Tuniu Announces Unaudited First Quarter 2020 Financial Results
NANJING, China, June 10, 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 first quarter ended March 31, 2020.
Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer, said, "Even though travel restrictions implemented during the COVID-19 pandemic remain in place, we are positive on the long-term prospect as there has been a strong accumulation of demand for travel products. By leveraging our experience in Tuniu-branded products and established network of local tour operators, we will shift our focus on the domestic market to offer high-quality domestic travel products to customers, in order to meet the near-term challenges. We are also utilizing new forms of distributions such as live-streaming and social marketing to stimulate customer interest in various destinations and travel products. Lastly, we remain committed to minimizing our expenditures and optimizing our cash flows in preparation for the full recovery of China's leisure travel market."
First Quarter 2020 Results
Net revenues were RMB174.0 million (US$24.6 million([1])) in the first quarter of 2020, representing a year-over-year decrease of 61.9% from the corresponding period in 2019. The decrease was primarily due to the negative impact brought out by the outbreak and spread of COVID-19.
-- Revenues from packaged tours were RMB120.2 million (US$17.0 million) in
the first quarter of 2020, representing a year-over-year decrease of
67.1% from the corresponding period in 2019. The decrease was primarily
due to the suspension of sale of packaged tours impacted by the outbreak
and spread of COVID-19([2]).
-- Other revenues were RMB53.7 million (US$7.6 million) in the first
quarter of 2020, representing a year-over-year decrease of 40.9% from
the corresponding period in 2019. The decrease was primarily due to the
declines in service fees received from insurance companies and revenues
generated from financial services.
Cost of revenues was RMB81.5 million (US$11.5 million) in the first quarter of 2020, representing a year-over-year decrease of 60.5% from the corresponding period in 2019. As a percentage of net revenues, cost of revenues was 46.8% in the first quarter of 2020, compared to 45.1% in the corresponding period in 2019.
Gross margin was 53.2% in the first quarter of 2020, compare to a gross margin of 54.9% in the first quarter of 2019.
Operating expenses were RMB308.0 million (US$43.5 million) in the first quarter of 2020, representing a year-over-year decrease of 28.6% from the corresponding period in 2019. Share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, which were allocated to operating expenses, were RMB37.6 million (US$5.3 million) in the first quarter of 2020. Non-GAAP([3]) operating expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, were RMB270.4 million (US$38.2 million) in the first quarter of 2020, representing a year-over-year decrease of 27.8%.
-- Research and product development expenses were RMB51.0 million (US$7.2
million) in the first quarter of 2020, representing a year-over-year
decrease of 36.2%. Non-GAAP research and product development expenses,
which excluded share-based compensation expenses and amortization of
acquired intangible assets of RMB3.1 million (US$0.4 million), were
RMB48.0 million (US$6.8 million) in the first quarter of 2020,
representing a year-over-year decrease of 35.6% from the corresponding
period in 2019. The decrease was primarily due to the decrease in
research and product development personnel related expenses.
-- Sales and marketing expenses were RMB124.7 million (US$17.6 million) in
the first quarter of 2020, representing a year-over-year decrease of
43.0%. Non-GAAP sales and marketing expenses, which excluded share-based
compensation expenses, amortization of acquired intangible assets and
impairment of acquired intangible assets of RMB31.8 million (US$4.5
million), were RMB92.9 million (US$13.1 million) in the first quarter of
2020, representing a year-over-year decrease of 49.3% from the
corresponding period in 2019. The decrease was primarily due to the
decrease in promotion expenses and sales and marketing personnel related
expenses.
-- General and administrative expenses were RMB133.9 million (US$18.9
million) in the first quarter of 2020, representing a year-over-year
decrease of 0.9%. The decrease was primarily due to the decrease in
general and administrative personnel related expenses. Non-GAAP general
and administrative expenses, which excluded share-based compensation
expenses and amortization of acquired intangible assets of RMB2.7
million (US$0.4 million), were RMB131.1 million (US$18.5 million) in the
first quarter of 2020, representing a year-over-year increase of 9.7%
from the corresponding period in 2019. The increase was primarily due to
the increase in allowance for doubtful accounts.
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of
US$1.00=RMB7.0808 on March 31, 2020 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] On January 24, 2020, the Ministry of Culture and Tourism of the People's Republic of China issued a
notice requiring travel agencies, including online travel agencies throughout the country to suspend the
operation of organized tours and the provision of a combination of flight and hotel bookings.
[3] The section below entitled "About Non-GAAP Financial Measures" provides information about the use of
Non-GAAP financial measures in this press release, and the 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.
Loss from operations was RMB215.5 million (US$30.4 million) in the first quarter of 2020, compared to a loss from operations of RMB180.5 million in the first quarter of 2019. Non-GAAP loss from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB177.7 million (US$25.1 million) in the first quarter of 2020.
Net loss was RMB205.2 million (US$29.0 million) in the first quarter of 2020, compared to a net loss of RMB148.2 million in the first quarter of 2019. Non-GAAP net loss, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB167.4 million (US$23.6 million) in the first quarter of 2020.
Net loss attributable to ordinary shareholders was RMB201.5 million (US$28.5 million) in the first quarter of 2020, compared to a net loss attributable to ordinary shareholders of RMB150.6 million in the first quarter of 2019. 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 RMB163.7 million (US$23.1 million) in the first quarter of 2020.
As of March 31, 2020, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB2.1 billion (US$296.6 million). The COVID-19 pandemic has negatively impacted our business operation and cash flows for the first quarter of 2020, which could continue to impact on subsequent periods. Based on our liquidity assessment and management actions, we believe that our available cash, cash equivalents and cash generated from future operations and maturity of investments will be sufficient to meet our working capital requirements and capital expenditures in the ordinary course of business for the foreseeable future.
Business Outlook
Tuniu's business has been significantly and negatively impacted by the outbreak and spread of COVID-19 since January 2020. As a result of the continued influence by COVID-19, for the second quarter of 2020, the Company expects to generate RMB20.8 million to RMB72.8 million of net revenues, which represents 86% to 96% 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 June 10, 2020, (8:00 pm, Beijing/Hong Kong Time, on June 10, 2020) to discuss the first quarter 2020 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 1Q 2020 Earnings Call
A telephone replay will be available one hour after the end of the conference through June 17, 2020. The dial-in details are as follows:
US:
+1-877-344-7529
International:
+1-412-317-0088
Replay Access Code: 10144584
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, 2019 March 31, 2020 March 31, 2020
RMB
RMB
US$
---
ASSETS
Current assets
Cash and cash equivalents 295,463 590,948 83,458
Restricted cash 327,052 111,754 15,783
Short-term investments 1,305,386 1,397,273 197,333
Accounts receivable, net 529,983 450,756 63,659
Amounts due from related
parties 65,108 62,727 8,859
Prepayments and other current
assets 1,300,284 951,691 134,404
Total current assets 3,823,276 3,565,149 503,496
Non-current assets
Long-term investments 1,305,612 786,646 111,096
Property and equipment, net 223,340 210,132 29,676
Intangible assets, net 166,267 130,618 18,447
Land use right, net 98,774 98,259 13,877
Operating lease right-of-use
assets, net 105,839 87,515 12,359
Goodwill 232,007 232,007 32,766
Other non-current assets 83,923 70,856 10,007
Long-term amounts due from
related parties 557,582 554,179 78,265
Total non-current assets 2,773,344 2,170,212 306,493
Total assets 6,596,620 5,735,361 809,989
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings 203,845 203,672 28,764
Accounts and notes payable 1,311,963 1,129,995 159,586
Amounts due to related parties 29,755 26,594 3,756
Salary and welfare payable 112,511 75,721 10,694
Taxes payable 12,207 4,230 597
Advances from customers 1,113,879 492,277 69,523
Operating lease liabilities,
current 57,490 57,167 8,074
Accrued expenses and other
current liabilities 907,119 1,118,539 157,968
Total current liabilities 3,748,769 3,108,195 438,962
Non-current liabilities
Operating lease liabilities,
non-current 54,718 45,541 6,432
Deferred tax liabilities 23,658 22,829 3,224
Long-term borrowings 9,689 10,941 1,545
Other non-current liabilities 10,947 10,947 1,546
Total non-current liabilities 99,012 90,258 12,747
Total liabilities 3,847,781 3,198,453 451,709
Mezzanine equity
Redeemable noncontrolling
interests 37,200 37,200 5,254
Shareholders' equity
Ordinary shares 249 249 35
Less: Treasury stock (310,942) (310,724) (43,883)
Additional paid-in capital 9,113,512 9,117,787 1,287,678
Accumulated other
comprehensive income 293,784 301,875 42,633
Accumulated deficit* (6,385,974) (6,606,860) (933,067)
Total Tuniu's shareholders'
equity 2,710,629 2,502,327 353,396
Noncontrolling interests 1,010 (2,619) (370)
Total Shareholders' equity 2,711,639 2,499,708 353,026
Total liabilities and
shareholders' equity 6,596,620 5,735,361 809,989
*On 1 January 2020, the Company adopted ASU No. 2016-13 (ASU 2016-13), "Financial Instruments - Credit Losses", and recognized a
cumulative-effect adjustment to the opening retained earnings at the adoption date.
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
March 31, 2019 December 31, 2019
March 31, 2020
March 31, 2020
RMB
RMB
RMB
US$
Revenues
Packaged tours 365,893 344,325 120,240 16,981
Others 90,964 106,958 53,741 7,590
Net revenues 456,857 451,283 173,981 24,571
Cost of revenues (206,019) (234,623) (81,460) (11,504)
Gross profit 250,838 216,660 92,521 13,067
Operating expenses
Research and product
development (80,016) (79,038) (51,026) (7,206)
Sales and marketing (218,820) (239,898) (124,698) (17,611)
General and
administrative (135,072) (341,487) (133,860) (18,905)
Other operating income 2,543 9,545 1,574 222
Total operating expenses (431,365) (650,878) (308,010) (43,500)
Loss from operations (180,527) (434,218) (215,489) (30,433)
Other income/(expenses)
Interest and investment
income, net 38,671 38,766 21,852 3,086
Interest expense (6,810) (11,372) (10,499) (1,483)
Foreign exchange
(losses)/gains, net (303) 3,272 (877) (124)
Other income/(loss), net 268 2,808 (1,718) (243)
Loss before income tax
expense (148,701) (400,744) (206,731) (29,197)
Income tax benefit/
(expense) 525 (2,910) 817 115
Equity in income of
affiliates - 2,223 744 105
Net loss (148,176) (401,431) (205,170) (28,977)
Net income/(loss)
attributable to
noncontrolling interests 1,169 (35,957) (3,629) (513)
Net income/(loss)
attributable to
redeemable
noncontrolling 714 123 (81) (11)
interests
Net loss attributable to
Tuniu Corporation (150,059) (365,597) (201,460) (28,453)
Accretion on redeemable
noncontrolling interests (543) (1,540) (81) (11)
Net loss attributable to
ordinary shareholders (150,602) (367,137) (201,541) (28,464)
Net loss (148,176) (401,431) (205,170) (28,977)
Other comprehensive (loss)/income:
Foreign currency
translation adjustment,
net of nil tax (4,742) (4,939) 8,091 1,143
Comprehensive loss (152,918) (406,370) (197,079) (27,834)
Net loss per ordinary
share attributable to
ordinary (0.41) (0.99) (0.54) (0.08)
shareholders - basic and diluted
Net loss per ADS -basic
and diluted* (1.23) (2.97) (1.62) (0.24)
Weighted average number
of ordinary shares used
in computing basic and
diluted loss per share 369,190,766 369,797,249 370,055,731 370,055,731
Share-based compensation expenses included are as follows:
Cost of revenues 1,869 258 207 29
Research and product
development 5,041 839 2,136 302
Sales and marketing 1,416 267 205 29
General and
administrative 14,835 5,500 2,025 286
Total 23,161 6,864 4,573 646
*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 March 31, 2020
GAAP
Share-based
Amortization of acquired
Impairment of acquired
Non-GAAP
Result
Compensation
intangible assets
intangible assets
Result
---
Cost of revenues (81,460) 207 (81,253)
Research and product development (51,026) 2,136 933 (47,957)
Sales and marketing (124,698) 205 22,050 9,554 (92,889)
General and administrative (133,860) 2,025 709 (131,126)
Other operating income 1,574 1,574
Total operating expenses (308,010) 4,366 23,692 9,554 (270,398)
Loss from operations (215,489) 4,573 23,692 9,554 (177,670)
Net loss (205,170) 4,573 23,692 9,554 (167,351)
Net loss attributable to ordinary shareholders (201,541) 4,573 23,692 9,554 (163,722)
Net loss per ordinary share attributable to ordinary (0.54) (0.44)
shareholders - basic and diluted
Net loss per ADS - basic and diluted (1.62) (1.32)
Weighted average number of ordinary shares used 370,055,731 370,055,731
in computing basic and diluted loss per share
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 March 31, 2019
GAAP
Share-based
Amortization of acquired
Impairment of acquired
Non-GAAP
Result
Compensation
intangible assets
intangible assets
Result
---
Cost of revenues (206,019) 1,869 (204,150)
Research and product development (80,016) 5,041 513 (74,462)
Sales and marketing (218,820) 1,416 34,163 (183,241)
General and administrative (135,072) 14,835 703 (119,534)
Other operating income 2,543 2,543
Total operating expenses (431,365) 21,292 35,379 (374,694)
Loss from operations (180,527) 23,161 35,379 (121,987)
Net loss (148,176) 23,161 35,379 (89,636)
Net loss attributable to ordinary shareholders (150,602) 23,161 35,379 (92,062)
Net loss per ordinary share attributable to ordinary (0.41) (0.25)
shareholders - basic and diluted
Net loss per ADS - basic and diluted (1.23) (0.75)
Weighted average number of ordinary shares used 369,190,766 369,190,766
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.
View original content:http://www.prnewswire.com/news-releases/tuniu-announces-unaudited-first-quarter-2020-financial-results-301073541.html
SOURCE Tuniu
