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 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2019

  

 

 

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: August 28, 2019

 

 

 

 

EXHIBIT INDEX

 

Exhibit 99.1 – Press Release

 

 

Exhibit 99.1

 

Tuniu Announces Unaudited Second Quarter 2019 Financial Results

 

 

NANJING, China, August 28, 2019 -- 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, 2019.

 

Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer, said, “During the quarter, we remain focused on improving our products, strengthening our supply chain and expanding our distribution channels. By newly launching innovative travel products while upgrading our existing selection, we are able to capture the diversified demands of Chinese travelers. Together with the utilization of centralized procurements across the company and development of our local tour operator service network, we will be able to improve our monetization capability.”

 

Ms. Maria Yi Xin, Tuniu’s Chief Financial Officer, said, “Our offline retail stores, social e-commerce, and S2B2C distribution continue to diversify our sales channel, making Tuniu’s high quality products and services accessible to more customers across China. We expect these channels to make more meaningful contributions to our financials going forward. We will also increase the level of automation in order to improve the efficiency of our employees and the overall company.”

 

Second Quarter 2019 Results

 

Net revenues were RMB520.3 million (US$75.81 million) in the second quarter of 2019, representing a year-over-year decrease of 0.9% from the corresponding period in 2018.

 

·Revenues from packaged tours were RMB429.5 million (US$62.6 million) in the second quarter of 2019, representing a year-over-year decrease of 1.9% from the corresponding period in 2018. The decrease was primarily due to the decline in demand for travel to certain destinations.

 

·Other revenues were RMB90.8 million (US$13.2 million) in the second quarter of 2019, representing a year-over-year increase of 3.7% from the corresponding period in 2018. The increase was primarily due to a rise in commission fees received from certain travel-related products.

 

Cost of revenues was RMB287.3 million (US$41.9 million) in the second quarter of 2019, representing a year-over-year increase of 4.7% from the corresponding period in 2018. As a percentage of net revenues, cost of revenues was 55.2% in the second quarter of 2019 compared to 52.3% in the corresponding period in 2018.

 

Gross profit was RMB233.0 million (US$33.9 million) in the second quarter of 2019, representing a year-over-year decrease of 7.1% from the corresponding period in 2018.

 

 

1 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.8650 on June 28, 2019 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.

 

 

 

  

Operating expenses were RMB432.2 million (US$63.0 million) in the second quarter of 2019, representing a year-over-year increase of 16.2% from the corresponding period in 2018. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB49.7 million (US$7.2 million) in the second quarter of 2019. Non-GAAP2 operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB382.5 million (US$55.7 million) in the second quarter of 2019, representing a year-over-year increase of 22.6%.

 

·Research and product development expenses were RMB80.2 million (US$11.7 million) in the second quarter of 2019, representing a year-over-year increase of 4.1%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB4.6 million (US$0.7 million), were RMB75.6 million (US$11.0 million) in the second quarter of 2019, representing a year-over-year increase of 1.1% from the corresponding period in 2018. The increase was primarily due to an increase in research and product development personnel related expenses.

 

·Sales and marketing expenses were RMB224.6 million (US$32.7 million) in the second quarter of 2019, representing a year-over-year increase of 29.3%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB35.7 million (US$5.2 million), were RMB188.9 million (US$27.5 million) in the second quarter of 2019, representing a year-over-year increase of 35.7% from the corresponding period in 2018. The increase was primarily due to the expansion of our offline retail stores and our strengthened promotional campaigns on certain marketing channels.

 

·General and administrative expenses were RMB134.4 million (US$19.6 million) in the second quarter of 2019, representing a year-over-year increase of 3.9%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB9.4 million (US$1.4 million), were RMB125.0 million (US$18.2 million) in the second quarter of 2019, representing a year-over-year increase of 17.8% from the corresponding period in 2018. The increase was primarily due to an increase in general and administrative personnel related expenses.

 

Loss from operations was RMB199.2 million (US$29.0 million) in the second quarter of 2019, compared to a loss from operations of RMB121.1 million in the second quarter of 2018. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB147.7 million (US$21.5 million) in the second quarter of 2019.

 

 

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 loss was RMB167.2 million (US$24.3 million) in the second quarter of 2019, compared to a net loss of RMB82.8 million in the second quarter of 2018. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB115.6 million (US$16.8 million) in the second quarter of 2019.

 

Net loss attributable to ordinary shareholders was RMB168.0 million (US$24.5 million) in the second quarter of 2019, compared to a net loss attributable to ordinary shareholders of RMB79.6 million in the second quarter of 2018. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB116.4 million (US17.0 million) in the second quarter of 2019.

 

As of June 30, 2019, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB2.0 billion (US$295.3 million).

 

Business Outlook

 

For the third quarter of 2019, Tuniu expects to generate RMB763.1 million to RMB801.3 million of net revenues, which represents 0% to 5% increase 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 28, 2019, (8:00 pm, Beijing/Hong Kong Time, on August 28, 2019) to discuss the second quarter 2019 financial results.

 

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

 

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

 

Conference ID: Tuniu 2Q 2019 Earnings Call

 

A telephone replay will be available one hour after the end of the conference through September 4, 2019. The dial-in details are as follows:

 

US:                 +1-877-344-7529
 
International: +1-412-317-0088
 
Replay Access Code: 10134396

  

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 over 3,000 professional customer service representatives, 24/7 call centers, over 500 offline retail stores and 33 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; 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, 2018   June 30, 2019   June 30, 2019 
   RMB   RMB   US$ 
ASSETS               
Current assets               
Cash and cash equivalents   560,356    361,914    52,719 
Restricted cash   270,670    250,758    36,527 
Short-term investments   859,211    1,414,306    206,017 
Accounts receivable, net   347,547    458,172    66,740 
Amounts due from related parties   696,520    675,752    98,434 
Prepayments and other current assets   1,673,584    1,564,558    227,903 
Total current assets   4,407,888    4,725,460    688,340 
                
Non-current assets               
Long-term investments   1,302,506    1,484,644    216,263 
Property and equipment, net   187,360    210,397    30,648 
Intangible assets, net   317,885    252,518    36,783 
Land use right, net   100,836    99,805    14,538 
Operating lease right-of-use assets, net*   -    170,455    24,830 
Goodwill   159,409    179,959    26,214 
Other non-current assets   81,039    85,035    12,387 
Total non-current assets   2,149,035    2,482,813    361,663 
Total assets   6,556,923    7,208,273    1,050,003 
                
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities               
Short-term borrowings   49,312    83,628    12,182 
Accounts and notes payable   1,305,610    1,796,340    261,666 
Amounts due to related parties   77,159    53,398    7,778 
Salary and welfare payable   104,480    89,526    13,041 
Taxes payable   23,316    6,971    1,015 
Advances from customers   1,058,946    1,214,681    176,938 
Operating lease liabilities, current*   -    86,694    12,628 
Accrued expenses and other current liabilities   483,832    600,253    87,437 
Total current liabilities   3,102,655    3,931,491    572,685 
                
Non-current liabilities               
Operating lease liabilities, non-current*   -    92,614    13,491 
Deferred tax liabilities   19,855    20,308    2,958 
Long-term borrowings   4,492    5,963    869 
Other non-current liabilities   16,069    10,308    1,502 
Total non-current liabilities   40,416    129,193    18,820 
Total liabilities   3,143,071    4,060,684    591,505 
                
Mezzanine equity               
Redeemable noncontrolling interests   69,319    71,854    10,467 
                
Shareholders' equity               
Ordinary shares   249    249    36 
Less: Treasury stock   (304,535)   (311,435)   (45,366)
Additional paid-in capital   9,061,979    9,094,445    1,324,755 
Accumulated other comprehensive income   284,079    286,447    41,726 
Accumulated deficit   (5,691,409)   (6,008,423)   (875,225)
Total Tuniu's shareholders' equity   3,350,363    3,061,283    445,926 
Noncontrolling interests   (5,830)   14,452    2,105 
Total Shareholders' equity   3,344,533    3,075,735    448,031 
Total liabilities and shareholders' equity   6,556,923    7,208,273    1,050,003 

 

*On 1 January 2019, the Company adopted ASC 842, Leases and used the optional transition method to initially apply this new lease standard at the adoption date. Right-of-use assets and lease liabilities were recognized on the Company's consolidated financial statements.  

 

 

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, 2018   March 31, 2019   June 30, 2019   June 30, 2019 
   RMB   RMB   RMB   US$ 
Revenues                    
Packaged tours   437,609    365,893    429,482    62,561 
Others   87,641    90,964    90,848    13,234 
Net revenues   525,250    456,857    520,330    75,795 
Cost of revenues   (274,475)   (206,019)   (287,330)   (41,854)
Gross profit   250,775    250,838    233,000    33,941 
                     
Operating expenses                    
Research and product development   (77,044)   (80,016)   (80,197)   (11,682)
Sales and marketing   (173,638)   (218,820)   (224,582)   (32,714)
General and administrative   (129,317)   (135,072)   (134,389)   (19,576)
Other operating income   8,078    2,543    6,925    1,009 
Total operating expenses   (371,921)   (431,365)   (432,243)   (62,963)
Loss from operations   (121,146)   (180,527)   (199,243)   (29,022)
Other income/(expenses)                    
Interest and investment income   44,592    38,671    36,645    5,338 
Interest expense   (36)   (6,810)   (6,970)   (1,015)
Foreign exchange (losses)/gains, net   (6,633)   (303)   1,090    159 
Other (loss)/income, net   (121)   268    586    85 
Loss before income tax expense   (83,344)   (148,701)   (167,892)   (24,455)
Income tax benefit   524    525    738    108 
Net loss   (82,820)   (148,176)   (167,154)   (24,347)
Net (loss)/income attributable to noncontrolling interests   (1,721)   1,169    (444)   (65)
Net income attributable to redeemable noncontrolling interests   255    714    245    36 
Net loss attributable to Tuniu Corporation   (81,354)   (150,059)   (166,955)   (24,318)
Reversal of/(Accretion on) redeemable noncontrolling interest   1,733    (543)   (1,033)   (150)
Net loss attributable to ordinary shareholders   (79,621)   (150,602)   (167,988)   (24,468)
                     
Net loss   (82,820)   (148,176)   (167,154)   (24,347)
Other comprehensive (loss)/income:                    
Foreign currency translation adjustment, net of nil tax   23,802    (4,742)   7,110    1,036 
Comprehensive loss   (59,018)   (152,918)   (160,044)   (23,311)
                     
Loss per share                    
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.21)   (0.41)   (0.45)   (0.07)
Net loss per ADS - basic and diluted*   (0.63)   (1.23)   (1.35)   (0.21)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   381,234,313    369,190,766    369,343,738    369,343,738 
                     
Share-based compensation expenses included are as follows:                    
Cost of revenues   250    1,869    1,827    266 
Research and product development   1,901    5,041    4,112    599 
Sales and marketing   231    1,416    1,519    221 
General and administrative   22,485    14,835    8,723    1,271 
Total   24,867    23,161    16,181    2,357 

 

*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, 2019 
   GAAP   Share-based   Amortization of acquired   Non-GAAP 
   Result   Compensation   intangible assets   Result 
Cost of revenues   (287,330)   1,827    -    (285,503)
                     
Research and product development   (80,197)   4,112    513    (75,572)
Sales and marketing   (224,582)   1,519    34,163    (188,900)
General and administrative   (134,389)   8,723    704    (124,962)
Other operating income   6,925    -    -    6,925 
Total operating expenses   (432,243)   14,354    35,380    (382,509)
                     
Loss from operations   (199,243)   16,181    35,380    (147,682)
                     
Net loss   (167,154)   16,181    35,380    (115,593)
                     
Net loss attributable to ordinary shareholders   (167,988)   16,181    35,380    (116,427)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted (RMB)   (0.45)             (0.32)
Net loss per ADS - basic and diluted (RMB)   (1.35)             (0.96)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   369,343,738              369,343,738 
                     

 

   Quarter Ended March 31, 2019 
   GAAP   Share-based   Amortization of acquired   Non-GAAP 
   Result   Compensation   intangible assets   Result 
Cost of revenues   (206,019)   1,869    -    (204,150)
                     
Research and product development   (80,016)   5,041    513    (74,462)
Sales and marketing   (218,820)   1,416    34,163    (183,241)
General and administrative   (135,072)   14,835    703    (119,534)
Other operating income   2,543    -    -    2,543 
Total operating expenses   (431,365)   21,292    35,379    (374,694)
                     
Loss from operations   (180,527)   23,161    35,379    (121,987)
                     
Net loss   (148,176)   23,161    35,379    (89,636)
                     
Net loss attributable to ordinary shareholders   (150,602)   23,161    35,379    (92,062)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted (RMB)   (0.41)             (0.25)
Net loss per ADS - basic and diluted (RMB)   (1.23)             (0.75)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   369,190,766              369,190,766 
                     

 

   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 

 

 

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