EX-99.1 2 tv488487_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

Tuniu Announces Unaudited Fourth Quarter and Fiscal Year 2017 Financial Results

Net Revenues1 in 2017 Increased by 53.3% Year-Over-Year

Gross Profit in 2017 Increased by 80.9% Year-Over-Year

 

NANJING, China, March 14, 2018 -- Tuniu Corporation (NASDAQ:TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2017.

 

Highlights for the Fourth Quarter of 2017

 

·Net revenues in the fourth quarter of 2017 were RMB469.9 million (US$72.2 million2), an increase of 46.1% year-over-year when compared with Non-GAAP3 net revenues in the fourth quarter of 2016.
·Gross profit in the fourth quarter of 2017 was RMB235.2 million (US$36.1 million), an increase of 39.6% year-over-year when compared with Non-GAAP gross profit in the fourth quarter of 2016.

 

Highlights for the Fiscal Year 2017 and Recent Development

 

·Net revenues in 2017 were RMB2.2 billion (US$336.9 million), an increase of 53.3% year-over-year when compared with Non-GAAP net revenues in 2016.
·Gross profit in 2017 was RMB1.2 billion (US$179.5 million), an increase of 80.9% year-over-year when compared with Non-GAAP gross profit in 2016.
·Operating expenses were RMB2.1 billion (US$315.3 million) in 2017, a decrease of 34.6% year-over-year from 2016.
·Net loss was RMB771.3 million (US$118.6 million) in 2017, compared to a net loss of RMB2.4 billion in 2016.
·As of February 28, 2018, Tuniu had 14 local tour operators in total, among which 12 are located in China4 and 2 are located overseas5.

 

 

1 The section below entitled "Comparison of Revenues" provides information for the comparison between revenues, cost of revenues and gross profit for the fourth quarter and fiscal year of 2017 and the relevant Non-GAAP adjusted data for corresponding periods in 2016.

 

2 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.5063 on December 29, 2017 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.

 

3 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 attached “Reconciliations of GAAP and Non-GAAP Results" at the end of this press release reconciles Non-GAAP financial information with the Company's financial results under GAAP.

 

4 The 12 local tour operators are located in Beijing, Xiamen, Wuyishan, Guilin, Nanning, Changsha, Zhangjiajie, Xi’an, Luoyang, Nanjing, Guiyang and Haikou in China.

 

5 The 2 local tour operators are located in Japan and Thailand.

 

 

 

 

Comparison of Revenues

 

We adopted ASC 606 new revenue standard effective January 1, 2017 by applying the full retrospective method. To increase comparability of operating results and help investors better understand our business performance and operating trends, we have provided the following comparison between revenues, cost of revenues and gross profit for the fourth quarter and fiscal year of 2017 and the relevant Non-GAAP adjusted data for corresponding periods in 2016:

 

(in thousands RMB)

Quarter 

Ended December 31, 2016

Quarter 

Ended December 31, 2017

 % of change

Year 

Ended December 31, 2016

Year 

Ended December 31, 2017

 % of change
Revenues            
Packaged tours 219,460  290,054 32.2% 1,061,299 1,589,353 49.8%
Others 102,263  179,832 75.9% 386,283 602,747 56.0%
Total revenues 321,723 469,886 46.1% 1,447,582 2,192,100 51.4%
Net revenues 321,723 469,886 46.1% 1,430,275 2,192,100 53.3%
Cost of revenues (153,261) (234,733) 53.2% (784,540) (1,024,206) 30.5%
Gross profit 168,462 235,153 39.6% 645,735 1,167,894 80.9%

 

 

Additional information regarding our Non-GAAP definition and reconciliations of GAAP and Non-GAAP results are provided at the end of this announcement.

 

Mr. Donald Dunde Yu, Tuniu’s co-founder, Chairman and Chief Executive Officer, said, “2017 has been a year filled with achievements and milestones for Tuniu. We successfully expanded our own local tour operators on the service side and we continued to diversify our sales channels on the distribution side, which included opening offline retail stores throughout China. Going into 2018, we look forward to continuing the implementation of our core strategies of expanding our sales network, strengthening our service network and improving our technology network.”

 

Ms. Maria Yi Xin, Tuniu’s Chief Financial Officer, said, “For the full year 2017, Tuniu’s net revenues increased by 53.3% year-over-year while gross profit increased by 80.9% year-over-year. Tuniu has lowered overall user acquisition costs through the expansion of its sales network and improved online content. We have also improved product margins through direct procurement and local tour operators, and continue to offer more choices to our customers through our destination-based products. Combining these elements, we are able to optimize the lifetime value of customers on Tuniu.”

 

Fourth Quarter 2017 Results

 

Net revenues were RMB469.9 million (US$72.2 million) in the fourth quarter of 2017, representing a year-over-year increase of 46.1%, compared with Non-GAAP net revenues, from the corresponding period in 2016.

 

 

 

 

·Revenues from packaged tours, which are mainly recognized on a net basis, were RMB290.1 million (US$44.6 million) in the fourth quarter of 2017, representing a year-over-year increase of 32.2%, compared with Non-GAAP revenues from packaged tours, from the corresponding period in 2016. The increase was primarily due to the growth of organized tours and self-guided tours.

 

·Other revenues were RMB179.8 million (US$27.6 million) in the fourth quarter of 2017, representing a year-over-year increase of 75.9%, compared with Non-GAAP other revenues, from the corresponding period in 2016. The increase was primarily due to a rise in revenues generated from financial services and commission fees received from certain travel-related products.

 

Cost of revenues was RMB234.7 million (US$36.1 million) in the fourth quarter of 2017, representing a year-over-year increase of 53.2%, compared with Non-GAAP cost of revenues, from the corresponding period in 2016. As a percentage of net revenues, cost of revenues was 50.0% in the fourth quarter of 2017, compared to 47.6% as a percentage of Non-GAAP net revenues in the corresponding period in 2016.

 

Gross profit was RMB235.2 million (US$36.1 million) in the fourth quarter of 2017, representing a year-over-year increase of 39.6%, compared with Non-GAAP gross profit, from the corresponding period in 2016. The increase in gross profit was primarily due to improved economies of scale and optimized supply chain management.

 

Operating expenses were RMB456.0 million (US$70.1 million) in the fourth quarter of 2017, representing a year-over-year decrease of 40.2% from the corresponding period in 2016. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB54.0 million (US$8.3 million) in the fourth quarter of 2017. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB402.0 million (US$61.8 million) in the fourth quarter of 2017, representing a year-over-year decrease of 42.9%.

 

·Research and product development expenses were RMB111.2 million (US$17.1 million) in the fourth quarter of 2017, representing a year-over-year decrease of 34.7%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.7 million (US$0.3 million), were RMB109.4 million (US$16.8 million) in the fourth quarter of 2017, representing a year-over-year decrease of 34.9% from the corresponding period in 2016. Research and product development expenses as a percentage of net revenues were 23.7% in the fourth quarter of 2017, decreasing from 52.9% as a percentage of Non-GAAP net revenues in the corresponding period in 2016. The decrease was primarily due to the increase in efficiency resulting from economies of scale and implementation of operation systems, and optimization of research and product development personnel.

 

 

 

 

·Sales and marketing expenses were RMB193.7 million (US$29.8 million) in the fourth quarter of 2017, representing a year-over-year decrease of 51.3%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB34.4 million (US$5.3 million), were RMB159.3 million (US$24.5 million) in the fourth quarter of 2017, representing a year-over-year decrease of 56.5% from the corresponding period in 2016. Sales and marketing expenses as a percentage of net revenues were 41.2% in the fourth quarter of 2017, decreasing from 123.7% as a percentage of Non-GAAP net revenues in the corresponding period in 2016. The decrease was primarily due to the decline in brand promotions and preference for marketing channels with higher ROI.

 

·General and administrative expenses were RMB154.5 million (US$23.7 million) in the fourth quarter of 2017, representing a year-over-year decrease of 24.8%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB17.9 million (US$2.7 million), were RMB136.6 million (US$21.0 million) in the fourth quarter of 2017, representing a year-over-year decrease of 24.5% from the corresponding period in 2016. General and administrative expenses as a percentage of net revenues were 32.9% in the fourth quarter of 2017, decreasing from 63.9% as a percentage of Non-GAAP net revenues in the corresponding period in 2016. The decrease was primarily due to the increase in efficiency resulting from economies of scale and optimization of administrative personnel.

 

Loss from operations was RMB220.8 million (US$33.9 million) in the fourth quarter of 2017, compared to a loss from operations of RMB588.2 million in the fourth quarter of 2016. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB166.7 million (US$25.6 million) in the fourth quarter of 2017.

 

Net loss was RMB186.1 million (US$28.6 million) in the fourth quarter of 2017, compared to a net loss of RMB567.9 million in the fourth quarter of 2016. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB132.0 million (US$20.3 million) in the fourth quarter of 2017.

 

Net loss attributable to ordinary shareholders was RMB184.9 million (US$28.4 million) in the fourth quarter of 2017, compared to a net loss attributable to ordinary shareholders of RMB561.1 million in the fourth quarter of 2016. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB130.7 million (US$20.1 million) in the fourth quarter of 2017.

 

As of December 31, 2017, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.7 billion (US$562.6million).

 

Fiscal Year 2017 Results

 

Net revenues were RMB2.2 billion (US$336.9 million) in 2017, representing a year-over-year increase of 53.3%, compared with Non-GAAP net revenues in 2016.

 

 

 

 

·Revenues from packaged tours, which are mainly recognized on a net basis, were RMB1.6 billion (US$244.3 million) in 2017, representing a year-over-year increase of 49.8%, compared with Non-GAAP revenues from packaged tours in 2016. The increase was primarily due to the growth of organized tours and self-guided tours.

 

·Other revenues were RMB602.7 million (US$92.6 million) in 2017, representing a year-over-year increase of 56.0%, compared with Non-GAAP other revenues in 2016. The increase was primary due to a rise in revenues generated from financial services and commission fees received from certain travel-related products.

 

Cost of revenues was RMB1.0 billion (US$157.4 million) in 2017, representing a year-over-year increase of 30.5%, compared with Non-GAAP cost of revenues in 2016. As a percentage of net revenues, cost of revenues was 46.7% in 2017, compared to 54.9% as a percentage of Non-GAAP net revenues in 2016.

 

Gross profit was RMB1.2 billion (US$179.5 million) in 2017, representing a year-over-year increase of 80.9%, compared with Non-GAAP gross profit in 2016. The increase in gross profit and gross margin was primarily due to improved economies of scale, increased operational efficiency and optimized supply chain management.

 

Operating expenses were RMB2.1 billion (US$315.3 million) in 2017, representing a year-over-year decrease of 34.6% from 2016. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB239.1 million (US$36.8 million) in 2017. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB1.8 billion (US$278.5 million) in 2017, representing a year-over-year decrease of 37.8%.

 

·Research and product development expenses were RMB541.1 million (US$83.2 million) in 2017, representing a year-over-year decrease of 10.0%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB8.5 million (US$1.3 million), were RMB532.7 million (US$81.9 million) in 2017, representing a year-over-year decrease of 10.3% from 2016. Research and product development expenses as a percentage of net revenues were 24.7% in 2017, decreasing from 42.0% as a percentage of Non-GAAP net revenues in 2016. The decrease was primarily due to the increase in efficiency resulting from economies of scale and implementation of operation systems, and optimization of research and product development personnel.

 

·Sales and marketing expenses were RMB894.1 million (US$137.4 million) in 2017, representing a year-over-year decrease of 52.9%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB138.3 million (US$21.3 million), were RMB755.8 million (US$116.2 million) in 2017, representing a year-over-year decrease of 57.3% from 2016. Sales and marketing expenses as a percentage of net revenues were 40.8% in 2017, decreasing from 132.9% as a percentage of Non-GAAP net revenues in 2016. The decrease was primarily due to the decline in brand promotions and preference for marketing channels with higher ROI.

 

 

 

 

·General and administrative expenses were RMB637.8 million (US$98.0 million) in 2017, representing a year-over-year decrease of 3.2%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB92.4 million (US$14.2 million), were RMB545.4 million (US$83.8 million) in 2017, representing a year-over-year decrease of 4.4% from 2016. General and administrative expenses as a percentage of net revenues were 29.1% in 2017, decreasing from 46.1% as a percentage of Non-GAAP net revenues in 2016. The decrease was primarily due to the increase in efficiency resulting from economies of scale and optimization of administrative personnel.

 

Loss from operations was RMB883.4 million (US$135.8 million) in 2017, compared to a loss from operations of RMB2.5 billion in 2016. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB643.2 million (US$98.9 million) in 2017.

 

Net loss was RMB771.3 million (US$118.6 million) in 2017, compared to a net loss of RMB2.4 billion in 2016. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB531.1 million (US$81.6 million) in 2017.

 

Net loss attributable to ordinary shareholders was RMB773.0 million (US$118.8 million) in 2017, compared to a net loss attributable to ordinary shareholders of RMB2.4 billion in 2016. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB532.8 million (US$81.9 million) in 2017.

 

Business Outlook

 

For the first quarter of 2018, Tuniu expects to generate RMB469.7 million to RMB488.0 million of net revenues, which represents 3% to 7% growth 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 March 14, 2018, (8:00 pm, Beijing/Hong Kong Time, on March 14, 2018) to discuss the fourth quarter and fiscal year 2017 financial results.

 

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

 

US:           +1-888-346-8982
    
Hong Kong:    800-905945
    
China:         4001-201203
    
International:  +1-412-902-4272

 

 

 

 

Conference ID: Tuniu 4Q 2017 Earnings Call

 

A telephone replay will be available one hour after the end of the conference through March 21, 2018. The dial-in details are as follows:

 

US:           +1-877-344-7529
    
International:  +1-412-317-0088

 

Replay Access Code: 10117726

 

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 has over 2,000,000 stock keeping units (SKUs) of packaged tours, covering 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. 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 fourth 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; 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 net revenue, cost of revenues, research and product development expenses, sales and marketing expenses, general and administrative expenses, operating expenses, loss from operations, net loss, net loss attributable to noncontrolling interests, net loss attributable to ordinary shareholders, net loss per ordinary share attributable to ordinary shareholders-basic and diluted and net loss per ADS, which excludes adjustment on net basis and timing of revenue recognition as in 2017, 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.

 

For investor and media inquiries, please contact:

 

China

 

Mary Chen

 

Investor Relations Director

 

Tuniu Corporation

 

Phone: +86-25-6960-9988

 

E-mail: ir@tuniu.com

 

 

 

(Financial Tables Follow)

 

 

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands, except per share information)

 

   December 31, 2016   December 31, 2017   December 31, 2017 
   RMB   RMB   US$ 
             
ASSETS               
Current assets               
Cash and cash equivalents   1,085,236    484,101    74,405 
Restricted cash   124,561    91,810    14,111 
Short-term investments   3,603,497    3,084,634    474,100 
Accounts receivable, net   235,673    286,627    44,054 
Amounts due from related parties   390,330    171,331    26,333 
Prepayments and other current assets   1,632,329    939,463    144,393 
Yield enhancement products and accrued interest   449,528    31,337    4,816 
Total current assets   7,521,154    5,089,303    782,212 
                
Non-current assets               
Long term investments   58,764    484,991    74,542 
Property and equipment, net   177,817    148,278    22,790 
Intangible assets, net   592,267    460,634    70,798 
Goodwill   147,639    147,639    22,692 
Yield enhancement products over one year and accrued interest   562,643    170,505    26,206 
Other non-current assets   46,468    156,455    24,047 
Long-term amounts due from related parties   64,902    -    - 
Total non-current assets   1,650,500    1,568,502    241,075 
Total assets   9,171,654    6,657,805    1,023,287 
                
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities               
Accounts payable   1,022,704    852,500    131,027 
Amounts due to related parties   32,526    86,923    13,360 
Salary and welfare payable   192,455    187,561    28,828 
Taxes payable   11,619    32,036    4,924 
Advances from customers   1,806,493    1,210,615    186,068 
Accrued expenses and other current liabilities   589,288    373,690    57,435 
Amounts due to the individual investors of yield enhancement products   871,914    177,971    27,354 
Total current liabilities   4,526,999    2,921,296    448,996 
                
Non-current liabilities   54,928    42,481    6,529 
Total liabilities   4,581,927    2,963,777    455,525 
                
Mezzanine equity               
Redeemable noncontrolling interests   90,072    96,719    14,865 
                
Shareholders' equity               
Ordinary shares   242    248    38 
Less: Treasury stock   (19,708)   (185,419)   (28,498)
Additional paid-in capital   8,855,991    9,013,793    1,385,395 
Accumulated other comprehensive income   400,925    272,386    41,865 
Accumulated deficit   (4,738,593)   (5,505,897)   (846,241)
Total Tuniu's shareholders' equity   4,498,857    3,595,111    552,559 
Noncontrolling interests   798    2,198    338 
Total Shareholders' equity   4,499,655    3,597,309    552,897 
Total liabilities and shareholders' equity   9,171,654    6,657,805    1,023,287 

 

 

 

 

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 
   December 31, 2016   September 30, 2017   December 31, 2017   December 31, 2017 
   RMB   RMB   RMB   US$ 
                 
Revenues                    
Packaged tours   1,847,888    604,047    290,054    44,580 
Others   105,505    202,038    179,832    27,640 
Net revenues   1,953,393    806,085    469,886    72,220 
Cost of revenues   (1,778,914)   (365,206)   (234,733)   (36,078)
Gross profit   174,479    440,879    235,153    36,142 
                     
Operating expenses                    
Research and product development   (170,123)   (123,974)   (111,151)   (17,084)
Sales and marketing   (398,095)   (224,808)   (193,696)   (29,771)
General and administrative   (205,500)   (165,874)   (154,490)   (23,745)
Other operating income   11,070    7,757    3,348    515 
Total operating expenses   (762,648)   (506,899)   (455,989)   (70,085)
Loss from operations   (588,169)   (66,020)   (220,836)   (33,943)
Other income/(expenses)                    
Interest income   21,704    39,864    44,426    6,828 
Foreign exchange gains/(losses), net   (1,702)   1,908    (2,009)   (309)
Other loss, net   (2,310)   (174)   (147)   (23)
Loss before income tax expense   (570,477)   (24,422)   (178,566)   (27,447)
Income taxes benefit /(expense)   2,610    (2,583)   (7,569)   (1,163)
Net loss   (567,867)   (27,005)   (186,135)   (28,610)
Net income/(loss) attributable to noncontrolling interests   (6,838)   609    (2,939)   (452)
Net income/(loss) attributable to redeemable noncontrolling interests   (34)   514    (93)   (14)
Net loss attributable to Tuniu Corporation   (560,995)   (28,128)   (183,103)   (28,144)
Accretion on redeemable noncontrolling interest   (106)   (1,177)   (1,757)   (270)
Net loss attributable to ordinary shareholders   (561,101)   (29,305)   (184,860)   (28,414)
                     
Net loss   (567,867)   (27,005)   (186,135)   (28,610)
Other comprehensive income/(loss):                    
Foreign currency translation adjustment, net of nil tax   141,523    (36,143)   (24,770)   (3,807)
Comprehensive loss   (426,344)   (63,148)   (210,905)   (32,417)
                     
Loss per share                    
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (1.48)   (0.08)   (0.48)   (0.07)
Net loss per ADS - basic and diluted*   (4.44)   (0.24)   (1.44)   (0.21)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   378,785,214    372,335,675    387,993,534    387,993,534 
                     
Share-based compensation expenses included are as follows:                    
Cost of revenues   276    228    230    35 
Research and product development   1,709    2,005    1,324    203 
Sales and marketing   419    545    201    31 
General and administrative   23,657    28,451    17,089    2,627 
Total   26,061    31,229    18,844    2,896 

 

*Each ADS represents three of the Company's ordinary shares.

 

 

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(All amounts in thousands, except per share information)

 

   Year Ended   Year Ended   Year Ended 
   December 31, 2016   December 31, 2017   December 31, 2017 
   RMB   RMB   US$ 
             
Revenues               
Packaged tours   10,147,148    1,589,353    244,279 
Others   401,100    602,747    92,641 
Total revenues   10,548,248    2,192,100    336,920 
Less: Business and related taxes   (17,307)   -    - 
Net revenues   10,530,941    2,192,100    336,920 
Cost of revenues   (9,891,736)   (1,024,206)   (157,418)
Gross profit   639,205    1,167,894    179,502 
                
Operating expenses               
Research and product development   (601,402)   (541,126)   (83,170)
Sales and marketing   (1,900,397)   (894,148)   (137,428)
General and administrative   (658,790)   (637,795)   (98,027)
Other operating income   22,323    21,749    3,343 
Total operating expenses   (3,138,266)   (2,051,320)   (315,282)
Loss from operations   (2,499,061)   (883,426)   (135,780)
Other income/(expenses)               
Interest income   87,305    130,250    20,019 
Foreign exchange losses, net   (9,734)   (2,394)   (368)
Other loss, net   (2,553)   (121)   (19)
Loss before income tax expense   (2,424,043)   (755,691)   (116,148)
Income taxes benefit /(expense)   1,711    (15,625)   (2,402)
Net loss   (2,422,332)   (771,316)   (118,550)
Net loss attributable to noncontrolling interests   (15,104)   (4,934)   (758)
Net income/(loss) attributable to redeemable noncontrolling interests   (34)   922    142 
Net loss attributable to Tuniu Corporation   (2,407,194)   (767,304)   (117,934)
Accretion on redeemable noncontrolling interest   (106)   (5,725)   (880)
Net loss attributable to ordinary shareholders   (2,407,300)   (773,029)   (118,814)
                
Net loss   (2,422,332)   (771,316)   (118,550)
Other comprehensive income/(loss):               
Foreign currency translation adjustment, net of nil tax   233,900    (128,539)   (19,756)
Comprehensive loss   (2,188,432)   (899,855)   (138,306)
                
Loss per share               
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (6.45)   (2.04)   (0.31)
Net loss per ADS - basic and diluted*   (19.35)   (6.12)   (0.93)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   373,347,855    378,230,039    378,230,039 
                
Share-based compensation expenses included are as follows:               
Cost of revenues   891    1,075    165 
Research and product development   5,702    6,864    1,055 
Sales and marketing   1,390    1,650    254 
General and administrative   84,436    89,086    13,692 
Total   92,419    98,675    15,166 

 

*Each ADS represents three of the Company's ordinary shares.

 

 

 

 

Tuniu Corporation

Comparison with Non-GAAP data of corresponding periods

(All amounts in thousands, except per share information)

 

To increase comparability of operating results and help investors better understand our business performance and operating trends, we have provided the following comparison of certain GAAP financial information for the fourth quarter of 2017 with relevant Non-GAAP adjusted data for corresponding periods in 2016.

 

   Quarter Ended   Quarter Ended   Quarter Ended   Quarter Ended 
   December 31, 2016   September 30, 2017   December 31, 2017   December 31, 2017 
   RMB   RMB   RMB   US$ 
                 
Net revenues   321,723    806,085    469,886    72,220 
                     
Gross profit   168,462    440,879    235,153    36,142 
                     
Operating expenses   (704,048)   (506,899)   (455,989)   (70,085)
                     
Loss from operations   (535,586)   (66,020)   (220,836)   (33,943)
                     
Net loss   (515,284)   (27,005)   (186,135)   (28,610)
                     
Net loss attributable to ordinary shareholders   (507,927)   (29,305)   (184,860)   (28,414)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (1.34)   (0.08)   (0.48)   (0.07)

 

 

 

 

 

Tuniu Corporation

Comparison with Non-GAAP data of corresponding periods

(All amounts in thousands, except per share information)

                 

To increase comparability of operating results and help investors better understand our business performance and operating trends, we have provided the following comparison of certain GAAP financial information for the fiscal year of 2017 with relevant Non-GAAP adjusted data for corresponding periods in 2016.

                 

   Year Ended   Year Ended 
   December 31, 2016   December 31, 2017 
   RMB   RMB 
         
Net revenues   1,430,275    2,192,100 
           
Gross profit   645,735    1,167,894 
           
Operating expenses   (2,913,056)   (2,051,320)
           
Loss from operations   (2,267,321)   (883,426)
           
Net loss   (2,190,592)   (771,316)
           
Net loss attributable to ordinary shareholders   (2,175,560)   (773,029)
           
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (5.83)   (2.04)

 

 

 

 

Reconciliations of GAAP and Non-GAAP Results

(All amounts in thousands, except per share information)

 

   Quarter Ended December 31, 2017 
       Adjustment on net basis and timing of   Share-based   Amortization of acquired   Non-GAAP 
   GAAP Result   revenue recognition as in 2017   Compensation   intangible assets   Result 
                     
Net revenues   469,886    -    -    -    469,886 
Cost of revenues   (234,733)   -    230    -    (234,503)
                          
Research and product development   (111,151)   -    1,324    399    (109,428)
Sales and marketing   (193,696)   -    201    34,163    (159,332)
General and administrative   (154,490)   -    17,089    777    (136,624)
Other operating income   3,348    -    -    -    3,348 
Total operating expenses   (455,989)   -    18,614    35,339    (402,036)
                          
Loss from operations   (220,836)   -    18,844    35,339    (166,653)
                          
Net loss   (186,135)   -    18,844    35,339    (131,952)
                          
Net loss attributable to ordinary shareholders   (184,860)   -    18,844    35,339    (130,677)
                          
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.48)                  (0.34)
Net loss per ADS - basic and diluted   (1.44)                  (1.02)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   387,993,534                   387,993,534 

 

 

   Quarter Ended September 30, 2017 
       Adjustment on net basis and timing of   Share-based   Amortization of acquired   Non-GAAP 
   GAAP Result   revenue recognition as in 2017   Compensation   intangible assets   Result 
                     
Net revenues   806,085    -    -    -    806,085 
Cost of revenues   (365,206)   -    228    -    (364,978)
                          
Research and product development   (123,974)   -    2,005    399    (121,570)
Sales and marketing   (224,808)   -    545    34,163    (190,100)
General and administrative   (165,874)   -    28,451    876    (136,547)
Other operating income   7,757    -    -    -    7,757 
Total operating expenses   (506,899)   -    31,001    35,438    (440,460)
                          
Loss from operations   (66,020)   -    31,229    35,438    647 
                          
Net income/(loss)   (27,005)   -    31,229    35,438    39,662 
                          
Net income/(loss) attributable to ordinary shareholders   (29,305)   -    31,229    35,438    37,362 
                          
Net income/(loss) per ordinary share*                         
-Basic   (0.08)                  0.10 
-Diluted   (0.08)                  0.10 
Net income/(loss) per ADS                         
-Basic   (0.24)                  0.30 
-Diluted   (0.24)                  0.30 
Weighted average number of ordinary shares                         
-Basic   372,335,675                   372,335,675 
-Diluted   372,335,675                   380,259,980 

 

 

   Quarter Ended December 31, 2016 
       Adjustment on net basis and timing of   Share-based   Amortization of acquired   Non-GAAP 
   GAAP Result   revenue recognition as in 2017   Compensation   intangible assets   Result 
                     
Net revenues   1,953,393    (1,631,670)   -    -    321,723 
Cost of revenues   (1,778,914)   1,625,377    276    -    (153,261)
                        - 
Research and product development   (170,123)   -    1,709    399    (168,015)
Sales and marketing   (398,095)   (2,718)   419    34,168    (366,226)
General and administrative   (205,500)   -    23,657    966    (180,877)
Other operating income   11,070    -    -    -    11,070 
Total operating expenses   (762,648)   (2,718)   25,785    35,533    (704,048)
                          
Loss from operations   (588,169)   (9,011)   26,061    35,533    (535,586)
                          
Net loss   (567,867)   (9,011)   26,061    35,533    (515,284)
                          
Net loss attributable to noncontrolling interests   (6,838)   (591)   -    -    (7,429)
Net loss attributable to ordinary shareholders   (561,101)   (8,420)   26,061    35,533    (507,927)
                          
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (1.48)                  (1.34)
Net loss per ADS - basic and diluted   (4.44)                  (4.02)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   378,785,214                   378,785,214 

 

 

 

 

Reconciliations  of GAAP and Non-GAAP Results

(All amounts in thousands, except per share information)

                     

 

   Year Ended December 31, 2017 
       Adjustment on net basis and timing of   Share-based   Amortization of acquired   Non-GAAP 
   GAAP Result   revenue recognition as in 2017   Compensation   intangible assets   Result 
                     
Net revenues   2,192,100    -    -    -    2,192,100 
Cost of revenues   (1,024,206)   -    1,075    -    (1,023,131)
                          
Research and product development   (541,126)   -    6,864    1,596    (532,666)
Sales and marketing   (894,148)   -    1,650    136,652    (755,846)
General and administrative   (637,795)   -    89,086    3,273    (545,436)
Other operating income   21,749    -    -    -    21,749 
Total operating expenses   (2,051,320)   -    97,600    141,521    (1,812,199)
                          
Loss from operations   (883,426)   -    98,675    141,521    (643,230)
                          
Net loss   (771,316)   -    98,675    141,521    (531,120)
                          
Net loss attributable to ordinary shareholders   (773,029)   -    98,675    141,521    (532,833)
                          
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (2.04)                  (1.41)
Net loss per ADS - basic and diluted   (6.12)                  (4.23)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   378,230,039                   378,230,039 

 

 

   Year Ended December 31, 2016 
       Adjustment on net basis and timing of   Share-based   Amortization of acquired   Non-GAAP 
   GAAP Result   revenue recognition as in 2017   Compensation   intangible assets   Result 
                     
Net revenues   10,530,941    (9,100,666)   -    -    1,430,275 
Cost of revenues   (9,891,736)   9,106,597    891    (292)   (784,540)
                        - 
Research and product development   (601,402)   -    5,702    1,747    (593,953)
Sales and marketing   (1,900,397)   (8,027)   1,390    136,239    (1,770,795)
General and administrative   (658,790)   -    84,436    3,723    (570,631)
Other operating income   22,323    -    -    -    22,323 
Total operating expenses   (3,138,266)   (8,027)   91,528    141,709    (2,913,056)
                          
Loss from operations   (2,499,061)   (2,096)   92,419    141,417    (2,267,321)
                          
Net loss   (2,422,332)   (2,096)   92,419    141,417    (2,190,592)
                          
Net loss attributable to noncontrolling interests   (15,104)   -    -    -    (15,104)
Net loss attributable to ordinary shareholders   (2,407,300)   (2,096)   92,419    141,417    (2,175,560)
                          
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (6.45)                  (5.83)
Net loss per ADS - basic and diluted   (19.35)                  (17.49)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   373,347,855                   373,347,855 
                          

 

*Basic net income/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Diluted net income/(loss) per share is calculated by dividing net income/(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.