Operator: Ladies and gentlemen, good day and welcome to Full Truck Alliance’s second quarter 2026 earnings conference call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mao Mao, head of investor relations. Please go ahead.

Mao Mao, Head of Investor Relations, Full Truck Alliance: Thank you, operator. Please note that today’s discussion will contain forward-looking statements relating to the company’s future performance, which are intended to qualify for the safe harbor from liability as established by the U.S. Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the company’s control and could cause actual results to differ materially from those mentioned in today’s press release and discussion. A general discussion of the risk factors that could affect FTA’s business and financial results is included in certain filings of the company with the SEC. The company does not undertake any obligation to update this forward-looking information except as required by law. During today’s call, management will also discuss certain non-GAAP financial measures for comparison purposes only.

For a definition of non-GAAP financial results measures and the reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today. Joining us today on the call from FTA’s senior management side are Mr. Hui Zhang, our founder, chairman and CEO, and Mr. Simon Cai, our chief financing and investment officer. We will open the call to questions following brief opening remarks from Mr. Zhang. As a reminder, the conference is being recorded. In addition, a webcast replay of this call will be available on FTA’s investor relations website at ir.fulltruckalliance.com. I will now turn the call over to founder, chairman, CEO, Mr. Zhang. Please go ahead, sir.

Hui Zhang, Founder, Chairman and CEO, Full Truck Alliance: 大家好，欢迎各位参加满帮2026年Q2季度业绩电话会。今年二季度面对充满挑战的市场环境，公司业务展现出了扎实的增长韧性，预约订单达到了6,850万单，同比增长12.7%。业务方面，我们持续深耕用户体验和交易效率，通过加强货物保障的广度和深度，用户满意度显著提升。本季度发货货主平均月活同比增长12.8%，达到了357万人。过去12个月预约司机活跃数也持续增长。全国网络效应进一步增强，订单密度和司机供给双向提升，推动约率同比上涨6.3个百分点，到了47%。同时，成交速度也进一步加快。新业务方面，Qmove海外业务的预约率和预约单量高速增长。零担专线网络覆盖全国，无人小车多城市试点。AI方面，货主AI助手预约率逐步扩大，AI客服全面全场景落地，AI应用进一步深化。

Mao Mao, Head of Investor Relations, Full Truck Alliance: Hello, everyone. Thank you for joining us today for our second quarter 2026 earnings conference call. In the second quarter, despite a challenging market environment, our business delivered resilient growth, with fulfilled orders reaching 68.5 million, up 12.7% year-over-year. Operationally, we remain focused on enhancing user experience and transaction efficiency. By broadening and strengthening transaction protection for both shippers and truckers, we significantly improved the satisfaction across both sides of the platform. Average shipper MAUs reached 3.57 million this quarter, up 12.8% year-over-year, while the number of active truckers fulfilling orders over the past 12 months continued to grow, further amplifying our nationwide network effects. Rising order density and trucker capacity lifted the fulfillment rate by 6.3 percentage points year-over-year to 47%, with median freight matching time further shortened.

In terms of our new business initiatives, Qmove continued to gain strong momentum overseas, with rapid growth in both fulfilled orders and fulfillment rate. We also achieved nationwide coverage for our less-than-truckload offerings through our network of dedicated line carriers and expanded autonomous delivery vehicle pilots to multiple cities. On AI front, we continued rolling out our shipper AI assistants to a broader user base and fully deployed AI-powered customer service across applicable user cases, further deepening AI applications throughout the fulfillment process.

Hui Zhang, Founder, Chairman and CEO, Full Truck Alliance: 财务方面，本季度公司总营收33.8亿元，同比增长4.4%，其中交易服务收入17.7亿元，同比增长33.1%。交易服务收入占总营收比重达到52%，净利润达到13.5亿元，同比增长6.3%。非美国通用会计准则下，调整后净利润达到了14.3亿元，同比增长6%。经营性活动现金流流入达到了21.5亿元，同比大幅增长。公司现金及现金资产总额达到了334亿元。现金储备充分，为公司创新业务落地和长期战略推进提供了坚实的保障。同时，公司将继续通过基础分红回馈股东。展望未来，我们将依托完善的产品矩阵、健康的生态和持续扩大端用户网络体验，深化AI创新，为用户和股东创造长期可持续价值。

Mao Mao, Head of Investor Relations, Full Truck Alliance: Financially, in the quarter, total net revenues reached RMB 3.38 billion, up 4.4% year-over-year. Transaction service revenues grew 33.1% year-over-year to RMB 1.77 billion, accounting for 52% of total net revenues. Net income reached RMB 1.35 billion, up 6.3% year-over-year, while the GAAP-adjusted net income increased 6% to RMB 1.43 billion. Net cash provided by operating activities grew significantly year-over-year to RMB 2.15 billion, contributing to a total cash position of RMB 33.4 billion by end of the quarter. This provides ample liquidity to support the roll-out of new business initiatives and execution of our long-term strategy, and we are committed to continuously returning value to shareholders through quarterly cash dividends. Looking ahead, our comprehensive product portfolio, robust platform ecosystem, and expanding two-sided network give our AI initiatives the fuel they needed. Transaction data at scale across a wide range of practical user cases.

We will continue to advance AI innovation and application across the platform to strengthen our ecosystem, improve the experience for shippers and truckers, and create sustainable long-term value for our shareholders. Thank you all once again. That concludes our opening remarks. I would now like to open the call to Q&A. Operator, please.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you’re on a speakerphone, please pick up the handset to ask your question. For the benefit of all participants on today’s call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. Your first question comes from Ronald Keung with Goldman Sachs. Please go ahead. Ronald Keung, your line is live. Please proceed with your question. We’ll move on to the next question. Your next question is from Eddy Wang with Morgan Stanley. Please go ahead.

Eddy Wang, Analyst, Morgan Stanley: Thank you for taking my question. My question is that given the ongoing fuel price volatility and the rising penetration of electric trucks, do you expect these trends to significantly affect the freight industry’s capacity mix and the competitive landscape? Thank you.

Simon Cai, Chief Financial and Investment Officer, Full Truck Alliance: Thank you, Eddy. This is Simon here. Let me address your question. Our platform data over the past few quarters does show gradually rising penetration of electric trucks, which now accounted for roughly over 20% of our total fulfilled orders. However, we do not expect this shift in the capacity mix to have a material impact on the long-haul full truckload market. Instead, we believe a more diverse energy mix across the truck fleet will benefit our platform ecosystem overall. First, electric trucks are currently most competitive in short- to medium-haul and local freight operations. Lower energy costs give them a strong position at ports, mining areas, and fixed route, short to medium-haul transportation. While some fast-charging and high-capacity battery models can now travel between 400 to 500 kilometers per charge, that is up from roughly 200 to 300 kilometers per charge.

Their economics still depend heavily on fixed routes, high vehicle utilization, and convenient access to charging or battery swapping facilities. Second, the electrification of ad hoc long-haul trucking still face clear physical and infrastructure hurdles. The average shipping distance for full truckload long-haul transactions on our platform exceeds 500 kilometers, and many of these transactions involve cross-regional transportation, variable routes, and uncertain backhaul demand. In these settings, electric trucks are constrained by limited driving range, sparse charging and battery swapping coverage, payload loss from battery weight, and reduced route planning flexibility. As a result, they are not positioned to replace diesel and natural gas power heavy-duty trucks across this market anytime soon. Overall, we believe the evolving mix of truck capacity will create long-term value for our platform. Changes in transportation equipment do not reduce shippers’ underlying freight demand. Instead, they allow it to be fulfilled at more competitive freight rates.

Our long-term vision is to become a one-stop logistics platform serving millions of small and medium-sized direct shippers whose logistics needs are often on-demand, dynamic, and fragmented. As truck capacity becomes more diversified, we can further leverage our vast pool of authentic freight demand, extensive route data, and advanced algo to match different powertrain types with the shipping distance and use cases they are best suited for. At the same time, by providing complimentary services such as truck leasing and purchasing, charging, and battery swapping, we can help truckers meaningfully improve vehicle utilization. As battery technologies advance and roadside charging and battery swapping infrastructure expands, electric trucks should gradually extend into selected long-haul use cases. We expect our platform to benefit from this ongoing capacity upgrade and create greater value for millions of shippers. Thank you.

Operator: Your next question will be from Ronald Keung with Goldman Sachs. Please go ahead.

Ronald Keung, Analyst, Goldman Sachs: Thank you, management, and apologies for the technical glitch just then. I want to ask about the fulfilled order growth was around 12.7% in the second quarter. What were the key growth drivers this quarter? Given that the domestic fuel prices have declined significantly from their late kind of end March highs, has the impact on high fuel prices on road freight demand fully subsided? How do you view order growth over the next few quarters? Thank you.

Simon Cai, Chief Financial and Investment Officer, Full Truck Alliance: Thank you, Ronald. The second quarter order volume growth was broadly in line with our expectations, driven primarily by continued improvements in freight order quality and fulfillment efficiency. First, our ecosystem governance work and optimized user mix continued to pay off. Since the fourth quarter of last year, we have implemented targeted governance initiatives addressing misclassified carpooling orders, freight reselling, and low-priced freight listing, which have significantly improved the authenticity of freight demand and fulfillment reliability. Meanwhile, direct shippers have continued to grow as a share of our shipper base, further shifting our order mix towards genuine shipping demand. These improvements have strengthened truckers’ willingness to accept orders, leading to greater fulfillment, reliability, and efficiency. Second, more refined operations further improved our supply-demand dynamics. During the past quarter, we continued to enhance our trucker credit rating program and freight payment protection mechanism.

We directed more high-quality freight demand and core platform benefits towards truckers with strong fulfillment track records, increasing order acceptance among high-quality capacity. Meanwhile, freight payment protection helped alleviate truckers’ concerns about payment defaults and other transaction risks, improving fulfillment reliability post-match. As a result, the median matching time of orders on our platform was shortened to 5 minutes for the first time, reflecting further gains in matching efficiency. Third, solid growth in our full truckload long-haul business remained a key driver. Fulfilled orders in this segment grew faster than overall platform orders during the quarter on the strength of the supply demand network, price discovery capabilities, and capacity matching efficiency we have built in the ad hoc trucking market. These capacities widened our online platform’s advantages of offline channels and supported high-quality growth at scale.

Fuel price volatility since the beginning of the second quarter temporarily impacted both overall road freight demand and growth of fulfilled orders on our platform. Domestic diesel prices remained elevated from late March through May, in particular, dampening shipping demand for certain low-value, price-sensitive freight. Since June, consecutive diesel price cuts have gradually eased transportation cost pressures, supporting a recovery in year-over-year order growth on our platform. Looking ahead, we remain cautiously optimistic about long-term order growth. Externally, the recent moderation in fuel prices should support gradual recovery in freight demand. Although the road freight market continues to face a challenging and evolving macro environment. In addition, the recent typhoon, flooding, earthquakes, and other extreme weather events and natural disasters across various parts of China may cause some near-term disruption to freight shipping and transportation activities.

Over the long term, we believe online penetration in the long-haul freight market still has substantial room to grow, and we will continue to drive growth in fulfilled orders by expanding our direct shipper base, increasing penetration in the full truckload long-haul segment, and further improving order quality through ongoing ecosystem governance initiatives. Thank you.

Operator: The next question comes from Brian Gong with Citi. Please go ahead.

Brian Gong, Analyst, Citi: [Foreign language] My question is regarding fulfillment rate. Our fulfillment rate hit a record high of 47% in the second quarter. Management share, what was the key drivers in the second quarter? And how do you expect this metric to trend going forward? Thank you.

Simon Cai, Chief Financial and Investment Officer, Full Truck Alliance: Thank you, Brian. Our fulfillment rate reached 47% in the second quarter. That is up 6.3 percentage points year-over-year and 2.9 percentage points quarter-over-quarter, setting another record high. Fulfillment rates improved across all major business lines and shipper segments, primarily driven by systemic improvements in capacity allocation, freight demand quality, and matching efficiency. On the capacity side, effective truck supply remained abundant. Monthly active truckers responding to orders increased by nearly 5% year-over-year in the second quarter, supporting timely order responses and reliable fulfillment. Notably, the fulfillment rate for our full truckload long-haul business increased by nearly 7 percentage points, making it an important driver of the overall improvement during the quarter. Second, our ongoing ecosystem governance initiatives continue to improve freight demand quality across the platform, laying a solid foundation for the increase in the overall fulfillment rate.

In terms of product, further segmentation of our product portfolio enhanced matching efficiency. We resegmented our freight product offering into four clear categories: express, entrusted shipping, general freight, and less-than-truckload, or LTL. Each of them is designed for a distinct use case. Rapid and satisfying short-haul matching, higher quality pricing services, standard matching and LTL shipments through partnerships with dedicated line carriers respectively. Clearer product positioning enables shippers to communicate their transportation requirements more effectively and allows the platform to match them with the most suitable capacity, reducing mismatches throughout the transaction and fulfillment process. From a user mix perspective, fulfillment performance improved across all shipper segments. The average fulfillment rate among direct shippers exceeded 65%, while fulfillment among broker shippers also continued to improve.

This demonstrates that the increase in the platform-wide fulfillment rate was driven not only by the growing share of high-quality direct shippers, but also by organic improvement in order quality and conversion efficiency across a broader shipper base. We expect the platform’s fulfillment rate to maintain a steady upward trajectory going forward as we continue to refine our operating strategies and product mechanisms while progressively integrating AI across the full matching and fulfillment process. We expect to unlock further gains in transaction efficiency. Thank you.

Brian Gong, Analyst, Citi: Thank you.

Operator: Your next question comes from Chen Chin with UBS. Please go ahead.

Chen Chin, Analyst, UBS: [Foreign language] Thank you. This is Chen Chin from UBS. My question is about the transaction service revenue. This revenue continued to grow rapidly in the second quarter, increasing by 33% year over year. What were the key growth drivers, and how do you view the outlook for this revenue?

Simon Cai, Chief Financial and Investment Officer, Full Truck Alliance: Yes, the transaction service revenue reached approximately RMB 1.77 billion in the second quarter. That is up 33% year over year. This strong growth was primarily driven by the full rollout of our commission network, steady improvement in monetization per order, and incremental contributions from emerging business use cases. Firstly, nearly full coverage of our commission network provided a solid foundation for our transaction service business. During the second quarter, we completed the rollout of the commission model across all eligible cities, lifting the commission penetration rate to 94.7%. At the same time, our ongoing ecosystem governance initiatives continue to improve freight demand quality and drive the overall fulfillment rate higher, providing a larger and more reliable base of high-quality transactions for our commission model. Second, refined operations continue to improve monetization efficiency.

We dynamically optimize our commission strategy based on city, route, vehicle type, and user segment. As we advance monetization, healthier trucker economics and the long-term health of our platform ecosystem remain essential prerequisite. Our commercial strategy considers truckers’ take-home earnings, willingness to accept orders, retention, and fulfillment performance. We also improved truckers’ operating efficiency through preferential access to high-quality freight demand, membership benefits, freight payment protection, and operational subsidies. We firmly believe that protecting reasonable trucker earnings is fundamental to creating a sustainable, virtuous cycle between the transaction scale and monetization. As we move forward, we expect transaction service revenue to deliver high-quality, sustainable long-term growth, driven primarily by continued growth in fulfilled orders, higher monetization per order through refined and tiered operations, and the scaling of new business cases.

Operator: Your next question comes from Wenjie Zhang with CICC. Please go ahead.

Wenjie Zhang, Analyst, CICC: Thank you, management, for taking my question. My question is about freight brokerage business. Can you give us an update on the progress of transforming this business during the second quarter? Thank you.

Simon Cai, Chief Financial and Investment Officer, Full Truck Alliance: Thank you. In the second quarter, we made steady progress in transitioning our freight brokerage business from a traditional self-operated model to a dual-track structure combining self-operated and aggregator operations. We are taking a phased approach to transition and optimizing the business mix in line with customer needs and compliance requirements. This enables us to reduce our exposure to VAT refund risks while continuing to meet shippers’ needs for compliant VAT invoicing and freight matching. First, we proactively managed the scale of the self-operated business while further improving its customer mix. Under this model, the platform continues to handle invoicing and settlement workflows, primarily serving shippers with genuine freight matching needs. During the second quarter, invoicing-only customers declined further to a single-digit percentage of the total transaction volume.

Customers that continue to use this model primarily seek an integrated solution combining freight matching with VAT invoicing, reflecting continued improvement in the quality of this business. The take rate for the self-operated invoicing business remained stable at approximately 10% during the quarter. Second, the aggregator model continued to grow steadily, diversifying the underlying risk across a larger base. Under this model, invoicing and fund settlement workflows are handled by qualified third-party partners, while our own platform focuses primarily on matching freight demand with truck capacity and charges a low single-digit channel service fee. Beginning in the second quarter, the associated revenue was recognized under freight brokerage business. This asset-light model significantly reduces the company’s direct exposure to VAT refund, settlement, and operational risk, while keeping shippers and their freight demands within our platform ecosystem.

Going forward, we will continue to manage a smooth transition between the self-operated and aggregator models. This will enable us to meet shippers’ compliance demand, deepen user engagement, and better support and reinforce our core freight matching business. As the asset-light revenue contribution from the aggregator model gradually scales, we expect the revenue mix and overall earning quality of the freight brokerage business to improve further. Thank you.

Operator: Your next question comes from Ritchie Sun with HSBC. Please go ahead.

Ritchie Sun, Analyst, HSBC: Thank you, management, for taking my questions. I want to ask about the operating cash flow, which was RMB 2.15 billion in the second quarter. It’s been very strong growth. Thank you.

Simon Cai, Chief Financial and Investment Officer, Full Truck Alliance: Thank you. In the second quarter, our net cash provided by operating activities reached RMB 2.15 billion, while free cash flow totaled RMB 2.04 billion, reflecting strong cash generation across the business. This performance was driven primarily by significantly improved profitability in our core platform business, the release of capital previously tied up in our credit business as it transitioned to a new model, and efficient working capital management. First, the high-quality growth of our core business further strengthened our organic cash generation. Core platform businesses such as transaction services are not only growing quickly but also benefit from an asset-light model with short cash collection cycles. As these businesses contribute a growing share of our revenue, our revenue and profit mix is becoming increasingly weighted towards businesses with higher cash conversion and significantly reinforcing the core business ability to generate cash organically.

Second, we continue transitioning our credit business towards an asset-light distribution model, reducing the deployment of our own capital for new loans while gradually recovering capital from the existing loan portfolio. The resulting reduction in capital tied up in this business contributed positively to the operating cash flow during the quarter. In addition, we maintained stable collection and settlement cycles and managed our working capital efficiently. Given the inherent asset-light nature of our platform model, rapid business expansion does not require a corresponding increase in capital deployment, providing further support for our operating cash flow. Looking ahead, our cash flow may fluctuate from quarter to quarter due to the timing of business settlement, tax payments, and changes in working capital. Nevertheless, as our revenue mix continue to shift towards higher-margin asset-light platform businesses, we expect our long-term cash generation capabilities to strengthen steadily.

Operator: That concludes the question and answer session. I would like to turn the conference back over to management for any additional or closing comments.

Mao Mao, Head of Investor Relations, Full Truck Alliance: Thank you once again for joining us today. If you have any further questions, please feel free to contact Full Truck Alliance directly or reach out to PSNT Financial Communications. Our contact information for IR in both China and the U.S. can be found in today’s press release. Have a good day.