Tuniu Announces Unaudited First Quarter 2022 Financial Results

 NANJING, China, June 9, 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 first quarter ended March 31, 2022.

“Despite recent challenges in the external environment, we have continued to fully leverage Tuniu’s core competencies and strengths in product innovation and service quality to provide customers with safe and secure travel experiences. We will continue to focus on our mission to make travel easier while remaining dedicated to corporate social responsibility, and working with our customers and partners to overcome challenges, take on new opportunities and further promote the recovery and development of China’s travel industry.” said Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer. “Reflecting the progress we’ve made in optimizing our operations, Tuniu’s operating expenses have decreased year-on-year for five consecutive quarters. We will continue to implement strict expense control measures to further lower costs and improve efficiency.”

First Quarter 2022 Results

Net revenues were RMB41.5 million (US$6.5 million[1]) in the first quarter of 2022, representing a year-over-year decrease of 46.4% from the corresponding period in 2021. The decrease was primarily due to the negative impact brought by the outbreak and spread of COVID-19.

  • Revenues from packaged tours were RMB14.4 million (US$2.3 million) in the first quarter of 2022, representing a year-over-year decrease of 68.3% 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 RMB27.1 million (US$4.3 million) in the first quarter of 2022, representing a year-over-year decrease of 15.3% from the corresponding period in 2021. The decrease was primarily due to the decrease in the fees for advertising services provided to tourism boards and bureaus.

Cost of revenues was RMB25.7 million (US$4.0 million) in the first quarter of 2022, representing a year-over-year decrease of 47.3% from the corresponding period in 2021. As a percentage of net revenues, cost of revenues was 61.9% in the first quarter of 2022, compared to 63.0% in the corresponding period in 2021.

Gross profit was RMB15.8 million (US$2.5 million) in the first quarter of 2022, representing a year-over-year decrease of 44.8% from the corresponding period in 2021.

[1] The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB 6.3393 on March 31, 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.

Operating expenses were RMB68.6 million (US$10.8 million) in the first quarter of 2022, representing a year-over-year decrease of 17.8% from the corresponding period in 2021. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB3.1 million (US$0.5 million) in the first quarter of 2022. Non-GAAP[2] operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB65.5 million (US$10.3 million) in the first quarter of 2022, representing a year-over-year decrease of 17.6%.

  • Research and product development expenses were RMB16.2 million (US$2.6 million) in the first quarter of 2022, representing a year-over-year increase of 37.3%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB0.8 million (US$0.1 million), were RMB15.4 million (US$2.4 million) in the first quarter of 2022, representing a year-over-year increase of 41.9% from the corresponding period in 2021. The increase was primarily due to the increase in research and product development personnel related expenses.
  • Sales and marketing expenses were RMB29.8 million (US$4.7 million) in the first quarter of 2022, representing a year-over-year decrease of 15.9%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.2 million (US$0.2 million), were RMB28.6 million (US$4.5 million) in the first quarter of 2022, representing a year-over-year decrease of 16.5% from the corresponding period in 2021. The decrease was primarily due to the decrease in promotion expenses.
  • General and administrative expenses were RMB27.7 million (US$4.4 million) in the first quarter of 2022, representing a year-over-year decrease of 38.2%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.2 million (US$0.2 million), were RMB26.5 million (US$4.2 million) in the first quarter of 2022, representing a year-over-year decrease of 38.2% from the corresponding period in 2021. The decrease was primarily due to the decrease in general and administrative personnel related expenses and allowance for doubtful accounts.

[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.

Loss from operations was RMB52.8 million (US$8.3 million) in the first quarter of 2022, compared to a loss from operations of RMB54.9 million in the first quarter of 2021. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB49.6 million (US$7.8 million) in the first quarter of 2022.

Net loss was RMB41.7 million (US$6.6 million) in the first quarter of 2022, compared to a net loss of RMB41.6 million in the first quarter of 2021. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB38.4 million (US$6.1 million) in the first quarter of 2022.

Net loss attributable to ordinary shareholders was RMB40.4 million (US$6.4 million) in the first quarter of 2022, compared to a net loss attributable to ordinary shareholders of RMB39.5 million in the first quarter of 2021. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB37.2 million (US$5.9 million) in the first quarter of 2022.

As of March 31, 2022, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB929.5 million (US$146.6 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.

Business Outlook

For the second quarter of 2022, the Company expects to generate RMB32.2 million to RMB40.2 million of net revenues, which represents a 75% to 80% 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 a.m. U.S. Eastern Time, on June 9, 2022, (8:00 p.m., Beijing/Hong Kong Time, on June 9, 2022) to discuss the first 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 1Q 2022 Earnings Call

A telephone replay will be available one hour after the end of the conference call through June 16, 2022. The dial-in details are as follows:

U.S.:           +1-877-344-7529

International:   +1-412-317-0088

Replay Access Code: 2866159

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 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 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, 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 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.

(Financial Tables Follow)

Tuniu Corporation

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands, except per share information)


 December 31, 2021 


 March 31, 2022 


 March 31, 2022 


 RMB 


 RMB 


 US$ 







ASSETS






Current assets






Cash and cash equivalents

349,077


320,589


50,572

Restricted cash 

46,521


30,318


4,783

Short-term investments

615,901


578,561


91,266

Accounts receivable, net

111,941


99,338


15,670

Amounts due from related parties

14,969


14,515


2,290

Prepayments and other current assets  

337,033


361,319


56,997

Total current assets

1,475,442


1,404,640


221,578







Non-current assets






Long-term investments

201,947


207,664


32,758

Property and equipment, net

98,159


94,770


14,950

Intangible assets, net

55,376


52,583


8,295

Land use right, net

94,652


94,136


14,850

Operating lease right-of-use assets, net

48,115


37,898


5,978

Goodwill

232,007


232,007


36,598

Other non-current assets

92,111


89,607


14,135

Total non-current assets

822,367


808,665


127,564

Total assets

2,297,809


2,213,305


349,142







LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND

EQUITY






Current liabilities






Short-term borrowings

9,981


9,558


1,508

Accounts and notes payable 

383,626


371,078


58,536

Amounts due to related parties

4,679


3,250


513

Salary and welfare payable

33,761


37,195


5,867

Taxes payable

8,004


4,461


704

Advances from customers

139,777


109,574


17,285

Operating lease liabilities, current

16,556


15,433


2,434

Accrued expenses and other current liabilities

382,629


393,919


62,142

Total current liabilities

979,013


944,468


148,989







Non-current liabilities






Operating lease liabilities, non-current

38,832


31,842


5,023

Deferred tax liabilities

12,479


11,926


1,881

Long-term borrowings

14,344


12,738


2,009

Total non-current liabilities

65,655


56,506


8,913

Total liabilities

1,044,668


1,000,974


157,902







Redeemable noncontrolling interests

27,200


27,200


4,291







Equity






Ordinary shares

249


249


39

Less: Treasury stock

(293,795)


(293,433)


(46,288)

Additional paid-in capital

9,125,748


9,126,362


1,439,648

Accumulated other comprehensive income

271,821


271,691


42,858

Accumulated deficit

(7,834,879)


(7,875,312)


(1,242,300)

Total Tuniu Corporation shareholders’ equity

1,269,144


1,229,557


193,957

Noncontrolling interests

(43,203)


(44,426)


(7,008)

Total equity

1,225,941


1,185,131


186,949

Total liabilities, redeemable noncontrolling interests and equity

2,297,809


2,213,305


349,142

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 


 March 31, 2021 


 December 31, 2021 


 March 31, 2022 


 March 31, 2022 


 RMB 


 RMB 


 RMB 


 US$ 









Revenues








Packaged tours

45,361


42,761


14,375


2,268

Others

31,999


30,642


27,104


4,276

Net revenues

77,360


73,403


41,479


6,544

Cost of revenues

(48,706)


(39,250)


(25,666)


(4,049)

Gross profit

28,654


34,153


15,813


2,495









Operating expenses








Research and product development

(11,791)


(13,494)


(16,185)


(2,553)

Sales and marketing

(35,418)


(28,612)


(29,783)


(4,698)

General and administrative

(44,744)


(46,512)


(27,658)


(4,363)

Other operating income

8,437


10,571


5,000


789

Total operating expenses

(83,516)


(78,047)


(68,626)


(10,825)

Loss from operations

(54,862)


(43,894)


(52,813)


(8,330)

Other (expenses)/income








Interest and investment income

15,283


6,171


11,524


1,818

Interest expense

(2,636)


(1,814)


(1,950)


(308)

Foreign exchange gains/(losses), net

(1,249)


4,453


129


20

Other income, net

1,086


459


659


104

Loss before income tax expense

(42,378)


(34,625)


(42,451)


(6,696)

Income tax benefit/(expense)

618


(1,450)


553


87

Equity in income/(loss) of affiliates

129


(169)


242


38

Net loss

(41,631)


(36,244)


(41,656)


(6,571)

Net loss attributable to noncontrolling interests

(2,150)


(2,348)


(1,223)


(193)

Net loss attributable to Tuniu Corporation

(39,481)


(33,896)


(40,433)


(6,378)

Net loss attributable to ordinary shareholders

(39,481)


(33,896)


(40,433)


(6,378)









Net loss

(41,631)


(36,244)


(41,656)


(6,571)

Other comprehensive loss:








Foreign currency translation adjustment, net of nil tax

3,647


(4,134)


(130)


(21)

Comprehensive loss

(37,984)


(40,378)


(41,786)


(6,592)









Net loss per ordinary share attributable to ordinary shareholders –

basic and diluted

(0.11)


(0.09)


(0.11)


(0.02)

Net loss per ADS – basic and diluted*

(0.33)


(0.27)


(0.33)


(0.06)









Weighted average number of ordinary shares used in computing

basic and diluted loss per share

370,590,545


371,020,652


371,079,992


371,079,992









Share-based compensation expenses included are as follows








Cost of revenues

54


78


77


12

Research and product development

153


136


243


38

Sales and marketing

122


129


121


19

General and administrative

1,201


770


534


84

Total

1,530


1,113


975


153









*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 March 31, 2022


 GAAP Result 


 Share-based 


Amortization of acquired 


 Non-GAAP 



 Compensation 


  intangible assets 


 Result 









Cost of revenues

(25,666)


77



(25,589)









Research and product development

(16,185)


243


534


(15,408)

Sales and marketing

(29,783)


121


1,065


(28,597)

General and administrative

(27,658)


534


637


(26,487)

Other operating income

5,000




5,000

Total operating expenses

(68,626)


898


2,236


(65,492)









Loss from operations

(52,813)


975


2,236


(49,602)









Net loss

(41,656)


975


2,236


(38,445)









Net loss attributable to ordinary shareholders

(40,433)


975


2,236


(37,222)









Net loss per ordinary share attributable to ordinary

shareholders – basic and diluted

(0.11)






(0.10)

Net loss per ADS – basic and diluted

(0.33)






(0.30)









Weighted average number of ordinary shares used in

computing basic and diluted loss per share

371,079,992






371,079,992










 Quarter Ended December 31, 2021


 GAAP Result 


 Share-based 


Amortization of acquired 


 Non-GAAP 



 Compensation 


  intangible assets 


 Result 









Cost of revenues

(39,250)


78



(39,172)









Research and product development

(13,494)


136


534


(12,824)

Sales and marketing

(28,612)


129


1,065


(27,418)

General and administrative

(46,512)


770


637


(45,105)

Other operating income

10,571




10,571

Total operating expenses

(78,047)


1,035


2,236


(74,776)









Loss from operations

(43,894)


1,113


2,236


(40,545)









Net loss

(36,244)


1,113


2,236


(32,895)









Net loss attributable to ordinary shareholders

(33,896)


1,113


2,236


(30,547)









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

371,020,652






371,020,652










 Quarter Ended March 31, 2021


 GAAP Result 


 Share-based 


Amortization of acquired 


 Non-GAAP 



 Compensation 


  intangible assets 


 Result 









Cost of revenues

(48,706)


54



(48,652)









Research and product development

(11,791)


153


782


(10,856)

Sales and marketing

(35,418)


122


1,065


(34,231)

General and administrative

(44,744)


1,201


681


(42,862)

Other operating income

8,437




8,437

Total operating expenses

(83,516)


1,476


2,528


(79,512)









Loss from operations

(54,862)


1,530


2,528


(50,804)









Net loss

(41,631)


1,530


2,528


(37,573)









Net loss attributable to ordinary shareholders

(39,481)


1,530


2,528


(35,423)









Net loss per ordinary share attributable to ordinary

shareholders – basic and diluted

(0.11)






(0.10)

Net loss per ADS – basic and diluted

(0.33)






(0.30)









Weighted average number of ordinary shares used in

computing basic and diluted loss per share

370,590,545






370,590,545

















*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.

SOURCE Tuniu Corporation


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