UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2018

 

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Commission File Number: 001-36430

 

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Tuniu Corporation

 

Tuniu Building, No. 699-32

Xuanwudadao, Xuanwu District

Nanjing, Jiangsu Province 210042

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x           Form 40-F ¨

 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):________________

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):________________

  

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

Tuniu Corporation

   
  By:

/s/ Maria Yi Xin

  Name:  Maria Yi Xin
  Title: Chief Financial Officer

  

Date: August 29, 2018

 

 

 

 

EXHIBIT INDEX

 

Exhibit 99.1 – Press Release

 

 

 

Exhibit 99.1

 

Tuniu Announces Unaudited Second Quarter 2018 Financial Results

 

Revenues from Packaged Tours in Q2 2018 Increased by 29.0% Year-Over-Year

Non-GAAP1 Net Loss in Q2 2018 Decreased by 89.4% Year-Over-Year

 

NANJING, China, August 29, 2018 -- 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, 2018.

 

Highlights for the Second Quarter of 2018

 

·Revenues from package tours in the second quarter of 2018 increased by 29.0% year-over-year to RMB437.6 million (US$66.1 million2).
·Operating expenses in the second quarter of 2018 decreased by 29.7% year-over-year to RMB371.9 million (US$56.2 million).
·Non-GAAP net loss was RMB22.6 million (US$3.4 million) in the second quarter of 2018, compared to a Non-GAAP net loss of RMB212.6 million in the second quarter of 2017.
·As of August 28, 2018, Tuniu had 308 offline retail stores in total.
·As of July 31, 2018, Tuniu had 25 local tour operators in total, including 3 newly launched local tour operators in China and 1 newly launched local tour operator overseas3 since April 30, 2018.

 

Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer, said, “Tuniu continues to make improvements to its operations in order to create a company that is able to effectively capture the future of China’s leisure travel industry. With our company value of ‘customers first’ in mind, we continue to innovate technology and create products catered to our customer’s demand. During the quarter we continued to make strong strides in the development of our sales and service networks. Our sales network continues to help Tuniu expand the reach of our products to a greater audience while our service network allows us better serve our customers. Despite all the external factors affecting our operations today, we believe the long-term outlook of China’s leisure travel market remains positive.”

 

Ms. Maria Yi Xin, Tuniu’s Chief Financial Officer, said, “During the second quarter, we were able to continue narrowing our losses and achieve positive operating cash flow. Our core strategies of expanding our service and sales network are starting to translate into financial results as their contribution to our revenue starts to become increasingly meaningful. Going forward this year, we will continue to invest in the development of our sales and service network in order achieve higher economy of scale, and to maximize value for both our customers and our shareholders.”

 

 

 

1 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.

 

2 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.6171 on June 29, 2018 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.

 

3 The 3 newly launched local tour operators in China are located in Tai’an, Qingdao and Qinhuangdao. The 1 newly launched local tour operator overseas is located in the U.S.

 

 

 

 

Second Quarter 2018 Results

 

Net revenues were RMB525.3 million (US$79.4 million) in the second quarter of 2018, representing a year-over-year increase of 14.2% from the corresponding period in 2017.

 

·Revenues from packaged tours were RMB437.6 million (US$66.1 million) in the second quarter of 2018, representing a year-over-year increase of 29.0% from the corresponding period in 2017. The increase was primarily due to the growth of organized tours.

 

·Other revenues were RMB87.6 million (US$13.2 million) in the second quarter of 2018, representing a year-over-year decrease of 27.4% from the corresponding period in 2017. The decrease was primarily due to the decline in revenues generated from financial services and service fees received from insurance companies.

 

Cost of revenues was RMB274.5 million (US$41.5 million) in the second quarter of 2018, representing a year-over-year increase of 25.0% from the corresponding period in 2017. As a percentage of net revenues, cost of revenues was 52.3% in the second quarter of 2018 compared to 47.7% in the corresponding period in 2017.

 

Gross profit was RMB250.8 million (US$37.9 million) in the second quarter of 2018, representing a year-over-year increase of 4.2% from the corresponding period in 2017. The increase was primarily due to the increase in efficiency resulting from economies of scale.

 

Operating expenses were RMB371.9 million (US$56.2 million) in the second quarter of 2018, representing a year-over-year decrease of 29.7% from the corresponding period in 2017. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB60.0 million (US$9.1 million) in the second quarter of 2018. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB312.0 million (US$47.1 million) in the second quarter of 2018, representing a year-over-year decrease of 33.8%.

 

·Research and product development expenses were RMB77.0 million (US$11.6 million) in the second quarter of 2018, representing a year-over-year decrease of 47.4%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB2.3 million (US$0.3 million), were RMB74.7 million (US$11.3 million) in the second quarter of 2018, representing a year-over-year decrease of 48.3% from the corresponding period in 2017. Research and product development expenses as a percentage of net revenues were 14.7% in the second quarter of 2018, decreasing from 31.9% in the corresponding period in 2017. The decrease was primarily due to the increase in efficiency resulting from economies of scale and refined management, and optimization of research and product development personnel.

 

 

 

 

·Sales and marketing expenses were RMB173.6 million (US$26.2 million) in the second quarter of 2018, representing a year-over-year decrease of 21.7%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB34.4 million (US$5.2 million), were RMB139.2 million (US$21.0 million) in the second quarter of 2018, representing a year-over-year decrease of 25.7% from the corresponding period in 2017. Sales and marketing expenses as a percentage of net revenues were 33.1% in the second quarter of 2018, decreasing from 48.2% in the corresponding period in 2017. The decrease was primarily due to the optimization of promotional expense structure and preference for marketing channels with higher ROI.

 

·General and administrative expenses were RMB129.3 million (US$19.5 million) in the second quarter of 2018, representing a year-over-year decrease of 22.1%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB23.3 million (US$3.5 million), were RMB106.1 million (US$16.0 million) in the second quarter of 2018, representing a year-over-year decrease of 26.8% from the corresponding period in 2017. General and administrative expenses as a percentage of net revenues were 24.6% in the second quarter of 2018, decreasing from 36.1% in the corresponding period in 2017. The decrease was primarily due to the increase in operating efficiency resulting from economies of scale and refined management.

 

Loss from operations was RMB121.1million (US$18.3 million) in the second quarter of 2018, compared to a loss from operations of RMB288.6 million in the second quarter of 2017. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB60.9 million (US$9.2 million) in the second quarter of 2018.

 

Net loss was RMB82.8 million (US$12.5 million) in the second quarter of 2018, compared to a net loss of RMB270.8 million in the second quarter of 2017. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB22.6 million (US$3.4 million) in the second quarter of 2018.

 

Net loss attributable to ordinary shareholders was RMB79.6 million (US$12.0 million) in the second quarter of 2018, compared to a net loss attributable to ordinary shareholders of RMB270.6 million in the second quarter of 2017. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB19.4 million (US$2.9 million) in the second quarter of 2018.

 

As of June 30, 2018, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.9 billion (US$288.2 million).

 

 

 

 

Business Outlook

 

For the third quarter of 2018, Tuniu expects to generate RMB725.5 million to RMB765.8 million of net revenues, which represents 5% to 10% 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 August 29, 2018, (8:00 pm, Beijing/Hong Kong Time, on August 29, 2018) to discuss the second quarter 2018 financial results.

 

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

 

US: +1-888-346-8982
Hong Kong: +852-301-84992
China: 4001-201203
International: +1-412-902-4272

 

Conference ID: Tuniu 2Q 2018 Earnings Call

 

A telephone replay will be available one hour after the end of the conference through September 6, 2018. The dial-in details are as follows:

 

US: +1-877-344-7529
International: +1-412-317-0088

 

Replay Access Code: 10123461

 

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 has over 2,000,000 stock keeping units (SKUs) of packaged tours, covering 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. 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; 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, 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, which excludes share-based compensation expenses and amortization 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 and amortization of acquired intangible assets is that share-based compensation expenses and amortization 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.

 

For investor and media inquiries, please contact:

 

China

 

Mary Chen

 

Investor Relations Director

 

Tuniu Corporation

 

Phone: +86-25-6960-9988

 

E-mail: ir@tuniu.com

 

 

(Financial Tables Follow)

 

 

 

 

Tuniu Corporation
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except per share information)

 

   December 31, 2017   June 30, 2018   June 30, 2018 
   RMB   RMB   US$ 
             
ASSETS               
Current assets               
Cash and cash equivalents   484,101    642,034    97,026 
Restricted cash   91,810    170,130    25,711 
Short-term investments   3,084,634    1,094,607    165,421 
Accounts receivable, net   286,627    425,842    64,355 
Amounts due from related parties   171,331    619,658    93,645 
Prepayments and other current assets   939,463    1,643,899    248,433 
Yield enhancement products and accrued interest   31,337    -    - 
Total current assets   5,089,303    4,596,170    694,591 
                
Non-current assets               
Long term investment   484,991    1,326,268    200,430 
Property and equipment, net   148,278    158,894    24,013 
Intangible assets,net   460,634    389,569    58,873 
Goodwill   147,639    147,639    22,312 
Yield enhancement products over one year and accrued interest   170,505    -    - 
Other non-current assets   156,455    179,483    27,123 
Total non-current assets   1,568,502    2,201,853    332,751 
Total assets   6,657,805    6,798,023    1,027,342 
                
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities               
Accounts payable   852,500    1,306,632    197,463 
Amounts due to related parties   86,923    107,900    16,306 
Salary and welfare payable   187,561    108,928    16,462 
Taxes payable   32,036    13,904    2,101 
Advances from customers   1,210,615    1,395,309    210,864 
Accrued expenses and other current liabilities   373,690    408,541    61,740 
Amounts due to the individual investors of yield enhancement products   177,971    -    - 
Total current liabilities   2,921,296    3,341,214    504,936 
                
Non-current liabilities   42,481    43,965    6,644 
Total liabilities   2,963,777    3,385,179    511,580 
                
Mezzanine equity               
Redeemable noncontrolling interests   96,719    67,050    10,133 
                
Shareholders' equity               
Ordinary shares   248    249    38 
Less: Treasury stock   (185,419)   (301,374)   (45,545)
Additional paid-in capital   9,013,793    9,036,561    1,365,638 
Accumulated other comprehensive income   272,386    267,736    40,461 
Accumulated deficit   (5,505,897)   (5,661,055)   (855,519)
Total Tuniu's shareholders' equity   3,595,111    3,342,117    505,073 
Noncontrolling interests   2,198    3,677    556 
Total Shareholders' equity   3,597,309    3,345,794    505,629 
Total liabilities and shareholders' equity   6,657,805    6,798,023    1,027,342 

 

 

 

 

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 
   June 30, 2017   March 31, 2018   June 30, 2018   June 30, 2018 
   RMB   RMB   RMB   US$ 
                 
Revenues                    
Packaged tours   339,304    402,679    437,609    66,133 
Others   120,784    77,854    87,641    13,245 
Net revenues   460,088    480,533    525,250    79,378 
Cost of revenues   (219,530)   (217,907)   (274,475)   (41,480)
Gross profit   240,558    262,626    250,775    37,898 
                     
Operating expenses                    
Research and product development   (146,598)   (84,054)   (77,044)   (11,643)
Sales and marketing   (221,888)   (185,831)   (173,638)   (26,241)
General and administrative   (166,098)   (114,609)   (129,317)   (19,543)
Other operating income   5,421    735    8,078    1,221 
Total operating expenses   (529,163)   (383,759)   (371,921)   (56,206)
Loss from operations   (288,605)   (121,133)   (121,146)   (18,308)
Other income/(expenses)                    
Interest income   23,006    39,474    44,592    6,739 
Foreign exchange gains/(losses), net   (923)   5,977    (6,633)   (1,002)
Other income/(loss), net   (229)   7,945    (157)   (24)
Loss before income tax expense   (266,751)   (67,737)   (83,344)   (12,595)
Income tax benefit/(expense)   (4,067)   (3,828)   524    79 
Net loss   (270,818)   (71,565)   (82,820)   (12,516)
Net income/(loss) attributable to noncontrolling interests   (1,853)   1,299    (1,721)   (260)
Net income attributable to redeemable noncontrolling interests   226    940    255    39 
Net loss attributable to Tuniu Corporation   (269,191)   (73,804)   (81,354)   (12,295)
Reversal of/(Accretion on) redeemable noncontrolling interest   (1,435)   (869)   1,733    262 
Net loss attributable to ordinary shareholders   (270,626)   (74,673)   (79,621)   (12,033)
                     
Net loss   (270,818)   (71,565)   (82,820)   (12,516)
Other comprehensive loss:                    
Foreign currency translation adjustment, net of nil tax   (48,436)   (28,452)   23,802    3,597 
Comprehensive loss   (319,254)   (100,017)   (59,018)   (8,919)
                     
Loss per share                    
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.72)   (0.19)   (0.21)   (0.03)
Net loss per ADS - basic and diluted*   (2.16)   (0.57)   (0.63)   (0.09)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   374,426,600    388,843,912    381,234,313    381,234,313 
                     
Share-based compensation expenses included are as follows:                    
Cost of revenues   296    227    250    38 
Research and product development   1,752    1,260    1,901    287 
Sales and marketing   427    185    231    35 
General and administrative   20,407    10,709    22,485    3,398 
Total   22,882    12,381    24,867    3,758 
                     

 

*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 June 30, 2018 
   GAAP    Share-based   Amortization of acquired   Non-GAAP 
   Result   Compensation   intangible assets   Result 
                 
Cost of revenues   (274,475)   250    -    (274,225)
                     
Research and product development   (77,044)   1,901    399    (74,744)
Sales and marketing   (173,638)   231    34,163    (139,244)
General and administrative   (129,317)   22,485    781    (106,051)
Other operating income   8,078    -    -    8,078 
Total operating expenses   (371,921)   24,617    35,343    (311,961)
                     
Loss from operations   (121,146)   24,867    35,343    (60,936)
                     
Net loss   (82,820)   24,867    35,343    (22,610)
                     
Net loss attributable to ordinary shareholders   (79,621)   24,867    35,343    (19,411)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted (RMB)   (0.21)             (0.05)
Net loss per ADS - basic and diluted (RMB)   (0.63)             (0.15)
Weighted average number of ordinary shares used in computing basic and diluted loss per   381,234,313              381,234,313 

 

   Quarter Ended March 31, 2018 
   GAAP    Share-based   Amortization of acquired   Non-GAAP 
   Result   Compensation   intangible assets   Result 
                 
Cost of revenues   (217,907)   227    -    (217,680)
                     
Research and product development   (84,054)   1,260    399    (82,395)
Sales and marketing   (185,831)   185    34,163    (151,483)
General and administrative   (114,609)   10,709    781    (103,119)
Other operating income   735    -    -    735 
Total operating expenses   (383,759)   12,154    35,343    (336,262)
                     
Loss from operations   (121,133)   12,381    35,343    (73,409)
                     
Net loss   (71,565)   12,381    35,343    (23,841)
                     
Net loss attributable to ordinary shareholders   (74,673)   12,381    35,343    (26,949)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted (RMB)   (0.19)             (0.07)
Net loss per ADS - basic and diluted (RMB)   (0.57)             (0.21)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   388,843,912              388,843,912 

  

   Quarter Ended June 30, 2017 
   GAAP    Share-based   Amortization of acquired   Non-GAAP 
   Result   Compensation   intangible assets   Result 
                 
Cost of revenues   (219,530)   296    -    (219,234)
                     
Research and product development   (146,598)   1,752    399    (144,447)
Sales and marketing   (221,888)   427    34,163    (187,298)
General and administrative   (166,098)   20,407    793    (144,898)
Other operating income   5,421    -    -    5,421 
Total operating expenses   (529,163)   22,586    35,355    (471,222)
                     
Loss from operations   (288,605)   22,882    35,355    (230,368)
                     
Net loss   (270,818)   22,882    35,355    (212,581)
                     
Net loss attributable to ordinary shareholders   (270,626)   22,882    35,355    (212,389)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted (RMB)   (0.72)             (0.57)
Net loss per ADS - basic and diluted (RMB)   (2.16)             (1.71)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   374,426,600              374,426,600