Tuniu Announces Unaudited Third Quarter 2017 Financial Results

NANJING, China, Nov. 27, 2017 /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, 2017.

Highlights for the Third Quarter of 2017

    --  Net revenues in the third quarter of 2017 was RMB806.1 million (US$121.2
        million([1])), an increase of 53.5% year-over-year when compared with
        Non-GAAP([2]) net revenues in the third quarter of 2016.
    --  Gross profit in the third quarter of 2017 was RMB440.9 million (US$66.3
        million), an increase of 73.5% year-over-year when compared with
        Non-GAAP gross profit in the third quarter of 2016.
    --  Non-GAAP net income in the third quarter of 2017 was RMB39.7 million
        (US$6.0 million), compared with a Non-GAAP net loss of RMB496.7 million
        in the third quarter of 2016.

Comparison of Revenues

We adopted ASC 606 new revenue standard effective January 1, 2017 by applying the full retrospective method. To increase comparability of operating results and help investors better understand our business performance and operating trends, we have provided the following comparison between revenues, cost of revenues and gross profit for the third quarter of 2017 and the relevant Non-GAAP adjusted data for corresponding period in 2016:


                   (in thousands RMB)   Quarter Ended                 Quarter Ended              % of change

                                      September 30, 2016           September 30, 2017
    ---                               ------------------           ------------------

    Revenues
    --------

    Packaged tours                                         394,789                       604,047               53.0%
    --------------                                         -------                       -------                ----

    Others                                                 130,360                       202,038               55.0%
    ------                                                 -------                       -------                ----

    Net revenues                                           525,149                       806,085               53.5%
    ------------                                           -------                       -------                ----

    Cost of revenues                                     (271,087)                    (365,206)              34.7%
    ----------------                                      --------                      --------                ----

    Gross profit                                           254,062                       440,879               73.5%
    ------------                                           -------                       -------                ----


    [1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of
     US$1.00=RMB6.6533 on September 29, 2017 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and
     available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.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 attached "Reconciliations of GAAP and Non-GAAP Results" at the end
     of this press release reconciles Non-GAAP financial information with the Company's financial results under GAAP.

Additional information regarding our Non-GAAP definition and reconciliations of GAAP and Non-GAAP results are provided at the end of this announcement.

Mr. Donald Dunde Yu, Tuniu's co-founder, Chairman and Chief Executive Officer, said, "We are delighted to report solid results for the third quarter of 2017. Net revenues increased by 53.5% year-over-year during the third quarter while gross profit increased by 73.5% year-over-year. Tuniu continues to make exceptional progress with our core strategies of expanding our offline sales presence, implementing our own local tour operators and improving our technology infrastructure. These strategies are developing into our core competitive advantage, differentiating Tuniu from its industry peers as well as strengthening our leading position in China's attractive online leisure travel industry."

Ms. Maria Yi Xin, Tuniu's Chief Financial Officer, said, "The strategies that we have implemented in the past years are starting to benefit our operations and financials. As a result, for the first time since our listing, we have reached non-GAAP profitability, a positive step towards achieving long-term profitability. As we continue to execute our core strategies and optimize our operations, Tuniu will expand while maximizing value for our customers and shareholders."

Third Quarter 2017 Results

Net revenues were RMB806.1 million (US$121.2 million) in the third quarter of 2017, representing a year-over-year increase of 53.5%, compared with Non-GAAP net revenues, from the corresponding period in 2016.

    --  Revenues from packaged tours, which are mainly recognized on a net
        basis, were RMB604.0 million (US$90.8 million) in the third quarter of
        2017, representing a year-over-year increase of 53.0%, compared with
        Non-GAAP revenues from packaged tours, from the corresponding period in
        2016. The increase was primarily due to the growth of organized tours
        and self-guided tours.
    --  Other revenues were RMB202.0 million (US$30.4 million) in the third
        quarter of 2017, representing a year-over-year increase of 55.0%,
        compared with Non-GAAP other revenues, from the corresponding period in
        2016. The increase was due to a rise in revenues generated from
        financial services and commission fees received from certain
        travel-related products.

Cost of revenues was RMB365.2 million (US$54.9 million) in the third quarter of 2017, representing a year-over-year increase of 34.7%, compared with Non-GAAP cost of revenues, from the corresponding period in 2016. As a percentage of net revenues, cost of revenues was 45.3% in the third quarter of 2017, compared to 51.6% as a percentage of Non-GAAP net revenues in the corresponding period in 2016.

Gross profit was RMB440.9 million (US$66.3 million) in the third quarter of 2017, representing a year-over-year increase of 73.5%, compared with Non-GAAP gross profit, from the corresponding period in 2016. The increase in gross profit and gross margin was primarily due to improved economies of scale, increased operational efficiency and optimized supply chain management.

Operating expenses were RMB506.9 million (US$76.2 million) in the third quarter of 2017, representing a year-over-year decrease of 38.9% from the corresponding period in 2016. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB66.4 million (US$10.0 million) in the third quarter of 2017. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB440.5 million (US$66.2 million) in the third quarter of 2017, representing a year-over-year decrease of 43.2%.

    --  Research and product development expenses were RMB124.0 million (US$18.6
        million) in the third quarter of 2017, representing a year-over-year
        decrease of 26.2%. Non-GAAP research and product development expenses,
        which excluded share-based compensation expenses and amortization of
        acquired intangible assets of RMB2.4 million (US$0.4 million), were
        RMB121.6 million (US$18.3 million) in the third quarter of 2017,
        representing a decrease of 26.9% from the corresponding period in 2016.
        Research and product development expenses as a percentage of net
        revenues were 15.4% in the third quarter of 2017, decreasing from 32.0%
        as a percentage of Non-GAAP net revenues in the corresponding period in
        2016. The decrease was primarily due to the increase in efficiency
        resulting from economies of scale and implementation of operation
        systems, and optimization of research and product development personnel.
    --  Sales and marketing expenses were RMB224.8 million (US$33.8 million) in
        the third quarter of 2017, representing a year-over-year decrease of
        54.8%. Non-GAAP sales and marketing expenses, which excluded share-based
        compensation expenses and amortization of acquired intangible assets of
        RMB34.7 million (US$5.2 million), were RMB190.1 million (US$28.6
        million) in the third quarter of 2017, representing a year-over-year
        decrease of 59.2% from the corresponding period in 2016. Sales and
        marketing expenses as a percentage of net revenues were 27.9% in the
        third quarter of 2017, decreasing from 94.6% as a percentage of Non-GAAP
        net revenues in the corresponding period in 2016. The decrease was
        primarily due to the decline in brand promotions and preference for
        marketing channels with higher ROI.
    --  General and administrative expenses were RMB165.9 million (US$24.9
        million) in the third quarter of 2017, representing a year-over-year
        decrease of 1.3%. Non-GAAP general and administrative expenses, which
        excluded share-based compensation expenses and amortization of acquired
        intangible assets of RMB29.3 million (US$4.4 million), were RMB136.5
        million (US$20.5 million) for the third quarter of 2017, representing a
        year-over-year decrease of 7.6% from the corresponding period in 2016.
        General and administrative expenses as a percentage of net revenues were
        20.6% in the third quarter of 2017, decreasing from 32.0% as a
        percentage of Non-GAAP net revenues in the corresponding period in 2016.
        The decrease was primarily due to the increase in efficiency resulting
        from economies of scale and optimization of administrative personnel.

Loss from operations was RMB66.0 million (US$9.9 million) in the third quarter of 2017, compared to a loss from operations of RMB584.1 million in the third quarter of 2016. Non-GAAP income from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB0.6 million (US$0.1 million) in the third quarter of 2017.

Net loss was RMB27.0 million (US$4.1 million) in the third quarter of 2017, compared to a net loss of RMB559.0 million in the third quarter of 2016. Non-GAAP net income, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB39.7 million (US$6.0 million) in the third quarter of 2017.

Net loss attributable to ordinary shareholders was RMB29.3 million (US$4.4 million) in the third quarter of 2017, compared to a net loss attributable to ordinary shareholders of RMB556.2 million in the third quarter of 2016. Non-GAAP net income attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB37.4 million (US$5.6 million) in the third quarter of 2017.

As of September 30, 2017, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB4.4 billion (US$658.7 million).

Business Outlook

For the fourth quarter of 2017, Tuniu expects to generate RMB450.4 million to RMB466.5 million of net revenues, which represents 40% to 45% growth year-over-year compared with Non-GAAP net revenues in the corresponding period in 2016. 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 27, 2017, (9:00 pm, Beijing/Hong Kong Time, on November 27, 2017) to discuss the third quarter 2017 financial results.

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


    US:         +1-888-346-8982

    Hong Kong:  800-905945

    China:       4001-201203

    International: +1-412-902-4272

Conference ID: Tuniu 3Q 2017 Earnings Call

A telephone replay will be available one hour after the end of the conference through December 4, 2017. The dial-in details are as follows:


    US:         +1-877-344-7529

    International: +1-412-317-0088

Replay Access Code: 10114447

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 has over 2,000,000 stock keeping units (SKUs) of packaged tours, covering 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. 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 net revenue, 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 noncontrolling interests, 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 adjustment on net basis and timing of revenue recognition as in 2017, 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: ir@tuniu.com

(Financial Tables Follow)


                                                                         Tuniu Corporation

                                                          Unaudited Condensed Consolidated Balance Sheets

                                                     (All amounts in thousands, except per share information)

                                                               December 31, 2016                              September 30, 2017              September 30, 2017

                                                                      RMB                                            RMB                             US$
                                                                      ---                                            ---                             ---


    ASSETS

    Current assets

    Cash and cash equivalents                                                          1,085,236                                      847,984                        127,453

    Restricted cash                                                                      124,561                                       90,553                         13,610

    Short-term investments                                                             3,603,497                                    3,443,984                        517,635

    Accounts receivable, net                                                             235,673                                      443,072                         66,594

    Amounts due from related parties                                                     390,330                                      219,103                         32,931

    Prepayments and other current assets                                               1,632,329                                    1,352,965                        203,352

    Yield enhancement products and accrued interest                                      449,528                                      301,688                         45,344
                                                                                         -------                                      -------                         ------

    Total current assets                                                               7,521,154                                    6,699,349                      1,006,919
                                                                                       ---------                                    ---------                      ---------


    Non-current assets

    Long term investment                                                                  58,764                                       97,764                         14,694

    Property and equipment, net                                                          177,817                                      147,852                         22,222

    Intangible assets                                                                    592,267                                      497,718                         74,808

    Goodwill                                                                             147,639                                      147,639                         22,190

    Yield enhancement products over one year and                                         562,643                                      204,608                         30,753
    accrued interest

    Other non-current assets                                                              46,468                                      152,729                         22,955

    Long-term amounts due from related parties                                            64,902                                            -                             -

    Total non-current assets                                                           1,650,500                                    1,248,310                        187,622
                                                                                       ---------                                    ---------                        -------

    Total assets                                                                       9,171,654                                    7,947,659                      1,194,541
                                                                                       ---------                                    ---------                      ---------


    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities

    Accounts payable                                                                   1,022,704                                    1,473,376                        221,450

    Amounts due to related parties                                                        32,526                                      109,305                         16,429

    Salary and welfare payable                                                           192,455                                      166,681                         25,052

    Taxes payable                                                                         11,619                                       29,228                          4,393

    Advances from customers                                                            1,806,493                                    1,341,284                        201,597

    Accrued expenses and other current liabilities                                       589,288                                      417,723                         62,782

    Amounts due to the individual investors of yield                                     871,914                                      496,058                         74,558
    enhancement products


    Total current liabilities                                                          4,526,999                                    4,033,655                        606,261
                                                                                       ---------                                    ---------                        -------


    Non-current liabilities                                                               54,928                                       42,810                          6,434
                                                                                          ------                                       ------                          -----

    Total liabilities                                                                  4,581,927                                    4,076,465                        612,695
                                                                                       ---------                                    ---------                        -------


    Mezzanine equity

    Redeemable noncontrolling interests                                                   90,072                                       95,054                         14,287


    Shareholders' equity

    Ordinary shares                                                                          242                                          248                             37

    Less: Treasury stock                                                                (19,708)                                   (185,419)                      (27,869)

    Additional paid-in capital                                                         8,855,991                                    8,983,711                      1,350,264

    Accumulated other comprehensive income                                               400,925                                      297,156                         44,663

    Accumulated deficit                                                              (4,738,593)                                 (5,322,794)                     (800,023)
                                                                                      ----------                                   ----------                       --------

    Total Tuniu's shareholders' equity                                                 4,498,857                                    3,772,902                        567,072

    Noncontrolling interests                                                                 798                                        3,238                            487
                                                                                             ---                                        -----                            ---

    Total Shareholders' equity                                                         4,499,655                                    3,776,140                        567,559
                                                                                       ---------                                    ---------                        -------

    Total liabilities and shareholders' equity                                         9,171,654                                    7,947,659                      1,194,541
                                                                                       =========                                    =========                      =========


                                                                                         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, 2016                                        June 30, 2017             September 30, 2017             September 30, 2017

                                                                                RMB                                                     RMB                         RMB                             US$
                                                                                ---                                                    ---                          ---                            ---


    Revenues

    Packaged tours                                                                                3,936,978                                          339,304                        604,047                         90,789

    Others                                                                                          135,734                                          120,784                        202,038                         30,367
                                                                                                    -------                                          -------                        -------                         ------

    Net revenues                                                                                  4,072,712                                          460,088                        806,085                        121,156

    Cost of revenues                                                                            (3,827,529)                                       (219,530)                     (365,206)                      (54,891)
                                                                                                 ----------                                         --------                       --------                        -------

    Gross profit                                                                                    245,183                                          240,558                        440,879                         66,265
                                                                                                    -------                                          -------                        -------                         ------


    Operating expenses

    Research and product development                                                              (168,033)                                       (146,598)                     (123,974)                      (18,633)

    Sales and marketing                                                                           (496,841)                                       (221,888)                     (224,808)                      (33,789)

    General and administrative                                                                    (167,997)                                       (166,098)                     (165,874)                      (24,931)

    Other operating income                                                                            3,618                                            5,421                          7,757                          1,166

    Total operating expenses                                                                      (829,253)                                       (529,163)                     (506,899)                      (76,187)
                                                                                                   --------                                         --------                       --------                        -------

    Loss from operations                                                                          (584,070)                                       (288,605)                      (66,020)                       (9,922)

    Other income/(expenses)

    Interest income                                                                                  26,675                                           23,006                         39,864                          5,992

    Foreign exchange related gains/(losses), net                                                        414                                            (923)                         1,908                            287

    Other loss, net                                                                                   (430)                                           (229)                         (174)                          (26)
                                                                                                       ----                                             ----                           ----                            ---

    Loss before income tax expense                                                                (557,411)                                       (266,751)                      (24,422)                       (3,669)

    Income taxes expense                                                                            (1,612)                                         (4,067)                       (2,583)                         (388)
                                                                                                     ------                                           ------                         ------                           ----

    Net loss                                                                                      (559,023)                                       (270,818)                      (27,005)                       (4,057)

    Less:Net income/(loss) attributable to                                                          (2,797)                                         (1,853)                           609                             92
    noncontrolling interests

    Less: Net income attributable to redeemable                                                           -                                             226                            514                             77
    noncontrolling interests

    Net loss attributable to Tuniu Corporation                                                    (556,226)                                       (269,191)                      (28,128)                       (4,226)
                                                                                                   --------                                         --------                        -------                         ------

    Accretion on redeemable noncontrolling interest                                                       -                                         (1,435)                       (1,177)                         (177)

    Net loss attributable to ordinary shareholders                                                (556,226)                                       (270,626)                      (29,305)                       (4,403)
                                                                                                   ========                                         ========                        =======                         ======


    Net loss                                                                                      (559,023)                                       (270,818)                      (27,005)                       (4,057)

    Other comprehensive loss:

    Foreign currency translation adjustment, net of nil                                              29,500                                         (48,436)                      (36,143)                       (5,432)
    tax


    Comprehensive loss                                                                            (529,523)                                       (319,254)                      (63,148)                       (9,489)
                                                                                                   ========                                         ========                        =======                         ======


    Loss per share

    Net loss per ordinary share attributable to                                                      (1.47)                                          (0.72)                        (0.08)                        (0.01)
    ordinary shareholders - basic and diluted

    Net loss per ADS - basic and diluted*                                                            (4.41)                                          (2.16)                        (0.24)                        (0.03)

    Weighted average number of ordinary shares                                                  378,412,340                                      374,426,600                    372,335,675                    372,335,675
    used in computing basic and diluted loss per
    share


    Share-based compensation expenses included are as follows:

    Cost of revenues                                                                                    195                                              296                            228                             34

    Research and product development                                                                  1,387                                            1,752                          2,005                            301

    Sales and marketing                                                                                 320                                              427                            545                             82

    General and administrative                                                                       19,607                                           20,407                         28,451                          4,276

    Total                                                                                            21,509                                           22,882                         31,229                          4,693
                                                                                                     ======                                           ======                         ======                          =====


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


                                                                                                                                                                      Tuniu Corporation

                                                                                                                                                   Comparison with Non-GAAP data of corresponding periods

                                                                                                                                                  (All amounts in thousands, except per share information)


    To increase comparability of operating results and help investors better understand our business performance and operating trends, we have provided
    the following comparison of certain financial information for the third quarter of 2017 with relevant Non-GAAP adjusted data for corresponding periods
    in 2016.


                                                                                                                                      Quarter Ended                                               Quarter Ended              Quarter Ended                  Quarter Ended

                                                                                                                                    September 30, 2016                                            June 30, 2017            September 30, 2017             September 30, 2017

                                                                                                                                           RMB                                                         RMB                        RMB                            US$
                                                                                                                                           ---                                                        ---                         ---                            ---


    Net revenues                                                                                                                                               525,149                                             460,088                        806,085                        121,156


    Gross profit                                                                                                                                               254,062                                             240,558                        440,879                         66,265


    Operating expenses                                                                                                                                       (775,826)                                          (529,163)                     (506,899)                      (76,187)


    Loss from operations                                                                                                                                     (521,764)                                          (288,605)                      (66,020)                       (9,922)


    Net loss                                                                                                                                                 (496,717)                                          (270,818)                      (27,005)                       (4,057)


    Net loss attributable to ordinary shareholders                                                                                                           (494,443)                                          (270,626)                      (29,305)                       (4,403)


    Net loss per ordinary share attributable to ordinary                                                                                                        (1.31)                                             (0.72)                        (0.08)                        (0.01)
    shareholders - basic and diluted


                                                                                                                                                                                        Reconciliations  of GAAP and Non-GAAP Results

                                                                                                                                                                                   (All amounts in thousands, except per share information)


                                                                                                 Quarter Ended September 30, 2017
                                                                                                 --------------------------------

                                                                                                       GAAP Result                                                      Adjustment on net basis and timing of                                           Share-based                            Amortization of acquired               Non-GAAP
                                                                                                      -----------

                                                                                                 revenue recognition as in 2017                                                                                                            Compensation                      intangible assets                                 Result
                                                                                                ------------------------------                                                                                                            ------------                      -----------------                                 ------


    Net revenue                                                                                                        806,085                                                                                                           -                                -                                                  -                     806,085

    Cost of revenues                                                                                                 (365,206)                                                                                                          -                              228                                                   -                   (364,978)


    Research and product development                                                                                 (123,974)                                                                                                          -                            2,005                                                 399                    (121,570)

    Sales and marketing                                                                                              (224,808)                                                                                                          -                              545                                              34,163                    (190,100)

    General and administrative                                                                                       (165,874)                                                                                                          -                           28,451                                                 876                    (136,547)

    Other operating income                                                                                               7,757                                                                                                           -                                -                                                  -                       7,757

    Total operating expenses                                                                                         (506,899)                                                                                                          -                           31,001                                              35,438                    (440,460)
                                                                                                                      ========                                                                                                         ===                           ======                                              ======                     ========


    Income/(loss) from operations                                                                                     (66,020)                                                                                                          -                           31,229                                              35,438                          647


    Net income/(loss)                                                                                                 (27,005)                                                                                                          -                           31,229                                              35,438                       39,662


    Net income/(loss) attributable to                                                                                 (29,305)                                                                                                          -                           31,229                                              35,438                       37,362
    ordinary shareholders


    Net income/(loss) per ordinary share*

    -Basic                                                                                                              (0.08)                                                                                                                                                                                                                       0.10

    -Diluted                                                                                                            (0.08)                                                                                                                                                                                                                       0.10

    Net income/(loss) per ADS

    -Basic                                                                                                              (0.24)                                                                                                                                                                                                                       0.30

    -Diluted                                                                                                            (0.24)                                                                                                                                                                                                                       0.30

    Weighted average number of ordinary shares

    -Basic                                                                                                         372,335,675                                                                                                                                                                                                                 372,335,675

    -Diluted                                                                                                       372,335,675                                                                                                                                                                                                                 380,259,980


                                                                                                  Quarter Ended June 30, 2017
                                                                                                  ---------------------------

                                                                                                       GAAP Result                                                      Adjustment on net basis and timing of                                           Share-based                            Amortization of acquired               Non-GAAP
                                                                                                      -----------

                                                                                                 revenue recognition as in 2017                                                                                                            Compensation                      intangible assets                                 Result
                                                                                                ------------------------------                                                                                                            ------------                      -----------------                                 ------


    Net revenue                                                                                                        460,088                                                                                                           -                                -                                                  -                     460,088

    Cost of revenues                                                                                                 (219,530)                                                                                                          -                              296                                                   -                   (219,234)


    Research and product development                                                                                 (146,598)                                                                                                          -                            1,752                                                 399                    (144,447)

    Sales and marketing                                                                                              (221,888)                                                                                                          -                              427                                              34,163                    (187,298)

    General and administrative                                                                                       (166,098)                                                                                                          -                           20,407                                                 793                    (144,898)

    Other operating income                                                                                               5,421                                                                                                           -                                -                                                  -                       5,421

    Total operating expenses                                                                                         (529,163)                                                                                                          -                           22,586                                              35,355                    (471,222)
                                                                                                                      ========                                                                                                         ===                           ======                                              ======                     ========


    Loss from operations                                                                                             (288,605)                                                                                                          -                           22,882                                              35,355                    (230,368)


    Net loss                                                                                                         (270,818)                                                                                                          -                           22,882                                              35,355                    (212,581)


    Net loss attributable to ordinary                                                                                (270,626)                                                                                                          -                           22,882                                              35,355                    (212,389)
    shareholders


    Net loss per ordinary share                                                                                         (0.72)                                                                                                                                                                                                                     (0.57)
    attributable to ordinary shareholders
    - basic and diluted

    Net loss per ADS - basic and diluted                                                                                (2.16)                                                                                                                                                                                                                     (1.71)

    Weighted average number of                                                                                     374,426,600                                                                                                                                                                                                                 374,426,600
    ordinary shares used in computing
    basic and diluted loss per share


                                                                                               Quarter Ended September 30, 2016
                                                                                               --------------------------------

                                                                                                       GAAP Result                                                      Adjustment on net basis and timing of                                           Share-based                            Amortization of acquired               Non-GAAP
                                                                                                      -----------

                                                                                                 revenue recognition as in 2017                                                                                                            Compensation                      intangible assets                                 Result
                                                                                                ------------------------------                                                                                                            ------------                      -----------------                                 ------


    Net revenue                                                                                                      4,072,712                                                                                                 (3,547,563)                                -                                                  -                     525,149

    Cost of revenues                                                                                               (3,827,529)                                                                                                  3,556,247                               195                                                   -                   (271,087)


    Research and product development                                                                                 (168,033)                                                                                                          -                            1,387                                                 399                    (166,247)

    Sales and marketing                                                                                              (496,841)                                                                                                    (3,055)                              320                                              34,113                    (465,463)

    General and administrative                                                                                       (167,997)                                                                                                          -                           19,607                                                 656                    (147,734)

    Other operating income                                                                                               3,618                                                                                                           -                                -                                                  -                       3,618

    Total operating expenses                                                                                         (829,253)                                                                                                    (3,055)                           21,314                                              35,168                    (775,826)
                                                                                                                      ========                                                                                                      ======                            ======                                              ======                     ========


    Loss from operations                                                                                             (584,070)                                                                                                      5,629                            21,509                                              35,168                    (521,764)


    Net loss                                                                                                         (559,023)                                                                                                      5,629                            21,509                                              35,168                    (496,717)


    Net loss attributable to                                                                                           (2,797)                                                                                                        523                                 -                                                  -                     (2,274)
    noncontrolling interests

    Net loss attributable to ordinary                                                                                (556,226)                                                                                                      5,106                            21,509                                              35,168                    (494,443)
    shareholders


    Net loss per ordinary share                                                                                         (1.47)                                                                                                                                                                                                                     (1.31)
    attributable to ordinary shareholders
    - basic and diluted

    Net loss per ADS - basic and diluted                                                                                (4.41)                                                                                                                                                                                                                     (3.93)

    Weighted average number of                                                                                     378,412,340                                                                                                                                                                                                                 378,412,340
    ordinary shares used in computing
    basic and diluted loss per share


    *Basic net income/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the
    periods. Diluted net income/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive
    potential ordinary shares outstanding during the periods, including the dilutive effect of share-based awards as determined under the treasury stock method.

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SOURCE Tuniu