Trip.com Group Ltd - ADR

Strong resilience but macro pressure + negative one-offs (headline and adjusted picture) - Q2’26 net revenue: RMB 15.7bn (+6% YoY). - Accommodation: RMB 6.6bn (+6% YoY), *partly offset* by a contra-revenue item tied to an administrative penalty; excluding it, revenue growth would have been ~+8%. - Transportation: RMB 5.4bn (-1% YoY) due to softer demand, elevated fuel prices/airfares, geopolitical tensions, and operations adjustments for compliance/industry standards. - Costs/earnings impacted by penalty: Q2 included RMB 5.18bn expense + RMB 122m contra-revenue from the SAMR matter; CFO stressed these are one-time items and don’t reflect underlying operating performance. - Adjusted profitability (ex-penalty etc.): adjusted EBITDA ~RMB 4.6bn vs RMB 4.9bn YoY; non-GAAP EPS: RMB 7.27 (USD 1.07) vs RMB 7.0 in Q2’25.

International is the key growth engine; inbound momentum + premium/personalization signals - Inbound travel: revenue up high double digits YoY in Q2; APAC remains core source (Korea/SEA), with seasonal strength from Europe & the Americas during holidays. - International OTA platform revenue: up >50% YoY, supported by higher transaction value and better mix despite fuel/airfare headwinds. - Premium demand trends: - First/business class flight bookings up >70% YoY (H1’26). - Customized tours (with travel experts) up 600%—strong evidence of higher-quality and more personalized travel. - Strategic ambition: “serve 200 million inbound travelers over the next 5 years” to accelerate inbound ecosystem build-out.

Domestic remains robust but with mix shift; family travel and entertainment are notable upside areas - Domestic demand supported by holidays/spring break; Qiming/May Day/Dragon Boat holidays were strong. - Spring break pilot cities: family bookings & spending +300% YoY; ~5x growth rate vs non-family. - Geographic behavior shift: growth faster in less traditional/lower-density destinations than major attractions. - Entertainment flywheel: Entertainment gross bookings +80% YoY; 7/10 event tickets linked to cross-city travel, and >1/3 of travelers stayed an extra night—driving hotel bookings and broader local consumption.