Trip.com Group (TCOM) Investor update summary

Regulatory decision and compliance response

• Received and accepted the administrative penalty decision from the State Administration for Market Regulation, concluding the antitrust investigation and committing to full compliance with regulatory requirements.

• Emphasized the milestone as an opportunity to refine the operating model and align with evolving regulatory and industry standards.

• Strengthened antitrust compliance management, including enhanced compliance committee roles, self-assessment mechanisms, and company-wide training.

Operational and strategic adjustments

• Discontinued Tier 1 and Tier 2 delegated distribution programs, transitioning to a new multi-tier partnership framework for greater flexibility and transparency.

• Voluntarily decommissioned automated pricing tools and enhanced pricing management to foster healthier competition and value creation.

• Optimized platform rules for partner transparency and streamlined promotional activities to reduce complexity.

Financial impact and outlook

• Will recognize an expense of CNY 5.179 billion and a counter revenue of CNY 122 million in Q2 due to the penalty.

• Operational adjustments, including discontinued pricing tools, are reflected in Q2 guidance; further financial fluctuations may occur as changes are implemented.

• Long-term growth expected to be driven by global expansion, product quality, and innovation, despite near-term macro uncertainties.