EX-99.1 2 tm2125703d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Tuniu Announces Unaudited Second Quarter 2021 Financial Results

 

NANJING, China, August 23, 2021 -- Tuniu Corporation (NASDAQ:TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced its unaudited financial results for the second quarter ended June 30, 2021.

 

Highlights for the Second Quarter of 2021

 

·Net revenues in the second quarter of 2021 increased by 373.1% year-over-year to RMB161.0 million (US$24.9 million1).
·Revenues from package tours in the second quarter of 2021 increased by 906.9% year-over-year to RMB126.5 million (US$19.6 million).
·Operating expenses in the second quarter of 2021 decreased by 39.8% year-over-year to RMB95.1 million (US$14.7 million).

 

"Our business saw a strong recovery in the second quarter, as we achieved revenue growth for the first time since the COVID-19 outbreak and returned to positive operating cash flow." said Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer. "We continue to be guided by our ‘customer first’ principle as we improve our products and services based on customer demand in order to maintain sustainable growth and seize opportunities amidst the evolving industry environment. In the face of temporary challenges, we will always prioritize customers and work to gain their long-term support and trust through our consistent high-quality service."

 

Second Quarter 2021 Results

 

Net revenues were RMB161.0 million (US$24.9 million) in the second quarter of 2021, representing a year-over-year increase of 373.1% from the corresponding period in 2020. The increase was primarily due to the growth in revenues from packaged tours.

 

·Revenues from packaged tours were RMB126.5 million (US$19.6 million) in the second quarter of 2021, representing a year-over-year increase of 906.9% from the corresponding period in 2020. The increase was primarily due to the growth in demand for domestic tours.

 

·Other revenues were RMB34.5 million (US$5.3 million) in the second quarter of 2021, representing a year-over-year increase of 60.6% from the corresponding period in 2020. The increase was primarily due to a rise in commission fees received from other travel-related products and service fees received from insurance companies.

 

Cost of revenues was RMB92.0 million (US$14.2 million) in the second quarter of 2021, representing a year-over-year increase of 249.8% from the corresponding period in 2020. As a percentage of net revenues, cost of revenues was 57.1% in the second quarter of 2021, compared to 77.3% in the corresponding period in 2020.

 

 

1 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 6.4566 on June 30, 2021 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.

 

 

 

 

Gross profit was RMB69.0 million (US$10.7 million) in the second quarter of 2021, representing a year-over-year increase of 792.2% from the corresponding period in 2020.

 

Operating expenses were RMB95.1 million (US$14.7 million) in the second quarter of 2021, representing a year-over-year decrease of 39.8% from the corresponding period in 2020. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB5.6 million (US$0.9 million) in the second quarter of 2021. Non-GAAP2 operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB89.6 million (US$13.9 million) in the second quarter of 2021, representing a year-over-year decrease of 35.5%.

 

·Research and product development expenses were RMB13.8 million (US$2.1 million) in the second quarter of 2021, representing a year-over-year decrease of 33.4%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB0.9 million (US$0.1 million), were RMB12.9 million (US$2.0 million) in the second quarter of 2021, representing a year-over-year decrease of 32.2% from the corresponding period in 2020. The decrease was primarily due to the decrease in research and product development personnel related expenses.

 

·Sales and marketing expenses were RMB44.8 million (US$6.9 million) in the second quarter of 2021, representing a year-over-year decrease of 46.8%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.1 million (US$0.2 million), were RMB43.7 million (US$6.8 million) in the second quarter of 2021, representing a year-over-year decrease of 36.9% from the corresponding period in 2020. The decrease was primarily due to the decrease in sales and marketing personnel related expenses and amortization of acquired intangible assets.

 

·General and administrative expenses were RMB41.5 million (US$6.4 million) in the second quarter of 2021, representing a year-over-year decrease of 31.8%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB3.6 million (US$0.6 million), were RMB37.9 million (US$5.9 million) in the second quarter of 2021, representing a year-over-year decrease of 35.1% from the corresponding period in 2020. The decrease was primarily due to the decrease in general and administrative personnel related expenses.

 

Loss from operations was RMB26.2 million (US$4.1 million) in the second quarter of 2021, compared to a loss from operations of RMB150.3 million in the second quarter of 2020. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB20.5 million (US$3.2 million) in the second quarter of 2021.

 

 

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.

 

 

 

 

Net loss was RMB14.0 million (US$2.2 million) in the second quarter of 2021, compared to a net loss of RMB154.6 million in the second quarter of 2020. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB8.4 million (US$1.3 million) in the second quarter of 2021.

 

Net loss attributable to ordinary shareholders was RMB13.1 million (US$2.0 million) in the second quarter of 2021, compared to a net loss attributable to ordinary shareholders of RMB147.6 million in the second quarter of 2020. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB7.4 million (US$1.2 million) in the second quarter of 2021.

 

As of June 30, 2021, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.1 billion (US$175.0 million). The COVID-19 pandemic has negatively impacted our business operations, and will continue to impact our results of operations and cash flows for subsequent periods. Based on our liquidity assessment and management actions, we believe that our available cash, cash equivalents and maturity of investments will be sufficient to meet our working capital requirements and capital expenditures in the ordinary course of business for the next twelve months.

 

Business Outlook

 

For the third quarter of 2021, the Company expects to generate RMB111.2 million to RMB123.5 million of net revenues, which represents 0% to 10% 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 August 23, 2021, (8:00 pm, Beijing/Hong Kong Time, on August 23, 2021) to discuss the second quarter 2021 financial results.

 

To participate in the conference call, please dial the following numbers:

 

US:            1-866-548-4713
   
Hong Kong:     800-961-105 / +852-3008-1527
   
Mainland China: 4001-209101
   
International:    +1-323-794-2093
   
Conference ID: Tuniu 2Q 2021 Earnings Call

 

A telephone replay will be available from 11:00 am on August 23, 2021 through 11:00 am on August 30, 2021, U.S. Eastern Time. The dial-in details are as follows:

 

 

 

 

US:            1-888-203-1112
   
Hong Kong:     +852-5808-3200
   
Mainland China: 4001-201651
   
International:    +1-719-457-0820
   
Replay Access Code: 2526033

 

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,
2020		   June 30,
2021		   June 30,
2021		 
   RMB   RMB   US$ 
ASSETS               
Current assets               
Cash and cash equivalents   213,538    427,379    66,193 
Restricted cash   50,566    33,996    5,265 
Short-term investments   1,353,670    668,565    103,548 
Accounts receivable, net   264,134    253,196    39,215 
Amounts due from related parties   23,913    20,349    3,152 
Prepayments and other current assets   378,704    440,713    68,258 
Total current assets   2,284,525    1,844,198    285,631 
                
Non-current assets               
Long-term investments   266,866    230,118    35,641 
Property and equipment, net   111,697    108,561    16,814 
Intangible assets, net   71,362    63,430    9,824 
Land use right, net   96,713    95,682    14,819 
Operating lease right-of-use assets, net   42,293    60,757    9,410 
Goodwill   232,007    232,007    35,933 
Other non-current assets   91,180    96,646    14,969 
Total non-current assets   912,118    887,201    137,410 
Total assets   3,196,643    2,731,399    423,041 
                
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY               
Current liabilities               
Short-term borrowings   60,679    20,250    3,136 
Accounts and notes payable   705,838    654,215    101,325 
Amounts due to related parties   21,034    4,521    700 
Salary and welfare payable   47,487    41,220    6,384 
Taxes payable   6,004    3,312    513 
Advances from customers   208,762    231,598    35,870 
Operating lease liabilities, current   18,264    19,226    2,978 
Accrued expenses and other current liabilities   676,501    351,178    54,391 
Total current liabilities   1,744,569    1,325,520    205,297 
                
Non-current liabilities               
Operating lease liabilities, non-current   34,367    46,699    7,233 
Deferred tax liabilities   14,861    13,609    2,108 
Long-term borrowings   22,577    17,599    2,726 
Other non-current liabilities   3,054    3,054    473 
Total non-current liabilities   74,859    80,961    12,540 
Total liabilities   1,819,428    1,406,481    217,837 
                
Redeemable noncontrolling interests   27,200    27,200    4,213 
                
Equity               
Ordinary shares   249    249    39 
Less: Treasury stock   (302,916)   (295,622)   (45,786)
Additional paid-in capital   9,125,689    9,123,080    1,412,985 
Accumulated other comprehensive income   275,012    274,270    42,479 
Accumulated deficit   (7,713,355)   (7,765,901)   (1,202,785)
Total Tuniu Corporation shareholders’ equity   1,384,679    1,336,076    206,932 
Noncontrolling interests   (34,664)   (38,358)   (5,941)
Total equity   1,350,015    1,297,718    200,991 
Total liabilities, redeemable noncontrolling interests and equity   3,196,643    2,731,399    423,041 

 

 

 

 

Tuniu Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except per share information)
 
   Quarter Ended   Quarter Ended   Quarter Ended   Quarter Ended 
   June 30, 2020   March 31, 2021   June 30, 2021   June 30, 2021 
   RMB   RMB   RMB   US$ 
Revenues                    
Packaged tours   12,563    45,361    126,502    19,593 
Others   21,461    31,999    34,459    5,337 
Net revenues   34,024    77,360    160,961    24,930 
Cost of revenues   (26,292)   (48,706)   (91,975)   (14,245)
Gross profit   7,732    28,654    68,986    10,685 
                     
Operating expenses                    
Research and product development   (20,647)   (11,791)   (13,757)   (2,131)
Sales and marketing   (84,255)   (35,418)   (44,795)   (6,938)
General and administrative   (60,952)   (44,744)   (41,541)   (6,434)
Other operating income   7,774    8,437    4,950    767 
Total operating expenses   (158,080)   (83,516)   (95,143)   (14,736)
Loss from operations   (150,348)   (54,862)   (26,157)   (4,051)
Other income/(expenses)                    
Interest and investment income   7,061    15,283    9,095    1,409 
Interest expense   (9,627)   (2,636)   (1,944)   (301)
Foreign exchange (losses)/gains, net   (4,184)   (1,249)   4,289    664 
Other income, net   1,323    1,086    664    103 
Loss before income tax expense   (155,775)   (42,378)   (14,053)   (2,176)
Income tax benefit   934    618    134    21 
Equity in income of affiliates   215    129    (95)   (15)
Net loss   (154,626)   (41,631)   (14,014)   (2,170)
Net loss attributable to noncontrolling interests   (7,073)   (2,150)   (949)   (147)
Net income attributable to redeemable noncontrolling interests   142    -    -    - 
Net loss attributable to Tuniu Corporation   (147,695)   (39,481)   (13,065)   (2,023)
Reversal of redeemable noncontrolling interests   81    -    -    - 
Net loss attributable to ordinary shareholders   (147,614)   (39,481)   (13,065)   (2,023)
                     
Net loss   (154,626)   (41,631)   (14,014)   (2,170)
Other comprehensive (loss)/income:                    
Foreign currency translation adjustment, net of nil tax   (271)   3,647    (4,389)   (680)
Comprehensive loss   (154,897)   (37,984)   (18,403)   (2,850)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.40)   (0.11)   (0.04)   (0.01)
Net loss per ADS - basic and diluted*   (1.20)   (0.33)   (0.12)   (0.03)
                     
Weighted average number of ordinary shares used in computing basic and diluted loss per share   370,145,186    370,590,545    370,929,055    370,929,055 
                     
Share-based compensation expenses included are as follows：                    
Cost of revenues   189    54    44    7 
Research and product development   832    153    76    12 
Sales and marketing   147    122    61    9 
General and administrative   1,759    1,201    2,928    453 
Total   2,927    1,530    3,109    481 

 

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

 

 

 

 

Reconciliations of GAAP and Non-GAAP Results
(All amounts in thousands, except per share information)
                 
   Quarter Ended June 30, 2021 
       Share-based   Amortization
of acquired		   Non-GAAP 
   GAAP Result   Compensation   intangible assets   Result 
Cost of revenues   (91,975)   44    -    (91,931)
                     
Research and product development   (13,757)   76    782    (12,899)
Sales and marketing   (44,795)   61    1,065    (43,669)
General and administrative   (41,541)   2,928    681    (37,932)
Other operating income   4,950    -    -    4,950 
Total operating expenses   (95,143)   3,065    2,528    (89,550)
                     
Loss from operations   (26,157)   3,109    2,528    (20,520)
                     
Net loss   (14,014)   3,109    2,528    (8,377)
                     
Net loss attributable to ordinary shareholders   (13,065)   3,109    2,528    (7,428)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.04)             (0.02)
Net loss per ADS - basic and diluted   (0.12)             (0.06)
                     
Weighted average number of ordinary shares used in computing basic and diluted loss per share   370,929,055              370,929,055 

 

   Quarter Ended March 31, 2021 
       Share-based   Amortization
of acquired		   Non-GAAP 
   GAAP Result   Compensation   intangible assets   Result 
Cost of revenues   (48,706)   54    -    (48,652)
                     
Research and product development   (11,791)   153    782    (10,856)
Sales and marketing   (35,418)   122    1,065    (34,231)
General and administrative   (44,744)   1,201    681    (42,862)
Other operating income   8,437    -    -    8,437 
Total operating expenses   (83,516)   1,476    2,528    (79,512)
                     
Loss from operations   (54,862)   1,530    2,528    (50,804)
                     
Net loss   (41,631)   1,530    2,528    (37,573)
                     
Net loss attributable to ordinary shareholders   (39,481)   1,530    2,528    (35,423)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.11)             (0.10)
Net loss per ADS - basic and diluted   (0.33)             (0.30)
                     
Weighted average number of ordinary shares used in computing basic and diluted loss per share   370,590,545              370,590,545 

 

   Quarter Ended June 30, 2020 
       Share-based   Amortization of acquired   Non-GAAP 
   GAAP Result   Compensation   intangible assets   Result 
Cost of revenues   (26,292)   189    -    (26,103)
                     
Research and product development   (20,647)   832    782    (19,033)
Sales and marketing   (84,255)   147    14,915    (69,193)
General and administrative   (60,952)   1,759    709    (58,484)
Other operating income   7,774    -    -    7,774 
Total operating expenses   (158,080)   2,738    16,406    (138,936)
                     
Loss from operations   (150,348)   2,927    16,406    (131,015)
                     
Net loss   (154,626)   2,927    16,406    (135,293)
                     
Net loss attributable to ordinary shareholders   (147,614)   2,927    16,406    (128,281)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.40)             (0.35)
Net loss per ADS - basic and diluted   (1.20)             (1.05)
                     
Weighted average number of ordinary shares used in computing basic and diluted loss per share   370,145,186              370,145,186 

 

*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.