Tuniu Announces Unaudited Third Quarter 2022 Financial Results

<br /> Tuniu Announces Unaudited Third Quarter 2022 Financial Results<br />

PR Newswire



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.

Cision
View original content:

https://www.prnewswire.com/news-releases/tuniu-announces-unaudited-third-quarter-2022-financial-results-301691176.html

SOURCE Tuniu Corporation