Tuniu Announces Unaudited Second Quarter 2023 Financial Results

NANJING, China, Aug. 17, 2023 /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 second quarter ended June 30, 2023.

Highlights for the Second Quarter of 2023

Net revenues in the second quarter of 2023 increased by 170.5% year-over-year to RMB100.0 million (US$13.8 million[1]).
Revenues from package tours in the second quarter of 2023 increased by 632.3% year-over-year to RMB69.8 million (US$9.6 million).
Gross profit in the second quarter of 2023 increased by 296.0% year-over-year to RMB65.4 million (US$9.0 million).
Income from operations in the second quarter of 2023 was RMB6.8 million (US$0.9 million), compared to a loss from operations of RMB122.9 million in the second quarter of 2022. Non-GAAP[2] income from operations in the second quarter of 2023 was RMB12.1 million (US$1.7 million), compared to a Non-GAAP loss from operations of RMB38.9 million in the second quarter of 2022.
Net income in the second quarter of 2023 was RMB221.0 thousand (US$30.0 thousand), compared to a net loss of RMB128.5 million in the second quarter of 2022. Non-GAAP net income in the second quarter of 2023 was RMB5.6 million (US$0.8 million), compared to a Non-GAAP net loss of RMB44.6 million in the second quarter of 2022.

“We are encouraged to report a strong performance for the second quarter of 2023, with our net revenues growing by 170.5% year-over-year, and revenues from packaged tours increasing by 632.3% year-over-year. We have achieved our first quarterly operating profit since Tuniu’s listing and our first quarterly net income since the pandemic outbreak.” said Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer. “This demonstrates that as the external environment improves, we have effective strategies in place across our products, services and technology to strengthen Tuniu’s operational and financial performance. We will continue to leverage Tuniu’s core advantages in both the upstream and downstream segments of our industry chain, differentiating ourselves in the market as we continue to create value for our customers and shareholders.”

[1] The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB 7.2513 on June 30, 2023 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.

Second Quarter 2023 Results

Net revenues were RMB100.0 million (US$13.8 million) in the second quarter of 2023, representing a year-over-year increase of 170.5% from the corresponding period in 2022. The increase was primarily due to the growth of packaged tours as the travel market recovers.

Revenues from packaged tours were RMB69.8 million (US$9.6 million) in the second quarter of 2023, representing a year-over-year increase of 632.3% from the corresponding period in 2022. The increase was primarily due to the growth of organized tours.
Other revenues were RMB30.2 million (US$4.2 million) in the second quarter of 2023, representing a year-over-year increase of 10.0% from the corresponding period in 2022. The increase was primarily due to the increase in service fees received from insurance companies.

Cost of revenues was RMB34.5 million (US$4.8 million) in the second quarter of 2023, representing a year-over-year increase of 69.0% from the corresponding period in 2022. As a percentage of net revenues, cost of revenues was 34.6% in the second quarter of 2023, compared to 55.3% in the corresponding period in 2022.

Gross profit was RMB65.4 million (US$9.0 million) in the second quarter of 2023, representing a year-over-year increase of 296.0% from the corresponding period in 2022.

Operating expenses were RMB58.6 million (US$8.1 million) in the second quarter of 2023, representing a year-over-year decrease of 57.9% from the corresponding period in 2022. The decrease was primarily due to the fact that the Company did not incur gain on disposals of subsidiaries and impairment of goodwill in the second quarter of 2023. Gain on disposals of subsidiaries, which was recorded in other operating income, in the amount of RMB32.8 million and impairment of goodwill in the amount of RMB112.1 million were incurred as operating expenses in the second quarter of 2022. 

Research and product development expenses were RMB13.8 million (US$1.9 million) in the second quarter of 2023, representing a year-over-year decrease of 1.0%. The decrease was primarily due to the decrease in amortization of acquired intangible assets.
Sales and marketing expenses were RMB24.9 million (US$3.4 million) in the second quarter of 2023, representing a year-over-year increase of 1.8%. The increase was primarily due to the increase in promotion expenses.
General and administrative expenses were RMB21.7 million (US$3.0 million) in the second quarter of 2023, representing a year-over-year decrease of 9.0%. The decrease was primarily due to the decrease in general and administrative personnel related expenses.

Income from operations was RMB6.8 million (US$0.9 million) in the second quarter of 2023, compared to a loss from operations of RMB122.9 million in the second quarter of 2022. Non-GAAP income from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill, was RMB12.1 million (US$1.7 million) in the second quarter of 2023.

Net income was RMB221.0 thousand (US$30.0 thousand) in the second quarter of 2023, compared to a net loss of RMB128.5 million in the second quarter of 2022. Non-GAAP net income, which excluded share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill, was RMB5.6 million (US$0.8 million) in the second quarter of 2023.

Net income attributable to ordinary shareholders of Tuniu Corporation was RMB0.7 million (US$0.1 million) in the second quarter of 2023, compared to a net loss attributable to ordinary shareholders of Tuniu Corporation of RMB126.5 million in the second quarter of 2022. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill, was RMB6.0 million (US$0.8 million) in the second quarter of 2023.

As of June 30, 2023, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.1 billion (US$155.5 million).

Business Outlook

For the third quarter of 2023, Tuniu expects to generate RMB163.5 million to RMB171.3 million of net revenues, which represents a 110% to 120% increase year-over-year compared with net revenues in the corresponding period in 2022. 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 August 17, 2023, (8:00 pm, Beijing/Hong Kong Time, on August 17, 2023) to discuss the second quarter 2023 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 2Q 2023 Earnings Conference Call

A telephone replay will be available one hour after the end of the conference call through August 24, 2023. The dial-in details are as follows:

US

1-877-344-7529

International

1-412-317-0088

Replay Access Code: 6774303

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 income/(loss) from operations, net income/(loss), net income/(loss) attributable to ordinary shareholders of Tuniu Corporation, which excludes share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. 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.

This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. Tuniu encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

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.

(Financial Tables Follow)

Tuniu Corporation

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands, except per share information)

 December 31, 2022 

 June 30, 2023 

 June 30, 2023 

 RMB 

 RMB 

 US$ 

ASSETS

Current assets

Cash and cash equivalents

153,835

309,153

42,634

Restricted cash 

44,052

31,335

4,321

Short-term investments

724,413

787,348

108,580

Accounts receivable, net

33,644

77,746

10,722

Amounts due from related parties

1,030

2,855

394

Prepayments and other current assets  

242,994

222,491

30,683

Total current assets

1,199,968

1,430,928

197,334

Non-current assets

Long-term investments

230,562

230,827

31,832

Property and equipment, net

85,182

79,225

10,926

Intangible assets, net

30,672

28,767

3,967

Land use right, net

92,590

91,559

12,627

Operating lease right-of-use assets, net

33,204

14,905

2,055

Goodwill

114,661

114,661

15,812

Other non-current assets

91,091

73,596

10,149

Total non-current assets

677,962

633,540

87,368

Total assets

1,877,930

2,064,468

284,702

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND

EQUITY

Current liabilities

Short-term borrowings

7,517

7,215

995

Accounts and notes payable 

261,873

328,760

45,338

Amounts due to related parties

4,710

5,522

762

Salary and welfare payable

26,507

24,314

3,353

Taxes payable

4,047

1,737

240

Advances from customers

98,899

247,473

34,128

Operating lease liabilities, current

12,439

2,667

368

Accrued expenses and other current liabilities

358,312

349,899

48,252

Total current liabilities

774,304

967,587

133,436

Non-current liabilities

Operating lease liabilities, non-current

26,482

10,014

1,381

Deferred tax liabilities

6,839

6,433

887

Long-term borrowings

11,959

10,941

1,509

Total non-current liabilities

45,280

27,388

3,777

Total liabilities

819,584

994,975

137,213

Redeemable noncontrolling interests

27,200

27,200

3,751

Equity

Ordinary shares

249

249

34

Less: Treasury stock

(288,600)

(287,548)

(39,655)

Additional paid-in capital

9,125,655

9,129,654

1,259,037

Accumulated other comprehensive income

298,981

312,677

43,120

Accumulated deficit

(8,028,261)

(8,034,620)

(1,108,025)

Total Tuniu Corporation shareholders’ equity

1,108,024

1,120,412

154,511

Noncontrolling interests

(76,878)

(78,119)

(10,773)

Total equity

1,031,146

1,042,293

143,738

Total liabilities, redeemable noncontrolling interests and equity

1,877,930

2,064,468

284,702

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income

(All amounts in thousands, except per share information)

 Quarter Ended 

 Quarter Ended 

 Quarter Ended 

 Quarter Ended 

 June 30, 2022 

 March 31, 2023 

 June 30, 2023 

 June 30, 2023 

 RMB 

 RMB 

 RMB 

 US$ 

Revenues

Packaged tours

9,531

40,130

69,793

9,625

Others

27,426

23,051

30,159

4,159

Net revenues

36,957

63,181

99,952

13,784

Cost of revenues

(20,440)

(24,301)

(34,547)

(4,764)

Gross profit

16,517

38,880

65,405

9,020

Operating expenses

Research and product development

(13,963)

(14,328)

(13,820)

(1,906)

Sales and marketing

(24,474)

(19,987)

(24,906)

(3,435)

General and administrative

(23,888)

(22,319)

(21,741)

(2,998)

Impairment of goodwill

(112,102)

Other operating income

35,059

762

1,841

254

Total operating expenses

(139,368)

(55,872)

(58,626)

(8,085)

(Loss)/income from operations

(122,851)

(16,992)

6,779

935

Other income/(expenses)

Interest and investment income, net

5,206

6,321

7,122

982

Interest Expense

(582)

(1,149)

(218)

(30)

Foreign exchange (losses)/gains, net

(11,424)

3,514

(15,152)

(2,090)

Other income, net

302

1,101

1,820

251

(Loss)/income before income tax expense

(129,349)

(7,205)

351

48

Income taxes benefit/(expense) 

21

203

(783)

(108)

Equity in income/(loss) of affiliates

790

(469)

653

90

Net (loss)/income

(128,538)

(7,471)

221

30

Net loss attributable to noncontrolling interests

(2,019)

(454)

(437)

(60)

Net (loss)/income attributable to ordinary shareholders of Tuniu

Corporation

(126,519)

(7,017)

658

90

Net (loss)/income

(128,538)

(7,471)

221

30

Other comprehensive income/(loss):

Foreign currency translation adjustment, net of nil tax

17,277

(4,040)

17,736

2,446

Comprehensive (loss)/income

(111,261)

(11,511)

17,957

2,476

Net (loss)/income per ordinary share attributable to ordinary

shareholders – basic and diluted

(0.34)

(0.02)

Net (loss)/income per ADS – basic and diluted*

(1.02)

(0.06)

Weighted average number of ordinary shares used in computing

basic (loss)/income per share

371,112,997

371,394,686

371,418,638

371,418,638

Weighted average number of ordinary shares used in computing

diluted (loss)/income per share

371,112,997

371,394,686

376,427,714

376,427,714

Share-based compensation expenses included are as follows:

Cost of revenues

291

18

54

7

Research and product development

299

18

54

7

Sales and marketing

448

(16)

28

4

General and administrative

1,639

758

4,383

604

Total

2,677

778

4,519

622

*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 June 30, 2023

 GAAP Result 

 Share-based 

Amortization of acquired 

Gain on disposals

Impairment

 Non-GAAP 

 Compensation 

  intangible assets 

  of subsidiaries 

 of goodwill 

 Result 

Income from operations

6,779

4,519

828

12,126

Net income

221

4,519

828

5,568

Net income attributable to ordinary shareholders of Tuniu

Corporation

658

4,519

828

6,005

 Quarter Ended March 31, 2023

 GAAP Result 

 Share-based 

Amortization of acquired 

Gain on disposals

Impairment

 Non-GAAP 

 Compensation 

  intangible assets 

  of subsidiaries 

 of goodwill 

 Result 

Loss from operations

(16,992)

778

828

(15,386)

Net loss

(7,471)

778

828

(5,865)

Net loss attributable to ordinary shareholders of Tuniu

Corporation

(7,017)

778

828

(5,411)

 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 

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 of Tuniu

Corporation

(126,519)

2,677

1,939

(32,786)

112,102

(42,587)

SOURCE Tuniu Corporation


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