Tuniu Announces Unaudited Second Quarter 2021 Financial Results

Author: Tuniu / 2023-07-23 23:28 / Source: Tuniu

Tuniu Announces Unaudited Second Quarter 2021 Financial Results

NANJING,China,Aug. 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 million[1]).

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."

[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.

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.

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-GAAP[2]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 operationswas 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,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,was RMB8.4 million (US$1.3 million) in the second quarter of 2021.

Net loss attributable to ordinary shareholderswas 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,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,(8:00 pm,Beijing/Hong Kong Time,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,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.

AboutTuniu

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 coversover 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.

(Financial Tables Follow)

Tuniu Corporation

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands,except per share information)

December 31,2020

June 30,2021

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

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

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

4,213

Equity

Ordinary shares

249

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

3,041

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(All amounts in thousands,except per share information)

QuarterEnded

June 30,2020

March 31,2021

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

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

Net loss attributable to ordinary shareholders

(147,614)

(39,023)

Net loss

(154,170)

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

370,055

Share-based compensation expenses included are as follows：

Cost of revenues

189

Research and product development

832

153

Sales and marketing

147

122

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

GAAP Result

Share-based

Amortization of acquired

Non-GAAP

Compensation

intangible assets

Result

Cost of revenues

(91,975)

(91,931)

Research and product development

(13,757)

782

(12,899)

Sales and marketing

(44,795)

1,065

(43,669)

General and administrative

(41,541)

2,928

681

(37,932)

Other operating income

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)

3,528

(8,377)

Net loss attributable to ordinary shareholders

(13,065)

3,528

(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

370,055

Quarter Ended March 31,2021

GAAP Result

Share-based

Amortization of acquired

Non-GAAP

Compensation

intangible assets

Result

Cost of revenues

(48,706)

(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

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)

1,528

(37,573)

Net loss attributable to ordinary shareholders

(39,481)

1,528

(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

370,545

Quarter Ended June 30,2020

GAAP Result

Share-based

Amortization of acquired

Non-GAAP

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

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)

2,406

(135,293)

Net loss attributable to ordinary shareholders

(147,614)

2,406

(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

370,186

*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.