Continues to Penetrate Non-first-tier Cities in PRC and Taps into International Market Offers Diverse Travel Experiences to Develop Into New Generation National Travel Platform

HONG KONG SAR - Media OutReach Newswire - 19 March 2024 - Tongcheng Travel Holdings Limited ("Tongcheng Travel" or the "Company", together with its subsidiaries the "Group", stock code: 0780.HK), an innovator and leader in China's online travel industry, today announced its audited consolidated results for the year ended 31 December 2023 (the "period under review" or "2023"). 2023 Results Highlights with Year-on-year (yoy) ChangeRobust Financial Growth with Revenues Reaching New Highs

• Revenue increased by 80.7% yoy to RMB11.9 billion, representing a 60.9% increase compared to 2019.

• Adjusted EBITDA increased yoy by 117.4% to RMB3.12 billion; adjusted EBITDA margin increased by 4.5 percentage points to 26.3%. Adjusted EBITDA increased by 54.8% compared to 2019.

• Adjusted net profit increased by 240.3% to RMB2.2 billion; adjusted net margin increased by 8.7 percentage points to 18.5%. Adjusted net profit increased by 42.4% compared to 2019.

• The Board recommended payment of a final dividend of HK15 cents per share.

Committed to Penetrating Non-first-tier Markets

• Average monthly paying users for 2023 rose by 39.1% to 41.3 million.

• Annual paying users grew by 25.2% to a historic high of 234.7 million.

• 72.7% of new paying users on the Weixin platform were from non-first-tier cities.

• Registered users residing in non-first-tier cities accounted for 86.9% of the total registered users.

Major Businesses Recorded Strong Demand Rebound, Surpassing the Levels in 2019

• Transportation ticketing services revenue rose by 78.5% to RMB6.03 billion, representing a 33.5% increase compared 2019.

• Accommodation reservation services revenue rose by 61.5% to RMB3.90 billion, representing a 65.4% increase compared to 2019.

• Revenue from others* increased by 148.6% to RMB1,996.7 million, representing a 280.3% increase compared to 2019.

* Revenue from others mainly includes revenues generated from (i) tourism services; (ii) advertising services; (iii) hotel management services; (iv) corporate travel services and (v) ancillary value-added user services. In 2023, Tongcheng Travel capitalized on growth opportunities and outperformed the market with remarkable results. The Group's total revenue amounted to RMB 11.90 billion. Adjusted net profit reached RMB2.20 billion, representing a significant yoy increase of 240.3%, with an adjusted net profit margin of 18.5%. In 2023, the Group's average monthly paying users rose by 39.1% to 41.3 million and the annual paying users grew by 25.5% to 234.7 million. Gross merchandise volume achieved a record high and increased by 96.8% yoy to RMB241.5 billion. Mr. Ma Heping, Executive Director and Chief Executive Officer of Tongcheng Travel, said, "China's tourism industry achieved exceptional recovery momentum in 2023, which is set to continue into 2024. The Group's revenue recorded robust growth to a record high in the year under review, surpassing the same period in 2019. The Group will continue to penetrate the domestic market to gain more market shares. Significant progress has been achieved in our hotel management and packaged tour businesses which will pave the way to a second growth trajectory. Furthermore, the resumption of international market development will bring new opportunities for business expansion going forward." Developing into a New Generation National Travel Platform to Propel APUs to New High To expand its traffic sources, the Group continued to pursue various channels in both online and offline scenarios such as maintaining stable and effective traffic within the WeChat Mini Program and deepening strategic cooperation with Tencent. The Group explored various scenarios within the Tencent ecosystem to expand the user reach and made consistent efforts to refine the operations to enhance user acquisition efficiency. To attract young users, the Group collaborated with Tencent Games and launched e-Sports activities. It also optimized the entry point interfaces on QQ Browser and Weixin Search platform to deliver better user experience. The Group also increased efforts in operating its mini-program on Alipay and explored the potential of the ecosystem. Moreover, it continued the partnership with a prominent handset vendor, offering its users convenient and reliable services for transportation ticketing and accommodation reservations. Simultaneously, the Group persisted in developing offline user acquisition channels. Throughout 2023, the Group was dedicated to crafting marketing strategies with creativity. It initiated a variety of innovative marketing campaigns, such as e-sports games, open-door marketplace and music festivals, to strengthen bonding with younger users. As the coverage of service scenarios expands and users' trust level...