Tuniu Announces Unaudited Fourth Quarter and Fiscal Year 2019 Financial Results

NANJING, China, April 9, 2020 /PRNewswire/ -- Tuniu Corporation (NASDAQ:TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2019.

Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer, said, "The outbreak and spread of the COVID-19 has brought an unprecedented challenge to the travel industry and the business operation of Tuniu. Although we expect short-term turbulence within the industry, we remain confident that the economy and travel industry of China will be able to gradually recover as the COVID-19 has been largely contained within China. Since the initial outbreak in January 2020, we have been helping customers refund or alter trips that were impacted by the COVID-19. On the business operation side, we are focusing on developing high-quality products and services for our customers in anticipation of an increase in demand for domestic travel. We believe Tuniu will be well-positioned to better capture market opportunities when the travel industry begins to recover."

Ms. Maria Yi Xin, Tuniu's Chief Financial Officer, said, "Since the fourth quarter of 2019, we have been making various adjustments to our business operation and corporate structure. After the outbreak of the COVID-19, we have implemented a number of cost-saving adjustments that will manifest starting from the second half of 2020. Due to the COVID-19 outbreak in early 2020, the Chinese government has announced bans prohibiting the sale of packaged tour products. As China's leading online leisure travel company, we have a high social responsibility and will continue prioritizing the safety of our customers."

Fourth Quarter 2019 Results

Net revenues were RMB451.3 million (US$64.8 million([1])) in the fourth quarter of 2019, representing a year-over-year decrease of 4.2% from the corresponding period in 2018.

    --  Revenues from packaged tours were RMB344.3 million (US$49.5 million) in
        the fourth quarter of 2019, representing a year-over-year decrease of
        3.7% from the corresponding period in 2018. The decrease was primarily
        due to the decline in demand for travel to certain destinations.
    --  Other revenues were RMB107.0 million (US$15.4 million) in the fourth
        quarter of 2019, representing a year-over-year decrease of 5.9% from the
        corresponding period in 2018. The decrease was primarily due to the
        decline in revenues generated from financial services.

Cost of revenues was RMB234.6 million (US$33.7 million) in the fourth quarter of 2019, representing a year-over-year increase of 16.7% from the corresponding period in 2018. As a percentage of net revenues, cost of revenues was 52.0% in the fourth quarter of 2019 compared to 42.7% in the corresponding period in 2018.

Gross profit was RMB216.7 million (US$31.1 million) in the fourth quarter of 2019, representing a year-over-year decrease of 19.8% from the corresponding period in 2018.

Operating expenses were RMB650.9 million (US$93.5 million) in the fourth quarter of 2019, representing a year-over-year increase of 74.3% from the corresponding period in 2018. Share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, which were allocated to operating expenses, were RMB74.8 million (US$10.7 million) in the fourth quarter of 2019. Non-GAAP([2]) operating expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, were RMB576.1 million (US$82.8 million) in the fourth quarter of 2019, representing a year-over-year increase of 76.5%.

    --  Research and product development expenses were RMB79.0 million (US$11.4
        million) in the fourth quarter of 2019, representing a year-over-year
        increase of 4.2%. Non-GAAP research and product development expenses,
        which excluded share-based compensation expenses and amortization of
        acquired intangible assets of RMB1.6 million (US$0.2 million), were
        RMB77.4 million (US$11.1 million) in the fourth quarter of 2019,
        representing a year-over-year increase of 5.9% from the corresponding
        period in 2018. The increase was primarily due to the increase in
        research and product development personnel related expenses.
    --  Sales and marketing expenses were RMB239.9 million (US$34.5 million) in
        the fourth quarter of 2019, representing a year-over-year increase of
        14.7%. The increase was primarily due to the increase in impairment of
        acquired intangible assets. Non-GAAP sales and marketing expenses, which
        excluded share-based compensation expenses, amortization of acquired
        intangible assets and impairment of acquired intangible assets of
        RMB66.9 million (US$9.6 million), were RMB173.0 million (US$24.8
        million) in the fourth quarter of 2019, representing a year-over-year
        decrease of 0.9% from the corresponding period in 2018.
    --  General and administrative expenses were RMB341.5 million (US$49.1
        million) in the fourth quarter of 2019, representing a year-over-year
        increase of 183.4%. Non-GAAP general and administrative expenses, which
        excluded share-based compensation expenses and amortization of acquired
        intangible assets of RMB6.2 million (US$0.9 million), were RMB335.3
        million (US$48.2 million) in the fourth quarter of 2019, representing a
        year-over-year increase of 202.5% from the corresponding period in 2018.
        The increase was primarily due to the increase in some one-time
        impairment charges and general and administrative personnel related
        expenses.

Loss from operations was RMB434.2 million (US$62.4 million) in the fourth quarter of 2019, compared to a loss from operations of RMB103.1 million in the fourth quarter of 2018. Non-GAAP loss from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB359.2 million (US$51.6 million) in the fourth quarter of 2019.

Net loss was RMB401.4 million (US$57.7 million) in the fourth quarter of 2019, compared to a net loss of RMB72.9 million in the fourth quarter of 2018. Non-GAAP net loss, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB326.4 million (US$46.9 million) in the fourth quarter of 2019.

Net loss attributable to ordinary shareholders was RMB367.1 million (US$52.7 million) in the fourth quarter of 2019, compared to a net loss attributable to ordinary shareholders of RMB64.7 million in the fourth quarter of 2018. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB292.1 million (US$42.0 million) in the fourth quarter of 2019.

As of December 31, 2019, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.9 billion (US$276.9 million).


     [1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of
      US$1.00=RMB6.9618 on December 31, 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.

Fiscal Year 2019 Results

Net revenues were RMB2.3 billion (US$327.6 million) in 2019, representing a year-over-year increase of 1.8% from 2018.

    --  Revenues from packaged tours were RMB1.9 billion (US$271.0 million) in
        2019, representing a year-over-year increase of 3.1% from 2018. The
        increase was primarily due to the growth of organized tours.
    --  Other revenues were RMB394.2 million (US$56.6 million) in 2019,
        representing a year-over-year decrease of 3.7% from 2018. The decrease
        was primarily due to the decline in revenues generated from financial
        services and service fees received from insurance companies.

Cost of revenues was RMB1.2 billion (US$172.4 million) in 2019, representing a year-over-year increase of 12.7% from 2018. As a percentage of net revenues, cost of revenues was 52.6% in 2019 compared to 47.5% in 2018.

Gross profit was RMB1.1 billion (US$155.3 million) in 2019, representing a year-over-year decrease of 8.0% from 2018.

Operating expenses were RMB2.0 billion (US$280.4 million) in 2019, representing a year-over-year increase of 28.1% from 2018. Share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, which were allocated to operating expenses, were RMB232.8 million (US$33.4 million) in 2019. Non-GAAP operating expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, were RMB1.7 billion (US$246.9 million) in 2019, representing a year-over-year increase of 30.7%.

    --  Research and product development expenses were RMB303.6 million (US$43.6
        million) in 2019, representing a year-over-year decrease of 3.7%.
        Non-GAAP research and product development expenses, which excluded
        share-based compensation expenses and amortization of acquired
        intangible assets of RMB14.4 million (US$2.1 million), were RMB289.2
        million (US$41.5 million) in 2019, representing a year-over-year
        decrease of 5.0% from 2018. The decrease was primarily due to the
        increase in efficiency resulting from the increased level of automation
        applied in research and product development activities, and optimization
        of research and product development personnel.
    --  Sales and marketing expenses were RMB923.3 million (US$132.6 million) in
        2019, representing a year-over-year increase of 18.7%. The increase was
        primarily due to the increase in sales and marketing personnel and
        offline retail stores related expenses, as well as the impairment of
        acquired intangible assets. Non-GAAP sales and marketing expenses, which
        excluded share-based compensation expenses, amortization of acquired
        intangible assets and impairment of acquired intangible assets of
        RMB173.2 million (US$24.9 million), were RMB750.1 million (US$107.7
        million) in 2019, representing a year-over-year increase of 17.2% from
        2018. The increase was primarily due to the increase in sales and
        marketing personnel and offline retail stores related expenses.
    --  General and administrative expenses were RMB749.4 million (US$107.6
        million) in 2019, representing a year-over-year increase of 53.8%.
        Non-GAAP general and administrative expenses, which excluded share-based
        compensation expenses and amortization of acquired intangible assets of
        RMB45.2 million (US$6.5 million), were RMB704.2 million (US$101.2
        million) in 2019, representing a year-over-year increase of 64.8% from
        2018. The increase was primarily due to the increase in some one-time
        impairment charges and general and administrative personnel related
        expenses.

Loss from operations was RMB870.8 million (US$125.1 million) in 2019, compared to a loss from operations of RMB349.0 million in 2018. Non-GAAP loss from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB634.1 million (US$91.1 million) in 2019.

Net loss was RMB729.4 million (US$104.8 million) in 2019, compared to a net loss of RMB199.4 million in 2018. Non-GAAP net loss, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB492.6 million (US$70.8 million) in 2019.

Net loss attributable to ordinary shareholders was RMB699.2 million (US$100.4 million) in 2019, compared to a net loss attributable to ordinary shareholders of RMB187.9 million in 2018. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB462.4 million (US$66.4 million) in 2019.

Business Outlook

Tuniu's business has been significantly impacted by the outbreak and spread of COVID-19 since January 2020. The current circumstances are dynamic and the impact of COVID-19 on our business operations cannot be reasonably estimated at this time, and we anticipate this will have material adverse impact on our business, financial position, results of operations and cash flows in 2020. As a result, for the first quarter of 2020, the Company expects to generate RMB114.2 million to RMB159.9 million of net revenues, which represents 65% to 75% decrease 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 April 9, 2020, (8:00 pm, Beijing/Hong Kong Time, on April 9, 2020) to discuss the fourth quarter and fiscal year 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 4Q 2019 Earnings Call

A telephone replay will be available one hour after the end of the conference through April 16, 2020. The dial-in details are as follows:



              US:                      
              +1-877-344-7529



              International:           
              +1-412-317-0088



              Replay Access Code:                        10140657

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 a dedicated team of professional customer service representatives, 24/7 call centers, extensive networks of offline retail stores and self-operated local tour operators. For more information, please visit http://ir.tuniu.com.

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Tuniu may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Tuniu's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but are not limited to the following: Tuniu's goals and strategies; the growth of the online leisure travel market in China; the demand for Tuniu's products and services; its relationships with customers and travel suppliers; 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; the impact of the COVID-19 on Tuniu's business operations, the travel industry and the economy of China and elsewhere generally; and the general economic and business condition in China and elsewhere. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tuniu does not undertake any obligation to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement the Company's unaudited consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company has provided non-GAAP information related to cost of revenues, research and product development expenses, sales and marketing expenses, general and administrative expenses, other operating income, total 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-basic and diluted, which excludes share-based compensation expenses, amortization of acquired intangible assets and impairment 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, amortization of acquired intangible assets and impairment of acquired intangible assets is that share-based compensation expenses, amortization of acquired intangible assets and impairment 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                           
       
       December 31, 2019         
       
       December 31, 2019


                                                                                                                               
              
                 RMB                                    
       
            RMB                  
       
            US$

                                                                                                                                                                                                                                                            ---




     
                ASSETS



     
                Current assets



        Cash and cash equivalents                                                                                                                               560,356                                               295,463                             42,441



        Restricted cash                                                                                                                                         270,670                                               327,052                             46,978



        Short-term investments                                                                                                                                  859,211                                             1,305,386                            187,507



        Accounts receivable, net                                                                                                                                347,547                                               529,983                             76,127



        Amounts due from related parties                                                                                                                        696,520                                                65,108                              9,352



        Prepayments and other current assets                                                                                                                  1,673,584                                             1,300,284                            186,774




     
                Total current assets                                                                                                                        4,407,888                                             3,823,276                            549,179






     
                Non-current assets



        Long-term investments                                                                                                                                 1,302,506                                             1,305,612                            187,539



        Property and equipment, net                                                                                                                             187,360                                               223,340                             32,081



        Intangible assets, net                                                                                                                                  317,885                                               166,267                             23,883



        Land use right, net                                                                                                                                     100,836                                                98,774                             14,188



        Operating lease right-of-use assets, net*                                                                                                                     -                                              105,839                             15,203



        Goodwill                                                                                                                                                159,409                                               232,007                             33,325



        Other non-current assets                                                                                                                                 81,039                                                83,923                             12,055



        Long-term amounts due from related parties                                                                                                                    -                                              557,582                             80,092

                                                                                                                                                                                                                                                            ---


     
                Total non-current assets                                                                                                                    2,149,035                                             2,773,344                            398,366




     
                Total assets                                                                                                                                6,556,923                                             6,596,620                            947,545






     
                LIABILITIES AND SHAREHOLDERS' EQUITY



     
                Current liabilities



        Short-term borrowings                                                                                                                                    49,312                                               203,845                             29,281



        Accounts and notes payable                                                                                                                            1,305,610                                             1,311,963                            188,452



        Amounts due to related parties                                                                                                                           77,159                                                29,755                              4,274



        Salary and welfare payable                                                                                                                              104,480                                               112,511                             16,162



        Taxes payable                                                                                                                                            23,316                                                12,207                              1,753



        Advances from customers                                                                                                                               1,058,946                                             1,113,879                            159,999



        Operating lease liabilities, current*                                                                                                                         -                                               57,490                              8,258



        Accrued expenses and other current liabilities                                                                                                          483,832                                               907,119                            130,299




     
                Total current liabilities                                                                                                                   3,102,655                                             3,748,769                            538,478






     
                Non-current liabilities



        Operating lease liabilities, non-current*                                                                                                                     -                                               54,718                              7,860



        Deferred tax liabilities                                                                                                                                 19,855                                                23,658                              3,398



        Long-term borrowings                                                                                                                                      4,492                                                 9,689                              1,392



        Other non-current liabilities                                                                                                                            16,069                                                10,947                              1,572




     
                Total non-current liabilities                                                                                                                  40,416                                                99,012                             14,222




     
                Total liabilities                                                                                                                           3,143,071                                             3,847,781                            552,700






     
                Mezzanine equity



     Redeemable noncontrolling interests                                                                                                                         69,319                                                37,200                              5,343





     
                Shareholders' equity



        Ordinary shares                                                                                                                                             249                                                   249                                 36



        Less: Treasury stock                                                                                                                                  (304,535)                                            (310,942)                          (44,664)



        Additional paid-in capital                                                                                                                            9,061,979                                             9,113,512                          1,309,074



        Accumulated other comprehensive income                                                                                                                  284,079                                               293,784                             42,199



        Accumulated deficit                                                                                                                                 (5,691,409)                                          (6,385,974)                         (917,288)




     
                Total Tuniu's shareholders' equity                                                                                                          3,350,363                                             2,710,629                            389,357



     Noncontrolling interests                                                                                                                                   (5,830)                                                1,010                                145




     
                Total Shareholders' equity                                                                                                                  3,344,533                                             2,711,639                            389,502




     
                Total liabilities and shareholders' equity                                                                                                  6,556,923                                             6,596,620                            947,545








     *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


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


                                                               
              
                 RMB                     
              
                 RMB                          
       
            RMB            
       
            US$

                                                                                                                                                                                                                      ---




              
                Revenues


                  Packaged tours                                                           357,619                                           747,122                                    344,325                       49,459



                 Others                                                                   113,616                                           105,395                                    106,958                       15,364



                            Net revenues                                                   471,235                                           852,517                                    451,283                       64,823


               Cost of revenues                                                          (201,018)                                        (472,040)                                 (234,623)                    (33,701)



                            Gross profit                                                   270,217                                           380,477                                    216,660                       31,122






              
                Operating expenses


                  Research and product
                   development                                                            (75,854)                                         (64,310)                                  (79,038)                    (11,353)


                  Sales and marketing                                                    (209,094)                                        (239,973)                                 (239,898)                    (34,459)


                  General and administrative                                             (120,510)                                        (138,456)                                 (341,487)                    (49,052)


                  Other operating income                                                    32,130                                             5,406                                      9,545                        1,371


                            Total operating expenses                                     (373,328)                                        (437,333)                                 (650,878)                    (93,493)



                            Loss from operations                                         (103,111)                                         (56,856)                                 (434,218)                    (62,371)



              
                Other income/(expenses)


                  Interest and investment
                   income                                                                   30,696                                            42,780                                     38,766                        5,568


                  Interest expense                                                         (6,158)                                          (8,900)                                  (11,372)                     (1,633)


                  Foreign exchange
                   (losses)/gains, net                                                     (2,043)                                          (5,190)                                     3,272                          470


                  Other income, net                                                          5,653                                            14,847                                      2,808                          403



                            Loss before income tax
                             expense                                                      (74,963)                                         (13,319)                                 (400,744)                    (57,563)


               Income tax benefit/
                (expense)                                                                    2,025                                               698                                    (2,910)                       (418)


               Equity in income of
                affiliates                                                                       -                                                                                      2,223                          320

                                                                                                                                                                                                                      ---

                            Net loss                                                      (72,938)                                         (12,621)                                 (401,431)                    (57,661)


               Net loss attributable to
                noncontrolling interests                                                   (9,511)                                            (565)                                  (35,957)                     (5,165)


               Net (loss)/income
                attributable to
                redeemable noncontrolling                                                  (1,848)                                            (102)                                       123                           18
    interests


                            Net loss attributable to
                             Tuniu Corporation                                            (61,579)                                         (11,954)                                 (365,597)                    (52,514)



               Accretion on redeemable
                noncontrolling interests                                                   (3,082)                                          (1,518)                                   (1,540)                       (221)


                            Net loss attributable to
                             ordinary shareholders                                        (64,661)                                         (13,472)                                 (367,137)                    (52,735)





                            Net loss                                                      (72,938)                                         (12,621)                                 (401,431)                    (57,661)



              Other comprehensive income/(loss):


                  Foreign currency
                   translation adjustment,
                   net of nil tax                                                                1                                            12,276                                    (4,939)                       (709)



                            Comprehensive loss                                            (72,937)                                            (345)                                 (406,370)                    (58,370)





               Net loss per ordinary
                share attributable to
                ordinary                                                                    (0.17)                                           (0.04)                                    (0.99)                      (0.14)
    shareholders - basic and diluted


               Net loss per ADS -basic
                and diluted*                                                                (0.51)                                           (0.12)                                    (2.97)                      (0.42)




               Weighted average number of
                ordinary shares used in                                                370,486,502                                       369,559,765                                369,797,249                  369,797,249
    computing basic and diluted loss per share




                            Share-based compensation expenses included are as follows:


                  Cost of revenues                                                             392                                                52                                        258                           37


                  Research and product
                   development                                                               2,173                                             2,065                                        839                          121


                  Sales and marketing                                                          333                                               119                                        267                           38


                  General and administrative                                                 8,901                                            13,294                                      5,500                          790


                            Total                                                           11,799                                            15,530                                      6,864                          986






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


                                                                                
              
                Tuniu Corporation


                                                        
              
                Unaudited Condensed Consolidated Statements of Comprehensive Loss


                                                             
              
                (All amounts in thousands, except per share information)




                                                                                     Year Ended                                             Year Ended             Year Ended


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


                                                               
              
                 RMB                           
              
                 RMB         
     
            US$

                                                                                                                                                                             ---




              
                Revenues


                  Packaged tours                                                         1,830,630                                               1,886,822                 271,025



                 Others                                                                   409,519                                                 394,165                  56,618



                            Net revenues                                                 2,240,149                                               2,280,987                 327,643


               Cost of revenues                                                        (1,065,022)                                            (1,200,012)              (172,371)



                            Gross profit                                                 1,175,127                                               1,080,975                 155,272






              
                Operating expenses


                  Research and product
                   development                                                           (315,222)                                              (303,561)               (43,604)


                  Sales and marketing                                                    (778,126)                                              (923,273)              (132,620)


                  General and administrative                                             (487,372)                                              (749,404)              (107,645)


                  Other operating income                                                    56,599                                                  24,419                   3,508


                            Total operating expenses                                   (1,524,121)                                            (1,951,819)              (280,361)



                            Loss from operations                                         (348,994)                                              (870,844)              (125,089)



              
                Other income/(expenses)


                  Interest and investment
                   income                                                                  152,929                                                 156,862                  22,532


                  Interest expense                                                         (7,918)                                               (34,052)                (4,891)


                  Foreign exchange
                   (losses)/gains, net                                                    (11,729)                                                (1,131)                  (162)


                  Other income, net                                                         16,494                                                  18,509                   2,658



                            Loss before income tax
                             expense                                                     (199,218)                                              (730,656)              (104,952)


               Income tax expense                                                            (153)                                                  (949)                  (136)


               Equity in income of
                affiliates                                                                       -                                                  2,223                     320

                                                                                                                                                                             ---

                            Net loss                                                     (199,371)                                              (729,382)              (104,768)


               Net loss attributable to
                noncontrolling interests                                                  (14,037)                                               (35,797)                (5,142)


               Net income attributable to
                redeemable noncontrolling
                interests                                                                      178                                                     980                     141


                            Net loss attributable to
                             Tuniu Corporation                                           (185,512)                                              (694,565)               (99,767)



               Accretion on redeemable
                noncontrolling interests                                                   (2,422)                                                (4,634)                  (666)


                            Net loss attributable to
                             ordinary shareholders                                       (187,934)                                              (699,199)              (100,433)





                            Net loss                                                     (199,371)                                              (729,382)              (104,768)



              Other comprehensive income:


                  Foreign currency
                   translation adjustment,
                   net of nil tax                                                           11,693                                                   9,705                   1,394



                            Comprehensive loss                                           (187,678)                                              (719,677)              (103,374)





               Net loss per ordinary
                share attributable to
                ordinary                                                                    (0.50)                                                 (1.89)                 (0.27)
    shareholders - basic and diluted


               Net loss per ADS -basic
                and diluted*                                                                (1.50)                                                 (5.67)                 (0.81)


               Weighted average number of
                ordinary shares used in                                                377,744,381                                             369,472,880             369,472,880
    computing basic and diluted loss per
     share




                            Share-based compensation expenses included are as follows:


                  Cost of revenues                                                           1,483                                                   4,006                     575


                  Research and product
                   development                                                               9,124                                                  12,057                   1,732


                  Sales and marketing                                                        1,305                                                   3,321                     477


                  General and administrative                                                56,826                                                  42,352                   6,083


                            Total                                                           68,738                                                  61,736                   8,867





               *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 December 31, 2019



                                                                                                                        
              
                 GAAP                 
              
                 Share-based                      
              
       Amortization of acquired        
      
      Impairment of acquired        
      
        Non-GAAP


                                                                                                                       
              
                 Result                
              
                 Compensation                        
             
          intangible assets           
      
        intangible assets           
      
        Result

                                                                                                                                                                                                                                                                                                                                ---




              Cost of revenues                                                                                                               (234,623)                                                  258                                                                                                               (234,365)





              Research and product development                                                                                                (79,038)                                                  839                                                               793                                               (77,406)



              Sales and marketing                                                                                                            (239,898)                                                  267                                                            34,649                              32,014           (172,968)



              General and administrative                                                                                                     (341,487)                                                5,500                                                               705                                              (335,282)



              Other operating income                                                                                                             9,545                                                                                                                                                                        9,545



              Total operating expenses                                                                                                       (650,878)                                                6,606                                                            36,147                              32,014           (576,111)






              Loss from operations                                                                                                           (434,218)                                                6,864                                                            36,147                              32,014           (359,193)





              Net Loss                                                                                                                       (401,431)                                                6,864                                                            36,147                              32,014           (326,406)





              Net loss attributable to ordinary shareholders                                                                                 (367,137)                                                6,864                                                            36,147                              32,014           (292,112)





              Net loss per ordinary share attributable to ordinary                                                                              (0.99)                                                                                                                                                                      (0.79)
    shareholders - basic and diluted



              Net loss per ADS - basic and diluted                                                                                              (2.97)                                                                                                                                                                      (2.37)





              Weighted average number of ordinary shares                                                                                   369,797,249                                                                                                                                                                  369,797,249
    used in computing basic and diluted loss per
    share




                                                                                                                                       
              
                 Quarter Ended September 30, 2019



                                                                                                                        
              
                 GAAP                 
              
                 Share-based                      
              
       Amortization of acquired        
      
      Impairment of acquired        
      
        Non-GAAP


                                                                                                                       
              
                 Result                
              
                 Compensation                        
             
          intangible assets           
      
        intangible assets           
      
        Result

                                                                                                                                                                                                                                                                                                                                ---




              Cost of revenues                                                                                                               (472,040)                                                   52                                                                                                               (471,988)





              Research and product development                                                                                                (64,310)                                                2,065                                                               513                                               (61,732)



              Sales and marketing                                                                                                            (239,973)                                                  119                                                            34,907                                              (204,947)



              General and administrative                                                                                                     (138,456)                                               13,294                                                               705                                              (124,457)



              Other operating income                                                                                                             5,406                                                                                                                                                                        5,406



              Total operating expenses                                                                                                       (437,333)                                               15,478                                                            36,125                                              (385,730)






              Loss from operations                                                                                                            (56,856)                                               15,530                                                            36,125                                                (5,201)





              Net (loss)/income                                                                                                               (12,621)                                               15,530                                                            36,125                                                 39,034





              Net (loss)/income attributable to ordinary                                                                                      (13,472)                                               15,530                                                            36,125                                                 38,183
    shareholders





              Net (loss)/income per ordinary share



              -Basic                                                                                                                            (0.04)                                                                                                                                                                        0.10



              -Diluted                                                                                                                          (0.04)                                                                                                                                                                        0.10



              Net (loss)/income per ADS



              -Basic                                                                                                                            (0.12)                                                                                                                                                                        0.30



              -Diluted                                                                                                                          (0.12)                                                                                                                                                                        0.30





              Weighted average number of ordinary shares



              -Basic                                                                                                                       369,559,765                                                                                                                                                                  369,559,765



              -Diluted                                                                                                                     369,559,765                                                                                                                                                                  379,770,193




                                                                                                                                        
              
                 Quarter Ended December 31, 2018



                                                                                                                        
              
                 GAAP                 
              
                 Share-based                      
              
       Amortization of acquired        
      
      Impairment of acquired        
      
        Non-GAAP


                                                                                                                       
              
                 Result                
              
                 Compensation                        
             
          intangible assets           
      
        intangible assets           
      
        Result

                                                                                                                                                                                                                                                                                                                                ---




              Cost of revenues                                                                                                               (201,018)                                                  392                                                                                                               (200,626)





              Research and product development                                                                                                (75,854)                                                2,173                                                               589                                               (73,092)



              Sales and marketing                                                                                                            (209,094)                                                  333                                                            34,163                                              (174,598)



              General and administrative                                                                                                     (120,510)                                                8,901                                                               781                                              (110,828)



              Other operating income                                                                                                            32,130                                                                                                                                                                       32,130



              Total operating expenses                                                                                                       (373,328)                                               11,407                                                            35,533                                              (326,388)






              Loss from operations                                                                                                           (103,111)                                               11,799                                                            35,533                                               (55,779)





              Net loss                                                                                                                        (72,938)                                               11,799                                                            35,533                                               (25,606)





              Net loss attributable to ordinary shareholders                                                                                  (64,661)                                               11,799                                                            35,533                                               (17,329)





              Net loss per ordinary share attributable to ordinary                                                                              (0.17)                                                                                                                                                                      (0.05)
    shareholders - basic and diluted



              Net loss per ADS - basic and diluted                                                                                              (0.51)                                                                                                                                                                      (0.15)





              Weighted average number of ordinary shares used                                                                              370,486,502                                                                                                                                                                  370,486,502
    in 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.


                                                                                                                                                                 
              
                Reconciliations  of GAAP and Non-GAAP Results


                                                                                                                                                            
              
                (All amounts in thousands, except per share information)








                                                                                                                                          
              
                Year Ended December 31, 2019



                                                                                                                         
              
                GAAP                 
              
                 Share-based                      
              
       Amortization of acquired         
      
      Impairment of acquired        
      
        Non-GAAP


                                                                                                                        
              
                Result                
              
                 Compensation                        
             
          intangible assets            
      
        intangible assets           
      
        Result

                                                                                                                                                                                                                                                                                                                                 ---




              Cost of revenues                                                                                                             (1,200,012)                                                4,006                                                                                                              (1,196,006)





              Research and product development                                                                                               (303,561)                                               12,057                                                              2,332                                              (289,172)



              Sales and marketing                                                                                                            (923,273)                                                3,321                                                            137,882                              32,014           (750,056)



              General and administrative                                                                                                     (749,404)                                               42,352                                                              2,816                                              (704,236)



              Other operating income                                                                                                            24,419                                                                                                                                                                        24,419



              Total operating expenses                                                                                                     (1,951,819)                                               57,730                                                            143,030                              32,014         (1,719,045)






              Loss from operations                                                                                                           (870,844)                                               61,736                                                            143,030                              32,014           (634,064)





              Net loss                                                                                                                       (729,382)                                               61,736                                                            143,030                              32,014           (492,602)





              Net loss attributable to ordinary shareholders                                                                                 (699,199)                                               61,736                                                            143,030                              32,014           (462,419)





              Net loss per ordinary share attributable to ordinary                                                                              (1.89)                                                                                                                                                                       (1.25)
    shareholders - basic and diluted



              Net loss per ADS - basic and diluted                                                                                              (5.67)                                                                                                                                                                       (3.75)





              Weighted average number of ordinary shares used                                                                              369,472,880                                                                                                                                                                   369,472,880
    in computing basic and diluted loss per share






                                                                                                                                          
              
                Year Ended December 31, 2018



                                                                                                                        
              
                 GAAP                 
              
                 Share-based                      
              
       Amortization of acquired         
      
      Impairment of acquired        
      
        Non-GAAP


                                                                                                                        
              
                Result                
              
                 Compensation                        
             
          intangible assets            
      
        intangible assets           
      
        Result

                                                                                                                                                                                                                                                                                                                                 ---




              Cost of revenues                                                                                                             (1,065,022)                                                1,483                                                                                                              (1,063,539)





              Research and product development                                                                                               (315,222)                                                9,124                                                              1,786                                              (304,312)



              Sales and marketing                                                                                                            (778,126)                                                1,305                                                            136,652                                              (640,169)



              General and administrative                                                                                                     (487,372)                                               56,826                                                              3,124                                              (427,422)



              Other operating income                                                                                                            56,599                                                                                                                                                                        56,599



              Total operating expenses                                                                                                     (1,524,121)                                               67,255                                                            141,562                                            (1,315,304)






              Loss from operations                                                                                                           (348,994)                                               68,738                                                            141,562                                              (138,694)





              Net (loss)/income                                                                                                              (199,371)                                               68,738                                                            141,562                                                 10,929





              Net (loss)/income attributable to ordinary                                                                                     (187,934)                                               68,738                                                            141,562                                                 22,366
    shareholders





              Net (loss)/income per ordinary share attributable to
    ordinary shareholders



              -Basic                                                                                                                            (0.50)                                                                                                                                                                         0.06



              -Diluted                                                                                                                          (0.50)                                                                                                                                                                         0.06



              Net (loss)/income per ADS



              -Basic                                                                                                                            (1.50)                                                                                                                                                                         0.18



              -Diluted                                                                                                                          (1.50)                                                                                                                                                                         0.18





              Weighted average number of ordinary shares used                                                                              377,744,381                                                                                                                                                                   377,744,381
    in computing basic (loss)/income per share



              Weighted average number of ordinary shares used                                                                              377,744,381                                                                                                                                                                   386,061,224
    in computing diluted (loss)/income per share





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

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SOURCE Tuniu