Tuniu Announces Unaudited First Quarter 2022 Financial Results


     NANJING, China, June 9, 2022 /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 first quarter ended March 31, 2022.

    "Despite recent challenges in the external environment, we have continued to fully leverage Tuniu's core competencies and strengths in product innovation and service quality to provide customers with safe and secure travel experiences. We will continue to focus on our mission to make travel easier while remaining dedicated to corporate social responsibility, and working with our customers and partners to overcome challenges, take on new opportunities and further promote the recovery and development of China's travel industry." said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "Reflecting the progress we've made in optimizing our operations, Tuniu's operating expenses have decreased year-on-year for five consecutive quarters. We will continue to implement strict expense control measures to further lower costs and improve efficiency."

    First Quarter 2022 Results

    Net revenues were RMB41.5 million (US$6.5 million[1]) in the first quarter of 2022, representing a year-over-year decrease of 46.4% from the corresponding period in 2021. The decrease was primarily due to the negative impact brought by the outbreak and spread of COVID-19.

    • Revenues from packaged tours were RMB14.4 million (US$2.3 million) in the first quarter of 2022, representing a year-over-year decrease of 68.3% from the corresponding period in 2021. The decrease was primarily due to the resurgence of COVID-19 in certain regions in China.
    • Other revenues were RMB27.1 million (US$4.3 million) in the first quarter of 2022, representing a year-over-year decrease of 15.3% from the corresponding period in 2021. The decrease was primarily due to the decrease in the fees for advertising services provided to tourism boards and bureaus.

    Cost of revenues was RMB25.7 million (US$4.0 million) in the first quarter of 2022, representing a year-over-year decrease of 47.3% from the corresponding period in 2021. As a percentage of net revenues, cost of revenues was 61.9% in the first quarter of 2022, compared to 63.0% in the corresponding period in 2021.

    Gross profit was RMB15.8 million (US$2.5 million) in the first quarter of 2022, representing a year-over-year decrease of 44.8% from the corresponding period in 2021.

    [1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 6.3393 on March 31, 2022 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.

    Operating expenses were RMB68.6 million (US$10.8 million) in the first quarter of 2022, representing a year-over-year decrease of 17.8% from the corresponding period in 2021. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB3.1 million (US$0.5 million) in the first quarter of 2022. Non-GAAP[2] operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB65.5 million (US$10.3 million) in the first quarter of 2022, representing a year-over-year decrease of 17.6%.

    • Research and product development expenses were RMB16.2 million (US$2.6 million) in the first quarter of 2022, representing a year-over-year increase of 37.3%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB0.8 million (US$0.1 million), were RMB15.4 million (US$2.4 million) in the first quarter of 2022, representing a year-over-year increase of 41.9% from the corresponding period in 2021. The increase was primarily due to the increase in research and product development personnel related expenses.
    • Sales and marketing expenses were RMB29.8 million (US$4.7 million) in the first quarter of 2022, representing a year-over-year decrease of 15.9%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.2 million (US$0.2 million), were RMB28.6 million (US$4.5 million) in the first quarter of 2022, representing a year-over-year decrease of 16.5% from the corresponding period in 2021. The decrease was primarily due to the decrease in promotion expenses.
    • General and administrative expenses were RMB27.7 million (US$4.4 million) in the first quarter of 2022, representing a year-over-year decrease of 38.2%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.2 million (US$0.2 million), were RMB26.5 million (US$4.2 million) in the first quarter of 2022, representing a year-over-year decrease of 38.2% from the corresponding period in 2021. The decrease was primarily due to the decrease in general and administrative personnel related expenses and allowance for doubtful accounts.

    [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.

    Loss from operations was RMB52.8 million (US$8.3 million) in the first quarter of 2022, compared to a loss from operations of RMB54.9 million in the first quarter of 2021. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB49.6 million (US$7.8 million) in the first quarter of 2022.

    Net loss was RMB41.7 million (US$6.6 million) in the first quarter of 2022, compared to a net loss of RMB41.6 million in the first quarter of 2021. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB38.4 million (US$6.1 million) in the first quarter of 2022.

    Net loss attributable to ordinary shareholders was RMB40.4 million (US$6.4 million) in the first quarter of 2022, compared to a net loss attributable to ordinary shareholders of RMB39.5 million in the first quarter of 2021. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB37.2 million (US$5.9 million) in the first quarter of 2022.

    As of March 31, 2022, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB929.5 million (US$146.6 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 2022, the Company expects to generate RMB32.2 million to RMB40.2 million of net revenues, which represents a 75% to 80% 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 a.m. U.S. Eastern Time, on June 9, 2022, (8:00 p.m., Beijing/Hong Kong Time, on June 9, 2022) to discuss the first quarter 2022 financial results.

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

    U.S.:           +1-888-346-8982

    Hong Kong:    +852-301-84992

    Mainland China: 4001-201203

    International:   +1-412-902-4272

    Conference ID: Tuniu 1Q 2022 Earnings Call

    A telephone replay will be available one hour after the end of the conference call through June 16, 2022. The dial-in details are as follows:

    U.S.:           +1-877-344-7529

    International:   +1-412-317-0088

    Replay Access Code: 2866159

    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 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 covers over 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 and amortization 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 and amortization of acquired intangible assets is that share-based compensation expenses and amortization 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, 2021 


     March 31, 2022 


     March 31, 2022 


     RMB 


     RMB 


     US$ 







    ASSETS






    Current assets






    Cash and cash equivalents

    349,077


    320,589


    50,572

    Restricted cash 

    46,521


    30,318


    4,783

    Short-term investments

    615,901


    578,561


    91,266

    Accounts receivable, net

    111,941


    99,338


    15,670

    Amounts due from related parties

    14,969


    14,515


    2,290

    Prepayments and other current assets  

    337,033


    361,319


    56,997

    Total current assets

    1,475,442


    1,404,640


    221,578







    Non-current assets






    Long-term investments

    201,947


    207,664


    32,758

    Property and equipment, net

    98,159


    94,770


    14,950

    Intangible assets, net

    55,376


    52,583


    8,295

    Land use right, net

    94,652


    94,136


    14,850

    Operating lease right-of-use assets, net

    48,115


    37,898


    5,978

    Goodwill

    232,007


    232,007


    36,598

    Other non-current assets

    92,111


    89,607


    14,135

    Total non-current assets

    822,367


    808,665


    127,564

    Total assets

    2,297,809


    2,213,305


    349,142







    LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
    EQUITY






    Current liabilities






    Short-term borrowings

    9,981


    9,558


    1,508

    Accounts and notes payable 

    383,626


    371,078


    58,536

    Amounts due to related parties

    4,679


    3,250


    513

    Salary and welfare payable

    33,761


    37,195


    5,867

    Taxes payable

    8,004


    4,461


    704

    Advances from customers

    139,777


    109,574


    17,285

    Operating lease liabilities, current

    16,556


    15,433


    2,434

    Accrued expenses and other current liabilities

    382,629


    393,919


    62,142

    Total current liabilities

    979,013


    944,468


    148,989







    Non-current liabilities






    Operating lease liabilities, non-current

    38,832


    31,842


    5,023

    Deferred tax liabilities

    12,479


    11,926


    1,881

    Long-term borrowings

    14,344


    12,738


    2,009

    Total non-current liabilities

    65,655


    56,506


    8,913

    Total liabilities

    1,044,668


    1,000,974


    157,902







    Redeemable noncontrolling interests

    27,200


    27,200


    4,291







    Equity






    Ordinary shares

    249


    249


    39

    Less: Treasury stock

    (293,795)


    (293,433)


    (46,288)

    Additional paid-in capital

    9,125,748


    9,126,362


    1,439,648

    Accumulated other comprehensive income

    271,821


    271,691


    42,858

    Accumulated deficit

    (7,834,879)


    (7,875,312)


    (1,242,300)

    Total Tuniu Corporation shareholders' equity

    1,269,144


    1,229,557


    193,957

    Noncontrolling interests

    (43,203)


    (44,426)


    (7,008)

    Total equity

    1,225,941


    1,185,131


    186,949

    Total liabilities, redeemable noncontrolling interests and equity

    2,297,809


    2,213,305


    349,142

     

     

     

    Tuniu Corporation

    Unaudited Condensed Consolidated Statements of Comprehensive Loss

    (All amounts in thousands, except per share information)


     Quarter Ended 


     Quarter Ended 


     Quarter Ended 


     Quarter Ended 


     March 31, 2021 


     December 31, 2021 


     March 31, 2022 


     March 31, 2022 


     RMB 


     RMB 


     RMB 


     US$ 









    Revenues








    Packaged tours

    45,361


    42,761


    14,375


    2,268

    Others

    31,999


    30,642


    27,104


    4,276

    Net revenues

    77,360


    73,403


    41,479


    6,544

    Cost of revenues

    (48,706)


    (39,250)


    (25,666)


    (4,049)

    Gross profit

    28,654


    34,153


    15,813


    2,495









    Operating expenses








    Research and product development

    (11,791)


    (13,494)


    (16,185)


    (2,553)

    Sales and marketing

    (35,418)


    (28,612)


    (29,783)


    (4,698)

    General and administrative

    (44,744)


    (46,512)


    (27,658)


    (4,363)

    Other operating income

    8,437


    10,571


    5,000


    789

    Total operating expenses

    (83,516)


    (78,047)


    (68,626)


    (10,825)

    Loss from operations

    (54,862)


    (43,894)


    (52,813)


    (8,330)

    Other (expenses)/income








    Interest and investment income

    15,283


    6,171


    11,524


    1,818

    Interest expense

    (2,636)


    (1,814)


    (1,950)


    (308)

    Foreign exchange gains/(losses), net

    (1,249)


    4,453


    129


    20

    Other income, net

    1,086


    459


    659


    104

    Loss before income tax expense

    (42,378)


    (34,625)


    (42,451)


    (6,696)

    Income tax benefit/(expense)

    618


    (1,450)


    553


    87

    Equity in income/(loss) of affiliates

    129


    (169)


    242


    38

    Net loss

    (41,631)


    (36,244)


    (41,656)


    (6,571)

    Net loss attributable to noncontrolling interests

    (2,150)


    (2,348)


    (1,223)


    (193)

    Net loss attributable to Tuniu Corporation

    (39,481)


    (33,896)


    (40,433)


    (6,378)

    Net loss attributable to ordinary shareholders

    (39,481)


    (33,896)


    (40,433)


    (6,378)









    Net loss

    (41,631)


    (36,244)


    (41,656)


    (6,571)

    Other comprehensive loss:








    Foreign currency translation adjustment, net of nil tax

    3,647


    (4,134)


    (130)


    (21)

    Comprehensive loss

    (37,984)


    (40,378)


    (41,786)


    (6,592)









    Net loss per ordinary share attributable to ordinary shareholders -
    basic and diluted

    (0.11)


    (0.09)


    (0.11)


    (0.02)

    Net loss per ADS - basic and diluted*

    (0.33)


    (0.27)


    (0.33)


    (0.06)









    Weighted average number of ordinary shares used in computing
    basic and diluted loss per share

    370,590,545


    371,020,652


    371,079,992


    371,079,992









    Share-based compensation expenses included are as follows








    Cost of revenues

    54


    78


    77


    12

    Research and product development

    153


    136


    243


    38

    Sales and marketing

    122


    129


    121


    19

    General and administrative

    1,201


    770


    534


    84

    Total

    1,530


    1,113


    975


    153









    *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, 2022


     GAAP Result 


     Share-based 


    Amortization of acquired 


     Non-GAAP 



     Compensation 


      intangible assets 


     Result 









    Cost of revenues

    (25,666)


    77


    -


    (25,589)









    Research and product development

    (16,185)


    243


    534


    (15,408)

    Sales and marketing

    (29,783)


    121


    1,065


    (28,597)

    General and administrative

    (27,658)


    534


    637


    (26,487)

    Other operating income

    5,000


    -


    -


    5,000

    Total operating expenses

    (68,626)


    898


    2,236


    (65,492)









    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)









    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

    371,079,992






    371,079,992










     Quarter Ended December 31, 2021


     GAAP Result 


     Share-based 


    Amortization of acquired 


     Non-GAAP 



     Compensation 


      intangible assets 


     Result 









    Cost of revenues

    (39,250)


    78


    -


    (39,172)









    Research and product development

    (13,494)


    136


    534


    (12,824)

    Sales and marketing

    (28,612)


    129


    1,065


    (27,418)

    General and administrative

    (46,512)


    770


    637


    (45,105)

    Other operating income

    10,571


    -


    -


    10,571

    Total operating expenses

    (78,047)


    1,035


    2,236


    (74,776)









    Loss from operations

    (43,894)


    1,113


    2,236


    (40,545)









    Net loss

    (36,244)


    1,113


    2,236


    (32,895)









    Net loss attributable to ordinary shareholders

    (33,896)


    1,113


    2,236


    (30,547)









    Net loss per ordinary share attributable to ordinary
    shareholders - basic and diluted

    (0.09)






    (0.08)

    Net loss per ADS - basic and diluted

    (0.27)






    (0.24)









    Weighted average number of ordinary shares used in
    computing basic and diluted loss per share

    371,020,652






    371,020,652










     Quarter Ended March 31, 2021


     GAAP Result 


     Share-based 


    Amortization of acquired 


     Non-GAAP 



     Compensation 


      intangible assets 


     Result 









    Cost of revenues

    (48,706)


    54


    -


    (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


    -


    -


    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)


    1,530


    2,528


    (37,573)









    Net loss attributable to ordinary shareholders

    (39,481)


    1,530


    2,528


    (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

    370,590,545






    370,590,545

















    *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.

     

     

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