Tuniu Announces Unaudited Fourth Quarter and Fiscal Year 2017 Financial Results
Tuniu Announces Unaudited Fourth Quarter and Fiscal Year 2017 Financial Results
Net Revenues([1]) in 2017 Increased by 53.3% Year-Over-Year
Gross Profit in 2017 Increased by 80.9% Year-Over-Year
NANJING, China, March 14, 2018 /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 fourth quarter and fiscal year ended December 31, 2017.
Highlights for the Fourth Quarter of 2017
-- Net revenues in the fourth quarter of 2017 were RMB469.9 million
(US$72.2 million([2])), an increase of 46.1% year-over-year when
compared with Non-GAAP([3]) net revenues in the fourth quarter of 2016.
-- Gross profit in the fourth quarter of 2017 was RMB235.2 million (US$36.1
million), an increase of 39.6% year-over-year when compared with
Non-GAAP gross profit in the fourth quarter of 2016.
Highlights for the Fiscal Year 2017 and Recent Development
-- Net revenues in 2017 were RMB2.2 billion (US$336.9 million), an increase
of 53.3% year-over-year when compared with Non-GAAP net revenues in
2016.
-- Gross profit in 2017 was RMB1.2 billion (US$179.5 million), an increase
of 80.9% year-over-year when compared with Non-GAAP gross profit in
2016.
-- Operating expenses were RMB2.1 billion (US$315.3 million) in 2017, a
decrease of 34.6% year-over-year from 2016.
-- Net loss was RMB771.3 million (US$118.6 million) in 2017, compared to a
net loss of RMB2.4 billion in 2016.
-- As of February 28, 2018, Tuniu had 14 local tour operators in total,
among which 12 are located in China([4]) and 2 are located
overseas([5]).
[1] The section below entitled "Comparison of Revenues" provides information for the comparison between
revenues, cost of revenues and gross profit for the fourth quarter and fiscal year of 2017 and the
relevant Non-GAAP adjusted data for corresponding periods in 2016.
[2] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate
of US$1.00=RMB6.5063 on December 29, 2017 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.
[3] 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.
[4] The 12 local tour operators are located in Beijing, Xiamen, Wuyishan, Guilin, Nanning, Changsha,
Zhangjiajie, Xi'an, Luoyang, Nanjing, Guiyang and Haikou in China.
[5] The 2 local tour operators are located in Japan and Thailand.
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 fourth quarter and fiscal year of 2017 and the relevant Non-GAAP adjusted data for corresponding periods in 2016:
(in thousands RMB) Quarter Quarter % of Year Year % of
change change
Ended Ended Ended Ended
December December December December
31, 2016 31, 2017 31, 2016 31, 2017
--- -------- -------- -------- --------
Revenues
--------
Packaged tours 219,460 290,054 32.2% 1,061,299 1,589,353 49.8%
-------------- ------- ------- ---- --------- --------- ----
Others 102,263 179,832 75.9% 386,283 602,747 56.0%
------ ------- ------- ---- ------- ------- ----
Total revenues 321,723 469,886 46.1% 1,447,582 2,192,100 51.4%
-------------- ------- ------- ---- --------- --------- ----
Net revenues 321,723 469,886 46.1% 1,430,275 2,192,100 53.3%
------------ ------- ------- ---- --------- --------- ----
Cost of revenues (153,261) (234,733) 53.2% (784,540) (1,024,206) 30.5%
---------------- -------- -------- ---- -------- ---------- ----
Gross profit 168,462 235,153 39.6% 645,735 1,167,894 80.9%
------------ ------- ------- ---- ------- --------- ----
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, "2017 has been a year filled with achievements and milestones for Tuniu. We successfully expanded our own local tour operators on the service side and we continued to diversify our sales channels on the distribution side, which included opening offline retail stores throughout China. Going into 2018, we look forward to continuing the implementation of our core strategies of expanding our sales network, strengthening our service network and improving our technology network."
Ms. Maria Yi Xin, Tuniu's Chief Financial Officer, said, "For the full year 2017, Tuniu's net revenues increased by 53.3% year-over-year while gross profit increased by 80.9% year-over-year. Tuniu has lowered overall user acquisition costs through the expansion of its sales network and improved online content. We have also improved product margins through direct procurement and local tour operators, and continue to offer more choices to our customers through our destination-based products. Combining these elements, we are able to optimize the lifetime value of customers on Tuniu."
Fourth Quarter 2017 Results
Net revenues were RMB469.9 million (US$72.2 million) in the fourth quarter of 2017, representing a year-over-year increase of 46.1%, 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 RMB290.1 million (US$44.6 million) in the fourth quarter of
2017, representing a year-over-year increase of 32.2%, 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 RMB179.8 million (US$27.6 million) in the fourth
quarter of 2017, representing a year-over-year increase of 75.9%,
compared with Non-GAAP other revenues, from the corresponding period in
2016. The increase was primarily due to a rise in revenues generated
from financial services and commission fees received from certain
travel-related products.
Cost of revenues was RMB234.7 million (US$36.1 million) in the fourth quarter of 2017, representing a year-over-year increase of 53.2%, compared with Non-GAAP cost of revenues, from the corresponding period in 2016. As a percentage of net revenues, cost of revenues was 50.0% in the fourth quarter of 2017, compared to 47.6% as a percentage of Non-GAAP net revenues in the corresponding period in 2016.
Gross profit was RMB235.2 million (US$36.1 million) in the fourth quarter of 2017, representing a year-over-year increase of 39.6%, compared with Non-GAAP gross profit, from the corresponding period in 2016. The increase in gross profit was primarily due to improved economies of scale and optimized supply chain management.
Operating expenses were RMB456.0 million (US$70.1 million) in the fourth quarter of 2017, representing a year-over-year decrease of 40.2% from the corresponding period in 2016. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB54.0 million (US$8.3 million) in the fourth quarter of 2017. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB402.0 million (US$61.8 million) in the fourth quarter of 2017, representing a year-over-year decrease of 42.9%.
-- Research and product development expenses were RMB111.2 million (US$17.1
million) in the fourth quarter of 2017, representing a year-over-year
decrease of 34.7%. Non-GAAP research and product development expenses,
which excluded share-based compensation expenses and amortization of
acquired intangible assets of RMB1.7 million (US$0.3 million), were
RMB109.4 million (US$16.8 million) in the fourth quarter of 2017,
representing a year-over-year decrease of 34.9% from the corresponding
period in 2016. Research and product development expenses as a
percentage of net revenues were 23.7% in the fourth quarter of 2017,
decreasing from 52.9% 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 RMB193.7 million (US$29.8 million) in
the fourth quarter of 2017, representing a year-over-year decrease of
51.3%. Non-GAAP sales and marketing expenses, which excluded share-based
compensation expenses and amortization of acquired intangible assets of
RMB34.4 million (US$5.3 million), were RMB159.3 million (US$24.5
million) in the fourth quarter of 2017, representing a year-over-year
decrease of 56.5% from the corresponding period in 2016. Sales and
marketing expenses as a percentage of net revenues were 41.2% in the
fourth quarter of 2017, decreasing from 123.7% 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 RMB154.5 million (US$23.7
million) in the fourth quarter of 2017, representing a year-over-year
decrease of 24.8%. Non-GAAP general and administrative expenses, which
excluded share-based compensation expenses and amortization of acquired
intangible assets of RMB17.9 million (US$2.7 million), were RMB136.6
million (US$21.0 million) in the fourth quarter of 2017, representing a
year-over-year decrease of 24.5% from the corresponding period in 2016.
General and administrative expenses as a percentage of net revenues were
32.9% in the fourth quarter of 2017, decreasing from 63.9% 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 RMB220.8 million (US$33.9 million) in the fourth quarter of 2017, compared to a loss from operations of RMB588.2 million in the fourth quarter of 2016. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB166.7 million (US$25.6 million) in the fourth quarter of 2017.
Net loss was RMB186.1 million (US$28.6 million) in the fourth quarter of 2017, compared to a net loss of RMB567.9 million in the fourth quarter of 2016. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB132.0 million (US$20.3 million) in the fourth quarter of 2017.
Net loss attributable to ordinary shareholders was RMB184.9 million (US$28.4 million) in the fourth quarter of 2017, compared to a net loss attributable to ordinary shareholders of RMB561.1 million in the fourth quarter of 2016. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB130.7 million (US$20.1 million) in the fourth quarter of 2017.
As of December 31, 2017, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.7 billion (US$562.6million).
Fiscal Year 2017 Results
Net revenues were RMB2.2 billion (US$336.9 million) in 2017, representing a year-over-year increase of 53.3%, compared with Non-GAAP net revenues in 2016.
-- Revenues from packaged tours, which are mainly recognized on a net
basis, were RMB1.6 billion (US$244.3 million) in 2017, representing a
year-over-year increase of 49.8%, compared with Non-GAAP revenues from
packaged tours in 2016. The increase was primarily due to the growth of
organized tours and self-guided tours.
-- Other revenues were RMB602.7 million (US$92.6 million) in 2017,
representing a year-over-year increase of 56.0%, compared with Non-GAAP
other revenues in 2016. The increase was primarily due to a rise in
revenues generated from financial services and commission fees received
from certain travel-related products.
Cost of revenues was RMB1.0 billion (US$157.4 million) in 2017, representing a year-over-year increase of 30.5%, compared with Non-GAAP cost of revenues in 2016. As a percentage of net revenues, cost of revenues was 46.7% in 2017, compared to 54.9% as a percentage of Non-GAAP net revenues in 2016.
Gross profit was RMB1.2 billion (US$179.5 million) in 2017, representing a year-over-year increase of 80.9%, compared with Non-GAAP gross profit 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 RMB2.1 billion (US$315.3 million) in 2017, representing a year-over-year decrease of 34.6% from 2016. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB239.1 million (US$36.8 million) in 2017. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB1.8 billion (US$278.5 million) in 2017, representing a year-over-year decrease of 37.8%.
-- Research and product development expenses were RMB541.1 million (US$83.2
million) in 2017, representing a year-over-year decrease of 10.0%.
Non-GAAP research and product development expenses, which excluded
share-based compensation expenses and amortization of acquired
intangible assets of RMB8.5 million (US$1.3 million), were RMB532.7
million (US$81.9 million) in 2017, representing a year-over-year
decrease of 10.3% from 2016. Research and product development expenses
as a percentage of net revenues were 24.7% in 2017, decreasing from
42.0% as a percentage of Non-GAAP net revenues 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 RMB894.1 million (US$137.4 million) in
2017, representing a year-over-year decrease of 52.9%. Non-GAAP sales
and marketing expenses, which excluded share-based compensation expenses
and amortization of acquired intangible assets of RMB138.3 million
(US$21.3 million), were RMB755.8 million (US$116.2 million) in 2017,
representing a year-over-year decrease of 57.3% from 2016. Sales and
marketing expenses as a percentage of net revenues were 40.8% in 2017,
decreasing from 132.9% as a percentage of Non-GAAP net revenues 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 RMB637.8 million (US$98.0
million) in 2017, representing a year-over-year decrease of 3.2%.
Non-GAAP general and administrative expenses, which excluded share-based
compensation expenses and amortization of acquired intangible assets of
RMB92.4 million (US$14.2 million), were RMB545.4 million (US$83.8
million) in 2017, representing a year-over-year decrease of 4.4% from
2016. General and administrative expenses as a percentage of net
revenues were 29.1% in 2017, decreasing from 46.1% as a percentage of
Non-GAAP net revenues 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 RMB883.4 million (US$135.8 million) in 2017, compared to a loss from operations of RMB2.5 billion in 2016. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB643.2 million (US$98.9 million) in 2017.
Net loss was RMB771.3 million (US$118.6 million) in 2017, compared to a net loss of RMB2.4 billion in 2016. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB531.1 million (US$81.6 million) in 2017.
Net loss attributable to ordinary shareholders was RMB773.0 million (US$118.8 million) in 2017, compared to a net loss attributable to ordinary shareholders of RMB2.4 billion in 2016. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB532.8 million (US$81.9 million) in 2017.
Business Outlook
For the first quarter of 2018, Tuniu expects to generate RMB469.7 million to RMB488.0 million of net revenues, which represents 3% to 7% growth 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 March 14, 2018, (8:00 pm, Beijing/Hong Kong Time, on March 14, 2018) to discuss the fourth quarter and fiscal year 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 4Q 2017 Earnings Call
A telephone replay will be available one hour after the end of the conference through March 21, 2018. The dial-in details are as follows:
US: +1-877-344-7529
International: +1-412-317-0088
Replay Access Code: 10117726
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 fourth 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 December 31, 2017 December 31, 2017
RMB RMB US$
--- --- ---
ASSETS
Current assets
Cash and cash equivalents 1,085,236 484,101 74,405
Restricted cash 124,561 91,810 14,111
Short-term investments 3,603,497 3,084,634 474,100
Accounts receivable, net 235,673 286,627 44,054
Amounts due from related parties 390,330 171,331 26,333
Prepayments and other current assets 1,632,329 939,463 144,393
Yield enhancement products and accrued interest 449,528 31,337 4,816
------- ------ -----
Total current assets 7,521,154 5,089,303 782,212
--------- --------- -------
Non-current assets
Long term investments 58,764 484,991 74,542
Property and equipment, net 177,817 148,278 22,790
Intangible assets, net 592,267 460,634 70,798
Goodwill 147,639 147,639 22,692
Yield enhancement products over one year and 562,643 170,505 26,206
accrued interest
Other non-current assets 46,468 156,455 24,047
Long-term amounts due from related parties 64,902 - -
Total non-current assets 1,650,500 1,568,502 241,075
--------- --------- -------
Total assets 9,171,654 6,657,805 1,023,287
--------- --------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 1,022,704 852,500 131,027
Amounts due to related parties 32,526 86,923 13,360
Salary and welfare payable 192,455 187,561 28,828
Taxes payable 11,619 32,036 4,924
Advances from customers 1,806,493 1,210,615 186,068
Accrued expenses and other current liabilities 589,288 373,690 57,435
Amounts due to the individual investors of yield 871,914 177,971 27,354
enhancement products
Total current liabilities 4,526,999 2,921,296 448,996
--------- --------- -------
Non-current liabilities 54,928 42,481 6,529
------ ------ -----
Total liabilities 4,581,927 2,963,777 455,525
--------- --------- -------
Mezzanine equity
Redeemable noncontrolling interests 90,072 96,719 14,865
Shareholders' equity
Ordinary shares 242 248 38
Less: Treasury stock (19,708) (185,419) (28,498)
Additional paid-in capital 8,855,991 9,013,793 1,385,395
Accumulated other comprehensive income 400,925 272,386 41,865
Accumulated deficit (4,738,593) (5,505,897) (846,241)
---------- ---------- --------
Total Tuniu's shareholders' equity 4,498,857 3,595,111 552,559
Noncontrolling interests 798 2,198 338
--- ----- ---
Total Shareholders' equity 4,499,655 3,597,309 552,897
--------- --------- -------
Total liabilities and shareholders' equity 9,171,654 6,657,805 1,023,287
========= ========= =========
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
December 31, 2016 September 30, 2017 December 31, 2017 December 31, 2017
RMB RMB RMB US$
--- --- --- ---
Revenues
Packaged tours 1,847,888 604,047 290,054 44,580
Others 105,505 202,038 179,832 27,640
------- ------- ------- ------
Net revenues 1,953,393 806,085 469,886 72,220
Cost of revenues (1,778,914) (365,206) (234,733) (36,078)
---------- -------- -------- -------
Gross profit 174,479 440,879 235,153 36,142
------- ------- ------- ------
Operating expenses
Research and product development (170,123) (123,974) (111,151) (17,084)
Sales and marketing (398,095) (224,808) (193,696) (29,771)
General and administrative (205,500) (165,874) (154,490) (23,745)
Other operating income 11,070 7,757 3,348 515
Total operating expenses (762,648) (506,899) (455,989) (70,085)
-------- -------- -------- -------
Loss from operations (588,169) (66,020) (220,836) (33,943)
Other income/(expenses)
Interest income 21,704 39,864 44,426 6,828
Foreign exchange gains/(losses), net (1,702) 1,908 (2,009) (309)
Other loss, net (2,310) (174) (147) (23)
------ ---- ---- ---
Loss before income tax expense (570,477) (24,422) (178,566) (27,447)
Income taxes benefit /(expense) 2,610 (2,583) (7,569) (1,163)
----- ------ ------ ------
Net loss (567,867) (27,005) (186,135) (28,610)
Net income/(loss) attributable to noncontrolling (6,838) 609 (2,939) (452)
interests
Net income/(loss) attributable to redeemable (34) 514 (93) (14)
noncontrolling interests
Net loss attributable to Tuniu Corporation (560,995) (28,128) (183,103) (28,144)
-------- ------- -------- -------
Accretion on redeemable noncontrolling interest (106) (1,177) (1,757) (270)
Net loss attributable to ordinary shareholders (561,101) (29,305) (184,860) (28,414)
======== ======= ======== =======
Net loss (567,867) (27,005) (186,135) (28,610)
Other comprehensive income/(loss):
Foreign currency translation adjustment, 141,523 (36,143) (24,770) (3,807)
net of nil tax
Comprehensive loss (426,344) (63,148) (210,905) (32,417)
======== ======= ======== =======
Loss per share
Net loss per ordinary share attributable to (1.48) (0.08) (0.48) (0.07)
ordinary shareholders - basic and diluted
Net loss per ADS - basic and diluted* (4.44) (0.24) (1.44) (0.21)
Weighted average number of ordinary shares 378,785,214 372,335,675 387,993,534 387,993,534
used in computing basic and diluted loss per
share
Share-based compensation expenses included are as follows:
Cost of revenues 276 228 230 35
Research and product development 1,709 2,005 1,324 203
Sales and marketing 419 545 201 31
General and administrative 23,657 28,451 17,089 2,627
Total 26,061 31,229 18,844 2,896
====== ====== ====== =====
*Each ADS represents three of the Company's ordinary shares.
Tuniu Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except per share information)
Year Ended Year Ended Year Ended
December 31, 2016 December 31, 2017 December 31, 2017
RMB RMB US$
--- --- ---
Revenues
Packaged tours 10,147,148 1,589,353 244,279
Others 401,100 602,747 92,641
------- ------- ------
Total revenues 10,548,248 2,192,100 336,920
Less: Business and related
taxes (17,307) - -
------- --- ---
Net revenues 10,530,941 2,192,100 336,920
Cost of revenues (9,891,736) (1,024,206) (157,418)
---------- ---------- --------
Gross profit 639,205 1,167,894 179,502
------- --------- -------
Operating expenses
Research and product
development (601,402) (541,126) (83,170)
Sales and marketing (1,900,397) (894,148) (137,428)
General and administrative (658,790) (637,795) (98,027)
Other operating income 22,323 21,749 3,343
Total operating expenses (3,138,266) (2,051,320) (315,282)
---------- ---------- --------
Loss from operations (2,499,061) (883,426) (135,780)
Other income/(expenses)
Interest income 87,305 130,250 20,019
Foreign exchange losses,
net (9,734) (2,394) (368)
Other loss, net (2,553) (121) (19)
------ ---- ---
Loss before income tax
expense (2,424,043) (755,691) (116,148)
Income taxes benefit
/(expense) 1,711 (15,625) (2,402)
----- ------- ------
Net loss (2,422,332) (771,316) (118,550)
Net loss attributable to
noncontrolling interests (15,104) (4,934) (758)
Net income/(loss)
attributable to redeemable (34) 922 142
noncontrolling interests
Net loss attributable to
Tuniu Corporation (2,407,194) (767,304) (117,934)
---------- -------- --------
Accretion on redeemable
noncontrolling interest (106) (5,725) (880)
Net loss attributable to
ordinary shareholders (2,407,300) (773,029) (118,814)
========== ======== ========
Net loss (2,422,332) (771,316) (118,550)
Other comprehensive income/(loss):
Foreign currency
translation adjustment,
net of nil tax 233,900 (128,539) (19,756)
------- -------- -------
Comprehensive loss (2,188,432) (899,855) (138,306)
========== ======== ========
Loss per share
Net loss per ordinary share
attributable to ordinary (6.45) (2.04) (0.31)
shareholders - basic and diluted
Net loss per ADS -basic
and diluted* (19.35) (6.12) (0.93)
Weighted average number of
ordinary shares used in 373,347,855 378,230,039 378,230,039
computing basic and diluted loss per
share
Share-based compensation expenses included are
as follows:
Cost of revenues 891 1,075 165
Research and product
development 5,702 6,864 1,055
Sales and marketing 1,390 1,650 254
General and administrative 84,436 89,086 13,692
Total 92,419 98,675 15,166
====== ====== ======
*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 fourth quarter and the fiscal year of 2017
with relevant Non-GAAP adjusted data for corresponding periods in 2016.
Quarter Ended Quarter Ended Quarter Ended Quarter Ended
December 31, September 30, December 31, December 31,
2016 2017 2017 2017
RMB RMB RMB US$
--- --- --- ---
Net revenues 321,723 806,085 469,886 72,220
Gross profit 168,462 440,879 235,153 36,142
Operating expenses (704,048) (506,899) (455,989) (70,085)
Loss from operations (535,586) (66,020) (220,836) (33,943)
Net loss (515,284) (27,005) (186,135) (28,610)
Net loss attributable to ordinary shareholders (507,927) (29,305) (184,860) (28,414)
Net loss per ordinary share attributable to ordinary (1.34) (0.08) (0.48) (0.07)
shareholders - basic and diluted
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 GAAP financial
information for the fiscal year of 2017 with relevant Non-GAAP adjusted data for corresponding periods in 2016.
Year Ended Year Ended
December 31, December 31,
2016 2017
RMB RMB
--- ---
Net revenues 1,430,275 2,192,100
Gross profit 645,735 1,167,894
Operating expenses (2,913,056) (2,051,320)
Loss from operations (2,267,321) (883,426)
Net loss (2,190,592) (771,316)
Net loss attributable to ordinary shareholders (2,175,560) (773,029)
Net loss per ordinary share attributable to ordinary (5.83) (2.04)
shareholders - basic and diluted
Reconciliations of GAAP and Non-GAAP Results
(All amounts in thousands, except per share information)
Quarter Ended December 31, 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 revenues 469,886 - - - 469,886
Cost of revenues (234,733) - 230 - (234,503)
Research and product development (111,151) - 1,324 399 (109,428)
Sales and marketing (193,696) - 201 34,163 (159,332)
General and administrative (154,490) - 17,089 777 (136,624)
Other operating income 3,348 - - - 3,348
Total operating expenses (455,989) - 18,614 35,339 (402,036)
======== === ====== ====== ========
Loss from operations (220,836) - 18,844 35,339 (166,653)
Net loss (186,135) - 18,844 35,339 (131,952)
Net loss attributable to ordinary shareholders (184,860) - 18,844 35,339 (130,677)
Net loss per ordinary share attributable to ordinary (0.48) (0.34)
shareholders - basic and diluted
Net loss per ADS - basic and diluted (1.44) (1.02)
Weighted average number of ordinary shares used 387,993,534 387,993,534
in computing basic and diluted loss per share
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 revenues 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)
======== === ====== ====== ========
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 ordinary (29,305) - 31,229 35,438 37,362
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 December 31, 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 revenues 1,953,393 (1,631,670) - - 321,723
Cost of revenues (1,778,914) 1,625,377 276 - (153,261)
-
Research and product development (170,123) - 1,709 399 (168,015)
Sales and marketing (398,095) (2,718) 419 34,168 (366,226)
General and administrative (205,500) - 23,657 966 (180,877)
Other operating income 11,070 - - - 11,070
Total operating expenses (762,648) (2,718) 25,785 35,533 (704,048)
======== ====== ====== ====== ========
Loss from operations (588,169) (9,011) 26,061 35,533 (535,586)
Net loss (567,867) (9,011) 26,061 35,533 (515,284)
Net loss attributable to noncontrolling interests (6,838) (591) - - (7,429)
Net loss attributable to ordinary shareholders (561,101) (8,420) 26,061 35,533 (507,927)
Net loss per ordinary share attributable to ordinary (1.48) (1.34)
shareholders - basic and diluted
Net loss per ADS - basic and diluted (4.44) (4.02)
Weighted average number of ordinary shares used 378,785,214 378,785,214
in computing basic and diluted loss per share
Reconciliations of GAAP and Non-GAAP Results
(All amounts in thousands, except per share information)
Year Ended December 31, 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 revenues 2,192,100 - - - 2,192,100
Cost of revenues (1,024,206) - 1,075 - (1,023,131)
Research and product development (541,126) - 6,864 1,596 (532,666)
Sales and marketing (894,148) - 1,650 136,652 (755,846)
General and administrative (637,795) - 89,086 3,273 (545,436)
Other operating income 21,749 - - - 21,749
Total operating expenses (2,051,320) - 97,600 141,521 (1,812,199)
========== === ====== ======= ==========
Loss from operations (883,426) - 98,675 141,521 (643,230)
Net loss (771,316) - 98,675 141,521 (531,120)
Net loss attributable to ordinary shareholders (773,029) - 98,675 141,521 (532,833)
Net loss per ordinary share attributable to (2.04) (1.41)
ordinary shareholders - basic and diluted
Net loss per ADS - basic and diluted (6.12) (4.23)
Weighted average number of ordinary shares used 378,230,039 378,230,039
in computing basic and diluted loss per share
Year Ended December 31, 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 revenues 10,530,941 (9,100,666) - - 1,430,275
Cost of revenues (9,891,736) 9,106,597 891 (292) (784,540)
-
Research and product development (601,402) - 5,702 1,747 (593,953)
Sales and marketing (1,900,397) (8,027) 1,390 136,239 (1,770,795)
General and administrative (658,790) - 84,436 3,723 (570,631)
Other operating income 22,323 - - - 22,323
Total operating expenses (3,138,266) (8,027) 91,528 141,709 (2,913,056)
========== ====== ====== ======= ==========
Loss from operations (2,499,061) (2,096) 92,419 141,417 (2,267,321)
Net loss (2,422,332) (2,096) 92,419 141,417 (2,190,592)
Net loss attributable to noncontrolling interests (15,104) - - - (15,104)
Net loss attributable to ordinary shareholders (2,407,300) (2,096) 92,419 141,417 (2,175,560)
Net loss per ordinary share attributable to ordinary (6.45) (5.83)
shareholders - basic and diluted
Net loss per ADS - basic and diluted (19.35) (17.49)
Weighted average number of ordinary shares used 373,347,855 373,347,855
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
