Oriental Grand Hotel Shaoxing

No. 88 Jishan South Road,Keqiao District,Shaoxing,Zhejiang

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Tuniu Announces Unaudited Second Quarter 2024 Financial Results

2024/8/6 18:15:22

NANJING, China, Aug. 6, 2024 /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, 2024.

Highlights for the Second Quarter of 2024

  • Revenues from package tours in the second quarter of 2024 increased by 28.6% year-over-year to RMB89.8 million (US$12.4 million[1]).
  • Gross profit in the second quarter of 2024 increased by 29.1% year-over-year to RMB84.4 million (US$11.6 million).
  • Income from operations was RMB34.5 million (US$4.7 million) in the second quarter of 2024, compared to an income from operations of RMB6.8 million in the second quarter of 2023.
  • Net income was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income of RMB0.2 million in the second quarter of 2023.

"Tuniu continued to demonstrate steady growth in the second quarter of 2024, with revenues from packaged tours, our core business, increasing by 28.6% year-over-year." said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "We also saw further improvement in our profitability with net income reaching a quarterly record high since our listing. This quarter, we continued to focus on our core business and products, further enhancing product quality and offerings in order to provide better services and travel experience for our customers. We also continued to adapt to changes in user shopping habits by strengthening our new media operations, in order to attract new customers through multiple channels to drive business growth. With the arrival of the summer season, Tuniu is well prepared to meet the opportunities and challenges ahead of us as we look forward to delivering strong value for our shareholders going forward."

[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.2672 on June 28, 2024 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.

 

Second Quarter 2024 Results

Net revenues were RMB116.9 million (US$16.1 million) in the second quarter of 2024, representing a year-over-year increase of 17.0% from the corresponding period in 2023.

  • Revenues from packaged tours were RMB89.8 million (US$12.4 million) in the second quarter of 2024, representing a year-over-year increase of 28.6% from the corresponding period in 2023. The increase was primarily due to the growth of organized tours.
  • Other revenues were RMB27.2 million (US$3.7 million) in the second quarter of 2024, representing a year-over-year decrease of 10.0% from the corresponding period in 2023. 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 RMB32.5 million (US$4.5 million) in the second quarter of 2024, representing a year-over-year decrease of 5.8% from the corresponding period in 2023. As a percentage of net revenues, cost of revenues was 27.8% in the second quarter of 2024, compared to 34.6% in the corresponding period in 2023.

Gross profit was RMB84.4 million (US$11.6 million) in the second quarter of 2024, representing a year-over-year increase of 29.1% from the corresponding period in 2023.

Operating expenses were RMB49.9 million (US$6.9 million) in the second quarter of 2024, representing a year-over-year decrease of 14.9% from the corresponding period in 2023. Net gain on disposals of subsidiaries which was allocated to operating expenses, was RMB24.6 million (US$3.4 million) in the second quarter of 2024.

  • Research and product development expenses were RMB12.7 million (US$1.7 million) in the second quarter of 2024, representing a year-over-year decrease of 8.2%. The decrease was primarily due to the decrease in research and product development personnel related expenses. Research and product development expenses as a percentage of net revenues were 10.9% in the second quarter of 2024, decreasing from 13.8% as a percentage of net revenues in the corresponding period in 2023.
  • Sales and marketing expenses were RMB40.2 million (US$5.5 million) in the second quarter of 2024, representing a year-over-year increase of 61.5%. The increase was primarily due to the increase in promotion expenses and sales and marketing personnel related expenses. Sales and marketing expenses as a percentage of net revenues were 34.4% in the second quarter of 2024, increasing from 24.9% as a percentage of net revenues in the corresponding period in 2023.
  • General and administrative expenses were RMB21.7 million (US$3.0 million) in the second quarter of 2024, which was in line with general and administrative expenses in the second quarter of 2023. General and administrative expenses as a percentage of net revenues were 18.6% in the second quarter of 2024, decreasing from 21.8% as a percentage of net revenues in the corresponding period in 2023.

Income from operations was RMB34.5 million (US$4.7 million) in the second quarter of 2024, compared to an income from operations of RMB6.8 million in the second quarter of 2023. Non-GAAP[2] income from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB12.3 million (US$1.7 million) in the second quarter of 2024.

Net income was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income of RMB0.2 million in the second quarter of 2023. Non-GAAP net income, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB20.8 million (US$2.9 million) in the second quarter of 2024.

Net income attributable to ordinary shareholders of Tuniu Corporation was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income attributable to ordinary shareholders of Tuniu Corporation of RMB0.7 million in the second quarter of 2023. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB20.8 million (US$2.9 million) in the second quarter of 2024.

As of June 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.3 billion (US$176.0 million).

[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 2024, Tuniu expects to generate RMB183.5 million to RMB192.4 million of net revenues, which represents a 3% to 8% increase year-over-year compared with net revenues in the corresponding period in 2023. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.

Share Repurchase Update

In March 2024, the Company's Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$10 million worth of its ordinary shares or American depositary shares representing ordinary shares. As of July 31, 2024, the Company had repurchased an aggregate of approximately 4.6 million ADSs for approximately US$4.1 million from the open market under the share repurchase program.

Conference Call Information

Tuniu's management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on August 6, 2024, (8:00 pm, Beijing/Hong Kong Time, on August 6, 2024) to discuss the second quarter 2024 financial results.

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

United States

1-888-346-8982

Hong Kong

852-301-84992

Mainland China    

4001-201203

International

1-412-902-4272

Conference ID: Tuniu 2Q 2024 Earnings Conference Call

A telephone replay will be available one hour after the end of the conference call through August 13, 2024. The dial-in details are as follows:

United States    

1-877-344-7529

International

1-412-317-0088

Replay Access Code: 9667429

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; Tuniu'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; government policies and regulations relating to Tuniu's structure, business and industry; the impact of health epidemics 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 from operations, net income, net income attributable to ordinary shareholders of Tuniu Corporation, which excludes share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries. 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)


 December 31, 2023 


 June 30, 2024 


 June 30, 2024 


 RMB 


 RMB 


 US$ 







ASSETS






Current assets






Cash and cash equivalents

378,989


652,819


89,831

Restricted cash 

65,902


26,675


3,671

Short-term investments

777,890


599,682


82,519

Accounts receivable, net

41,633


54,863


7,549

Amounts due from related parties

9,515


503


69

Prepayments and other current assets  

234,189


210,642


28,985

Total current assets

1,508,118


1,545,184


212,624







Non-current assets






Long-term investments

209,819


210,312


28,940

Property and equipment, net

57,479


54,567


7,509

Intangible assets, net

26,091


23,513


3,235

Land use right, net

90,529


89,498


12,315

Operating lease right-of-use assets, net

12,484


10,801


1,486

Other non-current assets

55,960


47,863


6,586

Total non-current assets

452,362


436,554


60,071

Total assets

1,960,480


1,981,738


272,695







LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
EQUITY






Current liabilities






Short-term borrowings

7,277


36


5

Accounts and notes payable 

317,104


366,052


50,370

Amounts due to related parties

6,405


8,724


1,200

Salary and welfare payable

21,401


19,750


2,718

Taxes payable

4,305


2,286


315

Advances from customers

270,197


223,609


30,770

Operating lease liabilities, current

2,709


3,297


454

Accrued expenses and other current liabilities

329,481


316,711


43,580

Total current liabilities

958,879


940,465


129,412







Non-current liabilities






Operating lease liabilities, non-current

5,348


3,556


489

Deferred tax liabilities

6,027


5,524


760

Long-term borrowings

10,395


-


-

Total non-current liabilities

21,770


9,080


1,249

Total liabilities

980,649


949,545


130,661







Redeemable noncontrolling interests

27,200


27,200


3,743







Equity






Ordinary shares

249


249


34

Less: Treasury stock

(285,983)


(311,052)


(42,802)

Additional paid-in capital

9,138,720


9,144,917


1,258,382

Accumulated other comprehensive income

305,416


311,751


42,898

Accumulated deficit

(8,127,552)


(8,070,619)


(1,110,554)

Total Tuniu Corporation shareholders' equity

1,030,850


1,075,246


147,958

Noncontrolling interests

(78,219)


(70,253)


(9,667)

Total equity

952,631


1,004,993


138,291

Total liabilities, redeemable noncontrolling interests and equity

1,960,480


1,981,738


272,695

 

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Income

(All amounts in thousands, except per share information)


 Quarter Ended 


 Quarter Ended 


 Quarter Ended 


 Quarter Ended 


 June 30, 2023 


 March 31, 2024 


 June 30, 2024 


 June 30, 2024 


 RMB 


 RMB 


 RMB 


 US$ 









Revenues








Packaged tours

69,793


82,951


89,782


12,354

Others

30,159


25,007


27,155


3,737

Net revenues

99,952


107,958


116,937


16,091

Cost of revenues

(34,547)


(25,913)


(32,530)


(4,476)

Gross profit

65,405


82,045


84,407


11,615









Operating expenses








Research and product development

(13,820)


(13,024)


(12,693)


(1,747)

Sales and marketing

(24,906)


(36,824)


(40,222)


(5,535)

General and administrative

(21,741)


(20,479)


(21,737)


(2,991)

Other operating income

1,841


582


24,735


3,404

Total operating expenses

(58,626)


(69,745)


(49,917)


(6,869)

Income from operations

6,779


12,300


34,490


4,746

Other income/(expenses)








Interest and investment income, net

7,122


10,041


8,221


1,131

Interest expense

(218)


(613)


(1,230)


(169)

Foreign exchange losses, net

(15,152)


(568)


(1,282)


(176)

Other income, net

1,820


1,279


1,822


251

Income before income tax expense

351


22,439


42,021


5,783

Income tax (loss)/benefit

(783)


64


(459)


(63)

Equity in income/(loss) of affiliates

653


(604)


1,438


198

Net income

221


21,899


43,000


5,918

Net  (loss)/income attributable to noncontrolling interests

(437)


7,988


(22)


(3)

Net income attributable to ordinary shareholders of Tuniu
Corporation

658


13,911


43,022


5,921









Net income

221


21,899


43,000


5,918

Other comprehensive income:








Foreign currency translation adjustment, net of nil tax

17,736


2,034


4,301


592

Comprehensive income

17,957


23,933


47,301


6,510









Net income per ordinary share attributable to ordinary
shareholders - basic and diluted

0.00


0.04


0.12


0.02

Net income per ADS - basic and diluted*

0.00


0.12


0.36


0.06









Weighted average number of ordinary shares used in computing
basic income per share

371,418,638


371,473,623


363,061,543


363,061,543

Weighted average number of ordinary shares used in computing
diluted income per share

376,427,714


373,323,330


365,317,172


365,317,172









Share-based compensation expenses included are as follows








Cost of revenues

54


65


65


9

Research and product development

54


65


65


9

Sales and marketing

28


31


31


4

General and administrative

4,383


4,830


1,429


197

Total

4,519


4,991


1,590


219









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








 

 

 

Tuniu Corporation

Reconciliations  of GAAP and Non-GAAP Results

(All amounts in thousands)












 Quarter Ended June 30, 2024


 GAAP Result 


 Share-based 


Amortization of acquired 


Net gain on


 Non-GAAP 



 Compensation 


  intangible assets 


 disposals of subsidiaries 


 Result 











Income from operations

34,490


1,590


828


(24,618)


12,290











Net income

43,000


1,590


828


(24,618)


20,800











Net income attributable to ordinary shareholders

43,022


1,590


828


(24,618)


20,822






















 Quarter Ended March 31, 2024


 GAAP Result 


 Share-based 


Amortization of acquired 


Net gain on


 Non-GAAP 



 Compensation 


  intangible assets 


 disposals of subsidiaries 


 Result 











Income from operations

12,300


4,991


828


-


18,119











Net income

21,899


4,991


828


-


27,718











Net income attributable to ordinary shareholders

13,911


4,991


828


-


19,730






















 Quarter Ended June 30, 2023


 GAAP Result 


 Share-based 


Amortization of acquired 


Net gain on


 Non-GAAP 



 Compensation 


  intangible assets 


 disposals of subsidiaries 


 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

 

 

 

Oriental Grand Hotel Shaoxing

No. 88 Jishan South Road,Keqiao District,Shaoxing,Zhejiang