A：Electric trucks have a growing presence in the fleet industry, accounting for over 20% of total fulfilled orders. However, the shift to electric trucks is not expected to significantly alter the capacity mix in the long haul truckload market. Instead, a more adverse energy mix across the truck fleet is believed to benefit the platform ecosystem overall. Electric trucks are most competitive in short to medium haul and local freight operations where they have cost advantages due to lower energy costs and convenient access to charging facilities. In long haul scenarios, electric trucks face constraints with limited driving range and challenges with battery capacity and infrastructure, which means they are not positioned to replace diesel and natural gas powered heavy trucks across this market. The evolving truck capacity is expected to create long-term value for the platform and the transportation ecosystem, allowing it to better fulfill shippers' demand at more competitive rates. The platform's long vision is to become a one-stop logistics platform for small and medium-sized dynamic and fragmented shippers, and as truck capacity becomes more diversified, it will further leverage its pool of freight demand data for optimal match and support truckers with complementary services.

A：The company's strategy for growth and value creation in the logistics industry involves becoming a one-stop logistics platform for small and medium-sized dynamic and fragmented shippers. It aims to leverage its vast pool of authentic freight demand data to match loads with appropriate vehicles and to provide complementary services such as truck leasing, purchasing, charging, and battery swapping to improve vehicle utilization. As battery technologies advance and infrastructure for roadside charging and battery swapping expands, electric trucks are expected to gradually expand into selected long haul use cases, which should allow the platform to benefit from ongoing capacity upgrades and create greater value for millions of shippers.

A：The key growth driver for the second quarter was the continued improvement in fleet order quality and fulfillment efficiency.

A：The impact of the decline in domestic fuel prices on truck demand and revenue growth was not directly addressed in the transcript, but the discussion implies that the drop in fuel prices may have a negligible effect on revenue growth due to the focus on long-term value creation through optimizing truck capacity and fulfilling shippers' needs at competitive rates.

A：Recent governance initiatives include targeted measures addressing misclassified carpooling orders, freight reselling, and low-priced freight listing, which have significantly improved the authenticity of freight demand and fulfillment reliability since the fourth quarter of last year.

A：Refined operations have improved supply demand dynamics by enhancing the tracker credit rating program and the freight payment protection mechanism. This has directed high-quality freight demand and core platform benefits towards truckers with strong fulfillment records, increasing order acceptance among high-quality capacity. Additionally, the freight payment protection helps alleviate concerns about payment defaults and transaction risks, improving fulfillment reliability post-match.

A：The long-haul business remained a key driver for growth, with the network in the AC market enabling a broader online platform advantage over offline channels, which supported high-quality growth and scale. However, the fleet demand and growth of fulfilled orders on the platform were temporarily impacted by the fuel price increase since the beginning of the second quarter.

A：Domestic diesel prices remained elevated from late March to May, dampening shipping demand for low-value, price-sensitive freight. In June, with diesel price cuts, translation cost pressures were eased, which supported a recovery in year-over-year order growth on the platform.

A：The fulfillment rate reached 47% in the second quarter, up 6.3 percentage points year-over-year and 2.9 percentage points quarter-over-quarter. It improved across all major business lines and shipper segments, driven by systemic improvements in capacity allocation, freight demand quality, and match efficiency.

A：The average fulfillment rate among direct shippers exceeded 65%, and the fulfillment rate is expected to maintain a steady quarter trajectory going forward. The company expects to continue refining operating strategies and product mechanisms while integrating AI across the full human and machine process, which is expected to unlock further gains in transaction efficiency.

A：Transaction service revenue grew by 33% year-over-year, driven by the rollout of the network, improvements in for other and incremental contributions from emerging business use cases. The strong growth was primarily propelled by nearly full coverage of the commission network and ongoing ecosystem governance initiatives that improved freight demand quality and fulfillment rates.

A：In the second quarter, progress was made in transitioning the freight brokerage business from a traditional self-operated model to a duolag structure combining self-operated and aggregator operations. A phased approach was taken to transition and optimize the business mix in line with customer needs, reducing exposure to refund risks while meeting shipper needs for compliant VAT invoicing and freight matching.

A：The net cash provided by operating activities reached 2.15 billion in the second quarter, driven by strong profitability in the core platform business, the release of capital previously tied up in the credit business, and efficient working capital management. The high-quality growth of the core business, together with the transition of the private business towards the SaaS distribution model, contributed positively to operating cash flow.