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 June 2020

 

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Commission File Number: 001-36430

 

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Tuniu Corporation

 

Tuniu Building, No. 699-32

Xuanwudadao, Xuanwu District

Nanjing, Jiangsu Province 210042

People’s Republic of China

(Address of principal executive offices)

 

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

 

Form 20-F x            Form 40-F ¨

 

 

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

 

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

 

 

 

 

 

SIGNATURES

 

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

 

 

 

Tuniu Corporation

 

  By: /s/ Anqiang Chen
  Name: Anqiang Chen
  Title: Financial Controller

 

Date: June 11, 2020

 

 

 

 

EXHIBIT INDEX

 

Exhibit No.   Description
99.1   Press Release

 

 

 

 

 

Exhibit 99.1

 

Tuniu Announces Unaudited First Quarter 2020 Financial Results

 

 

NANJING, China, June 10, 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 first quarter ended March 31, 2020.

 

Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer, said, “Even though travel restrictions implemented during the COVID-19 pandemic remain in place, we are positive on the long-term prospect as there has been a strong accumulation of demand for travel products. By leveraging our experience in Tuniu-branded products and established network of local tour operators, we will shift our focus on the domestic market to offer high-quality domestic travel products to customers, in order to meet the near-term challenges. We are also utilizing new forms of distributions such as live-streaming and social marketing to stimulate customer interest in various destinations and travel products. Lastly, we remain committed to minimizing our expenditures and optimizing our cash flows in preparation for the full recovery of China’s leisure travel market.”

 

First Quarter 2020 Results

 

Net revenues were RMB174.0 million (US$24.6 million1) in the first quarter of 2020, representing a year-over-year decrease of 61.9% from the corresponding period in 2019. The decrease was primarily due to the negative impact brought out by the outbreak and spread of COVID-19.

 

·Revenues from packaged tours were RMB120.2 million (US$17.0 million) in the first quarter of 2020, representing a year-over-year decrease of 67.1% from the corresponding period in 2019. The decrease was primarily due to the suspension of sale of packaged tours impacted by the outbreak and spread of COVID-192.

 

·Other revenues were RMB53.7 million (US$7.6 million) in the first quarter of 2020, representing a year-over-year decrease of 40.9% from the corresponding period in 2019. The decrease was primarily due to the declines in service fees received from insurance companies and revenues generated from financial services.

 

Cost of revenues was RMB81.5 million (US$11.5 million) in the first quarter of 2020, representing a year-over-year decrease of 60.5% from the corresponding period in 2019. As a percentage of net revenues, cost of revenues was 46.8% in the first quarter of 2020, compared to 45.1% in the corresponding period in 2019.

 

 

1 The conversion of Renminbi (“RMB”) into United States dollars (“US$”) is based on the exchange rate of US$1.00=RMB7.0808 on March 31, 2020 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.

 

2 On January 24, 2020, the Ministry of Culture and Tourism of the People’s Republic of China issued a notice requiring travel agencies, including online travel agencies throughout the country to suspend the operation of organized tours and the provision of a combination of flight and hotel bookings.

 

 

 

  

Gross margin was 53.2% in the first quarter of 2020, compare to a gross margin of 54.9% in the first quarter of 2019.

 

Operating expenses were RMB308.0 million (US$43.5 million) in the first quarter of 2020, representing a year-over-year decrease of 28.6% from the corresponding period in 2019. Share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, which were allocated to operating expenses, were RMB37.6 million (US$5.3 million) in the first quarter of 2020. Non-GAAP3 operating expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, were RMB270.4 million (US$38.2 million) in the first quarter of 2020, representing a year-over-year decrease of 27.8%.

 

·Research and product development expenses were RMB51.0 million (US$7.2 million) in the first quarter of 2020, representing a year-over-year decrease of 36.2%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB3.1 million (US$0.4 million), were RMB48.0 million (US$6.8 million) in the first quarter of 2020, representing a year-over-year decrease of 35.6% from the corresponding period in 2019. The decrease was primarily due to the decrease in research and product development personnel related expenses.

 

·Sales and marketing expenses were RMB124.7 million (US$17.6 million) in the first quarter of 2020, representing a year-over-year decrease of 43.0%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets of RMB31.8 million (US$4.5 million), were RMB92.9 million (US$13.1 million) in the first quarter of 2020, representing a year-over-year decrease of 49.3% from the corresponding period in 2019. The decrease was primarily due to the decrease in promotion expenses and sales and marketing personnel related expenses.

 

·General and administrative expenses were RMB133.9 million (US$18.9 million) in the first quarter of 2020, representing a year-over-year decrease of 0.9%. The decrease was primarily due to the decrease in general and administrative personnel related expenses. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB2.7 million (US$0.4 million), were RMB131.1 million (US$18.5 million) in the first quarter of 2020, representing a year-over-year increase of 9.7% from the corresponding period in 2019. The increase was primarily due to the increase in allowance for doubtful accounts.

 

 

 

3 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 RMB215.5 million (US$30.4 million) in the first quarter of 2020, compared to a loss from operations of RMB180.5 million in the first quarter of 2019. Non-GAAP loss from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB177.7 million (US$25.1 million) in the first quarter of 2020.

 

Net loss was RMB205.2 million (US$29.0 million) in the first quarter of 2020, compared to a net loss of RMB148.2 million in the first quarter of 2019. Non-GAAP net loss, which excluded share-based compensation expenses, amortization of acquired intangible assets and impairment of acquired intangible assets, was RMB167.4 million (US$23.6 million) in the first quarter of 2020.

 

Net loss attributable to ordinary shareholders was RMB201.5 million (US$28.5 million) in the first quarter of 2020, compared to a net loss attributable to ordinary shareholders of RMB150.6 million in the first quarter of 2019. 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 RMB163.7 million (US$23.1 million) in the first quarter of 2020.

 

As of March 31, 2020, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB2.1 billion (US$296.6 million). The COVID-19 pandemic has negatively impacted our business operation and cash flows for the first quarter of 2020, which could continue to impact on subsequent periods. Based on our liquidity assessment and management actions, we believe that our available cash, cash equivalents and cash generated from future operations and maturity of investments will be sufficient to meet our working capital requirements and capital expenditures in the ordinary course of business for the foreseeable future.

 

Business Outlook

 

Tuniu’s business has been significantly and negatively impacted by the outbreak and spread of COVID-19 since January 2020. As a result of the continued influence by COVID-19, for the second quarter of 2020, the Company expects to generate RMB20.8 million to RMB72.8 million of net revenues, which represents 86% to 96% 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 June 10, 2020, (8:00 pm, Beijing/Hong Kong Time, on June 10, 2020) to discuss the first quarter 2020 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 1Q 2020 Earnings Call

 

A telephone replay will be available one hour after the end of the conference through June 17, 2020. The dial-in details are as follows:

 

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

 

Replay Access Code: 10144584

 

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, 2019   March 31, 2020   March 31, 2020 
   RMB   RMB   US$ 
ASSETS               
Current assets               
Cash and cash equivalents   295,463    590,948    83,458 
Restricted cash   327,052    111,754    15,783 
Short-term investments   1,305,386    1,397,273    197,333 
Accounts receivable, net   529,983    450,756    63,659 
Amounts due from related parties   65,108    62,727    8,859 
Prepayments and other current assets   1,300,284    951,691    134,404 
Total current assets   3,823,276    3,565,149    503,496 
                
Non-current assets               
Long-term investments   1,305,612    786,646    111,096 
Property and equipment, net   223,340    210,132    29,676 
Intangible assets, net   166,267    130,618    18,447 
Land use right, net   98,774    98,259    13,877 
Operating lease right-of-use assets, net   105,839    87,515    12,359 
Goodwill   232,007    232,007    32,766 
Other non-current assets   83,923    70,856    10,007 
Long-term amounts due from related parties   557,582    554,179    78,265 
Total non-current assets   2,773,344    2,170,212    306,493 
Total assets   6,596,620    5,735,361    809,989 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY               
Current liabilities               
Short-term borrowings   203,845    203,672    28,764 
Accounts and notes payable   1,311,963    1,129,995    159,586 
Amounts due to related parties   29,755    26,594    3,756 
Salary and welfare payable   112,511    75,721    10,694 
Taxes payable   12,207    4,230    597 
Advances from customers   1,113,879    492,277    69,523 
Operating lease liabilities, current   57,490    57,167    8,074 
Accrued expenses and other current liabilities   907,119    1,118,539    157,968 
Total current liabilities   3,748,769    3,108,195    438,962 
                
Non-current liabilities               
Operating lease liabilities, non-current   54,718    45,541    6,432 
Deferred tax liabilities   23,658    22,829    3,224 
Long-term borrowings   9,689    10,941    1,545 
Other non-current liabilities   10,947    10,947    1,546 
Total non-current liabilities   99,012    90,258    12,747 
Total liabilities   3,847,781    3,198,453    451,709 
                
Mezzanine equity               
Redeemable noncontrolling interests   37,200    37,200    5,254 
                
Shareholders’ equity               
Ordinary shares   249    249    35 
Less: Treasury stock   (310,942)   (310,724)   (43,883)
Additional paid-in capital   9,113,512    9,117,787    1,287,678 
Accumulated other comprehensive income   293,784    301,875    42,633 
Accumulated deficit*   (6,385,974)   (6,606,860)   (933,067)
Total Tuniu’s shareholders’ equity   2,710,629    2,502,327    353,396 
Noncontrolling interests   1,010    (2,619)   (370)
Total Shareholders’ equity   2,711,639    2,499,708    353,026 
Total liabilities and shareholders’ equity   6,596,620    5,735,361    809,989 

 

*On 1 January 2020, the Company adopted ASU No. 2016-13 (ASU 2016-13), “Financial Instruments – Credit Losses”, and recognized a cumulative-effect adjustment to the opening retained earnings at the adoption date.

 

 

 

 

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 
   March 31, 2019   December 31, 2019   March 31, 2020   March 31, 2020 
   RMB   RMB   RMB   US$ 
Revenues                    
Packaged tours   365,893    344,325    120,240    16,981 
Others   90,964    106,958    53,741    7,590 
Net revenues   456,857    451,283    173,981    24,571 
Cost of revenues   (206,019)   (234,623)   (81,460)   (11,504)
Gross profit   250,838    216,660    92,521    13,067 
                     
Operating expenses                    
Research and product development   (80,016)   (79,038)   (51,026)   (7,206)
Sales and marketing   (218,820)   (239,898)   (124,698)   (17,611)
General and administrative   (135,072)   (341,487)   (133,860)   (18,905)
Other operating income   2,543    9,545    1,574    222 
Total operating expenses   (431,365)   (650,878)   (308,010)   (43,500)
Loss from operations   (180,527)   (434,218)   (215,489)   (30,433)
Other income/(expenses)                    
Interest and investment income, net   38,671    38,766    21,852    3,086 
Interest expense   (6,810)   (11,372)   (10,499)   (1,483)
Foreign exchange (losses)/gains, net   (303)   3,272    (877)   (124)
Other income/(loss), net   268    2,808    (1,718)   (243)
Loss before income tax expense   (148,701)   (400,744)   (206,731)   (29,197)
Income tax benefit/(expense)   525    (2,910)   817    115 
Equity in income of affiliates   -    2,223    744    105 
Net loss   (148,176)   (401,431)   (205,170)   (28,977)
Net income/(loss) attributable to noncontrolling interests   1,169    (35,957)   (3,629)   (513)
Net income/(loss) attributable to redeemable noncontrolling interests   714    123    (81)   (11)
Net loss attributable to Tuniu Corporation   (150,059)   (365,597)   (201,460)   (28,453)
Accretion on redeemable noncontrolling interests   (543)   (1,540)   (81)   (11)
Net loss attributable to ordinary shareholders   (150,602)   (367,137)   (201,541)   (28,464)
                     
Net loss   (148,176)   (401,431)   (205,170)   (28,977)
Other comprehensive (loss)/income:                    
Foreign currency translation adjustment, net of nil tax   (4,742)   (4,939)   8,091    1,143 
Comprehensive loss   (152,918)   (406,370)   (197,079)   (27,834)
                     
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.41)   (0.99)   (0.54)   (0.08)
Net loss per ADS - basic and diluted*   (1.23)   (2.97)   (1.62)   (0.24)
                     
Weighted average number of ordinary shares used in computing basic and diluted loss per share   369,190,766    369,797,249    370,055,731    370,055,731 
                     
Share-based compensation expenses included are as follows:                    
Cost of revenues   1,869    258    207    29 
Research and product development   5,041    839    2,136    302 
Sales and marketing   1,416    267    205    29 
General and administrative   14,835    5,500    2,025    286 
Total   23,161    6,864    4,573    646 

 

*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 March 31, 2020 
   GAAP   Share-based   Amortization of acquired   Impairment of acquired   Non-GAAP 
   Result   Compensation   intangible assets   intangible assets   Result 
Cost of revenues   (81,460)   207    -    -    (81,253)
                          
Research and product development   (51,026)   2,136    933    -    (47,957)
Sales and marketing   (124,698)   205    22,050    9,554    (92,889)
General and administrative   (133,860)   2,025    709    -    (131,126)
Other operating income   1,574    -    -    -    1,574 
Total operating expenses   (308,010)   4,366    23,692    9,554    (270,398)
                          
Loss from operations   (215,489)   4,573    23,692    9,554    (177,670)
                          
Net loss   (205,170)   4,573    23,692    9,554    (167,351)
                          
Net loss attributable to ordinary shareholders   (201,541)   4,573    23,692    9,554    (163,722)
                          
Net loss per ordinary share attributable to ordinary shareholders - basic and diluted   (0.54)                  (0.44)
Net loss per ADS - basic and diluted   (1.62)                  (1.32)
                          
Weighted average number of ordinary shares used in computing basic and diluted loss per share   370,055,731                   370,055,731 

 

   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 March 31, 2019 
   GAAP   Share-based   Amortization of acquired   Impairment of acquired   Non-GAAP 
   Result   Compensation   intangible assets   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   (0.41)                  (0.25)
Net loss per ADS - basic and diluted   (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 

 

*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.