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Tuniu Corporation, a leading online leisure travel company in China, today announced its unaudited financial results for the third quarter ended September 30, 2019. Highlights for the Third Quarter of 2019 Revenues from packaged tours in the third quarter of 2019 increased by 18.1% year-over-year to RMB747.1 million (US4.5 million[1]) Non-GAAP net income was RMB39.0 million (US.5 million) in the third quarter of 2019. Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer, said, "We continue to revolve our strategies around the development of our S2B2C ecosystem. As consumer demand for higher-quality products shifts upwards in accordance with increasing purchasing power, it is crucial for Tuniu to increase our standards. Our emphasis on the continual improvement of our product, our service and our technology will be key to increasing user satisfaction rating, which in turn means higher repurchase rate and pricing power for Tuniu. We will leverage our established networks, consisting of both online and offline channels, to distribute Tuniu's high-quality products, namely Niu Tour and Tuniu Selection, to customers across China. By providing superior experiences to our customers, Tuniu will be able to stimulate repurchase rate and propel our growth into a stable upward trajectory." Ms. Maria Yi Xin, Tuniu's Chief Financial Officer, said, "During the quarter, growth of packaged tour revenues recovered to double digits. For the third consecutive year, we were able to achieve non-GAAP profitability during our peak season in the third quarter. Our direct-procurement products and local tour operators continue to make an increasingly significant financial contribution. Furthermore, Tuniu's commitment to automation has resulted in notable improvements to efficiency and expense control. Going forward, we expect the company to make meaningful steps toward unlocking more value for our customers and shareholders." Operating expenses were RMB437.3 million (US.2 million) in the third quarter of 2019, representing a year-over-year increase of 10.7% from the corresponding period in 2018. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB51.6 million (US.2 million) in the third quarter of 2019. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB385.7 million (US.0 million) in the third quarter of 2019, representing a year-over-year increase of 13.2%. Research and product development expenses were RMB64.3 million (US.0 million) in the third quarter of 2019, representing a year-over-year decrease of 17.8%. Sales and marketing expenses were RMB240.0 million (US.6 million) in the third quarter of 2019, representing a year-over-year increase of 14.5%. General and administrative expenses were RMB138.5 million (US.4 million) in the third quarter of 2019, representing a year-over-year increase of 12.6%. Loss from operations was RMB56.9 million (US.0 million) in the third quarter of 2019, compared to a loss from operations of RMB3.6 million in the third quarter of 2018. Net loss was RMB12.6 million (US.8 million) in the third quarter of 2019, compared to a net income of RMB28.0 million in the third quarter of 2018. Net loss attributable to ordinary shareholders was RMB13.5 million (US.9 million) in the third quarter of 2019, compared to a net income attributable to ordinary shareholders of RMB31.0 million in the third quarter of 2018. As of September 30, 2019, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB2.2 billion (US5.7 million). Business Outlook For the fourth quarter of 2019, Tuniu expects to generate RMB438.2 million to RMB461.8 million of net revenues, which represents 2% to 7% decrease year-over-year. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change. Read Original Report
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