker Change: That drove continued improvements in user activities.

Speaker Change: And incremental volume from new from new business.

Speaker Change: This was partially offset a little bit by the overall demand weakness in the world trade since Q2 and extreme weather conditions in May and June.

M.C.O.: FTA has reached 9.7 million and increased of 34.3%.

Speaker Change: Particularly the prolonged heavy rings in eastern and southern part of China, as well as flooding in the south and drought in the north.

M.C.O.: This quota's solid operational performance resulted in another set of strong financial results, once again exceeding market expectations.

M.C.O.: Primarily attributable to an increase in revenues from freight matching services. That revenues from freight matching services, including service fees from freight brokerage model, membership fees from listing models, and commissions from transaction services, or R&B 2.328.7 million in a second quarter, representing an increase of 34.4% year-over-year. Primarily due to a significant increase in transaction service, and the continued growth in freight brokerage business. Revenues from freight brokerage service in a second quarter were R&B 1.164.8 million, up 22.7% year-over-year.

Simon: From a user-based perspective, we continue to efficiently acquire users in the second quarter. Our average number of monthly active shippers increased by 32.8% year-over-year to 2.6-5 million, extending the first quarter's accelerated growth trajectory. Our operations team concentrated on all the health support and new shippers, which improved the user engagement from registration to their first shipment, posting, and procurement. For our product and operational strategies, this quarter we focus on increasing the proportion of priced orders from shippers and optimizing premium cargo bidding for Halvo, meltdown Halvo for truckers. Encouraging shippers to post price orders has increased truckers, witness to exact orders, enhancing matching efficiency.

Ronald Keung: 谢谢张辉总和Simon 那想问一下我们这个二季度旅约订单同比也增长了22个点那这个表现也非常好超过了这个货运的一个大盘但如果比一季度的话就还是有放缓那想知道主要的一些驱动因素还有基于我们今年以来的这个宏观和订单情况可以分享我们怎么看待这个三季度和全年的单量增长吗那让我翻译一下谢谢管理员我们看到二季度旅约订单增长了22个点比一季度的货运市场还要快但增长的速度比一季度的增长还要快那么驱动者的背后的因素是什么根据目前的趋势您能分享一下您对三季度旅约订单的增长对整个一季度的增长是什么谢谢, Thank you, Ronat.

Simon Tai: Turning to our user base, we continue to make strong progress with our shipper users in, the second quarter, as evidenced by our average shipper MAUs reaching 2.65 million, representing an increase of 32.8 percent year-over-year and 23.7 percent quarter-over-quarter. This quarter's rapid shipper user gain was again attributed to growth among our 688 member, shippers and non-member shippers, who are mostly low- and medium-frequency direct shippers.

Speaker Change: From a user base perspective, we continue to efficiently.

M.C.O.: Our total net revenues in the quarter, which are being 2764 million, up 34.1% over year. Among them, transaction service revenues grew by 63% over year and accounted for more than 34% of our total revenues, becoming a new growth engine as we continue to optimize our revenue structure.

Speaker Change: Efficiently acquire users in the second quarter.

Simon Tai: As we enter the second quarter, we continue to ramp up our new shipper acquisition efforts, leveraging multiple online channels to identify and convert high-quality new shippers. In particular, we focus on the onboarding and retention of new users, making every effort, to provide an exceptional human experience during their first three trials.

Simon Tai: Our robust order volume growth in Q2 was primarily driven by three main factors. Our expanding shipper user base, product and operational strategy optimization that drove continued improvements in user activities and incremental volume from new business.

Simon Tai: We expect ongoing growth in our shipper base, thanks to this effective strategy. Furthermore, we achieved consistently robust shipper activity with our shipper member 12-month, rolling retention rate remaining above 80 percent in the second quarter.

Speaker Change: Our average number of monthly active shippers to increase by 32, 8% year over year to 2.68665 million extending the first quarter's accelerated growth trajectory.

Simon Tai: In addition to our success with shippers, our trucker users have become increasingly, dependent on our platform, thanks to the value we bring to the trucker cargo matching process. As of the end of the second quarter, the number of active truckers who are feeding orders, through FTA over the past 12 months reached 3.98 million, maintaining sequential growth. Additionally, our next month's retention of truckers who responded to orders remained above, 85 percent, indicating continued strong user stickiness. In the second quarter, the average number of quarterly fulfilled orders per active trucker, fulfilling orders on our platform reached an all-time high, a testament to their continuously increasing wallet share in FTAs.

Speaker Change: Our operations team concentrated on whole around supporting new shippers, which improved user engagement from registration to their first shipment posting and fulfillment.

M.C.O.: Capitalizing our revenue optimization and operating leverage, we also steadily improved our property.

Simon Tai: Furthermore, our refinements to our trucker operation strategy are proving effective. During the second quarter, we systemically tested and upgraded certain product features, to motivate truckers to bid on orders labeled high-quality, achieving faster order acceptance rate, and optimized for human efficiency. Our approach to high-quality order bidding also enabled us to steer truckers toward medium-quality, orders, giving us greater control over the distribution of order posting.

Speaker Change: For our product.

Speaker Change: And operational operational strategies this quarter, we focus on increasing the proportion of Christ autos from shippers and optimizing premium cargo bidding or a military helpful for truckers.

Simon Tai: Going forward, we will delve deeper into the tiered trucker rating system to further improve, trucker cargo matching efficiency, which in turn will enhance our overall management of high-quality transportation capacity supply.

M.C.O.: Primarily attributable to an increase in transaction volume due to the continued growth in user demand. RavNews from the Freed Listing Service in the second quarter were RMB212.1 million, up 5.6% year-over-year, primarily due to a growing number of paying members. RavNews from the transaction service in the second quarter were RMB951.9 million, up 63.4% year-over-year, primarily driven by an increase in order volume, penetration rate, and the per-order transaction service. RavNews from battery added services in the second quarter were RMB435.6 million, up 32% year-over-year, this increase was due to the growing demand from truckers and shippers for credit solutions and other battery added services.

Speaker Change: Encouraging shippers to post price orders has increased covers the willingness to accept the others and haven't seen matching efficiency. This was particularly this was particularly true for professional shippers, whose fulfillment rates improved significantly.

Simon: This was particularly true for professional shippers, was for human race, improved significantly. Notably, the proportion of priced orders posting reached 60% in the quarter. We also continue to refine our premium cargo bidding feature to strengthen truckers' perception of high-value orders. This product is designed to reward truckers with access to better orders after completing an average or below average order, which motivates them to stay active and increase their human frequency on the platform. The new business, the bulk, less in truck load and short-haul segments, continue to grow rapidly and contribute to our business volume, given the industry trend toward LTR and our unique user advantage in this segment, and expects a substantial future growth in the LTR business.

Speaker Change: Notably the proportion of Christ orders posting reached 60% in the quarter. We also continued to we also continued our refining.

Our premium cargo bidding feature to strengthen truckers perception of high value others. This product is designed to reward truckers with access to better all this after completing.

Speaker Change: Average or below average water, which motivates them to stay active and increase their fulfillment frequency on the platform.

Speaker Change: On the new business the bulk.

Simon Tai: Turning to our transaction service in the second quarter, revenues from transaction, service surged by 63.4% year-over-year to RMB 952 million, mainly driven by three factors, the solid expansion in the number of refueled orders, the increased monetized order penetration ratio and the elevated monetization rate.

Simon Tai: Truckers' growing reliance on a platform coupled with the development of trucker payment, habits and the rapid expansion of direct shippers has set the stage for us to accelerate the realization of our commission model's potential.

Simon Tai: Our second quarter revenues from transaction service covered 81.1% of all refueled orders, an increase of approximately 14 percentage points a year-over-year from 67.1% order coverage in the prior year period. In the second quarter, our monetization amount per order, including transaction commission, and trucker membership fee, increased to RMB 23.9 from RMB 21.6 a year ago.

Speaker Change: Some truckload in short haul segment.

Speaker Change: To grow rapidly and contribute to our business volume.

M.C.O.: Second quarter cost of revenues was RMB1.300 and 12.1 million, compared with RMB975.3 million in the prior year period. The increase was primarily due to an increase in BAT related tax surcharges and other tax causes, net off the grunts from government authorities. These tax-related causes, net off government grunts, totaled RMB1.176.3 million, representing an increase of 33.8% from RMB879.3 million in the same period of 2023, primarily due to the expansion of transaction activities evolving our freight boat bridge service.

Speaker Change: Given the industry trend toward L T O and our unique user advantage in this segment.

Speaker Change: With substantial future growth in the <unk> business.

Simon Tai: This was partially offset a little bit by the overall demand weakness in the road freight since Q2 and extreme weather conditions in May and June, particularly the prolonged heavy rains in eastern and southern part of China, as well as flooding in the south and drought in the north.

Simon: And looking ahead to the coming third quarter, despite the ongoing impact of extreme weather and the macro environment, we remain confident that increasing online penetration driven by user growth and product enhancement will enable us to achieve other volume growth of over 20% for the full year. Thank you.

Speaker Change: And looking ahead to the coming third quarter, despite the ongoing impact of.

Simon Tai: Looking ahead to the second half of the year, we plan to steadily enhance both monetization, coverage and monetization rate.

Simon Tai: Before going over our financial results, I would like to provide a brief update on our, share repurchase program. Since we announced our one-year share repurchase program totaling US$300 million on March 13, 2024, we have repurchased approximately 3.5 million ADS shares, totaling approximately, US$30.7 million.

Speaker Change: Extreme weather and the macro environment, we remain confident that increasing online penetration.

Speaker Change: Driven by user growth and product enhancements will enable us to achieve although volume growth.

Speaker Change: Of over 20% for the full year.

Simon Tai: From a user-based perspective, we continue to efficiently acquire users in the second quarter. Our average number of monthly active shippers increased by 32.8% year-over-year to 2.65 million, extending the first quarter's accelerated growth trajectory. Our operations team concentrated on all-round support on new shippers, which improved user engagement from registration to their first shipment, posting, and fulfillment.

Simon Tai: Moving on to our 2024 second quarter financial results, our total net revenues in the second, quarter were RMB $2,764.3 million, representing a 34.1% increase year-over-year, primarily attributable to an increase in revenues from freight matching services. Net revenues from freight matching services, including service fees from freight brokerage, model, membership fees from listing models, and commissions from transaction services, were RMB 2 billion and $328.7 million in the second quarter, representing an increase of 34.4% year-over-year, primarily due to a significant increase in transaction service and the continued, growth in freight brokerage business.

Speaker Change: Thank you.

Simon Tai: For our product and operational strategies, this quarter we focus on increasing the proportion of priced orders from shippers and optimizing premium cargo bidding for truckers. Encouraging shippers to post price orders has increased truckers' willingness to accept orders, announcing matching efficiency. This was particularly true for professional shippers whose human rates improved significantly. Notably, the proportion of priced orders posting reached 60% in the quarter. We also continue refining our premium cargo bidding feature to strengthen truckers' perception of high-value orders.

Simon Tai: Revenues from freight brokerage service in the second quarter were RMB $1,164.8 million, up 22.7% year-over-year, primarily attributable to an increase in transaction volume due to, Revenues from the Freight Listing Service in the second quarter were RMB212.1 million, up 5.6% year-over-year, primarily due to a growing number of paying members.

Simon Tai: Revenues from the Transaction Service in the second quarter were RMB951.9 million, up 63.4% year-over-year, primarily driven by an increase in order volume, penetration rate, and the per-order transaction service fee.

Eddy Wang: Thank you, Sam. The next question comes from Any Wong with Morgan Stanley. Please go ahead. So thank you for taking my question. My question is regarding the active MAU. So in second quarter, the monthly active shaper reached 2.65 million, so marking a year-over-year increase of around 33%, and a quarter-over-quarter growth of 24. So what would the main driver behind this growth be, and just to use a structured view trending towards the direct shapers? Thank you.

Simon Tai: This product is designed to reward truckers with access to better orders after completing an average or below-average order, which motivates them to stay active and increase their fulfillment frequency on the platform.

Simon Tai: For our third quarter 2024 business outlook, we expect our total revenues to be between, RMB 2.78 billion and RMB 2.82 billion representing a year-over-year growth rate of approximately, 21.9% to 24.6%. This forecast reflects the company's current and preliminary view of the market and operational, conditions which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

Simon: Thank you Simon.

Simon Tai: Revenues from Value-Added Services in the second quarter were RMB435.6 million, up 32% year-over-year. This increase was due to the growing demand from truckers and shippers for credit solutions and other value-added services.

Simon Tai: On the new business, the bulk less-than-truckload and short-haul segments continue to grow rapidly and contribute to our business volume. Given the industry trend toward LTL and our unique user advantage in this segment, we expect substantial future growth in the LTL business.

Simon Tai: Second quarter cost of revenues was RMB1,312,1 million, compared with RMB975.3 million in the prior year period. The increase was primarily due to an increase in BAT-related tax surcharges and other tax costs, net of grants from government authorities. And these tax-related costs, net of government grants, totaled RMB1,176.3 million, representing an increase of 33.8% from RMB879.3 million in the same period of 2023, primarily due to the expansion of transaction activities involving our freight brokerage service.

Simon Tai: And looking ahead to the coming third quarter, despite the ongoing impact of extreme weather and the macro environment, we remain confident that increasing online penetration driven by user growth and product enhancement will enable us to achieve order volume growth, of over 20% for the full year.

Simon Tai: General and administrative expenses in the second quarter were RMB219.2 million, compared with RMB201.7 million in the same period of 2023. The increase was primarily due to higher share-based compensation expenses.

Operator: That concludes our prepared remarks.

Andy Wong: The next question comes from any wrong with Morgan Stanley. Please go ahead.

Simon Tai: R&D expenses in the second quarter were RMB232.1 million, compared with RMB223.7 million in the same period of 2023. The increase was primarily due to higher share-based compensation expenses, as well as increased investment in technology infrastructure.

Simon Tai: The income from operations in the second quarter was RMB565.4 million, compared with RMB333.8 million in the same period of 2023.

Simon Tai: Net income in the second quarter was RMB840.5 million, an increase of 38% from RMB609 million in the same period of 2023. Under non-GAAP measures, our adjusted operating income in the second quarter was RMB699 million, an increase of 55.1% from RMB450.7 million in the same period of 2023.

Operator: We would now like to open the call to Q&A.

Simon Tai: Our adjusted net income in the second quarter was RMB970.9 million, an increase of 34.3% from RMB722.7 million in the same period of 2023.

Simon Tai: Basic and Diluted Net Income per ADS were RMB 0.79 in the second quarter compared with, RMB 0.57 in the same period of 2023.

Simon Tai: Non-Gap Adjusted Basic Net Income per ADS was RMB 0.92 in the second quarter compared, with RMB 0.68 in the same period of 2023. Non-Gap Adjusted Diluted Net Income per ADS was RMB 0.91 in the second quarter compared, with RMB 0.68 in the same period of 2023.

Simon Tai: Thank you.

Simon Tai: As of June 30, 2024, the company had cash and cash equivalents, restricted cash, short-term, investments, long-term time deposits and wealth management products with maturities over one year of RMB 26.8 billion in total compared with RMB 27.6 billion as of December 31, 2023.

Speaker Change: It's always also happens all my life.

M.C.O.: I'll say also marketing expenses in the second quarter were RMB372.3 million, compared with RMB281.8 million in the same period of 2023. The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions as well as higher salary and benefit expenses. General and administrative expenses in the second quarter were RMB219.2 million, compared with RMB201.7 million in the same period of 2023. The increase was primarily due to higher share-based compensation expenses.

Operator: Thank you.

Speaker Change: Gotcha Gotcha.

Speaker Change: Oh, yeah, so she's going to take our attention towards you and perhaps why you bought you can watch all of them, but yeah, Josh if they shop the Tioga County.

Speaker Change: No. One wants you said when you take a short cut all argue too fast or what would be your or your thought on down by unusual but it won't be the trial until such time that won't be a yorkshire represents central subway gotcha.

Operator: Operator, please go ahead.

Speaker Change: But you don't you can push them out a whole thumbing Jake Oh.

Joel Gaucher: Joel Gaucher fault, you would I should show a cohort of tissue.

Operator: The next question comes from Eddy Wang with Morgan Stanley.

Speaker Change: Walk quite a find yourself thank.

Eddy Wang: Please go ahead.

Speaker Change: Thank you for taking my question. My question is regarding the Ah Ah Ah Ah Ah Ah Ah.

Eddy Wang: 张辉总,Simon 总,毛毛,你们好感谢接受我的提问然后也首先恭喜天气条件不好宏观也不好的情况下我们的业绩还是非常的强劲我的问题是关于货主端的看到二季度发货货主的月活也达到了265万同比增长差不多33% 环比也有24%增长想问一下主要的驱动因素是什么然后咱们货主用户结构是否依然是止咳化的趋势我很快地翻译一下感谢接受我的提问我的问题是关于活动货主端的在第二季度活动货主端的月活达到265万同比增长差不多33% 和四季度的增长达到24% So what were the main drivers behind this growth, and is the user structure still trending towards to the direct shippers?

Operator: We will now begin the question and answer session.

M.C.O.: RMB expenses in the second quarter were RMB232.1 million compared with RMB223.7 million in the same period of 2023. The increase was primarily due to higher share-based compensation expenses as well as increased investment in technology infrastructure. The income from operations in the second quarter was RMB565.4 million compared with RMB333.8 million in the same period of 2023. Net income in the second quarter was RMB840.5 million an increase of 38% from RMB600 and RMB9 million in the same period of 2023.

Operator: To ask a question, you may press star then 1 on your telephone keypad.

Speaker Change: So if they could call it or the monthly active shopper reached 2.65 million, so marking our year over year decrease of 3% and I quote them part of our core growth of trying to grow 4%.

Operator: If you are using a speakerphone, please pick up your handset before pressing the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.

Operator: For the benefit of all participants on today's call, if you wish to ask your question to, management in Chinese, please immediately repeat your question in English.

Speaker Change: So what were the main driver behind this growth and just to use a structural steel trending towards to the direct shippers. Thank you.

Operator: At this time, we will pause momentarily to assemble our roster.

Operator: Our first question comes from Ronald Kung with Goldman Sachs.

Ronald Kung: Please go ahead.

Speaker Change: Yeah.

Simon: Thank you, Eddy. The second quarter's strong user growth momentum was mainly driven by our effective user acquisition strategies. Our ongoing investment in online channels, branding campaigns, and offline truck stickers advertising brought a steady stream of high-quality new users to our platform. Additionally, seasonal factors played a role as some shipments delayed during the Chinese New Year holiday were shipped during the busy shipping season in Q2, resulting in higher shipping demand. From a user's structure perspective, the proportion of direct shippers continued to rise. In Q2, monthly active direct shipers increased by more than 38% year over year, and direct shipers contributed approximately 48% of the total for few others.

Eddie: Thank you Eddie the second quarter's strong user growth momentum was mainly.

Eddy Wang: Thank you.

Ronald Kung: Thank you, President Zhang and Simon.

Ronald Kung: I would like to ask about the fact that our orders for the second quarter increased by 22 points.

Ronald Kung: This is a very good performance, which is better than the large-scale delivery.

Ronald Kung: However, compared to the first quarter, there is still a delay.

Simon Tai: Thank you, Eddy. The second quarter's strong user growth momentum was... 主要由於我們有效的利用客戶購買策略, Our ongoing investment in online channels, branding campaigns, and offline truck sticker advertising brought a steady stream of high-quality new users to our platform. Additionally, seasonal factors played a role, as some shipments delayed during the Chinese New Year holiday were shipped during the busy shipping season in Q2, resulting in higher shipping demands.

Speaker Change: Mainly driven by our effective user acquisition strategies.

Ronald Kung: I would like to know some of the main driving factors.

Ronald Kung: Also, can you share with us how you see the growth of the third quarter and the whole year?

Speaker Change: Our ongoing investment.

Ronald Kung: Let me translate.

Simon Tai: Thank you, Ronad.

Speaker Change: In online channels, a branding campaigns and offline trucks sticker advertising.

Simon Tai: Our robust order volume growth in Q2 was primarily driven by three main factors, our expanding, shipper user base, product and operational strategy optimization that drove continued improvements in user activities, and incremental volume from new business.

Simon Tai: This was partially offset a little bit by the overall demand weakness in the road freight, since Q2 and extreme weather conditions in May and June, particularly the prolonged heavy rains in eastern and southern part of China, as well as flooding in the south and drought in the north.

Simon Tai: From a user base perspective, we continue to efficiently acquire users in the second, quarter. Our average number of monthly active shippers increased by 32.8% year-over-year to 2.65, million, extending the first quarter's accelerated growth trajectory. Our operations team concentrated on all-round support on new shippers, which improved the, user engagement from registration to their first shipment, posting, and fulfillment.

Brought a steady stream of high quality high quality, new users to our platform.

M.C.O.: Leng Gap adjusted operating income and adjusted net income increased by 55.1% and 34.2% over year to R&B 699 million and R&B 971 million respectively.

M.C.O.: On the non-gap measures, our adjusted operating income in the second quarter was RMB699 million an increase of 55.1% from RMB450.7 million in the same period of 2023. Our adjusted net income in the second quarter was RMB970.9 million an increase of 34.3% from RMB722.7 million in the same period of 2023. The basic and diluted net income per ADS were on the 0.79 in the second quarter, compared with on the 0.57 in the same period of 2023, Nong Gap adjusted basic net income per ADS was on the 0.92 in the second quarter, compared with on the 0.68 in the same period of 2023, Nong Gap adjusted diluted net income per ADS was on the 0.91 in the second quarter, compared with on the 0.68 in the same period of 2023, F of June 30, 2024, the company had cash and cash equivalent, restricted cash, shortened investments, long-term time deposits and wealth management products, with materials, materials over one year of R&B 26.8 billion in total, compared with R&B 27.6 billion as of December 31, 2023.

Speaker Change: Additionally, seasonal factors played a role as some shipments delayed during the Chinese new year holiday were shipped during the busy shipping season in Q2, resulting in higher ship shipping demand.

Simon Tai: From a user structure perspective, the proportion of direct shippers continue to rise. In Q2, monthly active direct shippers increased by more than 38% year-over-year, and direct shippers contributed approximately 48% of the total fulfilled orders.

Speaker Change: From a user's structure perspective, but the proportion of direct shippers continue to rise in.

M.C.O.: [inaudible] Liu.

Speaker Change: In Q2 luxury active direct shippers increased by more than 38% year over year and direct shippers can contribute approximately 48% of the total for few of the others and similar to previous quarters. The majority of the new ship for users are small to medium sized business owners, who have a higher likely.

Simon Tai: And similar to previous quarters, the majority of the new shipper users are small to medium-sized business owners, who have a higher likelihood of placing and fulfilling orders. They also prioritize timely response and quality transportation services, further boosting fulfillment rates.

Simon: Similar to previous closings, the majority of the new shipper users are small to median size business owners. We have a higher likelihood of placing and fulfilling others. They also prioritize timely response and quality transportation services, further boosting for human race. On the other hand, direct shippers naturally tend to have a lower order frequency than professional shippers. To increase new direct shippers' order frequency, we continue to enhance the trucker credit rating system to improve overall service quality and standards. Leveraging our advantages in pricing, matching efficiency, and trucker management capabilities, we aim to provide better service than those offline brokers that these users previously relied on.

Speaker Change: Placing in fulfilling others. They also prioritized timely response and quality transportation services further boosting fulfillment rates.

Simon Tai: On the other hand, direct shippers naturally tend to have a lower order frequency than professional shippers.

Speaker Change: On the other hand direct shippers naturally tend to have a lower order frequency them professional shippers to increase new direct shippers or their frequency, we continue to and calls to truckload credit grading system to improve overall service quality and standards.

Simon Tai: To increase new direct shippers' order frequency, we continue to enhance the trucker credit rating system to improve overall service quality and standards.

Simon Tai: Leveraging our advantages in pricing, matching efficiency, and trucker management capabilities.

Speaker Change: Leveraging our advantages in pricing matching efficiency.

Speaker Change: And trucker management capabilities.

Simon Tai: We aim to provide better service than those offline brokers that these users previously relied on.

Speaker Change: We aim to provide better service than those offline brokers that these users previously relied on.

Simon Tai: And also, we are strengthening our user coverage with a more comprehensive area of services, including the lessened truck load, short haul, and TMS systems to cater a wider range of shipping needs for small to medium-sized shippers and increase usage frequency.

Simon: Also, we are strengthening our user coverage with a more comprehensive area of services, including the less-and-truck load, short-haul and PMS systems, located in a wider range of shipping needs, for small to-megan size strippers and increase usage frequency.

Speaker Change: So we are strengthening our user coverage with a more comprehensive area of services, including the lessened truckload short haul and Pms assistance to cater to a wider range of shipping needs.

Speaker Change: Small to medium sized strippers an increase.

M.C.O.: For our third quarter, 2020, 24 business outlook, we expect our total revenues to be between R&B, we expect our total revenues to be between R&B 2.78 billion and R&B 2.82 billion, representing a year-over-year growth rate of approximately 21.9% to 24.6%. This forecast reflects the company's current and preliminary review of the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date year-off.

Speaker Change: Usage frequency.

Simon Tai: And looking ahead as we expand, as our brand exposure and awareness continue to rise, we expect a growing number of small to medium-sized business owners to join our platform, driving sustained auto volume growth in the rest of the year.

Simon: Looking ahead, as we extend as our brand, exposure and awareness continue to rise, we expect a growing number of small to-megan size business owners to join our platform for having sustained auto-bottom growth in the rest of the year.

Speaker Change: Looking ahead as we extend a.

As our brand exposure and awareness are continuing to rise we expect a growing number of small to medium sized business owners to join our platform driving sustained although volume growth and the rest of it.

Speaker Change: Yeah.

Julie Lee: Our next question comes from Julie Lee with CICC. Please go ahead. You may be muted. Julie Lee with CICC, please go ahead. Thank you for your question. I have a question for you.

Operator: Our next question comes from Jiulu Li with CICC.

Speaker Change: Our next question comes from Julie Li.

Speaker Change: Let's see I see.

Speaker Change: Please go ahead.

M.C.O.: That concludes our prepared remarks.

Mao Mao: We would now like to open a call to Q&A. Operator, please go ahead.

Speaker Change: Okay.

Operator: We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.

Speaker Change: You may be muted.

Speaker Change: Okay.

Operator: Please go ahead.

Julie Li: Julie will that be.

Speaker Change: What sort of ICC. Please go ahead.

Operator: You may be muted.

Speaker Change: Okay did you know what I'm, saying.

Operator: At this time, we will pause momentarily to assemble our roster.

Jean Marc: Jean Marc.

Operator: Jiuli Li, with CICC.

Jean Marc: Hello.

Speaker Change: Hey, how are doing.

So I think that's the one megawatt.

Speaker Change: Yeah.

Speaker Change: But you don't think I'll again, maybe not.

Ronald Keung: Our first question comes from Ronald Cume with Goldman Sachs. Please go ahead. But if you are using a speaker phone, you will still have some changes.

Operator: Please go ahead.

Speaker Change: Well they Didnt go I guess ego and T J got them indefinitely Mcguire.

Jiulu Li: Let's take a look at Hui Yuan's progress. Thank you, Jiulu. We're pleased with our year-to-date shipper member, Guo Freight, as Jun, the number of shipper members reached 860,000 compared with 700,000. And 80,000 a year ago. Paying user growth was mostly driven by an increase in the number of new users and enhanced membership operations that have boosted conversions. In Q2, the increase in new paying shipper members came primarily from direct shippers. To support this trend, we strategically lowered the payment barrier for new users with occasional free trial membership offers as well as the R&B 288 mini membership package.

Speaker Change: Well there you go I think Jack well my adult Consol Bergen, Norway.

Speaker Change: So without guys. So you guys know how much you should you're.

Speaker Change: Anyway, so I'm going to take all questions and John I wouldn't know.

Speaker Change: Well have to wait and.

Speaker Change: Sure.

Speaker Change: Thank God.

Speaker Change #100: Yeah, and I think that's how you'd Washington.

Speaker Change #100: Anyway at MSCI.

Jiulu Li: OK,可以听到我的声音吗?

Sam: If you want to know more about the development factors, and if you want to know more about the development factors, please let us know in the comments. Thank you, management. We see that the fulfilled order grew around 22% in the second quarter, still much faster than overall freight market, but growth rate has slowed versus the first quarter. So what were the factors behind drivers and based on the trends so far, can you share how do you view all the volume growth into the third quarter and for the full year?

Chen: Could you provide an update on your brand things others, what Chen <unk> CEO of member users E second quarter. Despite the rapid growth in monthly I can ship it.

Speaker Change #102: Sheppard yeah over your growth even ship her friend this team's done it's in revenue mode. It what are the main reasons worthy.

M.C.O.: Building on last quarter's momentum, our fulfillment rate also continued to rise in a second quarter, reaching approximately 33.7% over three percentage points year over year.

Speaker Change #103: Discrepancy thank you.

Julie Li: Thank you Julie.

Speaker Change #104: We're pleased with our year to date shipper of member growth rate as of June.

Speaker Change #104: The number of shipper members reached 860.

Speaker Change #104: <unk> thousand compared with seven 780000, a year ago paying user growth was mostly driven by the increase in the number of new users and a host of membership operations.

Sam: Thank you. Thank you, Ronald. Our robust order volume growth in Q2 was primarily driven by three main factors, our expanding shipper user base, product and operational strategy and optimization that drove considerable improvements in user activities and incremental volume from new business. This was partially offset a little bit by the overall amount of weakness in the role of freight since Q2 and extreme weather conditions in May and June, particularly the prolonged heavy rains in eastern and southern part of China as well as flooding in the south and drought in the north.

M.C.O.: With the number of small and medium sized direct shippers growing faster than our 1688 members shippers, our shipper structure continued to improve, leading to an increased overall structure.

Speaker Change #104: Boosted conversions.

Speaker Change #104: Due to the increase in new paint shipper members came primarily from direct shippers to.

Speaker Change #104: To support this trend, we strategically lowered the payment barrier for new users with occasional free trial membership offers as well as the RMB 288 mini membership package. Meanwhile, we also increased the benefits for existing shipper members' benefits for our member users include.

Jiulu Li: Meanwhile, we also increased benefits for existing shipper members. Benefits for our member users include faster truck sourcing, access to top-rated truckers, and free freight insurance. All of which help convert non-member users to members and improve existing members' repurchase rate. Currently, the repurchase rate for shipper members remains above 80%, demonstrating existing members' high reliance and stickiness on our platform. As we continue to improve our freight listening products and refine our operational strategies, we're confident that we will consistently attract more paying members and further increase user retention. Thank you.

Food faster truck sourcing access to top rated truckers and free freight insurance all of which help convert non member users to members and improve existing members repurchase rate currently.

Sam: From a user-based perspective, we continue to efficiently acquire users in the second quarter. Our average number of monthly active shippers increased by 32.8% year-over-year to 2.6-5 million, extending the first quarter's accelerated growth trajectory. Our operations team concentrated on all the health support and new shippers which improved the user engagement from registration to their first shipment, posting and for refuelment. For our product and operational strategies, this quarter we focused on increasing the proportion of price orders from shippers and optimizing premium cargo bidding for melting hot for truckers.

Speaker Change #104: Currently the repurchase rate for shipper members remains above 80% demonstrating existing members high reliance and stickiness on our platform.

Speaker Change #104: As we continue to improve our freight listening products and refining our operational strategies.

Speaker Change #104: Confident that we will consider consistently attract more paying members and further increase user retention.

Speaker Change #105: Thank you.

Speaker Change #105: Yeah.

Okay.

Speaker Change #105: Okay.

Brian Gong: Our next question comes from Brian Gong with City. Please go ahead. Hi, Mr. Zhang Hui. Hello, Mr. Mao. Thank you for your question.

Speaker Change #105: Our next question comes from Brian Dobson with Citi. Please go ahead.

Jiulu Li: 对,感谢管理员接受我的提问,晚上好,也恭喜公司取得非常稳健的一个业绩。那我这边主要就是一个问题,就是请咱们介绍一下我们关于会员服务的一个进展。我们二季度看到的会员人数大概是一个什么样的趋势?

Speaker Change #106: Hey, Joe horizontal some of them are Muslim Wow. That's it it's just that she wasn't so Sharon can we see that likely will go down.

Sam: Encouraging shippers to post price orders has increased truckers within us to accept orders and enhancing matching efficiency. This was particularly true for professional shippers whose human ways improved significantly. Notably the proportion of price orders posting reached 60% in the quarter. We also continue to refining our premium cargo bidding feature to strengthen truckers' perception of high-value orders. This product is designed to reward truckers with access to better orders after completing an average or below average order which motivates them to stay active and increase their human frequency on the platform.

Brian Gong: First of all, I'd like to ask you a question. I'd like to ask you a question. What do you think of the current situation in the world? Is it possible to see the current situation in the world? And what is the main advantage of the current situation in the world? Thank you. Thank you, Mr. Zhang.

Speaker Change #106: Uh huh.

Speaker Change #106: Yes.

Speaker Change #108: What's the Orange that you aren't you too.

Speaker Change #109: Oh, Yeah, Oh momentarily.

Speaker Change #110: Since you called them.

Speaker Change #110: Okay.

Speaker Change #110: Joining me that you're showing your jumbo.

Speaker Change #110: Yeah.

Speaker Change #110: Hum.

Speaker Change #111: <unk>, we are probably well, it's just that much harder.

Jiulu Li: 因为相较于这个快速增长的获主月活,获主会员费的收入,我们看这块的这个增速会相对更慢一些,那这个差异主要是什么呢?

Simon: I would like to ask you a question. How was the trucker group overall activity in the same quarter? Has the continuous increase in commission rate negatively affected truckers' activity level? And what are our case strategies and priorities for trucker operation currently? Thank you. Thank you, Brian. Our average monthly active member of truckers responding to others remained about 3 million in the second quarter, with quarterly growth of more than 8%. Ensuring an adequate carrier capacity supply. The number of days that truckers search for freight on a platform and the other fulfillment frequency per active trucker also knows in this moment.

Speaker Change #110: Uh huh.

Speaker Change #112: So homeless Crocker.

All activities in the same quarter, Hasbro continually increasing commission a week negatively affecting the truckers activity level.

Speaker Change #112: And our.

Crocker: Our key strategies and the priorities for Crocker operation currently thank you.

Sam: The new business, the bulk, less in truck load and short-haul segments continue to grow rapidly and contribute to our business volume. Given the industry trend toward LTL and our unique user advantage in this segment, we expect substantial future goals in the LTL business. Looking ahead to the coming third quarter, despite the ongoing impact of extreme weather and the macro environment, we remain confident that increasing online penetration driven by user goals and product enhancement will enable us to achieve other volume growth of over 20% for the full year. Thank you. Thank you, Sam.

Jiulu Li: 那这里我也简单翻译一下。您可以提供更新您的会员服务,您在二季度看到的会员人数是什么样的趋势?

Crocker: Thank you, Brian our average monthly active member of truckers responding to others.

Crocker:

About 3 million in the second quarter with quarterly growth of more than 8%, ensuring an adequate carrier capacity supply the number of days that truckers search for freight on our platform and the order fulfillment frequency proactive truck are all singles.

Crocker: In this quarter within our existing cheered truck trucker rating system, we continue to deepen truckers relying less on our platform by refining.

Simon: Within our existing, tiered trucker rating system, we continue to deepen truckers relying on our platform by refining product features across various scenarios. As we mentioned earlier, one of our key projects in the second quarter was the rollout of our premium cargo bidding function. Previously, high-quality freight authors on our platform were often fulfilled before many truckers had the chance to bid, leading to a perception that high-quality freight sources were in short supply. This negatively affected both our matching efficiency and for human base. With the launch of the premium cargo bidding, our platform now tax and hold high-quality freight authors to give more truckers enough time to review and bid on those orders.

Crocker: <unk> features across various scenarios as we mentioned earlier one one of our key projects in the second quarter was to rollout.

Jiulu Li: 尽管获主月活增速增长,但获主会员费的收入是增长的一年一年。这些差异主要的原因是什么呢?

Eddy Wang: The next question comes from Eddie Wong with Morgan Stanley. Please go ahead. [inaudible] Hello, Mr. Zhang. Thank you, Eddy. The second quarter's strong user growth momentum was mainly driven by our effective user acquisition strategies. Our ongoing investment in online channels, branding campaigns, and offline truck stickers advertising brought a steady stream of high quality new users to our platform. Additionally seasonal factors played in role as some shipments delayed during the Chinese New Year holiday were shipped during the busy shipping season Q2, resulting in higher shipping demand.

Simon Tai: For our product and operational strategies, this quarter we focused on increasing the, proportion of priced orders from shippers and optimizing premium cargo bidding for truckers. Encouraging shippers to post price orders has increased truckers' willingness to accept, orders, enhancing matching efficiency. This was particularly true for professional shippers whose fulfillment rates improved, significantly. Notably, the proportion of priced orders posting reached 60% in the quarter. We also continue refining our premium cargo bidding feature to strengthen truckers' perception, of high-value orders.

Crocker: Of our premium cargo bidding function previously high quality freight others. Although platform. We're often for few before many truckers and had the chance to bid leading to a perception that he had that high quality freight sources or are in short supply.

Crocker: This negatively affected both our matching efficiency and fulfillment rates with the luck with the launch of the premium cargo bidding our platform now tax and hold high quality freight others to give more truckers enough time to review and bid on those orders by extending these others exposure time, we built and reinforced it.

Jiulu Li: 谢谢。 Thank you, Jiulu.

Simon Tai: This product is designed to reward truckers with access to better orders after completing, an average or below-average order, which motivates them to stay active and increase their fulfillment frequency on the platform.

Simon Tai: We're pleased with our year-to-date shipper member growth rate.

Simon Tai: As of June, the number of shipper members reached 860, compared with 780,000 a year ago.

Simon Tai: Paying user growth was mostly driven by an increase in the number of new users and enhanced membership operations, that have boosted conversions.

Simon Tai: In Q2, the increase in new paying shipper members came primarily from direct shippers. To support this trend, we strategically lowered the payment barrier for new users with occasional free trial membership offers as well as the RMB 288 mini-membership package.

Simon Tai: Meanwhile, we also increased benefits for existing shipper members. Benefits for our member users include faster truck sourcing, access to top-rated truckers and free freight insurance, all of which help convert non-member users to members and improve existing members' repurchase rates. Currently, the repurchase rate for shipper members remains above 80 percent, demonstrating existing members' high reliance and stickiness on our platform.

Simon Tai: As we continue to improve our freight listing products and refine our operational strategies, we're confident that we will consistently attract more payment members and further increase user retention.

Simon: By extending these others' exposure time, we built and reinforced the perception that our platform has plenty of good freight authors. This also creates a fairer, other bidding environment, which increases trucker users' thickness and improve overall for human base. In terms of optimizing service scenarios, we have capitalized on the angle going trend toward LTL shipping and created a dedicated carpool LTL carpool zone to improve trucker efficiency in consolidating the loads. In addition to how truckers report empty spaces, we launched our carpool assistant, which enables more accurate identification of carpooling needs and increases its success rate. We're confident with effective and we find operational strategies in place to ensure an overall positive experience for trucker users on the platform and help them increase their income.

Crocker: Perception that all the that our platform has plenty of good for others.

Simon Tai: Thank you.

Crocker: This also creates a fair oh, they're bidding environment in which he increases trucker user stickiness and improve overall fulfillment rates.

Speaker Change #114: In terms in terms of optimizing our service scenarios. We have kept lies on the uncle going trend toward a L. T O shipping and creating and created a dedicated carpool L. T O car perusal to improve truck or efficiency and consolidate them alone. In addition to help truckers.

Simon Tai: The new business, the bulk, less-than-truckload, and short-haul segments continue to grow rapidly, and contribute to our business volume.

Simon Tai: Given the industry trend toward LTL and our unique user advantage in this segment, we, expect substantial future growth in the LTL business.

Speaker Change #114: Report empty spaces, we launched our carpool assistant, which enables more accurate identification of car putting needs and increase it.

M.C.O.: In the second quarter, the other contribution from our 688 members shippers and non-members shippers climbed to 48% breaking the record set's last quarter.

Speaker Change #114: Success rate.

M.C.O.: In addition, higher fulfillment rates among our 688 members and non-members shippers throw the improvement in our overall fulfillment rate.

Simon Tai: Looking ahead to the coming third quarter, despite the ongoing impact of extreme weather, and the macro environment, we remain confident that increasing online penetration driven by user growth and product enhancement will enable us to achieve order volume growth of over 20% for the full year.

Speaker Change #114: We're confident that with our effective and refined operational strategies in place that can ensure an overall positive experience for trucker users on the platform and help them increase their income.

Simon Tai: Thank you.

Simon: Thank you.

Speaker Change #114: Thank you.

Speaker Change #114: Okay.

Charlie Chen: Our next question comes from Charlie Chen with China Renaissance. Please go ahead. Thanks for taking my question. I have one question regarding the interested shipments. How did the interested shipments business progress in the second quarter of this year? And what is the overall operational strategy for this transaction type in the second half of this year? Thank you. Thank you, Charlie.

Operator: Our next question comes from Brian Gong with Citi.

Operator: Thank you, Simon.

Speaker Change #114: Our next question comes from Charlie Chen with China Renaissance. Please go ahead.

Operator: The next question comes from Eddie Wong with Morgan Stanley.

Eddy Wang: Please go ahead.

Brian Gong: Please go ahead.

Speaker Change #115: Sure Glenn It's Angola, Jay do you want to do it well it's been Jill you go when she just usually you would Oh my Central Asia just yet.

Eddy Wang: From a user's structure perspective, the proportion of direct shipping continues to rise. In Q2, monthly active direct shipping increased by more than 38 percent year of the year, and direct shipping can contribute approximately 48% of the total for few others. Similar to previous closings, the majority of the new shipping users are small to medium size different owners. We have a higher likelihood of placing and fulfilling others. They also prioritize timely response and quality transportation services further boosting for human race.

Speaker Change #116: So you would say aren't you too chunky fashion drunk Washington.

Siobhan: Siobhan M D J Shaun Yeah, whether you got financial issues.

Yeah.

Brian Gong: 喂,江辉总,Simon总,毛毛总,晚上好,感谢接受我的提问,首先恭喜在外部有各种挑战的情况下,公司取得非常不错的业绩,我想问一下就是二季度接单司机的活跃情况如何,我们抽佣率是在稳健提高的吗?是否看到抽佣率的提升有影响到司机群体的接单品质,以及我们目前对司机运营的主要策略和重点是什么?

Eddy Wang: Thank you for taking my question.

Speaker Change #118: Management for taking my question I have only one question regarding the interest at shipment how did the interest at shipment business progress in the second quarter of this year and what is the overall operational strategy for this transaction types in the second half of this year. Thank you.

Eddy Wang: My question is regarding the active shipper MAU. So in the second quarter, the monthly active shipper reached 2.65 million, marking a year-over-year, increase of around 33%, and a quarter-over-quarter growth of 24%.

Brian Gong: 好的,谢谢,我简单翻译一下。二季度接单司机的活跃情况如何?是否看到抽佣率的提升有影响到司机运营的主要策略和重点是什么?

Brian Gong: 谢谢。 Thank you, Brian.

Speaker Change #119: Thank you Charlie.

Eddy Wang: On the other hand direct shipping naturally tend to have a lower order frequency than professional shippers. To increase new direct shippers order frequency, we continue to enhance the trucker credit rating system to improve overall service quality and standards. Leveraging our advantages in pricing, matching efficiency, and trucker management capabilities, we aim to provide better service than those offline brokers that these users previously relied on. Also, we are strengthening our user coverage with a more comprehensive area of services, including the less-and-truck load, short haul, and PMF systems to cater a wider range of shipping needs for small to medium-sized shippers and increase usage frequency.

Simon: The interested shipments business grew rapidly in the second quarter, with fulfilled orders accounting for more than 6% of total other volume. This is also a new record hack. We see that our pricing strategy optimization was one of the main drivers of this rapid order growth, volume growth, by integrating algorithm and additional, this is logic we created and more comprehensive and accurate pricing model. Effective control of the price premium has entitled both shippers and truckers to enjoy more balanced freight prices, which in turn has stimulated more order matching and for human compost, and second, the influx of new users also has also led to an increasing trusted shipment orders, which has a lower barrier to entry for posting and a more hands-on customer service team.

Simon Tai: Our average monthly active member of Truckers responding to orders, remained about 3 million in the second quarter, with quarterly growth of more than 8%, ensuring an adequate carrier capacity supply.

Eddy Wang: So what were the main drivers behind this growth, and is the user structure still trending, towards the direct shippers?

Speaker Change #120: The entrust their shipment business grew rapidly in the second quarter with fulfilled orders accounting for more than 6% of total other volume. This was also a new record high.

Speaker Change #121: We see that our pricing strategy optimization was one of the main drivers of this rapid articles.

Speaker Change #122: By integrating our other reason and additional this is logical we created a more comprehensive and accurate pricing model.

Effective control of the price premium is entitled.

Speaker Change #122: Both shippers and truckers to enjoy more balanced freight prices, which in turn has stimulated more other matching and fulfillment on both ends.

Speaker Change #122: And the influx of new users.

Speaker Change #122: Also it has also led to an increasing trusted shipment orders, which has a lower barrier to entry for posting in a more hands on customer service team.

M.C.O.: Looking ahead, we are confident there's significant potential to further elevate our fulfillment rate through ongoing product and service upgrades as well as continued refinement to our freight matching services infrastructure.

Sam: Looking ahead, as we extend as our brand, exposure and awareness continue to rise, we expect a growing number of small to medium-sized business owners to join our platform driving sustained auto-borrowing growth in the rest of the years.

Simon: These features are well suited to new shippers' needs, making in trusted shippers their preferred choice.

Speaker Change #122: These features features are well suited to new shippers needs, making entrusted shipments their preferred choice.

Simon: Operationally, we are currently focusing on our tiered trucker rating system to ensure the quality of trusted shipment transportation. This includes functions like delayed order displays, which shows entrusted shipment orders to quality trucker source and then to median tier truckers after a delay, ensuring that the platform has sufficient transportation capacity. In addition, those risky truckers, such as those who have received serious complaints, are excluded from viewing trusted shipment orders. As we move through the year, we expect ongoing improvement in product optimization, pricing strategy, and user experience, among other aspects, all of which contribute to the rapid growth of order for human India and trusted shipment business.

Simon Tai: The number of days that truckers search for freight on our platform and the order fulfillment frequency per active trucker also rose in this quarter. Within our existing tiered trucker rating system, we continue to deepen truckers' reliance on our platform by refining product features across various scenarios.

Speaker Change #122: Operationally, we are currently focusing on our tiered truck or rating system to ensure the quality of and trusted shipment tranche of transportation. This includes functions like delayed or the displays with shows and trusted shipment orders to quality truckers sourced and then to medium tier truckers after it.

Simon Tai: As we mentioned earlier, one of our key projects in the second quarter was to roll out of our premium cargo bidding function. Previously, high-quality freight orders on our platform were often perfumed before many truckers had the chance to bid, leading to a perception that high-quality freight sources were in short supply. This negatively affected both our matching efficiency and perfuming rates. With the launch of the premium cargo bidding, our platform now tags and holds high-quality freight orders to give more truckers enough time to review and bid on those orders.

Simon Tai: By extending these orders' exposure time, we build and reinforce the perception that our platform has plenty of good freight orders. And this also creates a fair order bidding environment, which increases trucker user stickiness and improves overall fulfillment rate.

Julie Lee: Our next question comes from Julie Lee with CICC. Please go ahead. You may be muted. Julie Lee with CICC. Please go ahead. Thank you for your question. I have a question for you.

Simon Tai: In terms of optimizing service scenarios, we have capitalized on the ongoing trend toward LTL shipping and created a dedicated LTL carpool zone to improve trucker efficiency in consolidating load. In addition to help truckers report empty spaces, we launched our Carpool Assistant, which enables more accurate identification of carpooling needs and increased.., successfully.

Speaker Change #122: Ensuring that the platform has sufficient transportation capacity. In addition, those risky truckers such as those who have received serious complaints are excluded from beauty and trusted chip and the others.

Speaker Change #122: As we move through the year, we expect ongoing improvements in product product optimization pricing strategy and user experience among other aspects all of which.

Speaker Change #122: All of which contribute to the rapid growth of order fulfillment, India interested shipment business.

Eddy Wang: Thank you.

Simon: Thank you.

Speaker Change #123: Thank you.

Simon Tai: Thank you, Eddy.

Speaker Change #123: Thank you.

Thomas Chong: Our next question comes from Thomas Chong with Jeffries. Please go ahead. Thanks, management, for taking my question. My question is about LTL, less than truckload business. Can management comment about the order volume growth in the second quarter? And the management industry trend from FTL to LTL continues in the second quarter. And how do we position in the sector going forward? Thank you. Thank you, Thomas.

Operator: Our next question comes from Charlie Chen with China Renaissance.

Speaker Change #124: Our next question comes from Thomas Chong with Jefferies. Please go ahead.

Charlie Chen: Please go ahead.

Simon Tai: The second quarter's strong user growth momentum was mainly driven by our effective user acquisition, strategies. Our ongoing investment in online channels, in branding campaigns, and offline truck sticker, advertising brought a steady stream of high-quality new users to our platform.

Jay Sole: Well I'll just make one each from Jay sole with its human teachers.

Charlie Chen: Thank you for giving me the opportunity to ask this question.

Speaker Change #126: Keytruda on holiday yet.

Charlie Chen: I only have one question here, which is about Utrecht business.

Simon Tai: Additionally, seasonal factors played a role, as some shipments delayed during the Chinese, New Year holiday were shipped during the busy shipping season in Q2, resulting in higher shipping demand.

Well the when do you see one you dunson Danielle.

Charlie Chen: We would like to ask how is the overall development of Utrecht business in the second quarter?

Speaker Change #127: What are you chunk of it but it's not.

Speaker Change #127: Oh that sounds too.

Jiulu Li: Let's take a look at Hui Yuan's progress. What can you see in your member users in the second corner? Thank you, Jiulu. We are pleased with our year-to-date Shipper Member Goal Freight. The number of Shipper Members reached 860,000 compared with 780,000 a year ago. Paying user growth was mostly driven by an increase in the number of new users and enhanced membership operations that have boosted conversions. In Q2, the increase in new paying Shipper Members came primarily from direct Shippers.

Speaker Change #127: No it wasn't.

Speaker Change #127: Backlog that you choose to ship.

Charlie Chen: And what is the development strategy for this business in the second half of the year?

Speaker Change #127: James do you mean like a woman.

Speaker Change #127: Yeah.

Charlie Chen: Let me translate it first.

Speaker Change #129: Hi, Thanks management for taking my question. My question is about MTO, that's been truckload piece in that Okay management comment about the order volume well in the second quarter and the.

Charlie Chen: Thanks management for taking my question.

Charlie Chen: I have only one question regarding the interest rate shipment.

Simon Tai: From a user structure perspective, the proportion of direct shippers continued to rise. In Q2, monthly active direct shippers increased by more than 38% year-over-year, and direct, shippers contributed approximately 48% of the total fulfilled orders.

Simon Tai: Similar to previous quarters, the majority of the new shipper users are small to medium-sized, business owners, who have a higher likelihood of placing and fulfilling orders. They also prioritize timely response and quality transportation services, further boosting, fulfillment rates.

Simon Tai: On the other hand, direct shippers naturally tend to have a lower order frequency than, professional shippers.

Simon Tai: To increase new direct shippers' order frequency, we continue to enhance the trucker credit, rating system to improve overall service quality and standards. Leveraging our advantages in pricing, matching efficiency, and trucker management capabilities, we aim to provide better service than those offline brokers that these users previously relied on.

Simon Tai: And also, we are strengthening our user coverage with a more comprehensive area of services, including the less-than-truckload, short-haul, and TMS systems to cater a wider range of shipping needs for small to medium-sized shippers and increase usage frequency.

Simon Tai: And looking ahead, as our brand exposure and awareness continue to rise, we expect a growing, number of small to medium-sized business owners to join our platform, driving sustained auto bottling growth in the rest of the year.

Speaker Change #127: The management.

M.C.O.: Turning to our user base, we continue to make strong progress with our shipper users in the second quarter as evidenced by our average shipper MAUs reaching 2.65 million, representing an increase of 32.8% year over year, and 23.7% quarter over quarter.

Speaker Change #130: The street trend for back to Al to L. E. L continue in the second quarter and how do we position the factor going forward. Thank you.

Charlie Chen: How did the interest rate shipment business progress in the second quarter of this year? And what is the overall operational strategy for this transaction type in the second half of this year?

Operator: Our next question comes from Julie Lee with CICC.

Speaker Change #131: Thank you Thomas the alcohol business alone grew about 47% year over year in the second quarter again outpacing the food truckload. The other contribution of a L. P. L continue to rise from the previous quarter, reaching approximately 28% in the quarter.

Simon: The LTL business alone grew about 47% year over year in the second quarter, again outpacing the food truck load. The other contribution of LTL continue to rise from the previous quarter, reaching approximately 28% in a quarter. The relative outperformance of LTL in recent quarters was attributable to several main factors. The general industry shift toward LTL and the increased online penetration rate resulting from our platforms in host product features. First, the reason adjustments in the supply chain structure have let large manufacturers in sectors such as automotive, all the parts and equipment to establish regional warehouses, ultimately boosting shipping frequency and a gradual increase in LPL demand.

Operator: Please go ahead.

Operator: You may be muted.

Charlie Chen: Thank you.

Operator: Julie Lee with CICC.

Operator: Please go ahead.

Julie Lee: Hi.

Simon Tai: Thank you, Charlie.

Speaker Change #132: The relative outperformance of LPL in recent quarters was attributable to several main factors the general industry shift towards L. P. L. A and the increased online penetration rates, resulting from our all platforms in house product features.

Julie Lee: Okay.

Simon Tai: The entrusted shipment business grew rapidly in the second quarter with fulfilled orders accounting for more than 6% of total order volume. This is also a new record high. We see that our pricing strategy optimization was one of the main drivers of this rapid volume growth. By integrating algorithm and additional business logic, we created a more comprehensive and accurate pricing model. Effective control of the price premium has entitled both shippers and truckers to enjoy more balanced freight prices, which in turn has stimulated more order matching and fulfillment on both ends.

Julie Lee: Can you hear me?

Simon Tai: Second, the influx of new users, also has also led to an increase in trusted shipment orders which has a lower barrier to entry for posting and a more hands-on customer service team.

Julie Lee: 大家好,我主要是想问一下,我们关于会员服务的进展, 我们二季度看到的会员人数大概是一个什么样的趋势,因为相较于快速增长的获主月活,获主会员费的收入,我们看这块的增速会相对更慢一些,那这个差异主要是什么呢?

Speaker Change #133: First the reason adjustments in the supply chain structure have leapt large manufacturers inspecting sectors, such as automotive other parts in.

Simon Tai: These features are well suited to new shippers' needs, making entrusted shipments their preferred choice.

Julie Lee: 那这里我也简单翻译一下, 那这里我也简单翻译一下,在二季度看到的会员服务人数大概是一个什么样的趋势,因为相较于快速增长的获主月活,获主会员费的收入,我们看这块的增速会相对更慢一些,那这个差异主要是什么呢?

Simon Tai: Operationally, we are currently focusing on our tiered trucker rating system to ensure the quality of entrusted shipment transportation. This includes functions like delayed order displays, which shows entrusted shipment orders to quality truckers first, and then to median tier truckers after a delay, ensuring that the platform has sufficient transportation capacity.

Simon Tai: In addition, those risky truckers, such as those who have received serious complaints, are excluded from viewing entrusted shipment orders.

Simon Tai: As we move through the year, we expect ongoing improvement in product optimization, pricing strategy and user experience among other aspects, all of which contribute to the rapid growth of order fulfillment in the entrusted shipment business.

M.C.O.: This quarter's rapid shipper user gain was again attributed to growth among our 688 members shippers and non-members shippers who are mostly low and medium frequency direct shippers.

Operator: Our next question comes from Thomas Chong with Jeffreys.

Julie Lee: 好的,谢谢,我简单翻译一下。是否看到抽佣率的提升有影响到司机运营的主要策略和重点是什么?

Thomas Chong: Please go ahead.

Simon Tai: Thank you, Brian.

Thomas Chong: Good evening.

Thomas Chong: Thank you for accepting my question.

M.C.O.: As we enter the second quarter, we continue to ramp up our new shipper acquisition efforts, leverage in multiple online channels to identify and convert high quality new shippers.

Jiulu Li: To support this trend, we strategically lowered the payment barrier for new users with occasional free trial membership offers as well as the R&B 288 mini membership package. Meanwhile, we also increased benefits for existing Shipper Members, benefits for our member users include faster truck sourcing, access to top rated truckers and free freight insurance, all of which help convert non-member users to members and improve existing members' repurchase rate. Currently, the repurchase rate for Shipper Members remains above 80%, demonstrating existing members' high reliance and stickiness on our platform. As we continue to improve our freight listening products and refine our operational strategies, we're confident that we will consistently attract more paying members and further increase user retention.

Speaker Change #133: And equipment two established a regional warehouses, ultimately boosting shipping frequency and a gradual increase in L. P. L demand.

Thomas Chong: Congratulations on your great performance.

Simon Tai: Our average monthly active member of truckers responding to orders remained about 3 million, in the second quarter, with quarterly growth of more than 8 percent, ensuring an adequate carrier capacity supply. The number of days that truckers search for freight on our platform and the order fulfillment, frequency per active trucker also rose in this quarter.

Simon Tai: In our existing tiered truck rating system, we continue to deepen truckers' reliance, on our platform by refining product features across various scenarios.

Simon: Also, in response to economic conditions, small and medium-sized enterprises are increasingly using large-sized LPL shipping to reduce inventory and improve turnover efficiency. We find that most of our LPL shippers also require large-ticket LPL shipping, meaning there is a significant overlap between these user groups, which minimizes our platform's user acquisition costs. Second, the major LPL players in the market are currently offline, dedicated route operators, which would be very low on our penetration. On the shipper's side, we have already established a massive direct shipper user base, giving us an inherent advantage in user volume. As enterprise users are typically price sensitive, they tend to save your just-save costs wherever possible, and our platform's intermediate-free model effectively helps shippers reduce cost.

Thomas Chong: My question is about the dry-clearing list business.

Simon Tai: As we mentioned earlier, one of our key projects in the second quarter was the rollout of our, premium cargo bidding function. Previously, high-quality freight orders on our platform were often fulfilled before many, truckers had the chance to bid, leading to a perception that high-quality freight sources were in short supply. This negatively affected both our matching efficiency and perfuming rates. With the launch of the premium cargo bidding, our platform now tags and holds high-quality, freight orders to give more truckers enough time to review and bid on those orders.

Speaker Change #133: Also in response to economic conditions small and medium sized enterprises are increasingly using a large sized L. P O shipping to reduce inventory and improve turnover efficiencies. We find that most of our F. P. L. Shippers also require large ticket LPL shipping.

Thomas Chong: Can you share with us the growth rate for the second quarter?

Simon Tai: By extending these orders' exposure time, we build and reinforce the perception that, our platform has plenty of good freight orders. This also creates a fair order bidding environment, which increases trucker user stickiness and, improves overall perfuming rates.

Thomas Chong: And if you look at the trend of the dry-clearing list industry, is it going to continue in the second quarter?

M.C.O.: In particular, we focused on the onboarding and retention of new users, making every effort to provide an exception of human experience during their first three trials.

Speaker: Thank you.

Simon Tai: In terms of optimizing service scenarios, we have capitalized on the ongoing trend toward, LTL shipping and created a dedicated LTL carpool zone to improve trucker efficiency in consolidating loads. In addition to help truckers report empty spaces, we launched our carpool assistant, which enables more accurate identification of carpooling needs and increases its success rate.

Simon Tai: We're confident with effective and refined operational strategies in place we can ensure, an overall positive experience for trucker users on the platform and help them increase their income.

Speaker Change #133: Meaning there is a significant overlap between these user groups, which minimizes our platform's user acquisition costs.

Speaker Change #133: The major L. P. All players in the market are currently offline dedicated route operators, which with very low online penetration on.

Thomas Chong: And what is our position in this sector in the future?

Simon Tai: Thank you.

Speaker Change #133: The shipper side, we have already established a massive direction per user base, giving us.

Thomas Chong: Thanks, management, for taking my question.

Operator: Our next question comes from Charlie Chen with China Renaissance.

Speaker Change #133: Inheritance.

Speaker Change #133: Vantage in user volume as enterprise users are typically price sensitive they tend to save logistics costs wherever possible and our platforms intermediate free model effectively helps shippers reduce cost.

Operator: Please go ahead.

Charlie Chen: Thank you for giving me the opportunity to ask this question.

Brian Gong: Our next question comes from Brian Gong with City. Please go ahead. Thank you, Brian. Our average monthly active member of truckers responding to others remained about 3 million in the second quarter, with quarterly growth of more than 8%. Ensuring and adequate carrier capacity supply. The number of days that truckers search for freight on a platform and the other fulfillment frequency per active trucker also knows in this segment. Within our existing, tiered trucker rating system, we continue to deepen truckers' reliance on our platform by refining product features across various scenarios.

Simon: This quarter, we launched a carpooling zone for our LPL business and housing shippers' awareness of low-cost carpooling and boosting their cargo consolidation efficiency by precisely identifying their carpooling needs. This initiative improves truckers' income levels and lead to an increase in online penetration rate for our platforms, large-sized LPL business. Looking ahead, we will continue to focus on enhancing carpooling and matching efficiency, user experience, and penetration rates in the LPL business to address increasing user demand.

Thomas Chong: My question is about LTL, less than truckload business.

Charlie Chen: I have a question about LTL shipping.

Speaker Change #133: This quarter, we launched a carpooling zone four O L. T L business and housing shippers awareness of low cost carpooling and boosting their cargo consolidation efficiency by precisely identifying their carpooling means this initiative improved truckers income levels and led to an increase in the online penetration rate.

Thomas Chong: Can management comment about the order volume growth in the second quarter?

Thomas Chong: And did the industry trend from FTL to LTL continue in the second quarter?

Speaker Change #133: For our platforms large size L. T. L business looking ahead, we will continue to focus on enhancing carpooling and matching efficiency.

Thomas Chong: And how do we position in the sector going forward?

Thomas Chong: Thank you.

Simon Tai: Thank you, Thomas.

Speaker Change #133: Sort of experience and the penetration rates in the L. T O business to address increasing user demand. We also believe that the L. T O business will continue to play an increasingly important role in our platforms, our future business development.

Simon: We also believe that the LPL business will continue to play an increasingly important role in our platform's future business development. Thank you.

Simon Tai: The LTL business alone grew about 47% year-over-year in the second quarter, again outpacing the full truck load. The order contribution of LTL continued to rise from the previous quarter, reaching approximately 28% in the quarter.

Simon Tai: The relative outperformance of LTL in recent quarters was attributable to several main factors, the general industry shift toward LTL and the increased online penetration rate resulting from our platform's enhanced product features.

Simon Tai: First, the recent adjustments in the supply chain structure have led large manufacturers in sectors such as automotive, auto parts, and equipment to establish regional warehouses, ultimately boosting shipping frequency and a gradual increase in LTL demand.

Simon Tai: Also, in response to economic conditions, small and medium-sized enterprises are increasingly using large-sized LKL shipping to reduce inventory and improve turnover efficiency.

Simon Tai: We find that most of our FTL shippers also require large-ticket LTL shipping, meaning there's a significant overlap between these user groups, which minimizes our platform's user acquisition costs.

Simon Tai: Second, the major LPL players in the market are currently offline dedicated route operators with very low online penetration.

Simon Tai: On the shipper side, we have already established a massive direct shipper user base, giving us an inherent advantage in user volume. As enterprise users are typically price sensitive, they tend to save logistics costs wherever possible and our platform's intermediate free model effectively helps shippers reduce costs.

Simon Tai: This quarter, we launched a carpooling zone for our LTL business, enhancing shippers' awareness of low-cost carpooling and boosting their cargo consolidation efficiency by precisely identifying their carpooling needs.

Simon Tai: This initiative improved truckers' income levels and led to an increase in the online penetration rate of our platform's large-size LTL business.

Simon Tai: Thank you.

Simon Tai: Looking ahead, we will continue to focus on enhancing carpooling and matching efficiency, user experience, and penetration rates in the LTL business to address increasing user demand.

Speaker Change #133: Sure.

Simon Tai: We also believe that the LTL business will continue to play an increasingly important role in our platform's future business development.

Speaker Change #133: Okay.

Operator: And that concludes the question and answer session.

Operator: And that concludes the question-and-answer session.

Speaker Change #134: And that concludes the question and answer session.

Operator: I would like to turn the conference back over to management for any additional or closing comments.

Mao Mao: I would like to turn the conference back over to management for any additional or closing comments. Thank you, once again, for joining us today. If you have any further questions, please feel free to contact us at Photoshop Alliance directly or GPG Ingressively here. Our contact information for AI in both China and the U.S. can be found in increased press release. Have a good day.

Charlie Chen: I would like to ask about the overall development of LTL shipping in the second quarter.

Speaker Change #135: I'd like to turn the conference back over to management for any additional or closing comments.

Charlie Chen: What is the development strategy for this business in the second half of the year?

M.C.O.: In addition to our success with shippers, our trucker users have become increasingly dependent on our platform thanks to the value we bring to the trucker cargo matching process. As of the end of the second quarter, the number of active truckers for feeding orders through FTA over the past 12 months reached 3.98 million, maintaining sequential growth.

Charlie Chen: Let me translate it first.

Charlie Chen: Thanks, management, for taking my question.

Operator: Thank you once again for joining us today.

Charlie Chen: I have only one question regarding the interested shipment.

Speaker Change #136: Thank you once again for joining us today, if you have any further questions. Please feel free to contact us at the first half aligns directly or T. J in rapidly.

Charlie Chen: How did the interested shipment business progress in the second quarter of this year? And what is the overall operational strategy for this transaction type in the second half of this year?

Charlie Chen: Thank you.

Operator: If you have any further questions, please feel free to contact us at Full Truck Alliance directly or TPG Investor Related.

Simon Tai: Thank you, Charlie.

Simon Tai: Thank you.

Simon Tai: The entrusted shipment business grew rapidly in the second quarter with fulfilled orders, accounting for more than 6% of total order volume. This is also a new record high. We see that our pricing strategy optimization was one of the main drivers of this rapid order volume growth. By integrating algorithm and additional business logic, we created a more comprehensive and accurate pricing model. Effective control of the price premium has entitled both shippers and truckers to enjoy more balanced freight prices, which in turn has stimulated more order matching and fulfillment on both ends.

Operator: Our next question comes from Thomas Chong with Jefferies.

Simon Tai: Second, the influx of new users has also led to an increase in trusted shipment orders, which has a lower barrier to entry for posting and a more hands-on customer service team. These features are well suited to new shippers' needs, making entrusted shipments their preferred choice.

Operator: Please go ahead.

Thomas Chong: Good evening.

Simon Tai: In addition, those risky truckers, such as those who have received serious complaints, are excluded from viewing entrusted shipment orders.

Thomas Chong: Thank you for accepting my question.

Operator: If you have any further questions, please feel free to contact us at 4TRACK Alliance, directly or TPG Investor Related.

Simon Tai: As we move through the year, we expect ongoing improvement in product optimization, pricing strategy, and user experience, among other aspects, all of which contribute to the rapid growth of order fulfillment in the entrusted shipment business.

Thomas Chong: Congratulations on a very good performance.

Thomas Chong: My question is about the entrusted shipment order business.

Operator: Our contact information for IR in both China and the U.S. can be found in today's press release.

Thomas Chong: Can you share with us the progress of the second quarter?

Operator: Our contact information for IR in both China and the U.S. can be found in today's press, release.

Speaker Change #136: Our contact information for both China and the U S can be found in today's press release I have a good day.

Thomas Chong: And if so, how does the industry trend in terms of entrusted shipment orders continue in the second quarter?

Thomas Chong: And what is our position in this sector in the future?

Thomas Chong: Thanks, management, for taking my question.

Thomas Chong: My question is about LTL, less than truckload business.

Operator: Have a good day.

Thomas Chong: Can management comment about the order volume growth in the second quarter?

Operator: Have a good day.

Thomas Chong: And did the industry trend from FTL to LTL continue in the second quarter?

Thomas Chong: And how do we position in the sector going forward?

Thomas Chong: Thank you.

Simon Tai: Thank you, Thomas.

Operator: The conference is now concluded. Thank you for attending today's presentation.

Operator: The conference is now concluded.

Simon Tai: The LTL business alone grew about 47% year-over-year in the second quarter, again, outpacing the full truckload. The order contribution of LTL continued to rise from the previous quarter, reaching approximately 28% in the quarter. The relative outperformance of LTL in recent quarters was attributable to several main factors.

Operator: The conference is now concluded.

Speaker Change #137: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Simon Tai: The general industry shift toward LTL and the increased online penetration rate, resulting from our platform's enhanced product features. First, the recent adjustments in the supply chain structure have led large manufacturers, in sectors such as automotive, auto parts, and equipment to establish regional warehouses, ultimately boosting shipping frequency and a gradual increase in LTL demand.

Simon Tai: Also in response to economic conditions, small and medium-sized enterprises are increasingly, using large-sized LTL shipping to reduce inventory and improve turnover efficiency.

Operator: Thank you for attending today's presentation.

Simon Tai: We find that most of our FTL shippers also require large-ticket LTL shipping, meaning, there is a significant overlap between these user groups, which minimizes our platform's user acquisition costs.

Simon Tai: Second, the major LTL players in the market are currently offline dedicated route operators, which with very low online penetration.

Operator: You may now disconnect.

Simon Tai: On the shipper side, we have already established a massive direct shipper user base, giving, us an inherent advantage in user volume. As enterprise users are typically price sensitive, they tend to save logistics costs wherever, possible and our platform's intermediate free model effectively helps shippers reduce costs.

Simon Tai: This initiative improved shippers' income levels and led to an increase in online penetration, rates for our platform's large-sized LTL business.

Simon Tai: Looking ahead, we will continue to focus on enhancing carpooling and matching efficiency, user experience, and the penetration rates in the LTL business to address increasing user demand.

Simon Tai: We also believe that the LTL business will continue to play an increasingly important, role in our platform's future business development.

Simon Tai: Thank you.

Operator: And that concludes the question and answer session.

M.C.O.: Xi.

Brian Gong: As we mentioned earlier, one of our key projects in the second quarter was the roll-out of our premium cargo bidding function. Previously high-quality, freight others on our platform were often fulfilled before many truckers had the chance to bid into a perception that high-quality freight sources were in short supply. This negatively affected both our matching efficiency and for human base. With the launch of the premium cargo bidding, our platform now tax and hold high-quality freight others to give more truckers enough time to review and bid on those orders.

Operator: I would like to turn the conference back over to management for any additional or closing, comments.

Operator: Thank you once again for joining us today.

M.C.O.: Our approach to high-quality order bidding also enabled us to steer truckers toward median quality orders, giving us greater control over the distribution of order posting.

Brian Gong: By extending these others exposure time, we build and reinforce the perception that our platform has plenty of good freight others. This also creates a fair other bidding environment, which increases trucker users' thickness and improves overall for human base.

Speaker: In terms of optimizing service scenarios, we have capitalized on the angle going trend toward LTR shipping and created a dedicated carpool LTR carpool zone to improve trucker efficiency in consolidating the loads. In addition to how truckers report empty spaces, we launched our carpool assistant, which enables more accurate identification of carpooling needs and increase its success rate. We're confident with effective and refined operational strategies in place, we can ensure an overall positive experience for trucker users on the platform and help them increase their income.

Speaker: Thank you.

Charlie Chen: Our next question comes from Charlie Chen with China Renaissance. Please go ahead. Thanks for taking my question. I have one question regarding the interested shipment. How did the interested shipment business progress in the second quarter of this year and what is the overall operational strategy for this transaction type in the second half of this year? Thank you. Thank you, Charlie. The interested shipment business grew rapidly in the second quarter with fulfilled orders accounting for more than 6% of total other volume.

Charlie Chen: This is also a new record hack. We see that our pricing strategy optimization was one of the main drivers of this rapid order growth volume growth by integrating algorithm and additional, this is logic we created and more comprehensive and accurate pricing model. Effective control of the price premium has entitled both shippers and truckers to enjoy more balanced freight prices, which in turn has stimulated more order matching and for human compost and second, the influx of new users also has also led to an increasing trusted shipment orders, which has a lower barrier to entry for posting and a more hands-on customer service team. These features are well suited to new shippers needs making in trusted shippers their preferred choice.

M.C.O.: Going forward, we will delve deeper into the tiered trucker rating system to further improve trucker cargo matching efficiency, which in turn will encounter our overall management of high-quality transportation capacity supply.

Speaker: Operationally, we are currently focusing on our tiered trucker rating system to ensure the quality of trusted shipment transportation. This includes functions like delayed order displays which shows entrusted shipment orders to quality trucker source and then to median tier truckers after a delay, ensuring that the platform has sufficient transportation capacity. In addition, those risky truckers, such as those who have received serious complaints are excluded from viewing trusted shipment orders. As we move through the year, we expect ongoing improvement in product optimization, pricing strategy, and user experience among other aspects, all of which contribute to the rapid growth of order for human India and trusted shipment business. Thank you.

Thomas Chong: Our next question comes from Thomas Chong with Jeffries. Please go ahead. Thanks, management for taking my question.

Speaker: My question is about LTL, less than truckload business. Can management comments about the order volume growth in the second quarter? And the management industry trend from FTL to LTL continue in the second quarter and how do we position in the sector going forward? Thank you. Thank you, Thomas. The LTL business alone grew about 47% year over year in second quarter, again outpacing the food truckload. The other contribution of LTL continue to rise from the previous quarter reaching approximately 28% in a quarter.

Speaker: The relative outperformance of LTL in recent quarters was attributable to several main factors. The general industry shift toward LTL and the increased online penetration rate resulting from our platforms in host product features. First, the reason adjustments in the supply chain structure have led large manufacturers in sectors such as automotive, all the parts, and equipment to establish regional warehouses ultimately boosting shipping frequency and a gradual increase in LPL demand. Also in response to economic conditions, small and medium-sized enterprises are increasingly using large-sized LPL shipping to reduce inventory and improve turnover efficiency.

M.C.O.: Truckers growing reliance on a platform coupled with the development of trucker payment habits at the rapid expansion of direct shippers has set the stage for us to accelerate the realization of our commission model's potential.

M.C.O.: Our second quarter revenues from transaction service covered 81.1% of all fulfilled orders and increased of approximately 14%age points this year.

M.C.O.: A point a year-over-year from 67.1% order coverage in a priority period.

M.C.O.: In a second quarter, our monetization amount per order, including transaction commission and trucker membership fee, increased to R&B 23.9 from R&B 21.6 a year ago.

Speaker: We find that most of our LPL shippers also require large-ticket LPL shipping, meaning there's a significant overlap between these user groups, which minimizes our platform's user acquisition costs. Second, the major LPL players in the market are currently offline dedicated route operators, which would very low on our penetration. On the shippers side, we have already established a massive direct shipper user base, giving us an inherent advantage in user volume. As enterprise users are typically price sensitive, they tend to save logistic costs wherever possible, and our platform's intermediate free model effectively helps shippers reduce costs.

Speaker: This quarter, we launched a carpooling zone for our LPL business and housing shippers awareness of low-cost carpooling and boosting their cargo consolidation efficiency by precisely identifying their carpooling needs. This initiative improves trucker's income levels and led to an increase in online penetration rate of our platform's large-sized LPL business. Looking ahead, we will continue to focus on enhancing carpooling and matching efficiency user experience and penetration rates in the LPL business to address increased user demand. We also believe that the LPL business will continue to play an increasingly important role in our platform's future business development.

Mao Mao: Thank you. And that concludes the question and answer session. I would like to turn the conference back over to management for any additional or closing comments. Thank you once again for joining us today. If you have any further questions, please feel free to contact us at Photoshop, Alliance, Directly, or GPG Ingressive related. Our contact information for AI in both China and the US can be found in increased press release. Have a good day. The conference is now concluded.

M.C.O.: Looking ahead to the second half of the year, we plan to steadily enhance both monetization coverage and monetization rate.

M.C.O.: Moving on to our 2024 second quarter financial result, our total net revenues in second quarter or R&B 2.764.3 million are presenting a 34.1% increase year-over-year. Primarily attributable to an increase in revenues from freight matching services. That revenues from freight matching services, including service fees from freight brokerage model, membership fees from listing models, and commissions from transaction services, or R&B 2.328.7 million in a second quarter, representing an increase of 34.4% year-over-year.

M.C.O.: Primarily due to a significant increase in transaction service, and the continued growth in freight brokerage business. Revenues from freight brokerage service in a second quarter were R&B 1.164.8 million, up 22.7% year-over-year.

M.C.O.: RavNews from the transaction service in the second quarter were RMB951.9 million, up 63.4% year-over-year, primarily driven by an increase in order volume, penetration rate, and the per-order transaction service.

Operator: Thank you for attending today's presentation.

M.C.O.: RavNews from battery added services in the second quarter were RMB435.6 million, up 32% year-over-year, this increase was due to the growing demand from truckers and shippers for credit solutions and other battery added services.

M.C.O.: Second quarter cost of revenues was RMB1.300 and 12.1 million, compared with RMB975.3 million in the prior year period.

Operator: You may now disconnect.

M.C.O.: The increase was primarily due to an increase in BAT related tax surcharges and other tax causes, net off the grunts from government authorities. These tax-related causes, net off government grunts, totaled RMB1.176.3 million, representing an increase of 33.8% from RMB879.3 million in the same period of 2023, primarily due to the expansion of transaction activities evolving our freight boat bridge service.

M.C.O.: General and administrative expenses in the second quarter were RMB219.2 million, compared with RMB201.7 million in the same period of 2023. The increase was primarily due to higher share-based compensation expenses.

M.C.O.: The income from operations in the second quarter was RMB565.4 million compared with RMB333.8 million in the same period of 2023.

M.C.O.: Net income in the second quarter was RMB840.5 million an increase of 38% from RMB600 and RMB9 million in the same period of 2023.

M.C.O.: On the non-gap measures, our adjusted operating income in the second quarter was RMB699 million an increase of 55.1% from RMB450.7 million in the same period of 2023.

M.C.O.: Our adjusted net income in the second quarter was RMB970.9 million an increase of 34.3% from RMB722.7 million in the same period of 2023.

M.C.O.: The basic and diluted net income per ADS were on the 0.79 in the second quarter, compared with on the 0.57 in the same period of 2023, Nong Gap adjusted basic net income per ADS was on the 0.92 in the second quarter, compared with on the 0.68 in the same period of 2023, Nong Gap adjusted diluted net income per ADS was on the 0.91 in the second quarter, compared with on the 0.68 in the same period of 2023, F of June 30, 2024, the company had cash and cash equivalent, restricted cash, shortened investments, long-term time deposits and wealth management products, with materials, materials over one year of R&B 26.8 billion in total, compared with R&B 27.6 billion as of December 31, 2023.

M.C.O.: That concludes our prepared remarks.

M.C.O.: We would now like to open a call to Q&A.

Operator: Operator, please go ahead.

Operator: We will now begin the question and answer session.

Operator: To ask a question, you may press star then one on your telephone keypad.

Operator: If you are using a speaker phone, please pick up your handset before pressing the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then two.

Operator: For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.

Operator: At this time, we will pause momentarily to assemble our roster.

Ronald Cume: Our first question comes from Ronald Cume with Goldman Sachs.

Ronald Cume: Please go ahead.

Operator: But if you are using a speaker phone, you will still have some changes.

Operator: If you want to know more about the development factors, and if you want to know more about the development factors, please let us know in the comments.

Eddy Wong: Thank you, management. We see that the fulfilled order grew around 22% in the second quarter, still much faster than overall freight market, but growth rate has slowed versus the first quarter.

Eddy Wong: So what were the factors behind drivers and based on the trends so far, can you share how do you view all the volume growth into the third quarter and for the full year?

Eddy Wong: Thank you.

M.C.O.: Thank you, Ronald.

M.C.O.: Our robust order volume growth in Q2 was primarily driven by three main factors, our expanding shipper user base, product and operational strategy and optimization that drove considerable improvements in user activities and incremental volume from new business.

M.C.O.: This was partially offset a little bit by the overall amount of weakness in the role of freight since Q2 and extreme weather conditions in May and June, particularly the prolonged heavy rains in eastern and southern part of China as well as flooding in the south and drought in the north.

M.C.O.: From a user-based perspective, we continue to efficiently acquire users in the second quarter. Our average number of monthly active shippers increased by 32.8% year-over-year to 2.6-5 million, extending the first quarter's accelerated growth trajectory.

M.C.O.: Our operations team concentrated on all the health support and new shippers which improved the user engagement from registration to their first shipment, posting and for refuelment.

M.C.O.: For our product and operational strategies, this quarter we focused on increasing the proportion of price orders from shippers and optimizing premium cargo bidding for melting hot for truckers. Encouraging shippers to post price orders has increased truckers within us to accept orders and enhancing matching efficiency.

M.C.O.: This was particularly true for professional shippers whose human ways improved significantly.

M.C.O.: Notably the proportion of price orders posting reached 60% in the quarter.

M.C.O.: We also continue to refining our premium cargo bidding feature to strengthen truckers' perception of high-value orders. This product is designed to reward truckers with access to better orders after completing an average or below average order which motivates them to stay active and increase their human frequency on the platform.

M.C.O.: The new business, the bulk, less in truck load and short-haul segments continue to grow rapidly and contribute to our business volume.

M.C.O.: Given the industry trend toward LTL and our unique user advantage in this segment, we expect substantial future goals in the LTL business.

M.C.O.: Looking ahead to the coming third quarter, despite the ongoing impact of extreme weather and the macro environment, we remain confident that increasing online penetration driven by user goals and product enhancement will enable us to achieve other volume growth of over 20% for the full year.

M.C.O.: Thank you.

M.C.O.: Thank you, Sam.

Eddy Wong: The next question comes from Eddie Wong with Morgan Stanley.

Eddy Wong: Please go ahead.

Eddy Wong: [inaudible] Hello, Mr. Zhang.

Eddy Wong: Thank you, Eddy.

M.C.O.: The second quarter's strong user growth momentum was mainly driven by our effective user acquisition strategies. Our ongoing investment in online channels, branding campaigns, and offline truck stickers advertising brought a steady stream of high quality new users to our platform.

M.C.O.: Additionally seasonal factors played in role as some shipments delayed during the Chinese New Year holiday were shipped during the busy shipping season Q2, resulting in higher shipping demand.

M.C.O.: From a user's structure perspective, the proportion of direct shipping continues to rise.

M.C.O.: In Q2, monthly active direct shipping increased by more than 38 percent year of the year, and direct shipping can contribute approximately 48% of the total for few others.

M.C.O.: Similar to previous closings, the majority of the new shipping users are small to medium size different owners.

M.C.O.: We have a higher likelihood of placing and fulfilling others.

M.C.O.: They also prioritize timely response and quality transportation services further boosting for human race.

M.C.O.: On the other hand direct shipping naturally tend to have a lower order frequency than professional shippers.

M.C.O.: To increase new direct shippers order frequency, we continue to enhance the trucker credit rating system to improve overall service quality and standards. Leveraging our advantages in pricing, matching efficiency, and trucker management capabilities, we aim to provide better service than those offline brokers that these users previously relied on.

M.C.O.: Also, we are strengthening our user coverage with a more comprehensive area of services, including the less-and-truck load, short haul, and PMF systems to cater a wider range of shipping needs for small to medium-sized shippers and increase usage frequency.

M.C.O.: Looking ahead, as we extend as our brand, exposure and awareness continue to rise, we expect a growing number of small to medium-sized business owners to join our platform driving sustained auto-borrowing growth in the rest of the years.

Julie Lee: Our next question comes from Julie Lee with CICC.

Julie Lee: Please go ahead.

Operator: You may be muted.

Julie Lee: Julie Lee with CICC.

Julie Lee: Please go ahead.

M.C.O.: Thank you for your question.

M.C.O.: I have a question for you.

M.C.O.: Let's take a look at Hui Yuan's progress.

M.C.O.: What can you see in your member users in the second corner?

M.C.O.: Thank you, Jiulu.

M.C.O.: We are pleased with our year-to-date Shipper Member Goal Freight. The number of Shipper Members reached 860,000 compared with 780,000 a year ago.

M.C.O.: Paying user growth was mostly driven by an increase in the number of new users and enhanced membership operations that have boosted conversions. In Q2, the increase in new paying Shipper Members came primarily from direct Shippers. To support this trend, we strategically lowered the payment barrier for new users with occasional free trial membership offers as well as the R&B 288 mini membership package.

M.C.O.: Meanwhile, we also increased benefits for existing Shipper Members, benefits for our member users include faster truck sourcing, access to top rated truckers and free freight insurance, all of which help convert non-member users to members and improve existing members' repurchase rate. Currently, the repurchase rate for Shipper Members remains above 80%, demonstrating existing members' high reliance and stickiness on our platform.

M.C.O.: As we continue to improve our freight listening products and refine our operational strategies, we're confident that we will consistently attract more paying members and further increase user retention.

M.C.O.: Thank you.

Brian Gong: Our next question comes from Brian Gong with City.

Brian Gong: Please go ahead.

M.C.O.: Thank you, Brian.

M.C.O.: Our average monthly active member of truckers responding to others remained about 3 million in the second quarter, with quarterly growth of more than 8%.

M.C.O.: Ensuring and adequate carrier capacity supply.

M.C.O.: The number of days that truckers search for freight on a platform and the other fulfillment frequency per active trucker also knows in this segment.

M.C.O.: Within our existing, tiered trucker rating system, we continue to deepen truckers' reliance on our platform by refining product features across various scenarios. As we mentioned earlier, one of our key projects in the second quarter was the roll-out of our premium cargo bidding function. Previously high-quality, freight others on our platform were often fulfilled before many truckers had the chance to bid into a perception that high-quality freight sources were in short supply.

M.C.O.: This negatively affected both our matching efficiency and for human base.

M.C.O.: With the launch of the premium cargo bidding, our platform now tax and hold high-quality freight others to give more truckers enough time to review and bid on those orders. By extending these others exposure time, we build and reinforce the perception that our platform has plenty of good freight others.

M.C.O.: This also creates a fair other bidding environment, which increases trucker users' thickness and improves overall for human base.

M.C.O.: In terms of optimizing service scenarios, we have capitalized on the angle going trend toward LTR shipping and created a dedicated carpool LTR carpool zone to improve trucker efficiency in consolidating the loads. In addition to how truckers report empty spaces, we launched our carpool assistant, which enables more accurate identification of carpooling needs and increase its success rate.

M.C.O.: We're confident with effective and refined operational strategies in place, we can ensure an overall positive experience for trucker users on the platform and help them increase their income.

M.C.O.: Thank you.

Charlie Chen: Our next question comes from Charlie Chen with China Renaissance.

Charlie Chen: Please go ahead.

M.C.O.: Thanks for taking my question.

M.C.O.: I have one question regarding the interested shipment.

M.C.O.: How did the interested shipment business progress in the second quarter of this year and what is the overall operational strategy for this transaction type in the second half of this year?

M.C.O.: Thank you.

M.C.O.: Thank you, Charlie.

M.C.O.: The interested shipment business grew rapidly in the second quarter with fulfilled orders accounting for more than 6% of total other volume.

M.C.O.: This is also a new record hack.

M.C.O.: We see that our pricing strategy optimization was one of the main drivers of this rapid order growth volume growth by integrating algorithm and additional, this is logic we created and more comprehensive and accurate pricing model.

M.C.O.: Effective control of the price premium has entitled both shippers and truckers to enjoy more balanced freight prices, which in turn has stimulated more order matching and for human compost and second, the influx of new users also has also led to an increasing trusted shipment orders, which has a lower barrier to entry for posting and a more hands-on customer service team.

M.C.O.: These features are well suited to new shippers needs making in trusted shippers their preferred choice.

M.C.O.: Operationally, we are currently focusing on our tiered trucker rating system to ensure the quality of trusted shipment transportation. This includes functions like delayed order displays which shows entrusted shipment orders to quality trucker source and then to median tier truckers after a delay, ensuring that the platform has sufficient transportation capacity.

M.C.O.: In addition, those risky truckers, such as those who have received serious complaints are excluded from viewing trusted shipment orders.

M.C.O.: As we move through the year, we expect ongoing improvement in product optimization, pricing strategy, and user experience among other aspects, all of which contribute to the rapid growth of order for human India and trusted shipment business.

M.C.O.: Thank you.

Thomas Chong: Our next question comes from Thomas Chong with Jeffries.

Thomas Chong: Please go ahead.

M.C.O.: Thanks, management for taking my question.

M.C.O.: My question is about LTL, less than truckload business.

M.C.O.: Can management comments about the order volume growth in the second quarter?

M.C.O.: And the management industry trend from FTL to LTL continue in the second quarter and how do we position in the sector going forward?

M.C.O.: Thank you.

M.C.O.: Thank you, Thomas.

M.C.O.: The LTL business alone grew about 47% year over year in second quarter, again outpacing the food truckload.

M.C.O.: The other contribution of LTL continue to rise from the previous quarter reaching approximately 28% in a quarter. The relative outperformance of LTL in recent quarters was attributable to several main factors.

M.C.O.: The general industry shift toward LTL and the increased online penetration rate resulting from our platforms in host product features. First, the reason adjustments in the supply chain structure have led large manufacturers in sectors such as automotive, all the parts, and equipment to establish regional warehouses ultimately boosting shipping frequency and a gradual increase in LPL demand.

M.C.O.: Also in response to economic conditions, small and medium-sized enterprises are increasingly using large-sized LPL shipping to reduce inventory and improve turnover efficiency.

M.C.O.: We find that most of our LPL shippers also require large-ticket LPL shipping, meaning there's a significant overlap between these user groups, which minimizes our platform's user acquisition costs.

M.C.O.: Second, the major LPL players in the market are currently offline dedicated route operators, which would very low on our penetration.

M.C.O.: On the shippers side, we have already established a massive direct shipper user base, giving us an inherent advantage in user volume. As enterprise users are typically price sensitive, they tend to save logistic costs wherever possible, and our platform's intermediate free model effectively helps shippers reduce costs.

M.C.O.: This quarter, we launched a carpooling zone for our LPL business and housing shippers awareness of low-cost carpooling and boosting their cargo consolidation efficiency by precisely identifying their carpooling needs.

M.C.O.: This initiative improves trucker's income levels and led to an increase in online penetration rate of our platform's large-sized LPL business.

M.C.O.: Looking ahead, we will continue to focus on enhancing carpooling and matching efficiency user experience and penetration rates in the LPL business to address increased user demand.

M.C.O.: We also believe that the LPL business will continue to play an increasingly important role in our platform's future business development.

M.C.O.: Thank you.

M.C.O.: And that concludes the question and answer session.

M.C.O.: I would like to turn the conference back over to management for any additional or closing comments.

M.C.O.: Thank you once again for joining us today.

M.C.O.: If you have any further questions, please feel free to contact us at Photoshop, Alliance, Directly, or GPG Ingressive related.

M.C.O.: Our contact information for AI in both China and the US can be found in increased press release.

M.C.O.: Have a good day.

Operator: The conference is now concluded.

Operator: Thank you for attending today's presentation.

Operator: You may now disconnect.

Q2 2024 Full Truck Alliance Co Ltd Earnings Call

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