Tuniu Corp (TOUR) 2023 Q2 法說會逐字稿

Good day, and welcome to the Tuniu '23 Q2 Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Mary Chen, Investor Relations Director. Please go ahead.

大家好，歡迎參加途牛'23第二季度電話會議。 （操作員說明）請注意此事件正在被記錄。我現在將會議交給投資者關係總監 Mary Chen。請繼續。

Thank you, and welcome to our 2023 second 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. For today's agenda, management will discuss business updates, operational highlights and financial performance for the second quarter of 2023.

謝謝，歡迎參加我們的 2023 年第二季度收益電話會議。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。在今天的議程中，管理層將討論 2023 年第二季度的業務更新、運營亮點和財務業績。

Before we continue, I refer you to our safe harbor statements in the earnings press release, which applies to this call as we will make forward-looking statements. Although 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. Finally, please note that unless otherwise stated, all figures mentioned during this call are in RMB. I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Yu.

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，因為我們將做出前瞻性聲明。儘管本次電話會議包括對某些非公認會計原則財務指標的討論，但請參閱我們的收益發布，其中包含非公認會計原則指標與最直接可比的公認會計原則指標的調節表。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 second quarter 2023 earnings conference call. In the second quarter, Tuniu's business experienced a rapid recovery and delivered robust results, building on the strong momentum we saw in the first quarter. Our net revenues beat our previous guidance, growing by 170% year-over-year for the quarter with revenues from packaged tours growing even faster at 632% year-over-year.

謝謝你，瑪麗。今天是個好日子。歡迎參加我們的 2023 年第二季度收益電話會議。第二季度，途牛業務在第一季度強勁勢頭的基礎上快速復蘇，取得了強勁的業績。我們的淨收入超出了之前的指導，本季度同比增長 170%，其中跟團旅遊收入增長更快，同比增長 632%。

In this year -- in this quarter, we achieved our first operating profit since Tuniu's listing and the first net income since the pandemic outbreak, both on GAAP and non-GAAP basis. By leveraging Tuniu's advantages in product, pricing and sales channels, we have been able to continuously increase our profitability. We also focused on improving internal operational efficiencies through the implementation of our technology tools. During the quarter, our gross margin improved to 65%, up from 45% during the same period last year. Additionally, we have maintained positive operating cash flow for two consecutive quarters.

今年這個季度，我們實現了途牛上市以來的首次營業利潤，以及疫情爆發以來的首次淨利潤，無論是按公認會計原則還是非公認會計原則。借助途牛在產品、定價和銷售渠道方面的優勢，我們能夠不斷提高盈利能力。我們還致力於通過實施我們的技術工具來提高內部運營效率。本季度，我們的毛利率從去年同期的 45% 提高至 65%。此外，我們連續兩個季度保持正運營現金流。

The encouraging results from this quarter, [domestic] Tuniu is overcoming the negative impact of the pandemic, and we are now one step closer to realize our goal of sustained growth and long-term profitability. In the second quarter, people's enthusiasm for traveling (inaudible) with a warm weather and upcoming holidays. In response to the increase in mass market demand for travel products in terms of both, quantity and quality, our strategy has been to focus our in-house offerings on the most popular travel products and to meet diverse customer demand through collaborations with suppliers. To be more specific regarding our in-house products, Tuniu follows strict quality standards for product development and provide industry-leading services for a selection of popular travel destinations and routes.

從本季度的成績來看，途牛正在克服疫情的負面影響，距離實現持續增長和長期盈利的目標又近了一步。第二季度，隨著天氣溫暖和假期即將到來，人們的出行熱情（聽不清）。為了應對大眾市場對旅遊產品的數量和質量的需求不斷增長，我們的策略是把我們的內部產品集中在最受歡迎的旅遊產品上，並通過與供應商的合作來滿足多樣化的客戶需求。具體來說，途牛的自有產品遵循嚴格的產品開髮質量標準，為精選的熱門旅遊目的地和線路提供行業領先的服務。

During the quarter, our new tour series launched a large number of routes [without] planned shopping activities, resulting in an impressive 98% customer satisfaction rate. Notably, several traffic-neutral itineraries in Europe which were launched in the second quarter were nearly fully booked with tours scheduled through September.

本季度，我們的新旅遊系列推出了大量沒有計劃購物活動的路線，客戶滿意度高達 98%。值得注意的是，第二季度推出的幾條歐洲交通中性行程幾乎已全部預訂至9月份的行程。

Regarding profitability, Tuniu leverages our scale advantages to effectively reduce the resource procurement costs for our in-house products. And our focus on product differentiation helps minimize the risk of price competition, leading to higher take rates for our in-house products. We also continue to expand our collaborations with a diverse range of suppliers to offer our customers an extended range of our long-tail products.

在盈利能力方面，途牛利用規模優勢，有效降低自有產品的資源採購成本。我們對產品差異化的關注有助於最大限度地降低價格競爭的風險，從而提高我們內部產品的採用率。我們還繼續擴大與各種供應商的合作，為客戶提供更廣泛的長尾產品。

Customized tours are increasingly popular due to the public's growing demand for higher-quality travel experiences. In the second quarter, Tuniu's [category] for customized tours increased by more than 100% compared to the previous quarter. The primary customer base for private customized tours in the middle to upper class as well as our repeat customers, who often travel with their family and friends. And the tour destinations have expanded from domestic to international markets.

隨著公眾對更高品質旅遊體驗的需求不斷增長，定制遊越來越受歡迎。第二季度，途牛定制遊【品類】環比增長超100%。私人定制遊的主要客戶群是中上階層以及經常與家人和朋友一起旅行的回頭客。旅遊目的地也從國內市場拓展到國際市場。

Corporate travel (inaudible) peak season during springtime with a notable increase in of team-building trips and incentive trips organized for companies in first and second-tier cities. Customized tours constantly achieve a higher take rate compared to standard products, mainly due to value-added services. In addition, our self-operated local tour operators also provide services for customizing tours, helping to ensure high-quality service and additional profitability.

春季商務旅行（聽不清）旺季，一二線城市企業團建遊、獎勵遊明顯增多。與標準產品相比，定制旅遊不斷獲得更高的接受率，這主要歸功於增值服務。此外，我們自營的當地旅行社還提供定制旅遊服務，有助於確保高質量的服務和額外的盈利能力。

In terms of sales channels, our diverse sales network allow us to reach more customers. One of Tuniu's key competitive advantages lie in providing our professional team of tour adviser. In the second quarter, we continued to improve the efficiency of our tour advisers through developing new tech tools. And the sales per employee experienced a significant increase year-over-year, surpassing the previous quarter. We remain committed to strengthening our team-building efforts through destination-based training, both, online and offline, to our staff to enhance their business capabilities. And we are seeing that new staff are able to become more productive with the help of our training and technology tools.

在銷售渠道方面，我們多元化的銷售網絡使我們能夠接觸到更多的客戶。途牛的主要競爭優勢之一在於提供專業的旅遊顧問團隊。第二季度，我們通過開發新技術工具繼續提高導遊的效率。員工人均銷售額同比大幅增長，超過上一季度。我們始終致力於加強團隊建設，通過線上線下的目的地培訓，提升員工的業務能力。我們看到新員工在我們的培訓和技術工具的幫助下能夠提高工作效率。

Our repeat customers have competently showed great trust and support for Tuniu, largely due to our membership-based loyalty program. This year, the contribution of our regular customers to the overall GMV remained at over 70%. During the first half of this year, the total GMV and GMV of packaged tours [stood] on our membership day every month maintained steady growth.

我們的回頭客對途牛表現出了極大的信任和支持，這很大程度上歸功於我們基於會員的忠誠度計劃。今年，老客戶對整體GMV的貢獻保持在70%以上。今年上半年，我們的總GMV以及每個月會員日跟團遊的GMV均保持穩定增長。

During the second quarter, our sales on live streaming channels experienced constant monthly growth. Several of our key live streaming accounts ranked among the top 3 nation-wide in terms of sales volumes within (inaudible) hotel and travel service category. We also continue to collaborate with leading influencers (inaudible) businesses to promote our products. On the price side, (inaudible) we ranked the third place nationwide amongst the unique travel suppliers. Thanks to the team's dedicated efforts, our live streaming channel achieved a significant milestone by recording its first quarterly profit since its establishment.

第二季度，我們的直播渠道銷售額逐月持續增長。我們的幾個主要直播賬戶在（聽不清）酒店和旅遊服務類別的銷售額方面排名全國前三。我們還繼續與領先的有影響力（聽不清）的企業合作來推廣我們的產品。在價格方面，（聽不清）我們在全國唯一的旅遊供應商中排名第三。在團隊的努力下，我們的直播頻道實現了成立以來的首個季度盈利，實現了重要的里程碑。

Our distribution channels, including our B2B platform, offline partner stores and social marketing tools also delivered positive results. During this quarter, sales from our B2B platform and offline partner stores achieved triple-digit growth compared to the previous quarter. The distribution strategy helped the company accumulate scale advantages for the procurement side and reduce our inventory pressure.

我們的分銷渠道，包括 B2B 平台、線下合作夥伴商店和社交營銷工具也取得了積極的成果。本季度，我們的B2B平台和線下合作商店的銷售額較上季度實現三位數增長。分銷策略幫助公司在採購端積累了規模優勢，減輕了庫存壓力。

Travel is considered a relatively low frequency consumption demand compared to [delay] necessary case. But through our B2B distribution approach, we are able to transform it into high-frequency consumption. Offline partner stores helped our products to reach a broader customer base and in low-tier cities at a relatively low cost, while it has (inaudible) Tuniu brand's influence.

與【延誤】必要的情況相比，出行被認為是頻率相對較低的消費需求。但通過我們的B2B分銷方式，我們能夠將其轉化為高頻消費。線下合作店幫助我們的產品以相對較低的成本觸達了更廣泛的客戶群和低線城市，同時具有（聽不清）途牛品牌的影響力。

Regarding technology, we have further deployed automation across our operations. For example, we implemented automated tools for product reviewing, supply chain management. So automation technology will further enhance the company's operational efficiency, helping to lower Tuniu's operating expenses for (inaudible) quarters on a year-over-year basis. We will continue to promote automation and digitalization across various work scenarios and processes to increase the employee productivity.

在技​​術方面，我們在整個運營中進一步部署了自動化。例如，我們實施了用於產品審查、供應鏈管理的自動化工具。因此，自動化技術將進一步提高公司的運營效率，有助於降低途牛各季度（聽不清）的運營費用同比下降。我們將繼續推動各種工作場景和流程的自動化和數字化，以提高員工的生產力。

In the second quarter, we made positive progress on both, our top and bottom line, reflecting the effective needs of Tuniu's integrated business model and the product and the service strategy, we have always adhered to. With the summer peak season approaching, we are well prepared to face any challenges and continue to create return value for our customers and shareholders.

第二季度，我們的營收和利潤都取得了積極的進展，體現了途牛一體化業務模式的有效需求以及我們一直堅持的產品和服務策略。隨著夏季旺季的臨近，我們已做好充分準備迎接任何挑戰，繼續為客戶和股東創造回報價值。

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, Donald. Hello, everyone. Now I will walk you through our second 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. For the second quarter of 2023, net revenue were RMB 100 million, representing a year-over-year increase of 170% from the corresponding period in 2022. The increase was primarily due to the growth of packaged tours as the travel market recovers. Revenues from packaged tours were up 632% year-over-year to RMB 69.8 million and accounted for 70% of our total net revenues for the quarter. The increase was primarily due to the growth of recognized tours. Other revenues were up 10% year-over-year to RMB 30.2 million and accounted for 30% of our total net revenues.

謝謝你，唐納德。大家好。現在，我將向您詳細介紹 2023 年第二季度的財務業績。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。 2023年第二季度淨收入為人民幣1億元，較2022年同期增長170%。增長主要是由於旅遊市場復甦導致跟團遊增長。跟團旅遊收入同比增長 632% 至人民幣 6,980 萬元，佔本季度總淨收入的 70%。這一增長主要是由於認可旅遊的增長。其他收入同比增長 10% 至人民幣 3,020 萬元，占我們總淨收入的 30%。

The increase was primarily due to the increase in service fees received from insurance companies. Gross profit for the second quarter of 2023 was RMB 65.4 million, up 296% year-over-year. Operating expenses for the second quarter of 2023 were RMB 58.6 million, down 43% year-over-year. The decrease was primarily due to the fact that the company did not incur gain on disposal of subsidiaries and the impairment of goodwill in the second quarter of 2023. Gain on disposals of subsidiaries, which were recorded in other operating income in the amount of RMB 32.8 million and impairment of goodwill in the amount of RMB 112.1 million were incurred as operating expenses in the second quarter of 2022. Research and product development expenses for the second quarter of 2023 were RMB 13.8 million, down 1% year-over-year. The decrease was primarily due to a decrease in amortization of acquired intangible assets. Sales and marketing expenses for the second quarter of 2023 were RMB 24.9 million, up 2% year-over-year. The increase was primarily due to the increase in promotion expenses.

增加的主要原因是從保險公司收取的服務費增加。 2023年第二季度毛利潤為人民幣6540萬元，同比增長296%。 2023年第二季度運營費用為人民幣5860萬元，同比下降43%。減少的主要原因是公司2023年第二季度未產生處置子公司收益和商譽減值。處置子公司收益計入其他營業收入人民幣32.8元2022年第二季度營業費用為人民幣1.121億元，商譽減值為人民幣1.121億元。2023年第二季度研究及產品開發費用為人民幣1,380萬元，同比下降1%。減少的主要原因是收購的無形資產攤銷減少。 2023年第二季度銷售及營銷費用為人民幣2490萬元，同比增長2%。增加的主要原因是促銷費用增加。

General and administrative expenses for the second quarter of 2023 were RMB 21.7 million, down 9% year-over-year. The decrease was primarily due to the decrease in general and administrative personnel-related expenses. Net income attributable to ordinary shareholders of Tuniu Corporation was RMB 0.7 million in the second quarter of 2023. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets, gain on disposal of subsidiaries and the impairment of goodwill was RMB 6 million in the second quarter of 2023. As of June 30, 2023, the company had cash and cash equivalents, restricted cash and short-term investments of RMB 1.1 billion. Cash flow generated from operations for the second quarter of 2023 was RMB 136.9 million. Capital expenditures for the second quarter of 2023 were RMB 6.2 million.

2023年第二季度一般及管理費用為人民幣2170萬元，同比下降9%。減少的主要原因是一般及行政人員相關費用減少。 2023年第二季度歸屬於途牛公司普通股股東的淨利潤為人民幣70萬元。非美國通用會計準則歸屬於途牛公司普通股股東的淨利潤，不包括股權激勵費用、收購無形資產攤銷、處置收益2023年第二季度，公司持有子公司的資產，商譽減值人民幣600萬元。截至2023年6月30日，公司持有現金及現金等價物、限制性現金和短期投資人民幣11億元。 2023年第二季度運營產生的現金流為人民幣1.369億元。 2023年第二季度的資本支出為人民幣620萬元。

For the third quarter of 2023, the company has planned to generate RMB 163.5 million to RMB 171.3 million of net revenues which represents 110% to 120% increase year-over-year. Please note that the forecast reflects Tuniu current and the 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年第三季度，公司計劃實現淨收入1.635億元至1.713億元人民幣，同比增長110%至120%。請注意，該預測反映了途牛對行業及其運營的當前和初步看法，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) Our first question comes from Rachel Lee, Private Investor.

（操作員說明）我們的第一個問題來自私人投資者 Rachel Lee。

First of all, congratulations on the excellent performance this quarter. For the second quarter, net revenues have exceeded last quarter's guidance. Which part of the company's business recovers better than expected, domestic or outbound tourism business? What are their proportions in revenues, respectively? And another question is regarding profitability outlook. From your perspective, do you think the profitability will expand in the third quarter?

首先，祝賀本季度取得的優異業績。第二季度的淨收入超過了上季度的指導。公司哪一部分業務復甦好於預期，國內旅遊業務還是出境旅遊業務？他們分別佔收入的比例是多少？另一個問題是關於盈利前景。從您的角度來看，您認為第三季度盈利能力會擴大嗎？

Thank you for the questions. We had a strong second quarter. We (inaudible) revenue growing over 6x year-over-year. Our total GMV maintained a steady growth month by month through April to June. This year, the summer peak season come a bit earlier than before, probably due to the release of pent-up demand in previous years. We saw (inaudible) traveler -- travel since the second half of June, which used to happen in early July. This also contributed to the positive results of the second quarter. In terms of domestic and outbound tours, both have experienced faster recovery. During the second quarter, domestic tours are tours accounted for less than 90% of our total GMV, and outbound tours accounted for over 10%, increasing from a single-digit proportion in the previous quarter. For domestic tours, interprovince tours contribute the most to our revenues.

謝謝你的提問。我們的第二季度表現強勁。我們（聽不清）收入同比增長超過 6 倍。 4月至6月，我們的總GMV逐月保持穩定增長。今年夏季旺季比往年來得早一些，可能是因為往年壓抑的需求得到了釋放。我們看到（聽不清）旅行者——從六月下半月開始旅行，這種情況過去發生在七月初。這也促成了第二季度的積極業績。國內游和出境游均恢復較快。第二季度，國內游佔總GMV的比例不足90%，出境游佔比超過10%，較上季度的個位數比例有所上升。就國內游而言，省際遊對我們的收入貢獻最大。

New tour products, family tours, private and corporate customized tours were among our main revenue drivers. Both of our direct and distribution channels are robust, and many of the channels such as online platform, B2B distribution and large streaming achieved profitability in the second quarter. For outbound tours with the reopening of more [countries] announced in March, we launched new SKUs and saw increased bookings in the second quarter. For example, as several European countries were included in the March list, Europe become our second largest overseas destination in terms of GMV in the second quarter. Jumping from bottom of the list with its GMV increased over 100x compared to the first quarter. We are excited about the new list of opening countries released last week. The third list contains much more destinations and some of them were among popular destinations for Chinese travelers before the pandemic.

新的旅遊產品、家庭旅遊、私人和企業定制旅遊是我們的主要收入驅動力。我們的直營和分銷渠道都很強勁，在線平台、B2B分銷和大流媒體等多個渠道在第二季度實現了盈利。對於出境游，隨著 3 月份宣布更多國家重新開放，我們推出了新的 SKU，並在第二季度看到了預訂量的增加。例如，隨著多個歐洲國家進入3月份榜單，歐洲成為我們第二季度GMV第二大海外目的地。從排名墊底一躍而起，其 GMV 較第一季度增長超過 100 倍。我們對上週發布的新開放國家名單感到興奮。第三份名單包含更多目的地，其中一些是疫情前中國遊客的熱門目的地。

Soon after the release of the news, outbound destination searches on Tuniu platform increased significantly, especially for some countries in the new list. We are positive for the outlook of the industry and trying our best to resume supply chain as fast as possible. So far, we already have SKUs launched for the newly added destinations. For your second question, regarding the feasibility, we'll achieve our goal for our quarterly profit in the second quarter. The third quarter is the peak season, and we are targeting for a top line growth of 110% to 120% year-over-year, while we continue to take strict cost control measures. We will maintain the increase of our total headcount within 10% year-on-year during the peak season, and leverage technology tools to assist our staff to handle the increase in business. Thus, we still have room to -- for margin improvement in the third quarter, both on a GAAP and a non-GAAP basis. Thank you.

消息發布後不久，途牛平台出境目的地搜索量大幅增加，尤其是新名單中的一些國家。我們對行業前景持樂觀態度，並儘力盡快恢復供應鏈。到目前為止，我們已經為新添加的目的地推出了 SKU。關於你的第二個問題，關於可行性，我們將在第二季度實現季度盈利的目標。第三季度是旺季，我們的目標是同比增長110%至120%，同時我們繼續採取嚴格的成本控制措施。旺季期間我們將保持員工總數同比增幅在10%以內，並利用科技工具協助員工應對業務增長。因此，無論是按照公認會計原則還是非公認會計原則，我們第三季度的利潤率仍有改善的空間。謝謝。

(Operator Instructions) There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Mary Chen for any closing remarks.

（操作員說明）隊列中沒有更多問題。我們的問答環節到此結束。我想將會議轉回給瑪麗·陳（Mary Chen）發表閉幕詞。

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。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。