Q2 2025 Full Truck Alliance Co Ltd Earnings Call

Speaker #2: Ladies and gentlemen, good day and welcome to Full Truck Alliance's second quarter 2025 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mao Mao, Head of Investor Relations.

Operator 2: Ladies and gentlemen, good day and welcome to Full Truck Alliance's Q2 2025 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mao Mao, Head of Investor Relations. Please go ahead.

Speaker #2: Please go ahead.

Speaker #3: Thank you, operator. 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 Securities Litigation Reform Act.

Mao Mao: Thank you, operator. 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 Securities Litigation Reform Act. Such statements are not guarantees 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 these festivities and discussion. A general discussion of the risk factors that could affect FTA's business and financial results is included in certain filings of the company with the SEC. The company does not undertake any obligation to update this forward-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purpose only.

Mao Mao: Thank you, Alfredo. 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 Securities Litigation Reform Act. Such statements are not guarantees 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 these discussions. A general discussion of the risk factors that could affect FTA's business and financial results is included in certain filings of the company with the SEC. The company does not undertake any obligation to update this forward-looking information except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only.

Speaker #3: Such statements are not guaranteed for 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 #3: A general discussion of the risk factors that could affect FTA's business and financial results is included in certain filings of the company with the SEC.

Speaker #3: The company does not undertake any obligation to update this forward-looking information except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only.

Speaker #3: 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. Joining us today on the call from FTA's senior management are Mr. Hui Zhang, our founder, chairman, and CEO, and Mr. Simon Tsai, our Chief Financing and Investment Officer.

Mao Mao: 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. Joining us today on the call from FTA's senior management are Mr. Hui Zhang, our Founder, Chairman, and CEO, and Mr. Simon Cai, our Chief Financing and Investment Officer. Management will begin with prepared remarks and the call will conclude with a Q&A session. As a reminder, this conference is being recorded. In addition, a webcast replay of this call will be available on FTA's investor relations website at ir.fulltruckalliance.com. I will now turn the call over to our Founder, Chairman, and CEO, Mr. Zhang. Please go ahead, sir. Hello everyone, thank you for joining us today for our Q2 2025 Earnings Conference Call. In Q2, FTA demonstrated remarkable resilience in navigating both opportunities and challenges in the external environment.

Mao Mao: 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. Joining us today on the call from FTA's senior management are Mr. Hui Zhang, our Founder, Chairman, and CEO, and Mr. Simon Cai, our Chief Financing and Investment Officer. Management will begin with prepared remarks, and the call will conclude with a Q&A session. As a reminder, this conference is being recorded. In addition, a webcast replay of this call will be available on FTA's investor relations website at ir.fulltruckalliance.com. I will now turn the call over to our Founder, Chairman, and CEO, Mr. Zhang. Please go ahead.

Speaker #3: Management will begin with prepared remarks, and the call will conclude with a Q&A session. As a reminder, this conference is being recorded. In addition, a webcast replay of this call will be available on FTA's investor relations website at ir.fulltruckalliance.com.

Speaker #3: I will now turn the call over to our founder, chairman, and CEO, Mr. Zhang. Please go ahead, sir.

Speaker #4: 大家好, 欢迎各位参加晚报2025年第二季度业绩电话会。新年二季度面对外部环境的机遇和挑战, 满蒙业务展现出强劲的发展韧性。我们坚持以数字化、智能化推动公务物流行业降本兼效机制。通过提升履约率和优化用户体验, 满蒙平台单量规模再创新高, 本季度履约订单量达到了六千零八十万单。同比增长百分之二十三点八。反映出数字物流对传统线下物流交易模式的持续升级。

Hui Zhang: FTA业务展现出强劲的发展韧性。我们坚持以数字化、智能化推动公共物流行业降本增效提质, 通过提升fulfillment rate和优化用户体验, FTA平台单量规模再创新高。本季度fulfillment order量达到了60.8 million单, 同比增长23.8%, 反映出数字物流对传统线下物流交易模式的持续升级。

Speaker #3: Hello, everyone, and thank you for joining us today for our second quarter 2025 earnings conference call. In the second quarter, FTA demonstrated remarkable resilience in navigating both obstacles and challenges in the external environment.

Mao Mao: Hello everyone, and thank you for joining us today for our second quarter 2025 earnings conference call. In the second quarter, FTA demonstrated remarkable resilience in navigating both opportunities and challenges in the external environment. By leveraging digitalization and intelligent technologies, we continue to help shippers reduce logistics costs and enhance operational efficiency across the road freight industry. Through improvements in fulfillment efficiency and optimization of the usage burn, our platform reached a new milestone with fulfilled orders totaling 60.8 million, a 23.8% year-over-year increase, underscoring the ongoing shift from offline to online logistics operations.

Speaker #3: By leveraging digitalization technologies, we continue to help shippers reduce logistics costs and enhance operational efficiency across the road freight industry. Through improvements in fulfillment efficiency and optimization of the user experience, our platform reached a new milestone, with fulfilled orders totaling 50.8 million, representing an intelligent percentage increase year-over-year, underscoring the ongoing shift from offline to online logistics operations.

Mao Mao: By leveraging digitalization and intelligent technologies, we continue to help shippers reduce logistics costs and enhance operational efficiency across the road freight industry. Through improvements in fulfillment efficiency and optimization of the user experience, our platform reached a new milestone, with fulfilled orders totaling 60.8 million, a 23.8% year-over-year increase, underscoring the ongoing shift from offline to online logistics operations.

Speaker #4: 本季度我们的各项运营指标再次实现了突破, 分别体现在用户增长、运力和匹配, 以及技术赋能上。首先, 面对三千万中小货主的潜在用户, 我们坚持对品牌和线上拉新, 长期投入。同时, 通过分行业分品类的经济化运营, 我们进一步优化了老客户在发货找车、履约全链路的使用体验。最终使二季度发货货主平均月活突破了三百一十六万人, 同比增长百分之十九点三。同时, 货主会员规模也突破了一百二十万人, 用户粘性持续增强。使客货主履约单量占比提升到了百分之五十三, 标志着平台用户结构持续优化。

Hui Zhang: 本季度我们的各项运营指标开始实现了突破，分别体现在用户增长、运力和匹配以及技术赋能上。首先，面对三千万中小货主的潜在用户，我们坚持对品牌和线上拉新长期投入。同时，通过分行业分品类的精细化运营，我们进一步优化了老客户在发货、找车、履约全链路的使用体验。最终使二季度发货货主平均月活突破了316万人，同比增长19.3%。同时，货主会员规模也突破了120万人，用户粘性持续增强，即刻货主履约单量占比提升到了53%，标志着平台用户结构持续优化。

Hui Zhang: to 53%, marking the continuous optimization of the platform's user structure.

Speaker #3: Our key operating metrics also reached record highs in this quarter, reflecting meaningful progress across shipper growth, trigger capacity, and matching efficiency, as well as technology enablement.

Mao Mao: Our key operating metrics also reached record highs in this quarter, reflecting meaningful progress across shipper growth, trucker capacity, and matching efficiency, as well as technology enablement. On the user front, we continue to invest in long-term brand building and online user acquisition among the 30 million potential SME shippers nationwide. Simultaneously, our refined operations across cargo categories optimize the shipping experience for existing users throughout the order placement, freight matching, and fulfillment process. As a result, average shipper MAUs in Q2 exceeded 2.16 million, a 19.2% year-over-year increase, while shipper members surpassed 1.2 million, demonstrating enhanced user engagement and stickiness. Notably, the order contribution from direct shippers rose to 53%, reflecting continued optimization of our user base.

Mao Mao: Our key operating metrics also reached record highs in this quarter, reflecting meaningful progress across shipper growth, truckload capacity, and matching efficiency, as well as digital freight platform technology enablement. On the user front, we continue to invest in long-term brand building and online user acquisition among the 30 million potential SME shippers nationwide. Simultaneously, our refined operations across cargo categories optimized the shipping experience for existing users throughout the order placement, freight matching, and fulfillment process. As a result, average monthly active shippers (MAUs) in the second quarter exceeded 3.16 million, a 19.3% year-over-year increase, while shipper membership surpassed 1.2 million, demonstrating enhanced user engagement and stickiness. Notably, the order contribution from direct shippers rose to 53%, reflecting continued optimization of our user base.

Speaker #3: On the user front, we continue to invest in long-term brand building and online user acquisition among the thirty million potential SME shippers nationwide. Simultaneously, our refined operations across cargo categories optimized the shipping clearance for existing users throughout all the placements, freight matching, and fulfillment processes.

Speaker #3: As a result, average shipper MAUs in the second quarter exceeded three point one six million, a nineteen point three percent of year increase, while shipper members surpassed one point two million, demonstrating enhanced user engagement and stickiness.

Speaker #3: Notably, the order contribution from direct shippers rose to 53%, reflecting continued optimization of our user base.

Speaker #4: 在运力生态和匹配效率方面, 本季度我们继续推进四季行为分和四季会员机制, 牵引四季提升服务质量, 导向服务好、多接单、更赚钱。同时, 集团加大对四季的各项保障, 使四季的获得感进一步提升, 二季度滚动十二个月的履约时间年活四百三十四万人, 同比增长百分之九。季度末, 四季会员接近一百万人, 四季粘性不断增强。在此情况下, 集团履约率再创新高, 达到了百分之四十点七。同比大幅提升大约七个百分点。

Hui Zhang: 在运力生态和匹配效率方面，本季度我们继续推进司机行为分和司机会员机制，牵引司机提升服务质量，导向服务好、多接单、更赚钱。同时，集团加大对司机的各项保障，使司机的获得感进一步提升。二季度滚动十二月的履约司机年活434万人，同比增长9%。季度末，司机会员接近100万人，司机粘性不断增强。在此情况下，集团履约率再创新高，达到了40.7%，同比大幅提升大约7个百分点。

Hui Zhang: new high of 40.7%, a significant year-over-year increase of approximately 7 percentage points.

Speaker #3: To further boost our tracker capacity and enhance matching efficiency, we advanced our tracker quality rating and membership program, encouraging service quality improvements under the guiding principle of excellent service, more orders, and higher income for trackers.

Mao Mao: To further boost our trucker capacity and enhance matching efficiency, we advanced our trucker quality rating and membership program, encouraging service quality improvement under the guiding principle of excellent service, more orders, higher income for truckers. We also strengthened protections and support for truckers, enhancing their sense of value and recognition. By the end of the quarter, the number of active truckers fulfilling orders over the past 12 months rose to 4.34 million, up approximately 9% year-over-year, while trucker membership approached 1 million, reflecting rising engagement and loyalty. Against this backdrop, our fulfillment rate reached a new high of 40.7%, an improvement of approximately 7 percentage points year-over-year.

Mao Mao: To further boost our trucker capacity and enhance matching efficiency, we advanced our trucker quality rating and trucker membership program, encouraging service quality improvements under the guiding principle of excellent service, more orders, higher income for truckers. We also strengthened protections and support for truckers, enhancing their sense of value and recognition. By the end of the quarter, the number of active truckers fulfilling orders over the past 12 months rose to 4.34 million, up approximately 9% year-over-year, while trucker membership approached 1 million, reflecting rising engagement and loyalty. Against this backdrop, our fulfillment rate reached a new high of 40.7%, an improvement of approximately 7 percentage points year-over-year.

Speaker #3: We also strengthened protections and support for trackers, enhancing their sense of value and recognition. By the end of the quarter, the number of active trackers fulfilling orders over the past twelve months rose to 4.34 million, up approximately 9% year over year, while tracker membership approached 1 million, reflecting rising engagement and loyalty.

Speaker #3: Against this backdrop, our fulfillment rate reached a new high of 40.7%, an improvement of approximately seven percentage points year-over-year.

Speaker #4: ?????????????????????????????????????? AI ???????????????????????????????????????????????????????????????????????? 32.4 ??????????? 17.2%????????????? 13.3 ??????????? 39.4%????????????????????? 12.3 ??????????? 76%?????????? 13.5 ??????????? 39.3%?

Hui Zhang: 在技术赋能方面，我们聚焦公路物流的核心痛点，基于海量独特的物流场景数据，推进AI赋能，从交易到履约，从销售到服务运营等多个关键业务环节，提升用户体验及运营效率。基于高质量的业务运营，本季度财务表现也同样出色。集团总营收达到了32.4亿元人民币，同比增长了17.2%，其中交易服务收入达到了13.3亿人民币，同比增长39.4%。非美国通用会计准则下，调整后营业利润达到了12.3亿元人民币，同比增长了76%。调整后净利润达到了人民币13.5亿元，同比增长39.3%。

Hui Zhang: increase of 76%. Adjusted net income reached RMB 1.35 billion, a year-over-year increase of 39.3%.

Speaker #3: On the technology front, we remain focused on addressing the core pain points in the freight matching process. Leveraging our advanced and proprietary transaction data, we advanced AI-driven enablement across multiple key processes, from matching to fulfillment, thoroughly and from sales and marketing to customer service and operations internally, enhancing both the overall user experience and our operational efficiency.

Mao Mao: On the technology front, we remain focused on addressing the core pain points in the freight matching process. Leveraging our vast and proprietary transaction data, we advanced AI-driven enablement across multiple key processes. From matching to fulfillment externally and from sales and marketing to customer service and operations internally, enhancing both the overall user experience and our operational efficiency. Driven by our disciplined high quality operations, we delivered another quarter of exceptional financial results. Total net revenue reached RMB 3.24 billion, an increase of 17.2% year-over-year, with transaction service revenue surging 39.4% year-over-year to RMB 1.33 billion. Non-GAAP adjusted operating income reached RMB 1.23 billion, up 76% year-over-year, while Non-GAAP adjusted net income rose 39.2% year-over-year to RMB 1.35 billion.

Mao Mao: On the technology front, we remain focused on addressing the core pain points in the freight matching process. Leveraging our vast and proprietary transaction data, we advanced AI-driven enablement across multiple key processes, from matching to fulfillment externally and from sales and marketing to customer service and operations internally, enhancing both the overall user experience and our operational efficiency. Driven by our disciplined high-quality operations, we delivered another quarter of exceptional financial results. Total net revenue reached RMB 3.24 billion, an increase of 17.2% year-over-year, with transaction service revenue surging 39.4% year-over-year to RMB 1.33 billion. Non-GAAP adjusted operating income reached RMB 1.23 billion, up 76% year-over-year, while non-GAAP adjusted net income rose 39.3% year-over-year to RMB 1.35 billion.

Speaker #3: Driven by our discipline, high-quality operations, we delivered another quarter of exceptional financial results. Total net revenue reached RMB three point two four billion, an increase of seventeen point two percent of year, with transaction service revenue surging thirty-nine point four percent of year to RMB one point three three billion.

Speaker #3: Non-GAAP adjusted operating income reached RMB one point two three billion, up seventy-six percent of year, while non-GAAP adjusted net income rose thirty-nine point three percent of year to RMB one point three five billion.

Speaker #4: Hello, ???????????????????????????????????????????????????????????????????????????????? Simon ?????????????

Hui Zhang: 展望下半年，满帮作为物流新质生产力的代表，将坚持以用户为中心，持续优化货主和司机生态的良性发展，开拓新市场，推进行业数字化变革，赋能企业，根据物流竞争力。下面我把时间交给Simon，为大家介绍二季度业绩报告。

Hui Zhang: I will hand over the time to Simon.

Speaker #3: Looking ahead at the pioneer of new quality productive forces in the logistics sector, FTA will remain relentlessly user-centric. We will continue to strengthen the healthy development of both our shipper and tracker ecosystems, expand into new markets, and drive the industry's digital and intelligent transformation.

Mao Mao: Looking ahead, as a pioneer of new quality productive forces in the logistics sector, FTA will remain relentlessly user-centric. We will continue to strengthen the healthy development of both our shipper and trucker ecosystem, expand into new markets, and drive the industry's digital and intelligent transformation. Through these efforts, we aim to empower enterprises with greater logistics competitiveness. Thank you all once again. Now I will pass the call over to Simon, who will provide an update on our Q2 business progress and financial results.

Mao Mao: Year of new quality productive orders in the logistics sector, FTA will remain relentlessly user-centric. We will continue to strengthen the healthy development of both our shipper and trucker ecosystems, expand into new markets, and drive the industry's digital and intelligent transformation. Through these efforts, we aim to empower enterprises with greater logistics competitiveness. Thank you all once again. Now I will hand the call over to Simon Cai, who will provide an update on our second quarter's business progress and the financial results.

Speaker #3: Through these efforts, we aim to empower enterprises with greater logistics competitiveness. Thank you all once again. Now, I'll pass the call over to Simon, who will provide an update on our second quarter's business progress and the financial results.

Speaker #5: Thank you, Mr. Zhang.

Simon Cai: Thank you, Mr. Zhang. Thank you all for joining today's Earnings Conference Call. I will now provide an overview of our operational highlights and financial results for Q2 2025. Let's start with our operations. We continue to deliver steady and robust growth, once again setting new records across our key operating metrics this quarter. Fulfilled orders rose to 60.8 million, up 23.8% year-over-year, consistently outpacing broader freight industry trends. This performance was driven by the expansion of our shipper base and ongoing improvements in fulfillment efficiency. Our fulfillment rate reached a historical high of 40.7% in Q2, an increase of nearly 7 percentage points from the prior year, marking yet another record for our platform.

Simon Cai: Thank you, Mr. Zhang. Thank you all for joining today's earnings conference call. I will now provide an overview of our operational highlights and financial results for the second quarter of 2025. Let's start with our operations. We continue to deliver steady and robust growth, once again setting new records across our key operating metrics this quarter. Fulfilled orders rose to 60.8 million, up 23.8% year-over-year, consistently outpacing broader freight industry trends. This performance was driven by the expansion of our shipper base and ongoing improvements in fulfillment efficiency. Our fulfillment rate reached a historical high of 14.7% in the second quarter, an increase of nearly 7 percentage points from the prior year, marking yet another record for our platform. Notably, the average fulfillment rate among low and medium frequency direct shippers approached 60%, up almost 10 percentage points year-over-year.

Speaker #4: Thank you all for joining today's earnings conference call. I will now provide an overview of our operational highlights and financial results for the second quarter of 2025.

Speaker #4: Let's start with our operations. We continue to deliver steady and robust growth, once again setting new records across our key operating metrics this quarter.

Speaker #4: Fulfilled orders rose to sixty point eight million, up twenty-three point eight percent year over year, consistently outpacing broader freight industry trends. This performance was driven by the expansion of our user base, of our shipper base, and ongoing improvements in fulfillment efficiency.

Speaker #4: Our fulfillment rate reached a historical high of 40.7% in the second quarter, an increase of nearly 7 percentage points from the prior year.

Speaker #4: Marking yet another record for our platform, notably, the average fulfillment rate among low and medium frequency direct shippers approached 60 percent, up almost 10 percentage points year over year.

Simon Cai: Notably, the average fulfillment rate among low and medium-frequency direct shippers approached 60%, up almost 10 percentage points year over year. Orders from these user groups now account for roughly 53% of total fulfilled orders, an increase from last quarter, reflecting ongoing optimization of our shipper user structure and our ecosystem's growing strength. These breakthrough results underscore the effectiveness of our differentiated operational strategy and lay a strong foundation for further service quality enhancement. Moving to our user base, our average shipper MAUs reached 3.16 million in Q2, up 19.3% year over year. Total shipper members surpassed 1.2 million by quarter end, another all-time high driven primarily by growth in low and medium-frequency direct shippers.

Speaker #4: Orders from these user groups now account for roughly 53% of total fulfilled orders, an increase from last quarter. This reflects ongoing optimization of our shipper user structure and our ecosystem's growing strength.

Simon Cai: Orders from these user groups now account for roughly 53% of total fulfilled orders, an increase from last quarter, reflecting ongoing optimization of our shipper user structure and our ecosystem's growing strength. These breakthrough results underscore the effectiveness of our differentiated operational strategy and lay a strong foundation for further service quality enhancements. Moving to our user base, our average shipper MAUs reached 3.16 million in the second quarter, up 19.3% year-over-year. Total shipper members surpassed 1.2 million by quarter end, another all-time high driven primarily by growth in low and medium frequency direct shippers. Since its launch early last year, our 288 tiered membership program has been well received, with average monthly active members exceeding 300,000 in the second quarter. Our 12-month rolling retention rate for shipper members remained above 80%, demonstrating our shippers' community's strong loyalty and engagement.

Speaker #4: These breakthrough results underscore the effectiveness of our differentiated operational strategy and and lay a strong foundation for further service quality enhancements. Moving to our user base, our average shipper MAUs reached three point three point one six million in the second quarter, up nineteen point three percent year over year.

Speaker #4: Total shipper members surpassed 1.2 million by quarter end, another all-time high driven primarily by growth in low and medium frequency direct shippers.

Speaker #4: Since its launch early last year, our 288 membership program has been well-received, with average monthly active members exceeding 300,000 in the second quarter.

Simon Cai: Since its launch early last year, our 288 membership program has been well received, with average monthly active members exceeding 300,000 in Q2. Our 12-month rolling retention rate for shipper members remained above 80%, demonstrating our shippers' community's strong loyalty and engagement. Turning to the trucker side, the number of active truckers fulfilling orders through our platform over the past 12 months increased to 4.34 million, hitting a record high. The next month's retention rate for truckers who responded to orders consistently exceeded 85%. During the quarter, we further strengthened our trucker infrastructure, significantly enhancing order tracking completeness, paving the way for high operational efficiency and a better fulfillment experience for truckers. By offering high-quality freight orders along with improved guarantees and benefits, we grew our mini-member trucker base to over 1 million.

Speaker #4: Our twelve-month rolling retention rate for shipper members remained above eighty eighty percent, demonstrating our shippers' community's strong loyalty and engagement. Turning to the tracker side, the number of active trackers fulfilling orders through our platform over the past twelve months increased to four point three four million, hitting a record high.

Simon Cai: Turning to the trucker side, the number of active truckers fulfilling orders through our platform over the past 12 months increased to 4.34 million, hitting a record high. Meanwhile, the next month's retention rate for truckers who responded to orders consistently exceeded 85%. During the quarter, we further strengthened our trucker infrastructure, significantly enhancing order tracking completeness, paving the way for high operational efficiency and a better fulfillment experience for truckers. By offering high-quality freight orders, along with improved guarantees and benefits, we grew our mini member trucker base to over 1 million. These members' order acceptance frequency increased substantially, driving parallel growth in business scale and trucker engagement, while further enhancing trucker stickiness. Shifting now to monetization, supported by the dual engine of order growth and improved monetization efficiency, revenues from our transaction service achieved another quarter of high-quality growth, rising 39.4% year-over-year to RMB 1.33 billion.

Speaker #4: Meanwhile, the next month's retention rate for trackers who responded to orders consistently exceeded 85 percent. During the quarter, we further strengthened our tracker infrastructure, significantly enhancing order tracking completeness, paving the way for high operational efficiency and a better fulfillment experience for trackers.

Speaker #4: By offering high-quality freight orders along with improved guarantees and benefits, we grew our mini-member tracker base to over 1 million. These members' order acceptance frequency increased substantially, driving parallel growth in business scale and tracker engagement, while further enhancing tracker stickiness.

Simon Cai: These members' order acceptance frequency increased substantially, driving parallel growth in business scale and trucker engagement while further enhancing trucker stickiness. Shifting now to monetization. Supported by the dual engine of order growth and improved monetization efficiency, revenues from our transaction service achieved another quarter of high-quality growth, rising 39.4% year over year to RMB 1.33 billion. Monetized order penetration reached 86.7%, up more than 5 percentage points from the prior year, while average monetization per order increased to RMB 25.2 from RMB 23.9. Highly targeted operations within our service ecosystems are consistently strengthening our monetization capabilities. Leveraging a more sophisticated credit rating system and tiered incentive programs for truckers, we effectively addressed the diversified needs of both high-volume and long-tail shippers. These efforts safeguarded truck-trucker income and retention, while also enhancing both order volumes and monetization efficiency.

Speaker #4: Shifting now to monetization, supported by the dual engine of order growth and improved monetization efficiency, revenues from our transaction service achieved another quarter of high-quality growth, rising thirty-nine point four percent year over year to RMB one point three three billion.

Speaker #4: Monetized order penetration reached eighty-six point seven percent, up more than five percentage points from the prior year, while average monetization per order increased to RMB twenty-five point two from twenty-three point nine.

Simon Cai: Monetized order penetration reached 86.7%, up more than 5 percentage points from the prior year, while average monetization per order increased to RMB 25.2 from 23.9. Highly targeted operations within our service ecosystems are consistently strengthening our monetization capability. Leveraging a more sophisticated credit rating system and tiered incentive programs for truckers, we effectively addressed the diversified needs of both high-volume and long-tail shippers. These efforts safeguarded trucker income and retention while also enhancing both order volumes and monetization efficiency. Looking ahead, we will continue to leverage our intelligent freight matching system and flexible subsidy strategies to further tap into high-value users' monetization potentials. In parallel, our refined tiered approach to trucker operations will help accelerate the build-up of strategic core transportation capacity, fostering a virtuous cycle of healthy user growth and sustained improvements in monetization efficiency.

Speaker #4: Highly targeted operations within our service ecosystems are consistently strengthening our monetization capabilities. Leveraging the more sophisticated credit rating system and tiered incentive programs for trackers, we effectively addressed the diversified needs of both high-volume and long-tail shippers.

Speaker #4: These efforts safeguarded tracker income and retention, while also enhancing both order volumes and monetization efficiency. Looking ahead, we will continue to leverage our intelligent freight matching system and flexible subsidy strategies to further tap into high-value users' monetization potentials.

Simon Cai: Looking ahead, we will continue to leverage our intelligent freight matching system and flexible subsidy strategies to further tap into high-value users' monetization potentials. In parallel, our refined tiered approach to trucker operations will help accelerate the buildup of strategic core substation capacity, fostering a virtuous cycle of healthy user growth and sustained improvement in monetization efficiency. We believe these initiatives will further strengthen our momentum in 2025, delivering long-term value for our platform and stakeholders. Now, I'd like to provide a brief overview of our 2025 Q2 financial results. Our total net revenues in Q2 were RMB 3,239.1 million, representing a 17.2% increase year-over-year, primarily attributable to an increase in revenues from freight matching services.

Speaker #4: In parallel, our refined tiered approach to tracker operations will help accelerate the buildup of strategic core transportation capacity, fostering a virtuous cycle of healthy user growth and sustained improvements in monetization efficiency.

Speaker #4: We believe these initiatives will further strengthen our momentum in 2025, delivering long-term value for our platform and stakeholders. Now, I'd like to provide a brief overview of our Q2 2025 financial results.

Simon Cai: We believe these initiatives will further strengthen our momentum in 2025, delivering long-term value for our platform and stakeholders. Now, I'd like to provide a brief overview of our 2025 second quarter financial results. Our total net revenues in the second quarter were RMB 3 billion 239.1 million, representing a 17.2% 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 models, membership fees from listing models, and commissions from transaction services, were RMB 2 billion 747.9 million in the second quarter, representing an increase of 18% year-over-year, primarily due to the rapid increase in transaction service revenue. Revenues from the freight brokerage service in the second quarter were RMB 1,177.9 million, representing an increase of 1.1% year-over-year, primarily attributed to an increase in service fee rate, partially offset by a decrease in transaction volume.

Speaker #4: Our total net revenues in the second quarter were RMB three billion two hundred and thirty-nine point one million, representing a seventeen point two percent increase year over year.

Speaker #4: Primarily attributable to an increase in revenues from freight matching services, net revenues from freight matching services including service fees from freight brokerage models membership fees from listing models and commissions from transaction services were RMB two billion seven hundred and forty-seven point nine million in the second quarter, representing an increase of eighteen percent year over year.

Simon Cai: Net revenues from freight matching services, including service fees from freight brokerage models, membership fees from listing models, and commissions from transaction services were RMB 2,747.9 million in Q2, representing an increase of 18% year-over-year, primarily due to the rapid increase in transaction service revenue. Revenues from the freight brokerage service in Q2 were RMB 1,177.9 million, representing an increase of 1.1% year-over-year, primarily attributed to an increase in service fee rate, partially offset by a decrease in transaction volume. Revenues from the freight listing service in Q2 were RMB 242.9 million, up 14.5% year-over-year, primarily due to the growing number of total paying members.

Speaker #4: Primarily due to the rapid increase in transaction service revenue, revenues from the freight brokerage service in the second quarter were RMB one billion one hundred and seventy-seven point nine million, representing an increase of one point one percent Primarily attributed to an increase in service fee rate partially offset by a decrease in transaction volume.

Speaker #4: Revenues from the freight listing service in the second quarter were RMB two hundred and forty-two point nine million, up fourteen point five percent year over year, primarily due to the growing number of total payment members.

Simon Cai: Revenues from the freight listing service in the second quarter were RMB 242.9 million, up 14.5% year-over-year, primarily due to the growing number of total paid members. Revenues from the transaction service in the second quarter were RMB 1,327.1 million, up 39.4% year-over-year, primarily driven by an increase in order volume penetration rate and per order transaction service fee. Revenues from value-added services in the second quarter were RMB 491.2 million, up 12.8% year-over-year. The increase was primarily due to growing demand for our credit solutions. Second quarter contract revenues were RMB 1,238.4 million, a decrease of 5.6% from RMB 1,312.1 million in the same period of 2024. The decrease was primarily due to decreases in VAT-related tax surcharges and other tax costs net of grants from government authorities.

Speaker #4: Revenues from the transaction service in the second quarter were RMB one billion three hundred and twenty-seven point one million, up thirty-nine point four percent year over year.

Simon Cai: Revenues from the transaction service in Q2 were RMB 1,327.1 million, up 39.4% year-over-year, primarily driven by increased order volume, penetration rate, and per order transaction service fee. Revenues from value-added services in Q2 were RMB 491.2 million, up 12.8% year-over-year. The increase was primarily due to growing demand for our credit solutions. Q2 cost of revenues was RMB 1,238.4 million, a decrease of 5.6% from RMB 1,312.1 million in the same period of 2024. The decrease was primarily due to decreases in VAT-related tax surcharges and other tax costs net of grants from government authorities.

Speaker #4: Primarily driven by increased order volume penetration rate, and per order transaction service fee. Revenues from value-added services in the second quarter were RMB four hundred and ninety-one point two million, up twelve point eight percent year over year.

Speaker #4: The increase was primarily due to growing demand for our private solutions. Second quarter cost of revenues was RMB one billion two hundred and thirty-eight point four million, a decrease of five point six percent from RMB one billion three hundred and twelve point one million in the same period of 2024.

Speaker #4: The decrease was primarily due to decreases in VAT, related tax surcharges, and other tax costs net of grants from government authorities. And these tax-related costs net of government grants totaled RMB one billion and eighty-seven point one million.

Simon Cai: These tax-related costs net of government grants totaled RMB 1,087.1 million, representing a decrease of 7.6% from RMB 1,176.3 million in the same period of 2024, primarily due to a decrease in tax costs net of government refunds related to our freight brokerage service. Our sales and marketing expenses in the second quarter were RMB 433.8 million compared with RMB 372.3 million in the same period of 2024. The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions. General and administrative expenses in the second quarter were RMB 170.3 million compared with RMB 219.2 million in the same period of 2024. The decrease was primarily due to lower share-based compensation expenses. R&D expenses in the second quarter were RMB 189.6 million compared with RMB 232.1 million in the same period of 2024. The decrease was primarily due to lower salary and benefits expenses.

Simon Cai: These tax-related costs, net of government grants totaled RMB 1,087.1 million, representing a decrease of 7.6% from RMB 1,176.3 million in the same period of 2024, primarily due to a decrease in tax costs net of government refunds related to our freight brokerage service. Our sales and marketing expenses in Q2 were RMB 433.8 million, compared with RMB 372.3 million in the same period of 2024. The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions. General and administrative expenses in Q2 were RMB 170.3 million, compared with RMB 219.2 million in the same period of 2024.

Speaker #4: Representing a decrease of seven point six percent from RMB one billion one hundred and seventy-six point three million in the same period of 2024.

Speaker #4: Primarily due to a decrease in tax costs net of government refunds related to our freight brokerage service. Our sales and marketing expenses in the second quarter were RMB four hundred and thirty-three point eight million, compared with RMB three hundred and seventy-two point three million in the same period of 2024.

Speaker #4: The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions. General and administrative expenses in the second quarter were RMB one hundred and seventy point three million, compared with RMB two hundred and nineteen point two million in the same period of 2024.

Speaker #4: The decrease was primarily due to lower share-based compensation expenses. R&D expenses in the second quarter were RMB one hundred and eighty-nine point six million, compared with RMB two hundred and thirty-two point one million in the same period of 2024.

Simon Cai: The decrease was primarily due to lower share-based compensation expenses. R&D expenses in Q2 were RMB 189.6 million, compared with RMB 232.1 million in the same period of 2024. The decrease was primarily due to lower salary and benefit expenses. Income from operations in Q2 was RMB 1,139.6 million, an increase of 101.6% from RMB 565.4 million in the same period of 2024. Net income in Q2 was RMB 1,264.8 million, an increase of 50.5% from RMB 840.5 million in the same period of 2024.

Speaker #4: The decrease was primarily due to lower salary and benefit expenses. Income from operations in the second quarter was RMB one billion one hundred and thirty-nine point six million, an increase of one hundred and one point six percent from RMB five hundred and sixty-five point four million in the same period of 2024.

Simon Cai: Income from operations in the second quarter was RMB 1,139.6 million, an increase of 101.6% from RMB 565.4 million in the same period of 2024. Net income in the second quarter was RMB 1,264.8 million, an increase of 50.5% from RMB 840.5 million in the same period of 2024. Under non-GAAP measures, our adjusted operating income in the second quarter was RMB 1,230.1 million, an increase of 76% from RMB 699 million in the same period of 2024. Our adjusted net income in the second quarter was RMB 1,352.1 million, an increase of 39.3% from RMB 970.9 million in the same period of 2024. Basic income per ADF was RMB 1.2 in the second quarter, compared with RMB 0.79 in the same period of 2024. Non-GAAP adjusted basic net income per ADF was RMB 1.28 in the second quarter of 2025, compared with RMB 1.27.

Speaker #4: Net income in the second quarter was RMB one billion two hundred and sixty-four point eight million, an increase of fifty point five percent from RMB eight hundred and forty point five million in the same period of 2024.

Speaker #4: Under non-GAAP AP measures, our adjusted operating income in the second quarter was RMB one billion two hundred and thirty point one million, an increase of seventy-six percent from RMB six hundred and ninety-nine million in the same period of 2024.

Simon Cai: Under non-GAAP measures, our adjusted operating income in Q2 was RMB 1,230.1 million, an increase of 76% from RMB 699 million in the same period of 2024. Our adjusted net income in Q2 was RMB 1,352.1 million, an increase of 39.3% from RMB 970.9 million in the same period of 2024. Basic income per ADS was RMB 1.2 in Q2, compared with RMB 0.79 in the same period of 2024. Non-GAAP adjusted basic net income per ADS was RMB 1.28 in Q2 of 2025, compared with RMB 0.92 in the same period of 2024.

Speaker #4: Our adjusted net income in the second quarter was RMB one billion three hundred and fifty-two point one million, an increase of thirty-nine point three percent from RMB nine hundred and seventy point nine million in the same period of 2024.

Speaker #4: Basic income per ADS was RMB one point two in the second quarter, compared with RMB zero point seven nine in the same period of 2024.

Speaker #4: Non-GAAP adjusted basic net income per ADS was RMB one point two eight, in the second quarter of 2025. Compared with RMB zero point nine two in the same period of 2024.

Speaker #4: Non-GAAP adjusted diluted net income per ADS was RMB one point two seven in the second quarter, compared with RMB zero point nine one in the same period of 2024.

Simon Cai: Non-GAAP adjusted diluted net income per ADS was RMB 1.27 in Q2, compared with RMB 0.91 in the same period of 2024. As of 30 June 2025, the company had cash and cash equivalents, restricted cash, short-term investments, long-term time deposits, and wealth management products maturities over one year of RMB 29.5 billion in total, compared with RMB 29.2 billion as of 31 December 2024.

Simon Cai: Non-GAAP adjusted diluted net income per ADF was RMB 1.27 in the second quarter, compared with RMB 0.91 in the same period of 2024. As of June 30, 2025, the company had cash RMB 29.5 billion in total, compared with RMB 29.2 billion as of December. As announced on August 1st, to ensure the sustainable development of our freight brokerage business, the company has decided to increase the freight brokerage service fee starting in August, aiming to reduce reliance on government subsidies and mitigate associated uncertainties. This adjustment may lead to higher costs for shippers, and we can anticipate a significant decline in freight brokerage transaction volume beginning in the quarter ending September 30, 2025. Consequently, revenues from freight brokerage business are expected to decrease while costs are likely to rise, which may exert some pressure on profitability. That said, we expect a shift in the freight brokerage business.

Speaker #4: As of June thirtieth, 2025, the company had cash and cash equivalents restricted cash, short-term investments, long-term kind deposit, and wealth management products materials over one year of RMB twenty-nine point five billion in total, compared with RMB twenty-nine point two billion as of December thirty-first, 2024.

Speaker #4: As stated in our announcement on August 1st, to ensure the sustainable development of our freight brokerage business, the company has decided to increase the freight brokerage service fees starting in August, aiming to reduce reliance on government subsidies and mitigate associated uncertainties.

Simon Cai: As stated in our announcement on 1 August, to ensure the sustainable development of our Freight Brokerage Business, the company has decided to increase the freight brokerage service fee starting in August, aiming to reduce reliance on government subsidies and mitigate associated uncertainties. This adjustment may lead to higher costs for shippers. We anticipate a significant decline in freight brokerage transaction volumes beginning in the quarter ending 30 September 2025. Consequently, revenues from Freight Brokerage Business are expected to decrease while costs are likely to rise, which may exert some pressure on profitability. That said, we expect the shift in the Freight Brokerage Business will have limited impact on our Transaction Service Business.

Speaker #4: This adjustment may lead to higher costs for shippers and could anticipate a significant decline in freight brokerage transaction volume beginning in the quarter ending September 30, 2025.

Speaker #4: Consequently, revenues from the freight brokerage business are expected to decrease, while costs are likely to rise, which may exert some pressure on profitability. That said, we expect the shift in the freight brokerage business will have a limited impact on our transaction service business.

Speaker #4: Based on this outlook, we expect our total net revenues to be between RMB three billion three point zero seven billion and RMB three point one seven billion for the third quarter of 2025, representing a year-over-year growth rate of approximately one point three percent to four point six percent, excluding freight brokerage service, net revenues are expected to range from RMB two point one six billion to RMB two point two six billion, reflecting an estimated year-over-year growth rate of twenty-three point four percent to twenty-nine point one percent.

Simon Cai: Based on this outlook, we expect our total net revenues to be between RMB 3.07 billion and RMB 3.17 billion for Q3 2025, representing a year-over-year growth rate of approximately 1.3% to 4.6%. Excluding freight brokerage service, net revenues are expected to range from RMB 2.16 billion to RMB 2.26 billion, reflecting an estimated year-over-year growth rate of 23.4% to 29.1%. These forecasts are based on our 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. That concludes our prepared remarks. We'll now like to open the call to Q&A. Operator, please go ahead.

Simon Cai: Based on this outlook, we expect our total net revenues to be between RMB 3.07 billion and RMB 3.17 billion for the third quarter of 2025, representing a year-over-year growth rate of approximately 1.3%. Our expected revenues are expected to range from RMB 2.16 billion to RMB 2.26 billion, reflecting an estimated year-over-year growth rate of 23.4% to 29.1%. These forecasts are based on our 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. That concludes our prepared remarks. We would now like to open the call to Q&A. Operator, please go ahead.

Speaker #4: These forecasts are based on our 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 #4: That concludes our prepared remarks. We'd now like to open the call to Q&A. Operator, please go ahead.

Speaker #2: Thank you. If you wish to ask a question, please press *1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press *2.

Operator 2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. 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. Your first question comes from Eddy Wang with Morgan Stanley. Please go ahead.

Mao Mao: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. 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. Your first question comes from Eddie Wang with Morgan Stanley. Please go ahead.

Speaker #2: If you are on a speakerphone, please pick up the handset to ask your question. 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 #2: Your first question comes from Eddie Wang with Morgan Stanley. Please go ahead.

Speaker #4: Hey, Zhang Zhang, Simon Zhang, Mao Mao, 感谢接受我的提问。啊, 首先恭喜公司二季度的业绩也非常强劲。那, 我的问题是关于整个履约单量的, 就二季度我们看到平台的履约订单同比增长二十三点八, 然后履约率也提升到了四十点七。啊, 双双延续非常强劲的增长趋势, 想问一下背后主要的驱动因素是什么, 然后我们对二零二五年下半年以及全年的这履约订单增速的预期大概是怎么样的。啊, 我翻译一下, 呃, thank you management for taking my question. my question is regarding the fulfilled orders.

Hui Zhang: Mao Mao 感谢接受我的提问。首先恭喜公司二季度的业绩也非常强劲。我的问题是关于整个履约单量, 就二季度我们看到平台的履约订单同比增长23.8%, 然后履约率也提升到了40.7%, 双双延续非常强劲的增长趋势。想问一下背后主要的驱动因素是什么, 然后我们对2025年下半年及全年的这个履约订单增速的预期大概是怎么样的。我翻译一下。Thank you management for taking my question. My question is regarding the fulfilled orders. We have seen that the fulfilled orders increased by 24% year-over-year in the second quarter, and the fulfillment rate increased to around 41%, both maintaining very strong growth momentum. What are the key factors driving this growth? How do you view the fulfilled order volume growth in the second half of this year as well as for the full year? Thank you.

Eddy Wang: Thank you, management, for taking my question. My question is regarding the fulfilled orders. We have seen that fulfilled orders increased by 24% year over year in Q2, and the fulfillment rate increased to around 41%, both maintain very strong growth momentum. What are the key factors driving this growth? How do you view the fulfilled order volume growth in H2 of this year as well as for the full year? Thank you.

Speaker #4: We have seen that the fulfilled orders increased by 24% year over year in the second quarter, and the fulfillment rate increased to around 41%, also maintaining very strong gross momentum.

Speaker #4: What are the key factors driving this growth? How do you view the fulfilled order volume growth in the second half of this year, as well as for the full year?

Speaker #4: Thank you.

Speaker #5: Thank you, Eddie. In the past, the second quarter, our fulfilled orders continued to increase steadily, significantly outperforming the broader freight market. We attribute this strong growth to three key elements.

Simon Cai: Thank you, Eddie. In the past Q2, our fulfilled orders continued to increase steadily, significantly outperforming the broader freight market. We attribute this strong growth to three key elements: our ongoing user base expansion, the optimization of shipper user structure, and our product and service upgrades. First, the consistently rapid expansion of both shippers and trucker user base has laid a solid foundation for order growth. On shipper side, rising demand among the SME owners to reduce costs and improve efficiency, along with increased appetite for digital and intelligent transformation, has accelerated the shift of shippers from offline to online. Our average monthly active shippers exceeded 3.16 million in Q2, hitting an all-time high.

Simon Cai: Thank you, Eddie. In the past second quarter, our fulfilled orders for the freight market, the optimization of shipper user structure in our product and service offerings. First, the consistently rapid expansion of both shippers and trucker user base has laid a solid foundation for order growth. On the shipper side, rising demand among the SME owners to reduce costs and improve the active shipper and all-time high. On the trucker side, and second, the continuous optimization of our shipper user base has driven stronger order stickiness. Our high-quality shipper segment, where mostly low and medium frequency direct shippers have delivered consistent growth in average fulfillment, reflecting stronger retention and stickiness. The order contribution of direct shippers further increased to 53% in the second quarter. That is up four percentage points year-over-year. In the meantime, our average fulfillment rate for these direct shippers surpassed 60% threshold for the first time.

Speaker #5: Our ongoing user base expansion, the optimization of the shipper user structure, and our product and service upgrades. First, the consistently rapid expansion of both shippers and tracker user bases has laid a solid foundation for order growth.

Speaker #5: Our shipper side, rising demand among SME owners, to reduce costs and improve efficiency, along with a decreased appetite for digital and intelligent transformation, has accelerated the shift of shippers from offline to online.

Speaker #5: Our average monthly active shippers exceeded 3.16 million in the second quarter, hitting an all-time high. On the tracker side, more trackers who traditionally operated offline took orders through online platforms, effectively boosting transportation capacity.

Simon Cai: On the trucker side, more truckers who traditionally operated offline took orders through online platforms, effectively boosting transportation capacity. The continuous expansion on both the supply and demand sides has further supported order growth. Second, the continued optimization of our shipper user base has driven stronger order stickiness. Our high-quality shipper segment, who are mostly low and medium frequency direct shippers, has delivered consistent growth in average fulfilled orders per user, thanks to our ongoing platform service refinements, reflecting stronger retention and stickiness. The order contribution of direct shippers further increased to 53% in Q2. That is up 4 percentage points year-over-year. In the meantime, our average fulfillment rate for these direct shippers surpassed 60% threshold for the first time.

Speaker #5: The continued expansion on both the supply and demand sides has further supported order growth. And second, the continued optimization of our shipper user base has driven stronger order stickiness.

Speaker #5: Our high-quality shipper segments, who are mostly low and medium frequency direct shippers, have delivered consistent growth in average fulfilled orders per user, thanks to ongoing platform service refinements, reflecting stronger retention and stickiness.

Speaker #5: The other contribution of direct shipper further increased to fifty-three percent in the second quarter, which is up four percentage points year over year.

Speaker #5: In the meantime, our average fulfillment rate for these direct shippers surpassed sixty percent, the threshold for the first time. This user mix progress was a key structural driver of the overall increase in order volume and fulfillment rates.

Simon Cai: This user mix progress was a key structural driver of the overall increase in order volume and fulfillment rates. Thirdly, our further upgraded products and operational strategies have strengthened the certainty level of order fulfillment. For example, in the second quarter, we rolled out an intelligent matching system that prioritized dispatching orders to truckers closest. Our strategy effectively cut down matching time and improved the trucker's order response efficiency and fulfillment reliability. Meanwhile, on the shipper side, we have fine-tuned our shipper information intake process, helping truckers get clearer and more complete information caused by information gaps. For the full year, we remain optimistic about the continued growth in our fulfilled orders.

Simon Cai: This user mix progress was a key structural driver of the overall increase in order volume and fulfillment rates. Thirdly, our further upgraded products and operational strategies have strengthened the certainty level of order fulfillment. For example, in Q2, we rolled out a intelligent matching system that prioritize dispatching orders to truckers closest to the shipping location before gradually extending outwards. This close-to-far strategy effectively cut down matching time and improved the truckers' order resolve efficiency and fulfillment reliability. Meanwhile, on the shipper side, we have fine-tuned our shipper information intake process, helping truckers get a clearer and more complete before accepting orders, which has reduced cancellation caused by information gaps. For the full year, we remain optimistic about the continued growth in our produced orders.

Speaker #5: Thirdly, our further upgraded products and operational strategies have strengthened the certainty level of order fulfillment. For example, in Q2, we rolled out an intelligent matching system that prioritized dispatching orders to trackers closest to the shipping location.

Speaker #5: Before gradually extending outwards, this close-to-far strategy effectively cut down matching time and improved the trackers' order response efficiency and fulfillment reliability. Meanwhile, on the shipper side, we have fine-tuned our shipper information intake process, helping trackers get a clearer and more complete picture of the cargo before accepting orders.

Speaker #5: Which has reduced cancellation costs due to information gaps. For the full year, we remain optimistic about the continued growth in our fulfilled orders. While macro uncertainties are likely to persist in the second half, we feel our relatively positive outlook is justified given our leading edge and strong market position in the freight matching service, and the online penetration is still low.

Simon Cai: While the macro uncertainties are likely to persist in H2, we feel our relatively positive outlook is justified given our leading edge and strong market position in the freight matching service and the online penetration is still low. We will continue optimizing user structure and enhancing service standards to keep driving higher quality order conversions while also refining our product and service operations to boost user engagement and retention among small and medium-sized shippers and core trucker groups. We're confident these efforts will further solidify our platform's industry leadership and bring us closer to our full-year order growth target. Thank you.

Simon Cai: While the macro uncertainties are likely to persist in the second half, we feel our relatively positive outlook is justified given our leading edge and strong market position in the freight matching service, and the online penetration is still low. We will continue optimizing user structure and enhancing service standards to keep driving higher quality order conversions while also refining our product and service cooperations to boost user engagement and retention among small and medium-sized shippers and core trucker groups. We are confident these efforts will further solidify our platform's industry leadership and bring us closer.

Speaker #5: We will continue optimizing user structure and enhancing service standards to keep driving higher quality order conversions, while also refining our product and service operations to boost user engagement and retention among small and medium-sized shippers and core tracker groups.

Speaker #5: We're confident these efforts will further solidify our platform's industry leadership and bring us closer to our full-year order growth target. Thank you.

Speaker #5: Thank you.

Eddy Wang: Thank you.

Speaker #2: Your next question comes from Charlie Chen with China Renaissance. Please go ahead.

Operator 2: Your next question comes from Charlie Chen with China Renaissance. Please go ahead.

Mao Mao: Your next question comes from Charlie Chen with China Renaissance. Please go ahead.

Speaker #6: Uh,谢谢管理层给我这个提问的机会, 也恭喜公司在第二季度又取得一个成功的一个季度。那, 我注意到二季度发货货主的月活现在是三百一十六万, 这个同比提升了百分之十九点三。呃, 我想就是了解一下背后的主要驱动因素是什么, 然后呃, 也请公司来分享一下货主会员业务在二季度的这样一个进展是怎么样的。啊, 那我翻译一下, thanks management to take my questions. in the second quarter, the number of monthly active shippers reached three point one six million, representing a year-over-year growth of nineteen point three percent.

Simon Cai: 谢谢管理层给我这个提问的机会, 也恭喜公司在第二季度又取得一个成功的一个季度。那我注意到二季度发货货主的月活现在是316万, 这个同比提升了19.3%。我想就是了解一下背后的主要驱动因素是什么, 然后也请公司来分享一下货主会员业务在二季度的这样一个进展是怎么样的。那我翻译一下, thanks management to take my questions. In the second quarter, the number of monthly active shippers reached 3.16 million, representing a year-over-year growth of 19.3%. What are the main drivers behind this growth, and could you brief us on the progress of the shipper member business in the second quarter? Thank you. Thank you, Charlie. In the second quarter, the number of average monthly active shippers, this momentum was primarily driven by improved user acquisition efficiency. We continued to optimize our user acquisition strategy. We cut back on low-conversion marketing placement channels and shifted resources to high-conversion channels, such as online app store advertising, achieving better ROI within a controlled budget. New shippers' willingness to engage and we refined key features such as trucker trajectory completeness and real-time trucker locations, enhancing shippers' confidence in our fulfillment capabilities.

Charlie Chen: Thanks management to take my questions. In Q2, the number of monthly active shippers reached 3.16 million, representing a year-over-year growth of 19.3%. What are the main drivers behind this growth? Could you brief us on the progress of the shipper member business in Q2? Thank you.

Speaker #6: What are the main drivers behind this growth, and could you brief us on the progress of the shipper member business in the second quarter?

Speaker #6: Thank you.

Speaker #5: Thank you, Charlie. In the second quarter, the number of monthly active shippers maintained a solid growth trajectory, which we observed in the past few quarters.

Simon Cai: Thank you, Charlie. In Q2, the number of monthly active shippers maintained a solid growth trajectory we have observed in the past two quarters. This momentum was primarily driven by improved user acquisition efficiency and consistent enhancements to product experience. First, we continue to optimize our user acquisition strategy. We cut back on low conversion marketing placement channels and shifted resources to high conversion channels, such as online app store advertising, and achieving better ROI within a controlled budget. New shippers' willingness to engage and the conversion rate of their first postings to fulfillment both improved significantly, driving ongoing improvement in the quality of new users. Second, our efforts to increase engagement and retention among existing users contributed to the sustained MAU growth.

Speaker #5: At this momentum, it was primarily driven by improved user acquisition efficiency and consistent enhancements to product experience. First, we continued to optimize our user acquisition strategy.

Speaker #5: We cut back on low-conversion marketing placement channels and shifted resources to high-conversion channels, such as the online app store, advertising, and achieving better ROI within a controlled budget.

Speaker #5: New shippers' willingness to engage and the conversion rate of the first postings to fulfillment both improved, significantly driving ongoing improvements in the quality of new users.

Speaker #5: Second, our efforts to increase engagement and retention among existing users contributed to the sustained MAU growth. We refined key features such as tracker trajectory completeness and real-time tracker locations, enhancing shippers' confidence in our fulfillment capabilities.

Simon Cai: We refined key features such as trucker trajectory completeness and real-time trucker locations, enhancing shippers confidence in our fulfillment capabilities. This boosted both overall shipment frequency and fulfillment rate, elevating user stickiness. Sequentially, our shipper MAU growth eased slightly quarter-over-quarter, mainly due to reduced activity among intermediary 1688 member shippers. As we stayed more focused on serving direct shippers and strengthening our platform service capabilities, fulfillment experience and matching efficiency, more direct shippers opt to post orders directly onto our platform, reducing the role of intermediary brokers. This shift was essentially an improvement in our platform's ecosystems quality, marking progress towards a more sustained shipper user cluster.

Speaker #5: This boosted both overall shipment frequency and fulfillment rates, elevating user stickiness. Sequentially, our shipper MAU growth eased slightly quarter over quarter, mainly due to reduced activity among intermediary 1688 member shippers.

Simon Cai: This boosted both overall shipment frequency and fulfillment rates, elevating user stickiness. Sequentially, our shipper average monthly active shippers growth eased slightly as we stayed more focused on serving direct shippers and strengthened our platform service capabilities. Those orders directly come to our platform, reducing the role of intermediary brokers. This shift was essentially an improvement in our platform's ecosystem's quality market progress toward a more sustained shipper user structure. Regarding the membership program, the number of shipper members continued to steadily increase to 1 million by quarter end. This growth was primarily driven by our ongoing enhanced retention and stable retention among existing members. The rapid growth of many memberships remains the primary driver of shipper member growth. Promotion for our 288 tiered membership program effectively lowered the initial payment threshold, driving first-time conversions among low and medium frequency direct shippers.

Speaker #5: As we stayed more focused on serving direct shippers and strengthened our platform service capabilities, fulfillment experience, and matching efficiency, more direct shippers opted to post orders directly onto our platform.

Speaker #5: Reducing the role of intermediary brokers. This shift was essentially an improvement in our platform's ecosystem quality, marking progress towards a more sustained shipper user structure.

Speaker #5: Regarding membership program, the number of shipper members continued to steadily increase in the second quarter, with existing shipper members dating one point two one million by quarter end.

Simon Cai: Regarding membership program, the number of shipper members continued to steadily increase in Q2, with existing shipper members hitting 1.21 million by quarter end. This growth was primarily driven by our ongoing enhancement to our membership programs, effective execution of our tiered pricing strategies, and stable retention among existing members. The rapid growth of many member shippers remained the primary driver of shipper member growth. Promotion for our 288 membership program effectively lowered initial payment threshold, driving first-time conversions among low and medium-frequency direct shippers. Data shows that our tiered approach to member operations has started to pay off.

Speaker #5: And this growth was primarily driven by our ongoing enhancements to our membership programs, effective execution of our tiered pricing strategies, and stable retention among existing members.

Speaker #5: The rapid growth of many member shippers remained the primary driver of shipper member growth. Promotion for our Q888 membership program effectively lowered the initial payment threshold, driving first-time conversions among low- and medium-frequency direct shippers.

Speaker #5: Data shows that our tiered approach to member operations has started to pay off. Notably, in the second quarter, amount two eight eight members who we used up their shipments used up their shipment allowance and choose to renew.

Simon Cai: Data shows that our tiered approach to member operations has started to pay off. Nearly 30% upgraded to the 688 tiered membership program, demonstrating users' increasing trust and reliance on our platform services. In the meantime, retention among existing shipper members remains stable. As of the end of the second quarter, our 12-month rolling retention rate for shipper members remained above 80%. Role payment base and user lifecycle value, hitting our platform order growth and enhancing.

Simon Cai: Notably in Q2, amongst 288 members who used up their shipments, used up their shipment allowance and chose to renew, nearly 30% upgraded to the 688 membership, demonstrating users increasing trust and reliance on our platform services. In the meantime, retention among existing shipper members remained stable. As of the end of Q2, our 12-month rolling retention rate for shipper members remained above 80%. This sustained high level over multiple quarters reflects our continuous efforts to improve member experience. Looking ahead, we will continue to focus on high-quality direct shipper operations, expanding the share of core users while naturally phasing out intermediary shippers.

Speaker #5: Nearly thirty percent upgraded to the 688 membership, demonstrating users' increasing trust and reliance on the platform services. In the meantime, retention among existing shipper members remained stable.

Speaker #5: As of the end of the second quarter, our twelve-month rolling retention rate for shipper members remained above eighty percent. This sustained high level over multiple quarters reflects our continuous efforts to improve member experience.

Speaker #5: Looking ahead, we will continue to focus on high-quality direct shipper operations, expanding the share of core users while naturally phasing out intermediary shippers. In terms of the membership program, we will further enhance renewal rates for many member shippers and encourage upgrades to higher-tier members, leveraging our tiered approach to member operations and targeted benefits.

Simon Cai: In terms of the membership program, we will further enhance renewal rates for many member shippers and encourage pathways to higher tier members, leveraging our tiered approach to members' operations and targeted benefits. This will enable us to boost overall payment rate and user lifecycle value, fueling our platform's order growth and enhancing transaction efficiency.

Speaker #5: This will enable us to boost overall payment rates and user lifecycle value, build our platform's order growth, and enhance transaction quality. Thank you.

Speaker #2: Thank you. Your next question comes from Wendy Chang with CICC. Please go ahead.

Operator 2: Thank you. Your next question comes from Wenjie Zhang with CICC. Please go ahead.

Mao Mao: Thank you. Your next question comes from Wenjie Chang with CICC. Please go ahead.

Speaker #6: morning, Zhang Zhang. Zhang Zhang, 谢谢接受我的提问哈, 然后也恭喜公司二季度有这么强劲的业绩。 那我的问题其实想问关于行业自律公约。那我们都看到说七月初的时候, 国内几家最主要的网络货运平台共同签署了行业自律公约。那我也想请教在此背景下, 我们平台做了哪些核心的措施 二度的 translation for myself thank you management for taking my question. we know that in early July, several major domestic online freight platforms have jointly signed the industry self-regulation convention.

Speaker 5: 关于头版账号, 谢谢接受我的提问, 然后也恭喜公司二季度有这么强劲的业绩。那我的问题其实想问关于行业自律公约, 那我们都看到说7月初的时候, 国内几家最主要的网络货运平台共同签署了行业自律公约。那我也想请教在此背景下我们平台做了哪一些核心的措施? I will do the translation for myself. Thank you management for taking my question. We know that in early July, several major domestic online freight platforms have jointly signed the Industry Self-Regulation Convention. Under the context, what measures have you put in place?

Wenjie Zhang: I'll do the translation for myself. Thank you, management, for taking my question. We know that in early July, several major domestic online freight platforms have jointly signed the Industry Self-Regulation Convention. Under the context, what measures have you put in place?

Speaker #6: Under the context, what measures have you put in place?

Speaker #5: Thank you, Wendy. That's a good question. the industry self-regulation convention aimed to protect trackers' legitimate rights and foster a healthier more sustainable industry ecosystem.

Simon Cai: Thank you, Wenjie. That's a good question. The Industry Self-Regulation Convention aimed to protect truckers' legitimate rights and foster a healthier, more sustainable industry ecosystem. Our platform responded swiftly with supplementary guidance and various measures aimed at helping truckers take orders confidently, receive payment promptly, and operate with a peace of mind. In terms of freight rate protection, we strengthened our oversight of shippers and provided truckers with robust support in resolving payment issues through both customer service and legal channels. We have also expanded our freight rate protection program for eligible trucker members. For orders that are not settled on time, the platform will advance or partially cover payments per established use, ensuring that truckers' cash flow is more stable and predictable.

Simon Cai: Thank you, Wenjie. That is a good question. The Industry Self-Regulation Convention aimed to protect truckers' legitimate rights and foster a healthier payment process and operate with a peace of mind. In terms of freight rate protection, we strengthened our oversight of shippers through both customer service and legal channels. We have also expanded our freight rate protection program for eligible trucker members. For orders that are not settled on time, the platform will advance or partially cover payments. To improve transaction fairness, we have taken steps to curb market disrupting behaviors such as malicious order flipping, fake order taking, and frequent cancellations. Leveraging algorithm monitoring and optimization, we are able to block ultra-low priced or otherwise unreasonable freight resources, helping safeguard truckers' earnings. Shippers or truckers who violate our platform rules may face account suspension or blacklisting.

Speaker #5: Our platform responded swiftly with supplementary guidance in various measures aimed at helping trackers take orders confidently, receive payment promptly, and operate with peace of mind.

Speaker #5: In terms of freight rate protection, we strengthened our oversight of shippers and provided trackers with robust support in resolving payment issues through both customer service and legal channels.

Speaker #5: We have also expanded our freight freight rate protection program for eligible tracker members. For orders that are not settled on time, the platform will advance or partially cover payments per established rules, ensuring that trackers' cash flow is more stable and predictable.

Speaker #5: To improve transaction fairness, we have taken steps to curb market disrupting behaviors such as malicious order flipping, fake order taking, and frequent cancellations. Leveraging algorithm monitoring and optimization, we're able to block out for low-priced or otherwise unreasonable freight resources.

Simon Cai: To improve transaction fairness, we have taken steps to curb market-disrupting behaviors such as malicious order flipping, fake order taking, and frequent cancellations. Leveraging algorithm monitoring and optimization, we're able to block ultra-low priced or otherwise unreasonable freight resources, helping safeguard truckers' earnings. Shippers or truckers who violate program platform rules may face account suspension or blacklisting. At the same time, we have made reporting channels more accessible, encouraging truckers to share tips and help maintain a transparent, fair trading environment. Finally, we are enhancing communication and feedback mechanisms by regularly hosting trucker discussion panels in person where truckers can share their thoughts on what matters most to them, including rights protection and route optimization.

Speaker #5: Helping safeguard trackers' earnings, shippers or trackers who violate program platform rules may face account suspension or blacklisting. At the same time, we have made reporting channels more accessible, encouraging trackers to share tips and help maintain a transparent, fair trading environment.

Simon Cai: At the same time, we have made reporting channels more accessible, encouraging truckers to share tips and help maintain a transparent, fair trading environment. Finally, we are enhancing communication and feedback mechanisms by regularly hosting trucker discussion panels in person, where truckers can share their thoughts on what matters most to them, including rights, protection, and rule optimization. We are also gradually reporting issues. These initiatives are designed to reinforce truckers' sense of security, satisfaction, and trust when operating on our platform, while fostering a stable, long-lasting partnership between the platform.

Speaker #5: Finally, we are enhancing communication and feedback mechanisms by regularly hosting tracker discussion panels in person, where trackers can share their thoughts on what matters most to them, including rights, protection, and rule optimization.

Speaker #5: We're also gradually open channels for trackers to submit reports public publicly share feedback and and track resolution so we can ensure closure of reported issues.

Simon Cai: We'll also gradually open channels for truckers to submit reports, publicly share feedback, and track resolution, so we can ensure closure of re-reported issues. These initiatives are designed to reinforce truckers' sense of security, satisfaction, and trust when operating on our platform while fostering a stable long-lasting partnership between the platform and the trucker community.

Speaker #5: These initiatives are designed to reinforce trackers' defenses of security satisfaction and trust when operating on our platform, while fostering a stable long-lasting partnership between the platform and the tracker community.

Speaker #2: Your next question comes from Yuan Liao with Citics. Please go ahead.

Operator 2: Your next question comes from Yuan Liao with CITIC. Please go ahead.

Mao Mao: Your next question comes from Yuan Liao with Citix. Please go ahead.

Yuan Liao: Thanks, management, for taking my questions. Congrats for the strong results in Q2. We see that the company adjusted its freight brokerage service on 1 August. What operational changes has been made since then? Do you observe any user behavior shift? How should we view the future prospects in the financial contribution of the Manbang business? Thank you.

Speaker #6: 感谢管理层接受我的提问啊, 也非常嗯, 恭喜管理层取得一个呃, 强劲的一个业绩啊。啊, 我的问题是呃, 我们注意到公司在八月一号对于货运经济的一个业务也进行了一个调整啊。啊, 那八月至今呢, 啊, 公司在运营层面具体做了哪一些呃, 这个调整以及用户行为上我们看到了哪些主要的一些变化。啊, 我们应该怎么去看待买入到业务未来的一个发展规划和财务的一个贡献。呃, thanks management for taking my questions. congrats for the strong results in the second quarter.

Speaker 5: 感谢管理层接受我的提问, 也非常恭喜管理层取得一个强劲的业绩。我的问题是, 我们注意到公司在8月1号对于货运经济的一个业务也进行了一个调整。那8月至今呢, 公司在运营层面具体做了哪一些这个调整, 以及用户行为上我们看到了哪些主要的一些变化? 我们应该怎么去看待Yunmanman业务未来的一个发展规划和财务的一个贡献? Thanks management for taking the questions. Congrats for the strong results in Q2. We see that the company adjusted its freight brokerage service on August 1st. What operational changes have been made since? Do you observe any user behavior shifts? How should we view the future prospects in the financial contribution of the Yunmanman business? Thank you.

Speaker #6: And we see that the company adjusted its freight brokerage service on August 1st. So, what operational changes have been made since? And do you observe any user behavior shift?

Speaker #6: And how should we view the future prospects in the financial contribution of the mining bulk business? Thank you.

Speaker #5: Thank you. In early August, in response to the upcoming cancellation of government grants, we promptly increased the fee rate for freight broker service to between ten to eleven percent to cover the increased tax costs and other operating costs related to the business.

Simon Cai: Thank you. In early August, in response to the upcoming cancellation of government grants, we promptly increased the fee rate for freight brokerage service to between 10% to 11% to cover the increased tax costs and other operating costs related to the business. At the operational level, we have been focused on strengthening existing customer communication and retention, with emphasis on ensuring a seamless experience for shippers placing, invoicing, and also freight matching orders. At the same time, we have continued to enhance our freight matching services to maintain stable and human performance. Early observations suggest that the retention of these users remain broadly in line with our expectations following the fee rate adjustment, confirming the core value of our platform's freight matching service in driving user engagement and loyalty.

Simon Cai: Thank you. In early August, in response to the upcoming cancellation of government grants, we promptly increased the fee rate. The increase to the tax costs and other operating costs is related to the business. At the operational level, we have been focused on strengthening existing customer communication and retention with efforts on ensuring a seamless experience for shippers placing invoicing and also freight matching orders. At the same time, we have continued to enhance our freight matching services to maintain stable fulfillment performance. Early observations suggest that the retention of these users remains broadly in line with our expectation following the fee rate adjustment, confirming the core value of our platform's freight matching service in driving user engagement and loyalty.

Speaker #5: At the operational level, we have been focused on strengthening existing customer communication and retention, with emphasis on ensuring a seamless experience for shippers placing invoicing and freight matching orders.

Speaker #5: At the same time, we have continued to enhance our freight matching services to maintain stable fulfillment performance. Early observations suggest that the retention of these users remains broadly in line with our expectations following the fee rate adjustment, confirming the core value of our platform's freight matching service in driving user engagement and loyalty.

Speaker #5: On group level, we believe the adjustments to our freight brokerage business will have limited impact on other freight matching service. we expect that as other platforms will provide a similar freight brokerage service, the services complete fee rate adjustments sooner or later, both smaller players with limited value add other than low-priced invoicing service will exit the market eventually.

Simon Cai: On group level, we believe the adjustments to our freight brokerage business will have limited impact on our freight matching service. We expect that as other platforms who provide a similar freight brokerage services complete fee rate adjustments sooner or later, those smaller players with limited value-add other than low-priced invoicing service will exit the market eventually. This is likely to bring some users back to the FTA and support further highlighting the core value our platform delivers to both shippers and truckers. From a financial standpoint, we believe the reduced profit contribution of freight brokerage will over the long run help us optimize our revenue structure and key operating metrics, including profitability.

Simon Cai: On a group level, we expect that as other platforms provide similar freight brokerage services complete fee rate adjustments sooner or later, those smaller players with limited value add other than this is likely to bring some users back to the FTA and further highlighting the core value of our platform. We believe the reduced profit contribution of freight brokerage will, over the long run, help us optimize our revenue structure and key operating metrics, including profitability. It will also receive local government grants.

Speaker #5: This is likely due to bring some users back to the FTA and support a new wave of consolidation in freight sec in the in the freight sector.

Speaker #5: Further highlighting the core value of our platform, our platform delivers to both shippers and truckers. From a financial standpoint, we believe the reduced profit contribution of freight brokerage will, over the long run, help us optimize our revenue structure and key operating metrics, including profitability. It will also reduce cash flow uncertainty arising from receivables and local government grants, allowing our earnings to more accurately reflect the true value of our core operations and providing a stronger foundation for sustainable revenue and profit growth in the future.

Simon Cai: It will also reduce cash flow uncertainty arising from receivables, receivable local government grants, allowing our earnings to more accurately reflect the true value of our core operations and providing a stronger foundation for sustainable revenue and profitability in the future. Thank you.

Speaker #5: Thank you.

Speaker #2: Your next question comes from Richie Sun with HSBC. Please go ahead.

Operator 2: Your next question comes from Ritchie Sun with HSBC. Please go ahead.

Mao Mao: Your next question comes from Richie Sun with HSBC. Please go ahead.

Speaker #6: Hi. 管理长, 晚上好。谢谢你们接受我的提问。 想问一下呃, 二季度的优车业务的进展如何? 然后针对运营侧, 我们主要的一些动向, 包括什么呢? 啊, baggage management for the game of question. I want to ask about the interest of shipment business.

Speaker 5: 嗨, 关于转化账号, 谢谢你们接受我的提问。想问一下二季度的优车业务的进展如何? 然后针对运营侧, 我们主要的一些动向包括什么呢? Thank you management for taking my question. I want to ask about the entrusted shipment business. How did this segment perform in the second quarter? On the operations side, what were the key initiatives involved? Thank you.

Ritchie Sun: Thank you management for taking my question. I want to ask about the entrusted shipment business. How did this segment perform in Q2? On the operation side, what were the key initiatives involved? Thank you.

Speaker #6: So how did this segment perform in the second quarter? And on the operations side, what were the key initiatives involved? Thank you.

Speaker #5: Thank you, Richie. Since the beginning of the second quarter, we have reshuffled our entrusted shipment service. As part of broader business strategy optimization, starting in April, we streamlined product offerings by discontinuing the entrusted shipment carpooling service.

Simon Cai: Thank you, Ritchie. Since the beginning of Q2, we have reshuffled our entrusted shipment service as part of our broader business strategy optimization. Starting in April, we streamlined product offerings by discontinuing the entrusted shipment carpooling service and focusing exclusively on the full truckload transactions under the entrusted shipment segment. This shift was driven by two considerations. First, from a product positioning perspective, the entrusted shipment business is built around providing a high quality, highly reliable transportation experience for shippers with stringent requirements for timeliness and stability. In contrast, less-than-truckload carpooling services are primarily cost-driven, characterized by lower freight rates and less certainty in fulfillment. This inherent mismatch with our brand positioning prompted to reshuffle the carpooling service and concentrate our resources on full truckload offering and further enhancing the premium image of the entrusted shipment segment.

Simon Cai: Thank you, Richie. Since the beginning of the second quarter, we have reshuffled our interested shipment service as part of our broader business strategy optimization. Starting in April, we streamlined product offerings by discontinuing the carpooling in the entrusted shipment business and focusing exclusively on the full truck. This shift was driven by two considerations. First, from a product positioning perspective, the entrusted shipment business is built around providing a high-quality, highly reliable transportation experience for shippers with stringent requirements for timeliness and stability. In contrast, less interested carpooling services are primarily cost-driven, characterized by lower freight rates and less certainty in fulfillment. This inherited mismatch with our brand positioning is the interested shipment segment. Second, from an operational efficiency, we achieved higher freight rates and stronger fulfillment performance, making them more attractive to. This

Speaker #5: And focusing exclusively on the full truckload transactions under the entrusted shipment segment. This shift was driven by two considerations. First, from a product positioning perspective, the entrusted shipment business is built around providing a high-quality, highly reliable transportation experience for shippers with stringent requirements for timeliness and stability.

Speaker #5: In contrast, less-than-truckload carpooling services are primarily cost-driven, characterized by lower freight rates and less certainty in fulfillment. This inheritance mismatch with our brand positioning prompted us to reshuffle the carpooling service and concentrate our resources on the full truckload offering.

Speaker #5: And further enhancing the premium image of the entrusted shipment segment. Second, from an operational efficiency standpoint, full truckload orders in the entrusted shipment business generally achieve higher freight rates and stronger fulfillment performance, making them more attractive to trackers.

Simon Cai: Second, from a operational effect efficiency standpoint, full truckload orders in the entrusted shipment business generally achieve higher freight rates and stronger fulfillment performance, making them more attractive to truckers. This advantage was amplified in May when we fully implement the price consistency mechanism, under which freight rates for entrusted shipment orders are notably higher than standard freight orders. The resulting income potential has increased trucker engagement and expanded the availability of high quality transportation capacity on our platform. While the restructuring of services offering under entrusted shipment program led to a short-term slowdown in order volume growth, we believe this strategic adjustment will over the medium to long term strengthen user mindset with premium brand positioning, creating differentiated competitive advantages, and help cultivate a higher quality ecosystem of both shippers and truckers.

Speaker #5: The disadvantage was amplified in May when we fully implemented the price consistency mechanism, under which freight rates for entrusted shipment orders are notably higher than standard freight orders.

Mao Mao: disadvantage was amplified in May when we fully implemented the price consistency mechanism, under which freight rates for entrusted shipment orders are notably higher than standard freight orders. The resulting income potential has increased trucker engagement. While the restructuring of services offering under the entrusted shipment program led to a short-term slowdown in order volume growth, we believe this strategic adjustment will, over the medium to long term, strengthen user mindset with premium brand positioning, creating differentiated competitive advantages, and help cultivate a higher quality ecosystem of both shippers and truckers. On the monetization front, the premium pricing strategy has created a more favorable revenue environment and improved stability in revenue from transaction service. Looking ahead, we will continue refining the entrusted shipment business model, focusing on the dual engines.

Speaker #5: The resulting income potential has increased tracker engagement and expanded the availability of high-quality transportation capacity on our platform. While the restructuring of services offering under the entrusted shipment program led to a short-term slowdown in order volume growth, we believe this strategic adjustment will, over the medium to long term, strengthen user mindsets with premium brand positioning, creating differentiated competitive advantages and helping cultivate a higher quality ecosystem of both shippers and trackers.

Simon Cai: On the monetization front, the premium pricing strategy has created a more favorable revenue environment and improved stability in revenues from transaction service. Looking ahead, we will continue refining the entrusted shipment business model, focusing on the dual engines of efficient matching and premium service to further enhance user experience, deepen platform engagement, and solidify its role as a core pillar of our product portfolio. Thank you.

Operator 2: That concludes the question and answer session. I would like to turn the conference back over to management for any additional or closing comments.

Mao Mao: That concludes the question and answer session. I would like to turn the conference back over to management for any additional or closing comments.

Mao Mao: Thank you once again for joining us today. If you have any further questions, please feel free to contact us at Full Truck Alliance directly or TPG Investor Relations. Have a good day.

Hui Zhang: Thank you once again for joining us today. If you have any further questions, please feel free to contact us at Full Truck Alliance Co. Ltd. directly or TPG Investor Relations. Have a good day.