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 November 2018

 

 

 

Commission File Number: 001-36430

 

 

 

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: November 27, 2018

 

 

 

 

EXHIBIT INDEX

 

Exhibit 99.1 – Press Release

 

 

 

Exhibit 99.1

 

 


 

Tuniu Announces Unaudited Third Quarter 2018 Financial Results

Non-GAAP1 Net Income in Q3 2018 Increased by 109.2% Year-Over-Year to RMB83.0 million

Added 251 Offline Retail Stores During 20182

 

 

NANJING, China, November 27, 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 third quarter ended September 30, 2018.

 

Highlights for the Third Quarter of 2018

 

·Non-GAAP income from operations was RMB51.4 million (US$7.5 million3) in the third quarter of 2018, compared to a Non-GAAP income from operations of RMB0.6 million in the third quarter of 2017.
·Net income was RMB28.0 million (US$4.1 million) in the third quarter of 2018, compared to a net loss of RMB27.0 million in the third quarter of 2017. Non-GAAP net income was RMB83.0 million (US$12.1 million) in the third quarter of 2018, representing a year-over-year increase of 109.2%.
·Operating expenses in the third quarter of 2018 decreased by 22.1% year-over-year to RMB395.1 million (US$57.5 million).
·As of October 31, 2018, Tuniu had 415 offline retail stores in total, of which 251 were newly added since January 1, 2018.
·As of November 27, 2018, Tuniu had 26 local tour operators in total, including 1 newly launched local tour operator overseas4 since July 31, 2018.

 

Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer, said, “During the third quarter, we have continued to improve our sales and service networks in order to maximize the customer’s experience. We have refined our sales network to further simplify our customers’ booking experience across each channel and further integrated our service network with our platform to insure our customers are served with higher quality products and services. Our direct procurement as a percentage of packaged tour GMV reached 60% in the third quarter. Going forward, we believe our dedication to improving the user experience will differentiate Tuniu from our peers and will serve as the driver of our growth in the future.”

 

Ms. Maria Yi Xin, Tuniu’s Chief Financial Officer, said, “We are excited to announce that Tuniu achieved profitability during the third quarter of 2018 both on a GAAP and non-GAAP basis. Additionally, we were able to generate positive cash flow during the first three quarters this year. We believe our ability to achieve profitability and maintain positive operating cash flow this quarter is a reflection of how our long-term strategies have positively reshaped our company’s financials. Our achievement this quarter is a significant step towards unlocking greater long-term value for 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 section below entitled “Highlights for the Third Quarter of 2018” provides additional information about some key financial figures and operating data.

 

3 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.8680 on September 28, 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.

 

4 The 1 newly launched local tour operator overseas is located in the Austria.

 

 

 

 

 

 

 

 

Third Quarter 2018 Results

 

Net revenues were RMB763.1 million (US$111.1 million) in the third quarter of 2018, representing a year-over-year decrease of 5.3% from the corresponding period in 2017.

 

·Revenues from packaged tours were RMB632.7 million (US$92.1 million) in the third quarter of 2018, representing a year-over-year increase of 4.7% from the corresponding period in 2017. The increase was primarily due to the growth of organized tours.

 

·Other revenues were RMB130.4 million (US$19.0 million) in the third quarter of 2018, representing a year-over-year decrease of 35.5% 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 RMB371.6 million (US$54.1 million) in the third quarter of 2018, representing a year-over-year increase of 1.8% from the corresponding period in 2017. As a percentage of net revenues, cost of revenues was 48.7% in the third quarter of 2018 compared to 45.3% in the corresponding period in 2017.

 

Gross profit was RMB391.5 million (US$57.0 million) in the third quarter of 2018, representing a year-over-year decrease of 11.2% from the corresponding period in 2017. The decrease was primarily due to the decrease in other revenues.

 

Operating expenses were RMB395.1 million (US$57.5 million) in the third quarter of 2018, representing a year-over-year decrease of 22.1% from the corresponding period in 2017. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB54.4 million (US$7.9 million) in the third quarter of 2018. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB340.7 million (US$49.6 million) in the third quarter of 2018, representing a year-over-year decrease of 22.7%.

 

·Research and product development expenses were RMB78.3 million (US$11.4 million) in the third quarter of 2018, representing a year-over-year decrease of 36.9%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB4.2 million (US$0.6 million), were RMB74.1 million (US$10.8 million) in the third quarter of 2018, representing a year-over-year decrease of 39.1% from the corresponding period in 2017. Research and product development expenses as a percentage of net revenues were 10.3% in the third quarter of 2018, decreasing from 15.4% 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 RMB209.6 million (US$30.5 million) in the third quarter of 2018, representing a year-over-year decrease of 6.8%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB34.7 million (US$5.1 million), were RMB174.8 million (US$25.5 million) in the third quarter of 2018, representing a year-over-year decrease of 8.0% from the corresponding period in 2017. Sales and marketing expenses as a percentage of net revenues were 27.5% in the third quarter of 2018, decreasing from 27.9% 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 RMB122.9 million (US$17.9 million) in the third quarter of 2018, representing a year-over-year decrease of 25.9%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB15.5 million (US$2.3 million), were RMB107.4 million (US$15.6 million) in the third quarter of 2018, representing a year-over-year decrease of 21.3% from the corresponding period in 2017. General and administrative expenses as a percentage of net revenues were 16.1% in the third quarter of 2018, decreasing from 20.6% 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 RMB3.6 million (US$0.5 million) in the third quarter of 2018, compared to a loss from operations of RMB66.0 million in the third quarter of 2017. Non-GAAP income from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB51.4 million (US$7.5 million) in the third quarter of 2018.

 

Net income was RMB28.0 million (US$4.1 million) in the third quarter of 2018, compared to a net loss of RMB27.0 million in the third quarter of 2017. Non-GAAP net income, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB83.0 million (US$12.1 million) in the third quarter of 2018.

 

Net income attributable to ordinary shareholders was RMB31.0 million (US$4.5 million) in the third quarter of 2018, compared to a net loss attributable to ordinary shareholders of RMB29.3 million in the third quarter of 2017. Non-GAAP net income attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB86.1 million (US$12.5 million) in the third quarter of 2018.

 

As of September 30, 2018, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.9 billion (US$271.0 million).

 

 

 

 

 

 

 

Business Outlook

 

For the fourth quarter of 2018, Tuniu expects to generate RMB422.9 million to RMB446.4 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 November 27, 2018, (9:00 pm, Beijing/Hong Kong Time, on November 27, 2018) to discuss the third 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 3Q 2018 Earnings Call

 

A telephone replay will be available one hour after the end of the conference through December 4, 2018. The dial-in details are as follows:

 

US: +1-877-344-7529
   
International: +1-412-317-0088
   
Replay Access Code: 10126389

 

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 2,200,000 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   September 30, 2018   September 30, 2018 
   RMB   RMB   US$ 
             
ASSETS               
Current assets               
Cash and cash equivalents   484,101    614,224    89,433 
Restricted cash   91,810    208,365    30,339 
Short-term investments   3,084,634    1,038,799    151,252 
Accounts receivable, net   286,627    508,841    74,089 
Amounts due from related parties   171,331    699,831    101,897 
Prepayments and other current assets   939,463    1,747,378    254,422 
Yield enhancement products and accrued interest   31,337    -    - 
Total current assets   5,089,303    4,817,438    701,432 
                
Non-current assets               
Long-term investments   484,991    1,330,386    193,708 
Property and equipment, net   148,278    172,767    25,155 
Intangible assets,net   460,634    353,982    51,541 
Goodwill   147,639    155,680    22,667 
Yield enhancement products over one year and accrued interest   170,505    -    - 
Other non-current assets   156,455    173,900    25,321 
Total non-current assets   1,568,502    2,186,715    318,392 
Total assets   6,657,805    7,004,153    1,019,824 
                
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities               
Accounts payable   852,500    1,630,842    237,455 
Amounts due to related parties   86,923    80,749    11,757 
Salary and welfare payable   187,561    110,551    16,097 
Taxes payable   32,036    15,535    2,262 
Advances from customers   1,210,615    1,079,211    157,136 
Accrued expenses and other current liabilities   373,690    560,254    81,574 
Amounts due to the individual investors of yield enhancement products   177,971    -    - 
Total current liabilities   2,921,296    3,477,142    506,281 
                
Non-current liabilities   42,481    46,796    6,814 
Total liabilities   2,963,777    3,523,938    513,095 
                
Mezzanine equity               
Redeemable noncontrolling interests   96,719    68,086    9,914 
                
Shareholders' equity               
Ordinary shares   248    248    36 
Less: Treasury stock   (185,419)   (299,209)   (43,566)
Additional paid-in capital   9,013,793    9,054,015    1,318,290 
Accumulated other comprehensive income   272,386    284,078    41,363 
Accumulated deficit   (5,505,897)   (5,629,830)   (819,720)
Total Tuniu's shareholders' equity   3,595,111    3,409,302    496,403 
Noncontrolling interests   2,198    2,827    412 
Total Shareholders' equity   3,597,309    3,412,129    496,815 
Total liabilities and shareholders' equity   6,657,805    7,004,153    1,019,824 

 

 

 

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income

(All amounts in thousands, except per share information)

 

   Quarter Ended   Quarter Ended   Quarter Ended   Quarter Ended 
   September 30, 2017   June 30, 2018   September 30, 2018   September 30, 2018 
   RMB   RMB   RMB   US$ 
                 
Revenues                    
Packaged tours   604,047    437,609    632,723    92,126 
Others   202,038    87,641    130,408    18,988 
Net revenues   806,085    525,250    763,131    111,114 
Cost of revenues   (365,206)   (274,475)   (371,622)   (54,109)
Gross profit   440,879    250,775    391,509    57,005 
                     
Operating expenses                    
Research and product development   (123,974)   (77,044)   (78,270)   (11,396)
Sales and marketing   (224,808)   (173,638)   (209,563)   (30,513)
General and administrative   (165,874)   (129,317)   (122,936)   (17,900)
Other operating income   7,757    8,078    15,656    2,280 
Total operating expenses   (506,899)   (371,921)   (395,113)   (57,529)
Loss from operations   (66,020)   (121,146)   (3,604)   (524)
Other income/(expenses)                    
Interest and investment income, net   39,864    44,592    38,167    5,557 
Foreign exchange gains/(losses), net   1,908    (6,633)   (9,030)   (1,315)
Other (loss)/income, net   (174)   (157)   1,293    188 
(Loss)/Income before income tax expense   (24,422)   (83,344)   26,826    3,906 
Income tax (expense)/benefit   (2,583)   524    1,126    164 
Net (loss)/income   (27,005)   (82,820)   27,952    4,070 
Net income/(loss) attributable to noncontrolling interests   609    (1,721)   (4,104)   (598)
Net income attributable to redeemable noncontrolling interests   514    255    831    121 
Net (loss)/income attributable to Tuniu Corporation   (28,128)   (81,354)   31,225    4,547 
(Accretion on)/Reversal of redeemable noncontrolling interest   (1,177)   1,733    (204)   (30)
Net (loss)/income attributable to ordinary shareholders   (29,305)   (79,621)   31,021    4,517 
                     
Net (loss)/income   (27,005)   (82,820)   27,952    4,070 
Other comprehensive (loss)/income:                    
Foreign currency translation adjustment, net of nil tax   (36,143)   23,802    16,342    2,379 
Comprehensive (loss)/income   (63,148)   (59,018)   44,294    6,449 
                     
(Loss)/Income per share                    
Basic   (0.08)   (0.21)   0.08    0.01 
Diluted   (0.08)   (0.21)   0.08    0.01 
                     
(Loss)/Income per ADS*                    
Basic   (0.24)   (0.63)   0.24    0.03 
Diluted   (0.24)   (0.63)   0.24    0.03 
                     
Weighted average number of ordinary shares used in computing basic (loss)/income per share   372,335,675    381,234,313    370,412,795    370,412,795 
Weighted average number of ordinary shares used in computing diluted (loss)/income per share   372,335,675    381,234,313    379,333,481    379,333,481 
                     
Share-based compensation expenses included are as follows:                    
Cost of revenues   228    250    614    89 
Research and product development   2,005    1,901    3,790    552 
Sales and marketing   545    231    556    81 
General and administrative   28,451    22,485    14,731    2,145 
Total   31,229    24,867    19,691    2,867 

 

*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 September 30, 2018 
   GAAP   Share-based   Amortization of acquired   Non-GAAP 
   Result   Compensation   intangible assets   Result 
                 
Cost of revenues   (371,622)   614    -    (371,008)
                     
Research and product development   (78,270)   3,790    399    (74,081)
Sales and marketing   (209,563)   556    34,163    (174,844)
General and administrative   (122,936)   14,731    781    (107,424)
Other operating income   15,656    -    -    15,656 
Total operating expenses   (395,113)   19,077    35,343    (340,693)
                     
(Loss)/Income from operations   (3,604)   19,691    35,343    51,430 
                     
Net income   27,952    19,691    35,343    82,986 
                     
Net income attributable to ordinary shareholders   31,021    19,691    35,343    86,055 
                     
Net income per ordinary share attributable to ordinary shareholders(RMB)                    
-Basic   0.08              0.23 
-Diluted   0.08              0.23 
Net income per ADS(RMB)                    
-Basic   0.24              0.69 
-Diluted   0.24              0.69 
Weighted average number of ordinary shares                    
-Basic   370,412,795              370,412,795 
-Diluted   379,333,481              379,333,481 

  

   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 share   381,234,313              381,234,313 

 

   Quarter Ended September 30, 2017 
   GAAP   Share-based   Amortization of acquired   Non-GAAP 
   Result   Compensation   intangible assets   Result 
                 
Cost of revenues   (365,206)   228    -    (364,978)
                     
Research and product development   (123,974)   2,005    399    (121,570)
Sales and marketing   (224,808)   545    34,163    (190,100)
General and administrative   (165,874)   28,451    876    (136,547)
Other operating income   7,757    -    -    7,757 
Total operating expenses   (506,899)   31,001    35,438    (440,460)
                     
(Loss)/Income from operations   (66,020)   31,229    35,438    647 
                     
Net (loss)/income   (27,005)   31,229    35,438    39,662 
                     
Net (loss)/income attributable to ordinary shareholders   (29,305)   31,229    35,438    37,362 
                     
Net (loss)/income per ordinary share attributable to ordinary shareholders(RMB)                    
-Basic   (0.08)             0.10 
-Diluted   (0.08)             0.10 
Net (loss)/income per ADS (RMB)                    
-Basic   (0.24)             0.30 
-Diluted   (0.24)             0.30 
Weighted average number of ordinary shares                    
-Basic   372,335,675              372,335,675 
-Diluted   372,335,675              380,259,980 

 

*Basic net income/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Diluted net income/(loss) per share is calculated by dividing net income/(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.