Tuniu Announces Unaudited Second Quarter 2024 Financial Results Form 6 K

Tuniu Announces Unaudited Second Quarter 2024 Financial Results

NANJING, China, August 6, 2024 - 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, 2024.

Highlights for the Second Quarter of 2024

·	Revenues from package tours in the second quarter of 2024 increased by 28.6% year-over-year to RMB89.8 million (US$12.4 million1).

·	Gross profit in the second quarter of 2024 increased by 29.1% year-over-year to RMB84.4 million (US$11.6 million).

·	Income from operations was RMB34.5 million (US$4.7 million) in the second quarter of 2024, compared to an income from operations of RMB6.8 million in the second quarter of 2023.

·	Net income was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income of RMB0.2 million in the second quarter of 2023.

"Tuniu continued to demonstrate steady growth in the second quarter of 2024, with revenues from packaged tours, our core business, increasing by 28.6% year-over-year." said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "We also saw further improvement in our profitability with net income reaching a quarterly record high since our listing. This quarter, we continued to focus on our core business and products, further enhancing product quality and offerings in order to provide better services and travel experience for our customers. We also continued to adapt to changes in user shopping habits by strengthening our new media operations, in order to attract new customers through multiple channels to drive business growth. With the arrival of the summer season, Tuniu is well prepared to meet the opportunities and challenges ahead of us as we look forward to delivering strong value for our shareholders going forward."

Second Quarter 2024 Results

Net revenues were RMB116.9 million (US$16.1 million) in the second quarter of 2024, representing a year-over-year increase of 17.0% from the corresponding period in 2023.

·	Revenues from packaged tours were RMB89.8 million (US$12.4 million) in the second quarter of 2024, representing a year-over-year increase of 28.6% from the corresponding period in 2023. The increase was primarily due to the growth of organized tours.

·

Other revenues were RMB27.2 million (US$3.7 million) in the second quarter of 2024, representing a year-over-year decrease of 10.0% from the corresponding period in 2023. The decrease was primarily due to the decrease in commission fees received from other travel-related products and 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 7.2672 on June 28, 2024 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 RMB32.5 million (US$4.5 million) in the second quarter of 2024, representing a year-over-year decrease of 5.8% from the corresponding period in 2023. As a percentage of net revenues, cost of revenues was 27.8% in the second quarter of 2024, compared to 34.6% in the corresponding period in 2023.

Gross profit was RMB84.4 million (US$11.6 million) in the second quarter of 2024, representing a year-over-year increase of 29.1% from the corresponding period in 2023.

Operating expenses were RMB49.9 million (US$6.9 million) in the second quarter of 2024, representing a year-over-year decrease of 14.9% from the corresponding period in 2023. Net gain on disposals of subsidiaries which was allocated to operating expenses, was RMB24.6 million (US$3.4 million) in the second quarter of 2024.

·

Research and product development expenses were RMB12.7 million (US$1.7 million) in the second quarter of 2024, representing a year-over-year decrease of 8.2%. The decrease was primarily due to the decrease in research and product development personnel related expenses. Research and product development expenses as a percentage of net revenues were 10.9% in the second quarter of 2024, decreasing from 13.8% as a percentage of net revenues in the corresponding period in 2023.

·

Sales and marketing expenses were RMB40.2 million (US$5.5 million) in the second quarter of 2024, representing a year-over-year increase of 61.5%. The increase was primarily due to the increase in promotion expenses and sales and marketing personnel related expenses. Sales and marketing expenses as a percentage of net revenues were 34.4% in the second quarter of 2024, increasing from 24.9% as a percentage of net revenues in the corresponding period in 2023.

·

General and administrative expenses were RMB21.7 million (US$3.0 million) in the second quarter of 2024, which was in line with general and administrative expenses in the second quarter of 2023. General and administrative expenses as a percentage of net revenues were 18.6% in the second quarter of 2024, decreasing from 21.8% as a percentage of net revenues in the corresponding period in 2023.

Income from operations was RMB34.5 million (US$4.7 million) in the second quarter of 2024, compared to an income from operations of RMB6.8 million in the second quarter of 2023. Non-GAAP² income from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB12.3 million (US$1.7 million) in the second quarter of 2024.

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.

Net income was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income of RMB0.2 million in the second quarter of 2023. Non-GAAP net income, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB20.8 million (US$2.9 million) in the second quarter of 2024.

Net income attributable to ordinary shareholders of Tuniu Corporation was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income attributable to ordinary shareholders of Tuniu Corporation of RMB0.7 million in the second quarter of 2023. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB20.8 million (US$2.9 million) in the second quarter of 2024.

As of June 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.3 billion (US$176.0 million).

Business Outlook

For the third quarter of 2024, Tuniu expects to generate RMB183.5 million to RMB192.4 million of net revenues, which represents a 3% to 8% increase year-over-year compared with net revenues in the corresponding period in 2023. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.

Share Repurchase Update

In March 2024, the Company's Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$10 million worth of its ordinary shares or American depositary shares representing ordinary shares. As of July 31, 2024, the Company had repurchased an aggregate of approximately 4.6 million ADSs for approximately US$4.1 million from the open market under the share repurchase program.

Conference Call Information

Tuniu's management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on August 6, 2024, (8:00 pm, Beijing/Hong Kong Time, on August 6, 2024) to discuss the second quarter 2024 financial results.

To participate in the conference call, please dial the following numbers:

	United States	1-888-346-8982
	Hong Kong	852-301-84992
	Mainland China	4001-201203
	International	1-412-902-4272

Conference ID: Tuniu 2Q 2024 Earnings Conference Call

A telephone replay will be available one hour after the end of the conference call through August 13, 2024. The dial-in details are as follows:

	United States	1-877-344-7529
	International	1-412-317-0088

Replay Access Code: 9667429

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; Tuniu'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; government policies and regulations relating to Tuniu's structure, business and industry; the impact of health epidemics 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 from operations, net income, net income attributable to ordinary shareholders of Tuniu Corporation, which excludes share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries. 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.

For investor and media inquiries, please contact:

China

Mary Chen

Investor Relations Director

Tuniu Corporation

Phone: +86-25-6960-9988

E-mail: [email protected]

(Financial Tables Follow)

Tuniu Corporation

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands)

		December 31, 2023			June 30, 2024			June 30, 2024
		RMB			RMB			US$
ASSETS
Current assets
Cash and cash equivalents			378,989				652,819				89,831
Restricted cash			65,902				26,675				3,671
Short-term investments			777,890				599,682				82,519
Accounts receivable, net			41,633				54,863				7,549
Amounts due from related parties			9,515				503				69
Prepayments and other current assets			234,189				210,642				28,985
Total current assets			1,508,118				1,545,184				212,624
Non-current assets
Long-term investments			209,819				210,312				28,940
Property and equipment, net			57,479				54,567				7,509
Intangible assets, net			26,091				23,513				3,235
Land use right, net			90,529				89,498				12,315
Operating lease right-of-use assets, net			12,484				10,801				1,486
Other non-current assets			55,960				47,863				6,586
Total non-current assets			452,362				436,554				60,071
Total assets			1,960,480				1,981,738				272,695
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities
Short-term borrowings			7,277				36				5
Accounts and notes payable			317,104				366,052				50,370
Amounts due to related parties			6,405				8,724				1,200
Salary and welfare payable			21,401				19,750				2,718
Taxes payable			4,305				2,286				315
Advances from customers			270,197				223,609				30,770
Operating lease liabilities, current			2,709				3,297				454
Accrued expenses and other current liabilities			329,481				316,711				43,580
Total current liabilities			958,879				940,465				129,412
Non-current liabilities
Operating lease liabilities, non-current			5,348				3,556				489
Deferred tax liabilities			6,027				5,524				760
Long-term borrowings			10,395				-				-
Total non-current liabilities			21,770				9,080				1,249
Total liabilities			980,649				949,545				130,661
Redeemable noncontrolling interests			27,200				27,200				3,743
Equity
Ordinary shares			249				249				34
Less: Treasury stock			(285,983	)			(311,052	)			(42,802	)
Additional paid-in capital			9,138,720				9,144,917				1,258,382
Accumulated other comprehensive income			305,416				311,751				42,898
Accumulated deficit			(8,127,552	)			(8,070,619	)			(1,110,554	)
Total Tuniu Corporation shareholders' equity			1,030,850				1,075,246				147,958
Noncontrolling interests			(78,219	)			(70,253	)			(9,667	)
Total equity			952,631				1,004,993				138,291
Total liabilities, redeemable noncontrolling interests and equity			1,960,480				1,981,738				272,695

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Income

(All amounts in thousands, except per share information)

		Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended
		June 30, 2023			March 31, 2024			June 30, 2024			June 30, 2024
		RMB			RMB			RMB			US$
Revenues
Packaged tours			69,793				82,951				89,782				12,354
Others			30,159				25,007				27,155				3,737
Net revenues			99,952				107,958				116,937				16,091
Cost of revenues			(34,547	)			(25,913	)			(32,530	)			(4,476	)
Gross profit			65,405				82,045				84,407				11,615
Operating expenses
Research and product development			(13,820	)			(13,024	)			(12,693	)			(1,747	)
Sales and marketing			(24,906	)			(36,824	)			(40,222	)			(5,535	)
General and administrative			(21,741	)			(20,479	)			(21,737	)			(2,991	)
Other operating income			1,841				582				24,735				3,404
Total operating expenses			(58,626	)			(69,745	)			(49,917	)			(6,869	)
Income from operations			6,779				12,300				34,490				4,746
Other income/(expenses)
Interest and investment income, net			7,122				10,041				8,221				1,131
Interest expense			(218	)			(613	)			(1,230	)			(169	)
Foreign exchange losses, net			(15,152	)			(568	)			(1,282	)			(176	)
Other income, net			1,820				1,279				1,822				251
Income before income tax expense			351				22,439				42,021				5,783
Income tax (loss)/benefit			(783	)			64				(459	)			(63	)
Equity in income/(loss) of affiliates			653				(604	)			1,438				198
Net income			221				21,899				43,000				5,918
Net (loss)/income attributable to noncontrolling interests			(437	)			7,988				(22	)			(3	)
Net income attributable to ordinary shareholders of Tuniu Corporation			658				13,911				43,022				5,921
Net income			221				21,899				43,000				5,918
Other comprehensive income:
Foreign currency translation adjustment, net of nil tax			17,736				2,034				4,301				592
Comprehensive income			17,957				23,933				47,301				6,510
Net income per ordinary share attributable to ordinary shareholders - basic and diluted			0.00				0.04				0.12				0.02
Net income per ADS - basic and diluted*			0.00				0.12				0.36				0.06
Weighted average number of ordinary shares used in computing basic income per share			371,418,638				371,473,623				363,061,543				363,061,543
Weighted average number of ordinary shares used in computing diluted income per share			376,427,714				373,323,330				365,317,172				365,317,172
Share-based compensation expenses included are as follows：
Cost of revenues			54				65				65				9
Research and product development			54				65				65				9
Sales and marketing			28				31				31				4
General and administrative			4,383				4,830				1,429				197
Total			4,519				4,991				1,590				219

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

Tuniu Corporation

Reconciliations of GAAP and Non-GAAP Results

(All amounts in thousands)

		Quarter Ended June 30, 2024
		GAAP Result			Share-based Compensation			Amortization of acquired intangible assets			Net gain on disposals of subsidiaries			Non-GAAP Result
Income from operations			34,490				1,590				828				(24,618	)			12,290
Net income			43,000				1,590				828				(24,618	)			20,800
Net income attributable to ordinary shareholders			43,022				1,590				828				(24,618	)			20,822

		Quarter Ended March 31, 2024
		GAAP Result			Share-based Compensation			Amortization of acquired intangible assets			Net gain on disposals of subsidiaries			Non-GAAP Result
Income from operations			12,300				4,991				828				-				18,119
Net income			21,899				4,991				828				-				27,718
Net income attributable to ordinary shareholders			13,911				4,991				828				-				19,730

		Quarter Ended June 30, 2023
		GAAP Result			Share-based Compensation			Amortization of acquired intangible assets			Net gain on disposals of subsidiaries			Non-GAAP 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			658				4,519				828				-				6,005

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