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Tuniu Announces Unaudited Second Quarter 2023 Financial Results

NANJING, China, Aug. 17, 2023 /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 second quarter ended June 30, 2023.

Highlights for the Second Quarter of 2023

  • Net revenues in the second quarter of 2023 increased by 170.5% year-over-year to RMB100.0 million (US$13.8 million[1]).
  • Revenues from package tours in the second quarter of 2023 increased by 632.3% year-over-year to RMB69.8 million (US$9.6 million).
  • Gross profit in the second quarter of 2023 increased by 296.0% year-over-year to RMB65.4 million (US$9.0 million).
  • Income from operations in the second quarter of 2023 was RMB6.8 million (US$0.9 million), compared to a loss from operations of RMB122.9 million in the second quarter of 2022. Non-GAAP[2] income from operations in the second quarter of 2023 was RMB12.1 million (US$1.7 million), compared to a Non-GAAP loss from operations of RMB38.9 million in the second quarter of 2022.
  • Net income in the second quarter of 2023 was RMB221.0 thousand (US$30.0 thousand), compared to a net loss of RMB128.5 million in the second quarter of 2022. Non-GAAP net income in the second quarter of 2023 was RMB5.6 million (US$0.8 million), compared to a Non-GAAP net loss of RMB44.6 million in the second quarter of 2022.

"We are encouraged to report a strong performance for the second quarter of 2023, with our net revenues growing by 170.5% year-over-year, and revenues from packaged tours increasing by 632.3% year-over-year. We have achieved our first quarterly operating profit since Tuniu's listing and our first quarterly net income since the pandemic outbreak." said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "This demonstrates that as the external environment improves, we have effective strategies in place across our products, services and technology to strengthen Tuniu's operational and financial performance. We will continue to leverage Tuniu's core advantages in both the upstream and downstream segments of our industry chain, differentiating ourselves in the market as we continue to create value for our customers and shareholders."

[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.2513 on June 30, 2023 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at . 

[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.

Second Quarter 2023 Results

Net revenues were RMB100.0 million (US$13.8 million) in the second quarter of 2023, representing a year-over-year increase of 170.5% from the corresponding period in 2022. The increase was primarily due to the growth of packaged tours as the travel market recovers.

  • Revenues from packaged tours were RMB69.8 million (US$9.6 million) in the second quarter of 2023, representing a year-over-year increase of 632.3% from the corresponding period in 2022. The increase was primarily due to the growth of organized tours.
  • Other revenues were RMB30.2 million (US$4.2 million) in the second quarter of 2023, representing a year-over-year increase of 10.0% from the corresponding period in 2022. The increase was primarily due to the increase in service fees received from insurance companies.

Cost of revenues was RMB34.5 million (US$4.8 million) in the second quarter of 2023, representing a year-over-year increase of 69.0% from the corresponding period in 2022. As a percentage of net revenues, cost of revenues was 34.6% in the second quarter of 2023, compared to 55.3% in the corresponding period in 2022.

Gross profit was RMB65.4 million (US$9.0 million) in the second quarter of 2023, representing a year-over-year increase of 296.0% from the corresponding period in 2022.

Operating expenses were RMB58.6 million (US$8.1 million) in the second quarter of 2023, representing a year-over-year decrease of 57.9% from the corresponding period in 2022. The decrease was primarily due to the fact that the Company did not incur gain on disposals of subsidiaries and impairment of goodwill in the second quarter of 2023. Gain on disposals of subsidiaries, which was recorded in other operating income, in the amount of RMB32.8 million and impairment of goodwill in the amount of RMB112.1 million were incurred as operating expenses in the second quarter of 2022. 

  • Research and product development expenses were RMB13.8 million (US$1.9 million) in the second quarter of 2023, representing a year-over-year decrease of 1.0%. The decrease was primarily due to the decrease in amortization of acquired intangible assets.
  • Sales and marketing expenses were RMB24.9 million (US$3.4 million) in the second quarter of 2023, representing a year-over-year increase of 1.8%. The increase was primarily due to the increase in promotion expenses.
  • General and administrative expenses were RMB21.7 million (US$3.0 million) in the second quarter of 2023, representing a year-over-year decrease of 9.0%. The decrease was primarily due to the decrease in general and administrative personnel related expenses.

Income from operations was RMB6.8 million (US$0.9 million) in the second quarter of 2023, compared to a loss from operations of RMB122.9 million in the second quarter of 2022. Non-GAAP income from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill, was RMB12.1 million (US$1.7 million) in the second quarter of 2023.

Net income was RMB221.0 thousand (US$30.0 thousand) in the second quarter of 2023, compared to a net loss of RMB128.5 million in the second quarter of 2022. Non-GAAP net income, which excluded share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill, was RMB5.6 million (US$0.8 million) in the second quarter of 2023.

Net income attributable to ordinary shareholders of Tuniu Corporation was RMB0.7 million (US$0.1 million) in the second quarter of 2023, compared to a net loss attributable to ordinary shareholders of Tuniu Corporation of RMB126.5 million in the second quarter of 2022. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill, was RMB6.0 million (US$0.8 million) in the second quarter of 2023.

As of June 30, 2023, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.1 billion (US$155.5 million).

Business Outlook

For the third quarter of 2023, Tuniu expects to generate RMB163.5 million to RMB171.3 million of net revenues, which represents a 110% to 120% increase year-over-year compared with net revenues in the corresponding period in 2022. 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 17, 2023, (8:00 pm, Beijing/Hong Kong Time, on August 17, 2023) to discuss the second quarter 2023 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 2Q 2023 Earnings Conference Call

A telephone replay will be available one hour after the end of the conference call through August 24, 2023. The dial-in details are as follows:

US

1-877-344-7529

International

1-412-317-0088

Replay Access Code: 6774303

Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at .

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 .

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 income/(loss) from operations, net income/(loss), net income/(loss) attributable to ordinary shareholders of Tuniu Corporation, which excludes share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill. 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.

(Financial Tables Follow)

 

Tuniu Corporation

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands, except per share information)


 December 31, 2022 


 June 30, 2023 


 June 30, 2023 


 RMB 


 RMB 


 US$ 







ASSETS






Current assets






Cash and cash equivalents

153,835


309,153


42,634

Restricted cash 

44,052


31,335


4,321

Short-term investments

724,413


787,348


108,580

Accounts receivable, net

33,644


77,746


10,722

Amounts due from related parties

1,030


2,855


394

Prepayments and other current assets  

242,994


222,491


30,683

Total current assets

1,199,968


1,430,928


197,334







Non-current assets






Long-term investments

230,562


230,827


31,832

Property and equipment, net

85,182


79,225


10,926

Intangible assets, net

30,672


28,767


3,967

Land use right, net

92,590


91,559


12,627

Operating lease right-of-use assets, net

33,204


14,905


2,055

Goodwill

114,661


114,661


15,812

Other non-current assets

91,091


73,596


10,149

Total non-current assets

677,962


633,540


87,368

Total assets

1,877,930


2,064,468


284,702







LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND

EQUITY






Current liabilities






Short-term borrowings

7,517


7,215


995

Accounts and notes payable 

261,873


328,760


45,338

Amounts due to related parties

4,710


5,522


762

Salary and welfare payable

26,507


24,314


3,353

Taxes payable

4,047


1,737


240

Advances from customers

98,899


247,473


34,128

Operating lease liabilities, current

12,439


2,667


368

Accrued expenses and other current liabilities

358,312


349,899


48,252

Total current liabilities

774,304


967,587


133,436







Non-current liabilities






Operating lease liabilities, non-current

26,482


10,014


1,381

Deferred tax liabilities

6,839


6,433


887

Long-term borrowings

11,959


10,941


1,509

Total non-current liabilities

45,280


27,388


3,777

Total liabilities

819,584


994,975


137,213







Redeemable noncontrolling interests

27,200


27,200


3,751







Equity






Ordinary shares

249


249


34

Less: Treasury stock

(288,600)


(287,548)


(39,655)

Additional paid-in capital

9,125,655


9,129,654


1,259,037

Accumulated other comprehensive income

298,981


312,677


43,120

Accumulated deficit

(8,028,261)


(8,034,620)


(1,108,025)

Total Tuniu Corporation shareholders' equity

1,108,024


1,120,412


154,511

Noncontrolling interests

(76,878)


(78,119)


(10,773)

Total equity

1,031,146


1,042,293


143,738

Total liabilities, redeemable noncontrolling interests and equity

1,877,930


2,064,468


284,702

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income

(All amounts in thousands, except per share information)


 Quarter Ended 


 Quarter Ended 


 Quarter Ended 


 Quarter Ended 


 June 30, 2022 


 March 31, 2023 


 June 30, 2023 


 June 30, 2023 


 RMB 


 RMB 


 RMB 


 US$ 









Revenues








Packaged tours

9,531


40,130


69,793


9,625

Others

27,426


23,051


30,159


4,159

Net revenues

36,957


63,181


99,952


13,784

Cost of revenues

(20,440)


(24,301)


(34,547)


(4,764)

Gross profit

16,517


38,880


65,405


9,020









Operating expenses








Research and product development

(13,963)


(14,328)


(13,820)


(1,906)

Sales and marketing

(24,474)


(19,987)


(24,906)


(3,435)

General and administrative

(23,888)


(22,319)


(21,741)


(2,998)

Impairment of goodwill

(112,102)


-


-


-

Other operating income

35,059


762


1,841


254

Total operating expenses

(139,368)


(55,872)


(58,626)


(8,085)

(Loss)/income from operations

(122,851)


(16,992)


6,779


935

Other income/(expenses)








Interest and investment income, net

5,206


6,321


7,122


982

Interest Expense

(582)


(1,149)


(218)


(30)

Foreign exchange (losses)/gains, net

(11,424)


3,514


(15,152)


(2,090)

Other income, net

302


1,101


1,820


251

(Loss)/income before income tax expense

(129,349)


(7,205)


351


48

Income taxes benefit/(expense) 

21


203


(783)


(108)

Equity in income/(loss) of affiliates

790


(469)


653


90

Net (loss)/income

(128,538)


(7,471)


221


30

Net loss attributable to noncontrolling interests

(2,019)


(454)


(437)


(60)

Net (loss)/income attributable to ordinary shareholders of Tuniu

Corporation

(126,519)


(7,017)


658


90









Net (loss)/income

(128,538)


(7,471)


221


30

Other comprehensive income/(loss):








Foreign currency translation adjustment, net of nil tax

17,277


(4,040)


17,736


2,446

Comprehensive (loss)/income

(111,261)


(11,511)


17,957


2,476









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

shareholders - basic and diluted

(0.34)


(0.02)


-


-

Net (loss)/income per ADS - basic and diluted*

(1.02)


(0.06)


-


-









Weighted average number of ordinary shares used in computing

basic (loss)/income per share

371,112,997


371,394,686


371,418,638


371,418,638

Weighted average number of ordinary shares used in computing

diluted (loss)/income per share

371,112,997


371,394,686


376,427,714


376,427,714









Share-based compensation expenses included are as follows:








Cost of revenues

291


18


54


7

Research and product development

299


18


54


7

Sales and marketing

448


(16)


28


4

General and administrative

1,639


758


4,383


604

Total

2,677


778


4,519


622









*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, 2023


 GAAP Result 


 Share-based 


Amortization of acquired 


Gain on disposals


Impairment


 Non-GAAP 



 Compensation 


  intangible assets 


  of subsidiaries 


 of goodwill 


 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 of Tuniu

Corporation

658


4,519


828


-


-


6,005


























 Quarter Ended March 31, 2023


 GAAP Result 


 Share-based 


Amortization of acquired 


Gain on disposals


Impairment


 Non-GAAP 



 Compensation 


  intangible assets 


  of subsidiaries 


 of goodwill 


 Result 













Loss from operations

(16,992)


778


828


-


-


(15,386)













Net loss

(7,471)


778


828


-


-


(5,865)













Net loss attributable to ordinary shareholders of Tuniu

Corporation

(7,017)


778


828


-


-


(5,411)


























 Quarter Ended June 30, 2022


 GAAP Result 


 Share-based 


Amortization of acquired 


Gain on disposals


Impairment


 Non-GAAP 



 Compensation 


  intangible assets 


  of subsidiaries 


 of goodwill 


 Result 













Loss from operations

(122,851)


2,677


1,939


(32,786)


112,102


(38,919)













Net loss

(128,538)


2,677


1,939


(32,786)


112,102


(44,606)













Net loss attributable to ordinary shareholders of Tuniu

Corporation

(126,519)


2,677


1,939


(32,786)


112,102


(42,587)

 


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