Tuniu Announces Unaudited Fourth Quarter and Fiscal Year 2022 Financial Results

---

NANJING, China, March 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 fourth quarter and fiscal year ended December 31, 2022.

"Although 2022 was the most difficult year for travel industry since the pandemic outbreak, we were pleased to see the beginning of a recovery in the fourth quarter," said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "Despite the challenges we faced last year, Tuniu has consistently pursued new opportunities and continued to upgrade our products and services while enhancing our core competencies. In the new year, as domestic and outbound travel markets gradually re-open, the release of pent-up travel demand is further supporting the industry's rebound. Tuniu will seize this window of opportunity and leverage the strengths which we have built up over the years in supply chain, products, services and sales to achieve a rapid and steady business recovery. In addition to focusing on our business development, we will continue to implement effective cost control measures and improve efficiency to promote Tuniu's healthy long-term development."

Fourth Quarter 2022 Results

Net revenues were RMB27.3 million (US$4.0 million[1]) in the fourth quarter of 2022, representing a year-over-year decrease of 62.8% 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 RMB5.0 million (US$0.7 million) in the fourth quarter of 2022, representing a year-over-year decrease of 88.4% 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 RMB22.4 million (US$3.2 million) in the fourth quarter of 2022, representing a year-over-year decrease of 27.0% 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 RMB15.1 million (US$2.2 million) in the fourth quarter of 2022, representing a year-over-year decrease of 61.5% from the corresponding period in 2021. As a percentage of net revenues, cost of revenues was 55.4% in the fourth quarter of 2022, compared to 53.5% in the corresponding period in 2021.

Gross margin was 44.6% in the fourth quarter of 2022, compared to a gross margin of 46.5% in the fourth quarter of 2021.

[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.8972 on December 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.

Operating expenses were RMB32.5 million (US$4.7 million) in the fourth quarter of 2022, representing a year-over-year decrease of 58.4% from the corresponding period in 2021. Gain on disposals of subsidiaries which was allocated to operating expenses, was RMB32.2 million (US$4.7 million) in the fourth quarter of 2022.

  • Research and product development expenses were RMB10.9 million (US$1.6 million) in the fourth quarter of 2022, representing a year-over-year decrease of 19.1%. The decrease was primarily due to the decrease in research and product development personnel related expenses.
  • Sales and marketing expenses were RMB22.9 million (US$3.3 million) in the fourth quarter of 2022, representing a year-over-year decrease of 20.1%. The decrease was primarily due to the decreases in promotion expenses and sales and marketing personnel related expenses.
  • General and administrative expenses were RMB33.1 million (US$4.8 million) in the fourth quarter of 2022, representing a year-over-year decrease of 28.8%. The decrease was primarily due to the decreases in general and administrative personnel related expenses and allowance for expected credit losses.

Loss from operations was RMB20.3 million (US$2.9 million) in the fourth quarter of 2022, compared to a loss from operations of RMB43.9 million in the fourth quarter of 2021. Non-GAAP[2] loss from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and gain on disposals of subsidiaries, was RMB50.1 million (US$7.3 million) in the fourth quarter of 2022.

Net loss was RMB9.3 million (US$1.3 million) in the fourth quarter of 2022, compared to a net loss of RMB36.2 million in the fourth quarter of 2021. Non-GAAP net loss, which excluded share-based compensation expenses, amortization of acquired intangible assets and gain on disposals of subsidiaries, was RMB39.1 million (US$5.7 million) in the fourth quarter of 2022.

Net loss attributable to ordinary shareholders was RMB4.4 million (US$0.6 million) in the fourth quarter of 2022, compared to a net loss attributable to ordinary shareholders of RMB33.9 million in the fourth quarter of 2021. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses, amortization of acquired intangible assets and gain on disposals of subsidiaries, was RMB34.2 million (US$5.0 million) in the fourth quarter of 2022.

[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.

As of December 31, 2022, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB922.3 million (US$133.7 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.

Fiscal Year 2022 Results

Net revenues were RMB183.6 million (US$26.6 million) in 2022, representing a year-over-year decrease of 56.9% from 2021. The decrease was primarily due to the negative impact brought by the outbreak and spread of COVID-19.

  • Revenues from packaged tours were RMB70.3 million (US$10.2 million) in 2022, representing a year-over-year decrease of 77.0% from 2021. The decrease was primarily due to the resurgence of COVID-19 in certain regions in China.
  • Other revenues were RMB113.3 million (US$16.4 million) in 2022, representing a year-over-year decrease of 6.4% from 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 RMB94.1 million (US$13.6 million) in 2022, representing a year-over-year decrease of 63.1% from 2021. As a percentage of net revenues, cost of revenues was 51.2% in 2022 compared to 59.8% in 2021.

Gross margin was 48.8% in 2022, compared to a gross margin of 40.2% in 2021.

Operating expenses were RMB299.8 million (US$43.5 million) in 2022, representing a year-over-year decrease of 15.1% from 2021. Impairment of goodwill offset by gain on disposals of subsidiaries, which were allocated to operating expenses, was RMB47.2 million (US$6.8 million) in 2022.

  • Research and product development expenses were RMB50.8 million (US$7.4 million) in 2022, representing a year-over-year decrease of 7.0%. The decrease was primarily due to the decrease in research and development personnel related expenses.
  • Sales and marketing expenses were RMB103.6 million (US$15.0 million) in 2022, representing a year-over-year decrease of 31.1%. The decrease was primarily due to the decreases in promotion expenses and sales and marketing personnel related expenses.
  • General and administrative expenses were RMB108.9 million (US$15.8 million) in 2022, representing a year-over-year decrease of 37.4%. The decrease was primarily due to the decreases in general and administrative personnel related expenses and allowance for expected credit losses.

Loss from operations was RMB210.2 million (US$30.5 million) in 2022, compared to a loss from operations of RMB181.5 million in 2021. Non-GAAP loss from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill, was RMB151.0 million (US$21.9 million) in 2022.

Net loss was RMB203.0 million (US$29.4 million) in 2022, compared to a net loss of RMB128.5 million in 2021. Non-GAAP net loss, which excluded share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill, was RMB143.8 million (US$20.8 million) in 2022.

Net loss attributable to ordinary shareholders was RMB193.4 million (US$28.0 million) in 2022, compared to a net loss attributable to ordinary shareholders of RMB121.5 million in 2021. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses, amortization of acquired intangible assets, gain on disposals of subsidiaries and impairment of goodwill, was RMB134.1 million (US$19.4 million) in 2022.

Business Outlook

For the first quarter of 2023, Tuniu expects to generate RMB60.1 million to RMB64.3 million of net revenues, which represents a 45% to 55% 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 March 17, 2023, (8:00 pm, Beijing/Hong Kong Time, on March 17, 2023) to discuss the fourth quarter and fiscal year 2022 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 4Q 2022 Earnings Conference Call

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

US

1-877-344-7529

International

1-412-317-0088

Replay Access Code: 8859146

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 loss from operations, net loss, net loss attributable to ordinary shareholders, 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, 2021 


 December 31, 2022 


 December 31, 2022 


 RMB 


 RMB 


 US$ 







ASSETS






Current assets






Cash and cash equivalents

349,077


153,835


22,304

Restricted cash 

46,521


44,052


6,387

Short-term investments

615,901


724,413


105,030

Accounts receivable, net

111,941


33,644


4,878

Amounts due from related parties

14,969


1,030


149

Prepayments and other current assets  

337,033


242,994


35,231

Total current assets

1,475,442


1,199,968


173,979







Non-current assets






Long-term investments

201,947


230,562


33,428

Property and equipment, net

98,159


85,182


12,350

Intangible assets, net

55,376


30,672


4,447

Land use right, net

94,652


92,590


13,424

Operating lease right-of-use assets, net

48,115


33,204


4,814

Goodwill

232,007


114,661


16,624

Other non-current assets

92,111


91,091


13,207

Total non-current assets

822,367


677,962


98,294

Total assets

2,297,809


1,877,930


272,273







LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY






Current liabilities






Short-term borrowings

9,981


7,517


1,090

Accounts and notes payable 

383,626


261,873


37,968

Amounts due to related parties

4,679


4,710


683

Salary and welfare payable

33,761


26,507


3,843

Taxes payable

8,004


4,047


587

Advances from customers

139,777


98,899


14,339

Operating lease liabilities, current

16,556


12,439


1,803

Accrued expenses and other current liabilities

382,629


358,312


51,947

Total current liabilities

979,013


774,304


112,260







Non-current liabilities






Operating lease liabilities, non-current

38,832


26,482


3,840

Deferred tax liabilities

12,479


6,839


992

Long-term borrowings

14,344


11,959


1,734

Total non-current liabilities

65,655


45,280


6,566

Total liabilities

1,044,668


819,584


118,826







Redeemable noncontrolling interests

27,200


27,200


3,944







Equity






Ordinary shares

249


249


36

Less: Treasury stock

(293,795)


(288,600)


(41,843)

Additional paid-in capital

9,125,748


9,125,655


1,323,096

Accumulated other comprehensive income

271,821


298,981


43,348

Accumulated deficit

(7,834,879)


(8,028,261)


(1,163,988)

Total Tuniu Corporation shareholders' equity

1,269,144


1,108,024


160,649

Noncontrolling interests

(43,203)


(76,878)


(11,146)

Total equity

1,225,941


1,031,146


149,503

Total liabilities, redeemable noncontrolling interests and equity

2,297,809


1,877,930


272,273

 

 

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 


 December 31, 2021 


 September 30, 2022 


 December 31, 2022 


 December 31, 2022 


 RMB 


 RMB 


 RMB 


 US$ 









Revenues








Packaged tours

42,761


41,440


4,968


720

Others

30,642


36,418


22,358


3,242

Net revenues

73,403


77,858


27,326


3,962

Cost of revenues

(39,250)


(32,835)


(15,125)


(2,193)

Gross profit

34,153


45,023


12,201


1,769









Operating expenses








Research and product development

(13,494)


(9,729)


(10,922)


(1,584)

Sales and marketing

(28,612)


(26,502)


(22,858)


(3,314)

General and administrative

(46,512)


(24,270)


(33,119)


(4,802)

Other operating income

10,571


1,222


34,404


4,988

Total operating expenses

(78,047)


(59,279)


(32,495)


(4,712)

Loss from operations

(43,894)


(14,256)


(20,294)


(2,943)

Other income/(expenses)








Interest and investment income

6,171


5,491


4,960


719

Interest expense

(1,814)


(1,194)


(1,186)


(172)

Foreign exchange gains/(losses), net

4,453


(16,167)


5,252


761

Other income, net

459


2,797


2,378


345

Loss before income tax expense

(34,625)


(23,329)


(8,890)


(1,290)

Income tax (expense)/benefit

(1,450)


376


(219)


(32)

Equity in loss of affiliates

(169)


(551)


(189)


(27)

Net loss

(36,244)


(23,504)


(9,298)


(1,349)

Net loss attributable to noncontrolling interests

(2,348)


(1,456)


(4,916)


(713)

Net loss attributable to Tuniu Corporation

(33,896)


(22,048)


(4,382)


(636)

Net loss attributable to ordinary shareholders

(33,896)


(22,048)


(4,382)


(636)









Net loss

(36,244)


(23,504)


(9,298)


(1,349)

Other comprehensive (loss)/income:








Foreign currency translation adjustment, net of nil tax

(4,134)


18,066


(8,053)


(1,168)

Comprehensive loss

(40,378)


(5,438)


(17,351)


(2,517)









Net loss per ordinary share attributable to ordinary shareholders -
basic and diluted

(0.09)


(0.06)


(0.01)


-

Net loss per ADS - basic and diluted*

(0.27)


(0.18)


(0.03)


-









Weighted average number of ordinary shares used in computing
basic and diluted loss per share

371,020,652


371,274,640


371,365,207


371,365,207









Share-based compensation expenses included are as follows:








Cost of revenues

78


24


19


3

Research and product development

136


10


19


3

Sales and marketing

129


31


57


8

General and administrative

770


432


803


116

Total

1,113


497


898


130









*Each ADS represents three of the Company's ordinary shares.







 

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(All amounts in thousands, except per share information)


 Year Ended 


 Year Ended 


 Year Ended 


 December 31, 2021 


 December 31, 2022 


 December 31, 2022 


 RMB 


 RMB 


 US$ 







Revenues






Packaged tours

305,333


70,314


10,195

Others

121,015


113,306


16,428

Net revenues

426,348


183,620


26,623

Cost of revenues

(254,815)


(94,066)


(13,638)

Gross profit

171,533


89,554


12,985







Operating expenses






Research and product development

(54,622)


(50,799)


(7,365)

Sales and marketing

(150,493)


(103,617)


(15,023)

General and administrative

(174,021)


(108,935)


(15,794)

Impairment of goodwill

-


(112,102)


(16,253)

Other operating income

26,064


75,685


10,973

Total operating expenses

(353,072)


(299,768)


(43,462)

Loss from operations

(181,539)


(210,214)


(30,477)

Other income/(expenses)






Interest and investment income

50,041


27,181


3,941

Interest expense

(7,491)


(4,912)


(712)

Foreign exchange gains/(losses), net

7,030


(22,210)


(3,220)

Other income, net

2,895


6,136


890

Loss before income tax expense

(129,064)


(204,019)


(29,578)

Income tax (expense)/benefit

(130)


731


106

Equity in income of affiliates

726


292


42

Net loss

(128,468)


(202,996)


(29,430)

Net loss attributable to noncontrolling interests

(6,944)


(9,614)


(1,394)

Net loss attributable to Tuniu Corporation

(121,524)


(193,382)


(28,036)

Net loss attributable to ordinary shareholders

(121,524)


(193,382)


(28,036)







Net loss

(128,468)


(202,996)


(29,430)

Other comprehensive (loss)/income:






Foreign currency translation adjustment, net of nil tax

(3,191)


27,160


3,938

Comprehensive loss

(131,659)


(175,836)


(25,492)







Net loss per ordinary share attributable to ordinary shareholders -
basic and diluted

(0.33)


(0.52)


(0.08)

Net loss per ADS - basic and diluted*

(0.99)


(1.56)


(0.24)







Weighted average number of ordinary shares used in computing
basic and diluted loss per share

370,874,312


371,208,209


371,208,209







Share-based compensation expenses included are as follows:






Cost of revenues

390


411


60

Research and product development

724


571


83

Sales and marketing

644


657


95

General and administrative

7,374


3,408


494

Total

9,132


5,047


732







*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 December 31, 2022


 GAAP Result 


 Share-based 


Amortization of acquired 


Gain on disposals


 Non-GAAP 



 Compensation 


  intangible assets 


 of subsidiaries 


 Result 











Loss from operations

(20,294)


898


1,434


(32,165)


(50,127)











Net loss

(9,298)


898


1,434


(32,165)


(39,131)











Net loss attributable to ordinary shareholders

(4,382)


898


1,434


(32,165)


(34,215)












 Quarter Ended September 30, 2022


 GAAP Result 


 Share-based 


Amortization of acquired 


Gain on disposals


 Non-GAAP 



 Compensation 


  intangible assets 


 of subsidiaries 


 Result 











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)












 Quarter Ended December 31, 2021


 GAAP Result 


 Share-based 


Amortization of acquired 


Gain on disposals


 Non-GAAP 



 Compensation 


  intangible assets 


 of subsidiaries 


 Result 











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)





















*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.

 

 

 

Reconciliations of GAAP and Non-GAAP Results

(All amounts in thousands, except per share information)














Year Ended December 31, 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

(210,214)


5,047


7,043


(64,951)


112,102


(150,973)













Net loss

(202,996)


5,047


7,043


(64,951)


112,102


(143,755)













Net loss attributable to ordinary shareholders

(193,382)


5,047


7,043


(64,951)


112,102


(134,141)














Year Ended December 31, 2021


 GAAP Result 


 Share-based 


Amortization of acquired 


Gain on disposals


Impairment


 Non-GAAP 



 Compensation 


  intangible assets 


 of subsidiaries 


 of goodwill 


 Result 













Loss from operations

(181,539)


9,132


9,625


-


-


(162,782)













Net loss

(128,468)


9,132


9,625


-


-


(109,711)













Net loss attributable to ordinary shareholders

(121,524)


9,132


9,625


-


-


(102,767)

























*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 Related Stocks: NASDAQ:TOUR

Related News

menu
menu