On August 30, Dida Travel released the financial report for the first half of 2024: In the first half of the year, Dida Travel's adjusted net profit reached 0.13 billion yuan, a year-on-year increase of 51.3%. The total number of registered users is 0.368 billion, and the number of certified private car owners reached 17.7 million, a year-on-year increase of 17%.

On September 2, Dida Travel held the 2024 mid-year performance conference. Song Zhongjie, Chairman and Chief Executive Officer of Dida Travel, and Chief Financial Officer Jiang Zhenyu shared the company's operating conditions and future prospects for the first half of the year, and answered related questions from investors and analysts.

The following is a summary of the 2024 mid-year performance conference of Dida Travel.

Song Zhongjie: The second half of the year and the future development will continue to focus on several areas.

In the first half of the year, in a highly challenging external market environment, Dida Travel maintained high-quality growth and achieved a substantial increase in profit levels. The overall revenue exceeded 0.4 billion, a year-on-year increase of 2%. The overall adjusted net profit reached 0.13 billion, a year-on-year increase of 51.3%. This fully reflects the superiority of our light-asset model and the steady improvement in operating quality.

In the first half of 2024, our business cooperation continued to make further progress. We signed a strategic cooperation agreement with DingTalk, a leading domestic enterprise intelligent office platform. In the future, the two parties will work together to create a carpooling product for a large professional user group and commuting scenarios, providing more travel companions for domestic workplace professionals, and offering more economic, low-carbon, and green travel choices in daily commuting, business trips, and more.

Looking ahead to the second half of the year and future development strategies, we will continue to focus on the following aspects:

First, we will continue to improve the operational efficiency of the company. Our overall operational strategy is to price based on the supply relationship on the line and compare it with other operational methods, dynamically adjust the price and incentive intensity of carpooling on the line, improve the certainty and response rate of carpooling trips, discover more carpooling opportunities for users, and meet the travel needs of different users.

Second, we will continue to enhance the safety features and ensure safe travel by algorithmically identifying and monitoring risk scenarios.

Third, we will continue to seek in-depth cooperation with partners who share our philosophy and have a good reputation, and expand the user base through multiple channels. We will combine the advantages of our partners and fully explore the potential needs in various business scenarios to meet the travel needs of different users in different situations.

Fourth, we will continue to focus on optimizing the user experience and enhance user stickiness and value through various means. This includes providing diversified after-sales services to a large number of private car owners, ensuring that users can enjoy high-quality and reasonably priced after-sales services through reliable partners, and providing more convenience and security for users' travel.

In addition, we will actively explore the field of carbon emissions trading, as carpooling naturally has inherent carbon reduction attributes. In 2021, we jointly developed carpooling carbon reduction group standards with China Classification Society and Bao Carbon. Next, we will actively promote the implementation of carbon trading in local carbon trading markets and the national carbon trading market.

Question: What is the strategy for future growth of Didi Chuxing?

Song Zhongjie: Based on the current market situation, we have timely adjusted our customer acquisition methods and further improved our ROI. In the future, we will focus on the line as the dimension for pricing and operation. By focusing on the line, we can not only optimize pricing and operation, ensure better service to meet user needs, but also launch different products based on the different characteristics of the line.

For example, the recently launched station-based carpooling is a lower-priced product for users. In the future, we will also launch a product for acquaintances to prioritize sharing rides.

In terms of user growth, we have also been actively cooperating with third parties. From last year to the first half of this year, we have successively reached cooperation with Tencent, Baidu Maps, and DingTalk. At the same time, we are currently pushing for cooperation with other major internet platforms, and will synchronize everyone when they go online. So, in addition to acquiring customers through our own channels, we can drive growth through third-party cooperation, and use multiple channels.

At the same time, we have also explored some new methods in user growth, such as focusing on specific scenarios and user groups, such as college students. We have also utilized airport outdoor media to launch innovative advertising formats combining brand and performance to enhance brand awareness and drive user growth.

In addition, carpooling is a nationally recognized low-carbon travel method. In 2021, we cooperated with several authoritative institutions to launch the carpooling personal carbon emission reduction group standard. Next, we will actively promote the faster verification and trading of personal carbon emission reductions from carpooling on exchanges, in order to further reduce passenger fares and increase driver income.

So, in the future, we will go all out to drive growth.

Question: Does Dida have any plans to reward shareholders in the future? Such as dividends or share repurchases?

Jiang Zhenyu: We do have this plan. Whether it's dividends or repurchases, both are important indicators of a company's financial health and profitability. Our current operating situation is very good, cash flow is very ample, and the balance of funds on the books is also quite large.

This year's successful listing has also helped us to further build up our cash reserves. Currently, we have 1.66 billion in cash and cash equivalents, and after deducting 0.65 billion for user withdrawals and other accounts payable, the company currently has a net cash of 1 billion yuan. In the future, we will continue to explore and seek further development in the travel industry full of opportunities.

So in the near future, we have the ability and willingness to distribute dividends or repurchase shares, and share the company's operating results with shareholders.

Question: Now the self-driving cars field is very hot, how does DiDi view the impact or opportunities brought by self-driving cars to DiDi's business?

Song Zhongjie: I believe that society is driven by technological progress. The self-driving technology and Robotaxi will definitely improve the overall travel efficiency and solve some of the current problems in the travel industry.

So, in terms of technology and approach, the self-driving technology and Robotaxi have a huge promoting significance for DiDi's development. For the ride-sharing business, when the self-driving technology becomes more commercialized and popular, we will see drivers letting self-driving cars drive themselves during their commute and still share empty seats with passengers along the way. When they arrive at the office, during the 8 hours between work hours, they can lease the vehicle to DiDi's platform for commercial operation, allowing drivers to gain additional income.

I believe, based on our platform's long-term cooperative relationship with 17.7 million drivers, there will be a stronger foundation of trust. At the same time, based on our rich operational experience, it is easier to jointly build this new business model.

Robotaxi technology may arrive earlier than commercialized self-driving. Now, looking at our second product line, the future of the taxi rental, in fact, is to build a new integrated mobile travel method based on the current taxi system, which naturally seamlessly connects with self-driving vehicles.

So, we have already started researching, exploring, and laying out how Robotaxi can be applied in the new taxi rental area. We are actively working on this, and hope to report progress at the appropriate time in the future.