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Tuniu Announces Unaudited Fourth Quarter and Fiscal Year 2021 Financial Results

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Cision

NANJING, China, March 17, 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 fourth quarter and fiscal year ended December 31, 2021.

"In 2021, we continued to leverage integration and digitalization to upgrade Tuniu's operations," said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "We further strengthened our vertical integration across the industry chain, focusing on developing innovative high-quality products and services to drive our development. Despite the adverse external environment, we were encouraged that our self-operated local tour operators achieved double-digit growth in transaction volumes for the full year. Executing on our digitalization strategy, we also made achievements in reducing costs and improving efficiency. In 2021, our operating expenses decreased over 77% year-on-year and net loss for the year also narrowed significantly. In 2022, we will continue to strengthen our integration and digitalization to further improve our competitiveness and better prepare Tuniu for the opportunities and challenges brought by the changing external environment."

Fourth Quarter 2021 Results

Net revenues were RMB73.4 million (US$11.5 million[1]) in the fourth quarter of 2021, representing a year-over-year decrease of 38.2% 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 RMB42.8 million (US$6.7 million) in the fourth quarter of 2021, representing a year-over-year decrease of 48.6% from the corresponding period in 2020. The decrease was primarily due to the resurgence of COVID-19 in certain regions in China.

  • Other revenues were RMB30.6 million (US$4.8 million) in the fourth quarter of 2021, representing a year-over-year decrease of 13.8% from the corresponding period in 2020. The decrease was primarily due to the decline in commissions received from other travel-related products impacted by the resurgence of COVID-19.

[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.3726 on December 30, 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 RMB39.3 million (US$6.2 million) in the fourth quarter of 2021, representing a year-over-year decrease of 44.6% from the corresponding period in 2020. As a percentage of net revenues, cost of revenues was 53.5% in the fourth quarter of 2021, compared to 59.7% in the corresponding period in 2020.

Gross margin was 46.5% in the fourth quarter of 2021, compared to a gross margin of 40.3% in the fourth quarter of 2020.

Operating expenses were RMB78.0 million (US$12.2 million) in the fourth quarter of 2021, representing a year-over-year decrease of 91.9% 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 RMB3.3 million (US$0.5 million) in the fourth 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 RMB74.8 million (US$11.7 million) in the fourth quarter of 2021, representing a year-over-year decrease of 91.9%.

  • Research and product development expenses were RMB13.5 million (US$2.1 million) in the fourth quarter of 2021, representing a year-over-year increase of 5.2%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB0.7 million (US$0.1 million), were RMB12.8 million (US$2.0 million) in the fourth quarter of 2021, representing a year-over-year increase of 17.0% from the corresponding period in 2020. The increase was primarily due to the increase in research and product development personnel related expenses.

  • Sales and marketing expenses were RMB28.6 million (US$4.5 million) in the fourth quarter of 2021, representing a year-over-year decrease of 74.7%. 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 RMB27.4 million (US$4.3 million) in the fourth quarter of 2021, representing a year-over-year decrease of 69.0% from the corresponding period in 2020. The decrease was primarily due to the decrease in promotion expenses and amortization of acquired intangible assets.

  • General and administrative expenses were RMB46.5 million (US$7.3 million) in the fourth quarter of 2021, representing a year-over-year decrease of 94.5%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.4 million (US$0.2 million), were RMB45.1 million (US$7.1 million) in the fourth quarter of 2021, representing a year-over-year decrease of 94.6% from the corresponding period in 2020. The decrease was primarily due to the decrease in 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 RMB43.9 million (US$6.9 million) in the fourth quarter of 2021, compared to a loss from operations of RMB912.2 million in the fourth 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 RMB40.5 million (US$6.4 million) in the fourth quarter of 2021.

Net loss was RMB36.2 million (US$5.7 million) in the fourth quarter of 2021, compared to a net loss of RMB921.8 million in the fourth 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 RMB32.9 million (US$5.2 million) in the fourth quarter of 2021.

Net loss attributable to ordinary shareholders was RMB33.9 million (US$5.3 million) in the fourth quarter of 2021, compared to a net loss attributable to ordinary shareholders of RMB901.9 million in the fourth 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 RMB30.5 million (US$4.8 million) in the fourth quarter of 2021.

As of December 31, 2021, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.0 billion (US$158.7 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 2021 Results

Net revenues were RMB426.3 million (US$66.9 million) in 2021, representing a year-over-year decrease of 5.3% from 2020. The decrease was primarily due to the negative impact brought by the outbreak and spread of COVID-19.

  • Revenues from packaged tours were RMB305.3 million (US$47.9 million) in 2021, representing a year-over-year increase of 1.0% from 2020. The increase was primarily due to the growth in revenues from self-operated products offset by the negative impact brought by the resurgence of COVID-19.

  • Other revenues were RMB121.0 million (US$19.0 million) in 2021, representing a year-over-year decrease of 18.2% from 2020. The decrease was primarily due to the decline in revenues generated from financial services.

Cost of revenues was RMB254.8 million (US$40.0 million) in 2021, representing a year-over-year increase of 7.5% from 2020. As a percentage of net revenues, cost of revenues was 59.8% in 2021 compared to 52.7% in 2020.

Gross margin was 40.2% in 2021, compared to a gross margin of 47.3% in 2020.

Operating expenses were RMB353.1 million (US$55.4 million) in 2021, representing a year-over-year decrease of 77.3% from 2020. Share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, which were allocated to operating expenses, were RMB18.4 million (US$2.9 million) in 2021. Non-GAAP operating expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, were RMB334.7 million (US$52.5 million) in 2021, representing a year-over-year decrease of 76.9%.

  • Research and product development expenses were RMB54.6 million (US$8.6 million) in 2021, representing a year-over-year decrease of 45.7%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB3.4 million (US$0.5 million), were RMB51.2 million (US$8.0 million) in 2021, representing a year-over-year decrease of 44.9% from 2020. The decrease was primarily due to the decrease in research and product development personnel related expenses.

  • Sales and marketing expenses were RMB150.5 million (US$23.6 million) in 2021, representing a year-over-year decrease of 59.5%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets of RMB4.9 million (US$0.8 million), were RMB145.6 million (US$22.8 million) in 2021, representing a year-over-year decrease of 50.5% from 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 RMB174.0 million (US$27.3 million) in 2021, representing a year-over-year decrease of 84.3%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB10.0 million (US$1.6 million), were RMB164.0 million (US$25.7 million) in 2021, representing a year-over-year decrease of 85.0% from 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 RMB181.5 million (US$28.5 million) in 2021, compared to a loss from operations of RMB1.3 billion in 2020. Non-GAAP loss from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB162.8 million (US$25.5 million) in 2021.

Net loss was RMB128.5 million (US$20.2 million) in 2021, compared to a net loss of RMB1.3 billion in 2020. Non-GAAP net loss, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB109.7 million (US$17.2 million) in 2021.

Net loss attributable to ordinary shareholders was RMB121.5 million (US$19.1 million) in 2021, compared to a net loss attributable to ordinary shareholders of RMB1.3 billion in 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 RMB102.8 million (US$16.1 million) in 2021.

Business Outlook

Tuniu's business has been significantly and negatively impacted by the outbreak and spread of COVID-19 since January 2020. As a result of the continued influence by COVID-19, for the first quarter of 2022, the Company expects to generate RMB34.8 million to RMB42.5 million of net revenues, which represents 45% to 55% 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 am U.S. Eastern Time, on March 17, 2022, (8:00 pm, Beijing/Hong Kong Time, on March 17, 2022) to discuss the fourth quarter and fiscal year 2021 financial results.

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

US:

800-239-9838

Hong Kong:

800-961-105/+852-3008-1527

Mainland China:

4001-209101

International:

+1-323-794-2551

Conference ID:

Tuniu 4Q 2021 Earnings Call

A telephone replay will be available from 11:00 am on March 17, 2022 through 11:00 am on March 24, 2022, U.S. Eastern Time. The dial-in details are as follows:

US:

888-203-1112

Hong Kong:

+852-5808-3200

Mainland China:

400-120-1651

International:

+1-719-457-0820

Replay Access Code:

4136890

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, amortization of acquired intangible assets and impairment 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, amortization of acquired intangible assets and impairment of acquired intangible assets is that share-based compensation expenses, amortization of acquired intangible assets and impairment 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, 2020


December 31, 2021


December 31, 2021


RMB


RMB


US$







ASSETS






Current assets






Cash and cash equivalents

213,538


349,077


54,778

Restricted cash

50,566


46,521


7,300

Short-term investments

1,353,670


615,901


96,648

Accounts receivable, net

264,134


111,941


17,566

Amounts due from related parties

23,913


14,969


2,349

Prepayments and other current assets

378,704


337,033


52,888

Total current assets

2,284,525


1,475,442


231,529







Non-current assets






Long-term investments

266,866


201,947


31,690

Property and equipment, net

111,697


98,159


15,403

Intangible assets, net

71,362


55,376


8,690

Land use right, net

96,713


94,652


14,853

Operating lease right-of-use assets, net

42,293


48,115


7,550

Goodwill

232,007


232,007


36,407

Other non-current assets

91,180


92,111


14,454

Total non-current assets

912,118


822,367


129,047

Total assets

3,196,643


2,297,809


360,576







LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY






Current liabilities






Short-term borrowings

60,679


9,981


1,566

Accounts and notes payable

705,838


383,626


60,199

Amounts due to related parties

21,034


4,679


734

Salary and welfare payable

47,487


33,761


5,298

Taxes payable

6,004


8,004


1,256

Advances from customers

208,762


139,777


21,934

Operating lease liabilities, current

18,264


16,556


2,598

Accrued expenses and other current liabilities

676,501


382,629


60,043

Total current liabilities

1,744,569


979,013


153,628







Non-current liabilities






Operating lease liabilities, non-current

34,367


38,832


6,094

Deferred tax liabilities

14,861


12,479


1,958

Long-term borrowings

22,577


14,344


2,251

Other non-current liabilities

3,054


-


-

Total non-current liabilities

74,859


65,655


10,303

Total liabilities

1,819,428


1,044,668


163,931







Redeemable noncontrolling interests

27,200


27,200


4,268







Equity






Ordinary shares

249


249


39

Less: Treasury stock

(302,916)


(293,795)


(46,103)

Additional paid-in capital

9,125,689


9,125,748


1,432,029

Accumulated other comprehensive income

275,012


271,821


42,655

Accumulated deficit

(7,713,355)


(7,834,879)


(1,229,464)

Total Tuniu Corporation shareholders' equity

1,384,679


1,269,144


199,156

Noncontrolling interests

(34,664)


(43,203)


(6,779)

Total equity

1,350,015


1,225,941


192,377

Total liabilities, redeemable noncontrolling interests and equity

3,196,643


2,297,809


360,576

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, 2020


September 30, 2021


December 31, 2021


December 31, 2021


RMB


RMB


RMB


US$









Revenues








Packaged tours

83,143


90,709


42,761


6,710

Others

35,566


23,915


30,642


4,808

Net revenues

118,709


114,624


73,403


11,518

Cost of revenues

(70,841)


(74,884)


(39,250)


(6,159)

Gross profit

47,868


39,740


34,153


5,359









Operating expenses








Research and product development

(12,833)


(15,580)


(13,494)


(2,118)

Sales and marketing

(113,162)


(41,668)


(28,612)


(4,490)

General and administrative

(844,759)


(41,224)


(46,512)


(7,299)

Other operating income

10,698


2,106


10,571


1,659

Total operating expenses

(960,056)


(96,366)


(78,047)


(12,248)

Loss from operations

(912,188)


(56,626)


(43,894)


(6,889)

Other (expenses)/income








Interest and investment (loss)/income

(17,998)


19,492


6,171


968

Interest expense

(5,657)


(1,097)


(1,814)


(285)

Foreign exchange gains/(losses), net

11,002


(463)


4,453


699

Other (loss)/income, net

(914)


686


459


72

Loss before income tax expense

(925,755)


(38,008)


(34,625)


(5,435)

Income tax benefit/(expense)

3,853


568


(1,450)


(228)

Equity in income/(loss) of affiliates

124


861


(169)


(27)

Net loss

(921,778)


(36,579)


(36,244)


(5,690)

Net loss attributable to noncontrolling interests

(19,820)


(1,497)


(2,348)


(368)

Net income attributable to redeemable noncontrolling interests

(61)


-


-


-

Net loss attributable to Tuniu Corporation

(901,897)


(35,082)


(33,896)


(5,322)

Net loss attributable to ordinary shareholders

(901,897)


(35,082)


(33,896)


(5,322)









Net loss

(921,778)


(36,579)


(36,244)


(5,690)

Other comprehensive loss:








Foreign currency translation adjustment, net of nil tax

(14,599)


1,685


(4,134)


(649)

Comprehensive loss

(936,377)


(34,894)


(40,378)


(6,339)









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

(2.43)


(0.09)


(0.09)


(0.01)

Net loss per ADS - basic and diluted*

(7.29)


(0.27)


(0.27)


(0.03)









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

370,460,479


370,956,994


371,020,652


371,020,652









Share-based compensation expenses included are as follows:








Cost of revenues

551


214


78


12

Research and product development

1,094


359


136


21

Sales and marketing

615


332


129


20

General and administrative

8,562


2,475


770


121

Total

10,822


3,380


1,113


174









*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, 2020


December 31, 2021


December 31, 2021


RMB


RMB


US$







Revenues






Packaged tours

302,359


305,333


47,913

Others

147,900


121,015


18,990

Net revenues

450,259


426,348


66,903

Cost of revenues

(237,065)


(254,815)


(39,986)

Gross profit

213,194


171,533


26,917







Operating expenses






Research and product development

(100,514)


(54,622)


(8,571)

Sales and marketing

(371,984)


(150,493)


(23,616)

General and administrative

(1,109,340)


(174,021)


(27,308)

Other operating income

27,849


26,064


4,090

Total operating expenses

(1,553,989)


(353,072)


(55,405)

Loss from operations

(1,340,795)


(181,539)


(28,488)

Other income/(expenses)






Interest and investment income

3,526


50,041


7,853

Interest expense

(32,266)


(7,491)


(1,176)

Foreign exchange gains, net

18,720


7,030


1,103

Other (loss)/income, net

(253)


2,895


454

Loss before income tax expense

(1,351,068)


(129,064)


(20,254)

Income tax benefit/(expense)

6,641


(130)


(20)

Equity in income of affiliates

797


726


114

Net loss

(1,343,630)


(128,468)


(20,160)

Net loss attributable to noncontrolling interests

(35,674)


(6,944)


(1,090)

Net loss attributable to Tuniu Corporation

(1,307,956)


(121,524)


(19,070)

Net loss attributable to ordinary shareholders

(1,307,956)


(121,524)


(19,070)







Net loss

(1,343,630)


(128,468)


(20,160)

Other comprehensive loss:






Foreign currency translation adjustment, net of nil tax

(18,772)


(3,191)


(501)

Comprehensive loss

(1,362,402)


(131,659)


(20,661)







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

(3.53)


(0.33)


(0.05)

Net loss per ADS - basic and diluted*

(10.59)


(0.99)


(0.15)