Tuniu Corp (TOUR) 2026 Q2 法說會逐字稿

Hello, and thank you for standing by for to Tuniu's 2026 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.

Thank you, and welcome to our 2026 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 2026.

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. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are RMB.

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

Thank you, Mary. Good day, everyone. Welcome to our second quarter 2026 earnings conference call. ported by variable policies such as the introduction of spring breaks, the domestic travel market maintained steady growth in the second quarter Meanwhile, the overall travel market faced some uncertainties with certain outbound destinations very in headwinds.

Despite these challenges, we maintained revenue growth in the second quarter and achieve non-GAAP profitability for the six executive quarter. During the quarter, we continued to execute our diversified product and sales channel strategy. idea by customer needs, we further enriched our product offerings across categories destinations and the price tiers.

For our sales channels, we continue to work with a broad range of our partners to better reach different customer segments. Let me walk you through some of our key initiatives in more detail. On the product side, as customers increasingly more personalized divers and flex sport travel options.

We have continued to expand and refine our product portfolio First, we further expanded our product offerings to include more small growth towards private towards customized tools, self-driving tours and other travel-related products.

For growth towards have been well received by younger travelers for their flexibility and strong value proposition. While priority towards how gain popularity among family travelers for their more personalized and the private travel experience.

Fastener the need of top-gaining travelers, we've also expanded our hotel-centric self-guided tour products and broadened our portfolio of other travel-related products, including hotels, car rentals and definition experiences. Second, in addition to enhancing our new tool products for the mass market and our value-oriented new select service we introduced a number of premium private to our products during the quarter to meet demand from customers taking higher quality tier experiences.

These products feature premium accommodations, dedicated car services and other upgrade upgraded travel carats. For example, our premium private for package to Singapore for the summer season launched in late June has been well revealed by family travelers with sales volume, we exceeded RMB10 million to sales. We also continue to expand our product offerings for different customer segments.

For family-orientated customers, we launched reach our travel products during the spring break season centered on Eastern China. For senior travelers, we introduced a longer duration organized towards on more than 15 days as well as off-peak travel products scheduled outside major holiday trial.

By better aligning our products with the preferences of different customer segments this offering delivered higher conversion and the reduction rates. On the sales side, we adopted more targeted marketing initiatives. We launched a series of online seminars inviting customers increased in specific products or definitions to learn more through detailed presentations and interactive activities helping deeper customer engagement and the increase. Also introduced dedicated live streaming shows focus on state products and debt initiatives, providing viewers with more in-depth and specialized content.

These targeted live streaming shows have generally delivered higher exemption rate. In addition to more targeted product offerings and the marketing initiatives, we continue to expand our content shifts across sales channels in live streaming, we further extended our presence to multiple major platforms, while also depending cooperation with MC agencies leveraging our country an portfolio of high-quality layer travel products and well-established fulfillment capabilities.

Together, with extensive we were reached of our MTM partners we are able to increase sales, scale and expand our customer base. In the second quarter, both payments and verification volume generated through our live streaming channels continued to record a double-digit year-over-year growth. In the second quarter, transaction volume from our off-line stores have also continued to record double-digit year-over-year growth. As of today, we operate approximately 500 offline stores. Our off-line store network has contributed to sales growth and expanded the reach of our service network.

While we continue to provide source with tiered products that help them better sell and attract the local customers. During the second quarter, demand for customized for travel solutions from corporate clients increased leveraging our industry experience and high-quality products and services, we worked with a number of well enterprise and deliver corporate travel tools, including team building activities and incentive travels from a technology perspective, we have integrated AI into a broader range of workflows, such as building knowledge bases breaking promotional materials and assisting with order processing, AI or have become valuable assistance to many employees after them work more efficiently while reducing operation operating costs.

On the customer side, we upgraded our Travel AI agent, I assistance Shane with intertain bookings and other processing capabilities, customers can now complete the entire booking process for standalone travel products, including flights, hotels and attraction tickets to AI from initial inquiry to final bookings. In addition, Chano can search, plan and compare itinerary based on different travel scenarios such as business cases or locations as well as customers' individual preferences, delivering a more personalized travel planning experience.

As we enter the summer travel season, we are well positioned to support the increased demand during the peak travel period. While there may still be some uncertainties in the second half of the year, we are confident in the growth of travel demand and the resi line gain of both the travel industry and our business. We remain committed to providing customers with high-quality products and services.

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

Thank you, Donald. Hello, everyone. Now I will walk you through our second quarter of 2026 financial results in greater detail. Please note that all monetary amounts in unless otherwise stated. You can find the US dollar equivalent of the numbers in our earnings release. For the second quarter of 2026, net revenues were CNY138.9 million representing a year-over-year increase of 3% from the corresponding period in 2025. Revenues from packaged tours were up 7% year-over-year to CNY121.1 million and accounted for 87% of our total net revenues for the quarter.

The increase was primarily due to the growth of online tours. Other revenues were down 17% year-over-year to CNY17.8 million and accounted for 13% of our total net revenues. The decrease was primarily due to the decrease in the fees for advertising services provided to Toys on more bureaus. Gross profit for the second quarter of 2026 were CNY76.4 million, down 11% year-over-year. Operating expenses for the second quarter of 2026 were CNY82.5 million, up 5% year-over-year.

Research and product development expenses for the second quarter of 2026 were CNY13.8 million, down 16% year-over-year. The decrease was primarily due to the decrease in research and product venture related expenses. Sales and marketing expenses for the second quarter of 2026 were CNY54.7 million, up 22% year-over-year. The increase was primarily due to the increase in promotion expenses.

General and administrative expenses for the second quarter of 2026 CNY14.1 million down 20% year-over-year. The decrease was primarily due to the decrease in general and personnel-related expenses. Net income attributable to on shareholders of two new corporation was CNY0.7 million in the second quarter of 2026. Non-GAAP net income attributable to on shareholders of Tuniu Corporation which excluded share-based compensation expenses and amortization of acquired intent assets was CNY2.2 million in the second quarter of 2026.

As of June 30, 2026, the company had cash and cash equivalents, restricted cash, certain investments and long-term deposits of CNY1 billion. Cash flow generated from operations for the second quarter of 2026 was CNY46.9 million. Capital expenditures for the second quarter of 2026 were CNY1.4 million. For the third quarter of the company expects to generate CNY202.1 million to CNY212.2 million of net revenues. which represents a 0% to 5% increase year-over-year. Please note that this forecast reflect to 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?

(Operator Instructions)

[Sarah Zhao], Private Investor.

Hi management, two questions here. First, could you please share the reasons for the decrease in net profit in the second quarter? Second, could you provide more details about travel bookings in the summer and also the outlook for the profitability of the quarter. Thank you.

Thank you for the questions. In the second quarter, the domestic travel market continued to grow steadily various outbound travel market metal headwinds and certain destinations. The headwinds directly impacted leader travel to certain destinations to downhole, the Middle East and Africa recorded over 20% year-over-year decrease of transaction volume during the quarter. As a result, outbound tours accounted for about 30% of our total GMV for the second quarter compared to over one-third in the same period last year.

Moreover, the promotional activities from certain destinations were suspended in the second quarter, our other revenues decreased about 7% year-over-year, mainly due to reduction in fees for advertising services we provided in the domestic market, we see more rapid growth in self-guided tour products such as our Hotel+X products. These products are usually less profitable than Otto.

For the summer occasion, domestic travel market maintained steady growth momentum, high-quality organized it products such as small growth tours and private towards are welcomed by customers. Some of our MC partners set only small growth to our products to recommend to their viewers. Out on the market continues to feed some uncertainties, which dragged down the growth of outbound travel destinations such as Middle East, still recorded negative growth in July.

But other destinations, such as Singapore, late and Americas grew healthily during the summer. Slide many people to off-peak travel this year with more holidays to introduce we are seeing transaction volume from become more evenly spread across the months. For example, since the coming report back and the National Day holiday are very close to each other.

Many people plan to take longer locations acting the holiday. Therefore, we are seeing bookings in the last week of September serving this play as of today, towers to long-haul outbound destinations such as Americas and Oceania during the week we have already surpassed the same period last year.

Lastly, although we don't scale special profit outlook we will try to achieve the profitability for another quarter.

Thank you did that answer your questions, Sarah?

Yes.

(Operator Instructions)

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

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 coming months.

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