Trip.com Group Limited Reports Unaudited Fourth Quarter and Full Year of 2019 Financial Results

SHANGHAI, March 18, 2020 /PRNewswire/ -- Trip.com Group Limited (Nasdaq: TCOM) ("Trip.com Group" or the "Company"), a leading provider of online travel and related services, including accommodation reservation, transportation ticketing, packaged tours and in-destination services, corporate travel management, and other travel-related services, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2019.

Key Highlights for the Fourth Quarter and Full Year of 2019

- Trip.com Group reported strong financial results for the fourth quarter and full year of 2019.

    --  Income from operations for the fourth quarter of 2019 was RMB580 million
        (US$84 million), compared to the loss of RMB189 million in the same
        period in 2018. Excluding share-based compensation charges, non-GAAP
        income from operations increased by 294% year-over-year to RMB1.0
        billion (US$148 million) in the fourth quarter of 2019.
    --  Net income attributable to Trip.com Group's shareholders reached RMB2.0
        billion (US$289 million) in the fourth quarter of 2019, resulting in
        2019 full year net income of RMB7.0 billion (US$1.0 billion), compared
        to net loss of RMB1.2 billion in same period in 2018 and net income of
        RMB1.1 billion for full year 2018. Excluding share-based compensation
        charges and fair value changes of equity securities investments,
        non-GAAP net income attributable to Trip.com Group's shareholders
        increased by 132% year-over-year to RMB1.2 billion (US$171 million) in
        the fourth quarter of 2019 and by 19% year-over-year to RMB6.5 billion
        (US$937 million) for full year 2019.

- Our international business maintained robust growth despite regional challenges.

    --  The year-over-year revenue growth for hotels (excluding Greater China
        destinations) reached 51% in the fourth quarter of 2019.
    --  Brand Trip.com delivered its 13th consecutive triple-digit growth for
        international air ticketing volume in the fourth quarter of 2019.

- The Company meaningfully increased the presence in lower-tier cities.

    --  Ctrip branded low-star hotel room-nights increased around 50%
        year-over-year in the fourth quarter of 2019.
    --  By the end of 2019, our offline stores reached close to 8,000 in
        operation and in pipeline.

"We achieved strong results in the fourth quarter, despite facing macro challenges in certain regions," said Jane Sun, Chief Executive Officer. "The team delivered solid execution, driving both topline growth and bottom line profitability. Our business fundamentals have never been healthier than today, with both international expansion and lower-tier city penetration becoming increasingly important drivers in our future growth roadmap."

"Despite a challenging beginning in 2020, we are confident of the underlying fundamentals of the Chinese economy, and continue to feel excited about the opportunities globally as well", said James Liang, Executive Chairman. "During the recent novel coronavirus outbreak, we took immediate actions to take care of our customers and partners, while taking on necessary financial impact in the near term. We firmly believe it was the right thing to do for us as the industry leader, and look forward to coming back even stronger after the outbreak is contained. Looking beyond the temporary slowdown, we continue to strive to become the best travel companion for a global and growing customer base in the many years to come."

Fourth Quarter and Full Year of 2019 Financial Results and Business Updates

For the fourth quarter of 2019, Trip.com Group reported net revenue of RMB8.3 billion (US$1.2 billion), representing a 10% increase from the same period in 2018. Net revenue for the fourth quarter of 2019 decreased by 20% from the previous quarter, primarily due to seasonality.

For the full year ended December 31, 2019, net revenue was RMB35.7 billion (US$5.1 billion), representing a 15% increase from 2018.

Accommodation reservation revenue for the fourth quarter of 2019 was RMB3.0 billion (US$426 million), representing a 12% increase from the same period in 2018, primarily due to our brand's extensive global reach, expansion in our global product portfolio, and provision of diversified accommodation choices to prospective customers. Accommodation reservation revenue for the fourth quarter of 2019 decreased by 28% from the previous quarter, primarily due to seasonality.

For the full year ended December 31, 2019, accommodation reservation revenue was RMB13.5 billion (US$1.9 billion), representing a 17% increase from 2018. The accommodation reservation revenue accounted for 38% of the total revenue in 2019 and 37% of the total revenue in 2018.

Transportation ticketing revenue for the fourth quarter of 2019 was RMB3.5 billion (US$498 million), representing a 2% increase from the same period in 2018. Transportation ticketing revenue decreased by 7% from the previous quarter, primarily due to seasonality.

For the full year ended December 31, 2019, transportation ticketing revenue was RMB14.0 billion (US$2.0 billion), representing an 8% increase from 2018. The transportation ticketing revenue accounted for 39% of the total revenue in 2019 and 42% of the total revenue in 2018.

Packaged tour revenue for the fourth quarter of 2019 was RMB800 million (US$115 million), representing an 11% increase from the same period in 2018, primarily driven by an increase of organized tours and self-guided tours. Packaged tour revenue for the fourth quarter of 2019 decreased by 51% from the previous quarter, primarily due to seasonality.

For the full year ended December 31, 2019, packaged tour revenue was RMB4.5 billion (US$651 million), representing a 20% increase from 2018. The packaged tour revenue accounted for 13% of the total revenue in 2019 and 12% of the total revenue in 2018.

Corporate travel revenue for the fourth quarter of 2019 was RMB373 million (US$54 million), representing a 33% increase from the same period in 2018, primarily driven by expansion in travel product coverage and corporate customer base. Corporate travel revenue for the fourth quarter of 2019 increased by 11% from the previous quarter.

For the full year ended December 31, 2019, corporate travel revenue was RMB1.3 billion (US$180 million), representing a 28% increase from 2018. The corporate travel revenue accounted for 4% of the total revenue in 2019 and 3% of the total revenue in 2018.

Gross margin was 79% for the fourth quarter of 2019, remained consistent with that for the same period in 2018 and the previous quarter.

For the full year ended December 31, 2019, gross margin was 79%, compared to 80% in 2018.

Product development expenses for the fourth quarter of 2019 decreased by 1% to RMB2.7 billion (US$387 million) from the same period in 2018, and decreased by 3% from the previous quarter. Product development expenses for the fourth quarter of 2019 accounted for 32% of the net revenue. Excluding share-based compensation charges, non-GAAP product development expenses for the fourth quarter of 2019 accounted for 29% of the net revenue, which decreased from 33% for the same period of 2018 and increased from 25% for the previous quarter.

For the full year ended December 31, 2019, product development expenses increased by 11% to RMB10.7 billion (US$1.5 billion) from 2018 and accounted for 30% of the net revenue. Excluding share-based compensation charges, non-GAAP product development expenses accounted for 27% of the net revenue, which decreased from 28% in 2018.

Sales and marketing expenses for the fourth quarter of 2019 decreased by 5% to RMB2.5 billion (US$357 million) from the same period in 2018, primarily due to the decrease of sales and marketing related activities. Sales and marketing expenses remained consistent with those for the previous quarter. Sales and marketing expenses for the fourth quarter of 2019 accounted for 30% of the net revenue. Excluding share-based compensation charges, non-GAAP sales and marketing expenses for the fourth quarter of 2019 accounted for 29% of the net revenue, which decreased from 34% in the same period in 2018 and increased from 23% in the previous quarter.

For the full year ended December 31, 2019, sales and marketing expenses decreased by 3% to RMB9.3 billion (US$1.3 billion) from 2018 and accounted for 26% of the net revenue. Excluding share-based compensation charges, non-GAAP sales and marketing expenses accounted for 26% of the net revenue, which decreased from 30% in 2018.

General and administrative expenses for the fourth quarter of 2019 increased by 5% to RMB846 million (US$121 million) from the same period in 2018 and increased 5% from the previous quarter, primarily due to an increase in general and administrative personnel related expenses. General and administrative expenses for the fourth quarter of 2019 accounted for 10% of the net revenue. Excluding share-based compensation charges, non-GAAP general and administrative expenses accounted for 8% of the net revenue, which remained consistent with those for the same period in 2018 and increased from 6% for the previous quarter.

For the full year ended December 31, 2019, general and administrative expenses increased by 17% to RMB3.3 billion (US$472 million) from 2018 and accounted for 9% of the net revenue. Excluding share-based compensation charges, non-GAAP general and administrative expenses accounted for 7% of the net revenue, which remained consistent with 2018.

Income from operations for the fourth quarter of 2019 was RMB580 million (US$84 million), compared to the loss of RMB189 million in the same period in 2018 and the income of RMB2.2 billion in the previous quarter. Excluding share-based compensation charges, non-GAAP income from operations was RMB1.0 billion (US$148 million), compared to RMB261 million in the same period in 2018 and RMB2.6 billion in the previous quarter.

For the full year ended December 31, 2019, income from operations was RMB5.0 billion (US$723 million), compared to RMB2.6 billion in 2018. Excluding share-based compensation charges, non-GAAP income from operations was RMB6.8 billion (US$970 million), compared to RMB4.3 billion in 2018.

Operating margin was 7% for the fourth quarter of 2019, compared to -3% in the same period in 2018, and 21% in the previous quarter. Excluding share-based compensation charges, non-GAAP operating margin was 12%, compared to 3% in the same period in 2018 and 25% in the previous quarter.

For the full year ended December 31, 2019, operating margin was 14%, compared to 8% in 2018. Excluding share-based compensation charges, non-GAAP operating margin was 19%, compared to 14% in 2018.

Income tax expense for the fourth quarter of 2019 was RMB364 million (US$52 million), compared to RMB35 million in the same period of 2018 and RMB365 million in the previous quarter. The change in our effective tax rate was primarily due to changes in the profitability of our subsidiaries that have different tax rates, including certain non-taxable income of the fair value changes in equity securities investments.

For the full year ended December 31, 2019, income tax expense was RMB1.7 billion (US$250 million), compared to RMB793 million in 2018.

Net income attributable to Trip.com Group's shareholders for the fourth quarter of 2019 was RMB2.0 billion (US$289 million), compared to net loss of RMB1.2 billion in the same period in 2018 and net income of RMB793 million in the previous quarter, mainly due to the fair value changes in equity securities investments. Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP net income attributable to Trip.com Group's shareholders was RMB1.2 billion (US$171 million), compared to RMB513 million in the same period in 2018 and RMB2.3 billion in the previous quarter.

For the full year ended December 31, 2019, net income attributable to Trip.com Group's shareholders was RMB7.0 billion (US$1.0 billion), compared to RMB1.1 billion in 2018. Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP net income attributable to Trip.com Group's shareholders was RMB6.5 billion (US$937 million), compared to RMB5.5 billion in 2018.

Diluted earnings per ADS were RMB3.23 (US$0.46) for the fourth quarter of 2019. Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP diluted earnings per ADS were RMB1.94 (US$0.28) for the fourth quarter of 2019.

For the full year ended December 31, 2019, diluted earnings per ADS were RMB11.50 (US$1.65). Excluding share-based compensation charges and fair value changes of equity securities investments, non-GAAP diluted earnings per ADS were RMB10.75 (US$1.54).

As of December 31, 2019, the balance of cash and cash equivalents, restricted cash, short-term investment, held to maturity time deposit and financial products was RMB59.9 billion (US$8.6 billion).

Business Outlook

The beginning of 2020 was challenging for travel industry due to the outbreak of the novel coronavirus. As a result of the impact of the coronavirus outbreak, we have lowered our expectations for growth in the first quarter of 2020. For the first quarter of 2020, the Company expects net revenue to decrease by approximately 45% to 50% year-over-year. This forecast reflects the current and preliminary view based on best information available at the time, which is subject to change.

Conference Call

Trip.com Group's management will hold an earnings conference call at 8:00 PM on March 18, 2020, U.S. Eastern Time (8:00 AM on March 19, 2020, Beijing/Shanghai Time).

The conference call will be available on Webcast live and replay at: https://investors.trip.com. The call will be archived for twelve months at this website.

Listeners may access the call by dialing the following numbers:



            US:                                 1-855-881-1339 or
                                                  1-914-202-3258



            Hong Kong:                 
            800-966-806



            Mainland China:            
            4001-200-659



            International:             
            +61-7-3145-4010



            Passcode:                                     10003793

For pre-registration, please click
https://s1.c-conf.com/diamondpass/10003793-invite.html

A telephone replay of the call will be available after the conclusion of the conference call until March 26, 2020. The dial-in details for the replay:


               International dial-in number:    
              +61-7-3107-6325



              Passcode:                                           10003793

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate," "is/are likely to," "confident" or other similar statements. Among other things, quotations from management and the Business Outlook section in this press release, as well as Trip.com Group's strategic and operational plans, contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, severe or prolonged downturn in the global or Chinese economy, general declines or disruptions in the travel industry, volatility in the trading price of Trip.com Group's ADSs, Trip.com Group's reliance on its relationships and contractual arrangements with travel suppliers and strategic alliances, failure to compete against new and existing competitors, failure to successfully manage current growth and potential future growth, risks associated with any strategic investments or acquisitions, seasonality in the travel industry in the relevant jurisdictions where Trip.com Group operates, failure to successfully develop Trip.com Group's existing or future business lines, damage to or failure of Trip.com Group's infrastructure and technology, loss of services of Trip.com Group's key executives, adverse changes in economic and political policies of the PRC government, inflation in China, risks and uncertainties associated with PRC laws and regulations with respect to the ownership structure of Trip.com Group's affiliated Chinese entities and the contractual arrangements among Trip.com Group, its affiliated Chinese entities and their shareholders, and other risks outlined in Trip.com Group's filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the issuance, and Trip.com Group does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Trip.com Group's unaudited condensed consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Trip.com Group uses Non-GAAP financial information related to product development expenses, sales and marketing expenses, general and administrative expenses, income from operations, operating margin, net income attributable to Trip.com Group's shareholders, and diluted earnings per ordinary share and per ADS, each of which (except for net commission earned) is adjusted from the most comparable GAAP result to exclude the share-based compensation charges recorded under ASC 718, "Compensation-Stock Compensation" and its share-based compensation charges are not tax deductible, and fair value changes of equity securities investments, net of tax, recorded under ASU 2016-1. Trip.com Group's management believes the Non-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and provide management with a better capability to plan and forecast future periods.

Non-GAAP information is not prepared in accordance with GAAP and may be different from Non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for GAAP results. A limitation of using Non-GAAP financial measures is that Non-GAAP measures exclude share-based compensation charges and fair value changes of equity securities investments that have been and will continue to be significant recurring expenses in Trip.com Group's business for the foreseeable future.

Reconciliations of Trip.com Group's Non-GAAP financial data to the most comparable GAAP data included in the consolidated statement of operations are included at the end of this press release.

About Trip.com Group Limited

Trip.com Group Limited (Nasdaq: TCOM) is a leading one-stop travel service provider consisting of Trip.com, Ctrip, Skyscanner, and Qunar. Across its platforms, Trip.com Group enables local partners and travelers around the world to make informed and cost-effective bookings for travel products and services, through aggregation of comprehensive travel-related information and resources, and an advanced transaction platform consisting of mobile apps, Internet websites, and 24/7 customer service centers. Founded in 1999 and listed on Nasdaq in 2003, Trip.com Group has become one of the largest travel companies in the world in terms of gross merchandise value.


                                                                                                                                                 
        
                Trip.com Group Limited


                                                                                                                                          
            
            Unaudited Consolidated Balance Sheets


                                                                                                                                     
              
          (In millions, except share and per share data)




                                                                                                                                                     
              
                December 31, 2018        
       
       December 31, 2019      
       
       December 31, 2019


                                                                                                                                                       
              
                RMB (million)            
       
       RMB (million)          
       
       USD (million)






                                                                                                                                                                                       (unaudited)                      (unaudited)                    (unaudited)





              
                ASSETS



              
                Current assets:



              Cash and cash equivalents                                                                                                                                                    21,530                            19,923                           2,862



              Restricted cash                                                                                                                                                               4,244                             1,824                             262



              Short-term investments                                                                                                                                                       36,753                            23,058                           3,312



              Accounts receivable, net                                                                                                                                                      5,668                             7,661                           1,100



              Prepayments and other current assets                                                                                                                                         11,199                            15,489                           2,225





              
                Total current assets                                                                                                                                            79,394                            67,955                           9,761





              Long-term deposits and prepayments                                                                                                                                              768                             1,000                             144



              Land use rights                                                                                                                                                                  94                                91                              13



              Property, equipment and software                                                                                                                                              5,872                             6,135                             881



              Investments                                                                                                                                                                  26,874                            51,278                           7,366



              Goodwill                                                                                                                                                                     58,026                            58,308                           8,375



              Intangible assets                                                                                                                                                            13,723                            13,173                           1,892



              Other long-term receivable                                                                                                                                                      229                                46                               7



              Right-of-use asset*                                                                                                                                                                                            1,207                             173



              Deferred tax assets                                                                                                                                                             850                               976                             140





              
                Total assets                                                                                                                                                   185,830                           200,169                          28,752





              
                LIABILITIES



              
                Current liabilities:



              Short-term debt and current portion of long-term debt                                                                                                                        36,011                            30,516                           4,383



              Accounts payable                                                                                                                                                             11,714                            12,294                           1,766



              Salary and welfare payable                                                                                                                                                    3,694                             4,829                             694



              Taxes payable                                                                                                                                                                 1,019                             1,449                             208



              Advances from customers                                                                                                                                                       9,472                            11,675                           1,677



              Accrued liability for customer reward program                                                                                                                                   528                               478                              69



              Other payables and accruals*                                                                                                                                                  6,346                             7,941                           1,140





              
                Total current liabilities                                                                                                                                       68,784                            69,182                           9,937





              Deferred tax liabilities                                                                                                                                                      3,838                             3,592                             516



              Long-term debt                                                                                                                                                               24,146                            19,537                           2,806



              Other long-term liabilities                                                                                                                                                     329                               264                              38



              Long-term lease liability*                                                                                                                                                                                       749                             108





              
                Total liabilities                                                                                                                                               97,097                            93,324                          13,405





              
                MEZZANINE EQUITY



              Redeemable non-controlling interests                                                                                                                                                                           1,142                             164





              
                SHAREHOLDERS' EQUITY





              
                Total Trip.com Group Limited shareholders' equity                                                                                                               86,715                           103,442                          14,858





              Non-controlling interests                                                                                                                                                     2,018                             2,261                             325





              
                Total shareholders' equity                                                                                                                                      88,733                           105,703                          15,183





              
                Total liabilities, mezzanine equity and shareholders' equity                                                                                                   185,830                           200,169                          28,752





              * The Company adopted ASU No. 2016-02 and ASU No.2018-11, "Leases," beginning January 1, 2019 and elected to utilize the additional
    transition method which allowed the Company to initially apply the new lease standard at the adoption date and recognize a cumulative effect
    adjustment to the opening balance of retained earnings of 2019, with no adjustments to prior periods and no cumulative effect to the opening
    balance of retained earnings.The adoption of the new guidance did not have a material effect on our results of operations, financial condition
    or liquidity.


                                                                                                                                             
          
                Trip.com Group Limited


                                                                                                                            
              
            Unaudited Consolidated Statements of Comprehensive Income


                                                                                                                                 
              
            (In millions, except share and per share data)




                                                                                                                    
       
       Quarter Ended                                   
              
                Quarter Ended           
       
       Quarter Ended            
       
       Quarter Ended


                                                                                                                  
       
       December 31, 2018                               
              
                September 30, 2019      
       
       December 31, 2019        
       
       December 31, 2019


                                                                                                                    
       
       RMB (million)                                   
              
                RMB (million)           
       
       RMB (million)            
       
       USD (million)






                                                                                                                                    (unaudited)                                                              (unaudited)                     (unaudited)                      (unaudited)





              
                Revenue:



              Accommodation reservation                                                                                                  2,656                                                                     4,117                            2,968                               426



              Transportation ticketing                                                                                                   3,414                                                                     3,721                            3,470                               498



              Packaged-tour                                                                                                                721                                                                     1,638                              800                               115



              Corporate travel                                                                                                             279                                                                       335                              373                                54



              Others                                                                                                                       515                                                                       688                              732                               105





              
                Total revenue                                                                                                 7,585                                                                    10,499                            8,343                             1,198





              Less: Sales tax and surcharges                                                                                              (25)                                                                     (23)                             (8)                              (1)





              
                Net revenue                                                                                                   7,560                                                                    10,476                            8,335                             1,197





              
                Cost of revenue                                                                                             (1,620)                                                                  (2,157)                         (1,728)                            (248)





              
                Gross profit                                                                                                  5,940                                                                     8,319                            6,607                               949





              
                Operating expenses:



              Product development ***                                                                                                  (2,718)                                                                  (2,790)                         (2,694)                            (387)



              Sales and marketing ***                                                                                                  (2,609)                                                                  (2,478)                         (2,487)                            (357)



              General and administrative ***                                                                                             (802)                                                                    (809)                           (846)                            (121)





              
                Total operating expenses                                                                                    (6,129)                                                                  (6,077)                         (6,027)                            (865)





              
                (Loss)/income from operations                                                                                 (189)                                                                    2,242                              580                                84





              Interest income                                                                                                              574                                                                       509                              536                                77



              Interest expense                                                                                                           (422)                                                                    (423)                           (387)                             (56)



              Other (loss)/income **                                                                                                   (1,103)                                                                  (1,349)                           1,775                               255





              
                (Loss)/income before income tax expense,                                                                    (1,140)                                                                      979                            2,504                               360
    equity in income of affiliates and non-controlling
    interests





              Income tax expense  **                                                                                                      (35)                                                                    (365)                           (364)                             (52)



              Equity in (loss)/income of affiliates                                                                                       (66)                                                                      206                            (147)                             (21)





              
                Net (loss)/income                                                                                           (1,241)                                                                      820                            1,993                               287





              Net loss/(income) attributable to non-controlling                                                                             51                                                                      (18)                              38                                 5
    interests



              Accretion to redemption value of redeemable non-                                                                                                                                                      (9)                            (23)                              (3)
    controlling interests





              
                Net (loss)/ income attributable to Trip.com Group                                                           (1,190)                                                                      793                            2,008                               289
    Limited





              
                Comprehensive (loss)/income attributable to                                                                 (1,997)                                                                      477                            2,188                               314
    Trip.com Group Limited **





              (Losses)/earnings per ordinary share



              - Basic                                                                                                                  (17.32)                                                                    11.19                            27.03                              3.88



              - Diluted                                                                                                                (17.32)                                                                    10.83                            25.82                              3.71





              (Losses)/earnings per ADS



              - Basic                                                                                                                   (2.17)                                                                     1.40                             3.38                              0.49



              - Diluted                                                                                                                 (2.17)                                                                     1.35                             3.23                              0.46





              Weighted average ordinary shares outstanding



              - Basic                                                                                                               68,758,052                                                                70,979,652                       74,261,842                        74,261,842



              - Diluted                                                                                                             68,758,052                                                                75,203,352                       80,426,008                        80,426,008



              - Diluted-non GAAP                                                                                                    74,464,863                                                                79,585,733                       77,664,621                        77,664,621





              *** Share-based compensation included in Operating expenses above is as follows:



                Product development                                                                                                        239                                                                       213                              240                                34



                Sales and marketing                                                                                                         41                                                                        34                               38                                 6



                General and administrative                                                                                                 170                                                                       146                              165                                24





              ** Fair value changes of equity securities investments included in Net (loss)/income is as follow:



              Fair value loss/(income) of equity securities                                                                              1,253                                                                     1,076                          (1,265)                            (182)
    investments, net of tax


                                                                                                                                                                         
              
                Trip.com Group Limited


                                                                                                                                                              
              
                Reconciliation of  GAAP and Non-GAAP Results


                                                                                                                                                               
              
                (In millions, except % and per share data)




                                                                                                                                                              
              
                Quarter Ended December 31, 2019



                                                                                                                                                 
              
                GAAP Result                           % of Net            
       
            Non-GAAP          % of Net   
     
     Non-GAAP Result              % of Net
                                                                                                                                                                                                  Revenue                            Adjustment           Revenue                                     Revenue

                                                                                                                                                                                                                                                                                                                   ---




              
                Share-based compensation included in Operating expense is as follows:



              Product development                                                                                                                                           (2,694)                               -32%                              240                 3%                  (2,454)               -29%



              Sales and marketing                                                                                                                                           (2,487)                               -30%                               38                 0%                  (2,449)               -29%



              General and administrative                                                                                                                                      (846)                               -10%                              165                 2%                    (681)                -8%




              Total operating expenses                                                                                                                                      (6,027)                               -72%                              443                 5%                  (5,584)               -67%





              Income from operations                                                                                                                                            580                                  7%                              443                 5%                    1,023                 12%





              Fair value changes of equity securities investments, net of tax of                                                                                              1,265                                 15%                          (1,265)              -15%                                          0%
    RMB62 million





              Net income/(loss) attributable to Trip.com Group's shareholders                                                                                                 2,008                                 24%                            (822)              -10%                    1,186                 14%





              Diluted earnings per ordinary share (RMB)                                                                                                                       25.82                                                              (10.31)                                      15.51





              Diluted earnings per ADS (RMB)                                                                                                                                   3.23                                                               (1.29)                                       1.94





              Diluted earnings per ADS (USD)                                                                                                                                   0.46                                                               (0.19)                                       0.28






                                                                                                                                                              
              
                Quarter Ended September 30, 2019



                                                                                                                                                 
              
                GAAP Result                           % of Net            
       
            Non-GAAP          % of Net   
     
     Non-GAAP Result              % of Net
                                                                                                                                                                                                  Revenue                            Adjustment           Revenue                                     Revenue

                                                                                                                                                                                                                                                                                                                   ---




              
                Share-based compensation included in Operating expense is as follows:



              Product development                                                                                                                                           (2,790)                               -27%                              213                 2%                  (2,577)               -25%



              Sales and marketing                                                                                                                                           (2,478)                               -24%                               34                 0%                  (2,444)               -23%



              General and administrative                                                                                                                                      (809)                                -8%                              146                 1%                    (663)                -6%




              Total operating expenses                                                                                                                                      (6,077)                               -58%                              393                 4%                  (5,684)               -54%





              Income from operations                                                                                                                                          2,242                                 21%                              393                 4%                    2,635                 25%





              Fair value changes of equity securities investments, net of tax of                                                                                            (1,076)                               -10%                            1,076                10%                                          0%
    RMB134 million





              Net income attributable to Trip.com Group's shareholders                                                                                                          793                                  8%                            1,469                14%                    2,262                 22%





              Diluted earnings per ordinary share (RMB)                                                                                                                       10.83                                                                18.73                                       29.56





              Diluted earnings per ADS (RMB)                                                                                                                                   1.35                                                                 2.35                                        3.70





              Diluted earnings per ADS (USD)                                                                                                                                   0.19                                                                 0.33                                        0.52






                                                                                                                                                              
              
                Quarter Ended December 31, 2018



                                                                                                                                                 
              
                GAAP Result                           % of Net            
       
            Non-GAAP          % of Net   
     
     Non-GAAP Result              % of Net
                                                                                                                                                                                                  Revenue                            Adjustment           Revenue                                     Revenue

                                                                                                                                                                                                                                                                                                                   ---




              
                Share-based compensation included in Operating expense is as follows:



              Product development                                                                                                                                           (2,718)                               -36%                              239                 3%                  (2,479)               -33%



              Sales and marketing                                                                                                                                           (2,609)                               -35%                               41                 1%                  (2,568)               -34%



              General and administrative                                                                                                                                      (802)                               -11%                              170                 2%                    (632)                -8%




              Total operating expenses                                                                                                                                      (6,129)                               -81%                              450                 6%                  (5,679)               -75%





              Loss from operations                                                                                                                                            (189)                                -3%                              450                 6%                      261                  3%





              Fair value changes of equity securities investments, net of tax of                                                                                            (1,253)                               -12%                            1,253                12%                                          0%
    RMB99 million





              Net (loss)/income attributable to Trip.com Group's shareholders                                                                                               (1,190)                               -16%                            1,703                23%                      513                  7%





              Diluted (losses)/earnings per ordinary share (RMB)                                                                                                            (17.32)                                                               24.53                                        7.21





              Diluted (losses)/earnings per ADS (RMB)                                                                                                                        (2.17)                                                                3.07                                        0.90





              Diluted (losses)/earnings per ADS (USD)                                                                                                                        (0.32)                                                                0.45                                        0.13







              Notes for all the condensed consolidated financial schedules presented:





              Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00=RMB6.9618 on December 31, 2019 published
    by the Federal Reserve Board.


                                                                                                            
              
                Trip.com Group Limited


                                                                                           
              
                Unaudited Consolidated Statements of Comprehensive Income


                                                                                                
              
                (In millions, except share and per share data)




                                                                                                   Year Ended                                           
              
                Year Ended          
     
        Year Ended


                                                                                                December 31, 2018                                                            December 31, 2019          December 31, 2019


                                                                                                  RMB (million)                                                                RMB (million)              USD (million)






                                                                                                          (unaudited)                                                                  (unaudited)                (unaudited)





              
                Revenue:



              Accommodation reservation                                                                       11,580                                                                        13,514                       1,941



              Transportation ticketing                                                                        12,947                                                                        13,952                       2,004



              Packaged-tour                                                                                    3,772                                                                         4,534                         651



              Corporate travel                                                                                   981                                                                         1,255                         180



              Others                                                                                           1,824                                                                         2,461                         353





              
                Total revenue                                                                      31,104                                                                        35,716                       5,129




               Less: Sales tax and surcharges                                                                   (139)                                                                         (50)                        (7)





              
                Net revenue                                                                        30,965                                                                        35,666                       5,122




                            Cost of revenue                                                                   (6,324)                                                                      (7,372)                    (1,059)





              
                Gross profit                                                                       24,641                                                                        28,294                       4,063




                            Operating expenses:



              Product development ***                                                                        (9,620)                                                                     (10,670)                    (1,533)



              Sales and marketing ***                                                                        (9,596)                                                                      (9,295)                    (1,335)


               General and administrative ***                                                                 (2,820)                                                                      (3,289)                      (472)




                            Total operating expenses                                                         (22,036)                                                                     (23,254)                    (3,340)




                            Income from operations                                                              2,605                                                                         5,040                         723





              Interest income                                                                                  1,899                                                                         2,094                         301



              Interest expense                                                                               (1,508)                                                                      (1,677)                      (241)



              Other (loss)/income **                                                                         (1,075)                                                                        3,630                         521




                            Income before income tax expense,
                             equity in                                                                          1,921                                                                         9,087                       1,304
    income of affiliates and non-
     controlling interests





              Income tax expense  **                                                                           (793)                                                                      (1,742)                      (250)


               Equity in loss of affiliates                                                                      (32)                                                                        (347)                       (50)





              
                Net income                                                                          1,096                                                                         6,998                       1,004




               Net loss attributable to non-
                controlling interests                                                                              16                                                                            57                           8


               Accretion to redemption value of
                redeemable non-                                                                                                                                                               (44)                        (6)
    controlling interests




                            Net income attributable to Trip.com
                             Group                                                                              1,112                                                                         7,011                       1,006
    Limited




                            Comprehensive (loss)/income
                             attributable to                                                                    (656)                                                                        6,988                       1,004
    Trip.com Group Limited **




               Earnings per ordinary share



              - Basic                                                                                          16.25                                                                         98.78                       14.19



              - Diluted                                                                                        15.67                                                                         92.02                       13.22





              Earnings per ADS



              - Basic                                                                                           2.03                                                                         12.35                        1.77



              - Diluted                                                                                         1.96                                                                         11.50                        1.65




               Weighted average ordinary shares
                outstanding



              - Basic                                                                                     68,403,426                                                                    70,983,996                  70,983,996



              - Diluted                                                                                   70,924,623                                                                    80,244,014                  80,244,014



              - Diluted-non GAAP                                                                          80,529,171                                                                    80,244,014                  80,244,014





              *** Share-based compensation included in Operating expenses above is as follows:



                Product development                                                                              934                                                                           919                         132



                Sales and marketing                                                                              156                                                                           144                          21


                 General and administrative                                                                       617                                                                           651                          94





              ** Fair value changes of equity securities investments included in Net income is as follow:


               Fair value loss/(income) of equity
                securities                                                                                      2,661                                                                       (2,198)                      (316)
    investments, net of tax


                                                                                                                                                                         
              
                Trip.com Group Limited


                                                                                                                                                       
              
                Unaudited Consolidated Statements of Comprehensive Income


                                                                                                                                                             
              
                (In millions, except share and per share data)




                                                                                                                                                                
              
                Year Ended December 31, 2019



                                                                                                                                                 
              
                GAAP Result                           % of Net                             Non-GAAP           % of Net   
     
     Non-GAAP Result               % of Net
                                                                                                                                                                                                  Revenues                               Adjustment           Revenues                                     Revenues

                                                                                                                                                                                                                                                                                                                         ---




              Product development                                                                                                                                          (10,670)                               -30%                                  919                  3%                  (9,751)                -27%



              Sales and marketing                                                                                                                                           (9,295)                               -26%                                  144                  0%                  (9,151)                -26%



              General and administrative                                                                                                                                    (3,289)                                -9%                                  651                  2%                  (2,638)                 -7%




              Total operating expenses                                                                                                                                     (23,254)                               -65%                                1,714                  5%                 (21,540)                -60%





              Income from operations                                                                                                                                          5,040                                 14%                                1,714                  5%                    6,754                  19%





              Fair value changes of equity securities investments, net of tax of                                                                                              2,198                                  6%                              (2,198)                -6%                                           0%
    RMB136 million





              Net income/(loss) attributable to Trip.com Group's shareholders                                                                                                 7,011                                 20%                                (484)                -1%                    6,527                  18%





              Diluted earnings per ordinary share (RMB)                                                                                                                       92.02                                                                   (6.03)                                       85.99





              Diluted earnings per ADS (RMB)                                                                                                                                  11.50                                                                   (0.75)                                       10.75





              Diluted earnings per ADS (USD)                                                                                                                                   1.65                                                                   (0.11)                                        1.54






                                                                                                                                                                
              
                Year Ended December 31, 2018



                                                                                                                                                 
              
                GAAP Result                           % of Net                             Non-GAAP           % of Net   
     
     Non-GAAP Result               % of Net
                                                                                                                                                                                                  Revenues                               Adjustment           Revenues                                     Revenues

                                                                                                                                                                                                                                                                                                                         ---




              Product development                                                                                                                                           (9,620)                               -31%                                  934                  3%                  (8,686)                -28%



              Sales and marketing                                                                                                                                           (9,596)                               -31%                                  156                  1%                  (9,440)                -30%



              General and administrative                                                                                                                                    (2,820)                                -9%                                  617                  2%                  (2,203)                 -7%




              Total operating expenses                                                                                                                                     (22,036)                               -71%                                1,707                  6%                 (20,329)                -66%





              Income from operations                                                                                                                                          2,605                                  8%                                1,707                  6%                    4,312                  14%





              Fair value changes of equity securities investments, net of tax of                                                                                            (2,661)                                -9%                                2,661                  9%                                           0%
    RMB403 million





              Net income attributable to Trip.com Group's shareholders                                                                                                        1,112                                  4%                                4,368                 14%                    5,480                  18%





              Diluted earnings per ordinary share (RMB)                                                                                                                       15.67                                                                    58.12                                        73.79





              Diluted earnings per ADS (RMB)                                                                                                                                   1.96                                                                     7.26                                         9.22





              Diluted earnings per ADS (USD)                                                                                                                                   0.29                                                                     1.05                                         1.34







              Notes for all the condensed consolidated financial schedules presented:





              Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00=RMB6.9618 on December 31, 2019 published by the
    Federal Reserve Board.

View original content:http://www.prnewswire.com/news-releases/tripcom-group-limited-reports-unaudited-fourth-quarter-and-full-year-of-2019-financial-results-301026009.html

SOURCE Trip.com Group Limited