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 April 2020

 

 

 

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: April 10, 2020

 

 

 

 

 

EXHIBIT INDEX

 

Exhibit No.   Description
99.1   Press Release— Tuniu Announces Management Change
99.2   Press Release— Tuniu Announces Unaudited Fourth Quarter and Fiscal Year 2019 Financial Results

 

 

 

 

 

Exhibit 99.1

 

Tuniu Announces Management Change

 

NANJING, China, Apr. 9, 2020 /PRNewswire/ -- Tuniu Corporation (NASDAQ: TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced that Ms. Maria Yi Xin has tendered her resignation as the Company's Chief Financial Officer due to personal reasons, effective as of May 31, 2020 (the "Effective Date"). Ms. Xin will continue to work closely with the Company to facilitate a smooth transition before the Effective Date. The Company has initiated a search for a new Chief Financial Officer.

 

Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer, said, “We would like to thank Maria for her contributions to Tuniu over the years. Maria played a crucial role helping Tuniu achieve various key milestones and drive for stronger financial management and budget control. We wish her the best with her future endeavors.”

 

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.

 

 

 

 

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

 

 

 

 

 

 

 

Exhibit 99.2

 

Tuniu Announces Unaudited Fourth Quarter and Fiscal Year 2019 Financial Results

 

 

NANJING, China, April 9, 2020 -- 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, 2019.

 

Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer, said, “The outbreak and spread of the COVID-19 has brought an unprecedented challenge to the travel industry and the business operation of Tuniu. Although we expect short-term turbulence within the industry, we remain confident that the economy and travel industry of China will be able to gradually recover as the COVID-19 has been largely contained within China. Since the initial outbreak in January 2020, we have been helping customers refund or alter trips that were impacted by the COVID-19. On the business operation side, we are focusing on developing high-quality products and services for our customers in anticipation of an increase in demand for domestic travel. We believe Tuniu will be well-positioned to better capture market opportunities when the travel industry begins to recover.”

 

Ms. Maria Yi Xin, Tuniu’s Chief Financial Officer, said, “Since the fourth quarter of 2019, we have been making various adjustments to our business operation and corporate structure. After the outbreak of the COVID-19, we have implemented a number of cost-saving adjustments that will manifest starting from the second half of 2020. Due to the COVID-19 outbreak in early 2020, the Chinese government has announced bans prohibiting the sale of packaged tour products. As China’s leading online leisure travel company, we have a high social responsibility and will continue prioritizing the safety of our customers.”

 

Fourth Quarter 2019 Results

 

Net revenues were RMB451.3 million (US$64.8 million1) in the fourth quarter of 2019, representing a year-over-year decrease of 4.2% from the corresponding period in 2018.

 

·Revenues from packaged tours were RMB344.3 million (US$49.5 million) in the fourth quarter of 2019, representing a year-over-year decrease of 3.7% from the corresponding period in 2018. The decrease was primarily due to the decline in demand for travel to certain destinations.

 

·Other revenues were RMB107.0 million (US$15.4 million) in the fourth quarter of 2019, representing a year-over-year decrease of 5.9% from the corresponding period in 2018. The decrease was primarily due to the decline in revenues generated from financial services.

 

Cost of revenues was RMB234.6 million (US$33.7 million) in the fourth quarter of 2019, representing a year-over-year increase of 16.7% from the corresponding period in 2018. As a percentage of net revenues, cost of revenues was 52.0% in the fourth quarter of 2019 compared to 42.7% in 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=RMB6.9618 on December 31, 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.

 

 

 

 

Gross profit was RMB216.7 million (US$31.1 million) in the fourth quarter of 2019, representing a year-over-year decrease of 19.8% from the corresponding period in 2018.

 

Operating expenses were RMB650.9 million (US$93.5 million) in the fourth quarter of 2019, representing a year-over-year increase of 74.3% from the corresponding period in 2018. Share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, which were allocated to operating expenses, were RMB74.8 million (US$10.7 million) in the fourth quarter of 2019. Non-GAAP2 operating expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, were RMB576.1 million (US$82.8 million) in the fourth quarter of 2019, representing a year-over-year increase of 76.5%.

 

·Research and product development expenses were RMB79.0 million (US$11.4 million) in the fourth quarter of 2019, representing a year-over-year increase of 4.2%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.6 million (US$0.2 million), were RMB77.4 million (US$11.1 million) in the fourth quarter of 2019, representing a year-over-year increase of 5.9% from the corresponding period in 2018. The increase was primarily due to the increase in research and product development personnel related expenses.

 

·Sales and marketing expenses were RMB239.9 million (US$34.5 million) in the fourth quarter of 2019, representing a year-over-year increase of 14.7%. The increase was primarily due to the increase in impairment of acquired intangible assets. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets of RMB66.9 million (US$9.6 million), were RMB173.0 million (US$24.8 million) in the fourth quarter of 2019, representing a year-over-year decrease of 0.9% from the corresponding period in 2018.

 

·General and administrative expenses were RMB341.5 million (US$49.1 million) in the fourth quarter of 2019, representing a year-over-year increase of 183.4%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB6.2 million (US$0.9 million), were RMB335.3 million (US$48.2 million) in the fourth quarter of 2019, representing a year-over-year increase of 202.5% from the corresponding period in 2018. The increase was primarily due to the increase in some one-time impairment charges and general and administrative personnel related expenses.

 

 

 

______________________

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 RMB434.2 million (US$62.4 million) in the fourth quarter of 2019, compared to a loss from operations of RMB103.1 million in the fourth quarter of 2018. Non-GAAP loss from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB359.2 million (US$51.6 million) in the fourth quarter of 2019.

 

Net loss was RMB401.4 million (US$57.7 million) in the fourth quarter of 2019, compared to a net loss of RMB72.9 million in the fourth quarter of 2018. Non-GAAP net loss, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB326.4 million (US$46.9 million) in the fourth quarter of 2019.

 

Net loss attributable to ordinary shareholders was RMB367.1 million (US$52.7 million) in the fourth quarter of 2019, compared to a net loss attributable to ordinary shareholders of RMB64.7 million in the fourth quarter of 2018. 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 RMB292.1 million (US$42.0 million) in the fourth quarter of 2019.

 

As of December 31, 2019, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.9 billion (US$276.9 million).

 

Fiscal Year 2019 Results

 

Net revenues were RMB2.3 billion (US$327.6 million) in 2019, representing a year-over-year increase of 1.8% from 2018.

 

·Revenues from packaged tours were RMB1.9 billion (US$271.0 million) in 2019, representing a year-over-year increase of 3.1% from 2018. The increase was primarily due to the growth of organized tours.

 

·Other revenues were RMB394.2 million (US$56.6 million) in 2019, representing a year-over-year decrease of 3.7% from 2018. 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 RMB1.2 billion (US$172.4 million) in 2019, representing a year-over-year increase of 12.7% from 2018. As a percentage of net revenues, cost of revenues was 52.6% in 2019 compared to 47.5% in 2018.

 

Gross profit was RMB1.1 billion (US$155.3 million) in 2019, representing a year-over-year decrease of 8.0% from 2018.

 

Operating expenses were RMB2.0 billion (US$280.4 million) in 2019, representing a year-over-year increase of 28.1% from 2018. Share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, which were allocated to operating expenses, were RMB232.8 million (US$33.4 million) in 2019. Non-GAAP operating expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, were RMB1.7 billion (US$246.9 million) in 2019, representing a year-over-year increase of 30.7%.

 

 

 

 

·Research and product development expenses were RMB303.6 million (US$43.6 million) in 2019, representing a year-over-year decrease of 3.7%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB14.4 million (US$2.1 million), were RMB289.2 million (US$41.5 million) in 2019, representing a year-over-year decrease of 5.0% from 2018. The decrease was primarily due to the increase in efficiency resulting from the increased level of automation applied in research and product development activities, and optimization of research and product development personnel.

 

·Sales and marketing expenses were RMB923.3 million (US$132.6 million) in 2019, representing a year-over-year increase of 18.7%. The increase was primarily due to the increase in sales and marketing personnel and offline retail stores related expenses, as well as the impairment of acquired intangible assets. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets of RMB173.2 million (US$24.9 million), were RMB750.1 million (US$107.7 million) in 2019, representing a year-over-year increase of 17.2% from 2018. The increase was primarily due to the increase in sales and marketing personnel and offline retail stores related expenses.

 

·General and administrative expenses were RMB749.4 million (US$107.6 million) in 2019, representing a year-over-year increase of 53.8%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB45.2 million (US$6.5 million), were RMB704.2 million (US$101.2 million) in 2019, representing a year-over-year increase of 64.8% from 2018. The increase was primarily due to the increase in some one-time impairment charges and general and administrative personnel related expenses.

 

Loss from operations was RMB870.8 million (US$125.1 million) in 2019, compared to a loss from operations of RMB349.0 million in 2018. Non-GAAP loss from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB634.1 million (US$91.1 million) in 2019.

 

Net loss was RMB729.4 million (US$104.8 million) in 2019, compared to a net loss of RMB199.4 million in 2018. Non-GAAP net loss, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB492.6 million (US$70.8 million) in 2019.

 

Net loss attributable to ordinary shareholders was RMB699.2 million (US$100.4 million) in 2019, compared to a net loss attributable to ordinary shareholders of RMB187.9 million in 2018. 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 RMB462.4 million (US$66.4 million) in 2019.

 

 

 

 

Business Outlook

 

Tuniu’s business has been significantly impacted by the outbreak and spread of COVID-19 since January 2020. The current circumstances are dynamic and the impact of COVID-19 on our business operations cannot be reasonably estimated at this time, and we anticipate this will have material adverse impact on our business, financial position, results of operations and cash flows in 2020. As a result, for the first quarter of 2020, the Company expects to generate RMB114.2 million to RMB159.9 million of net revenues, which represents 65% to 75% 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 April 9, 2020, (8:00 pm, Beijing/Hong Kong Time, on April 9, 2020) to discuss the fourth quarter and fiscal year 2019 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 4Q 2019 Earnings Call

 

A telephone replay will be available one hour after the end of the conference through April 16, 2020. The dial-in details are as follows:

 

US:+1-877-344-7529

 

International:+1-412-317-0088

 

Replay Access Code: 10140657

 

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.

 

 

 

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   December 31, 2019   December 31, 2019 
   RMB   RMB   US$ 
             
ASSETS               
Current assets               
Cash and cash equivalents   560,356    295,463    42,441 
Restricted cash   270,670    327,052    46,978 
Short-term investments   859,211    1,305,386    187,507 
Accounts receivable, net   347,547    529,983    76,127 
Amounts due from related parties   696,520    65,108    9,352 
Prepayments and other current assets   1,673,584    1,300,284    186,774 
Total current assets   4,407,888    3,823,276    549,179 
                
Non-current assets               
Long-term investments   1,302,506    1,305,612    187,539 
Property and equipment, net   187,360    223,340    32,081 
Intangible assets, net   317,885    166,267    23,883 
Land use right, net   100,836    98,774    14,188 
Operating lease right-of-use assets, net*   -    105,839    15,203 
Goodwill   159,409    232,007    33,325 
Other non-current assets   81,039    83,923    12,055 
Long-term amounts due from related parties   -    557,582    80,092 
Total non-current assets   2,149,035    2,773,344    398,366 
Total assets   6,556,923    6,596,620    947,545 
                
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities               
Short-term borrowings   49,312    203,845    29,281 
Accounts and notes payable   1,305,610    1,311,963    188,452 
Amounts due to related parties   77,159    29,755    4,274 
Salary and welfare payable   104,480    112,511    16,162 
Taxes payable   23,316    12,207    1,753 
Advances from customers   1,058,946    1,113,879    159,999 
Operating lease liabilities, current*   -    57,490    8,258 
Accrued expenses and other current liabilities   483,832    907,119    130,299 
Total current liabilities   3,102,655    3,748,769    538,478 
                
Non-current liabilities               
Operating lease liabilities, non-current*   -    54,718    7,860 
Deferred tax liabilities   19,855    23,658    3,398 
Long-term borrowings   4,492    9,689    1,392 
Other non-current liabilities   16,069    10,947    1,572 
Total non-current liabilities   40,416    99,012    14,222 
Total liabilities   3,143,071    3,847,781    552,700 
                
Mezzanine equity               
Redeemable noncontrolling interests   69,319    37,200    5,343 
                
Shareholders' equity               
Ordinary shares   249    249    36 
Less: Treasury stock   (304,535)   (310,942)   (44,664)
Additional paid-in capital   9,061,979    9,113,512    1,309,074 
Accumulated other comprehensive income   284,079    293,784    42,199 
Accumulated deficit   (5,691,409)   (6,385,974)   (917,288)
Total Tuniu's shareholders' equity   3,350,363    2,710,629    389,357 
Noncontrolling interests   (5,830)   1,010    145 
Total Shareholders' equity   3,344,533    2,711,639    389,502 
Total liabilities and shareholders' equity   6,556,923    6,596,620    947,545 

 

*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 
   December 31, 2018   September 30, 2019   December 31, 2019   December 31, 2019 
   RMB   RMB   RMB   US$ 
                 
Revenues                    
Packaged tours   357,619    747,122    344,325    49,459 
Others   113,616    105,395    106,958    15,364 
Net revenues   471,235    852,517    451,283    64,823 
Cost of revenues   (201,018)   (472,040)   (234,623)   (33,701)
Gross profit   270,217    380,477    216,660    31,122 
                     
Operating expenses                    
Research and product development   (75,854)   (64,310)   (79,038)   (11,353)
Sales and marketing   (209,094)   (239,973)   (239,898)   (34,459)
General and administrative   (120,510)   (138,456)   (341,487)   (49,052)
Other operating income   32,130    5,406    9,545    1,371 
Total operating expenses   (373,328)   (437,333)   (650,878)   (93,493)
Loss from operations   (103,111)   (56,856)   (434,218)   (62,371)
Other income/(expenses)                    
Interest and investment income   30,696    42,780    38,766    5,568 
Interest expense   (6,158)   (8,900)   (11,372)   (1,633)
Foreign exchange (losses)/gains, net   (2,043)   (5,190)   3,272    470 
Other income, net   5,653    14,847    2,808    403 
Loss before income tax expense   (74,963)   (13,319)   (400,744)   (57,563)
Income tax benefit/(expense)   2,025    698    (2,910)   (418)
Equity in income of affiliates   -    -    2,223    320 
Net loss   (72,938)   (12,621)   (401,431)   (57,661)
Net loss attributable to noncontrolling interests   (9,511)   (565)   (35,957)   (5,165)
Net (loss)/income attributable to redeemable noncontrolling interests   (1,848)   (102)   123    18 
Net loss attributable to Tuniu Corporation   (61,579)   (11,954)   (365,597)   (52,514)
Accretion on redeemable noncontrolling interests   (3,082)   (1,518)   (1,540)   (221)
Net loss attributable to ordinary shareholders   (64,661)   (13,472)   (367,137)   (52,735)
                     
Net loss   (72,938)   (12,621)   (401,431)   (57,661)
Other comprehensive income/(loss):                    
Foreign currency translation adjustment, net of nil tax   1    12,276    (4,939)   (709)
Comprehensive loss   (72,937)   (345)   (406,370)   (58,370)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.17)   (0.04)   (0.99)   (0.14)
Net loss per ADS - basic and diluted*   (0.51)   (0.12)   (2.97)   (0.42)
                     
Weighted average number of ordinary shares used in computing basic and diluted loss per share   370,486,502    369,559,765    369,797,249    369,797,249 
                     
Share-based compensation expenses included are as follows:                    
Cost of revenues   392    52    258    37 
Research and product development   2,173    2,065    839    121 
Sales and marketing   333    119    267    38 
General and administrative   8,901    13,294    5,500    790 
Total   11,799    15,530    6,864    986 

 

*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, 2018   December 31, 2019   December 31, 2019 
   RMB   RMB   US$ 
             
Revenues               
Packaged tours   1,830,630    1,886,822    271,025 
Others   409,519    394,165    56,618 
Net revenues   2,240,149    2,280,987    327,643 
Cost of revenues   (1,065,022)   (1,200,012)   (172,371)
Gross profit   1,175,127    1,080,975    155,272 
                
Operating expenses               
Research and product development   (315,222)   (303,561)   (43,604)
Sales and marketing   (778,126)   (923,273)   (132,620)
General and administrative   (487,372)   (749,404)   (107,645)
Other operating income   56,599    24,419    3,508 
Total operating expenses   (1,524,121)   (1,951,819)   (280,361)
Loss from operations   (348,994)   (870,844)   (125,089)
Other income/(expenses)               
Interest and investment income   152,929    156,862    22,532 
Interest expense   (7,918)   (34,052)   (4,891)
Foreign exchange (losses)/gains, net   (11,729)   (1,131)   (162)
Other income, net   16,494    18,509    2,658 
Loss before income tax expense   (199,218)   (730,656)   (104,952)
Income tax expense   (153)   (949)   (136)
Equity in income of affiliates   -    2,223    320 
Net loss   (199,371)   (729,382)   (104,768)
Net loss attributable to noncontrolling interests   (14,037)   (35,797)   (5,142)
Net income attributable to redeemable noncontrolling interests   178    980    141 
Net loss attributable to Tuniu Corporation   (185,512)   (694,565)   (99,767)
Accretion on redeemable noncontrolling interests   (2,422)   (4,634)   (666)
Net loss attributable to ordinary shareholders   (187,934)   (699,199)   (100,433)
                
Net loss   (199,371)   (729,382)   (104,768)
Other comprehensive income:               
Foreign currency translation adjustment, net of nil tax   11,693    9,705    1,394 
Comprehensive loss   (187,678)   (719,677)   (103,374)
                
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.50)   (1.89)   (0.27)
Net loss per ADS - basic and diluted*   (1.50)   (5.67)   (0.81)
Weighted average number of ordinary shares used in computing basic and diluted loss per share   377,744,381    369,472,880    369,472,880 
                
Share-based compensation expenses included are as follows:               
Cost of revenues   1,483    4,006    575 
Research and product development   9,124    12,057    1,732 
Sales and marketing   1,305    3,321    477 
General and administrative   56,826    42,352    6,083 
Total   68,738    61,736    8,867 

 

*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 December 31, 2019 
   GAAP   Share-based   Amortization of acquired   Impairment of acquired   Non-GAAP 
   Result   Compensation   intangible assets   intangible assets   Result 
                     
Cost of revenues   (234,623)   258    -    -    (234,365)
                          
Research and product development   (79,038)   839    793    -    (77,406)
Sales and marketing   (239,898)   267    34,649    32,014    (172,968)
General and administrative   (341,487)   5,500    705    -    (335,282)
Other operating income   9,545    -    -    -    9,545 
Total operating expenses   (650,878)   6,606    36,147    32,014    (576,111)
                          
Loss from operations   (434,218)   6,864    36,147    32,014    (359,193)
                          
Net Loss   (401,431)   6,864    36,147    32,014    (326,406)
                          
Net loss attributable to ordinary shareholders   (367,137)   6,864    36,147    32,014    (292,112)
                          
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.99)                  (0.79)
Net loss per ADS - basic and diluted   (2.97)                  (2.37)
                          
Weighted average number of ordinary shares used in computing basic and diluted loss per share   369,797,249                   369,797,249 

 

   Quarter Ended September 30, 2019 
   GAAP   Share-based   Amortization of acquired   Impairment of acquired   Non-GAAP 
   Result   Compensation   intangible assets   intangible assets   Result 
                     
Cost of revenues   (472,040)   52    -    -    (471,988)
                          
Research and product development   (64,310)   2,065    513    -    (61,732)
Sales and marketing   (239,973)   119    34,907    -    (204,947)
General and administrative   (138,456)   13,294    705    -    (124,457)
Other operating income   5,406    -    -    -    5,406 
Total operating expenses   (437,333)   15,478    36,125    -    (385,730)
                          
Loss from operations   (56,856)   15,530    36,125    -    (5,201)
                          
Net (loss)/income   (12,621)   15,530    36,125    -    39,034 
                          
Net (loss)/income attributable to ordinary shareholders   (13,472)   15,530    36,125    -    38,183 
                          
Net (loss)/income per ordinary share                         
-Basic   (0.04)                  0.10 
-Diluted   (0.04)                  0.10 
Net (loss)/income per ADS                         
-Basic   (0.12)                  0.30 
-Diluted   (0.12)                  0.30 
                          
Weighted average number of ordinary shares                         
-Basic   369,559,765                   369,559,765 
-Diluted   369,559,765                   379,770,193 

 

   Quarter Ended December 31, 2018 
   GAAP   Share-based   Amortization of acquired   Impairment of acquired   Non-GAAP 
   Result   Compensation   intangible assets   intangible assets   Result 
                     
Cost of revenues   (201,018)   392    -    -    (200,626)
                          
Research and product development   (75,854)   2,173    589    -    (73,092)
Sales and marketing   (209,094)   333    34,163    -    (174,598)
General and administrative   (120,510)   8,901    781    -    (110,828)
Other operating income   32,130    -    -    -    32,130 
Total operating expenses   (373,328)   11,407    35,533    -    (326,388)
                          
Loss from operations   (103,111)   11,799    35,533    -    (55,779)
                          
Net loss   (72,938)   11,799    35,533    -    (25,606)
                          
Net loss attributable to ordinary shareholders   (64,661)   11,799    35,533    -    (17,329)
                          
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.17)                  (0.05)
Net loss per ADS - basic and diluted   (0.51)                  (0.15)
                          
Weighted average number of ordinary shares used in computing basic and diluted loss per share   370,486,502                   370,486,502 

 

*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.

 

 

 

Reconciliations  of GAAP and Non-GAAP Results
(All amounts in thousands, except per share information)

 

   Year Ended December 31, 2019 
   GAAP   Share-based   Amortization of acquired   Impairment of acquired   Non-GAAP 
   Result   Compensation   intangible assets   intangible assets   Result 
                     
Cost of revenues   (1,200,012)   4,006    -    -    (1,196,006)
                          
Research and product development   (303,561)   12,057    2,332    -    (289,172)
Sales and marketing   (923,273)   3,321    137,882    32,014    (750,056)
General and administrative   (749,404)   42,352    2,816    -    (704,236)
Other operating income   24,419    -    -    -    24,419 
Total operating expenses   (1,951,819)   57,730    143,030    32,014    (1,719,045)
                          
Loss from operations   (870,844)   61,736    143,030    32,014    (634,064)
                          
Net loss   (729,382)   61,736    143,030    32,014    (492,602)
                          
Net loss attributable to ordinary shareholders   (699,199)   61,736    143,030    32,014    (462,419)
                          
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (1.89)                  (1.25)
Net loss per ADS - basic and diluted   (5.67)                  (3.75)
                          
Weighted average number of ordinary shares used in computing basic and diluted loss per share   369,472,880                   369,472,880 

 

   Year Ended December 31, 2018 
   GAAP   Share-based   Amortization of acquired   Impairment of acquired   Non-GAAP 
   Result   Compensation   intangible assets   intangible assets   Result 
                     
Cost of revenues   (1,065,022)   1,483    -    -    (1,063,539)
                          
Research and product development   (315,222)   9,124    1,786    -    (304,312)
Sales and marketing   (778,126)   1,305    136,652    -    (640,169)
General and administrative   (487,372)   56,826    3,124    -    (427,422)
Other operating income   56,599    -    -    -    56,599 
Total operating expenses   (1,524,121)   67,255    141,562    -    (1,315,304)
                          
Loss from operations   (348,994)   68,738    141,562    -    (138,694)
                          
Net (loss)/income   (199,371)   68,738    141,562    -    10,929 
                          
Net (loss)/income attributable to ordinary shareholders   (187,934)   68,738    141,562    -    22,366 
                          
Net (loss)/income per ordinary share attributable to ordinary shareholders(RMB)                         
-Basic   (0.50)                  0.06 
-Diluted   (0.50)                  0.06 
Net (loss)/income per ADS(RMB)                         
-Basic   (1.50)                  0.18 
-Diluted   (1.50)                  0.18 
                          
Weighted average number of ordinary shares used in computing basic (loss)/income per share   377,744,381                   377,744,381 
Weighted average number of ordinary shares used in computing diluted (loss)/income per share   377,744,381                   386,061,224 

 

*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.