Tuniu Corp (TOUR) 2023 Q1 法說會逐字稿

Hello, and thank you for standing by for Tuniu's 2023 First Quarter Earnings Conference Call. (Operator Instructions) Today's conference is being recorded. (Operator Instructions).

您好，感謝您出席途牛2023年第一季度業績電話會議。 （操作員指示）今天的會議正在錄製。 （操作員說明）。

I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Mary.

現在我想將會議交給今天電話會議的主持人投資者關係總監瑪麗。

Thank you and welcome to our 2023 1st quarter earnings conference call. Joining me on the call today are Donald Yu, Tuniu's Founder, Chairman and Chief Executive Officer; and Anqiang Chen, Tuniu's Financial Controller.

感謝並歡迎參加我們的 2023 年第一季度收益電話會議。今天和我一起參加電話會議的還有途牛創始人、董事長兼首席執行官唐納德·餘 (Donald Yu)；陳安強，途牛財務總監。

For today's agenda, management will discuss business updates, operation highlights and financial performance for the first quarter of 2023. Before we continue, I refer you to our safe harbor statement in the earnings press release, which applies to this call as we will make forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.

在今天的議程中，管理層將討論2023 年第一季度的業務更新、運營亮點和財務業績。在我們繼續之前，我請您參閱收益新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將在看起來的陳述。此外，本次電話會議還討論了某些非公認會計準則財務措施。請參閱我們的收益報告，其中包含非公認會計準則衡量標準與最直接可比的公認會計準則衡量標準的調節表。

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

最後請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣為單位。我現在想把電話轉給我們的創始人、董事長兼首席執行官唐納德·餘 (Donald Yu)。

Thank you, Mary. Good day, everyone. Welcome to our first quarter 2023 earnings conference call. We are pleased to see that 2023 has kicked off with a robust recovery in China's travel industry and the solid first quarter of positive growth for Tuniu.

謝謝你，瑪麗。今天是個好日子。歡迎參加我們的 2023 年第一季度收益電話會議。我們很高興地看到，2023年已經拉開帷幕，中國旅遊行業強勁復甦，途牛一季度也實現了穩健的正增長。

Our net revenue grew 52% year-over-year for the quarter with revenues from package tours growing 179% year-over-year. Total travel GMV maintained triple-digit growth year-over-year during both April and May.

本季度我們的淨收入同比增長 52%，其中跟團旅遊收入同比增長 179%。 4 月和 5 月，總旅遊 GMV 同比保持三位數增長。

In the first quarter, the improvement in the external environment was (inaudible) by the release of consumers' pent-up demand for travel. Beyond the business travel and the family business, the number of leader and vocation trips increased significantly. During this year's Labor Day holiday, we saw a threefold growth in our number of trips compared to the previous year.

一季度，外部環境的改善（聽不清）是消費者壓抑的出行需求得到釋放。除了商務旅行和家族企業之外，領導和度假旅行的數量也大幅增加。今年五一假期，我們的出遊次數比去年增長了三倍。

Building on the strong beginning to the year, we plan to capitalize on [active] capabilities of both upstream and downstream sectors to expect our business recovery. Additionally, we will continue to enhance internal operations through digitalization, aiming to continuously intense efficiency.

在今年強勁開局的基礎上，我們計劃利用上下游部門的[活躍]能力來預期我們的業務復甦。此外，我們將繼續通過數字化提升內部運營，持續提升效率。

In terms of our products, we firmly believe that excellent products [sold] as a competitive advantage for Tuniu and we are committed to the development of our in-house products. For example, our new tool products, which target as the mid- to high-end market, employ direct procurement strategy that includes higher-than-average standards for our conditions and the dining.

在產品方面，我們堅信優秀的產品是途牛的競爭優勢，我們致力於自有產品的開發。例如，我們的新工具產品定位於中高端市場，採用直接採購策略，包括高於平均水平的條件和餐飲標準。

We also closely monitor factors that may impact customer experience, allowing us to design products that stand out in the market. As a result, we have gained a favorable reputation among customers for high-quality experiences and services.

我們還密切監控可能影響客戶體驗的因素，使我們能夠設計出在市場上脫穎而出的產品。因此，我們以優質的體驗和服務在客戶中贏得了良好的聲譽。

New tour products are not only fueled by two new members, but are also popular across channels such as live streaming shows and off-line shows by both customers and our value partners. While we collaborate with a wide range of suppliers to diversify our product offerings and the destinations, we always maintain strict supplier selection criteria to ensure that our customers receive products of the utmost quality.

新的旅遊產品不僅由兩位新成員推動，而且在直播和線下演出等渠道中受到客戶和我們的價值合作夥伴的歡迎。雖然我們與廣泛的供應商合作以使我們的產品供應和目的地多樣化，但我們始終保持嚴格的供應商選擇標準，以確保我們的客戶收到最優質的產品。

We are also actively pursuing opportunities in the upstream segment of the industry chain and implementing an asset-light model to operate our own B&Bs. Our third self-operated B&B successfully commenced operations in Nanjing during the first quarter. During the peak of this Labor Day holiday, both of our B&Bs that were opened during the presenting years were fully booked. While our newly booked B&B also achieved an impressive occupancy rate, exceeding 17%.

我們還積極尋找產業鏈上游的機會，實行輕資產模式經營自有民宿。我們的第三家自營民宿於第一季度在南京成功開業。在這個五一假期的高峰期，我們今年開業的兩家民宿都被訂滿了。而我們新預訂的民宿也取得了令人印象深刻的入住率，超過了17%。

Recognizing the integral role of hotels in the destination services. We are committed to further promoting our self-operated B&B at a constant and [measured] pace. Regarding our sales channels, we have successfully built a comprehensive sales network encompassing various dimensions. This includes direct sales and distribution channels, both online and offline. The (inaudible) to the needs of both private and corporate customers and in line with the changes in consumption habits postpandemic, we have also incorporated emerging channels such as live streaming shows and social marketing tools to better introduce our product to customers.

認識到酒店在目的地服務中不可或缺的作用。我們致力於以持續且[謹慎]的步伐進一步推廣我們的自營民宿。在銷售渠道方面，我們已成功構建了全方位、全方位的銷售網絡。這包括線上和線下的直銷和分銷渠道。 （聽不清）針對私人和企業客戶的需求，並配合疫情后消費習慣的變化，我們還結合了直播節目和社交營銷工具等新興渠道，更好地向客戶介紹我們的產品。

For over a decade, Tuniu has maintained a dedicated team of experienced travel advisers to offer comprehensive assistance throughout the entire booking process, including travel planning, consultations and order placement. In 2020, we initiated a strategic push to integrate automation technology into our sales operations, thereby streamlining certain simple and repetitive tasks through machine-based solutions. This initiative has significantly enhanced the efficiency of our travel adviser team.

十多年來，途牛擁有一支由經驗豐富的旅行顧問組成的專業團隊，在整個預訂過程中提供全面的幫助，包括旅行計劃、諮詢和下單。 2020年，我們發起了一項戰略推動，將自動化技術整合到我們的銷售運營中，從而通過基於機器的解決方案簡化某些簡單和重複的任務。這一舉措顯著提高了我們旅行顧問團隊的效率。

In the first quarter, as our business rebounded, we witnessed a substantial increase in inquiries and orders. In addition to our team, our professional travel advisers, we also have a loyalty program that ensures -- that enables us to provide our members with more personalized and exclusive customer service experience. Thanks to the dedicated efforts of our membership team, we have successfully cultivated a large base of loyal users who have played a significant role in boosting our transaction volume upon the resumption of travel activities.

一季度，隨著業務回升，詢盤和訂單大幅增加。除了我們的團隊、專業旅行顧問之外，我們還擁有忠誠度計劃，確保我們能夠為會員提供更加個性化和獨特的客戶服務體驗。經過會員團隊的不懈努力，我們成功培養了一大批忠實用戶，為旅行活動恢復後交易量的提升發揮了重要作用。

In the first 5 months of this year, we achieved a record breaking monthly sales on our membership days. And in May, the transaction value of our membership days exceeded RMB 30 million. And with the long-term trust our members have developed in our products and services, some of them even opted for higher priced premium offerings such as (inaudible) to products.

今年前5個月，我們的會員日月銷售額創歷史新高。 5月份，會員日交易額突破3000萬元。隨著我們的會員對我們的產品和服務的長期信任，他們中的一些人甚至選擇了價格更高的優質產品，例如（聽不清）產品。

Outstreaming has emerged as a dynamic scale method in recent years. And through 3 years of effort, we have successfully established our own live streaming team and developed over 40 live streaming accounts covering multiple areas, ensuring a strong presence on popular media platforms.

近年來，外包已成為一種動態規模方法。經過3年的努力，我們已經成功組建了自己的直播團隊，並開發了40多個覆蓋多個領域的直播賬號，在各大主流媒體平台上擁有了強大的影響力。

Currently, our live streaming shows constantly ranked among the top ENO performers in terms of sales within Douyin lifestyle services category. In the first quarter, we expanded our reach to the supply side. And in April, we secured the third position nationwide among Douyin's hotel and travel suppliers rankings.

目前，我們的直播節目在抖音生活服務類別中的銷售額方面一直位居ENO表現前列。一季度，我們向供給側拓展。 4月份，我們在抖音酒店及旅遊供應商排行榜中獲得全國第三名。

In addition to our online streaming shows, we are actively collaborating with external experiences to promote our core products by incorporating an increased share of new tool products in our live product offerings. We are effectively driving sales through enhanced the brand influence. Through leveraging our own large streaming shows and the influencer partnerships, new tool products were live streamed on the Douyin platform over 300 times in April alone, generating a total GMV of over RMB 30 million.

除了我們的在線流媒體節目外，我們還積極與外部體驗合作，通過在我們的直播產品中增加新工具產品的份額來推廣我們的核心產品。我們通過提升品牌影響力有效拉動銷售。通過利用自有大型直播和網紅合作，新工具產品僅4月份就在抖音平台直播超過300次，總GMV超過3000萬元。

In addition to our direct sales network, we employ multiple channels to distribute our travel products, including B2B platforms, social marketing tools and off-line source. This distribution strategy not only allows us to reduce inventory pressure, but also give us more ways to reach our customers.

除了我們的直銷網絡外，我們還利用多種渠道來分銷我們的旅遊產品，包括B2B平台、社交營銷工具和線下資源。這種分銷策略不僅使我們能夠減輕庫存壓力，而且還為我們提供了更多接觸客戶的方式。

Currently, our distribution focus is primarily on high ASP packaging travel products like (inaudible) the [Maldives] category as well as single resource offerings such as high-end results. This highlights the importance of offering superior products to succeed in the market. Moreover, we extend support to our partners in the form of content, information and technology to help them better serve customers.

目前，我們的分銷重點主要是高平均售價包裝旅遊產品，例如（聽不清）[馬爾代夫]類別以及單一資源產品，例如高端結果。這凸顯了提供優質產品以在市場上取得成功的重要性。此外，我們還通過內容、信息和技術等形式向合作夥伴提供支持，幫助他們更好地服務客戶。

In terms of technology, we continue to increase automation and have improved our internal operation efficiency. In the first quarter, our net revenues increased by 52% year-over-year, while total operating expenses decreased by 19% year-over-year. We will continue to leverage technology to reduce cost and increase its efficiency. For example, we are taking advantage of our dynamic packaging technology to introduce more quality resources to our guests at a better price, while our guests are offered to create their own packaged products by themselves to reduce internal labor costs.

在技​​術方面，我們不斷提高自動化程度，提高內部運作效率。第一季度，我們的淨收入同比增長52%，而總運營費用同比下降19%。我們將繼續利用技術來降低成本並提高效率。例如，我們利用動態包裝技術，以更優惠的價格向客人引入更多優質資源，同時讓客人自己製作自己的包裝產品，以減少內部勞動力成本。

Starting this year, we are also leveraging our technology strategy to improve user experience and conversion rate by upgrading our website at and [WeChat] mini program. Since our establishment, Tuniu has maintained a strong focus on the leader and vocation sector aiming to provide Chinese travelers with more convenient and enjoyable travel experiences.

從今年開始，我們還利用技術策略，通過升級網站和【微信】小程序來提高用戶體驗和轉化率。自成立以來，途牛一直專注於高端旅遊領域，旨在為中國旅行者提供更便捷、更愉快的旅行體驗。

To achieve this growth, we have constantly -- it's for both the upstream and downstream segments of the industry chain, resulting in an innovative business model that integrates product development, supply management and sales. This unique approach sets us apart from other travel companies and so as a fundamental advantage for our growth.

為了實現這種增長，我們不斷地——針對產業鏈的上下游環節，形成集產品開發、供應管理和銷售於一體的創新商業模式。這種獨特的方法使我們有別於其他旅遊公司，因此成為我們發展的基本優勢。

As an Internet company, we firmly believe in the transformative power of technology. By embracing digital technology, we not only strengthen our own operations but also deliver enhanced benefits to our customers. Leveraging our strength and advantages, we are determined to capitalize on the industry's recovery, positioning our business for a robust, rebound and sustainable growth.

作為一家互聯網公司，我們堅信技術的變革力量。通過採用數字技術，我們不僅加強了自身的運營，還為客戶帶來了更大的利益。我們決心利用自身的實力和優勢，抓住行業復甦的契機，實現業務的強勁、反彈和可持續增長。

I will now turn the call over to Anqiang, our Financial Controller, for the financial highlights.

我現在將電話轉給我們的財務總監安強，了解財務要點。

Thank you, Dunde. Hello, everyone. Now I'll walk you through our first quarter of 2023 financial results in greater detail. Please note that all the monetary amounts are in RMB unless otherwise stated. You can find the U.S. dollar equivalent of the numbers in our earnings release.

謝謝你，鄧德。大家好。現在，我將向您詳細介紹 2023 年第一季度的財務業績。請注意，除非另有說明，所有金額均以人民幣為單位。您可以在我們的財報中找到與這些數字等值的美元。

For the first quarter of 2023, net revenues were RMB 63.2 million, representing a year-over-year increase of 52% from the corresponding period in 2022. The increase was primarily due to the growth in revenues from packaged tours. Revenues from packaged tours were up 179% year-over-year to RMB 40.1 million and accounted for 64% of our total net revenues for the quarter. The increase was primarily due to the growth of organized tours.

2023年第一季度，淨收入為人民幣6,320萬元，較2022年同期增長52%。增長主要得益於跟團遊收入的增長。跟團旅遊收入同比增長 179% 至人民幣 4,​​010 萬元，佔本季度總淨收入的 64%。這一增長主要是由於跟團旅遊的增長。

Other revenues were down 15% year-over-year RMB 23.1 million and accounted for 36% of our total net revenues. The decrease was primarily due to the decrease in commission fees received from other travel-related products and the revenues generated from financial services.

其他收入同比下降 15%，為 2310 萬元人民幣，占我們總淨收入的 36%。減少的主要原因是其他旅遊相關產品的佣金費用以及金融服務收入的減少。

Gross profit for the first quarter of 2023 was RMB 38.9 million, up 146% year-over-year. Operating expenses for the first quarter of 2023 were RMB 55.9 million, down 19% year-over-year.

2023年第一季度毛利潤為人民幣3890萬元，同比增長146%。 2023年第一季度運營費用為5590萬元人民幣，同比下降19%。

Research and product development expenses for the first quarter of 2023 were RMB 14.3 million, down 11% year-over-year. The decrease was primarily due to the decrease in research and product development personnel-related expenses. Sales and marketing expenses for the first quarter of 2023 were RMB 20 million, down 33% year-over-year. The decrease was primarily due to the decrease in sales and marketing personnel-related expenses.

2023年第一季度研究與產品開發費用為人民幣1430萬元，同比下降11%。減少的主要原因是研究和產品開發人員相關費用減少。 2023年第一季度銷售及營銷費用為人民幣2000萬元，同比下降33%。減少的主要原因是銷售和營銷人員相關費用的減少。

General and administrative expenses for the first quarter of 2023 were RMB 22.3 million, down 19% year-over-year. The decrease was primarily due to the decrease in general and administrative personnel-related expenses.

2023年第一季度管理費用為人民幣2230萬元，同比下降19%。減少的主要原因是一般及行政人員相關費用減少。

Net loss attributable to ordinary shareholders was RMB 7 million in the first quarter of 2023. Non-GAAP net loss attributable to ordinary shareholders which excluded share-based compensation expenses and amortization of acquired intangible assets was RMB 5.4 million in the first quarter of 2023.

2023年第一季度歸屬於普通股股東的淨虧損為人民幣700萬元。2023年第一季度非公認會計原則歸屬於普通股股東的淨虧損（不包括股權激勵費用和收購無形資產攤銷）為人民幣540萬元。

As of March 30, 2023, the company had cash and cash equivalents, restricted cash and short-term investments of RMB 960.2 million. Cash flow generated from operations for the first quarter of 2023 was RMB 11.6 million. Capital expenditures for the first quarter of 2023 were RMB 1 million.

截至2023年3月30日，公司擁有現金及現金等價物、限制性現金及短期投資人民幣9.602億元。 2023年第一季度運營產生的現金流為人民幣1160萬元。 2023年第一季度資本支出為人民幣100萬元。

For the second quarter of 2023, the company expects to generate RMB 88.7 million to RMB 92.4 million of net revenues, which represents a 140% to 150% increase year-over-year. Please note that the forecast referenced Tuniu's current and preliminary view on the industry and its operations, which is subject to change. Thank you for listening. We are now ready for your questions. Operator?

2023年第二季度，公司預計淨收入為8870萬元至9240萬元人民幣，同比增長140%至150%。請注意，該預測參考了途牛對行業及其運營的當前和初步看法，該看法可能會發生變化。感謝您的聆聽。我們現在已準備好回答您的問題。操作員？

(Operator Instructions) The first question comes from Elsa Lee of Private Investor.

（操作員說明） 第一個問題來自 Private Investor 的 Elsa Lee。

I have some questions for you. Firstly, how is the recent recovery of your domestic and outbound business? And what is the proportion of outbound tourism in your revenues from packaged tours? And what are the top destinations?

我有一些問題想問你。首先，請問貴公司境內外業務近期恢復情況如何？出境游佔你們跟團遊收入的比例是多少？最熱門的目的地是哪些？

And my second question is regarding profitability outlook. The gross profit margin increase and net loss decreased in the first quarter. What are the drivers for the margin improvement? What is the margin trend in the following quarters? Is it [fruitful] to achieve profitability this year or even in a single quarter? Thank you.

我的第二個問題是關於盈利前景。第一季度毛利率上升，淨虧損下降。利潤率改善的驅動因素是什麼？接下來幾個季度的利潤率趨勢如何？今年甚至單季度能否實現盈利？謝謝。

Thank you for the questions. Firstly, we see the enthusiasm for travel continues to rise in the second quarter. We expect our net revenues to increase about 140% to 150% year-over-year in the second quarter and revenues from packaged tours to grow at a higher rate.

謝謝你的提問。首先，我們看到二季度旅遊熱情持續高漲。我們預計第二季度淨收入將同比增長約140%至150%，而跟團旅遊收入將以更高的速度增長。

Domestic tours currently contribute to the majority of our revenues. Compared to last year, long distance travel is gaining popularity this year. Bookings of some destinations in Xinjiang and Northwest China have reached or even surpassed 2019 level. For traditional hot destinations such as (inaudible) and Hainan, we targeted at mid- to high-end market with products focusing on visiting and experiencing. For example, we have launched a certain new tour itineraries with zero shopping trying to provide clients with enjoyment of pure travel.

目前國內旅遊貢獻了我們的大部分收入。與去年相比，今年長途旅行越來越受歡迎。新疆、西北地區部分目的地預訂量已達到甚至超過2019年水平。對於（聽不清）、海南等傳統熱門目的地，我們定位中高端市場，產品以參觀體驗為主。比如我們推出了一些新的零購物旅遊線路，力求為客戶提供純粹的旅行享受。

Outbound tours was accounted for a single-digit percent of our packaged tour revenues in the first quarter and the proportion will continue to grow in the second quarter. The overseas destination popularity may depend on various factors apart from tourist's preference, such as airline capacity and the complexity of visa applications.

第一季度出境游占我們跟團遊收入的個位數百分比，第二季度這一比例將繼續增長。海外目的地的受歡迎程度可能取決於遊客偏好之外的多種因素，例如航空公司運力和簽證申請的複雜程度。

In the first quarter, our top overseas destination is Maldives, followed by Southeast Asia, Middle East and Africa [sold] since March. In May, we launched our first new tour product to Europe after the pandemic. For Europe, we have been a promising destination in the second half of the year.

第一季度，我們的首要海外目的地是馬爾代夫，自 3 月份以來，其次是東南亞、中東和非洲。 5月，我們推出了疫情后首個前往歐洲的新旅遊產品。對於歐洲來說，我們是下半年充滿希望的目的地。

For the second question, yes, we expect our gross margin to remain at a higher level than the previous year. That comes from two parts. First, as our business gets on track after the pandemic, our revenues will gradually recover. In particular, we will leverage brand assets to expand the sales of our self-operated products, which have a higher take rate to other channels. For example, [New Tour] our own branded product is welcomed by our partners at channels such as off-line stores and live streams because they differentiated product with a trusted brand and a high satisfaction rate.

對於第二個問題，是的，我們預計我們的毛利率將保持在比上一年更高的水平。這來自兩個部分。首先，隨著疫情過後我們的業務步入正軌，我們的收入會逐漸恢復。特別是，我們將利用品牌資產擴大自營產品的銷售，這些產品在其他渠道的佔有率較高。例如，我們的自有品牌產品【新遊】，憑藉品牌值得信賴、滿意度高的差異化產品，在線下門店、直播等渠道受到了合作夥伴的歡迎。

Second, we will continue to control the cost of sales through digitalization. We use automation technology to replace our staff in simple and [repeated] works and assisting them in competitive works so that our revenues may increase faster than headcount as business recovers.

其次，我們將繼續通過數字化來控制銷售成本。我們利用自動化技術來代替員工從事簡單、重複的工作，並協助他們從事有競爭力的工作，這樣隨著業務的複蘇，我們的收入增長速度可能會快於員工人數的增長。

In the first quarter, our operating cash flow turned positive, and we will try to keep the trend in the following quarter. We are also trying our best to narrow the loss in the hope of achieving non-GAAP profitability for a single quarter of this year, probably in the third quarter. Thank you.

一季度我們的經營現金流轉為正值，下季度我們將努力保持這一趨勢。我們也在盡力縮小虧損，希望能夠在今年一個季度（可能是第三季度）實現非公認會計準則盈利。謝謝。

(Operator Instructions) We are now approaching the end of the conference call. I will now turn the call over to Tuniu's Director of Investor Relations, Mary, for closing remarks.

（操作員指示）電話會議即將結束。現在我將把電話轉給途牛投資者關係總監 Mary 進行總結髮言。

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

再次感謝您今天加入我們。如果您還有任何疑問，請隨時與我們聯繫。感謝您一直以來的支持，我們期待在未來幾個月與您交談。

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.

感謝您參加今天的會議。演示到此結束。您現在可以斷開連接。再會。