Tuniu Corp (TOUR) 2024 Q3 法說會逐字稿

Hello, and thank you for standing by for Tuniu's 2024 third quarter earnings conference call. (Operator Instructions) Today's conference is being recorded. (Operator Instructions)

您好，感謝您出席途牛2024年第三季財報電話會議。（操作員指示）今天的會議正在錄音。（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.

我現在想將會議轉交給主持人今天的電話會議。投資者關係總監瑪麗。

Thank you, and welcome to our 2024 third 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.

謝謝，歡迎參加我們的 2024 年第三季財報電話會議。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。

For today's agenda, management will discuss business updates, operation highlights and the financial performance for the third quarter of 2024. 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.

在今天的議程中，管理層將討論 2024 年第三季的業務更新、營運亮點和財務表現。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.

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。

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

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 third quarter 2024 earnings conference call. In the third quarter, our revenues and profit continued to grow, with GAAP net income reaching a record high since our listing up to RMB43.9 million, and our net income for the first three quarters of this year exceeded RMB100 million. On a non-GAAP basis, we have achieved a profitability for six consecutive quarters.

謝謝你，瑪麗。大家好。歡迎參加我們的 2024 年第三季財報電話會議。第三季度，我們的營收和利潤持續成長，GAAP淨利創上市以來歷史新高，達到4,390萬元，今年前三季淨利突破1億元。以非公認會計準則計算，我們已連續六個季度獲利。

During the seasonally strong third quarter, the market demonstrated robust demand with more new products introduced compared to last summer, particularly for outbound travel, our product range was significantly enriched for customers. The transactional volume of our outbound travel products achieved a double-digit year-over-year growth in the quarter. As travel increasingly becomes essential for more people, we have noticed a growing summer vacation in customer demand ranging from destination choices to products and services.

在季節性強勁的第三季度，市場需求旺盛，與去年夏季相比推出了更多新產品，特別是出境遊，我們的產品範圍顯著豐富給客戶。本季出境遊產品交易額較去年同期實現兩位數成長。隨著旅行對越來越多的人變得越來越重要，我們注意到客戶對暑假的需求不斷增長，從目的地選擇到產品和服務。

Additionally, as [methods] and channels for reaching customers involve more advanced and diverse needs emerging such as in-depth single destination tours, private tours, live streaming and short videos. Recognizing this trend, we aim to create differentiated products and services to meet the rise in demand of customers.

此外，隨著觸達客戶的方式和管道不斷湧現，單一目的地深度遊、私人遊、直播、短視頻等更高級、更多樣化的需求不斷湧現。認識到這一趨勢，我們的目標是創造差異化的產品和服務，以滿足客戶不斷增長的需求。

In terms of products, we are further strengthening our in-house product development, optimizing our product lines and offering tailored solutions for various customer segments to meet the broad demand for occasional travel. Meanwhile, we continue to collaborate with the third-party suppliers to introduce a wider range of diverse products to meet customer demand, such as niche products and destinations.

在產品方面，我們進一步加強自主產品開發，優化產品線，為不同細分客戶群提供客製化解決方案，滿足廣泛的偶爾出行需求。同時，我們繼續與第三方供應商合作，推出更廣泛、多樣化的產品來滿足客戶需求，例如利基產品和目的地。

During the third quarter, we further optimized our in-house product line. Our new tour products continue to follow a high-quality approach aiming to deliver industry-leading travel experiences. In addition to our [zero] -- shopping policy for new tour itineraries, we are offering more growth and private tour covering a broader range of destinations, such as South America and the Polar regions. Which are often considered once-in-lifetime destinations.

第三季度，我們進一步優化了內部產品線。我們的新旅遊產品繼續遵循高品質的方法，旨在提供行業領先的旅遊體驗。除了我們針對新旅遊行程的[零]購物政策外，我們還提供更多的成長和私人旅遊，涵蓋更廣泛的目的地，例如南美和極地地區。這些通常被認為是一生一次的目的地。

Our new tour products are customized for travel bans, families and repeat customers who prioritize travel unique experiences and are open to exploring new products and definitions. In the first three quarters of this year, the transaction volume of new tour products increased over 30% year-over-year.

我們的新旅遊產品是為旅行禁令、家庭和回頭客量身定制的，他們優先考慮旅行獨特的體驗，並願意探索新產品和定義。今年前三季度，旅遊新產品交易額年增超過30%。

Additionally, new tour products maintained a remarkable 98% customer satisfaction rate with some newly launched in-depth outbound travel products, such as those to Thailand and Bali, achieving a profit -- 100% satisfaction rate.

此外，新遊產品維持了98%的驕人滿意度，部分新推出的深度出發旅遊產品，如泰國、峇裡島等，實現獲利，滿意度100%。

During the third quarter, responding to the search in travel and tourism from customers in lower-tier cities and the rise of checklist style travel among young people, we launched our in-house new slack products, representing the core of Tuniu's organized detour product client.

第三季度，針對低線城市消費者對旅遊旅遊的搜尋以及年輕人清單式旅行的興起，我們推出了自有的新Slack產品，代表了途牛組織繞道產品客戶端的核心。

New slack products include most classic roads at highly competitive prices. New slack products further diversify the price range of Tuniu's in-house offerings and excellent choice for those visiting destination for the first time. For product promotion, we embraced the popular live streaming channels to attract more new customers.

新的 Slack 產品包括大多數經典道路，價格極具競爭力。新的 Slack 產品進一步豐富了途牛內部產品的價格範圍，為首次造訪目的地的人們提供了絕佳的選擇。在產品推廣方面，我們利用流行的直播管道來吸引更多新客戶。

We are pleased to see the New Slack of products that we have launched for popular domestic and outbound destinations have received very positive response during the summer vacation. During the quarter, we further explored travel live streaming shows.

我們很高興地看到，我們針對國內和出境熱門目的地推出的新Slack產品在暑假期間獲得了非常積極的反響。本季度，我們進一步探索旅遊直播節目。

The total payment volume for -- from our large streaming shows increased by nearly 100% year-over-year, while verification volume increased by over 100%, with the verification rate further improving. Additionally, we once again achieved profitability through a single channel.

大型直播支付總額年增近100%，驗證量成長超100%，驗證率進一步提升。此外，我們再次透過單一管道實現獲利。

During the summer, our product offerings have become more diverse and better selected. We capitalized on the demand for family tours by increasing sales of in-park related travel products. We also expanded coverage of outbound destinations such as the [methods] Europe to meet demand and introduced the cost-effective products like new slack for a diverse consumer base.

在夏季期間，我們的產品變得更加多樣化，選擇也更加豐富。我們透過增加園區相關旅遊產品的銷售來抓住家庭旅遊的需求。我們也擴大了歐洲等出境目的地的覆蓋範圍以滿足需求，並針對多元化的消費群體推出了new slack等高性價比產品。

Additionally, we offered more flexible organized detour options such as one-day tours to attract more self-guided tour customers. In addition, our team has become more experimental. We strengthened the setup of our in-house live streaming studios stopped entirely by our employees who are more familiar with our products and systems, without -- in higher efficiency.

此外，我們也提供一日遊等更靈活的組團繞行選擇，以吸引更多自助遊客戶。此外，我們的團隊變得更具實驗性。我們加強了內部直播工作室的設置，完全由更熟悉我們的產品和系統的員工停止，而沒有更高的效率。

Additionally, we have a dedicated verification team to help customers complete verification more quickly. In the third quarter, leveraging our deep understanding of packaged tour products and the demand of our target customers, we further enhanced our large streaming models. Our influencers left their studios and conducted live streaming shows directly from the destinations, offering customers a more immersive experience.

此外，我們有專門的驗證團隊，幫助客戶更快完成驗證。第三季度，我們憑藉著對跟團遊產品的深刻理解和目標客戶的需求，進一步完善了大串流媒體模式。我們的影響者離開他們的工作室，直接從目的地進行直播節目，為客戶提供更身臨其境的體驗。

During the in-house, in-studio, live streaming show we adopted encyclopedic approach to introduce destinations, which showcased our professionalism and helped us gain customer trust leading to a rise in bookings. Furthermore, we remain committed to diversifying into new sales channels that will deliver sustainable growth.

在內部、攝影棚、直播節目中，我們採用百科全書式的方式介紹目的地，這展示了我們的專業精神，並幫助我們贏得了客戶的信任，從而導致預訂量增加。此外，我們仍致力於多元化發展新的銷售管道，以實現永續成長。

In the third quarter, we continued to expand the range of products in our offline stores, helping us provide enhanced services to customers during the peak season. Through our partnerships with traffic platforms such as our collaboration with AliPay Transport, we attracted more customers to streamline booking process and superior service experience with monthly growth in air ticket bookings during the quarter.

第三季度，我們持續擴大線下門市的產品種類，幫助我們在旺季為顧客提供更好的服務。透過與交通平台的合作，例如與支付寶交通的合作，我們吸引了更多客戶，簡化了預訂流程並提供卓越的服務體驗，本季機票預訂量逐月增長。

Moreover, we collaborated with Tourism Europe of several countries, including Thailand, Saudi Arabia and Australia, leveraging Tuniu's -- strength in outbound travel market to boost their local tour rhythm and enhance travel experiences for Chinese tourists visiting these destinations.

此外，我們也與泰國、沙烏地阿拉伯、澳洲等多個國家的歐洲旅遊局合作，利用途牛在出境遊市場的優勢，加速當地旅遊節奏，提升中國遊客到這些目的地的旅遊體驗。

In terms of services, during the peak season, in addition to ensuring high-quality tour experience for our customers, we also focused on maintaining ongoing customer engagements. We maintained regular customer follow-ups, inviting guests to provide feedback on our product, services and tour guides, allowing us to identify and resolve potential issues prominently. We also promoted non-volume policy for our flight tickets, enhancing the booking experience on Tuniu demonstrating our commitment to integration and transparency.

在服務方面，在旺季期間，除了保證客戶高品質的旅遊體驗外，我們還專注於保持持續的客戶互動。我們定期進行客戶跟進，邀請客人對我們的產品、服務和導遊提供回饋，使我們能夠突出地識別和解決潛在問題。我們也推行機票不批量政策，提升了途牛的預訂體驗，體現了我們對一體化和透明度的承諾。

We have constantly displayed our product satisfaction rating on to the website which currently stands at 94%. Our repeat customers have constantly contributed over 65% of our transactional volume. In November, a new holiday policy was introduced, adding two more public holidays starting next year. This is a positive signal for the tourism industry, especially for the travel sector. Reinforcing our confidence in the long-term development of the sector. The upcoming Spring Festival holiday will be extended to eight days which will further boost the public's enthusiasm for travel.

我們不斷在網站上展示我們的產品滿意度，目前為 94%。我們的回頭客一直貢獻著我們交易量的 65% 以上。11月，推出了新的假期政策，從明年開始又增加了兩個公共假期。這對於旅遊業，尤其是旅遊業來說，是一個積極的信號。堅定了產業長遠發展的信心。即將到來的春節假期將延長至8天，這將進一步激發大眾的旅遊熱情。

We look forward to broadening and enhancing our products and services to meet the needs of our customers. High quality products and services have always been our core competitive advantages and an inevitable trend for industry development.

我們期待擴大和增強我們的產品和服務，以滿足客戶的需求。高品質的產品和服務一直是我們的核心競爭優勢，也是產業發展的必然趨勢。

Tuniu remains committed to achieving high-quality development while upholding our service quality closely monitoring the ever-changing needs of our customers to ensure that our product services and the promotion channels remain at the forefront of the industry.

途牛在堅持高品質發展的同時，堅持服務品質，密切注意客戶不斷變化的需求，確保產品服務和推廣管道走在行業前列。

At the same time, we continue to prioritize efficiency improvements, strict cost control and optimizing the performance of our sales channels to support the company's long-term healthy growth and profitability.

同時，我們持續以提高效率、嚴格成本控制和優化銷售通路績效為重點，支援公司長期健康成長和獲利。

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，以了解財務要點。

Thank you, Donald. Hello, everyone. Now I'll walk you through our third quarter of 2024 financial results in greater detail. Please note that all the mentions of 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 年第三季的財務表現。請注意，除非另有說明，所有提及的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 third quarter of 2024, net revenues were RMB186 million, representing a year-over-year increase of 4% from the corresponding period in 2023. Revenues from packaged tours were up 6% year-over-year to RMB159.3 million and accounted for 86% of our total net revenue for the quarter. The increase was primarily due to the growth of organized tours. Other revenues were down 5% year-over-year to RMB26.7 million and accounted for 14% of our total net revenues.

2024年第三季淨收入為人民幣1.86億元，較2023年同期年增4%。跟團旅遊收入年增 6% 至人民幣 1.593 億元，佔本季總淨收入的 86%。這一增長主要是由於跟團旅遊的增長。其他收入年減 5% 至人民幣 2,670 萬元，占我們總淨收入的 14%。

The decrease was primarily due to the decrease in the fees for advertising services provided to tourism board and bureaus.

減少的主要原因是向旅遊局和旅遊局提供的廣告服務費用減少。

Gross profit for the third quarter of 2024 was RMB121.8 million, up 6% year-over-year. Operating expenses for the third quarter of 2024 were RMB92.6 million, up 11% year-over-year. Research and product development expenses for the third quarter of 2024 were RMB13.6 million, down 26% 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 third quarter of 2024 were RMB60.6 million, up 53% year-over-year.

2024年第三季毛利為人民幣1.218億元，較去年同期成長6%。2024年第三季營運費用為人民幣9,260萬元，較去年同期成長11%。2024年第三季研究及產品開發費用為人民幣1,360萬元，較去年同期下降26%。減少的主要原因是研究和產品開發人員相關費用減少。2024年第三季銷售及行銷費用為人民幣6,060萬元，較去年同期成長53%。

The increase was primarily due to the increase in promotion expenses. General and administrative expenses for the third quarter of 2024 were RMB18.6 million, down 31% year-over-year. The decrease was primarily due to the reversal of allowance for doubtful accounts. Net income attributable to ordinary shareholders of Tuniu Corporation was RMB44.4 million in the third quarter of 2024.

增加的主要原因是促銷費用增加。2024年第三季管理費用為人民幣1,860萬元，較去年同期下降31%。減少的主要原因是呆帳準備金的轉回。2024年第三季歸屬於途牛普通股股東的淨利為人民幣4,440萬元。

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 in the third quarter of 2024.

2024年第三季度，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（不含股權激勵費用及收購無形資產攤提）為人民幣4,660萬元。

As of September 30, 2024, the company had cash and cash equivalents, restricted cash and short-term investments of RMB1.3 billion. Cash flow generated from operations for the third quarter of 2024 was RMB13 million. Capital expenditures for the third quarter of 2024 were RMB1.1 million. For the fourth quarter of 2024, the company expects to generate RMB100 million to RMB105 million of net revenues which represents a 0% to 5% increase year-over-year.

截至2024年9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。2024年第三季經營產生的現金流量為人民幣1,300萬元。2024年第三季資本支出為人民幣110萬元。2024年第四季，公司預計淨收入為人民幣1億元至人民幣1.05億元，年增0%至5%。

Please note that this forecast reflects new 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?

請注意，這項預測反映了對該行業及其營運的當前和初步看法，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) Judy Wong, Private Investor.

（操作員說明）Judy Wong，私人投資者。

Congratulations on another profitable quarter. My question is about the outlook for the fourth quarter. Could you please share the reasons for the slowdown of revenue and any guidance on the bottom line? Also, can you share some insights on next year's market for both domestic and outbound tourists?

恭喜又一個獲利季度。我的問題是關於第四季的前景。您能否分享一下收入放緩的原因以及對利潤的任何指導？另外，您能否分享對明年國內和出境旅客市場的一些見解？

Thank you for the question. Fourth quarter is off season for tourism. Revenues will drop compared to last quarters due to seasonality. On a year-over-year basis, we expect low single-digit growth for our total revenues. For domestic market, the two main themes for winter travel are ice and snow tourism and heading for the storm.

謝謝你的提問。第四季是旅遊淡季。由於季節性因素，收入將較上季下降。與去年同期相比，我們預計總收入將出現低個位數成長。對國內市場來說，冰雪旅遊和迎擊風暴是冬季旅遊的兩大主題。

In the North, the ice and snow period tourism was very hot last year and has continued its popularity this year. But for the purpose of avoiding the cold weather, people have more choices this winter. Overseas destinations were fully opened since the fourth quarter of 2023.

在北方，去年冰雪期旅遊十分火爆，今年繼續火熱。但為了躲避寒冷的天氣，今年冬天人們有了更多的選擇。海外目的地自2023年第四季起全面開放。

And this winter, there are more products launched for popular destinations, such as East Asia and Australia. Together, we -- more with the policy in some Southeast Asia countries, traveling abroad can be as convenient as domestic tours.

今年冬天，還有更多針對東亞和澳洲等熱門目的地的產品推出。加上我們－更多的是東南亞一些國家的政策，出國旅遊可以像國內旅遊一樣方便。

Generally speaking, last year was comparatively high base for both domestic and outbound tours due to the release of pent-up demand. On the bottom line, we don't give any specific guidance as revenues declined due to seasonality in the fourth quarter. limitations in scale effects will lead to lower profit for the period. However, since we have already achieved non-GAAP profitability for six consecutive quarters, we will try our best to keep the momentum. For the next year, the tourism industry will maintain steady growth.

整體來看，去年國內遊和出境遊基數較高，因壓抑的需求而釋放。歸根結底，由於第四季度的季節性因素導致收入下降，我們沒有給出任何具體指引。規模經濟的限制將導致當期利潤下降。然而，由於我們已經連續六個季度實現非公認會計準則獲利，我們將盡力保持這一勢頭。明年，旅遊業將保持平穩成長。

Also the launch of new project launch in November, we further encourage travel, especially air travel during certain holidays. From the demand side, we see continued growth after the pandemic. Travel is becoming [travel] -- in the life of more and more people regardless of their ages and locations. For example, we have many silver generation (inaudible). We cover a lot with Tuniu new tours. We have more free time and disposable income to enjoy travel.

此外，隨著 11 月新計畫的啟動，我們進一步鼓勵旅行，特別是在某些假期期間進行航空旅行。從需求面來看，疫情過後我們看到了持續的成長。旅行正在成為越來越多的人的生活，無論他們的年齡和地點如何。例如我們有很多白銀一代（聽不清楚）。我們透過途牛新遊涵蓋了許多內容。我們有更多的空閒時間和可支配收入來享受旅行。

Also, with the widespread popularity of live streaming shows and short videos, travelers from lower-tier cities have increased their bookings through Internet. Many of them go abroad for the first time and they are very promising growths for outbound travels.

此外，隨著直播和短影片的廣泛流行，來自低線城市的遊客透過網路進行的預訂也有所增加。他們中的許多人是第一次出國，出境遊的成長前景非常廣闊。

With the emergence of more transportation hub, we may bring more travelers from lower-tier cities to overseas destinations. For domestic market, customer needs become more diversified. We need to provide products [where wired] in destinations, itinerary activities, group sizes and prices to catch different customers growth.

隨著更多交通樞紐的出現，我們可能會將更多旅客從低線城市帶到海外目的地。國內市場，客戶需求更加多元化。我們需要提供目的地、行程活動、團體規模和價格方面的產品，以吸引不同客戶的成長。

This trend may continue in the coming year, and we are already -- we are always prepared to launch new products and services. For outbound travel, it will continue its growth momentum, but the recovery will rise from region to region, depending on the resuming of airlines and the supply chains, for example, Southeast Asia recovers faster this year while North America is behind. Therefore, we see chances for growth of long distance outbound travel next year. Thank you.

這種趨勢可能會在明年繼續下去，我們已經準備好推出新產品和服務。出境旅遊方面，仍將維持成長勢頭，但復甦程度將因地區而異，取決於航空公司和供應鏈的恢復情況，例如東南亞今年復甦較快，北美則落後。因此，我們認為明年長途出境遊有成長的機會。謝謝。

We are now approaching the end of the conference call. I will now turn the call back 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，我將把電話轉回給途牛投資者關係總監瑪麗，她將作總結發言。

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。您現在可以斷開連線。再會。