Tuniu Announces Unaudited Third Quarter 2020 Financial Results
NANJING, China, December 1, 2020 -- 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, 2020.
"In the third quarter, as China's domestic travel industry further recovered, Tuniu's revenues continued to improve with declining operating expenses for the third consecutive quarter as our operating cash flow turned positive," said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "With our strong supply chain advantages, innovative product models and diverse customer acquisition channels, Tuniu is able to offer Chinese travelers highly satisfying and cost-effective products. Looking ahead, we are confident that Tuniu is well positioned to grasp opportunities, expand our core competencies and strengthen our market position."
Third Quarter 2020 Results
Net revenues were RMB123.5 million (US$18.2 million 1 ) in the third quarter of 2020, representing a year-over-year decrease of 85.5% from the corresponding period in 2019. The decrease was primarily due to the negative impact brought by the outbreak and spread of COVID-19.
Revenues from packaged tours were RMB86.4 million (US$12.7 million) in the third quarter of 2020, representing a year-over-year decrease of 88.4% from the corresponding period in 2019. The decrease was primarily due to the decline in travel to international destinations impacted by the outbreak and spread of COVID-19.
Other revenues were RMB37.1 million (US$5.5 million) in the third quarter of 2020, representing a year-over-year decrease of 64.8% from the corresponding period in 2019. The decrease was primarily due to the decline in service fees received from insurance companies and revenues generated from financial services.
Cost of revenues was RMB58.5 million (US$8.6 million) in the third quarter of 2020, representing a year-over-year decrease of 87.6% from the corresponding period in 2019. As a percentage of net revenues, cost of revenues was 47.3% in the third quarter of 2020, compared to 55.4% in the corresponding period in 2019.
Gross margin was 52.7% in the third quarter of 2020, compared to a gross margin of 44.6% in the third quarter of 2019.
Operating expenses were RMB127.8 million (US$18.8 million) in the third quarter of 2020, representing a year-over-year decrease of 70.8% from the corresponding period in 2019. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB9.6 million (US$1.4 million) in the third
1
The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate ofUS$1.00=RMB 6.7896 on September 30, 2020 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available athttps://www.federalreserve.gov/releases/h10/default.htm.
quarter of 2020. Non-GAAP 2 operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB118.2 million (US$17.4 million) in the third quarter of 2020, representing a year-over-year decrease of 69.4%.
Research and product development expenses were RMB16.0 million (US$2.4 million) in the third quarter of 2020, representing a year-over-year decrease of 75.1%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.1 million (US$0.2 million), were RMB14.9 million (US$2.2 million) in the third quarter of 2020, representing a year-over-year decrease of 75.8% from the corresponding period in 2019. The decrease was primarily due to the decrease in research and product development personnel related expenses.
Sales and marketing expenses were RMB49.9 million (US$7.3 million) in the third quarter of 2020, representing a year-over-year decrease of 79.2%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB6.2 million (US$0.9 million), were RMB43.6 million (US$6.4 million) in the third quarter of 2020, representing a year-over-year decrease of 78.7% from the corresponding period in 2019. The decrease was primarily due to the decrease in promotion expenses and sales and marketing personnel related expenses.
General and administrative expenses were RMB69.8 million (US$10.3 million) in the third quarter of 2020, representing a year-over-year decrease of 49.6%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB2.3 million (US$0.3 million), were RMB67.4 million (US$9.9 million) in the third quarter of 2020, representing a year-over-year decrease of 45.8% from the corresponding period in 2019. The decrease was primarily due to the decrease in general and administrative personnel related expenses.
Loss from operations was RMB62.8 million (US$9.2 million) in the third quarter of 2020, compared to a loss from operations of RMB56.9 million in the third quarter of 2019. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB53.0 million (US$7.8 million) in the third quarter of 2020.
Net loss was RMB62.1 million (US$9.1 million) in the third quarter of 2020, compared to a net loss of RMB12.6 million in the third quarter of 2019. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB52.3 million (US$7.7 million) in the third quarter of 2020.
2
The section below entitled "About Non-GAAP Financial Measures" provides information about the use ofNon-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.
Net loss attributable to ordinary shareholders was RMB56.9 million (US$8.4 million) in the third quarter of 2020, compared to a net loss attributable to ordinary shareholders of RMB13.5 million in the third quarter of 2019. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB47.2 million (US$6.9 million) in the third quarter of 2020.
As of September 30, 2020, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.6 billion (US$229.2 million). The COVID-19 pandemic has negatively impacted our business operation and cash flows for the third quarter of 2020, which could continue to impact on subsequent periods. Based on our liquidity assessment and management actions, we believe that our available cash, cash equivalents and maturity of investments will be sufficient to meet our working capital requirements and capital expenditures in the ordinary course of business for the next twelve months.
Business Outlook
Tuniu's business has been significantly and negatively impacted by the outbreak and spread of COVID-19 since January 2020. As a result of the continued influence by COVID-19, for the fourth quarter of 2020, the Company expects to generate RMB112.8 million to RMB135.4 million of net revenues, which represents 70% to 75% 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, 2020, (9:00 pm, Beijing/Hong Kong Time, on December 1, 2020) to discuss the third quarter 2020 financial results.
To participate in the conference call, please dial the following numbers:
US: +1-888-346-8982
Hong Kong: +852-301-84992
Mainland China: 4001-201203
International: +1-412-902-4272
Conference ID: Tuniu 3Q 2020 Earnings Call
A telephone replay will be available one hour after the end of the conference through December 8, 2020. The dial-in details are as follows:
US: +1-877-344-7529
International: +1-412-317-0088
Replay Access Code: 10150213
Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website athttp://ir.tuniu.com.
About Tuniu
Tuniu (Nasdaq:TOUR) is a leading online leisure travel company in China that offers a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. Tuniu covers over 420 departing cities throughout China and all popular destinations worldwide. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network, including a dedicated team of professional customer service representatives, 24/7 call centers, extensive networks of offline retail stores and self-operated local tour operators. For more information, please visithttp://ir.tuniu.com.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S.
Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Tuniu may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Tuniu's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.
Such factors and risks include, but are not limited to the following: Tuniu's goals and strategies; the growth of the online leisure travel market in China; the demand for Tuniu's products and services; its relationships with customers and travel suppliers; the Company's ability to offer competitive travel products and services; Tuniu's future business development, results of
operations and financial condition; competition in the online travel industry in China; relevant government policies and regulations relating to the Company's structure, business and
industry; the impact of the COVID-19 on Tuniu's business operations, the travel industry and the economy of China and elsewhere generally; and the general economic and business condition in China and elsewhere. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tuniu does not undertake any obligation to update such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement the Company's unaudited consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company has provided non-GAAP information related to cost of revenues, research and product development expenses, sales and marketing expenses, general and administrative expenses, other operating income, total operating expenses, loss from operations, net loss, net loss attributable to ordinary shareholders, net loss per ordinary share attributable to ordinary shareholders-basic and diluted and net loss per ADS-basic and diluted, which excludes share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets. We believe that the non-GAAP financial measures used in this press release are useful for understanding and assessing underlying business performance and operating trends, and management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and when planning and forecasting future periods. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP Results" set forth at the end of this press release.
A limitation of using non-GAAP financial measures excluding share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets is that share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets have been - and will continue to be - significant recurring expenses in the Company's business. You should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies.
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, 2019
RMB
September 30, 2020
RMBSeptember 30, 2020
US$
ASSETS Current assets
Cash and cash equivalents | 295,463 | 668,419 | 98,447 |
Restricted cash | 327,052 | 41,057 | 6,047 |
Short-term investments | 1,305,386 | 846,372 | 124,657 |
Accounts receivable, net | 529,983 | 312,653 | 46,049 |
Amounts due from related parties | 65,108 | 50,795 | 7,481 |
Prepayments and other current assets | 1,300,284 | 824,056 | 121,370 |
Total current assets | 3,823,276 | 2,743,352 | 404,051 |
Non-current assets | |||
Long-term investments | 1,305,612 | 464,226 | 68,373 |
Property and equipment, net | 223,340 | 187,832 | 27,665 |
Intangible assets, net | 166,267 | 100,632 | 14,821 |
Land use right, net | 98,774 | 97,228 | 14,320 |
Operating lease right-of-use assets, net | 105,839 | 39,756 | 5,855 |
Goodwill | 232,007 | 232,007 | 34,171 |
Other non-current assets | 83,923 | 48,213 | 7,101 |
Long-term amounts due from related parties | 557,582 | 554,152 | 81,621 |
Total non-current assets | 2,773,344 | 1,724,046 | 253,927 |
Total assets | 6,596,620 | 4,467,398 | 657,978 |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities | |||
Short-term borrowings | 203,845 | 20,736 | 3,054 |
Accounts and notes payable | 1,311,963 | 925,857 | 136,364 |
Amounts due to related parties | 29,755 | 22,902 | 3,373 |
Salary and welfare payable | 112,511 | 60,292 | 8,880 |
Taxes payable | 12,207 | 2,824 | 416 |
Advances from customers | 1,113,879 | 300,022 | 44,188 |
Operating lease liabilities, current | 57,490 | 24,081 | 3,547 |
Accrued expenses and other current liabilities | 907,119 | 719,670 | 105,996 |
Total current liabilities | 3,748,769 | 2,076,384 | 305,818 |
Non-current liabilities | |||
Operating lease liabilities, non-current | 54,718 | 31,705 | 4,670 |
Deferred tax liabilities | 23,658 | 21,235 | 3,128 |
Long-term borrowings | 9,689 | 24,074 | 3,546 |
Other non-current liabilities | 10,947 | 10,947 | 1,612 |
Total non-current liabilities | 99,012 | 87,961 | 12,956 |
Total liabilities | 3,847,781 | 2,164,345 | 318,774 |
Mezzanine equity | |||
Redeemable noncontrolling interests | 37,200 | 27,261 | 4,015 |
Shareholders' equity | |||
Ordinary shares | 249 | 249 | 37 |
Less: Treasury stock | (310,942) | (307,290) | (45,259) |
Additional paid-in capital | 9,113,512 | 9,119,524 | 1,343,161 |
Accumulated other comprehensive income | 293,784 | 289,611 | 42,655 |
Accumulated deficit* | (6,385,974) | (6,811,458) | (1,003,219) |
Total Tuniu's shareholders' equity | 2,710,629 | 2,290,636 | 337,375 |
Noncontrolling interests | 1,010 | (14,844) | (2,186) |
Total Shareholders' equity | 2,711,639 | 2,275,792 | 335,189 |
Total liabilities and shareholders' equity | 6,596,620 | 4,467,398 | 657,978 |
*On 1 January 2020, the Company adopted ASU No. 2016-13 (ASU 2016-13), "Financial Instruments - Credit Losses" , and recognized a cumulative-effect adjustment to the opening retained earnings at the adoption date.
Tuniu Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except per share information)Revenues
Packaged tours
Others
Net revenues Cost of revenues Gross profit
Operating expenses
Research and product development
Sales and marketing
General and administrative
Other operating income
Total operating expenses Loss from operations Other income/(expenses)
Interest and investment income/(loss), net
Interest expense
Foreign exchange (losses)/gains, net
Other income, net
Loss before income tax expense Income tax benefit
Equity in income/(loss) of affiliates Net loss
Net loss attributable to noncontrolling interests
Net (loss)/income attributable to redeemable noncontrolling i n te re s ts
Net loss attributable to Tuniu Corporation
(Accretion on)/Reversal of redeemable noncontrolling interests Net loss attributable to ordinary shareholders
Net loss
Other comprehensive income/(loss):
Foreign currency translation adjustment, net of nil tax Comprehensive loss
Loss per share
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted
Net loss per ADS - basic and diluted*
Weighted average number of ordinary shares used in computing basic and diluted loss per share
Share-based compensation expenses included are as follows:
Cost of revenues
Research and product development Sales and marketing
General and administrative Total
*Each ADS represents three of the Company's ordinary shares.
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended |
September 30, 2019 | June 30, 2020 | September 30, 2020 | September 30, 2020 |
RMB | RMB | RMB | US$ |
747,122
105,395
852,517
(472,040)
380,477
(64,310)
(239,973)
(138,456)
5,406
(437,333)
(56,856)
42,780
(8,900)
(5,190)
14,847
(13,319)
698 -
(12,621)
(565)
(102)
(11,954)
(1,518)
(13,472)
(12,621)
12,276
(345)
(0.04)
(0.12)
369,559,765
52
2,065
119
13,294
15,530
12,563
21,461
34,024
(26,292)
7,732
(20,647)
(84,255)
(60,952)
7,774
(158,080)
(150,348)
7,061
(9,627)
(4,184)
1,323
(155,775)
934
215
(154,626)
(7,073)
142
(147,695)
81
(147,614)
(154,626)
(271) (154,897)
(0.40)
(1.20)
370,145,186
189
832
147
1,759
2,927
86,413 12,727
37,132 5,469
123,545 (58,472) 65,073
18,196 (8,612) 9,584
(16,008) (2,358)
(49,869) (7,345)
(69,769) (10,276)
7,803
1,149
(127,843) (18,830)
(62,770) (9,246)
(7,389) (1,088)
(6,483) (955)
12,779 1,882
1,056 156
(62,807)
1,037
(286)
(62,056)
(5,152)
-
(56,904)
-(9,251)
153
(42)
(9,140)
(759)
-
(8,381)
-(56,904) (8,381)
(62,056) (9,140)
(11,993) (1,766)
(74,049) (10,906)
(0.15) (0.02)
(0.45) (0.06)
370,298,762
370,298,762
97 14
287 42
132 19
1,626 239
2,142
314
Reconciliations of GAAP and Non-GAAP Results
(All amounts in thousands, except per share information)
Quarter Ended September 30, 2020
GAAP | Share-based | Amortization of acquired | Non-GAAP |
Result | Compensation | intangible assets | Result |
Cost of revenues
(58,472)
97
- (58,375)
Research and product development Sales and marketing
(16,008)
287
782 (14,939)
(49,869)
132
6,105 (43,632)
General and administrative Other operating income Total operating expenses
(69,769)
7,803
1,626 -
709 (67,434)
-
7,803
(127,843)Loss from operations
(62,770)
Net loss
(62,056)
Net loss attributable to ordinary shareholders
(56,904)
2,045 2,142 2,142 2,142
7,596 (118,202)
7,596 (53,032)
7,596 (52,318)
7,596 (47,166)
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted
(0.15) (0.13)
Net loss per ADS - basic and diluted
(0.45) (0.39)Weighted average number of ordinary shares used in computing basic and diluted loss per share
370,298,762
370,298,762
Quarter Ended June 30, 2020
GAAP ResultShare-based CompensationAmortization of acquired intangible assets
Non-GAAP
Result
Cost of revenues
Research and product development Sales and marketing
General and administrative 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
Net loss per ADS - basic and diluted
Weighted average number of ordinary shares used in computing basic and diluted loss per share
(26,292) | 189 | - | (26,103) |
(20,647) | 832 | 782 | (19,033) |
(84,255) | 147 | 14,915 | (69,193) |
(60,952) | 1,759 | 709 | (58,484) |
7,774 | - | - | 7,774 |
(158,080) | 2,738 | 16,406 | (138,936) |
(150,348) | 2,927 | 16,406 | (131,015) |
(154,626) | 2,927 | 16,406 | (135,293) |
(147,614) | 2,927 | 16,406 | (128,281) |
(0.40) | (0.35) | ||
(1.20) | (1.05) | ||
370,145,186 | 370,145,186 | ||
Quarter Ended September 30, 2019 | |||
GAAP | Non-GAAP | ||
Result | Result |
Share-based Compensation
Amortization of acquired intangible assets
Cost of revenues
Research and product development Sales and marketing
General and administrative Other operating income Total operating expenses
Loss from operations
Net (Loss)/Income
Net (Loss)/Income attributable to ordinary shareholders
Net (loss)/income per ordinary share attributable to ordinary s hareholders (RMB)
-Ba s i c
-Diluted
Net (loss)/income per ADS (RMB) -Ba s i c
-Diluted
Weighted average number of ordinary shares -Ba s i c
-Diluted
(472,040) | 52 | - | (471,988) |
(64,310) | 2,065 | 513 | (61,732) |
(239,973) | 119 | 34,907 | (204,947) |
(138,456) | 13,294 | 705 | (124,457) |
5,406 | - | - | 5,406 |
(437,333) | 15,478 | 36,125 | (385,730) |
(56,856) | 15,530 | 36,125 | (5,201) |
(12,621) | 15,530 | 36,125 | 39,034 |
(13,472) | 15,530 | 36,125 | 38,183 |
(0.04) | 0.10 | ||
(0.04) | 0.10 | ||
(0.12) | 0.30 | ||
(0.12) | 0.30 | ||
369,559,765 | 369,559,765 | ||
369,559,765 | 379,770,193 |
*Basic net loss per ordinary share attributable to ordinary shareholders is calculated by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Diluted net loss per ordinary share attributable to ordinary shareholders is calculated by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effect of share-based awards as determined under the treasury stock method.
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Tuniu Corporation published this content on 01 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2020 13:30:03 UTC