Full Truck Alliance Co. Ltd. (YMM) Earnings Call Transcript & Summary

Dear investors and analysts, good morning. Welcome to our Investor Day event hosted by Full Truck Alliance. My name is Simon Cai, Chief Financial Officer of FTA. [Technical Difficulty] Our customers are more diversified in the personalized service and we have leveraged our investment in technology and research and development, focusing on AI and big data. And we believe in our users and the stakeholders' trust and the support of [indiscernible]. In the future, we will continue to strive for excellence by delivering topnotch services [indiscernible] and maintaining robust financial management. Many of you have engaged in the substantial discussions with me and our Investor Relations team. And today, I want to dedicate today's precious time to an in-depth discussion about our business with you and other company management team members. And this will be split into 2 parts this morning and will focus on management insights with Mr. Hui Zhang, the Founder and Chairman and also the CEO of FTA who will share valuable insights into our journey and revisit our mission, vision and the driving forces and will provide an outlook on our long-term strategy. After that, Mr. Langbo Guo, the President of for Full Truck Alliance line will guide us in understanding the changes in development trends in the road freight transportation industry and outline our focus on operational strategy for the next phases and [indiscernible] of the future [ that the financial team ] will have and the concessions with our investors and analysts. Finally, we will just allocate with some of our tour and also the lunch break, and we will have the share of users [indiscernible]. And we will invite Mr. Wang Zhenghong, our Chief Career Operation Officer (sic) [ Chief Customer Officer ] to share with us. And before this event, I'd like to remind everyone that we have many forward-looking statements today, and we know that forward-looking statements are subject to risks and uncertainties that may not necessarily materialize in the future. And we have live streaming to the Investor Day event. And after that, you can also just watch a replay of today's content at our website. Ladies and gentlemen, without further intro, I'm going to give the floor to Mr. Hui Zhang, the Founder, Chairman and the CEO of FTA to give us a speech. Welcome.

Dear investors, analysts, good morning. My name is Zhang Hui. It is my good pleasure to meet all of you in this cold autumn. Currently, we have been quite familiar with our investors. We are a listed company. Actually, I don't know what are the [indiscernible] and doubt of our investors. But today marks the 2023 Investor Day. We're going to -- what is our [ rational heart ]. I want to share with you some of my feelings and insights. We have established this company in 2013. During that time, the name was Yunmanman. Also, in 2013, we have the mobile internet, which has aroused the great interest of our people, and we know that we have an [indiscernible] our business startups and innovation. Some of our colleagues are mentioned as the second level of the market, and we're just going to [indiscernible], maybe half of them are doing their own business. For me, myself, from the year 2004 and 2005, I worked for Alibaba for many years. And then I was inspired by the business entrepreneurship and then I just get started into the mobile internet. That time, the name was Yunmanman. And currently, our listed code was YMM. And from the very first beginning, when we're just doing this kind of thing, we have a lot of the achievement. First of all, we just go back to the [ Chengdu ] and also I was pretty [ shocked ] at the time. And I just listened to some of our video clip. And due to the timing of our transaction [ are very small ], we don't know which is the very first, original transaction. We're just going to the transaction boom. And there are people [ mumbling ] and people seeing, and there were a lot of the drivers and the truckers and a lot of the shippers, and there are thousands of the trucks standing outside of the [ box ]. I have never known there's such a huge market, such a huge kind of freight, the trucks. There was a question, what's going to be my expectations? And during to that time, we just mentioned that a lot of the truckers, they are working at some of the [ blackboard ] information, for example, right in the whole Chengdu and Sichuan and, for example, like the [indiscernible]. They have a lot of ports. Well, right in the Wuxi and Nanjing, they have a lot of them. For every province, there will be 2 to 3 times. Well, a lot of the truckers, they have watched Chengdu and entered this kind of transaction and watched the information for [ a thousand miles ]. But I think that they will be delayed and they are just wasting a lot of time. This is highly relevant to the location. And a lot of these trains and the truckers, there will be empty for many years. Or when they just come to this kind of market and for every night, they will just charge for several hundred and also they are sleeping altogether. And for every accommodation, it will be RMB 20. But we know that, for a lot of the trucks, they will be charged for RMB 100. So that is a huge pain point. I think that this is unreasonable. After that, I just -- it came to me that maybe we will translocate our off-line information right on the online. Well, actually, this is not so easy. For our off-line information, especially for a lot of the users, habits have been deeply rooted into the ground, a lot of the truckers, and they just get used to that [ right in the park ]. A lot of the investors may say that you cannot fulfill that. This is about the change of the truckers' lifestyle, the habits. Well, actually, we know that there are a lot of beverage and a lot of entertainment and many kinds of [ fuel ] services right here. But we believe that this will just change the efficiency. This will really leverage the efficiency from that time on. So we will just get started in the application. And we do not have only one trucker and one shipper, one agent. And due to the time, and we are just right into some of the parking lots, and we just [ slept ] with them, and also we just accompany them. For some of our employees, this just recruited right in the Shandong, Hunan. And also, we just allocated too all over China due to the timing for a lot of the parking lot gradually. And we have done some of our things and we just [ accumulated ] with many drivers. There are a lot of people right here, and we just relocated some of the truckers and the shippers [ right on ] the application. So it was [ relying on many force ]. We translocated into some of our application from the year 2013 into the 2014 and 2015. Well, actually, we have really seen that there are some of the information. Well, actually, we cannot just retain some of the users and also our drivers. Well, actually, we have analyzed many times, we do not know some other things. And up until the year 2015, it was sudden and a surprise that we just [ returned ] our users. There are some of the points [indiscernible]. From 6:00 in the morning, we'll get started upon this allocation of our freight or we just declare about the information in [ writing ] on the 7:00 for the truckers, and they have just communicated with some of the people. They just want to relocate and also just fill in the freight. Due to the -- afternoon, they will just relocate to some other places. And sometimes, we just get a lot of this freight right in the afternoon or in the evening. So we believe that this -- the morning marks the golden time. So we just want to fill in some of the supplement times. So we just get started from the afternoon and the evening. And then from that time, we are willing to put it down to the application. And sometimes, we'll just watch about this new information, and they are willing to just accept it with more information. In that time, sometimes they will just negotiate with a lot of these business entrepreneurs. We know that for the evening, the truckers, when they're just going for drinks or they will just prepare for sleep or they're just brushing their teeth, we have found about [ some of the tips ], well, actually, and we just retained a lot of our shippers and owners. So from the year 2015, our Yunmanman has just get started on business. And in 2016 and in 2017, we knew that for this whole market, we have the 2 largest platforms in Yunmanman and Huochebang. They just get started from the year since the parking lot. In 2016, in the Yangtze River Belt in the South West, we just gathered information right on these 2 platforms. And after that, in 2017, in November, which just cooperate with each other. And currently, we [indiscernible] the full truck lines and we just incorporated with our 2 companies. From the year 2017, for all of our shipment and also for a lot of the freight lines, this has been just incorporated with each other. And we just matched up all of our information. We just reviewed our development history. For example, from our assembly, and also to our freight and loading, and from our parking lot, we just translocated and just transformed with each other. So the era of the blackboard information has gone. From the year 2018, we are facing the major platform -- the problem. Previously -- and we know that for the shipment, it will be around this RMB 4 trillion, and this has been quite a hot button topic. And people are accepting this hot button topic. But in the year 2018, they were just quite calm, and we just incorporated with each other, especially for a lot of investors, before the -- major challenge are available to realize the closed loop, these orders. For example, in all of these orders, what is your business models? Prior to 2018, actually, we have no income. We have no specific business models to address the problems of shippers and the truckers on the platform. And to get more truckers and shippers on the platform, by 2018, we started to consider how to have the closed loop of those orders because the Yellow Page model will have a very limited marketing space. And also, we were very confused because we were thinking about the way out because we had been aware that even up until today, there was no successful cases about the transformation of the Yellow Page platform to be a full platform for such truck growth. However, we are successful in this regard. And it's very hard to transform those parts like the traditional Yellow Page model to be transformed into the long-haul transportation model. And the pricing, the service and the goods [ and the way of course ] into the regions are all nonstandard. How could we standardize those sectors? Those are also our considerations. First, we have reestablished the ecosystem. For example, for the shippers, seldom do we receive the payment for good delivery, and previously, across all the platforms, we used to have some regional websites and platforms. Actually, we do not charge for the goods. Nowadays, this [ tax ] were collected by [indiscernible]. And from the slide, you will see we have returned more than 2 million shippers and also more than 300,000 members. And we firmly believe that now that we provide the value, it should be charged. Also, such 700,000 of members are also our treasures. Also, the contract extension rate is very high. Also, we have the high-frequency members. And also they may go into the low-frequency members, and the retention rates and the extension rates are also very high. And therefore, the [ cost of ] delivery, we have the [ 5 billion ] for those goods delivery per month. For the financial goods and the truckers, we have also empowered those shippers and the truckers in terms of the finance. And also, we have the 170,000 orders in insurance. And also, we have [ 410,000 ] ETC truckers. And also for the insurance for truckers and shippers at risk, it has already reached around 600,000. And this is [ pure sided ] ecosystem in this platform. Then for the closed loop in the business, also we have some initiatives. So first, we have discovered that sometimes the shippers and the truckers may not honor their promises. That is why we have the proprietary and the unique order model. Also, the shippers need to pay a certain amount of the payment. Also, we have formed the industry standards because, without any down payment or the prepayment, the truckers and the shippers may not feel settled or think regarding this order. With the down payment, we will have certain amounts of the guarantee and also the amounts will be insured. And after a short time period, we found that many [ middle ] information and disputes may arise. Also, the nonstandard orders are unknown to us. That is why we have provided the contact numbers under disguise for the shippers and the truckers so that both sides could have the exchange. And this is why we have provided the safe model for such exchange and transaction. We have discovered how to half the prices on the platform via the tap-and-go model, and the 50 percentage of those orders are actually concluded via this tap-and-go model. Also, we have the all-around guarantee to solve those disputes to help truckers and the shippers to solve those disputes. And thanks to those closed loop orders and these different solutions, we have the online transaction, online service and online exchange. And finally, when the opportunities mature, we have propelled those fully [ pledged] models. And actually, we have prepared this model throughout the year, from 2018 onwards, and this is a progressive procedure. And up until today, 2/3 of those orders are in the process. And also we have a very high income. And also, we have the commission, and the supply-and-demand ratio should be further improved. And so those revenue are from the orders at hand and from the Yellow Page to the information, to the commission, it has processed throughout the 3 to 4 years and marking multiple milestones along the pathway of our evolution. Prior to IPO, we were also asking about how is the take rate. And now the take rate is up to 60 to 70 percentage. And then many of the milestones and the great events have already been realized because they have the assurance. These were the milestones from our past to the IPO. Also, we are subject to many safety investigations. However, we have got very good results. And also we have been rejuvenated since 2022 in awards. However, we are confronted with some new challenges. And when we have realized the commission -- the take rate is [ 1.4 ] to 2 to 3 percentage. So in the future, what is most important for us? What is the future direction? Some new challenges also emerge. There are 3 main directions. The first is to go deeper, to dig the well deeper. And the well is very deep, and the long haul for trucks is fulfilling. So what are the main 2 directions, which may be resourceful? One direction is we believe that the low-frequency direct customers will bring more customer bases and also the incremental orders. That is why we have provided the premium truckload service from the year before 2022. And also up until now, we have 20,000 orders sourcing from the premium truckloads. And this is [ appraised ] from the platform and that will have more response -- a higher response rate and also provided with the premier high-quality truckers, targeting the low-frequency direct customers. And also, we have another [ CNY 3 trillion ] market where we are trying to locate the breakthroughs. And this is the overall raise in tax and the vertical [indiscernible]. For the rest of service, we needed to go deeper and also go wider. And therefore, they were sub-serviced. We used to have a long-haul truckload platform. And in 2021, we have acquired another [ Chengdu ] truck platform, which was catered to the short route business. And also, we started to explore those short-route truckload businesses, which is also meeting our short-term expectations and also for the LTL, LTL trucks. this is the largest system nationwide. And also, we were exploring the ecosystem further. And also, the less than truckload business, [ cars, the airport ] and the [indiscernible] truckload businesses, which are also developing very fast. Meanwhile, for the core channel [indiscernible], we started to finance this sector, and it's valued at RMB 2 billion, because of the questions, is there independent trucks targeting the different customers and the differentiated demand? And also, we have acquired a business for such less than truckload and also for the rest of services. And we have picked out the differentiated demand for different customers. So for the intelligent service, we leverage the AI for the empowerment. And also, we will share with you the results from the intelligence empowerment. For the on-land driving, we are also the largest shareholder for the intelligent business. And also, we will go deeper as to how to implement the on-land driving scenario. And with that, I'd like to go to our mission. When we started our business, the mission was our benchmark, the standards. We need it. We needed to have such a mission to start. However, nowadays, we are mission-driven company. If we could reach [indiscernible], still, if we couldn't be a mission-driven company, I do not believe that the company will go longer, will be greater. And after our thinking, I think our mission is to empower our businesses, to meet our expectations and also to stand out in the competition. And so here are the 2 keywords. The first is the empowerment. The second is the businesses. And we are firmly upholding the platform to serve the businesses. And those businesses are our main targets and also the main [ body ]. And up until today, in China, the production cost is [ squeezed ] and the logistic cost is also very high. How could we hold the businesses to the improved efficacy in the logistics sector and to be more competitive at an even lower cost? This is our main issue, so how to cultivate the talent and how to have a better structure. And as a mission-driven, it's to drive the overall structure, the overall talent structure and to push forward the strategy. Our mission -- our vision is to drive forward the [ rest of ] the service platform. And we have such an [indiscernible] regarding the long haul and the short route. In the future, will have more segmentation and with better work in each of those trucks. And therefore, the fundamentals, the platform is working very solidly and robustly. And for the [indiscernible] users, the orders are still on the road and also deducting the loss to customers. Actually, our customers are still on the rise, and the platform is working very steadily. And also, the space is very immense, CNY 10 trillion for the short-route transportation and also CNY 4 trillion for the long-haul truckload. The space is very promising and very enormous; and also our acquired users, we shared with us about their insights into the future tendencies and their practices. And lastly comes the policies, also one of our major concerns. And the policies are more and more positive. In particular this year, I have a feeling that from the national policy and into every province or municipal city, for the platform technology or platform economy, I can still think that for many people, they will have a lot of the support. Well, actually, we know that for this trend, and then what will be quite prevailing, I think that we won't change the policy, well, actually, for many investors and I think for some of our liquidity and the era just gone. So our policy are very favorable. But I believe that the potential will be very promising. So last, thank you once again for your support. We have a lot of the difficulties, and we just [indiscernible] this kind of industry. For me, myself, and my team, we are quite confident that we just empower with the Chinese enterprises and by the logistics, and we can have a very good result. Thank you.

Thank you, Mr. Zhang, for your very wonderful sharing. Ladies and gentlemen, we're going to take a 5-minute break, and we will come back at [ 10:05 ]. We have prepared the refreshments in this value. After that, we're going to give the floor to Mr. Guo Langbo, the President of FTA, to share with us about the strategic position and also our expectation about the future. Thank you so much. See you later. [Break]

Ladies and gentlemen, we have the live streaming, so we will continue on session. And we got only 5 minutes to break. Actually, I have seen that you have a very hot button topic with our Mr. Zhang. Next, I'm going to give the floor to Mr. Guo Langbo, the President of FTA to give us a speech.

Dear investors, analysts, good morning. Just now, Mr. Zhang introduced about the strategy, our development history and the future strategy. Next, I'm going to share with you some of our very detailed business strategy and also for our industrial layout. On the one hand, as an enterprise, I believe that the growth and -- for the profitability development problem topic for FTA is one of the leading enterprise in terms of this road freight logistics. And what is the question? Why exactly we can't gain growth? Actually, I think that we need to have two answers and they're very good. On the one hand, we have this very high selling, and we have CNY 10 billion and also with this CNY 10 trillion for this market. Second, we need to meet our users' requirements. Well, actually, for me, myself, I believe that we -- if we can just meet the requirements, we're going to have a lot of different parts. And based on this two points, I'm going to have a very good development. On the one hand, what about the capacity of it? From this relative freight, for logistics, it will be RMB 7 trillion. And also, for our rail and also for our shipment, it will be -- going to RMB 1 trillion. And for our transportation, it will be RMB 1.5 trillion. After that, we have this RMB 4 trillion, which we'll put into logistics and warehouse and storage. And we have this RMB 12 trillion. This is a huge market right in China. We believe that logistics is some of the infrastructure to support about our economy. When this RMB 10 trillion run in China, it ranks the very first. And we know that, on the one hand, retailing is very good. And also second, about the finance and also about the logistics. And on the one hand, we know that with over RMB 10 trillion, we know that right in this freight, with this RMB 1.5 trillion and also with this RMB 5.5 trillion and for this LTL and also for the FTL, we know that for some of our logistics, we know that for a lot of these big company, they just invest into this part. Actually, we have a very fierce competition, for example, like the -- and also for the [ Shunfeng ] and also for [ Tainan ] and for the [ JD.com ]. They have put investment into these logistics. We have focused on FTL and LTL. Well, actually, we know that we have [ summed this ] permanent and also for a lot of this urgent utilization in this market with this RMB 3 trillion and the RMB 3.5 trillion with the logistics. And we know that for some of these retail orders and with this road freight, we know that this is about the sum of our [indiscernible]. Well, actually, this is about this very big space. Well, we believe that we're into this kind of the transition, and we can have fruitful achievements. Actually, with such a huge market, which is very good competition market, how can we just strive for growth? On the one hand, we need to know their needs. And the second, we need to meet their needs. And after we just met their needs, we'll just transfer from online to -- the off-line to the online, and we'll just have a continuous development. On the one hand, what about the [ realness ]? Well, actually, previously, for our resources, we'll just get started from the 2 types of the enterprises. On the one hand, SMEs, for example, like the retailers and also for a lot of the agents and also we are coming from the KA, for example, with this very huge market. And they just control this freight and also they just get started this commercial logistics. And we know that for the logistics industry for SME, they will just find the trucks by themselves. We've got 2 types. And on the one hand, we can have some of these very urgent needs, for example, like applying a [indiscernible]. Well, on the one hand, they will just fund for some of the temporary once and, for example, they will just find the deposit agent. So this is about the SME. And they will acquire the trucks by agents or by themselves. For the key accounts, the factories, they will have the bidding. For example, according to the freight, for example, like the road and also for a lot of the different projects, they will just have the bidding. For example, they will just have the purchase by the year and also they can have the register and also for the contract fulfillment and they have lots of agents. What about the 3PL? When they just scan these orders by the bidding, they will have this very permanent needs, for example, like the beer. And every week, we just send the beer to their retailers or the distributors. After that, you would just find it at the back of these very small trucks or the logistics who will just act on that. But actually, there were a lot of changes on that. And some of the unmet needs were coming to the agents, to the temporary market. This is about our [ realness ]. We just come to this kind of things -- what about the supply-demand? The core [ consent ] is that we will just have this very huge market and also they will be faster and also cheaper. On the one hand, it's going to be about the strong demand market. And actually, we have this 4 [ gears ] on the one hand, and we had different car types and also different models and the different lines or different models. And we just want to meet their needs, and we have some on the continuous growth. So actually, we have a lot of the truckers and shippers actually. And for some of our conversion rate will be increased by 14%. And also, we have a lot of the truck types. Just now Mr. Zhang has mentioned that running this, we have over several the -- over 10 cities coming from the medium sized for our trucks and the vehicles and also for our 9.6 meters trucks and also for the 13 meters and for our trucks and also for this 90. And we got huge plenty of -- we have plenty of trucks. And for example, like the coachings, also, we have a different -- there's a high such price and also [indiscernible] and also for this [ negating chance ] and point, et cetera. And we have different types and which was allotted by the users. And part 3, we have different lines. I just want to elaborate more on this part. In China, we have 3 major cities -- 300 major cities with over 130,000 in our lines. And for every -- the daily base will be over 90,000. And also for this monthly base, it will be 130,000 in this garden. And for example, from Beijing into Shanghai, vice versa, we got a lot of this [indiscernible] Each factory for their users and coming from all directions, no matter what kind of the ratings that were, we can just fund it. Well, actually, we know that we have a lot of the support and we just want to find about this all this one, for example, the [indiscernible] platform. So from the shippers and also for the users, and they can just fund it from all kinds of these models. And for example, they cannot know it. For example, like lot of support, for example, we can have some one-stop service or just negotiation of price. And with the support, this could and we can have more and more selection with it. So for our off-line needs, this will translate which is the online. So we will know that on [ logic ] replacement, with these offline market -- this on offline market. And for example, like also this ones and, for example, there were more specialized lines. For every owner and read into one of the -- maybe several derives, but right for our platforms, we have thousands of online commercial with this different millions of our truckers. So that's why we believe that with many kinds of this needs, and which is [indiscernible] to run this offline to online. Second, we just want to do it pretty well and we are quite direct on the 3 ways on the one hand, and we just have the very fast speed. And we have very a fast freight. And second, we have the quick the risk base and also is a very quick transaction. And we have our own net with this 1.5 minutes. And we believe that this is very good. Well, actually, and we have this very good location. I don't know that you have even just utilized the 4 allocations. And we know that with the different ports, for example, like the deliver goods and for example, like these times or the transaction premium and with the time and also for the price of it, we have all kinds of information with that, and we just want to increase our accessibility. The second, we need to have a very quick response. -- several minutes, and we will just have got the [indiscernible]. For example, our response will be around 3 minutes, and we have a very fast development in the 3 big spend. And third, and we have very good response and also for our transaction and for each order will be finished within 14 minutes. So with this very quick response, and we just see a lot of change for a lot of these owners. And we just funded about to some of this course and this is about this one part of it. We can have the very fat the response and also for the feedback, and we just want to reach our efficiency. Time is money. Well, actually and we believe that we can have a very huge and very long lining. And third, and we tend to have a very good development. And we're going to focus on 3 parts. On the one hand, we can just meet about this online transaction. And for example, like some of these orders or the [indiscernible] and we will cover by the [indiscernible] for each scenario, and we got the strategy. And for this honor, -- and we are quite confident and we feel quite safe about our service and also for every driver and trucker. And we have the 3 certificates and 5 certificates. And we've got a very good accessibility. And with that, we can just compliant with them. And also into this part and from the end to end transaction, we just want to have this quality control system. And with all kinds of the service market partly, and we can have the assurance of it. For example, like this 688 and for our contract to has been over 50%. And also for some new transactions will be over 30%, which has gained this 10% year-on-year growth. And finally, about this approval. We're talking about this approval, and this is about this very important part, the cost effectiveness. We need to just lower down the cost. And based on our previous 3 advantage, and we just want to have a very good development. And we know that these logistics is very important, we need to seek more money. On the one hand, for the professional owners, for example, like the 3PL and also for global logistics and also for the safe and information. And we know that it online, and we just want to compare with this under price within 30 minutes, and there will be about the support change in this regard. And we know that with that, we can just negotiate with them all, and we can just find most cost effect in the effective one. And also, we can just compare with the price with it. And with that, we can just want to increase their competitiveness. Second, for our direct sellers or the owner, we have a very transparent price. So actually the price is very good, and we can just avoid about this middle or the middlemen or the brokers as such. Because it is pretty component and faster into the regiment to the customer retention are quite good in the Q2 and for this 12-month retention rate is of over 80%, actually, 82%. These were several reasons why we just want to have the route. We just want to meet our users' requirements. And we just want to focus on these 4 counters, and we will have more selections and the second, the faster and the cheaper. We know that we are just replacing with these offline transactions, and we have gained the very fast development. So in terms of the temporary and on-demand around this [indiscernible] . And this year, with over the 300 billion with the 10% penetration rate. And actually, and we have very good development running the on demand market. What about the 2023 first half for our online orders has gained about this average rate. Actually, for us and we have gained 33% for this Q1 plus Q2 for trans economic growth will be 5.5%. We're talking about this, our growth rate and our Ministry of Transportation, and this is about the real demand, which has gained us 7.3% and for the real economy or looking behind with this turn and we have the very fast development around the tertiary industry, which is higher than GDP growth. And for our FTA and we have gained the 33% this year, we have perfectly verified with some of our needs with this 4 caters. We continuously replace with our offline orders that's why we just want to have a very fast development. And we believe that company just have the fast development. So from an internal needs, how can we just gain growth? Well, actually, these are the ratings. We're going to focus on these 5 directions and the 5 countermeasures on one hand to the production lines and the second is about algorithm and the third, operation and fourth infrastructure and the fifth, the branding. With these 5 countermeasures and we just put down to the ground, and we will just acquire with these values or with some of them. And with this kind of port and we can just push forward with the orders. With these 5 countermeasures, we can have a lot of this ways, for example, we are just continuously developed, they did. And for example, if we have a lot of these ones and, for example, like this very streamline and also for information on how direct to sell it. And we just want to increase with this accessibility and availability. For example, like the different countries, the trials and currently, and we have the average 1.5 minutes. Well, actually, we know that this is very good for example, like our direct selling and we do not know about the surprise. For example, like all of these [indiscernible] and we have a very good service. And we just make sure with that -- and after we just find with this and we can have a lot to dispute in the second about the carpooling. And for example, like on demand, the market and also for our in-city service or some other added value service. Second, algorithm, this is our core company. We believe that for our algorithm and for each of the [indiscernible], we can just have the expertise about it. And for example, like the value of it, well with over basis. Well, actually, and we know that for our pricing and for this is going to be our core competitiveness. And then about our management for our strategy and also for our shipments. And this is just a long algorithms. And also for our high frequency and also for different market and also in terms [indiscernible], we can have the in depth operation to make sure with this our users and especially about these old users and also for our new users. And then infrastructure, and we know that for the market utilization. And for example, like all of these scenarios with these people and also with this freight and also with all of this part. Well, we know that with some of the infrastructure, and we can have a lot of these ones. And with these innovations, for example, like algorithm and the operation -- and finally, with our branding. The branding actually we just want to be but with the some of this months out. And actually from this FTA, we just have the B2B, the development. Well, actually, in terms of the direct seller and we do not know as well, actually, there were over this 2 million. So in the future, and we have several million part of it and actually, we just want to build about a month at our branding and with our marketing solely. Well, actually we just [indiscernible] of actions and with that, so I can just help with our owners and to earn the money very efficiently. And based on this, we [indiscernible] a very -- the continuous growth, well, actually we just want to replace with this online and the off-line orders -- in this feature [indiscernible], we are currently promoting with the summer branding. And for example, like our marketing and the advertisement and the current land we just covered with some of high-frequent the truckers and the drivers. And for example, we are just focused on the different ports. And for example, if you just want to find it coming to the team a month. Well, with that, we can have a lot of this -- the pinpoint. Well, actually -- and we know that this is very important and also in which is what have the coaching and for example, like the [indiscernible] and with these millions of the users was not about it actually. And this is about this one. And also, we had this in cities development, and we just want to send the trade and also to save more money. Well, we just want to focus on the branding. Well actually, and this is about our business value [indiscernible] a lot of the value. How can we just focus on this transaction and transversion rate actually, we have the commercial vehicles. Well, actually, and we know that this is very important and the way the blue port change, for example, for a mission rent and for every day, we'll be around this 1 million to 6 million. What about the future trend? Well actually and for all of these orders and actually -- and we believe that from this [indiscernible]. Well, we believe that, for example, like our commission rate will be around the 60% to 70% in the future. And we're going to have this 100% in the country, we just elected with the sum up our market [indiscernible] 100%, and we know that we just 1.5x this potential. And what about this vertical development about [indiscernible] range? And for example, like the take rate. Well, actually the take rate will be around 2x of our space in the country. The average rate stood out -- stands at this 1.4% and for every order, we'll be around this RMB 1.2 and also for our take rate for optimized the vehicles will be around this 3.6%. And currently the tick rate will be 1.4%. In the future, this will be going to around this 2x or 3x. This is about our vertical development, especially for the high-value orders. Currently, we have done about this high frequency to the orders, for example, like some of orders and in the future, there will be more and more number of orders [indiscernible]. And part 3, and what about our vertical expansion. This is about this overcapacity. And in the future, we will have over 3x the potential. And for the Q1 will be around this 40,000 orders. In the future, there will be several the billion orders. If you just calculate with this [indiscernible] in the future, there will be 10x the growth is on the take rate. So we believe that for our commercial, the profitability and we're going to have a lot of the development. Well, actually, we just want to have a lot of those ones and how can they just have to meet with all of our users and with our consumers on the right-hand side in the [indiscernible] of our part and for our RMB 52 and then the take rate around 3.6% in. In general, the rate will be RMB 21. And what about the limitations and we just want to answer the call of the Ministry of Transportation and with our limitations will be lowered by 10%. And with those sellings are pretty higher and with this RMB 179 in the order. And it is around 3x net and for our common the [indiscernible] will be 79. There will be 4x of our limitation. We demand this transportation from 0 to 200 kilometers will be 61 from 250 of 500 kilometers is the 83, 104 for 500 to 1,000. For those who are about 1,000 kilometers worth RMB 122, what about this take rate. And currently, there is a huge potential will be unleashed in the future. We need to keep with this trend. Let's now just introduce a lot of -- some of our internal markets, how can we just develop with it. For example, like our users and also our orders stepping forward, I'm going to share with you some of our external market, for example, about this very obvious the trend. Well, actually, we just want to know about this future. And what about the future direction and deployment. Well, on the one hand, we can have the director building. And we have a very obvious this trend. And for example, like a professional our [indiscernible] and our truckers and in the Q2, and we just gained 38% growth. And for our direct sellers coming to reach 53%. For our direct sellers and we have this 688 and also for some of membership and also for this nonmembership and from this 1688, and we have the professional customers. And we know that for some of our customers and they just focus on our freight and the logistics cost, and we know that this is very important. -- which accounted for the 10% in their whole profitability. For this freight, this is very important. And for the SMEs and for the profitability will be 5%. If you just save it out the logistics and we will just increase about this, maybe 20%. Well, actually, we will just find the vehicles online, and they want to utilize it by the middleman, et cetera, riding China for SMEs. And we know that this will be -- this is over 52 million. And for this FTA will be south hundreds of thousands, and we know that in the future, and we have a very good development. Second trend. And we know that we have the best one [indiscernible] for some of our tooling based on the orders. And for example, like our 3 towns and also for this 15 cubic meters and for some that's the freighter source and actually for our orders, accounting for many parts. And currently, they are over 20% to 30% of our orders. What are the reasons on that in Q2 for our FTLs, and which has gained about the 35% for LTL accounting for the 90% of the growth the operating [indiscernible] platform. And also what is the reason behind it, and we believe our supply chain, and we have focused on various more orders also for the GIT and plus business [indiscernible]. And we know that with this very good development, and we have the very fast growth. And this is about the orders and for our orders, [indiscernible] our component, for example, and we will just acquire for one order and two orders, et cetera. And these have more content development. And we believe that for a lot of [indiscernible] the targets, and this is dore to door transaction, and we can also save a lot of money. And also for H1 and this only one part and for example, like 321, and we believe that we will just reduce about the different rate, and we know that this is very important. And currently, and which has gained around the 90% growth. And how can we just repeat with it. On one hand, you were just replaced above this RMB 500 billion and with a ramp this 400-kilometer. Therefore, for this component, and they have a very fast development. This is about this LTL [indiscernible]. Well, actually, and currently we have a different time in the space. And for example, we have this peak season and offseason, et cetera. And currently. And for our transaction, we'll be departed into the 2 parts and from the consumption for industrialization. And currently, we have the first levels and also for this noting decrees, et cetera. For example, like the SKU, well, actually, and we have just unknown name, and we are just behind for some of the commercial owners. And this we just incorporated by some is GDP. And we just want to have this close the circle in this regard close the loop. And when they just get the money from these owners and for the supplier and the solars and they will have some of this transaction. And this is what we -- we won't have this contract fulfillment about the logistics, and we have this on the unknown heros. Well, actually, for some of our freight, we have this freight and also on the run the size of the industrial types. And for the consumers, consumption coming from this home appliances for this building materials [indiscernible] 80% in the second for some distribution beverage like the fresh goods such as both or some of the beverage, et cetera in the pathway. And for this packaging the food and also the beverage and this payment types. And then about to sum up these closing and for some part of it, for example, we just translated for a lot of the cotton, et cetera. And we believe that for some of the logistics, et cetera, and this is going to some of our consumption. And for example, like a lot of this [indiscernible], et cetera, and we have this very fast development. And several days ago, we just read a report coming from HSBC and for China, they were 91% of the [indiscernible] worldwide. Well, actually, the [indiscernible] is coming from the external overseas market, and this is transported by our platform, 30% coming from our FTA. We are the foundation of the economy. And also the [indiscernible]. This is a very interesting topic. We'll actually for some of this, the company, and they are just going to be listed company right here. And there were huge market opportunities will be unleashed. And currently and with some of these raw materials and also for the mechanics and also for a lot of those ones, for example, like packaging, et cetera. So with that, they just constitute with some of our 19 property types. And currently, we have the off-season and also for our peak season. So we're going to have this rigid need in this regard. So we just want to -- this one will be around 8.1 [indiscernible] right for this peak season to the off season. This kind of the fluctuations, and we won't say that this is very good for our platforms. Just now we just changed the bottles time. So what about this space? And -- we already talked about the time red in China, and we have different municipal cities running China with an administrative regions. There were 34 provinces, including the Taiwan. We're talking about this municipal set. There were over 370 cities and for shipment present from Beijing to Shanghai, and the Shanghai to Beijing is the second line. So right in China, we have theoretically the 130,000 lines. Actually for FTA, which has covered all the lines right here and even running the remote area. [indiscernible] do not just convert with the railways. But actually for our routing. They were going to around to this 5 million kilometers. And for this expense rate or have more than the one million in this regard, actually, and we're talking about some of this expressway and this is not just come with the from Shanghai to Chengdu and we got a lot of the operator. But from the Chengdu to Shanghai, we don't have so many kind in defines. And we know that Shanghai's industrial lines in the city, and we got a lot of these transactions and also for the freight and from the Condo Shanghai, these do not match up with each other. So right in China and according to our road lines, for example, like our online, off-line also for some part of it and around this to 2.3:1. This is about the median, the number with over 130,000 lines with over 60,000 alone. And we got this 2.5:1, well, actually for the space and not just match up with the tender. So we know that we have big off-season and also for this peak season. So with that, the platform are very prevailing. And finally, and for our trend is that for some of our different time base, and we have this very obvious change in this regard. For example, we have known that for our -- every -- the trucker in Q3 2021, accounting for 76% in this year, and we have just increased by this Actually, this is very simple. And we know that they have been quite simple with each one. So we know that they have the rig needs. And for example, like their name is very rigid, and they have some fluctuating the net right here. Well, actually, and if we just want to put forward or providing with the whole team, and this is not so easy. Sometimes we know that they do not have a very good business right here. Therefore, for the trucks, and they have this very low efficiency or the truck will be in vacancy. So for our teams in Q2, and this just accounting for this 82%, and this is 20% to 80% about some of these personalized or vague truckers. For individuals, the truckers and they need to find the result of the fixing a lot of the time and also riding China around this [indiscernible] in this regard. So actually, we have this huge potential will be on lease in the future. Just now we have just introduced about our core trends. We have the direct selling and also for some of this on-demand orders where the change is about of time and also for the space, et cetera. And finally, we're going to have some lease in the individualized port in this regard. And for example, we talked about the supply the demand change in this regard. For example, like our free part, and this is better for platform. With that, we can just catering for our platforms. Therefore, we need to follow up with the trend from digitalization, and we just want to strengthen our efficiency and our profitability. With that we can just create the larger value to our users and to meet with their needs. This is about our trend. Currently, we just want to change and share with some of our trends. So this is end of my speech. Thank you so much. Thank you. Thank you, Mr. Gu. Ladies and gentlemen, at 11, and we're going to have the Q&A session. Before that, we just prepared with the T break. Please take a rest. Thank you so much. [Break]

And today we will start the QA with Mr. Zhang and Mr. Guo. And our analysts and the institutional investors may have some questions to our President and the CFO.

So many thanks go to Mr Zhang and Mr. Guo. I'm Eric. I'm very honored to be here and also glad to hear about your sharing and insightful opinions regarding the Internet. And also, we are more confident and I have 3 questions for you. First, regarding the autonomous driving, [ the west light ] goes to the autonomous driving. I'd like to know more details about the large application of autonomous driving in the commercial road transportation. And what are our response in this regard? And the second, for the long-term strategy, what kind of status you expect the platform to reach? And what kind of value you will empower to truckers and the shippers? And also, which sector should be further improved, especially in our capability. And third, for the [indiscernible] customers. In the past seasons, we have seen the MAU on the rise actively, and what about the [ acquired ] of the direct customers apart from the ad hoc demands in terms of the contractor market here and the ad hoc market, do we have any investments on any niche markets in those sectors. So first, the question goes to Mr. Zhang, and the second and the third issue goes to Mr. Guo.

For the autonomous driving -- we have collaborated with the other business about the unmanned driving since 2018 onwards. And in that process, we have also observed the evolution in this industry under the technical reiteration. And there are several steps from 2018 onwards to 2019 and 2020, especially in 2020, we were pessimistic because it was a long procedure. And also in this industry, we need to have some technical routes and also some milestones to enable us to be optimistic and confident. For example, Tesla's first win. Some of our friends are also engaged in the Tesla's technical routes, which are very optimistic. However, we firmly believe that the unmanned driving should require some scenario for implementation for practice. It cannot only be confined in the laboratory in the benchmark scale. And nowadays, I have such opinion that for the high-speed routes, I think the commercialization will be faster, within 5 years. And faster speed scenario that refers to someone will drive it at the expressway. And the other person will take it, will accept. And for the long-haul truck ways, the course lie in the long routes. And lastly, it's possible that it will point to 3 sectors. First, we will have the truckers, the drivers at both ends and in the long-haul expressway, we will have that. And on the other hand, for the impact on our side, it's safe to say that as long as it's still scattered, sporadic, we will be influenced. However if the goods are more centralized and also the truckloads, the truck teams are centralized. Nowadays, the truckloads and the teams are still scattered. And as long as the goods, the truckers and the shippers are still scattered, we will not be impacted fundamentally. And I'd like to take your second and third issues regarding the driving momentum. In the first, the driving momentum comes from a contribution of our acquired users apart from the old users under the retention users, the core growth from the contribution of the new users, especially the direct customers. And this growth also comes from 2 directions. First, the value should be conveyed to our targeted users and to enable more direct customers to know us. And in this regard, we have a lot of space for improvement. And also, the professional truckers and the shippers have already got to know us. Many direct users, truckers and shippers have no idea about our existence, and our brand should be conveyed further to cover more users. This is the work regarding the brand marketing. And the second for our internal strength, regarding the new users according to their life cycle, we have also done a lot of first for the goods delivery. We need to have a good experience for the goods delivery, especially for the professional users, actually, the goods delivery should be more professional and therefore, the direct users that's not friendly. That is why we are optimizing our procedure and the product, the system. So that the new users, new shippers, will deliver their goods very faster and also conclude the deal very efficiently. And this is also good for the retention of the new users, very friendly for new users. And also for the premium service, this is designed for -- tailormade for the direct users. And the cost of the delivery is very complicated and also the first part. And also, he has no idea about the pricing. And the premium service will have reference price. And for the shippers, whatever routes you are using and what size of trucks will be used, you will refer to the price from the system, and also the price is very competitive. And we could locate the trucks directly and no intermediaries, no agents will be used in this process. So the price is very attractive and competitive for the premium users. And secondly, having located the trucks and the fulfillment rate regarding the premium rate is very high up to 60% and the rest or more than 30% is due to the cancellation by the truckers, the shippers themselves. The majority of the others that have been concluded and fulfilled. And for the fulfillment, we needed to pay much attention to each sector in the fulfillment and to ensure the punctuality of the shippers and the truckers. And no [indiscernible] and no disputes are rising in this process and the end-to-end service should be ensured to serve our customers as the direct to customers so that it will empower the growth in the new users. This is our, in general, our strengths and also serve for the basic data, like the infrastructure and this is also digitalized platform and the data is our core strength and advantage, including the people field, the data, goods strategy and also the dynamic scenarios, which should be leveled and also digitalized. And the ways section, infrastructure, the vehicle goods under the field, under the people, we have been working more partly with more efficient pricing. And also the fulfillment rate and the demand of the supply matching and the truckers' ecosystem will be better. This reference to our internal ecosystem and also, we need to have the platform to promote ourselves to have more exposure to the public and also to have a better end-to-end service with our infrastructure and also to expose our brand to more users, more potential customers. And also for the on-demand market, the premium is very promising and also we will permit with 10% and also, we have another 19% of the mix market in the on-demand markets. And regarding the CNY 50 million of the medium and small customers, which accounted for 60% of the GDP and the 50% of the taxes from the SME and also 60% of the GDP and the 70% of the innovation, the 80% of the job creation coming from the SME. And the SME and the micro enterprises are the driving source of our new users. And do we have any more questions? And also I'd like to remind you about the time limit and also for each round, we have 2 questions. And I would like to add more. So what is the scenario into the future? After 5 years, we have that after 5 years, all the Chinese businesses as long as the U.S. logistics for goods delivery, the FTA will be their first choice because we have all kinds of the platforms engaged in the logistics for 2C and for the e-commerce, like the JD and the [indiscernible] and the [ Pinduoduo]. However, for the goods delivery, the logistics are still very sporadic various scattered. And we need to think about the wet socks service, and we hope that after 5 years, the FTA, I think from 30 million to 50 million such businesses will use our platform, whether for the small amount or the long haul or the short routes. All those users will prefer FTA. However, at the core is our capability to undertake all those demands. And the market, actually, the communication, the supply is not a problem, as long as we could have high effectiveness, the high efficacy and we have our core competitiveness, the spreading, the communication, the brand recognition, will not be a problem. And as long as we could have the capability to undertake all the demands and the most effective course, as the most attractive ways, we'll attract more users and be the #1 choice for the SME and also the macro enterprises.

And I'm also honored to have the face-to-face talk with our executives. And also, would you like to compare, what are the major changes in the management throughout the past years? And also, what sector may require more enhancement more improvement or in which sector we may need to improve more? So in which sector, in your opinion, you think we need to improve more? And the second, regarding the truckload and also the direct users strategy for the interested truckloads. From the perspective of a long-term interest in truckload, what is the orders in this sector and also the fulfillment rate and those are the commission rate? So do you think do we have any more outlook regarding the interested truckloads. And also we have profited a lot, and do you have any planning regarding the use of those cash. And also the investments and the dividend, do we have any more improvements regarding the cash?

And so Mr. Zhang, will take care of the first and the second question. And also regarding the premium service, Mr. Zhang will answer that question. And also regarding the management, I think we have improved and changed a lot from the ground promotion to the in-cap's exploration, the third to the evolution of our borders and also the use of AI. Our businesses have decided and the strategists have decided to reiterate our technology and also to nurture our talents and also the core management is also improved and reiterated a lot. And from the initial 3 to 5 years, we have our ground teams, 80% to 90% of those talents have already been replaced. And the talents are also reiterated and replaced a lot. And regarding the structure are different from the past. Actually, the happiness to enjoy the work is less than before. I need to ask others to be involved, to be engaged. However, we have different departments and actually too much interference into the work of other departments. We actually disencourage others to be more involved. This is also more challengeable. And also the platform is one of our major sector and the value addition into the short routes, and also the innovative and new creations are also the new sectors. And in the new structure, in the new and additional structure, how could we improve the sectors, the department's work? And this is what we need to do more. And the third, we needed to strive for achieving our missions and visions and how to maintain our driving momentum and unwavering efforts, this actually, we are confronted with the competition. However, such competition is not as fierce as other sectors, however, we may not evolve or progress better in such a scenario with no fierce competition. Very moderate, very tender competition. So how could we stimulate ourselves to be progressing to be more reiterated? And we are still a very practical company, results-oriented company. And inside ourself, we are proposing to be value oriented and be customer centric. And also the leaders and the employees promotion are based on their contributions, rather than their [indiscernible]. And the core management have already been working with us for at least 5 years to even 10 years. And we have a savvy experience and deep emotions and the emotional attachment to us. And this year marks the tenth anniversary, we are also dedicated to some new businesses under the platform manager is also dispatched from other department, and Mr. [indiscernible], who has a savvy experience of management regarding the big platform. And all those management team members are also working with us who used to drawing us from when we start for this company, from where we start. So they have very deep emotional attachment to us. And the third for the cash use, actually, we have the rest of service strategy, which is very broader. And also I think the cash will go more to the rest of services strategy, landscaping, and therefore, the autonomous driving, I am very confident. I think within 5 years, it will be fulfilled in the online platform. And also, we will invest a lot in this regard. And also for the dividend, we have also discussed a lot because we are doing the share repurchasing. However, still underfulfilled. We have done a lot. However, the profit is still to be realized. And also, we would like to reward our shareholders. And I do not think shareholders, employees and users have any different orders and just the causal relationship. And we are also in the same community. However, we are still underfulfilled, and we need to fulfill our commitment to reward our shareholders. And for the others of the premium orders for the outlook, I think from the macro economy, the SME, 50 million business, accounting for 60% of the Chinese GDP. And the premium service will account for 60%. And the premium service accounted -- may be fit for the shorter route service. And also, this, our [indiscernible] the premium service, others accounted for 5% to 7%. And also, we have a lot of work to do, including to better up our sales and also the branding promotions. And in each round, we could only ask 2 questions at the most.

And also thanks, president, Zhang and Guo for the presentation. And this year I have 2 questions. In the future, we hope that the logistics delivery could have FTA as the first choice, and we are still make it by the long-haul logistics. And also, I would like to see if we have any objective regarding the LTL. And also the short-term and the long-term strategy regarding the LTL. And also we have some existing competitors. We'd like to now, do we -- in the future, how do you evaluate the competitive landscape and how would you reach your objective? And I am Charlie with Huaxin Security.

I have talked about the competition in the long-haul route. Actually, the competition in the long-haul logistics delivery is not that fierce, however, rather, for the LTL or the short routes. So first of all, the short-route logistics, [indiscernible] is a good actor, accounting for almost all the marketing share. A little bit lower than [indiscernible]. And also the [indiscernible] orders of 50,000 to 60,000 orders. That is not a larger amount, however, according to our expectations, not to mention the market share. However, I think that is the most cost-effective production. I cannot share the marketing share or the marketing quota, however, to ensure the same marketing service at a lower price, I think the businesses have a very sensitive marketing price. And even very little price adjustment will be felt by the businesses who are very sensitive and also we need to be very competitive in this regard to provide the equivalent service and with a little bit fine-tuning in the price. And this, I think, will be judged by the market in the -- by the time. And also for the LTL and also the ad hoc marketing, this is led by some businesses and also for the big amount of logistics services, we have the long-route, or the FTL, and for the freight ride or the shared ride, which have also taken up the goods of the FTL in the province. And in the long routes, we are also empowering whether it is for the [indiscernible] or other actors, so we empowering the long-haul FTL. And in the future together with the 600,000, actually, it's claimed to have the 600,000 value for the FTL in the marketing, and we hope to have the co-growth under the co-prosperity for the FTL. And also, we hope to have the transparency in the market because the price for the FTL is still very opaque in the marketing and also the fluctuations are very fierce. And I hope that with our transparency and the good service and the competitive price, we hope to secure a good market share in the future.

From the Internet analysis company, and thank you for inviting me and I have a set of questions. So apart from the price hoist, do we have any other operation means to enhance the customers surveillance relevance for payments? And for the future incremental points, what are the main trending momentum? And for the [indiscernible] in the platform, and the pricing compared with other cargoes platform, our pricing not that easy in his sector. What kind of measures shall we take to improve the profit rate?

So Mr. Guo will take your concerns.

So there are 3 issues. So first, the pricing close regarding the members fees. Actually, for the cash from the members, actually, members is main source of our revenue, we have 700,000 members and also professional members up to [ 680 ]. And also, we have the direct users and other active users and the total users is amounting to 700,000. And thus, 700,000 users are very sticky and loyal to us. And also that is one source of our revenue. However for our strategy, this is designed not only to charge high member fees, but we needed to retain those users, including the [ 1,680 ]professional truckers and shippers. And also, we have the professional shippers, which are also retained in our platforms. This is also due to our stable relationship, we need to provide good service to retain those users. And also, the [ 688 ] inclined to the high-frequency users, which are also sticky to us and also their extension rate is also very high. For the [ 168 ] users, the extension rate is up to 80% to 96% and for the non-active users, that is up to 80% to 90%. However, in China, the China businesses SME, their life expectancy is 3 years. That is why our businesses will transfer or will be redirected or even extinct after 3 years, and we need to extend the member's coverage and also the member's of service, the pricing increase is certainly not our first choice. And the second for the commission, commission is targeting at the truckers. We have 3 directions: first, to improve the penetration rate; second, to improve take rate; and the third, is to expand our orders from short term to the long term to improve the coverage rate, the 60% coverage rate is to be improved to cover 100%. Actually, there are no problems. We have some private programs in some cities and we have the financial percentage rate of the take rate. And we have no concerns regarding this take rate from 60% into 100%. [indiscernible] and also the take rate to be improved to 2.5x to 3x. This is also within our full expectations. And therefore, the premium cars, that is ranging between [ 3.6 to 3.9 ]. And this is within our scope [indiscernible]. And apart from the premium trucks, we also will have more higher-value orders under the commission take rates, the take rates is very low for the truckers, that is still acceptable to the truckers. For each other, that is around RMB 21 to RMB 22. And actually that has created more value to the truckers, higher than RMB 21 to RMB 22. And we have collected just more than 1% of the commission rate. And just 1% of the commission rate is more than acceptable to the truckers and the core lines to create more service, and more orders for those truckers and help with truckers to profit more. And first, to improve take rate and also to enhance the coverage rate and the third, to extend our others. The 400,000 orders is not that very high within our scope. And also, for the long-haul truckers, actually, we needed to reach the market up to 20 million marketing in China and therefore, the long-haul truckers, we need to improve to cover more than 1 million, 13 million value in the market. And also the order is 3x to -- 2x to 3x or even 10x. And the order will be improved lot, and I think the take rate is within our scope of our objective.

This is from [ SCC ], and also together with me is my colleague. And also, the presentation has impressed me a lot. First, we needed to see the time slot to be fit with the truckers. And -- this is still very comfortable for the trucker, because many industries are just emerging to the core of the time -- to the core of the era. However, with the advancement in the industry and in different times that business will also be updated to meet the needs. And I have 2 questions.

From the Huochebang to [indiscernible] to be merged and also to be listed. It has been listed for more than 2 to 3 years. And that thing to be -- the retail industry has also changed a lot. And the Internet industry and the freight and the service and machine industry, we have heard a lot from the information [ metric ] and also the payment issues and restructuring. There's also a problem, so we have resolved [indiscernible]. And I think we have 2 rules, so first is to automatic information and also the payment problems, so they are further served, there's more empowerment on the employee efficiency to create more values and also to improve the fundamentals and close of the data, close of consumers and also to dig deeper into the consumers, whether, the verticals or the horizontals, and the macro economy has also changed a lot.

Based on this, like I said, regarding the customer and the business models, do we have any change regarding the business strategy? And all these, our capabilities and competition capabilities and the competitiveness also based on our legacy -- [ personal ] legacy, and also regarding the organizational structure to be adapted to the upside change. And we have further accommodated and integrated many businesses.

And in the past investments -- management, we have also done a lot. So regarding the future market, the MA or the capital markets and any future tendencies and evolution. In terms of the strategy, do we have anything to do to improve our adaptation to the future? And do we have any driving momentum in this regard?

So regarding the second issue about the organizational structure and the MA and FTA is also a merger from the [ Mantova ], and also, we have acquired other businesses like [indiscernible] and also they have been definitely involved into the business of [indiscernible]. And we have 2 solutions. First, the original team will be replaced, and also we will dispatch our own teams. Second, we will still extend the use of the original team. And we needed to decide whether to replace the original team or still retain their original team and also rise the original team to co-work together and also to co-create or empower the original team to coverage together. And also, if we cannot coverage, we may pay to replace the original team. This is a very brief solution.

And also regarding the change in the industry, do we have any strategic change to adapt it to the industry?

And also, I think there are no changes in the industry, but inside the sector actually, [ several ] of years ago, we have started the logistic industry and the technology has not evolved so much to revolutionize the industry, rather, we used the car, used the people, or used the vehicle for transportation. There are no significant change or evolution, however, there are some disruptive technologies and all the companies are born to meet the needs of the era -- to be the era for the businesses and the productivity and the technologies were disruptive and we need to be very alert to pay much attention to the AI. And autonomous is well application for the truck cars, the unmanned driving will revolutionize the cost and structure regarding the truckers and to the AI, in the dipatching, whether we need to have more dispatcher with the use of the AI. And also the industry will be revolutionized in this regard and also we need to pay much more attention with more resources input, and we needed to revolution by ourselves to see there's more insight views from our own perspective. The long-haul trucks and also the large and the medium enterprises, actually, the business is in this industry still very optimistic. And the data is still very encouraging. Many people are claiming that the Chinese economy is declining. They are -- we are still very pessimistic. I think the GDP and the fundamentals are still very optimistic and not are affected negatively a lot.

I am with [ SCC ]. And I have more questions. First, the direct users from MAU has reached 1.7 million. And I would like to go to more details. In the future 3 years, by 2025, what is the scale and the size and the level of the direct users? Do we have any significant KPI? And also, we are concerned more about the ratio of the middle agents on the platform. What are the relationships with the middle men, with the agents, and how do we position those middle men? This is the first question. The second one regarding the commission rates. The record [indiscernible] space, the promising marketing and the commission. And we love to hear about the detailed guidelines regarding the future 3 years, the orders, the commission coverage rate and the take rate and the overall pacing regarding the commission.

So first, regarding the first question, Mr. Guo will take your concern.

To truckers but the premium vehicles, we have the changes the orders for the premium services. Actually, this is to make sure the demands are for users, whether for the products experience which needs to be further reiterated and improved. And also our products are running very faster and they progressed a lot. And for the SME, you were asking about the marketing ratio. Actually, the SMEs are accounting for 60%. And the premium orders is accounting for 50% and the premium service is fit for the medium and the short routes within 400 and 500 kilometers. For the long-haul distance, the price fluctuations is more significant. And also, for the premium platform, we have the platform-based price. And the ratio is around 60%. For the long-haul, we need to have the [ negotiation ] based price and [indiscernible] for the special feature, commission rates for total 3 years and to the [indiscernible], we have no worries, rather, for the commission rate or coverage or the take rate or the orders in place. Those are always in our planning, regarding the pace, whether we are improving faster or slowly. We are also soundly and robustly improving our commission rates, meeting the needs of the market. And this year, the commission rate is improving at 40% to 50%. And at the core, we needed to expand our orders and the consumers scale and then improve experience. This is our concern, not to improve the take rates very fastly. But we do not select to do so. To feed the fish, we needed to nurture the fish to be very big and then to cash in from the bigger fish. Based on our [indiscernible] of the improved experience, the larger scaled users, the customers. And such better experience and the larger scale of the user support will help to improve our take rate. And also, we will have not have -- we will have a specific pacing for such improvements.

And many things go to our management. I am [indiscernible]. And regarding the LTL [indiscernible], how do we improve the LTL matching efficiency to enable more truckers to do service and there's a platform. How is the [indiscernible] regarding the LTL and the FTL? And then regarding the take rate, how is the LTL compared with other businesses and what are the future directions? I remember in the second quarter while the economy is improving, some truckers may use the LTL to lower the cost. In the future if the economy betters up or any significant better changes, how do we see the future business directions in LTL? And this question goes to Mr. Guo.

Regarding that LTL, that is targeted at the order below 3 tonnes -- 3 tonnes to 10 tonnes. And actually such a good increase is not relevant to the economy. This is also due to the industry share. And therefore, the small order, we may respond quickly and for the consumables and the manufacturing industry, the response to the LTL, to the smaller amount industry will be faster, to reduce the inventory. This is a long-term tendency. And for the FTL, that is targeted at agriculture products and to transport 3 tonnes of tomato or mangos, he needs to transport 1 cargo, 1 full truck -- the full truckload of mango or the tomato or the potato and also we needed to see the industry changes, and also to reduce inventory to improve the sales efficacy and however, the granularity of the smaller to respond to quickly. And also the factors to be not acquired [indiscernible] to respond to the market changes. And also, this is the industry tendencies and the industrial models, rather than economic tendencies, rather for the shippers and truckers. Actually, the LTL will enable them to profit more. The shippers will not deliver the goods from the platform, buyers and [indiscernible] ride or shared ride of the FTL, it will use the interprovincial professional trucks. And also, we will have 3 the trucks and the 6 lines -- different truck lines, however such different truck lines will lead to the goods destroying and the damage and also higher [indiscernible] lower the cost, it will ship the goods in the day an also [indiscernible]. However, for the shared riding model, we will have the faster speed at a lower cost, the cost of the -- skipping 2 sectors. And this is [indiscernible] less goods destroying and goods damage. And this is the first choice for the truckers and also, it will help to reduce the rate of the empty truckload for the truckers and also for the trucks [indiscernible] highway truck -- truckers [indiscernible] truckload and save a lot of the space in their trucks. And other [indiscernible] are brought to the heavy truckloads so that [indiscernible] it may transfer the goods from different sources and this is also a solution which they -- or [indiscernible] truck loads. And it will transport the goods from different sources and this is favored by the truckers. And the -- so that we will have more and more LTL consumers because LTL has replaced many interprovincial [indiscernible] trucks. And also for the adhoc LTL trucks, we also have the close to provincial long-haul orders. Also, we have the innovative businesses in response. And they have the lines -- the special [indiscernible] platform to serve our customers of the special goods and also we have the yellow page models and also the [indiscernible] models. In the pilot of [indiscernible] to create the long-haul long distance marketing and the marketing value is up to 1 trillion, and we have separated the marketing to the long-haul, long route and also the short-term LTL route. And for the take rate for the platform, it is higher because the members is one of the high-value members in our platform and also favored and supported by the truckers and favored by the truckers of this platform.

I am [indiscernible]. And I have 2 questions. So first, regarding the new business, the new r intra-city deliveries and the freight models. How do you consider the single model strategy? Is it the line for the new growth or to check [indiscernible] competitors in the same trucks, for the intra-city cost of delivery is a little better than the LTL? And also what are the issues for us to entry into the new sectors? And what are the competitive barriers? Second, I would like to know the brokerage of business and the value addition? In strategy, what is our position to the brokerage into those businesses and the future outlooks regarding the next 3 years?

And Mr. Guo will take your concern.

For the intra-city delivery, Mr. Zhang has answered that this is a one-stop platform. And also putting the member in the platform, not only to combat the competitors, but also to position our customers and the full -- the shippers, they have both the long route and also the short distance demand. First, the LTL and the FTL demand. And we need to have diverse supplies and also 70% of the source are actually coming from the platform, that means regarding the long-haul customers, also, we have the customers from the intra-city users. And also we have the medium and the long distance users which has already the requirement, the demand for the intra-city services. That is why we provided a lots of service, and we could provide products at lower price.

And for the [indiscernible] the riding. This is also displayed in our platform. This is not a pure innovative business, some innovative business is still in the pilot program for some special business and not expanded at a larger scale. And for the free ride, they shared the riders their model, compared them with our platform is always -- is almost the same and the marketing and regional demands we'll go forward, the increase in the orders that will cause shippers will save more, while truckers will order more. So that is where our market is developing very faster. This is not to step from scratch, but to meet the demands of the shippers. And also the truckers, we are meeting the demand better.

So last question goes to -- we have one last opportunity. So who will?

And I am analyst of [indiscernible] I have 2 questions. First the -- regarding the shippers, we need invest more and to save and to do better. And for the truckers, do we have any more initiatives? If the shippers deserve more, how about the freight phase for the truckers? Will that affect the truckers? Second, they have still more space for the value-addition service. And how do we cash in from that value-addition service?

So, Mr. Guo will answer your question.

So the shippers, that is faster, better, save more and we have more cost-effective price because of the logistics. Of course, this [indiscernible] cost for the shipper, however, such -- to save more from the shippers doesn't come at a compromise to the truckers ,truckers will have more profits because the truckers drive the trucks and [indiscernible] driving you from his driving of the trucks -- or the truckers to buy a house in the country side 20 years ago. And there also, nowadays if they have their license and the [indiscernible] truckers, the price may also come down. However, in the blue-collar workers, the truckers is still having more higher salaries. And their salary is as high as RMB 15, 000 to RMB 20,000. Actually, this is higher amount than the blue-collar workers. And actually, for the truckers, they will enjoy more profit with more sales, more frequency of the sales because the truckers will transport more goods and they serve more users. This is a feature we call that to [ linger ] profits to each orders, there's more orders, there's more sales. This is also to bring more profits to the truckers with more sales, with more orders and also for the heavy truckers. They will try their most to fulfill the orders as much as possible and also to fulfill all the miles, all the kilometers. The trucks have been rolling and also for each kilometers, the truckers roll on the mile. For each mile, he will try for more orders, for more goods. This is why he will even earn more at more orders. There's more orders, so there's more customers. And also, we will score the truckers with their service, their quality. [indiscernible] the platform, you will say the score of the truckers and that will help the truckers, they will score higher and deliver more and [indiscernible] so we will get more orders. The truckers with better service and higher scores will get more orders so that the truckers ecosystem is also very positive because the truckers with better service and higher scores will get more orders so the retention rate and the MAU is also higher. And the service will be also higher and also to create more value for the shippers and for the value-addition service. For the shippers and the truckers, we have many value-addition services. Regarding the users ecosystem, we have the Internet finance under the transportation service, insurance service. For the value-addition, at the core, that is based on the closed loop orders and at the core, the closed loop orders should be enhanced so that the value addition will be more abundant. And also the value-addition service, the retention rate is still very low. However, it is growing very faster and for each value-addition service that is desired to empower the truckers and the truckers with more value. For example, the insurance business has increased by 50% of -- however, the retention rate is only less than [indiscernible] however, the truckers and the shippers needed to transport those goods very safe and the user to buy those insurance from the off-line stores. However, [indiscernible] provide them with online insurance that will be different and will guarantee and also we collaborated with the insurers, so that the insurers, the shippers, and the truckers and the [indiscernible]. So we have benefited a lot. This is also a form of value addition. And therefore, the fueling issue, especially for truckers, we recommended the truckers with the fueling station with special service, and more convenience. And also, the truckers will follow their route with such fueling stations. And also for the finance product, we have leveraged, we empowered truckers and the shippers. And all those value-addition services are designed to [indiscernible] our users and also to make them more loyal and sticky to us. And also, we hope to get those users still sticky to us as the final results and the...

Thank you for being with us, and this is the end of the morning session for this Investors Day and many thanks go to all of our investors and the analysts and the friends here at the present and also our online friends and investors. We have prepared some refreshments and [indiscernible]. A very simple breakfast for all of us, you may enjoy the breakfast in the room adjacent to this conference room. And in the afternoon, our CFO will lead you to tour around with some more details and the presentations. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]