EX-99.1 2 tm2420967d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Tuniu Announces Unaudited Second Quarter 2024 Financial Results

 

NANJING, China, August 6, 2024 - 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, 2024.

 

Highlights for the Second Quarter of 2024

 

·Revenues from package tours in the second quarter of 2024 increased by 28.6% year-over-year to RMB89.8 million (US$12.4 million1).

 

·Gross profit in the second quarter of 2024 increased by 29.1% year-over-year to RMB84.4 million (US$11.6 million).

 

·Income from operations was RMB34.5 million (US$4.7 million) in the second quarter of 2024, compared to an income from operations of RMB6.8 million in the second quarter of 2023.

 

·Net income was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income of RMB0.2 million in the second quarter of 2023.

 

"Tuniu continued to demonstrate steady growth in the second quarter of 2024, with revenues from packaged tours, our core business, increasing by 28.6% year-over-year." said Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer. "We also saw further improvement in our profitability with net income reaching a quarterly record high since our listing. This quarter, we continued to focus on our core business and products, further enhancing product quality and offerings in order to provide better services and travel experience for our customers. We also continued to adapt to changes in user shopping habits by strengthening our new media operations, in order to attract new customers through multiple channels to drive business growth. With the arrival of the summer season, Tuniu is well prepared to meet the opportunities and challenges ahead of us as we look forward to delivering strong value for our shareholders going forward."

 

Second Quarter 2024 Results

 

Net revenues were RMB116.9 million (US$16.1 million) in the second quarter of 2024, representing a year-over-year increase of 17.0% from the corresponding period in 2023.

 

·Revenues from packaged tours were RMB89.8 million (US$12.4 million) in the second quarter of 2024, representing a year-over-year increase of 28.6% from the corresponding period in 2023. The increase was primarily due to the growth of organized tours.

 

·Other revenues were RMB27.2 million (US$3.7 million) in the second quarter of 2024, representing a year-over-year decrease of 10.0% from the corresponding period in 2023. The decrease was primarily due to the decrease in commission fees received from other travel-related products and revenues generated from financial services.

 

 

1 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.2672 on June 28, 2024 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.

 

 

 

 

Cost of revenues was RMB32.5 million (US$4.5 million) in the second quarter of 2024, representing a year-over-year decrease of 5.8% from the corresponding period in 2023. As a percentage of net revenues, cost of revenues was 27.8% in the second quarter of 2024, compared to 34.6% in the corresponding period in 2023.

 

Gross profit was RMB84.4 million (US$11.6 million) in the second quarter of 2024, representing a year-over-year increase of 29.1% from the corresponding period in 2023.

 

Operating expenses were RMB49.9 million (US$6.9 million) in the second quarter of 2024, representing a year-over-year decrease of 14.9% from the corresponding period in 2023. Net gain on disposals of subsidiaries which was allocated to operating expenses, was RMB24.6 million (US$3.4 million) in the second quarter of 2024.

 

·Research and product development expenses were RMB12.7 million (US$1.7 million) in the second quarter of 2024, representing a year-over-year decrease of 8.2%. The decrease was primarily due to the decrease in research and product development personnel related expenses. Research and product development expenses as a percentage of net revenues were 10.9% in the second quarter of 2024, decreasing from 13.8% as a percentage of net revenues in the corresponding period in 2023.

 

·Sales and marketing expenses were RMB40.2 million (US$5.5 million) in the second quarter of 2024, representing a year-over-year increase of 61.5%. The increase was primarily due to the increase in promotion expenses and sales and marketing personnel related expenses. Sales and marketing expenses as a percentage of net revenues were 34.4% in the second quarter of 2024, increasing from 24.9% as a percentage of net revenues in the corresponding period in 2023.

 

·General and administrative expenses were RMB21.7 million (US$3.0 million) in the second quarter of 2024, which was in line with general and administrative expenses in the second quarter of 2023. General and administrative expenses as a percentage of net revenues were 18.6% in the second quarter of 2024, decreasing from 21.8% as a percentage of net revenues in the corresponding period in 2023.

 

Income from operations was RMB34.5 million (US$4.7 million) in the second quarter of 2024, compared to an income from operations of RMB6.8 million in the second quarter of 2023. Non-GAAP2 income from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB12.3 million (US$1.7 million) in the second quarter of 2024.

 

 

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 income was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income of RMB0.2 million in the second quarter of 2023. Non-GAAP net income, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB20.8 million (US$2.9 million) in the second quarter of 2024.

 

Net income attributable to ordinary shareholders of Tuniu Corporation was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income attributable to ordinary shareholders of Tuniu Corporation of RMB0.7 million in the second quarter of 2023. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB20.8 million (US$2.9 million) in the second quarter of 2024.

 

As of June 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.3 billion (US$176.0 million).

 

Business Outlook

 

For the third quarter of 2024, Tuniu expects to generate RMB183.5 million to RMB192.4 million of net revenues, which represents a 3% to 8% increase year-over-year compared with net revenues in the corresponding period in 2023. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.

 

Share Repurchase Update

 

In March 2024, the Company's Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$10 million worth of its ordinary shares or American depositary shares representing ordinary shares. As of July 31, 2024, the Company had repurchased an aggregate of approximately 4.6 million ADSs for approximately US$4.1 million from the open market under the share repurchase program.

 

Conference Call Information

 

Tuniu’s management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on August 6, 2024, (8:00 pm, Beijing/Hong Kong Time, on August 6, 2024) to discuss the second quarter 2024 financial results.

 

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

 

  United States 1-888-346-8982
  Hong Kong 852-301-84992
  Mainland China 4001-201203
  International 1-412-902-4272

 

Conference ID: Tuniu 2Q 2024 Earnings Conference Call

 

 

 

 

A telephone replay will be available one hour after the end of the conference call through August 13, 2024. The dial-in details are as follows:

 

  United States 1-877-344-7529
  International 1-412-317-0088

 

Replay Access Code: 9667429

 

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 integrated travel service with 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 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; Tuniu’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; government policies and regulations relating to Tuniu’s structure, business and industry; the impact of health epidemics 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 income from operations, net income, net income attributable to ordinary shareholders of Tuniu Corporation, which excludes share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. 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.

 

This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. Tuniu encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

 

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.

 

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)

 

   December 31, 2023   June 30, 2024   June 30, 2024 
   RMB   RMB   US$ 
ASSETS               
Current assets               
Cash and cash equivalents   378,989    652,819    89,831 
Restricted cash   65,902    26,675    3,671 
Short-term investments   777,890    599,682    82,519 
Accounts receivable, net   41,633    54,863    7,549 
Amounts due from related parties   9,515    503    69 
Prepayments and other current assets   234,189    210,642    28,985 
Total current assets   1,508,118    1,545,184    212,624 
                
Non-current assets               
Long-term investments   209,819    210,312    28,940 
Property and equipment, net   57,479    54,567    7,509 
Intangible assets, net   26,091    23,513    3,235 
Land use right, net   90,529    89,498    12,315 
Operating lease right-of-use assets, net   12,484    10,801    1,486 
Other non-current assets   55,960    47,863    6,586 
Total non-current assets   452,362    436,554    60,071 
Total assets   1,960,480    1,981,738    272,695 
                
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY               
Current liabilities               
Short-term borrowings   7,277    36    5 
Accounts and notes payable   317,104    366,052    50,370 
Amounts due to related parties   6,405    8,724    1,200 
Salary and welfare payable   21,401    19,750    2,718 
Taxes payable   4,305    2,286    315 
Advances from customers   270,197    223,609    30,770 
Operating lease liabilities, current   2,709    3,297    454 
Accrued expenses and other current liabilities   329,481    316,711    43,580 
Total current liabilities   958,879    940,465    129,412 
                
Non-current liabilities               
Operating lease liabilities, non-current   5,348    3,556    489 
Deferred tax liabilities   6,027    5,524    760 
Long-term borrowings   10,395    -    - 
Total non-current liabilities   21,770    9,080    1,249 
Total liabilities   980,649    949,545    130,661 
                
Redeemable noncontrolling interests   27,200    27,200    3,743 
                
Equity               
Ordinary shares   249    249    34 
Less: Treasury stock   (285,983)   (311,052)   (42,802)
Additional paid-in capital   9,138,720    9,144,917    1,258,382 
Accumulated other comprehensive income   305,416    311,751    42,898 
Accumulated deficit   (8,127,552)   (8,070,619)   (1,110,554)
Total Tuniu Corporation shareholders’ equity   1,030,850    1,075,246    147,958 
Noncontrolling interests   (78,219)   (70,253)   (9,667)
Total equity   952,631    1,004,993    138,291 
Total liabilities, redeemable noncontrolling interests and equity   1,960,480    1,981,738    272,695 

 

 

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Income

(All amounts in thousands, except per share information)

 

   Quarter Ended   Quarter Ended   Quarter Ended   Quarter Ended 
   June 30, 2023   March 31, 2024   June 30, 2024   June 30, 2024 
   RMB   RMB   RMB   US$ 
Revenues                    
Packaged tours   69,793    82,951    89,782    12,354 
Others   30,159    25,007    27,155    3,737 
Net revenues   99,952    107,958    116,937    16,091 
Cost of revenues   (34,547)   (25,913)   (32,530)   (4,476)
Gross profit   65,405    82,045    84,407    11,615 
                     
Operating expenses                    
Research and product development   (13,820)   (13,024)   (12,693)   (1,747)
Sales and marketing   (24,906)   (36,824)   (40,222)   (5,535)
General and administrative   (21,741)   (20,479)   (21,737)   (2,991)
Other operating income   1,841    582    24,735    3,404 
Total operating expenses   (58,626)   (69,745)   (49,917)   (6,869)
Income from operations   6,779    12,300    34,490    4,746 
Other income/(expenses)                    
Interest and investment income, net   7,122    10,041    8,221    1,131 
Interest expense   (218)   (613)   (1,230)   (169)
Foreign exchange losses, net   (15,152)   (568)   (1,282)   (176)
Other income, net   1,820    1,279    1,822    251 
Income before income tax expense   351    22,439    42,021    5,783 
Income tax (loss)/benefit   (783)   64    (459)   (63)
Equity in income/(loss) of affiliates   653    (604)   1,438    198 
Net income   221    21,899    43,000    5,918 
Net  (loss)/income attributable to noncontrolling interests   (437)   7,988    (22)   (3)
Net income attributable to ordinary shareholders of Tuniu Corporation   658    13,911    43,022    5,921 
                     
Net income   221    21,899    43,000    5,918 
Other comprehensive income:                    
Foreign currency translation adjustment, net of nil tax   17,736    2,034    4,301    592 
Comprehensive income   17,957    23,933    47,301    6,510 
                     
Net income per ordinary share attributable to ordinary shareholders - basic and diluted   0.00    0.04    0.12    0.02 
Net income per ADS - basic and diluted*   0.00    0.12    0.36    0.06 
                     
Weighted average number of ordinary shares used in computing basic income per share   371,418,638    371,473,623    363,061,543    363,061,543 
Weighted average number of ordinary shares used in computing diluted income per share   376,427,714    373,323,330    365,317,172    365,317,172 
                     
Share-based compensation expenses included are as follows：                    
Cost of revenues   54    65    65    9 
Research and product development   54    65    65    9 
Sales and marketing   28    31    31    4 
General and administrative   4,383    4,830    1,429    197 
Total   4,519    4,991    1,590    219 

 

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

 

 

 

 

Tuniu Corporation

Reconciliations  of GAAP and Non-GAAP Results

(All amounts in thousands)

 

   Quarter Ended June 30, 2024 
   GAAP Result   Share-based
Compensation		   Amortization of acquired
intangible assets		   Net gain on
disposals of subsidiaries		   Non-GAAP
Result		 
Income from operations   34,490    1,590    828    (24,618)   12,290 
                          
Net income   43,000    1,590    828    (24,618)   20,800 
                          
Net income attributable to ordinary shareholders   43,022    1,590    828    (24,618)   20,822 

 

   Quarter Ended March 31, 2024 
   GAAP Result   Share-based
Compensation		   Amortization of acquired
intangible assets		   Net gain on
disposals of subsidiaries		   Non-GAAP
Result		 
Income from operations   12,300    4,991    828    -    18,119 
                          
Net income   21,899    4,991    828    -    27,718 
                          
Net income attributable to ordinary shareholders   13,911    4,991    828    -    19,730 

 

   Quarter Ended June 30, 2023 
   GAAP Result   Share-based
Compensation		   Amortization of acquired
intangible assets		   Net gain on
disposals of subsidiaries		   Non-GAAP
Result		 
Income from operations   6,779    4,519    828    -    12,126 
                          
Net income   221    4,519    828    -    5,568 
                          
Net income attributable to ordinary shareholders   658    4,519    828    -    6,005