TOUR Tuniu Corporation

 

 

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 December 2024

 

 

Commission File Number: 001-36430

 

 

Tuniu Corporation

 

6, 8-12th Floor, Building 6-A, Juhuiyuan

No. 108 Xuanwudadao, Xuanwu District

Nanjing, Jiangsu Province 210023

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 ¨

 

 

 

EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Press Release—Tuniu Announces Unaudited Third Quarter 2024 Financial Results

 

 

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: December 5, 2024

 

 

Exhibit 99.1

 

Tuniu Announces Unaudited Third Quarter 2024 Financial Results

 

NANJING, China, December 5, 2024 - Tuniu Corporation (NASDAQ: TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.

 

"We are pleased to see that Tuniu continued to maintain profitable growth in the third quarter of 2024, reaching our highest quarterly profit since our listing." said Mr. Donald Dunde Yu, Tuniu’s founder, Chairman and Chief Executive Officer. "This quarter, our core packaged tours business continued its steady growth. In the face of greater and more diversified peak season demand, we expanded our product and destination offerings to provide more varied and personalized services for a wider range of customers. We also closely followed changes in consumer habits and further developed our ‘travel + new media’ marketing model, integrating services with technology to continually enhance user experience to attract more customers. Looking ahead, we remain committed to delivering outstanding customer experiences while striving to promote high-quality development for the company."

 

Third Quarter 2024 Results

 

Net revenues were RMB186.0 million (US$26.5 million¹) in the third quarter of 2024, representing a year-over-year increase of 4.4% from the corresponding period in 2023.

 

·

Revenues from packaged tours were RMB 159.3 million (US$22.7 million) in the third quarter of 2024, representing a year-over-year increase of 6.2% from the corresponding period in 2023. The increase was primarily due to the growth of organized tours.

 

·

Other revenues were RMB26.7 million (US$3.8 million) in the third quarter of 2024, representing a year-over-year decrease of 5.1% from the corresponding period in 2023. The decrease was primarily due to the decrease in the fees for advertising services provided to tourism boards and bureaus.

 

Cost of revenues was RMB64.2 million (US$9.2 million) in the third quarter of 2024, representing a year-over-year increase of 1.2% from the corresponding period in 2023. As a percentage of net revenues, cost of revenues was 34.5% in the third quarter of 2024, compared to 35.6% in the corresponding period in 2023.

 

Gross profit was RMB121.8 million (US$17.4 million) in the third quarter of 2024, representing a year-over-year increase of 6.1% from the corresponding period in 2023.

 

¹ The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.0176 on September 30, 2024 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 RMB92.6 million (US$13.2 million) in the third quarter of 2024, representing a year-over-year increase of 11.5% from the corresponding period in 2023.

 

·

Research and product development expenses were RMB13.6 million (US$1.9 million) in the third quarter of 2024, representing a year-over-year decrease of 25.9%. The decrease was primarily due to the decrease in research and product development personnel related expenses. Research and product development expenses as a percentage of net revenues were 7.3% in the third quarter of 2024, decreasing from 10.3% as a percentage of net revenues in the corresponding period in 2023.

 

·

Sales and marketing expenses were RMB60.6 million (US$8.6 million) in the third quarter of 2024, representing a year-over-year increase of 53.0%. The increase was primarily due to the increase in promotion expenses. Sales and marketing expenses as a percentage of net revenues were 32.6% in the third quarter of 2024, increasing from 22.2% as a percentage of net revenues in the corresponding period in 2023.

 

·

General and administrative expenses were RMB18.6 million (US$2.7 million) in the third quarter of 2024, representing a year-over-year decrease of 31.3%. The decrease was primarily due to the reversal of allowance for doubtful accounts. General and administrative expenses as a percentage of net revenues were 10.0% in the third quarter of 2024, decreasing from 15.2% as a percentage of net revenues in the corresponding period in 2023.

 

Income from operations was RMB29.2 million (US$4.2 million) in the third quarter of 2024, compared to an income from operations of RMB31.7 million in the third quarter of 2023. Non-GAAP² income from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB31.3 million (US$4.5 million) in the third quarter of 2024.

 

Net income was RMB43.9 million (US$6.3 million) in the third quarter of 2024, compared to a net income of RMB39.1 million in the third quarter of 2023. Non-GAAP net income, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB46.0 million (US$6.6 million) in the third quarter of 2024.

 

Net income attributable to ordinary shareholders of Tuniu Corporation was RMB44.4 million (US$6.3 million) in the third quarter of 2024, compared to a net income attributable to ordinary shareholders of Tuniu Corporation of RMB39.4 million in the third quarter of 2023. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB46.6 million (US$6.6 million) in the third quarter of 2024.

 

As of September 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.3 billion (US$185.8 million).

 

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.

 

 

Business Outlook

 

For the fourth quarter of 2024, Tuniu expects to generate RMB100.0 million to RMB105.0 million of net revenues, which represents a 0% to 5% increase year-over-year compared with net revenues in the corresponding period in 2023. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.

 

Share Repurchase Update

 

In March 2024, the Company's Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$10 million worth of its ordinary shares or American depositary shares representing ordinary shares. As of November 30, 2024, the Company had repurchased an aggregate of approximately 6.2 million ADSs for approximately US$5.6 million from the open market under the share repurchase program.

 

Conference Call Information

 

Tuniu’s management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on December 5, 2024, (9:00 pm, Beijing/Hong Kong Time, on December 5, 2024) to discuss the third quarter 2024 financial results.

 

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

 

	United States	1-888-346-8982
	Hong Kong	852-301-84992
	Mainland China	4001-201203
	International	1-412-902-4272

 

Conference ID: Tuniu 3Q 2024 Earnings Conference Call

 

A telephone replay will be available one hour after the end of the conference call through December 12, 2024. The dial-in details are as follows:

 

	United States	1-877-344-7529
	International	1-412-317-0088

 

Replay Access Code: 6264965

 

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 integrated travel service with 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 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; Tuniu’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; government policies and regulations relating to Tuniu’s structure, business and industry; the impact of health epidemics 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 income from operations, net income, net income attributable to ordinary shareholders of Tuniu Corporation, which excludes share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. 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.

 

 

This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. Tuniu encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

 

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.

 

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, 2023				September 30, 2024				September 30, 2024
		RMB				RMB				US$
ASSETS
Current assets
Cash and cash equivalents			378,989				401,925				57,274
Restricted cash			65,902				24,946				3,555
Short-term investments			777,890				877,088				124,984
Accounts receivable, net			41,633				61,616				8,780
Amounts due from related parties			9,515				221				31
Prepayments and other current assets			234,189				224,144				31,940
Total current assets			1,508,118				1,589,940				226,564
Non-current assets
Long-term investments			209,819				210,991				30,066
Property and equipment, net			57,479				53,408				7,611
Intangible assets, net			26,091				23,154				3,299
Land use right, net			90,529				88,983				12,680
Operating lease right-of-use assets, net			12,484				9,892				1,410
Other non-current assets			55,960				30,548				4,353
Total non-current assets			452,362				416,976				59,419
Total assets			1,960,480				2,006,916				285,983
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities
Short-term borrowings			7,277				35				5
Accounts and notes payable			317,104				397,331				56,619
Amounts due to related parties			6,405				8,723				1,243
Salary and welfare payable			21,401				20,778				2,961
Taxes payable			4,305				2,265				323
Advances from customers			270,197				178,258				25,402
Operating lease liabilities, current			2,709				3,117				444
Accrued expenses and other current liabilities			329,481				323,590				46,110
Total current liabilities			958,879				934,097				133,107
Non-current liabilities
Operating lease liabilities, non-current			5,348				3,465				494
Deferred tax liabilities			6,027				5,338				761
Long-term borrowings			10,395				-				-
Total non-current liabilities			21,770				8,803				1,255
Total liabilities			980,649				942,900				134,362
Redeemable noncontrolling interests			27,200				27,200				3,876
Equity
Ordinary shares			249				249				35
Less: Treasury stock			(285,983	)			(316,943	)			(45,164	)
Additional paid-in capital			9,138,720				9,145,624				1,303,241
Accumulated other comprehensive income			305,416				304,892				43,447
Accumulated deficit			(8,127,552	)			(8,026,171	)			(1,143,720	)
Total Tuniu Corporation shareholders’ equity			1,030,850				1,107,651				157,839
Noncontrolling interests			(78,219	)			(70,835	)			(10,094	)
Total equity			952,631				1,036,816				147,745
Total liabilities, redeemable noncontrolling interests and equity			1,960,480				2,006,916				285,983

 

 

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
		September 30, 2023				June 30, 2024				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				US$
Revenues
Packaged tours			150,052				89,782				159,289				22,699
Others			28,139				27,155				26,706				3,806
Net revenues			178,191				116,937				185,995				26,505
Cost of revenues			(63,424	)			(32,530	)			(64,212	)			(9,150	)
Gross profit			114,767				84,407				121,783				17,355
Operating expenses
Research and product development			(18,400	)			(12,693	)			(13,640	)			(1,944	)
Sales and marketing			(39,583	)			(40,222	)			(60,578	)			(8,632	)
General and administrative			(27,089	)			(21,737	)			(18,600	)			(2,650	)
Other operating income			2,005				24,735				202				29
Total operating expenses			(83,067	)			(49,917	)			(92,616	)			(13,197	)
Income from operations			31,700				34,490				29,167				4,158
Other income/(expenses)
Interest and investment income, net			7,397				8,221				7,213				1,028
Interest expense			(1,102	)			(1,230	)			(865	)			(123	)
Foreign exchange gains/(losses), net			1,983				(1,282	)			1,115				159
Other income, net			1,687				1,822				6,931				988
Income before income tax expense			41,665				42,021				43,561				6,210
Income tax loss			(964	)			(459	)			(159	)			(23	)
Equity in (loss)/income of affiliates			(1,630	)			1,438				464				66
Net income			39,071				43,000				43,866				6,253
Net loss attributable to noncontrolling interests			(332	)			(22	)			(582	)			(83	)
Net income attributable to ordinary shareholders of Tuniu Corporation			39,403				43,022				44,448				6,336
Net income			39,071				43,000				43,866				6,253
Other comprehensive (loss)/income:
Foreign currency translation adjustment, net of nil tax			(1,413	)			4,301				(6,859	)			(977	)
Comprehensive income			37,658				47,301				37,007				5,276
Net income per ordinary share attributable to ordinary shareholders - basic and diluted			0.11				0.12				0.12				0.02
Net income per ADS - basic and diluted*			0.33				0.36				0.36				0.06
Weighted average number of ordinary shares used in computing basic income per share			371,473,030				363,061,543				357,427,106				357,427,106
Weighted average number of ordinary shares used in computing diluted income per share			374,615,685				365,317,172				359,607,726				359,607,726
Share-based compensation expenses included are as follows：
Cost of revenues			79				65				65				9
Research and product development			79				65				65				9
Sales and marketing			43				31				32				5
General and administrative			5,356				1,429				1,246				178
Total			5,557				1,590				1,408				201

 

*Each ADS represents three of the Company's ordinary shares.

 

 

Reconciliations  of GAAP and Non-GAAP Results

(All amounts in thousands, except per share information)

 

		Quarter Ended September 30, 2024
					Share-based			Amortization of acquired			Net gain on			Non-GAAP
		GAAP Result			Compensation			intangible assets			disposals of subsidiaries			Result
Income from operations			29,167			1,408			764			-			31,339
Net income			43,866			1,408			764			-			46,038
Net income attributable to ordinary shareholders			44,448			1,408			764			-			46,620

 

 

		Quarter Ended June 30, 2024
					Share-based			Amortization of acquired			Net gain on			Non-GAAP
		GAAP Result			Compensation			intangible assets			disposals of subsidiaries			Result
Income from operations			34,490			1,590			828			(24,618	)		12,290
Net income			43,000			1,590			828			(24,618	)		20,800
Net income attributable to ordinary shareholders			43,022			1,590			828			(24,618	)		20,822

 

		Quarter Ended September 30, 2023
					Share-based			Amortization of acquired			Net gain on			Non-GAAP
		GAAP Result			Compensation			intangible assets			disposals of subsidiaries			Result
Income from operations			31,700			5,557			828			-			38,085
Net income			39,071			5,557			828			-			45,456
Net income attributable to ordinary shareholders			39,403			5,557			828			-			45,788

 

 

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