Tuniu Announces Unaudited First Quarter 2021 Financial Results

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, 2021.

“We are excited to see that China’s domestic travel market has been recovering at a rapid pace. As a leading high-quality tourism company in China, Tuniu is benefiting from the strong market momentum as travelers increasingly trust us to provide integrated services including product development, destination services and reservations. Looking ahead, we will continue to create more innovative products and services to fulfill our mission of making travel easier.” said Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer. “In the first quarter, we further improved our operating efficiency as operating expenses continued to decline. As market conditions continue to improve, Tuniu will be on the right track to create long-term value for customers and shareholders.”

First Quarter 2021 Results

Net revenues were RMB77.4 million (US$11.8 million[1]) in the first quarter of 2021, representing a year-over-year decrease of 55.5% from the corresponding period in 2020. The decrease was primarily due to the negative impact brought by the outbreak and spread of COVID-19.

Revenues from packaged tours were RMB45.4 million (US$6.9 million) in the first quarter of 2021, representing a year-over-year decrease of 62.3% from the corresponding period in 2020. 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 RMB32.0 million (US$4.9 million) in the first quarter of 2021, representing a year-over-year decrease of 40.5% from the corresponding period in 2020. The decrease was primarily due to the decline in revenues generated from financial services.
[1] The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB 6.5518 on March 31, 2021 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.

Cost of revenues was RMB48.7 million (US$7.4 million) in the first quarter of 2021, representing a year-over-year decrease of 40.2% from the corresponding period in 2020. As a percentage of net revenues, cost of revenues was 63.0% in the first quarter of 2021, compared to 46.8% in the corresponding period in 2020.

Gross profit was RMB28.7 million (US$4.4 million) in the first quarter of 2021, representing a year-over-year decrease of 69.0% from the corresponding period in 2020.

Operating expenses were RMB83.5 million (US$12.7 million) in the first quarter of 2021, representing a year-over-year decrease of 72.9% from the corresponding period in 2020. Share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, which were allocated to operating expenses, were RMB4.0 million (US$0.6 million) in the first quarter of 2021. Non-GAAP[2] operating expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, were RMB79.5 million (US$12.1 million) in the first quarter of 2021, representing a year-over-year decrease of 70.6%.

[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.

Research and product development expenses were RMB11.8 million (US$1.8 million) in the first quarter of 2021, representing a year-over-year decrease of 76.9%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB0.9 million (US$0.1 million), were RMB10.9 million (US$1.7 million) in the first quarter of 2021, representing a year-over-year decrease of 77.4% from the corresponding period in 2020. The decrease was primarily due to the decrease in research and product development personnel related expenses.
Sales and marketing expenses were RMB35.4 million (US$5.4 million) in the first quarter of 2021, representing a year-over-year decrease of 71.6%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets of RMB1.2 million (US$0.2 million), were RMB34.2 million (US$5.2 million) in the first quarter of 2021, representing a year-over-year decrease of 63.1% from the corresponding period in 2020. The decrease was primarily due to the decrease in sales and marketing personnel related expenses and amortization of acquired intangible assets.
General and administrative expenses were RMB44.7 million (US$6.8 million) in the first quarter of 2021, representing a year-over-year decrease of 66.6%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.9 million (US$0.3 million), were RMB42.9 million (US$6.5 million) in the first quarter of 2021, representing a year-over-year decrease of 67.3% from the corresponding period in 2020. The decrease was primarily due to the decrease in general and administrative personnel related expenses and allowance for doubtful accounts.
Loss from operations was RMB54.9 million (US$8.4 million) in the first quarter of 2021, compared to a loss from operations of RMB215.5 million in the first quarter of 2020. Non-GAAP loss from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB50.8 million (US$7.8 million) in the first quarter of 2021.

Net loss was RMB41.6 million (US$6.4 million) in the first quarter of 2021, compared to a net loss of RMB205.2 million in the first quarter of 2020. Non-GAAP net loss, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB37.6 million (US$5.7 million) in the first quarter of 2021.

Net loss attributable to ordinary shareholders was RMB39.5 million (US$6.0 million) in the first quarter of 2021, compared to a net loss attributable to ordinary shareholders of RMB201.5 million in the first quarter of 2020. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB35.4 million (US$5.4 million) in the first quarter of 2021.

As of March 31, 2021, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.3 billion (US$198.6 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 2021, the Company expects to generate RMB142.9 million to RMB149.7 million of net revenues, which represents 320% to 340% increase year-over-year. This forecast reflects Tuniu’s current and preliminary view on the industry and its operations, which is subject to change.

Source: Tuniu Corporation