EX-99.1 2 tm2218082d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Tuniu Announces Unaudited First Quarter 2022 Financial Results

 

NANJING, China, June 9, 2022 -- 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, 2022.

 

"Despite recent challenges in the external environment, we have continued to fully leverage Tuniu’s core competencies and strengths in product innovation and service quality to provide customers with safe and secure travel experiences. We will continue to focus on our mission to make travel easier while remaining dedicated to corporate social responsibility, and working with our customers and partners to overcome challenges, take on new opportunities and further promote the recovery and development of China’s travel industry." said Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer. "Reflecting the progress we’ve made in optimizing our operations, Tuniu’s operating expenses have decreased year-on-year for five consecutive quarters. We will continue to implement strict expense control measures to further lower costs and improve efficiency."

 

First Quarter 2022 Results

 

Net revenues were RMB41.5 million (US$6.5 million1) in the first quarter of 2022, representing a year-over-year decrease of 46.4% from the corresponding period in 2021. The decrease was primarily due to the negative impact brought by the outbreak and spread of COVID-19.

 

·Revenues from packaged tours were RMB14.4 million (US$2.3 million) in the first quarter of 2022, representing a year-over-year decrease of 68.3% from the corresponding period in 2021. The decrease was primarily due to the resurgence of COVID-19 in certain regions in China.

 

·Other revenues were RMB27.1 million (US$4.3 million) in the first quarter of 2022, representing a year-over-year decrease of 15.3% from the corresponding period in 2021. The decrease was primarily due to the decrease in the fees for advertising services provided to tourism boards and bureaus.

 

Cost of revenues was RMB25.7 million (US$4.0 million) in the first quarter of 2022, representing a year-over-year decrease of 47.3% from the corresponding period in 2021. As a percentage of net revenues, cost of revenues was 61.9% in the first quarter of 2022, compared to 63.0% in the corresponding period in 2021.

 

Gross profit was RMB15.8 million (US$2.5 million) in the first quarter of 2022, representing a year-over-year decrease of 44.8% from the corresponding period in 2021.

 

Operating expenses were RMB68.6 million (US$10.8 million) in the first quarter of 2022, representing a year-over-year decrease of 17.8% from the corresponding period in 2021. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB3.1 million (US$0.5 million) in the first quarter of 2022. Non-GAAP2 operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB65.5 million (US$10.3 million) in the first quarter of 2022, representing a year-over-year decrease of 17.6%.

 

 

1 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 6.3393 on March 31, 2022 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.

 

 

 

 

·Research and product development expenses were RMB16.2 million (US$2.6 million) in the first quarter of 2022, representing a year-over-year increase of 37.3%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB0.8 million (US$0.1 million), were RMB15.4 million (US$2.4 million) in the first quarter of 2022, representing a year-over-year increase of 41.9% from the corresponding period in 2021. The increase was primarily due to the increase in research and product development personnel related expenses.

 

·Sales and marketing expenses were RMB29.8 million (US$4.7 million) in the first quarter of 2022, representing a year-over-year decrease of 15.9%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.2 million (US$0.2 million), were RMB28.6 million (US$4.5 million) in the first quarter of 2022, representing a year-over-year decrease of 16.5% from the corresponding period in 2021. The decrease was primarily due to the decrease in promotion expenses.

 

·General and administrative expenses were RMB27.7 million (US$4.4 million) in the first quarter of 2022, representing a year-over-year decrease of 38.2%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.2 million (US$0.2 million), were RMB26.5 million (US$4.2 million) in the first quarter of 2022, representing a year-over-year decrease of 38.2% from the corresponding period in 2021. The decrease was primarily due to the decrease in general and administrative personnel related expenses and allowance for doubtful accounts.

 

Loss from operations was RMB52.8 million (US$8.3 million) in the first quarter of 2022, compared to a loss from operations of RMB54.9 million in the first quarter of 2021. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB49.6 million (US$7.8 million) in the first quarter of 2022.

 

Net loss was RMB41.7 million (US$6.6 million) in the first quarter of 2022, compared to a net loss of RMB41.6 million in the first quarter of 2021. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB38.4 million (US$6.1 million) in the first quarter of 2022.

 

 

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 attributable to ordinary shareholders was RMB40.4 million (US$6.4 million) in the first quarter of 2022, compared to a net loss attributable to ordinary shareholders of RMB39.5 million in the first quarter of 2021. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB37.2 million (US$5.9 million) in the first quarter of 2022.

 

As of March 31, 2022, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB929.5 million (US$146.6 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 second quarter of 2022, the Company expects to generate RMB32.2 million to RMB40.2 million of net revenues, which represents a 75% to 80% 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 a.m. U.S. Eastern Time, on June 9, 2022, (8:00 p.m., Beijing/Hong Kong Time, on June 9, 2022) to discuss the first quarter 2022 financial results.

 

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

 

U.S.: +1-888-346-8982
   
Hong Kong: +852-301-84992
   
Mainland China: 4001-201203
   
International: +1-412-902-4272

 

Conference ID: Tuniu 1Q 2022 Earnings Call

 

A telephone replay will be available one hour after the end of the conference call through June 16, 2022. The dial-in details are as follows:

 

U.S.: +1-877-344-7529
   
International: +1-412-317-0088

 

Replay Access Code: 2866159

 

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 and amortization of acquired intangible assets. We believe that the non-GAAP financial measures used in this press release are useful for understanding and assessing underlying business performance and operating trends, and management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and when planning and forecasting future periods. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP Results" set forth at the end of this press release.

 

A limitation of using non-GAAP financial measures excluding share-based compensation expenses and amortization of acquired intangible assets is that share-based compensation expenses and amortization of acquired intangible assets have been – and will continue to be – significant recurring expenses in the Company's business. You should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies.

 

For investor and media inquiries, please contact:

 

China

 

Mary Chen

 

Investor Relations Director

 

Tuniu Corporation

 

Phone: +86-25-6960-9988

 

E-mail: ir@tuniu.com

 

(Financial Tables Follow)

 

 

 

 

Tuniu Corporation
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except per share information)

 

   December 31, 2021   March 31, 2022   March 31, 2022 
   RMB   RMB   US$ 
ASSETS               
Current assets               
Cash and cash equivalents   349,077    320,589    50,572 
Restricted cash   46,521    30,318    4,783 
Short-term investments   615,901    578,561    91,266 
Accounts receivable, net   111,941    99,338    15,670 
Amounts due from related parties   14,969    14,515    2,290 
Prepayments and other current assets   337,033    361,319    56,997 
Total current assets   1,475,442    1,404,640    221,578 
                
Non-current assets               
Long-term investments   201,947    207,664    32,758 
Property and equipment, net   98,159    94,770    14,950 
Intangible assets, net   55,376    52,583    8,295 
Land use right, net   94,652    94,136    14,850 
Operating lease right-of-use assets, net   48,115    37,898    5,978 
Goodwill   232,007    232,007    36,598 
Other non-current assets   92,111    89,607    14,135 
Total non-current assets   822,367    808,665    127,564 
Total assets   2,297,809    2,213,305    349,142 
                
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY               
Current liabilities               
Short-term borrowings   9,981    9,558    1,508 
Accounts and notes payable   383,626    371,078    58,536 
Amounts due to related parties   4,679    3,250    513 
Salary and welfare payable   33,761    37,195    5,867 
Taxes payable   8,004    4,461    704 
Advances from customers   139,777    109,574    17,285 
Operating lease liabilities, current   16,556    15,433    2,434 
Accrued expenses and other current liabilities   382,629    393,919    62,142 
Total current liabilities   979,013    944,468    148,989 
                
Non-current liabilities               
Operating lease liabilities, non-current   38,832    31,842    5,023 
Deferred tax liabilities   12,479    11,926    1,881 
Long-term borrowings   14,344    12,738    2,009 
Total non-current liabilities   65,655    56,506    8,913 
Total liabilities   1,044,668    1,000,974    157,902 
                
Redeemable noncontrolling interests   27,200    27,200    4,291 
                
Equity               
Ordinary shares   249    249    39 
Less: Treasury stock   (293,795)   (293,433)   (46,288)
Additional paid-in capital   9,125,748    9,126,362    1,439,648 
Accumulated other comprehensive income   271,821    271,691    42,858 
Accumulated deficit   (7,834,879)   (7,875,312)   (1,242,300)
Total Tuniu Corporation shareholders’ equity   1,269,144    1,229,557    193,957 
Noncontrolling interests   (43,203)   (44,426)   (7,008)
Total equity   1,225,941    1,185,131    186,949 
Total liabilities, redeemable noncontrolling interests and equity   2,297,809    2,213,305    349,142 

 

 

 

 

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, 2021   December 31, 2021   March 31, 2022   March 31, 2022 
   RMB   RMB   RMB   US$ 
Revenues                    
Packaged tours   45,361    42,761    14,375    2,268 
Others   31,999    30,642    27,104    4,276 
Net revenues   77,360    73,403    41,479    6,544 
Cost of revenues   (48,706)   (39,250)   (25,666)   (4,049)
Gross profit   28,654    34,153    15,813    2,495 
                     
Operating expenses                    
Research and product development   (11,791)   (13,494)   (16,185)   (2,553)
Sales and marketing   (35,418)   (28,612)   (29,783)   (4,698)
General and administrative   (44,744)   (46,512)   (27,658)   (4,363)
Other operating income   8,437    10,571    5,000    789 
Total operating expenses   (83,516)   (78,047)   (68,626)   (10,825)
Loss from operations   (54,862)   (43,894)   (52,813)   (8,330)
Other (expenses)/income                    
Interest and investment income   15,283    6,171    11,524    1,818 
Interest expense   (2,636)   (1,814)   (1,950)   (308)
Foreign exchange gains/(losses), net   (1,249)   4,453    129    20 
Other income, net   1,086    459    659    104 
Loss before income tax expense   (42,378)   (34,625)   (42,451)   (6,696)
Income tax benefit/(expense)   618    (1,450)   553    87 
Equity in income/(loss) of affiliates   129    (169)   242    38 
Net loss   (41,631)   (36,244)   (41,656)   (6,571)
Net loss attributable to noncontrolling interests   (2,150)   (2,348)   (1,223)   (193)
Net loss attributable to Tuniu Corporation   (39,481)   (33,896)   (40,433)   (6,378)
Net loss attributable to ordinary shareholders   (39,481)   (33,896)   (40,433)   (6,378)
                     
Net loss   (41,631)   (36,244)   (41,656)   (6,571)
Other comprehensive loss:                    
Foreign currency translation adjustment, net of nil tax   3,647    (4,134)   (130)   (21)
Comprehensive loss   (37,984)   (40,378)   (41,786)   (6,592)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.11)   (0.09)   (0.11)   (0.02)
Net loss per ADS - basic and diluted*   (0.33)   (0.27)   (0.33)   (0.06)
                     
Weighted average number of ordinary shares used in computing basic and diluted loss per share   370,590,545    371,020,652    371,079,992    371,079,992 
                     
Share-based compensation expenses included are as follows：                    
Cost of revenues   54    78    77    12 
Research and product development   153    136    243    38 
Sales and marketing   122    129    121    19 
General and administrative   1,201    770    534    84 
Total   1,530    1,113    975    153 

 

*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, 2022 
   GAAP Result   Share-based   Amortization of acquired   Non-GAAP 
       Compensation   intangible assets   Result 
Cost of revenues   (25,666)   77    -    (25,589)
                     
Research and product development   (16,185)   243    534    (15,408)
Sales and marketing   (29,783)   121    1,065    (28,597)
General and administrative   (27,658)   534    637    (26,487)
Other operating income   5,000    -    -    5,000 
Total operating expenses   (68,626)   898    2,236    (65,492)
                     
Loss from operations   (52,813)   975    2,236    (49,602)
                     
Net loss   (41,656)   975    2,236    (38,445)
                     
Net loss attributable to ordinary shareholders   (40,433)   975    2,236    (37,222)
                     
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   371,079,992              371,079,992 

 

   Quarter Ended December 31, 2021 
   GAAP Result   Share-based   Amortization of acquired   Non-GAAP 
       Compensation   intangible assets   Result 
Cost of revenues   (39,250)   78    -    (39,172)
                     
Research and product development   (13,494)   136    534    (12,824)
Sales and marketing   (28,612)   129    1,065    (27,418)
General and administrative   (46,512)   770    637    (45,105)
Other operating income   10,571    -    -    10,571 
Total operating expenses   (78,047)   1,035    2,236    (74,776)
                     
Loss from operations   (43,894)   1,113    2,236    (40,545)
                     
Net loss   (36,244)   1,113    2,236    (32,895)
                     
Net loss attributable to ordinary shareholders   (33,896)   1,113    2,236    (30,547)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.09)             (0.08)
Net loss per ADS - basic and diluted   (0.27)             (0.24)
                     
Weighted average number of ordinary shares used in computing basic and diluted loss per share   371,020,652              371,020,652 

 

   Quarter Ended March 31, 2021 
   GAAP Result   Share-based   Amortization of acquired   Non-GAAP 
       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 

 

*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.