Tuniu Announces Unaudited First Quarter 2021 Financial Results

Author: Tuniu Corporation / 2023-07-22 17:45 / Source: Tuniu Corporation

Tuniu Announces Unaudited First Quarter 2021 Financial Results

NANJING,China,June 3,2021 --Tuniu Corporation (NASDAQ: TOUR) ("Tuniu" or the "Company"),a leading online leisure travel company in China,today announced its unaudited financial results for the first quarter ended March 31,2021.

"We are excited to see that China's domestic travel market has been recovering at a rapid pace. As a leading high-quality tourism company in China,Tuniu is benefiting from the strong market momentum as travelers increasingly trust us to provide integrated services including product development,destination services and reservations. Looking ahead,we will continue to create more innovative products and services to fulfill our mission of making travel easier." said Mr. Donald Dunde Yu,Tuniu's founder,Chairman and Chief Executive Officer. "In the first quarter,we further improved our operating efficiency as operating expenses continued to decline. As market conditions continue to improve,Tuniu will be on the right track to create long-term value for customers and shareholders."

First Quarter 2021 Results

Net revenues were RMB77.4 million (US$11.8 million[1]) in the first quarter of 2021,representing a year-over-year decrease of 55.5% from the corresponding period in 2020. The decrease was primarily due to the negative impact brought by the outbreak and spread of COVID-19.

Revenues from packaged tours were RMB45.4 million (US$6.9 million) in the first quarter of 2021,representing a year-over-year decrease of 62.3% from the corresponding period in 2020. The decrease was primarily due to the decline in travel to international destinations impacted by the outbreak and spread of COVID-19.

Other revenues were RMB32.0 million (US$4.9 million) in the first quarter of 2021,representing a year-over-year decrease of 40.5% from the corresponding period in 2020. The decrease was primarily due to the decline in 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 6.5518 on March 31,2021 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.

Cost of revenues was RMB48.7 million (US$7.4 million) in the first quarter of 2021,representing a year-over-year decrease of 40.2% from the corresponding period in 2020. As a percentage of net revenues,cost of revenues was 63.0% in the first quarter of 2021,compared to 46.8% in the corresponding period in 2020.

Gross profit was RMB28.7 million (US$4.4 million) in the first quarter of 2021,representing a year-over-year decrease of 69.0% from the corresponding period in 2020.

Operating expenses were RMB83.5 million (US$12.7 million) in the first quarter of 2021,representing a year-over-year decrease of 72.9% from the corresponding period in 2020. Share-based compensation expenses,amortization of acquired intangible assets and impairment of acquired intangible assets,which were allocated to operating expenses,were RMB4.0 million (US$0.6 million) in the first quarter of 2021. Non-GAAP[2]operating expenses,which excluded share-based compensation expenses,amortization of acquired intangible assets and impairment of acquired intangible assets,were RMB79.5 million (US$12.1 million) in the first quarter of 2021,representing a year-over-year decrease of 70.6%.

[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.

Research and product development expenses were RMB11.8 million (US$1.8 million) in the first quarter of 2021,representing a year-over-year decrease of 76.9%. 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 RMB10.9 million (US$1.7million) in the first quarter of 2021,representing a year-over-year decrease of 77.4% 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 RMB35.4 million (US$5.4 million) in the first quarter of 2021,representing a year-over-year decrease of 71.6%. Non-GAAP sales and marketing expenses,amortization of acquired intangible assets and impairment of acquired intangible assets of RMB1.2 million (US$0.2 million),were RMB34.2 million (US$5.2 million) in the first quarter of 2021,representing a year-over-year decrease of 63.1% 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 RMB44.7 million (US$6.8 million) in the first quarter of 2021,representing a year-over-year decrease of 66.6%. Non-GAAP general and administrative expenses,which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.9 million (US$0.3 million),were RMB42.9 million (US$6.5 million) in the first quarter of 2021,representing a year-over-year decrease of 67.3% from the corresponding period in 2020. The decrease was primarily due to the decrease in general and administrative personnel related expenses and allowance for doubtful accounts.

Loss from operationswas RMB54.9 million (US$8.4 million) in the first quarter of 2021,compared to a loss from operations of RMB215.5 million in the first quarter of 2020. Non-GAAP loss from operations,was RMB50.8 million (US$7.8 million) in the first quarter of 2021.

Net loss was RMB41.6 million (US$6.4 million) in the first quarter of 2021,compared to a net loss of RMB205.2 million in the first quarter of 2020. Non-GAAP net loss,was RMB37.6 million (US$5.7 million) in the first quarter of 2021.

Net loss attributable to ordinary shareholderswas RMB39.5 million (US$6.0 million) in the first quarter of 2021,compared to a net loss attributable to ordinary shareholders of RMB201.5 million in the first quarter of 2020. Non-GAAP net loss attributable to ordinary shareholders,was RMB35.4 million (US$5.4 million) in the first quarter of 2021.

As of March 31,2021,the Company had cash and cash equivalents,restricted cash and short-term investments of RMB1.3 billion (US$198.6 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 2021,the Company expects to generate RMB142.9 million to RMB149.7 million of net revenues,which represents 320% to 340% increase 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 June 3,(8:00 pm,Beijing/Hong Kong Time,2021) to discuss the first quarter 2021 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 2021 Earnings Call

A telephone replay will be available one hour after the end of the conference through June 10,2021. The dial-in details are as follows:

US: +1-877-344-7529

International:+1-412-317-0088

Replay Access Code: 10157015

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

March 31,2021

RMB

US$

ASSETS

Current assets

Cash and cash equivalents

213,538

494,944

75,543

Restricted cash

50,566

33,973

5,185

Short-term investments

1,353,670

772,077

117,842

Accounts receivable,net

264,134

249,423

38,069

Amounts due from related parties

23,913

26,982

4,118

Prepayments and other current assets

378,704

371,403

56,689

Total current assets

2,284,525

1,948,802

297,446

Non-current assets

Long-term investments

266,866

259,416

39,595

Property and equipment,net

111,697

111,011

16,944

Intangible assets,net

71,362

67,092

10,240

Land use right,net

96,713

96,198

14,683

Operating lease right-of-use assets,net

42,293

63,166

9,641

Goodwill

232,007

35,411

Other non-current assets

91,180

89,187

13,613

Total non-current assets

912,118

918,077

140,127

Total assets

3,196,643

2,866,879

437,573

LIABILITIES,REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

Current liabilities

Short-term borrowings

60,679

60,370

9,214

Accounts and notes payable

705,838

689,631

105,258

Amounts due to related parties

21,034

11,195

1,709

Salary and welfare payable

47,487

41,669

6,360

Taxes payable

6,004

5,160

788

Advances from customers

208,762

228,435

34,866

Operating lease liabilities,current

18,264

21,507

3,283

Accrued expenses and other current liabilities

676,501

381,107

58,168

Total current liabilities

1,744,569

1,439,074

219,646

Non-current liabilities

Operating lease liabilities,non-current

34,367

50,141

7,653

Deferred tax liabilities

14,861

14,235

2,173

Long-term borrowings

22,577

19,260

2,940

Other non-current liabilities

3,054

466

Total non-current liabilities

74,859

86,690

13,232

Total liabilities

1,819,428

1,525,764

232,878

Redeemable noncontrolling interests

27,200

4,152

Equity

Ordinary shares

249

Less: Treasury stock

(302,916)

(296,056)

(45,187)

Additional paid-in capital

9,125,689

9,120,713

1,392,093

Accumulated other comprehensive income

275,012

278,659

42,532

Accumulated deficit

(7,713,355)

(7,752,836)

(1,183,314)

Total Tuniu Corporation shareholders' equity

1,384,679

1,350,729

206,162

Noncontrolling interests

(34,664)

(36,814)

(5,619)

Total equity

1,015

1,313,915

200,543

Total liabilities,redeemable noncontrolling interests and equity

3,573

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(All amounts in thousands,except per share information)

QuarterEnded

March 31,2020

December 31,2021

RMB

US$

Revenues

Packaged tours

120,240

83,143

45,361

6,923

Others

53,741

35,566

31,999

4,884

Net revenues

173,981

118,709

77,360

11,807

Cost of revenues

(81,460)

(70,841)

(48,706)

(7,434)

Gross profit

92,521

47,868

28,654

4,373

Operating expenses

Research and product development

(51,026)

(12,833)

(11,791)

(1,800)

Sales and marketing

(124,698)

(113,162)

(35,418)

(5,406)

General and administrative

(133,860)

(844,759)

(44,744)

(6,829)

Other operating income

1,574

10,698

8,437

1,288

Total operating expenses

(308,010)

(960,056)

(83,516)

(12,747)

Loss from operations

(215,489)

(912,188)

(54,862)

(8,374)

Other income/(expenses)

Interest and investment income/(loss)

21,852

(17,998)

15,283

2,333

Interest expense

(10,499)

(5,657)

(2,636)

(402)

Foreign exchange (losses)/gains,net

(877)

11,002

(1,249)

(191)

Other (loss)/income,net

(1,718)

(914)

1,086

166

Loss before income tax expense

(206,731)

(925,755)

(42,378)

(6,468)

Income tax benefit

817

3,853

618

Equity in income of affiliates

744

124

129

Net loss

(205,170)

(921,778)

(41,631)

(6,354)

Net loss attributable to noncontrolling interests

(3,629)

(19,820)

(2,150)

(328)

Net loss attributable to redeemable noncontrolling interests

(81)

(61)

Net loss attributable to Tuniu Corporation

(201,460)

(901,897)

(39,481)

(6,026)

Accretion on redeemable noncontrolling interests

(81)

Net loss attributable to ordinary shareholders

(201,541)

(901,026)

Net loss

(205,354)

Other comprehensive income/(loss):

Foreign currency translation adjustment,net of nil tax

8,091

(14,599)

3,647

557

Comprehensive loss

(197,079)

(936,377)

(37,984)

(5,797)

Net loss per ordinary share attributable to ordinary shareholders -

basic and diluted

(0.54)

(2.43)

(0.11)

(0.02)

Net loss per ADS - basic and diluted*

(1.62)

(7.29)

(0.33)

(0.06)

Weighted average number of ordinary shares used in computing

basic and diluted loss per share

370,055,731

370,460,479

370,590,545

370,545

Share-based compensation expenses included are as follows:

Cost of revenues

207

551

Research and product development

2,136

1,094

153

Sales and marketing

205

615

122

General and administrative

2,025

8,562

1,201

183

Total

4,573

10,822

1,530

233

*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 31,2021

GAAP Result

Share-based

Amortization of acquired

Impairment 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 December 31,2020

GAAP Result

Share-based

Amortization of acquired

Impairment of acquired

Non-GAAP

Compensation

intangible assets

Result

Cost of revenues

(70,841)

551

(70,290)

Research and product development

(12,833)

1,094

782

(10,957)

Sales and marketing

(113,162)

615

1,710

22,322

(88,515)

General and administrative

(844,759)

8,562

709

(835,488)

Other operating income

10,698

Total operating expenses

(960,056)

10,271

3,201

22,322

(924,262)

Loss from operations

(912,188)

10,822

3,322

(875,843)

Net loss

(921,778)

10,322

(885,433)

Net loss attributable to ordinary shareholders

(901,897)

10,322

(865,552)

Net loss per ordinary share attributable to ordinary

shareholders - basic and diluted

(2.43)

(2.34)

Net loss per ADS - basic and diluted

(7.29)

(7.02)

Weighted average number of ordinary shares used in

computing basic and diluted loss per share

370,479

Quarter Ended March 31,2020

GAAP Result

Share-based

Amortization of acquired

Impairment of acquired

Non-GAAP

Compensation

intangible assets

Result

Cost of revenues

(81,460)

207

(81,253)

Research and product development

(51,026)

2,136

933

(47,957)

Sales and marketing

(124,698)

205

22,050

9,554

(92,889)

General and administrative

(133,860)

2,025

709

(131,126)

Other operating income

1,574

Total operating expenses

(308,010)

4,366

23,692

9,554

(270,398)

Loss from operations

(215,489)

4,573

23,554

(177,670)

Net loss

(205,170)

4,554

(167,351)

Net loss attributable to ordinary shareholders

(201,541)

4,554

(163,722)

Net loss per ordinary share attributable to ordinary

shareholders - basic and diluted

(0.54)

(0.44)

Net loss per ADS - basic and diluted

(1.62)

(1.32)

Weighted average number of ordinary shares used in

computing basic and diluted loss per share

370,731

*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.