Tuniu Announces Unaudited Second Quarter 2019 Financial Results
NANJING, China, Aug. 28, 2019 /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 second quarter ended June 30, 2019.
Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer, said, "During the quarter, we remain focused on improving our products, strengthening our supply chain and expanding our distribution channels. By newly launching innovative travel products while upgrading our existing selection, we are able to capture the diversified demands of Chinese travelers. Together with the utilization of centralized procurements across the company and development of our local tour operator service network, we will be able to improve our monetization capability."
Ms. Maria Yi Xin, Tuniu's Chief Financial Officer, said, "Our offline retail stores, social e-commerce, and S2B2C distribution continue to diversify our sales channel, making Tuniu's high quality products and services accessible to more customers across China. We expect these channels to make more meaningful contributions to our financials going forward. We will also increase the level of automation in order to improve the efficiency of our employees and the overall company."
Second Quarter 2019 Results
Net revenues were RMB520.3 million (US$75.81[1] million) in the second quarter of 2019, representing a year-over-year decrease of 0.9% from the corresponding period in 2018.
- Revenues from packaged tours were RMB429.5 million (US$62.6 million) in the second quarter of 2019, representing a year-over-year decrease of 1.9% from the corresponding period in 2018. The decrease was primarily due to the decline in demand for travel to certain destinations.
- Other revenues were RMB90.8 million (US$13.2 million) in the second quarter of 2019, representing a year-over-year increase of 3.7% from the corresponding period in 2018. The increase was primarily due to a rise in commission fees received from certain travel-related products.
Cost of revenues was RMB287.3 million (US$41.9 million) in the second quarter of 2019, representing a year-over-year increase of 4.7% from the corresponding period in 2018. As a percentage of net revenues, cost of revenues was 55.2% in the second quarter of 2019 compared to 52.3% in the corresponding period in 2018.
Gross profit was RMB233.0 million (US$33.9 million) in the second quarter of 2019, representing a year-over-year decrease of 7.1% from the corresponding period in 2018.
Operating expenses were RMB432.2 million (US$63.0 million) in the second quarter of 2019, representing a year-over-year increase of 16.2% from the corresponding period in 2018. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB49.7 million (US$7.2 million) in the second quarter of 2019. Non-GAAP2[2] operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB382.5 million (US$55.7 million) in the second quarter of 2019, representing a year-over-year increase of 22.6%.
- Research and product development expenses were RMB80.2 million (US$11.7 million) in the second quarter of 2019, representing a year-over-year increase of 4.1%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB4.6 million (US$0.7 million), were RMB75.6 million (US$11.0 million) in the second quarter of 2019, representing a year-over-year increase of 1.1% from the corresponding period in 2018. The increase was primarily due to an increase in research and product development personnel related expenses.
- Sales and marketing expenses were RMB224.6 million (US$32.7 million) in the second quarter of 2019, representing a year-over-year increase of 29.3%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB35.7 million (US$5.2 million), were RMB188.9 million (US$27.5 million) in the second quarter of 2019, representing a year-over-year increase of 35.7% from the corresponding period in 2018. The increase was primarily due to the expansion of our offline retail stores and our strengthened promotional campaigns on certain marketing channels.
- General and administrative expenses were RMB134.4 million (US$19.6 million) in the second quarter of 2019, representing a year-over-year increase of 3.9%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB9.4 million (US$1.4 million), were RMB125.0 million (US$18.2 million) in the second quarter of 2019, representing a year-over-year increase of 17.8% from the corresponding period in 2018. The increase was primarily due to an increase in general and administrative personnel related expenses.
Loss from operations was RMB199.2 million (US$29.0 million) in the second quarter of 2019, compared to a loss from operations of RMB121.1 million in the second quarter of 2018. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB147.7 million (US$21.5 million) in the second quarter of 2019.
Net loss was RMB167.2 million (US$24.3 million) in the second quarter of 2019, compared to a net loss of RMB82.8 million in the second quarter of 2018. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB115.6 million (US$16.8 million) in the second quarter of 2019.
Net loss attributable to ordinary shareholders was RMB168.0 million (US$24.5 million) in the second quarter of 2019, compared to a net loss attributable to ordinary shareholders of RMB79.6 million in the second quarter of 2018. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB116.4 million (US17.0 million) in the second quarter of 2019.
As of June 30, 2019, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB2.0 billion (US$295.3 million).
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.8650 on June 28, 2019 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. |
Business Outlook
For the third quarter of 2019, Tuniu expects to generate RMB763.1 million to RMB801.3 million of net revenues, which represents 0% to 5% increase year-over-year. 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 August 28, 2019, (8:00 pm, Beijing/Hong Kong Time, on August 28, 2019) to discuss the second quarter 2019 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 2Q 2019 Earnings Call
A telephone replay will be available one hour after the end of the conference through September 4, 2019. The dial-in details are as follows:
US: |
+1-877-344-7529 |
International: |
+1-412-317-0088 |
Replay Access Code: 10134396
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 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 covers over 420 departing cities throughout China and all popular destinations worldwide. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network, including over 3,000 professional customer service representatives, 24/7 call centers, over 500 offline retail stores and 33 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; 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 cost of revenues, research and product development expenses, sales and marketing expenses, general and administrative expenses, operating expenses, loss from operations, net loss, net loss attributable to ordinary shareholders, net loss per ordinary share attributable to ordinary shareholders-basic and diluted and net loss per ADS, which excludes share-based compensation expenses and amortization of acquired intangible assets. 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. 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.
A limitation of using non-GAAP financial measures excluding share-based compensation expenses and amortization of acquired intangible assets is that share-based compensation expenses and amortization of acquired intangible assets have been – and will continue to be – significant recurring expenses in the Company's business. You should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies.
For investor and media inquiries, please contact:
China
Mary Chen
Investor Relations Director
Tuniu Corporation
Phone: +86-25-6960-9988
E-mail: [email protected]
(Financial Tables Follow)
Tuniu Corporation |
|||||
Unaudited Condensed Consolidated Balance Sheets |
|||||
(All amounts in thousands, except per share information) |
|||||
December 31, 2018 |
June 30, 2019 |
June 30, 2019 |
|||
RMB |
RMB |
US$ |
|||
ASSETS |
|||||
Current assets |
|||||
Cash and cash equivalents |
560,356 |
361,914 |
52,719 |
||
Restricted cash |
270,670 |
250,758 |
36,527 |
||
Short-term investments |
859,211 |
1,414,306 |
206,017 |
||
Accounts receivable, net |
347,547 |
458,172 |
66,740 |
||
Amounts due from related parties |
696,520 |
675,752 |
98,434 |
||
Prepayments and other current assets |
1,673,584 |
1,564,558 |
227,903 |
||
Total current assets |
4,407,888 |
4,725,460 |
688,340 |
||
Non-current assets |
|||||
Long-term investments |
1,302,506 |
1,484,644 |
216,263 |
||
Property and equipment, net |
187,360 |
210,397 |
30,648 |
||
Intangible assets, net |
317,885 |
252,518 |
36,783 |
||
Land use right, net |
100,836 |
99,805 |
14,538 |
||
Operating lease right-of-use assets, net* |
- |
170,455 |
24,830 |
||
Goodwill |
159,409 |
179,959 |
26,214 |
||
Other non-current assets |
81,039 |
85,035 |
12,387 |
||
Total non-current assets |
2,149,035 |
2,482,813 |
361,663 |
||
Total assets |
6,556,923 |
7,208,273 |
1,050,003 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current liabilities |
|||||
Short-term borrowings |
49,312 |
83,628 |
12,182 |
||
Accounts and notes payable |
1,305,610 |
1,796,340 |
261,666 |
||
Amounts due to related parties |
77,159 |
53,398 |
7,778 |
||
Salary and welfare payable |
104,480 |
89,526 |
13,041 |
||
Taxes payable |
23,316 |
6,971 |
1,015 |
||
Advances from customers |
1,058,946 |
1,214,681 |
176,938 |
||
Operating lease liabilities, current* |
- |
86,694 |
12,628 |
||
Accrued expenses and other current liabilities |
483,832 |
600,253 |
87,437 |
||
Total current liabilities |
3,102,655 |
3,931,491 |
572,685 |
||
Non-current liabilities |
|||||
Operating lease liabilities, non-current* |
- |
92,614 |
13,491 |
||
Deferred tax liabilities |
19,855 |
20,308 |
2,958 |
||
Long-term borrowings |
4,492 |
5,963 |
869 |
||
Other non-current liabilities |
16,069 |
10,308 |
1,502 |
||
Total non-current liabilities |
40,416 |
129,193 |
18,820 |
||
Total liabilities |
3,143,071 |
4,060,684 |
591,505 |
||
Mezzanine equity |
|||||
Redeemable noncontrolling interests |
69,319 |
71,854 |
10,467 |
||
Shareholders' equity |
|||||
Ordinary shares |
249 |
249 |
36 |
||
Less: Treasury stock |
(304,535) |
(311,435) |
(45,366) |
||
Additional paid-in capital |
9,061,979 |
9,094,445 |
1,324,755 |
||
Accumulated other comprehensive income |
284,079 |
286,447 |
41,726 |
||
Accumulated deficit |
(5,691,409) |
(6,008,423) |
(875,225) |
||
Total Tuniu's shareholders' equity |
3,350,363 |
3,061,283 |
445,926 |
||
Noncontrolling interests |
(5,830) |
14,452 |
2,105 |
||
Total Shareholders' equity |
3,344,533 |
3,075,735 |
448,031 |
||
Total liabilities and shareholders' equity |
6,556,923 |
7,208,273 |
1,050,003 |
||
*On 1 January 2019, the Company adopted ASC 842, Leases and used the optional transition method to initially apply this new lease standard at the adoption date. |
|||||
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 |
||||
June 30, 2018 |
March 31, 2019 |
June 30, 2019 |
June 30, 2019 |
||||
RMB |
RMB |
RMB |
US$ |
||||
Revenues |
|||||||
Packaged tours |
437,609 |
365,893 |
429,482 |
62,561 |
|||
Others |
87,641 |
90,964 |
90,848 |
13,234 |
|||
Net revenues |
525,250 |
456,857 |
520,330 |
75,795 |
|||
Cost of revenues |
(274,475) |
(206,019) |
(287,330) |
(41,854) |
|||
Gross profit |
250,775 |
250,838 |
233,000 |
33,941 |
|||
Operating expenses |
|||||||
Research and product development |
(77,044) |
(80,016) |
(80,197) |
(11,682) |
|||
Sales and marketing |
(173,638) |
(218,820) |
(224,582) |
(32,714) |
|||
General and administrative |
(129,317) |
(135,072) |
(134,389) |
(19,576) |
|||
Other operating income |
8,078 |
2,543 |
6,925 |
1,009 |
|||
Total operating expenses |
(371,921) |
(431,365) |
(432,243) |
(62,963) |
|||
Loss from operations |
(121,146) |
(180,527) |
(199,243) |
(29,022) |
|||
Other income/(expenses) |
|||||||
Interest and investment income |
44,592 |
38,671 |
36,645 |
5,338 |
|||
Interest expense |
(36) |
(6,810) |
(6,970) |
(1,015) |
|||
Foreign exchange (losses)/gains, net |
(6,633) |
(303) |
1,090 |
159 |
|||
Other (loss)/income, net |
(121) |
268 |
586 |
85 |
|||
Loss before income tax expense |
(83,344) |
(148,701) |
(167,892) |
(24,455) |
|||
Income tax benefit |
524 |
525 |
738 |
108 |
|||
Net loss |
(82,820) |
(148,176) |
(167,154) |
(24,347) |
|||
Net (loss)/income attributable to noncontrolling interests |
(1,721) |
1,169 |
(444) |
(65) |
|||
Net income attributable to redeemable noncontrolling interests |
255 |
714 |
245 |
36 |
|||
Net loss attributable to Tuniu Corporation |
(81,354) |
(150,059) |
(166,955) |
(24,318) |
|||
Reversal of/(Accretion on) redeemable noncontrolling interest |
1,733 |
(543) |
(1,033) |
(150) |
|||
Net loss attributable to ordinary shareholders |
(79,621) |
(150,602) |
(167,988) |
(24,468) |
|||
Net loss |
(82,820) |
(148,176) |
(167,154) |
(24,347) |
|||
Other comprehensive (loss)/income: |
|||||||
Foreign currency translation adjustment, net of nil tax |
23,802 |
(4,742) |
7,110 |
1,036 |
|||
Comprehensive loss |
(59,018) |
(152,918) |
(160,044) |
(23,311) |
|||
Loss per share |
|||||||
Net loss per ordinary share attributable to ordinary shareholders - |
(0.21) |
(0.41) |
(0.45) |
(0.07) |
|||
Net loss per ADS - basic and diluted* |
(0.63) |
(1.23) |
(1.35) |
(0.21) |
|||
Weighted average number of ordinary shares used in computing |
381,234,313 |
369,190,766 |
369,343,738 |
369,343,738 |
|||
Share-based compensation expenses included are as follows: |
|||||||
Cost of revenues |
250 |
1,869 |
1,827 |
266 |
|||
Research and product development |
1,901 |
5,041 |
4,112 |
599 |
|||
Sales and marketing |
231 |
1,416 |
1,519 |
221 |
|||
General and administrative |
22,485 |
14,835 |
8,723 |
1,271 |
|||
Total |
24,867 |
23,161 |
16,181 |
2,357 |
|||
*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 June 30, 2019 |
|||||||
GAAP |
Share-based |
Amortization of acquired |
Non-GAAP |
||||
Result |
Compensation |
intangible assets |
Result |
||||
Cost of revenues |
(287,330) |
1,827 |
- |
(285,503) |
|||
Research and product development |
(80,197) |
4,112 |
513 |
(75,572) |
|||
Sales and marketing |
(224,582) |
1,519 |
34,163 |
(188,900) |
|||
General and administrative |
(134,389) |
8,723 |
704 |
(124,962) |
|||
Other operating income |
6,925 |
- |
- |
6,925 |
|||
Total operating expenses |
(432,243) |
14,354 |
35,380 |
(382,509) |
|||
Loss from operations |
(199,243) |
16,181 |
35,380 |
(147,682) |
|||
Net loss |
(167,154) |
16,181 |
35,380 |
(115,593) |
|||
Net loss attributable to ordinary shareholders |
(167,988) |
16,181 |
35,380 |
(116,427) |
|||
Net loss per ordinary share attributable to ordinary |
(0.45) |
(0.32) |
|||||
Net loss per ADS - basic and diluted (RMB) |
(1.35) |
(0.96) |
|||||
Weighted average number of ordinary shares used in |
369,343,738 |
369,343,738 |
|||||
Quarter Ended March 31, 2019 |
|||||||
GAAP |
Share-based |
Amortization of acquired |
Non-GAAP |
||||
Result |
Compensation |
intangible assets |
Result |
||||
Cost of revenues |
(206,019) |
1,869 |
- |
(204,150) |
|||
Research and product development |
(80,016) |
5,041 |
513 |
(74,462) |
|||
Sales and marketing |
(218,820) |
1,416 |
34,163 |
(183,241) |
|||
General and administrative |
(135,072) |
14,835 |
703 |
(119,534) |
|||
Other operating income |
2,543 |
- |
- |
2,543 |
|||
Total operating expenses |
(431,365) |
21,292 |
35,379 |
(374,694) |
|||
Loss from operations |
(180,527) |
23,161 |
35,379 |
(121,987) |
|||
Net loss |
(148,176) |
23,161 |
35,379 |
(89,636) |
|||
Net loss attributable to ordinary shareholders |
(150,602) |
23,161 |
35,379 |
(92,062) |
|||
Net loss per ordinary share attributable to ordinary |
(0.41) |
(0.25) |
|||||
Net loss per ADS - basic and diluted (RMB) |
(1.23) |
(0.75) |
|||||
Weighted average number of ordinary shares used in |
369,190,766 |
369,190,766 |
|||||
Quarter Ended June 30, 2018 |
|||||||
GAAP |
Share-based |
Amortization of acquired |
Non-GAAP |
||||
Result |
Compensation |
intangible assets |
Result |
||||
Cost of revenues |
(274,475) |
250 |
- |
(274,225) |
|||
Research and product development |
(77,044) |
1,901 |
399 |
(74,744) |
|||
Sales and marketing |
(173,638) |
231 |
34,163 |
(139,244) |
|||
General and administrative |
(129,317) |
22,485 |
781 |
(106,051) |
|||
Other operating income |
8,078 |
- |
- |
8,078 |
|||
Total operating expenses |
(371,921) |
24,617 |
35,343 |
(311,961) |
|||
Loss from operations |
(121,146) |
24,867 |
35,343 |
(60,936) |
|||
Net loss |
(82,820) |
24,867 |
35,343 |
(22,610) |
|||
Net loss attributable to ordinary shareholders |
(79,621) |
24,867 |
35,343 |
(19,411) |
|||
Net loss per ordinary share attributable to ordinary |
(0.21) |
(0.05) |
|||||
Net loss per ADS - basic and diluted (RMB) |
(0.63) |
(0.15) |
|||||
Weighted average number of ordinary shares used in |
381,234,313 |
381,234,313 |
|||||
*Basic net loss per ordinary share attributable to ordinary shareholders is calculated by dividing net loss attributable to ordinary shareholders by the |
|||||||
SOURCE Tuniu
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