Tuniu Announces Unaudited Second Quarter 2019 Financial Results
NANJING, China, Aug. 28, 2019 /PRNewswire/ -- Tuniu Corporation (NASDAQ:TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced its unaudited financial results for the second quarter ended June 30, 2019.
Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer, said, "During the quarter, we remain focused on improving our products, strengthening our supply chain and expanding our distribution channels. By newly launching innovative travel products while upgrading our existing selection, we are able to capture the diversified demands of Chinese travelers. Together with the utilization of centralized procurements across the company and development of our local tour operator service network, we will be able to improve our monetization capability."
Ms. Maria Yi Xin, Tuniu's Chief Financial Officer, said, "Our offline retail stores, social e-commerce, and S2B2C distribution continue to diversify our sales channel, making Tuniu's high quality products and services accessible to more customers across China. We expect these channels to make more meaningful contributions to our financials going forward. We will also increase the level of automation in order to improve the efficiency of our employees and the overall company."
Second Quarter 2019 Results
Net revenues were RMB520.3 million (US$75.81([1]) million) in the second quarter of 2019, representing a year-over-year decrease of 0.9% from the corresponding period in 2018.
-- Revenues from packaged tours were RMB429.5 million (US$62.6 million) in
the second quarter of 2019, representing a year-over-year decrease of
1.9% from the corresponding period in 2018. The decrease was primarily
due to the decline in demand for travel to certain destinations.
-- Other revenues were RMB90.8 million (US$13.2 million) in the second
quarter of 2019, representing a year-over-year increase of 3.7% from the
corresponding period in 2018. The increase was primarily due to a rise
in commission fees received from certain travel-related products.
Cost of revenues was RMB287.3 million (US$41.9 million) in the second quarter of 2019, representing a year-over-year increase of 4.7% from the corresponding period in 2018. As a percentage of net revenues, cost of revenues was 55.2% in the second quarter of 2019 compared to 52.3% in the corresponding period in 2018.
Gross profit was RMB233.0 million (US$33.9 million) in the second quarter of 2019, representing a year-over-year decrease of 7.1% from the corresponding period in 2018.
Operating expenses were RMB432.2 million (US$63.0 million) in the second quarter of 2019, representing a year-over-year increase of 16.2% from the corresponding period in 2018. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB49.7 million (US$7.2 million) in the second quarter of 2019. Non-GAAP2([2]) operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB382.5 million (US$55.7 million) in the second quarter of 2019, representing a year-over-year increase of 22.6%.
-- Research and product development expenses were RMB80.2 million (US$11.7
million) in the second quarter of 2019, representing a year-over-year
increase of 4.1%. Non-GAAP research and product development expenses,
which excluded share-based compensation expenses and amortization of
acquired intangible assets of RMB4.6 million (US$0.7 million), were
RMB75.6 million (US$11.0 million) in the second quarter of 2019,
representing a year-over-year increase of 1.1% from the corresponding
period in 2018. The increase was primarily due to an increase in
research and product development personnel related expenses.
-- Sales and marketing expenses were RMB224.6 million (US$32.7 million) in
the second quarter of 2019, representing a year-over-year increase of
29.3%. Non-GAAP sales and marketing expenses, which excluded share-based
compensation expenses and amortization of acquired intangible assets of
RMB35.7 million (US$5.2 million), were RMB188.9 million (US$27.5
million) in the second quarter of 2019, representing a year-over-year
increase of 35.7% from the corresponding period in 2018. The increase
was primarily due to the expansion of our offline retail stores and our
strengthened promotional campaigns on certain marketing channels.
-- General and administrative expenses were RMB134.4 million (US$19.6
million) in the second quarter of 2019, representing a year-over-year
increase of 3.9%. Non-GAAP general and administrative expenses, which
excluded share-based compensation expenses and amortization of acquired
intangible assets of RMB9.4 million (US$1.4 million), were RMB125.0
million (US$18.2 million) in the second quarter of 2019, representing a
year-over-year increase of 17.8% from the corresponding period in 2018.
The increase was primarily due to an increase in general and
administrative personnel related expenses.
Loss from operations was RMB199.2 million (US$29.0 million) in the second quarter of 2019, compared to a loss from operations of RMB121.1 million in the second quarter of 2018. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB147.7 million (US$21.5 million) in the second quarter of 2019.
Net loss was RMB167.2 million (US$24.3 million) in the second quarter of 2019, compared to a net loss of RMB82.8 million in the second quarter of 2018. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB115.6 million (US$16.8 million) in the second quarter of 2019.
Net loss attributable to ordinary shareholders was RMB168.0 million (US$24.5 million) in the second quarter of 2019, compared to a net loss attributable to ordinary shareholders of RMB79.6 million in the second quarter of 2018. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB116.4 million (US17.0 million) in the second quarter of 2019.
As of June 30, 2019, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB2.0 billion (US$295.3 million).
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of
US$1.00=RMB6.8650 on June 28, 2019 as set forth in H.10 statistical release of the U.S. Federal Reserve Board
and available at https://www.federalreserve.gov/releases/h10/default.htm.
[2] The section below entitled "About Non-GAAP Financial Measures" provides information about the use of Non-
GAAP financial measures in this press release, and the table captioned "Reconciliations of GAAP and Non-GAAP
Results" set forth at the end of this press release reconciles Non-GAAP financial information with the
Company's financial results under GAAP.
Business Outlook
For the third quarter of 2019, Tuniu expects to generate RMB763.1 million to RMB801.3 million of net revenues, which represents 0% to 5% increase year-over-year. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.
Conference Call Information
Tuniu's management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on August 28, 2019, (8:00 pm, Beijing/Hong Kong Time, on August 28, 2019) to discuss the second quarter 2019 financial results.
To participate in the conference call, please dial the following numbers:
US: +1-888-346-8982
Hong Kong: +852-301-84992
Mainland China: 4001-201203
International: +1-412-902-4272
Conference ID: Tuniu 2Q 2019 Earnings Call
A telephone replay will be available one hour after the end of the conference through September 4, 2019. The dial-in details are as follows:
US: +1-877-344-7529
International: +1-412-317-0088
Replay Access Code: 10134396
Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.tuniu.com.
About Tuniu
Tuniu (Nasdaq:TOUR) is a leading online leisure travel company in China that offers a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. Tuniu covers over 420 departing cities throughout China and all popular destinations worldwide. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network, including over 3,000 professional customer service representatives, 24/7 call centers, over 500 offline retail stores and 33 self-operated local tour operators. For more information, please visit http://ir.tuniu.com.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Tuniu may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Tuniu's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but are not limited to the following: Tuniu's goals and strategies; the growth of the online leisure travel market in China; the demand for Tuniu's products and services; its relationships with customers and travel suppliers; the Company's ability to offer competitive travel products and services; Tuniu's future business development, results of operations and financial condition; competition in the online travel industry in China; relevant government policies and regulations relating to the Company's structure, business and industry; and the general economic and business condition in China and elsewhere. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tuniu does not undertake any obligation to update such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement the Company's unaudited consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company has provided non-GAAP information related to cost of revenues, research and product development expenses, sales and marketing expenses, general and administrative expenses, operating expenses, loss from operations, net loss, net loss attributable to ordinary shareholders, net loss per ordinary share attributable to ordinary shareholders-basic and diluted and net loss per ADS, which excludes share-based compensation expenses and amortization of acquired intangible assets. We believe that the non-GAAP financial measures used in this press release are useful for understanding and assessing underlying business performance and operating trends, and management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and when planning and forecasting future periods. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP Results" set forth at the end of this press release.
A limitation of using non-GAAP financial measures excluding share-based compensation expenses and amortization of acquired intangible assets is that share-based compensation expenses and amortization of acquired intangible assets have been - and will continue to be - significant recurring expenses in the Company's business. You should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies.
For investor and media inquiries, please contact:
China
Mary Chen
Investor Relations Director
Tuniu Corporation
Phone: +86-25-6960-9988
E-mail: ir@tuniu.com
(Financial Tables Follow)
Tuniu Corporation
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except per share information)
December 31, 2018
June 30, 2019
June 30, 2019
RMB
RMB
US$
---
ASSETS
Current assets
Cash and cash equivalents 560,356 361,914 52,719
Restricted cash 270,670 250,758 36,527
Short-term investments 859,211 1,414,306 206,017
Accounts receivable, net 347,547 458,172 66,740
Amounts due from related parties 696,520 675,752 98,434
Prepayments and other current assets 1,673,584 1,564,558 227,903
Total current assets 4,407,888 4,725,460 688,340
Non-current assets
Long-term investments 1,302,506 1,484,644 216,263
Property and equipment, net 187,360 210,397 30,648
Intangible assets, net 317,885 252,518 36,783
Land use right, net 100,836 99,805 14,538
Operating lease right-of-use assets, net* - 170,455 24,830
Goodwill 159,409 179,959 26,214
Other non-current assets 81,039 85,035 12,387
Total non-current assets 2,149,035 2,482,813 361,663
Total assets 6,556,923 7,208,273 1,050,003
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings 49,312 83,628 12,182
Accounts and notes payable 1,305,610 1,796,340 261,666
Amounts due to related parties 77,159 53,398 7,778
Salary and welfare payable 104,480 89,526 13,041
Taxes payable 23,316 6,971 1,015
Advances from customers 1,058,946 1,214,681 176,938
Operating lease liabilities, current* - 86,694 12,628
Accrued expenses and other current liabilities 483,832 600,253 87,437
Total current liabilities 3,102,655 3,931,491 572,685
Non-current liabilities
Operating lease liabilities, non-current* - 92,614 13,491
Deferred tax liabilities 19,855 20,308 2,958
Long-term borrowings 4,492 5,963 869
Other non-current liabilities 16,069 10,308 1,502
Total non-current liabilities 40,416 129,193 18,820
Total liabilities 3,143,071 4,060,684 591,505
Mezzanine equity
Redeemable noncontrolling interests 69,319 71,854 10,467
Shareholders' equity
Ordinary shares 249 249 36
Less: Treasury stock (304,535) (311,435) (45,366)
Additional paid-in capital 9,061,979 9,094,445 1,324,755
Accumulated other comprehensive income 284,079 286,447 41,726
Accumulated deficit (5,691,409) (6,008,423) (875,225)
Total Tuniu's shareholders' equity 3,350,363 3,061,283 445,926
Noncontrolling interests (5,830) 14,452 2,105
Total Shareholders' equity 3,344,533 3,075,735 448,031
Total liabilities and shareholders' equity 6,556,923 7,208,273 1,050,003
*On 1 January 2019, the Company adopted ASC 842, Leases and used the optional transition method to initially apply this new lease standard at the adoption date.
Right-of-use assets and lease liabilities were recognized on the Company's consolidated financial statements.
Tuniu Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except per share information)
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
June 30, 2018
March 31, 2019
June 30, 2019
June 30, 2019
RMB
RMB
RMB
US$
---
Revenues
Packaged tours 437,609 365,893 429,482 62,561
Others 87,641 90,964 90,848 13,234
Net revenues 525,250 456,857 520,330 75,795
Cost of revenues (274,475) (206,019) (287,330) (41,854)
Gross profit 250,775 250,838 233,000 33,941
Operating expenses
Research and product development (77,044) (80,016) (80,197) (11,682)
Sales and marketing (173,638) (218,820) (224,582) (32,714)
General and administrative (129,317) (135,072) (134,389) (19,576)
Other operating income 8,078 2,543 6,925 1,009
Total operating expenses (371,921) (431,365) (432,243) (62,963)
Loss from operations (121,146) (180,527) (199,243) (29,022)
Other income/(expenses)
Interest and investment income 44,592 38,671 36,645 5,338
Interest expense (36) (6,810) (6,970) (1,015)
Foreign exchange (losses)/gains, net (6,633) (303) 1,090 159
Other (loss)/income, net (121) 268 586 85
Loss before income tax expense (83,344) (148,701) (167,892) (24,455)
Income tax benefit 524 525 738 108
Net loss (82,820) (148,176) (167,154) (24,347)
Net (loss)/income attributable to noncontrolling interests (1,721) 1,169 (444) (65)
Net income attributable to redeemable noncontrolling interests 255 714 245 36
Net loss attributable to Tuniu Corporation (81,354) (150,059) (166,955) (24,318)
Reversal of/(Accretion on) redeemable noncontrolling interest 1,733 (543) (1,033) (150)
Net loss attributable to ordinary shareholders (79,621) (150,602) (167,988) (24,468)
Net loss (82,820) (148,176) (167,154) (24,347)
Other comprehensive (loss)/income:
Foreign currency translation adjustment, net of nil tax 23,802 (4,742) 7,110 1,036
Comprehensive loss (59,018) (152,918) (160,044) (23,311)
Loss per share
Net loss per ordinary share attributable to ordinary shareholders - (0.21) (0.41) (0.45) (0.07)
basic and diluted
Net loss per ADS - basic and diluted* (0.63) (1.23) (1.35) (0.21)
Weighted average number of ordinary shares used in computing 381,234,313 369,190,766 369,343,738 369,343,738
basic and diluted loss per share
Share-based compensation expenses included are as follows:
Cost of revenues 250 1,869 1,827 266
Research and product development 1,901 5,041 4,112 599
Sales and marketing 231 1,416 1,519 221
General and administrative 22,485 14,835 8,723 1,271
Total 24,867 23,161 16,181 2,357
*Each ADS represents three of the Company's ordinary shares.
Reconciliations of GAAP and Non-GAAP Results
(All amounts in thousands, except per share information)
Quarter Ended June 30, 2019
GAAP
Share-based
Amortization of acquired
Non-GAAP
Result
Compensation
intangible assets
Result
---
Cost of revenues (287,330) 1,827 (285,503)
Research and product development (80,197) 4,112 513 (75,572)
Sales and marketing (224,582) 1,519 34,163 (188,900)
General and administrative (134,389) 8,723 704 (124,962)
Other operating income 6,925 6,925
Total operating expenses (432,243) 14,354 35,380 (382,509)
Loss from operations (199,243) 16,181 35,380 (147,682)
Net loss (167,154) 16,181 35,380 (115,593)
Net loss attributable to ordinary shareholders (167,988) 16,181 35,380 (116,427)
Net loss per ordinary share attributable to ordinary (0.45) (0.32)
shareholders - basic and diluted (RMB)
Net loss per ADS - basic and diluted (RMB) (1.35) (0.96)
Weighted average number of ordinary shares used in 369,343,738 369,343,738
computing basic and diluted loss per share
Quarter Ended March 31, 2019
GAAP
Share-based
Amortization of acquired
Non-GAAP
Result
Compensation
intangible assets
Result
---
Cost of revenues (206,019) 1,869 (204,150)
Research and product development (80,016) 5,041 513 (74,462)
Sales and marketing (218,820) 1,416 34,163 (183,241)
General and administrative (135,072) 14,835 703 (119,534)
Other operating income 2,543 2,543
Total operating expenses (431,365) 21,292 35,379 (374,694)
Loss from operations (180,527) 23,161 35,379 (121,987)
Net loss (148,176) 23,161 35,379 (89,636)
Net loss attributable to ordinary shareholders (150,602) 23,161 35,379 (92,062)
Net loss per ordinary share attributable to ordinary (0.41) (0.25)
shareholders - basic and diluted (RMB)
Net loss per ADS - basic and diluted (RMB) (1.23) (0.75)
Weighted average number of ordinary shares used in 369,190,766 369,190,766
computing basic and diluted loss per share
Quarter Ended June 30, 2018
GAAP
Share-based
Amortization of acquired
Non-GAAP
Result
Compensation
intangible assets
Result
---
Cost of revenues (274,475) 250 (274,225)
Research and product development (77,044) 1,901 399 (74,744)
Sales and marketing (173,638) 231 34,163 (139,244)
General and administrative (129,317) 22,485 781 (106,051)
Other operating income 8,078 8,078
Total operating expenses (371,921) 24,617 35,343 (311,961)
Loss from operations (121,146) 24,867 35,343 (60,936)
Net loss (82,820) 24,867 35,343 (22,610)
Net loss attributable to ordinary shareholders (79,621) 24,867 35,343 (19,411)
Net loss per ordinary share attributable to ordinary (0.21) (0.05)
shareholders - basic and diluted (RMB)
Net loss per ADS - basic and diluted (RMB) (0.63) (0.15)
Weighted average number of ordinary shares used in 381,234,313 381,234,313
computing basic and diluted loss per share
*Basic net loss per ordinary share attributable to ordinary shareholders is calculated by dividing net loss attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the periods. Diluted net loss per ordinary share attributable to ordinary shareholders
is calculated by dividing net 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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