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Tuniu Announces Unaudited Third Quarter 2023 Financial Results

NANJING, China, Nov. 21, 2023 /PRNewswire/ — Tuniu Corporation (NASDAQ: TOUR) (“Tuniu” or the “Company”), a leading online leisure travel company in China, today announced its unaudited financial results for the third quarter ended September 30, 2023.

Highlights for the Third Quarter of 2023

  • Net revenues in the third quarter of 2023 increased by 128.9% year-over-year to RMB178.2 million (US$24.4 million[1]).
  • Revenues from package tours in the third quarter of 2023 increased by 262.1% year-over-year to RMB150.1 million (US$20.6 million).
  • Gross profit in the third quarter of 2023 increased by 154.9% year-over-year to RMB114.8 million (US$15.7 million).
  • Income from operations in the third quarter of 2023 was RMB31.7 million (US$4.3 million), compared to a loss from operations of RMB14.3 million in the third quarter of 2022. Non-GAAP[2] income from operations in the third quarter of 2023 was RMB38.1 million (US$5.2 million), compared to a Non-GAAP loss from operations of RMB12.3 million in the third quarter of 2022.
  • Net income in the third quarter of 2023 was RMB39.1 million (US$5.4 million), compared to a net loss of RMB23.5 million in the third quarter of 2022. Non-GAAP net income in the third quarter of 2023 was RMB45.5 million (US$6.2 million), compared to a Non-GAAP net loss of RMB21.6 million in the third quarter of 2022.

“We are pleased to report continued growth for the third quarter of 2023,” said Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer. “Our net revenues increased by 128.9% year-over-year, and revenues from packaged tours increased by 262.1% year-over-year. Our GAAP net income turned positive on a year-over-year basis, reaching a new quarterly high since our listing. Notwithstanding taking advantage of China’s peak travel season to achieve revenue recovery, we remained committed to our strategy of operational efficiency improvement to deliver profitable growth. In our business operations, we continue to capitalize on our competitive advantages in products, services, and technology to attract more customers seeking premium travel experiences and to drive sustainable revenue growth in the long-term. As we persist in implementing stringent cost control measures to lower expenses as a percentage of revenues, Tuniu’s path to profitability will become increasingly clear.”

[1] The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB 7.2960 on September 29, 2023 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/default.htm

[2] The section below entitled “About Non-GAAP Financial Measures” provides information about the use of Non-GAAP financial measures in this press release, and the table captioned “Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release reconciles Non-GAAP financial information with the Company’s financial results under GAAP.

Third Quarter 2023 Results

Net revenues were RMB178.2 million (US$24.4 million) in the third quarter of 2023, representing a year-over-year increase of 128.9% from the corresponding period in 2022. The increase was primarily due to the growth of packaged tours as the travel market recovers.

  • Revenues from packaged tours were RMB150.1 million (US$20.6 million) in the third quarter of 2023, representing a year-over-year increase of 262.1% from the corresponding period in 2022. The increase was primarily due to the growth of organized tours.
  • Other revenues were RMB28.1 million (US$3.9 million) in the third quarter of 2023, representing a year-over-year decrease of 22.7% from the corresponding period in 2022. The decrease was primarily due to the decrease in commission fees received from other travel-related products and revenues generated from financial services.

Cost of revenues was RMB63.4 million (US$8.7 million) in the third quarter of 2023, representing a year-over-year increase of 93.2% from the corresponding period in 2022. As a percentage of net revenues, cost of revenues was 35.6% in the third quarter of 2023, compared to 42.2% in the corresponding period in 2022.

Gross profit was RMB114.8 million (US$15.7 million) in the third quarter of 2023, representing a year-over-year increase of 154.9% from the corresponding period in 2022.

Operating expenses were RMB83.1 million (US$11.4 million) in the third quarter of 2023, representing a year-over-year increase of 40.1% from the corresponding period in 2022. 

  • Research and product development expenses were RMB18.4 million (US$2.5 million) in the third quarter of 2023, representing a year-over-year increase of 89.1%. The increase was primarily due to the increase in research and product development personnel related expenses. Research and product development expenses as a percentage of net revenues were 10.3% in the third quarter of 2023, decreasing from 12.5% as a percentage of net revenues in the corresponding period in 2022.
  • Sales and marketing expenses were RMB39.6 million (US$5.4 million) in the third quarter of 2023, representing a year-over-year increase of 49.4%. The increase was primarily due to the increase in promotion expenses. Sales and marketing expenses as a percentage of net revenues were 22.2% in the third quarter of 2023, decreasing from 34.0% as a percentage of net revenues in the corresponding period in 2022.
  • General and administrative expenses were RMB27.1 million (US$3.7 million) in the third quarter of 2023, representing a year-over-year increase of 11.6%. The increase was primarily due to the increase in share-based compensation expenses. General and administrative expenses as a percentage of net revenues were 15.2% in the third quarter of 2023, decreasing from 31.2% as a percentage of net revenues in the corresponding period in 2022.

Income from operations was RMB31.7 million (US$4.3 million) in the third quarter of 2023, compared to a loss from operations of RMB14.3 million in the third quarter of 2022. Non-GAAP income from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB38.1 million (US$5.2 million) in the third quarter of 2023.

Net income was RMB39.1 million (US$5.4 million) in the third quarter of 2023, compared to a net loss of RMB23.5 million in the third quarter of 2022. Non-GAAP net income, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB45.5 million (US$6.2 million) in the third quarter of 2023.

Net income attributable to ordinary shareholders of Tuniu Corporation was RMB39.4 million (US$5.4 million) in the third quarter of 2023, compared to a net loss attributable to ordinary shareholders of Tuniu Corporation of RMB22.0 million in the third quarter of 2022. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB45.8 million (US$6.3 million) in the third quarter of 2023.

As of September 30, 2023, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.2 billion (US$163.7 million).

Business Outlook

For the fourth quarter of 2023, Tuniu expects to generate RMB87.4 million to RMB92.9 million of net revenues, which represents a 220% to 240% increase year-over-year compared with net revenues in the corresponding period in 2022. This forecast reflects Tuniu’s current and preliminary view on the industry and its operations, which is subject to change.

Conference Call Information

Tuniu’s management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on November 21, 2023, (9:00 pm, Beijing/Hong Kong Time, on November 21, 2023) to discuss the third quarter 2023 financial results.

To participate in the conference call, please dial the following numbers:

US

1-888-346-8982

Hong Kong

852-301-84992

Mainland China

4001-201203

International

1-412-902-4272

Conference ID: Tuniu 3Q 2023 Earnings Conference Call

A telephone replay will be available one hour after the end of the conference call through November 28, 2023. The dial-in details are as follows:

US

1-877-344-7529

International

1-412-317-0088

Replay Access Code: 4611353

Additionally, a live and archived webcast of the conference call will also be available on the Company’s investor relations website at http://ir.tuniu.com.

About Tuniu

Tuniu (Nasdaq: TOUR) is a leading online leisure travel company in China that offers integrated travel service with a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network, including a dedicated team of professional customer service representatives, 24/7 call centers, extensive networks of offline retail stores and self-operated local tour operators. For more information, please visit http://ir.tuniu.com

Safe Harbor Statement

This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Tuniu may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Tuniu’s beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but are not limited to the following: Tuniu’s goals and strategies; the growth of the online leisure travel market in China; the demand for Tuniu’s products and services; its relationships with customers and travel suppliers; the Company’s ability to offer competitive travel products and services; Tuniu’s future business development, results of operations and financial condition; competition in the online travel industry in China; relevant government policies and regulations relating to the Company’s structure, business and industry; the impact of the COVID-19 on Tuniu’s business operations, the travel industry and the economy of China and elsewhere generally; and the general economic and business condition in China and elsewhere. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tuniu does not undertake any obligation to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement the Company’s unaudited consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company has provided non-GAAP information related to income/(loss) from operations, net income/(loss), net income/(loss) attributable to ordinary shareholders of Tuniu Corporation, which excludes share-based compensation expenses and amortization of acquired intangible assets. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We believe that the non-GAAP financial measures used in this press release are useful for understanding and assessing underlying business performance and operating trends, and management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and when planning and forecasting future periods.

This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. Tuniu encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP Results” set forth at the end of this press release.

 

(Financial Tables Follow)

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands, except per share information)

 December 31, 2022 

 September 30, 2023 

 September 30, 2023 

 RMB 

 RMB 

 US$ 

ASSETS

Current assets

Cash and cash equivalents

153,835

323,260

44,306

Restricted cash 

44,052

28,560

3,914

Short-term investments

724,413

842,188

115,431

Accounts receivable, net

33,644

63,959

8,766

Amounts due from related parties

1,030

4,351

596

Prepayments and other current assets  

242,994

231,292

31,701

Total current assets

1,199,968

1,493,610

204,714

Non-current assets

Long-term investments

230,562

229,699

31,483

Property and equipment, net

85,182

77,435

10,613

Intangible assets, net

30,672

27,363

3,750

Land use right, net

92,590

91,044

12,479

Operating lease right-of-use assets, net

33,204

13,079

1,793

Goodwill

114,661

114,661

15,716

Other non-current assets

91,091

56,184

7,701

Total non-current assets

677,962

609,465

83,535

Total assets

1,877,930

2,103,075

288,249

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
EQUITY

Current liabilities

Short-term borrowings

7,517

8,217

1,126

Accounts and notes payable 

261,873

427,802

58,635

Amounts due to related parties

4,710

8,057

1,104

Salary and welfare payable

26,507

25,511

3,497

Taxes payable

4,047

3,102

425

Advances from customers

98,899

160,774

22,036

Operating lease liabilities, current

12,439

2,705

371

Accrued expenses and other current liabilities

358,312

329,312

45,136

Total current liabilities

774,304

965,480

132,330

Non-current liabilities

Operating lease liabilities, non-current

26,482

8,749

1,199

Deferred tax liabilities

6,839

6,230

854

Long-term borrowings

11,959

9,094

1,246

Total non-current liabilities

45,280

24,073

3,299

Total liabilities

819,584

989,553

135,629

Redeemable noncontrolling interests

27,200

27,200

3,728

Equity

Ordinary shares

249

249

34

Less: Treasury stock

(288,600)

(286,177)

(39,224)

Additional paid-in capital

9,125,655

9,133,839

1,251,897

Accumulated other comprehensive income

298,981

311,264

42,662

Accumulated deficit

(8,028,261)

(7,995,217)

(1,095,838)

Total Tuniu Corporation shareholders’ equity

1,108,024

1,163,958

159,531

Noncontrolling interests

(76,878)

(77,636)

(10,641)

Total equity

1,031,146

1,086,322

148,890

Total liabilities, redeemable noncontrolling interests and equity

1,877,930

2,103,075

288,247

 

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(All amounts in thousands, except per share information)

 Quarter Ended 

 Quarter Ended 

 Quarter Ended 

 Quarter Ended 

 September 30, 2022 

 June 30, 2023 

 September 30, 2023 

 September 30, 2023 

 RMB 

 RMB 

 RMB 

 US$ 

Revenues

Packaged tours

41,440

69,793

150,052

20,566

Others

36,418

30,159

28,139

3,857

Net revenues

77,858

99,952

178,191

24,423

Cost of revenues

(32,835)

(34,547)

(63,424)

(8,693)

Gross profit

45,023

65,405

114,767

15,730

Operating expenses

Research and product development

(9,729)

(13,820)

(18,400)

(2,522)

Sales and marketing

(26,502)

(24,906)

(39,583)

(5,425)

General and administrative

(24,270)

(21,741)

(27,089)

(3,713)

Other operating income

1,222

1,841

2,005

275

Total operating expenses

(59,279)

(58,626)

(83,067)

(11,385)

(Loss)/income from operations

(14,256)

6,779

31,700

4,345

Other income/(expenses)

Interest and investment income, net

5,491

7,122

7,397

1,014

Interest expense

(1,194)

(218)

(1,102)

(151)

Foreign exchange (losses)/gains, net

(16,167)

(15,152)

1,983

272

Other income, net

2,797

1,820

1,687

231

(Loss)/income before income tax expense

(23,329)

351

41,665

5,711

Income taxes benefit/(expense) 

376

(783)

(964)

(132)

Equity in (loss)/income of affiliates

(551)

653

(1,630)

(223)

Net (loss)/income

(23,504)

221

39,071

5,356

Net loss attributable to noncontrolling interests

(1,456)

(437)

(332)

(46)

Net (loss)/income attributable to ordinary shareholders of Tuniu
Corporation

(22,048)

658

39,403

5,402

Net (loss)/income

(23,504)

221

39,071

5,356

Other comprehensive income/(loss):

Foreign currency translation adjustment, net of nil tax

18,066

17,736

(1,413)

(194)

Comprehensive (loss)/income

(5,438)

17,957

37,658

5,162

Net (loss)/income per ordinary share attributable to ordinary shareholders –
basic and diluted

(0.06)

0.11

0.02

Net (loss)/income per ADS – basic and diluted*

(0.18)

0.33

0.06

Weighted average number of ordinary shares used in computing basic
(loss)/income per share

371,274,640

371,418,638

371,473,030

371,473,030

Weighted average number of ordinary shares used in computing diluted
(loss)/income per share

371,274,640

376,427,714

374,615,685

374,615,685

Share-based compensation expenses included are as follows

Cost of revenues

24

54

79

11

Research and product development

10

54

79

11

Sales and marketing

31

28

43

6

General and administrative

432

4,383

5,356

734

Total

497

4,519

5,557

762

*Each ADS represents three of the Company’s ordinary shares.

 

 

 

Reconciliations  of GAAP and Non-GAAP Results

(All amounts in thousands, except per share information)

 Quarter Ended September 30, 2023

 GAAP Result 

 Share-based 

Amortization of acquired 

 Non-GAAP 

 Compensation 

  intangible assets 

 Result 

Income from operations

31,700

5,557

828

38,085

Net income

39,071

5,557

828

45,456

Net income attributable to ordinary shareholders

39,403

5,557

828

45,788

 Quarter Ended June 30, 2023

 GAAP Result 

 Share-based 

Amortization of acquired 

 Non-GAAP 

 Compensation 

  intangible assets 

 Result 

Income from operations

6,779

4,519

828

12,126

Net income

221

4,519

828

5,568

Net income attributable to ordinary shareholders

658

4,519

828

6,005

 Quarter Ended September 30, 2022

 GAAP Result 

 Share-based 

Amortization of acquired 

 Non-GAAP 

 Compensation 

  intangible assets 

 Result 

Loss from operations

(14,256)

497

1,434

(12,325)

Net loss

(23,504)

497

1,434

(21,573)

Net loss attributable to ordinary shareholders

(22,048)

497

1,434

(20,117)