Tuniu Announces Unaudited Third Quarter 2022 Financial Results


    NANJING, China, Dec. 1, 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 third quarter ended September 30, 2022.

    "In the third quarter, China's travel industry gradually recovered as compared to the previous two quarters," said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "Tuniu seized the opportunity to expand our business by focusing on the vacation market and leveraging our integrated model and high-quality products and services. Despite the current uncertainties, we will continue to introduce innovative, high-quality products and services to meet customers' demand and serve more customers with professionalism and dedication. In addition, the company will continue to roll out cost control measures to improve operational efficiency and strengthen our resilience and capabilities amidst the dynamic external environment."

    Third Quarter 2022 Results

    Net revenues were RMB77.9 million (US$10.9 million[1]) in the third quarter of 2022, representing a year-over-year decrease of 32.1% from the corresponding period in 2021. The decrease was primarily due to the negative impact brought by the resurgence and spread of COVID-19.

    • Revenues from packaged tours were RMB41.4 million (US$5.8 million) in the third quarter of 2022, representing a year-over-year decrease of 54.3% 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 RMB36.4 million (US$5.1 million) in the third quarter of 2022, representing a year-over-year increase of 52.3% from the corresponding period in 2021. The increase was primarily due to the increase in the commission fees received from other travel-related products.

    Cost of revenues was RMB32.8 million (US$4.6 million) in the third quarter of 2022, representing a year-over-year decrease of 56.2% from the corresponding period in 2021. As a percentage of net revenues, cost of revenues was 42.2% in the third quarter of 2022, compared to 65.3% in the corresponding period in 2021.

    Gross margin was 57.8% in the third quarter of 2022, compared to a gross margin of 34.7% in the third quarter of 2021.

    Operating expenses were RMB59.3 million (US$8.3 million) in the third quarter of 2022, representing a year-over-year decrease of 38.5% from the corresponding period in 2021. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB1.9 million (US$0.3 million) in the third quarter of 2022. Non-GAAP[2] operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB57.4 million (US$8.1 million) in the third quarter of 2022, representing a year-over-year decrease of 36.9%.

    • Research and product development expenses were RMB9.7 million (US$1.4 million) in the third quarter of 2022, representing a year-over-year decrease of 37.6%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB0.5 million (US$0.1 million), were RMB9.2 million (US$1.3 million) in the third quarter of 2022, representing a year-over-year decrease of 37.1% from the corresponding period in 2021. The decrease was primarily due to the decrease in research and product development personnel related expenses.
    • Sales and marketing expenses were RMB26.5 million (US$3.7 million) in the third quarter of 2022, representing a year-over-year decrease of 36.4%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB0.5 million (US$0.1 million), were RMB26.0 million (US$3.7 million) in the third quarter of 2022, representing a year-over-year decrease of 35.3% from the corresponding period in 2021. The decrease was primarily due to the decrease in promotion expenses.
    • General and administrative expenses were RMB24.3 million (US$3.4 million) in the third quarter of 2022, representing a year-over-year decrease of 41.1%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB0.9 million (US$0.1 million), were RMB23.4 million (US$3.3 million) in the third quarter of 2022, representing a year-over-year decrease of 38.7% from the corresponding period in 2021. The decrease was primarily due to the decrease in general and administrative personnel related expenses.

    Loss from operations was RMB14.3 million (US$2.0 million) in the third quarter of 2022, compared to a loss from operations of RMB56.6 million in the third quarter of 2021. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB12.3 million (US$1.7 million) in the third quarter of 2022.

    Net loss was RMB23.5 million (US$3.3 million) in the third quarter of 2022, compared to a net loss of RMB36.6 million in the third quarter of 2021. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB21.6 million (US$3.0 million) in the third quarter of 2022.

    Net loss attributable to ordinary shareholders was RMB22.0 million (US$3.1 million) in the third quarter of 2022, compared to a net loss attributable to ordinary shareholders of RMB35.1 million in the third quarter of 2021. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB20.1 million (US$2.8 million) in the third quarter of 2022.

    As of September 30, 2022, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB949.6 million (US$133.5 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.

    [1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.1135 on September 30, 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.

    [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.

    Appointment of New Director

    Tuniu also announced that Mr. Jie Chen has been appointed as an independent director to the Company's board of directors (the "Board") effective on December 1, 2022, replacing Mr. Jiangtao Liu who has resigned from the Board effective on the same date. Mr. Jie Chen has also been appointed as a member of the compensation committee of the Board, effective on December 1, 2022, replacing Mr. Jiangtao Liu. After the change, the Board is comprised of nine members, with the majority of the members of the Board being independent directors.

    Mr. Chen currently serves as chairman of Caissa Tourism (000796. SZ), an A-share company listed on the Shenzhen Stock Exchange. Mr. Chen joined Caissa Tourism Group in 2002 and previously served as the vice president of Caissa Tosun Development Co. Ltd. and general manager of domestic operation business group, vacation business group and product research and development center for group tours. Mr. Chen graduated from Beijing Science Technology and Management College in 2002.

    Business Outlook

    For the fourth quarter of 2022, the Company expects to generate RMB23.5 million to RMB30.8 million of net revenues, which represents a 58% to 68% 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 December 1, 2022, (9:00 pm, Beijing/Hong Kong Time, on December 1, 2022) to discuss the third 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 3Q 2022 Earnings Call

    A telephone replay will be available one hour after the end of the conference call through December 8, 2022. The dial-in details are as follows:

    U.S.:         

    +1-877-344-7529

    International:   

    +1-412-317-0088

    Replay Access Code:

    1106089

    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 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 cost of revenues, research and product development expenses, sales and marketing expenses, general and administrative expenses, impairment of goodwill, 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, gain on disposals of subsidiaries and impairment of goodwill. 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, gain on disposals of subsidiaries and impairment of goodwill is that share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill 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 


     September 30, 2022 


     September 30, 2022 


     RMB 


     RMB 


     US$ 







    ASSETS






    Current assets






    Cash and cash equivalents

    349,077


    212,739


    29,906

    Restricted cash 

    46,521


    27,649


    3,887

    Short-term investments

    615,901


    709,206


    99,699

    Accounts receivable, net

    111,941


    127,955


    17,988

    Amounts due from related parties

    14,969


    22,735


    3,196

    Prepayments and other current assets  

    337,033


    362,963


    51,025

    Total current assets

    1,475,442


    1,463,247


    205,701







    Non-current assets






    Long-term investments

    201,947


    225,967


    31,766

    Property and equipment, net

    98,159


    91,549


    12,870

    Intangible assets, net

    55,376


    42,538


    5,980

    Land use right, net

    94,652


    93,105


    13,088

    Operating lease right-of-use assets, net

    48,115


    34,015


    4,782

    Goodwill

    232,007


    117,470


    16,514

    Other non-current assets

    92,111


    92,998


    13,073

    Total non-current assets

    822,367


    697,642


    98,073

    Total assets

    2,297,809


    2,160,889


    303,774







    LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
    EQUITY






    Current liabilities






    Short-term borrowings

    9,981


    8,650


    1,216

    Accounts and notes payable 

    383,626


    428,254


    60,203

    Amounts due to related parties

    4,679


    3,857


    542

    Salary and welfare payable

    33,761


    29,042


    4,083

    Taxes payable

    8,004


    4,017


    565

    Advances from customers

    139,777


    129,290


    18,175

    Operating lease liabilities, current

    16,556


    13,348


    1,876

    Accrued expenses and other current liabilities

    382,629


    408,964


    57,491

    Total current liabilities

    979,013


    1,025,422


    144,151







    Non-current liabilities






    Operating lease liabilities, non-current

    38,832


    27,799


    3,908

    Deferred tax liabilities

    12,479


    9,666


    1,359

    Long-term borrowings

    14,344


    9,999


    1,406

    Total non-current liabilities

    65,655


    47,464


    6,673

    Total liabilities

    1,044,668


    1,072,886


    150,824







    Redeemable noncontrolling interests

    27,200


    27,200


    3,824







    Equity






    Ordinary shares

    249


    249


    35

    Less: Treasury stock

    (293,795)


    (289,044)


    (40,633)

    Additional paid-in capital

    9,125,748


    9,125,195


    1,282,800

    Accumulated other comprehensive income

    271,821


    307,034


    43,162

    Accumulated deficit

    (7,834,879)


    (8,023,879)


    (1,127,979)

    Total Tuniu Corporation shareholders' equity

    1,269,144


    1,119,555


    157,385

    Noncontrolling interests

    (43,203)


    (58,752)


    (8,259)

    Total equity

    1,225,941


    1,060,803


    149,126

    Total liabilities, redeemable noncontrolling interests and equity

    2,297,809


    2,160,889


    303,774

     

     

     

    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 


     September 30, 2021 


     June 30, 2022 


     September 30, 2022 


     September 30, 2022 


     RMB 


     RMB 


     RMB 


     US$ 









    Revenues








    Packaged tours

    90,709


    9,531


    41,440


    5,826

    Others

    23,915


    27,426


    36,418


    5,120

    Net revenues

    114,624


    36,957


    77,858


    10,946

    Cost of revenues

    (74,884)


    (20,440)


    (32,835)


    (4,616)

    Gross profit

    39,740


    16,517


    45,023


    6,330









    Operating expenses








    Research and product development

    (15,580)


    (13,963)


    (9,729)


    (1,368)

    Sales and marketing

    (41,668)


    (24,474)


    (26,502)


    (3,726)

    General and administrative

    (41,224)


    (23,888)


    (24,270)


    (3,412)

    Impairment of goodwill

    -


    (112,102)


    -


    -

    Other operating income

    2,106


    35,059


    1,222


    172

    Total operating expenses

    (96,366)


    (139,368)


    (59,279)


    (8,334)

    Loss from operations

    (56,626)


    (122,851)


    (14,256)


    (2,004)

    Other (expenses)/income








    Interest and investment income

    19,492


    5,206


    5,491


    772

    Interest expense

    (1,097)


    (582)


    (1,194)


    (168)

    Foreign exchange gains/(losses), net

    (463)


    (11,424)


    (16,167)


    (2,273)

    Other income, net

    686


    302


    2,797


    393

    Loss before income tax expense

    (38,008)


    (129,349)


    (23,329)


    (3,280)

    Income tax benefit

    568


    21


    376


    53

    Equity in (loss)/income of affiliates

    861


    790


    (551)


    (77)

    Net loss

    (36,579)


    (128,538)


    (23,504)


    (3,304)

    Net loss attributable to noncontrolling interests

    (1,497)


    (2,019)


    (1,456)


    (205)

    Net loss attributable to Tuniu Corporation

    (35,082)


    (126,519)


    (22,048)


    (3,099)

    Net loss attributable to ordinary shareholders

    (35,082)


    (126,519)


    (22,048)


    (3,099)









    Net loss

    (36,579)


    (128,538)


    (23,504)


    (3,304)

    Other comprehensive (loss)/income:








    Foreign currency translation adjustment, net of nil tax

    1,685


    17,277


    18,066


    2,540

    Comprehensive loss

    (34,894)


    (111,261)


    (5,438)


    (764)









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

    (0.09)


    (0.34)


    (0.06)


    (0.01)

    Net loss per ADS - basic and diluted*

    (0.27)


    (1.02)


    (0.18)


    (0.03)









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

    370,956,994


    371,112,997


    371,274,640


    371,274,640









    Share-based compensation expenses included are as follows








    Cost of revenues

    214


    291


    24


    3

    Research and product development

    359


    299


    10


    1

    Sales and marketing

    332


    448


    31


    4

    General and administrative

    2,475


    1,639


    432


    61

    Total

    3,380


    2,677


    497


    69









    *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 September 30, 2022


     GAAP Result 


     Share-based 


    Amortization of acquired 


    Gain on disposals


    Impairment


     Non-GAAP 



     Compensation 


      intangible assets 


     of subsidiaries 


     of goodwill 


     Result 













    Cost of revenues

    (32,835)


    24


    -


    -


    -


    (32,811)













    Research and product development

    (9,729)


    10


    534


    -


    -


    (9,185)

    Sales and marketing

    (26,502)


    31


    423


    -


    -


    (26,048)

    General and administrative

    (24,270)


    432


    477


    -


    -


    (23,361)

    Other operating income

    1,222


    -


    -


    -


    -


    1,222

    Total operating expenses

    (59,279)


    473


    1,434


    -


    -


    (57,372)













    Loss from operations

    (14,256)


    497


    1,434


    -


    -


    (12,325)













    Net loss

    (23,504)


    497


    1,434


    -


    -


    (21,573)













    Net loss attributable to ordinary shareholders

    (22,048)


    497


    1,434


    -


    -


    (20,117)













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

    (0.06)










    (0.05)

    Net loss per ADS - basic and diluted

    (0.18)










    (0.15)













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

    371,274,640










    371,274,640














     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 













    Cost of revenues

    (20,440)


    291


    -


    -


    -


    (20,149)













    Research and product development

    (13,963)


    299


    534


    -


    -


    (13,130)

    Sales and marketing

    (24,474)


    448


    770


    -


    -


    (23,256)

    General and administrative

    (23,888)


    1,639


    635


    -


    -


    (21,614)

    Impairment of goodwill

    (112,102)


    -


    -


    -


    112,102


    -

    Other operating income

    35,059


    -


    -


    (32,786)


    -


    2,273

    Total operating expenses

    (139,368)


    2,386


    1,939


    (32,786)


    112,102


    (55,727)













    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

    (126,519)


    2,677


    1,939


    (32,786)


    112,102


    (42,587)













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

    (0.34)










    (0.11)

    Net loss per ADS - basic and diluted

    (1.02)










    (0.33)













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

    371,112,997










    371,112,997














     Quarter Ended September 30, 2021


     GAAP Result 


     Share-based 


    Amortization of acquired 


    Gain on disposals


    Impairment


     Non-GAAP 



     Compensation 


      intangible assets 


     of subsidiaries 


     of goodwill 


     Result 













    Cost of revenues

    (74,884)


    214


    -


    -


    -


    (74,670)













    Research and product development

    (15,580)


    359


    616


    -


    -


    (14,605)

    Sales and marketing

    (41,668)


    332


    1,065


    -


    -


    (40,271)

    General and administrative

    (41,224)


    2,475


    652


    -


    -


    (38,097)

    Other operating income

    2,106


    -


    -


    -


    -


    2,106

    Total operating expenses

    (96,366)


    3,166


    2,333


    -


    -


    (90,867)













    Loss from operations

    (56,626)


    3,380


    2,333


    -


    -


    (50,913)













    Net loss

    (36,579)


    3,380


    2,333


    -


    -


    (30,866)













    Net loss attributable to ordinary shareholders

    (35,082)


    3,380


    2,333


    -


    -


    (29,369)













    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

    370,956,994










    370,956,994

























    *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.

     

     

    Caishen.Co - Primary Data for China Secondary Investment and Stock Markets
    PR Newswire is the premier global provider of news release distribution and multimedia platforms that enable marketers, corporate communicators, sustainability officers, public affairs and investor relations officers to leverage content to engage with all their key audiences. Having pioneered the commercial news distribution industry since 1954, PR Newswire today provides end-to-end solutions to produce, optimize and target content – from rich media to online video to multimedia – and then distribute content and measure results across traditional, digital, mobile and social channels. Combining the world's largest multi-channel distribution and optimization network with comprehensive workflow tools and platforms, PR Newswire powers the stories of organizations around the world. PR Newswire serves tens of thousands of clients from offices in the Americas, Europe, Middle East, Africa and the Asia-Pacific region, and is a Cision company.

    RELATED NEWS