TOUR - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello. And thank you for standing by for Tuniu's 2021 Second Quarter Earnings Conference Call. At t this time, all participants are in a listen-only mode. After management's prepared remarks there will be a question-and-answer session. Today's conference is being recorded. now for turn of today's Mary. would to meeting Investor I host your conference Instructions] like the to over Relations, [Operator call, Director

Mary Chen

you. quarter XXXX Thank to call. conference second welcome And earnings our

and the on Chen, Donald Founder, and today Joining Chief Controller. me Officer; call Executive Financial Yu, are Tuniu's Chairman Tuniu's Anqiang

will updates, second agenda, operation XXXX. of For quarter financial and management today's highlights discuss business the performance for

measures. call which non-GAAP as discussions safe Before will harbor to statement a applies non-GAAP to I to our press earnings of Please reconciliation continue, statements. this we forward-looking measures contains to our the release, we includes make release, GAAP Also, financial refer in call directly which most earnings of refer you this measures. certain comparable

unless all call the Executive and this note RMB. Officer; stated, in are Donald please Chairman mentioned call to would figures now to Finally, I Yu. Chief our Founder, conference that, like during over turn otherwise

Donald Yu

positive warm outbreak. the from [ph] for weather epidemic year-over-year achieved and since quarterly XXXX second our quarter up since our we Mary. our Good clear full you, the Thank operating second tours, industry recovery lowest XXX% growth last saw net increased XXX%. with in decreased the further packaged benefiting outbreak domestic pandemic XX% is quarter. trend This by quarter by day, and which was call. quarter, demand strict from the stabilized, revenue measures, a towards revenues the over Welcome first year and to The overall our COVID-XX tourism travel. expenses cost control In loss holiday Year-on-year, by second the earnings everyone. conference in with the

with has tours most high local proportion year, standing increased. consumption inter-provincial the for year, has high demand of year. compared steadily choose holiday, tours Also same quality travelers of tours period last the the tour last this during taking line in the increased take inter-provincial people with While the proportion public to products,

focus to to stagnation level core continuously We [ph] our development special business upgrade rapidly on demand of upstream. us business with This industry the our during recover continue our exciting to by allows and the opportunities emphasize of service. tax tour product

and and competitiveness high and expectations. even to Based to on our mode commitment satisfy demand, customer providing rules to core the is quality Our are our services protective customer Tuniu's travel products designed exceed customers.

Our mission. new asset have tour than designers in X product of production years more experience or

and internal production through high Both Our go quality strict job. are before tool they are on our officially would to logical subject the interviews procedures. procurement and for training new products - the

before our that rate products for products travel product creating be is to proud are they have launched, we We launched. sections reached XX%. fresh Our upgrade of to satisfaction bring new meet reach that always has before satisfaction tour by our strive products to their they also and been through innovations, our new new itineraries rate requirements being and ensuring to the customers. [ph] experience destination impacted can product customers XX% The our

growth. and top segments same and market selected attract customers tour on focus also we products addition, to customer In launched

tours tools pandemic team amid conferences for around people China's as tourist priority While is organized frame of stabilized the Due and tours. travel tour providing group for take situation services Also, to recovery, business in towards increasing. families standard demand with products with activities. see also self the their a in considerations of few form customers, we travel may are experience, remain that guided cities demand economic that for an customized a to and overall popular and we small more and the travel tours convenience of thrilling seeing and to building freedom with increase of are the customized

an with and across second able provider than require service products service. our China, outstanding offer Tuniu increasing prices quarter travel clients In travel extensive adherence good with pandemic generally since products tour quarter-on-quarter. with more to customized XXX% by customized competitive Good an is service tour growth a record the the business network As achieved service.

operators crucial zero through complaint customer initiative maintaining tour with local six role local of self-operated create our tour our local for zero Our improving year, This a records. we service. in operators excellent launched operators experience complaint tour

to expected We report achieve quarter, of operator to increased this products the our second we are will and hard to record. maintain GMV local that XXX% work continue tour Through efforts, in over pleased quarter-over-quarter the and pandemic occurred and disasters. service of XX%. and operator the overall outbreak year, reached Several rate tour this natural regional since local beginning have our events of satisfaction including

local during that we always self-operated get the to have supporting local property our response have time. city tour become emergency and powerful to most this operators helped [indiscernible] tourists, our and In situations, operators tour lives Our simply. ensure of some

their XX last out our member for pre-response While volume recognition tour continuously a Tuniu month packaged products where excellent and tour have over and times we every In day they with base. the members. quarter, have second providing reached member new difficulties, year. launched day By increasing day guest. and duties, our the our day highs. period transaction service, in same have cities July, local sales sales X built discounts we staff and single a our host large successfully million products customer member's of receiving carried the loyal [indiscernible] special RMB In products

security leverage In creative travel. domestic further risk we to self-audit automated outbreaks, terms travel In and pandemic and optimistic strengthened and continued order employees compliance. we experienced processing work, have information, China summer about market. replace however, order management several conducted flow In and project daily July, technology, and automate to soft to data the tourist may in inventory such as also remain, with task ensure more which workflows impact our have internal technical fixed of investing and We management.

difficulties. outbreak COVID-XX we since recovery. With of personnel last vaccination the enhancement retaining should many are measures, protection ongoing to continue year. the Our roll-out and temporary challenges And overcome industry confident domestic a tourism that any we has overcome strong will

services hard provide our quality Financial highlights. high the to will work turn the and products of will continue the Controller, now our demand Anqiang, and for to to customers. I financial We over call meet

Anqiang Chen

Donald. Thank everyone. you, Hello,

our of you walk in are results monetary XXXX stated. greater through all amounts I'll second in unless financial note quarter otherwise Now Please detail. the that RMB,

the find can equivalence in numbers our release. You US of the dollar earnings

Gross accounted our Other travel-related a million due RMB year-over-year. received total for XXX% year-over-year. RMB increase the representing of second insurance in to accounted the and in the The XXXX XXXX. net a total XX% was our Revenues from revenues net in revenues products XX% were revenues rise the to XXX fees The were growth for quarter to domestic from from growth increase tours. companies. increase of and second due million the RMB down to was for million, of For revenue. was of were packaged commission packaged second for up XX tours. and for XXXX RMB tours corresponding year-over-year XX.X other revenues service period XX% to were year-over-year Operating XXXX, up the RMB from primarily XX% of XXX% of was the received for quarter primarily million, net The year-over-year increase quarter quarter. XXX.X fees due XX.X demand XXX% primarily profit from expenses million, in up

decrease and for intangible administrative Excluding to to the primarily assets, decrease in decrease The a was down was and operating research attributable XX.X (sic) were and XX%. amortization million, expenses XXXX. net million, in marketing of product shareholders, general loss was were attributable the XX% to due second and expenses expenses. expenses. the RMB assets XXXX. RMB second quarter share-based of year-over-year which and intangible marketing XX.X expenses second XX.X for second XXXX XX.X quarter year-over-year. the of for administrative in the acquired of sales compensation non-GAAP related product Net year-over-year. intangible XX% was development were primarily to decrease acquired was loss of expenses Non-GAAP of to expenses quarter down Research XX.X million year-over-year. amortization million, development RMB and decrease and were shareholders decrease the amortization expenses representing excluded personnel expenses due XX% second quarter acquired compensation in Sales decrease primarily of The [XXXX] RMB and related the personnel million XXXX and RMB share-based ordinary due of quarter of down in the related personnel million, General RMB The assets. XXXX X.X

equivalents, had second As the were flow XX, restricted cash of the billion. XXXX, quarter of million. of investments operations XX.X cash RMB for million. XXXX for short-term and Capital RMB X.X Cash RMB XXXX was expenditures from second and generated cash quarter X.X the of June Company

to generate and to of expects the impact Please COVID-XX. on the preliminary revenues, industry XXX.X by forecast which its quarter tourist reflects Thank view decrease the Tuniu's XX% net and of particularly subject million for change, brought represents which company the XXXX, you to is For to of XXX.X that note X% RMB uncertainties as listening. current operations, the million third year-over-year. RMB

ready questions. We your are for now Operator?

Operator

Instructions] take Investor. ahead. is Tina a who go Bide Thank Please can first Private [ph] you. now We [Operator the from question

Unidentified Analyst

Tina your regarding quarter? Would my how several what it recovery does industry? strong question is the is Congratulations your in you. your core Thank And please the us of in And speaking to view Hi, China, recent third you. share is destinations? Bide quarter. [indiscernible] Thank the mid of coronavirus with on long-term outbreak of This impact cities towards the across travel second you second management. the development performance the

Donald Yu

the you travel recovery Thank quarter, very external positive industry. In the was the the second environment for question. for of

with resumption serviceability, social to channels destination as our to fact, tour in provide will online Also, sales We've customized and traditional part retain life on in also strengthening travel add customer adapted more advisers to as enhance such Taiko In July. training sales media report our show. cycle from since management four the our and app, the staff their and the customers. method inter-province ever knowledge such last we new - gain streaming channels live of services

revenues during tours largely grew result, our revenues, As quarter. the a the especially packaged from

by destinations Shanghai short [ph] were of quarter. Xinjiang. boosted our of one was GMV, during travel which good the theme famous And terms followed the holidays have both and of packaged [ph] the and leisure by parks best [indiscernible] in Other tour Yunnan In for for in the Guandong families and Sichuan most destinations Hainan, [ph] popular included with and destination the China, culture site then [indiscernible] children. popular Guangzhou

on For the yes, industry COVID-XX impact cities several China during across the negative travel season. had the the peak recent second question, in outbreaks

summer In outbreak fact, late in due showed growth before vacation the the travel rapid market to the July.

and July year-over-year basis. tour both quarter-over-quarter Our in increased generally

to third the quarter customers, provinces considering Therefore, same interest align in of mid-July. issue been have safety to we decrease with ensure year-over-year. since and the After However, reschedule expect the to or priority the for year of travel inter-province net is the trips. and outbreak last some first ceased period having XX% done our their refund up the virus July, the our safety revenue

of our clean We new, including service, ATG with destination [ph] also testing. upgraded customers

both and safer. employees, try worked Our and clock destinations to customers headquarter emergencies the them in help to and any around shifts earlier in the send with at our on

we March. launched three they products a two better then about months will the customers, also departing have change time departure younger may the current favorable and or flexible we accordingly. The products, to economical generation. enjoying a plan. only with can means In fixed their confirmation their trip customer welcomed the full product they all if general, when especially term gets at For we is now exact the itinerary trips we by industry, The customer price vaccine. any cancel environment They needs orders always book date, without refund, rebound the the the about and are record recession still or during the January second arrange positive departure despite experienced and time the since demand short in its date make this external for which the advance, there, in February, a

under better. you. the control, get will pandemic the being and better market With Thank

Operator

now Mary further any no questions. to Chen appears over turn [Operator like time, remarks. back for to or at Instructions] I'd closing this are the It additional call there

Mary Chen

further again, the you us and joining months. Once for today. any your to continued to in Thank support, contact speaking questions. have thank look you for forward don't Please we hesitate coming us you with you if

Operator

the Thank you concludes conference. presentation. This your today's for in participation

You day. may Good now disconnect.

Tuniu (TOUR) 23 Aug 212021 Q2 Earnings call transcript