Tuniu Announces Unaudited First Quarter 2023 Financial Results

NANJING,China,June 9,2023 -- 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 31,2023.

Highlights for the First Quarter of 2023

Net revenues in the first quarter of 2023 increased by 52.3% year-over-year to RMB63.2 million (US$9.2 million[1]).

Revenues from package tours in the first quarter of 2023 increased by 179.2% year-over-year to RMB40.1 million (US$5.8 million).

Gross profit in the first quarter of 2023 increased by 145.9% year-over-year to RMB38.9 million (US$5.7 million).

Operating expenses in the first quarter of 2023 decreased by 18.6% year-over-year to RMB55.9 million (US$8.1 million).

"We are pleased to see a robust rebound in our business during the first quarter of 2023. Our net revenues experienced strong year-over-year growth of 52%,while revenues from packaged tours soared 179% compared to the previous year. By capitalizing on our integrated model,we are strategically leveraging our deep supply chain and broad network of sales channels to attract an increasing number of customers and partners with Tuniu's high-quality products and services. We are confident that this approach will continue to provide a strong foundation for our accelerated growth," said Mr. Donald Dunde Yu,Tuniu's founder,Chairman and Chief Executive Officer. "We're also pleased to note that our operating cash flow turned positive for the quarter as we continued to reduce operating expenses,further narrowing losses as compared to the same period last year. We remain committed to enhancing profitability by leveraging digitalization across all aspects of Tuniu's product development,management,and sales."

[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 6.8676 on March 31,2023 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.

First Quarter 2023 Results

Net revenues were RMB63.2 million (US$9.2 million) in the first quarter of 2023,representing a year-over-year increase of 52.3% 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 RMB40.1 million (US$5.8 million) in the first quarter of 2023,representing a year-over-year increase of 179.2% from the corresponding period in 2022. The increase was primarily due to the growth of organized tours.

Other revenues were RMB23.1 million (US$3.4 million) in the first quarter of 2023,representing a year-over-year decrease of 15.0% from the corresponding period in 2022. The decrease was primarily due to the decrease in commission fees received from other travel-related products and revenues generated from financial services.

Cost of revenues was RMB24.3 million (US$3.5 million) in the first quarter of 2023,representing a year-over-year decrease of 5.3% from the corresponding period in 2022. As a percentage of net revenues,cost of revenues was 38.5% in the first quarter of 2023,compared to 61.9% in the corresponding period in 2022.

Gross profit was RMB38.9 million (US$5.7 million) in the first quarter of 2023,representing a year-over-year increase of 145.9% from the corresponding period in 2022.

Operating expenseswere RMB55.9 million (US$8.1 million) in the first quarter of 2023,representing a year-over-year decrease of 18.6% from the corresponding period in 2022.

Research and product development expenses were RMB14.3 million (US$2.1 million) in the first quarter of 2023,representing a year-over-year decrease of 11.5%. The decrease was primarily due to the decrease in research and product development personnel related expenses.

Sales and marketing expenses were RMB20.0 million (US$2.9 million) in the first quarter of 2023,representing a year-over-year decrease of 32.9%. The decrease was primarily due to the decrease in sales and marketing personnel related expenses.

General and administrative expenses were RMB22.3 million (US$3.3 million) in the first quarter of 2023,representing a year-over-year decrease of 19.3%. The decrease was primarily due to the decrease in general and administrative personnel related expenses.

Loss from operationswas RMB17.0 million (US$2.5 million) in the first quarter of 2023,compared to a loss from operations of RMB52.8 million in the first quarter of 2022. Non-GAAP[2]loss from operations,which excluded share-based compensation expenses and amortization of acquired intangible assets,was RMB15.4 million (US$2.2 million) in the first quarter of 2023.

[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 RMB7.5 million (US$1.1 million) in the first quarter of 2023,compared to a net loss of RMB41.7 million in the first quarter of 2022. Non-GAAP net loss,was RMB5.9 million (US$0.9 million) in the first quarter of 2023.

Net loss attributable to ordinary shareholderswas RMB7.0 million (US$1.0 million) in the first quarter of 2023,compared to a net loss attributable to ordinary shareholders of RMB40.4 million in the first quarter of 2022. Non-GAAP net loss attributable to ordinary shareholders,was RMB5.4 million (US$0.8 million) in the first quarter of 2023.

As of March 31,2023,the Company had cash and cash equivalents,restricted cash and short-term investments of RMB960.2 million (US$139.8 million).

Business Outlook

For the second quarter of 2023,Tuniu expects to generate RMB88.7 million to RMB92.4 million of net revenues,which represents a 140% to 150% 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 June 9,(8:00 pm,Beijing/Hong Kong Time,2023) to discuss the first 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 1Q 2023 Earnings Conference Call

A telephone replay will be available one hour after the end of the conference call through June 16,2023. The dial-in details are as follows:

US

1-877-344-7529

International

1-412-317-0088

Replay Access Code: 8229010

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 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; 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 loss from operations,net loss,net loss attributable to ordinary shareholders,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.

(Financial Tables Follow)

Tuniu Corporation

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands,except per share information)

December 31,2022

March 31,2023

March 31,2023

RMB

RMB

US$

ASSETS

Current assets

Cash and cash equivalents

153,835

210,010

30,580

Restricted cash

44,052

28,617

4,167

Short-term investments

724,413

721,555

105,067

Accounts receivable,net

33,644

66,568

9,693

Amounts due from related parties

1,030

2,434

354

Prepayments and other current assets

242,994

235,740

34,326

Total current assets

1,199,968

1,264,924

184,187

Non-current assets

Long-term investments

230,562

230,045

33,497

Property and equipment,net

85,182

82,247

11,976

Intangible assets,net

30,672

29,605

4,311

Land use right,net

92,590

92,075

13,407

Operating lease right-of-use assets,204

39,385

5,735

Goodwill

114,661

114,661

16,696

Other non-current assets

91,091

87,692

12,769

Total non-current assets

677,962

675,710

98,391

Total assets

1,877,930

1,940,634

282,578

LIABILITIES,REDEEMABLE NONCONTROLLING INTERESTS AND

EQUITY

Current liabilities

Short-term borrowings

7,517

8,747

1,274

Accounts and notes payable

261,873

299,524

43,614

Amounts due to related parties

4,710

4,250

619

Salary and welfare payable

26,507

25,308

3,685

Taxes payable

4,047

2,739

399

Advances from customers

98,899

133,744

19,475

Operating lease liabilities,current

12,439

4,336

631

Accrued expenses and other current liabilities

358,312

359,342

52,323

Total current liabilities

774,304

837,990

122,020

Non-current liabilities

Operating lease liabilities,non-current

26,482

38,760

5,644

Deferred tax liabilities

6,839

6,636

966

Long-term borrowings

11,959

10,230

1,490

Total non-current liabilities

45,280

55,626

8,100

Total liabilities

819,584

893,616

130,120

Redeemable noncontrolling interests

27,200

27,200

3,961

Equity

Ordinary shares

249

249

36

Less: Treasury stock

(288,600)

(288,182)

(41,963)

Additional paid-in capital

9,125,655

9,770

1,328,815

Accumulated other comprehensive income

298,981

294,941

42,947

Accumulated deficit

(8,028,261)

(8,035,278)

(1,170,027)

Total Tuniu Corporation shareholders' equity

1,108,024

1,097,500

159,808

Noncontrolling interests

(76,878)

(77,682)

(11,311)

Total equity

1,031,146

1,019,818

148,497

Total liabilities,redeemable noncontrolling interests and equity

1,578

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(All amounts in thousands,except per share information)

QuarterEnded

QuarterEnded

QuarterEnded

QuarterEnded

March 31,2022

December 31,2023

RMB

RMB

RMB

US$

Revenues

Packaged tours

14,375

4,968

40,130

5,843

Others

27,104

22,358

23,051

3,356

Net revenues

41,479

27,326

63,181

9,199

Cost of revenues

(25,666)

(15,125)

(24,301)

(3,538)

Gross profit

15,813

12,201

38,880

5,661

Operating expenses

Research and product development

(16,185)

(10,922)

(14,328)

(2,086)

Sales and marketing

(29,783)

(22,858)

(19,987)

(2,910)

General and administrative

(27,658)

(33,119)

(22,319)

(3,250)

Other operating income

5,000

34,404

762

111

Total operating expenses

(68,626)

(32,495)

(55,872)

(8,135)

Loss from operations

(52,813)

(20,294)

(16,992)

(2,474)

Other (expenses)/income

Interest and investment (loss)/income

11,524

4,960

6,321

920

Interest expense

(1,950)

(1,186)

(1,149)

(167)

Foreign exchange gains/(losses),net

129

5,252

3,514

512

Other (loss)/income,net

659

2,378

1,101

160

Loss before income tax expense

(42,451)

(8,890)

(7,205)

(1,049)

Income tax benefit/(expense)

553

(219)

203

30

Equity in income/(loss) of affiliates

242

(189)

(469)

(68)

Net loss

(41,656)

(9,298)

(7,471)

(1,087)

Net loss attributable to noncontrolling interests

(1,223)

(4,916)

(454)

(66)

Net income attributable to redeemable noncontrolling interests

-

-

-

-

Net loss attributable to Tuniu Corporation

(40,433)

(4,382)

(7,017)

(1,021)

Net loss attributable to ordinary shareholders

(40,021)

Net loss

(41,087)

Other comprehensive loss:

Foreign currency translation adjustment,net of nil tax

(130)

(8,053)

(4,040)

(588)

Comprehensive loss

(41,786)

(17,351)

(11,511)

(1,675)

Net loss per ordinary share attributable to ordinary shareholders -

basic and diluted

(0.11)

(0.01)

(0.02)

0.00

Net loss per ADS - basic and diluted*

(0.33)

(0.03)

(0.06)

0.00

Weighted average number of ordinary shares used in computing

basic and diluted loss per share

371,079,992

371,365,207

371,394,686

371,686

Share-based compensation expenses included are as follows:

Cost of revenues

77

19

18

3

Research and product development

243

19

18

3

Sales and marketing

121

57

(16)

(2)

General and administrative

534

803

758

110

Total

975

898

778

114

*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 31,2023

GAAP Result

Share-based

Amortization of acquired

Net gain on

Non-GAAP

Compensation

intangible assets

disposals of subsidiaries

Result

Loss from operations

(16,992)

778

828

-

(15,386)

Net loss

(7,471)

778

828

-

(5,865)

Net loss attributable to ordinary shareholders

(7,017)

778

828

-

(5,411)

Quarter Ended December 31,2022

GAAP Result

Share-based

Amortization of acquired

Net gain on

Non-GAAP

Compensation

intangible assets

disposals of subsidiaries

Result

Loss from operations

(20,294)

898

1,434

(32,165)

(50,127)

Net loss

(9,298)

898

1,165)

(39,131)

Net loss attributable to ordinary shareholders

(4,382)

898

1,165)

(34,215)

Quarter Ended March 31,2022

GAAP Result

Share-based

Amortization of acquired

Net gain on

Non-GAAP

Compensation

intangible assets

disposals of subsidiaries

Result

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)