Tuniu Corp (TOUR) 2024 Q2 法說會逐字稿

Hello, and thank you for standing by for Tuniu's 2024 second-quarter earnings conference call. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Mary.

您好，感謝您出席途牛2024年第二季財報電話會議。（操作員指示）今天的會議正在錄音。如果您有任何異議，您可以此時斷開連接。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 2024 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 2024.

謝謝，歡迎參加我們的 2024 年第二季財報電話會議。今天和我一起參加電話會議的還有途牛創辦人、董事長兼執行長唐納德‧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 2024 年第二季的業務更新、營運亮點和財務表現。

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.

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。此外，本次電話會議也討論了某些非公認會計準則財務措施。

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 conference call are in RMB. I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Yu.

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較的公認會計準則衡量標準的調節表。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辦人、董事長兼執行長唐納德·餘 (Donald Yu)。

Thank you, Mary. Good day, everyone. Welcome to our second quarter 2024 earnings conference call. In the second quarter, our business continued to maintain healthy growth with revenue from package tours, Tuniu's core business, increasing by 29% year-over-year. We also saw further improvement in our profitability with net income reaching a quarterly record high since our listing, up to RMB43 million.

謝謝你，瑪麗。大家好。歡迎參加我們的 2024 年第二季財報電話會議。第二季度，我們的業務持續保持健康成長，途牛核心業務跟團遊收入較去年同期成長29%。我們的獲利能力也進一步改善，淨利達到上市以來的季度新高，達到人民幣4,300萬元。

During this quarter, the domestic travel market maintained steady growth with the number of trips booked during the three-holiday period increasing year over year. And with the full opening of overseas destinations and the availability of diverse product offerings, the outbound travel market continued to grow rapidly compared to last year with new popular destinations and roads emerging.

本季度，國內旅遊市場保持穩定成長，三長期間旅遊預訂量較去年同期成長。隨著境外目的地的全面開放和產品種類的豐富，出境遊市場較去年繼續快速增長，新的熱門目的地和線路不斷湧現。

It is clear that tourism has increasingly become an essential part of many people's lives. Tuniu continues to steadfastly adhere to our mission of making travel easier and focusing on customer needs. We will continue to enhance our products, services and sales to offer more travel options, ensuring customers have an exceptional trip experience.

顯然，旅遊業日益成為許多人生活中的重要部分。途牛繼續堅定不移地實踐讓出行更簡單、專注於客戶需求的使命。我們將繼續提升我們的產品、服務和銷售，為客戶提供更多旅行選擇，確保客戶擁有卓越的旅行體驗。

In the second quarter, we continued to strengthen our in-house product development. Our new tour products maintained their high-quality service, adding more destinations and new roads. In the second quarter, the transaction volume of new tour products increased by more than 40% year-over-year.

第二季度，我們持續加強內部產品開發。我們的新旅遊產品維持了高品質的服務，增加了更多目的地和新道路。第二季度，新遊產品交易額較去年同期成長超過40%。

The primary customer base for our new tour products are middle- to upper-class customers, many of whom are senior travelers who value experience over price. Focusing on this growth, we have continuously upgraded new tours, offering small groups, higher standards for accommodation and dining and the more local sightseeing and restaurant options.

我們的新旅遊產品的主要客戶群是中上階層客戶，其中許多是重視體驗勝於價格的老年旅行者。圍繞著這一增長點，我們不斷升級新的旅遊線路，提供小團、更高標準的住宿和餐飲以及更多當地的觀光和餐廳選擇。

For some of our outbound products, we employ local tour guides who speak Chinese, providing a more authentic cultural experience for our guests. By providing a constantly excellent customer experience, new tour products have built a large base of high-quality repeat customers with a repurchase rate twice that of our regular products.

我們的部分出境產品聘請了會說中文的當地導遊，為客人提供更原汁原味的文化體驗。透過持續提供卓越的客戶體驗，新遊產品累積了大量優質回頭客，複購率是常規產品的兩倍。

At the same time, we continue to partner with third-party suppliers who have made significant contributions to diverse our products and the destinations, especially for outbound travel market. In terms of sales, we focus on our own channels, while our maintaining open cooperation with various partners. As a customer-focused company, Tuniu has long had a membership program specifically designed to sell to our repeat customers.

同時，我們繼續與第三方供應商合作，他們為我們的產品和目的地的多樣化，特別是出境遊市場做出了重大貢獻。在銷售方面，我們專注於自有管道，同時與各合作夥伴保持開放的合作。作為一家以客戶為中心的公司，途牛長期以來一直有專門針對回頭客進行銷售的會員計畫。

In addition to regular benefits, we hold a monthly membership day and occasional off-line events to interact with our customers and gather feedback on our products and services. Notably in the second quarter, repeat customers contributed over 65% of the company's transaction volume. Meanwhile, we continue to attract new customers through various channels, such as new media, off-line stores and partnerships with high-traffic online platforms.

除了常規福利外，我們每月舉辦一次會員日，並偶爾舉辦線下活動，與客戶互動並收集對我們產品和服務的回饋。值得注意的是，第二季度，回頭客貢獻了公司交易量的65%以上。同時，我們持續透過新媒體、線下商店以及與高流量線上平台的合作等多種管道吸引新客戶。

During the second quarter, our live streaming channels maintained triple-digit growth and the transaction volume of our off-line stores increased over 80% year-over-year. Additionally, we collaborated with Jingdong travel, Alipay transport and others to boost the sales of other travel-related products.

第二季度，直播通路維持三位數成長，線下門市交易額較去年同期成長超過80%。此外，我們也與京東旅遊、支付寶出遊等合作，推動其他旅遊相關產品的銷售。

Regarding large streaming channels, as the Internet continues to develop and user demand evolve, information is increasingly consumed via video content as opposed to text and images. With users now frequently watching large streaming shows and short videos, adapting to these changes in behavior is essential to maintaining our competitive edge.

對於大型串流媒體管道，隨著互聯網的不斷發展和用戶需求的發展，資訊越來越多地透過視訊內容而不是文字和圖像來消費。由於用戶現在經常觀看大型串流媒體節目和短視頻，因此適應這些行為變化對於保持我們的競爭優勢至關重要。

In the second quarter, we expanded our live streaming channels on both Tuniu app and the mini program to adapt to changes in user habits. Also, we strengthened the expansion of new media channels such as more content placement on the Little Red Book. In terms of products, we broadened the variety and the destination coverage of our live streaming product offerings, such as organized tour products at destinations and theme park packaged tours.

第二季度，我們在途牛應用程式和小程式上拓展了直播管道，以適應用戶習慣的變化。此外，我們也加強了新媒體管道的拓展，例如增加小紅書的內容投放。產品方面，拓寬直播產品種類及目的地覆蓋範圍，如目的地跟團遊產品、主題樂園跟團遊等。

For technology, our products now use system-based verification, which significantly improves speed and -- a QR receipt, compared to manual verification and enhancing the customer experience. Leveraging our optimized product selection process and improved verification capabilities, the verification and the sales rate of our live streaming products has increased significantly.

在技​​術方面，我們的產品現在使用基於系統的驗證，與手動驗證相比，這顯著提高了速度和二維碼收據，並增強了客戶體驗。透過優化選品流程和提升驗證能力，直播產品的驗證率和銷售量大幅提升。

During the quarter, both the total payment volume and verification volume from our large streaming channels increased over 200% year-over-year. The contribution of live streaming channels to the company continued to rise and achieve quarterly net income again. We have also been pleased to share our expertise and accumulated experience in new media operations with our partners and jointly promote the development of the travel industry.

本季度，我們的大串流媒體管道總支付量和驗證量年增超過200%。直播通路對公司的貢獻持續上升，再次實現季度淨利。我們也很高興與合作夥伴分享我們在新媒體運作方面的專業知識和累積的經驗，共同推動旅遊業的發展。

We have assisted some destinations in using new media tours for marketing. And we have also collaborated with schools to establish internship programs, providing practical opportunities for students and jointly cultivating talent with skills in both tourism and the new media, providing employment opportunities and benefiting the industry as a whole.

我們協助一些目的地利用新媒體旅遊進行行銷。我們也與學校合作建立實習項目，為學生提供實務機會，共同培養旅遊和新媒體人才，提供就業機會，造福整個產業。

In conclusion, with the arrival of the summer peak season, the travel industry is entering its busiest time. Tuniu is excited to meet the opportunities with more diverse products and higher quality services as we look forward to deliver strong value for our shareholders going forward. I will now turn the call to -- over to Anqiang, our Financial Controller, for the financial highlights.

綜上所述，隨著夏季旺季的到來，旅遊業正進入最繁忙的時期。途牛很高興能以更多樣化的產品和更優質的服務抓住機遇，期待未來為股東創造強大的價值。我現在將電話轉給我們的財務總監安強，以了解財務要點。

Thank you, Donald. Hello, everyone. Now I'll walk you through our second quarter of 2024 financial results in greater detail. Please note that all the monetary amounts are in RMB unless otherwise stated. You can find the US dollar equivalents of the numbers in our earnings release.

謝謝你，唐納德。大家好。現在，我將向您詳細介紹 2024 年第二季的財務表現。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這些數字的美元等值金額。

For the second quarter of 2024, net revenues were RMB116.9 million, representing a year-over-year increase of 17% from the corresponding period in 2023. Revenues from packaged tours were up 29% year-over-year to RMB89.8 million and accounted for 77% of our total net revenues for the quarter. The increase was primarily due to the growth of organized tours. Other revenues were down 10% year-over-year to RMB27.2 million and accounted for 23% of our total net revenues.

2024年第二季度，淨收入為人民幣1.169億元，較2023年同期年增17%。跟團旅遊收入年增 29% 至 8,980 萬元，佔本季總淨收入的 77%。這一增長主要是由於跟團旅遊的增長。其他收入年減 10% 至人民幣 2,720 萬元，占我們總淨收入的 23%。

The decrease was primarily due to the decrease in commission fees received from other travel-related products and revenues generated from financial services. Gross profit for the second quarter of 2024 was RMB84.4 million, up 29% year-over-year.

下降的主要原因是其他旅遊相關產品的佣金費用和金融服務收入的減少。2024年第二季毛利為人民幣8,440萬元，較去年同期成長29%。

Operating expenses for the second quarter of 2024 were RMB49.9 million, down 15% year-over-year. Net gain on disposals of subsidiaries, which was allocated to operating expenses was RMB24.6 million in the second quarter of 2024. Research and product development expenses for the second quarter of 2024 were RMB12.7 million, down 8% year-over-year.

2024年第二季營運費用為人民幣4,990萬元，較去年同期下降15%。2024年第二季分配至營運費用的處分子公司淨利為人民幣2,460萬元。2024年第二季研究及產品開發費用為人民幣1,270萬元，較去年同期下降8%。

The decrease was primarily due to the decrease in research and product development personnel-related expenses. Sales and marketing expenses for the second quarter of 2024 were RMB40.2 million, up 61% year-over-year. The increase was primarily due to the increase in promotional expenses and sales and marketing personnel-related expenses.

減少的主要原因是研究和產品開發人員相關費用減少。2024年第二季銷售及行銷費用為人民幣4,020萬元，較去年同期成長61%。增加的主要原因是促銷費用以及銷售和行銷人員相關費用的增加。

General and administrative expenses for the second quarter of 2024 was RMB21.7 million, which was in line with general and administrative expenses in the second quarter of 2023. Net income attributable to ordinary shareholders of Tuniu Corporation was RMB43 million in the second quarter of 2024.

2024年第二季的一般及管理費用為人民幣2,170萬元，與2023年第二季的一般及管理費用持平。2024年第二季歸屬於途牛普通股股東的淨利為人民幣4,300萬元。

Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries was RMB20.8 million in the second quarter of 2024. As of June 30, 2024, the company had cash and cash equivalents, restricted cash and short-term investments of RMB1.3 billion.

2024年第二季度，不以美國通用會計準則計算，歸屬於途牛公司普通股股東的淨利（不含股權激勵費用、收購無形資產攤銷、出售子公司淨收益）為人民幣2,080萬元。截至2024年6月30日，本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13億元。

Cash flow generated from operations for the second quarter of 2024 was RMB105.3 million. Capital expenditures for the second quarter of 2024 were RMB8.5 million. For the third quarter of 2024, the company expects to generate RMB183.5 million to RMB192.4 million of net revenues, which represents a 3% to 8% increase year-over-year.

2024年第二季營運產生的現金流為人民幣1.053億元。2024年第二季的資本支出為人民幣850萬元。2024年第三季度，公司預計淨收入為人民幣1.835億元至人民幣1.924億元，年增3%至8%。

Please note that this forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change. Thank you, all for listening. We are now ready for your questions. Operator?

請注意，這項預測反映了途牛對產業及其營運的當前初步看法，可能會發生變化。謝謝大家的聆聽。我們現在已準備好回答您的問題。操作員？

(Operator Instructions)

（操作員說明）

Our first question comes from [Guo Qi Lin] Please go ahead, sir.

我們的第一個問題來自[郭其林]請先生說。

Thank you. Hi, management. First of all, congratulations on this quarter's performance. For the second quarter, what are the proportions of domestic and outbound tourism in revenues, respectively, and how about the recovery of outbound tourism. Are there any changes in top outbound destinations and for the third quarter, what are the primary reasons behind the slowdown in revenue growth? Can you share some trends of this summer towards the market? Thank you.

謝謝。嗨，管理層。首先，恭喜本季的業績。第二季度國內旅遊和出境旅遊收入佔比分別是多少，出境旅遊恢復情況如何。熱門出境目的地有何變化？能分享一下今年夏天的市場趨勢嗎？謝謝。

Thank you for the questions. In the second quarter, domestic tours comprised about 70% of the total GMV and outbound towards comprised a bit more than 30% compared to a bit less than 30% in the previous quarter. The proportion didn't change much from last quarter because the second quarter is usually good for domestic tours due to the three national holidays.

謝謝你的提問。第二季度，國內遊約佔總GMV的70%，出境旅遊則略高於30%，而上一季則略低於30%。這一比例與上季度相比沒有太大變化，因為第二季度由於三個國慶假期通常是國內遊的好時機。

Domestic tours maintained steady growth this quarter as people's enthusiasm for traveling remains high. But considering the lump of the holiday, self-drive tours and city walks were prevailing especially in Qingming and Duanwu holiday.

本季國內遊保持穩定成長，人們旅遊熱情持續高漲。但考慮到假期的集中性，自駕遊和城市漫步盛行，尤其是在清明和端午假期。

For outbound travel, although the second quarter is not the peak season, it still increased at a high year-over-year rate, mainly due to more choices of destinations and products compared to last year. Breakdown to destinations, Southeast Asia has entered off-season since April due to hot and rainy weather. Japan was one of the star destinations in the second quarter due to mixed reasons such as pent-up demand, sakura season and the favorable exchange rate.

出境旅遊方面，雖然第二季不是旺季，但年比仍維持較高成長，主要是因為目的地和產品的選擇較去年增加。分目的地來看，東南亞自4月以來，由於天氣炎熱多雨，進入淡季。由於需求被壓抑、櫻花季節和有利的匯率等多種原因，日本成為第二季的明星目的地之一。

Long distance outbound decrease are usually not as popular as short distance, at least, in the second quarter, but Europe become -- became our top outbound destination. In this quarter, we strengthened our supply capacity and launched more new tour products.

長途出境遊通常不像短途遊那麼受歡迎，至少在第二季度是如此，但歐洲成為我們的首選出境目的地。本季度，我們加強了供給能力，並推出了更多新的旅遊產品。

Currently, our new tour products cover most of the popular countries throughout Europe. We also increased coverage of departing cities, providing more options for travelers from various parts of China. For the summer vacation, the market surges on a quarter-over-quarter basis due to seasonality, but compared to the strong growth last summer, the market growth moderately this summer.

目前，我們的新旅遊產品涵蓋了歐洲大部分熱門國家。我們也擴大了出發城市的覆蓋範圍，為來自中國各地的旅客提供了更多選擇。暑假期間，受季節性影響，市場環比激增，但與去年夏天的強勁增長相比，今年夏天的市場增長溫和。

With the release of three-year pent-up demand and the few choices of outbound destinations, domestic travel market was exceptionally thriving during last summer, which formed a hybrid. This year, we see trends towards more self-guided tours in domestic market.

隨著三年來壓抑的需求釋放，加上出境目的地選擇不多，去年夏季國內旅遊市場異常火爆，形成了混合動力。今年，我們看到國內市場自助遊趨勢增加。

People tend to book more flexible products such as transportation or hotel plus X products. And the destination-based package tours may become one of the choices of that. People also have more choices of products this year with the recovery of supply chain, especially for outbound travel products. For example, overseas islands have entered off season in summer, which offers favorable prices and attracted many tourists. Outbound tours will have a higher increase rate than domestic tools.

人們傾向於預訂更靈活的產品，例如交通或飯店加X產品。而目的地跟團遊或許會成為其中的選擇之一。今年隨著供應鏈的恢復，人們對產品的選擇也有了更多的選擇，尤其是出境遊產品。例如，海外島嶼夏季進入淡季，價格優惠，吸引了許多遊客。出境遊將比國內工具有更高的增幅。

But considering that some of the demand have already been released last year. The outbound travel market will incur a step-by-step increase in that our domestic recovery. Under the influence of overseas flight, product price and exchange rate, generally we think, compared to the first half of the year, our top line will grow at a lower rate in the third quarter, but we are still confident with the bottom line to achieve another profitable quarter. Thank you.

但考慮到去年部分需求已經釋放。出境遊市場將隨著國內經濟的復甦而逐步成長。在海外航班、產品價格和匯率的影響下，我們普遍認為，與上半年相比，我們第三季度的營收成長速度將有所放緩，但我們仍然對盈利充滿信心。 。謝謝。

(Operator Instructions)

（操作員說明）

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

我們現在電話會議即將結束。現在我將會議交給途牛投資人關係總監瑪麗致閉幕詞。

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。

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

感謝您參加今天的會議。演示到此結束。您現在可以斷開連線。再見。