Full Truck Alliance Co. Ltd. Q2 FY2025 earnings call

• In the second quarter, the platform reached a new milestone with fulfilled orders totaling million, a 23.8% year-over-year increase, showing the shift from offline to online operation. - Average shipper MAUs exceeded 3,160,000, up 19.3% y-o-y, and shipper members surpassed 1,200,000. - The order contribution from direct shoppers rose to 53%. - Fulfillment rate reached 40.7%, a new high. - Advanced trucker credit rating and membership program, with active truckers over twelve months at 4,340,000. - Total net revenue increased 17.2% y-o-y to RMB 3,240,000,000, non-GAAP adjusted operating income up 76% y-o-y to RMB 1.23 billion, and non-GAAP adjusted net income up 39.3% y-o-y to RMB 1.35 billion.

In the second quarter, Full Truck Alliance's total net revenue reached RMB 3,240,000,000, a 17.2% year-over-year increase. Transaction service revenues surged 39.4% year-over-year to RMB 1.33 billion. Freight brokerage service revenues in the second quarter were RMB 1,177,900,000, up 1.1% year-over-year. Freight listing service revenues were RMB 242.9 million, up 14.5% year-over-year. Transaction service revenues were RMB 1,327,100,000, up 39.4% year-over-year. Value-added services revenues were RMB 491.2 million, up 12.8% year-over-year. The fulfillment rate reached a historical high of 40.7% in the second quarter. Average shipper MAUs in the second quarter exceeded 3,160,000, a 19.3% year-over-year increase, and shipper members surpassed 1,200,000. The number of active truckers fulfilling orders over the past twelve months rose to 4,340,000, up approximately 9% year-over-year.

• The company expects total net revenues for 2025 to be between RMB 3 billion and RMB 3.617 billion, 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, with an estimated year-over-year growth rate of 23.4% to 9.1%. - In August, the company increased the freight brokerage service fee, anticipating a significant decline in freight brokerage transaction volume from the quarter ending September 30, 2025, which may impact profitability but has limited impact on transaction service business.

• The increase in freight brokerage service fee starting in August may lead to higher costs for shippers and a significant decline in freight brokerage transaction volume, potentially exerting pressure on profitability. - Macro uncertainties in the second half of the year could pose challenges, although the company's leading edge and strong market position in freight matching service and low online penetration provide some basis for optimism.

Q: Regarding the fulfilled orders, what are the key factors driving growth and outlook for the second half and full year?

A: Key factors include user base expansion, optimization of shipper user structure, and product and service upgrades. For the full year, the company is optimistic about continued growth, planning to optimize user structure and enhance service standards.

Q: What are the main drivers behind the growth in monthly active shippers to 3,160,000 and progress of shipper member business?

A: Driven by improved user acquisition efficiency and product experience optimization. Shipper member business saw steady increase in members, with existing members totaling 1,210,000 by quarter-end, driven by membership program enhancements.

Q: Measures taken under the industry self-regulation convention?

A: Strengthened freight rate protection, curbed market-disrupting behaviors, made reporting channels more accessible, and enhanced communication and feedback mechanisms for truckers.

Q: Operational changes after adjusting freight brokerage service and outlook for Nalimba business?

A: Increased fee rate for freight brokerage service, focused on customer communication and retention, with limited impact on freight matching service. Expect consolidation in freight sector to benefit the platform.

Q: Performance and initiatives of entrusted shipment business in the second quarter?

A: Reshuffled entrusted shipment service by discontinuing carpooling and focusing on full truckload, aiming to enhance premium positioning, improve operational efficiency, and create differentiated advantages.