Tuniu (TOUR) 9 Jun 222022 Q1 Earnings call transcript

Hello. And thank you for standing by for Tuniu's 2022 First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference is being recorded.

objections, disconnect any this have you you at may time. If Mary. the now call, to Relations, like would meeting Director to Investor conference I today's turn over for your of host Mary, please go ahead.

XXXX And you. earnings welcome our Thank first to conference quarter call.

today on Chen, Tuniu's Anqiang Founder, Donald me Controller. Financial Chief Joining are Officer; and Executive Yu, call the and Tuniu's Chairman

of operational performance for financial today's management XXXX. For and agenda, will highlights discuss first business quarter updates, the

press release, we statements. Harbor reconciliation earnings our comparable Before a discussions of contains I measures. statement as financial call to to refer Also, non-GAAP release Please measures. directly includes forward-looking GAAP applies Safe our which non-GAAP we continue, you call of make measures this certain which most earnings refer to in will this to

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

day, our most severe Mary. beginning the we the seen you, call. first have XXXX. of of this Welcome COVID-XX the in conference earnings Good initial resurgence since From Thank XXXX year, quarter everyone. breakout to

industry confident building it's company in and a experience with the near [indiscernible], patients, in that recovery are short-term Tuniu for As we the this industry coping resume has with resilience will future.

we quality, During the as past new challenges. which on of all service cost on continue will to to innovation, quarter, competitive take we opportunities product us remain focus and

domestic outlet, Bank aged X customers' temporary of and constantly innovating for regulations, rank X and are among for we the public prevention which XX to for Even models. XX. top our while study In a late to According in played about the sales most that top and our midstream Shareholder between up order list travel dynamic feel remains demand as products complying XX part media the consumers the consumption, resurgence pandemic by travel, satisfy at has to high. with consumers, the out of categories working the recent

we local growth model, winter nearby In the Leveraging which screen ex-product resources, more for picking initiated hotel to our public a order selections market, we our of products the gardens. plus as educational provide aside cities travel and our and local customers. cover in resources and and teen of zoos hotel our Elaborating travel series we leader tour diverse museums, offerings terms the such work products, seasonal development destinations. tour of city products, launched of product products off have tour state also city for in within

Our this, product to become market has Among mirror innovations more designed popular. are trends. camping

offering with families campaign We of high-quality children. for landing have camping young recently and begun customers [indiscernible] and

with fixed able During drive help increase that tours, growth. the have saw line sales their will confirmation booking the May Tuniu most are the and from a channel this sell products through to traveling In travel key in travel infusive moto leveraged to camping strong COVID-XX which receive and the of date later sales this outbreak. bookings adopted significant the advanced option term products, make model. Tuniu's travel, of to shows cancellation, departure streaming for full the fully holiday refund of related Customers customers year, live discounts sales our especially interprovincial among with has also future. booking

customers partly Tuniu both during in in and destination us members our well improve first specifically services regular reconditions feedback customer sales to shows cycle channel trend product around our for providing and gate, are -- as streaming has well shows pandemic. to our promotions. customers also shows an adheres important featuring for travel streaming to offerings. centers outdoor, posted for our as the help daily COVID-XX as live travel products, multichannel have addition product live We as regional Tuniu's collecting

the Our exchange service local services tour in with work resurgence. during they safety spike and operators our or team to providing closely monitoring pandemic during situation has response travel, been timely customer ensure guest

out. service a loyal constant for recommendations, that booking. has products our repeat overall customers and on providing basis been our advanced pandemic of communicate reputation of high-quality available increasing our number services, Tuniu gained contribution especially regular customer and our Our over since the customers tour GMV to has of years quick through teams customers and the a for are products the provide broke discounting

with for them will We our service future continue provide high-quality and plans. to customers to help travel hard work

like development. our to I would talk ESG about Next,

on pandemic, with China, a employees safety proper guidelines, control such and enjoying order work focus local local In of prevention remotely to have of product products, development specialty terms we launched regional travel for economy. in of strategy made tourism take in travel. and work pandemic we in of faced destinations areas home channels In through agriculture development the collaborated especially regions and products, work our have we different for health. to authentic Throughout arrangements our customized -- putting also in the state remote for we great who guests flexible products, the are We better launched supporting as our the shifts. care experience sales working from here local while and allowing employees accordance with to local

We for click the to guests. also of new and sales health staff, testing destinations local our especially reception staff safety the our based regular and implemented ensure at

them then recent to ignite out to engaged the building and pandemic our carried and during continue internal resurgence We the and trainings activities motivated. teams for staff and competitions team keep core

tests such also healthy outdoor mentally. and several and encourage physically video, contest short to our employees activities out running recreational stay to as We carried

the adjusted to narrowed that COVID-XX many see provinces support community We the we restrictions the to which the are industry. recovery, services. still travel In cities. Even guidance prevention travel emit the to from confident [indiscernible] inter-province full on China's were encouraged facing to volunteers and of future addition health and are challenges about road remain we to though recently,

customers, support in traveling travel While our of Chen, overall to rise believe the will over despite financial the Anqiang highlights. for patients Controller, will return our Financial with the continues guests of call to resurgence I now soon. days demand of the and the the the turn pandemic, and we that China

Donald. Hello, everyone. Thank you,

Now earnings otherwise I'll U.S. of first on you equivalents through find walk our on quarter the detail. financial you XXXX greater onetime that of unless note can numbers dollar Please the the release. in RMB, results monitoring stated

tourism China. primarily year-over-year. Other to XXXX in down impact Revenues RMBXX.X for The net first COVID-XX and decrease the in and million, million, to operate by year-over-year provided total was net to due a were the For of due quarter. in RMBXX.X regions certain year-over-year The decrease tours Operating first XX% the the quarter XX% and were revenues million period the net XXXX. to quarter of brought RMBXX.X negative accounted for to the of decrease decrease and revenues. in of primarily of accounted year-over-year. were representing decrease XX% revenues corresponding year-over-year million fees primarily quarter from package down due down is down COVID-XX. of advertising the was the RMBXX.X for XXXX from the accounted of and the XX% RMBXX.X were XX% of resurgence total was XXXX, revenues services the for The spread for our profit XX% XX% our million, Gross first to for expenses boards -- to bureaus.

primarily development non-GAAP year-over-year. Excluding for research year-over-year. of was due were the of The promotion down up decrease in the research The the of client decrease share-based was representing assets, XX%. our million, to personnel-related product and expenses. a XX% expenses development quarter amortization were compensation RMBXX.X XXXX decrease RMBXX.X product and and expenses expenses Sales was and amortization primarily first for in intangible XXXX. to XXXX. shareholders, XX% RMBXX.X quarter operating quarter for in million million, increase the accounts. The XXXX first of administrative for increase to million, Non-GAAP expenses down marketing RMBXX.X due year-over-year the loss RMBXX.X administrative first in million and and allowance first to of of were expenses in was doubtful net the excluded quarter first acquired personnel-related RMBXX.X assets XXXX expenses shareholders XX% decrease which decrease for online primarily general Net expenses of were million, the of online expenses. share-based quarter to loss compensation attributable The the and attributable due and intangible was year-over-year. General

were As RMBX.X expenditures the million. and million. of XXXX XXXX, cash equivalents, first company March XX, has and restricted cash RMBXXX.X short-term of of quarter the for cash investments Capital

note the brought uncertainties operations, its to Thank net review which listening. revenue, of For to a company year-over-year. you million the subject RMBXX.X preliminary quarter XX% decrease the impact about forecasts as XX% RMBXX.X XXXX, that of on to of the to and these expects and change, current by Tuniu's million generate for which COVID-XX. particularly second is the represents reflect Please to industry

are now We questions. your Operator? for ready

Thank you.

We begin Please question-and-answer will from question with The ahead. the [Operator session. first Retail. today go Instructions] Al] [Grace comes now

Thank you. a for Hello, is my I name management. have question Grace.

view strategic there Thank with compared industry months. resurgence past of first half the what year past? measures be the company risks of the know, Will the changes you and industry few development in tourism we of for is circumstances, any with pleased the deal the second pandemic. in will the to of the do to take future tourism COVID-XX currently As because severe challenges how the the And the on you.

the Thank you question. for

We current the domestic has rebound our the in of are pandemic the [indiscernible] well as of facing half first negatively The as most of since quarter the market, the severe the affected XXXX. first year. travel revenues

to the remain the In the to the pandemic with The number national popular it releasing doubled but the capture the tend feed. believe of with and provide reps under the will flexible. we spring. holiday momentum impact glad are demand of the phase decreased past number parental design domestic continue has we tourism may pandemic the of side, In more our eventually the [indiscernible] to we pent-up. the concept demand This To interactive location going see temporarily However, the people campaign of travel the -- product despite follows will for the activities and avenues eased. be long of pandemic, which gradually festival. reset recently, products, and has coming spring during insist that the since day market restrictions been something. tourism provided not to to pent-up by summer the industry compared are infections the grow demonstrated of our month, recovery control. down uncertainties be On we in innovative And personalized enjoy increasing retail adding one

get just other their if can trips at time refund. model. adopts are free book to later and any or departure date On choose our booking or or products side, are advanced product delayed travel a they People congestion sales the canceled any

always provide In terms we full first service important customer help to us to cycle retain It's about fresh. our market of service, especially principle so services and with insist customers, care when is customers. the to Group the customers.

Our customer is Tuniu providing likely close be with service returned customers customer related our travel choice to to the during reinforce Therefore, pandemic of plan them the when travel. first with customer messages. stickiness to their regular to contact

something to travel pandemic addition, In brings industry, the new. we the and trying changes are also

we rural because tourism captures the further For concept it and example, tour. developed local momentum both tourism of the

develop industry experience country characteristic activities. local More, our general, design new big as we challenging in will for customers, with post. commendation [indiscernible] to special as which the we products team travel the tourism by to under we them. fit include cooperate find the the our business and also Thank ourselves, destinations, a definition stay local environment deeply competitiveness you. well the potential across and Our should knowledge while more local this for of with technicians run strong Based travelled We scope. customers and on trying attract for find to a have core In Tuniu's economy. growth

there the remarks. Instructions] And questions. further appears now Director to Investor closing be Tuniu's [Operator conference Mary, I for of any turn over to no will Relations,

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

for concludes the you participation conference. Thank presentation. in your today's This

You a disconnect. may now good Have day.