Tuniu (TOUR) 1 Dec 222022 Q3 Earnings call transcript

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

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

earnings and call. you welcome our third Thank to quarter XXXX conference

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

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

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

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

XXXX our peak Mary. Good business China’s you, Thank a the this travel COVID-XX quarter, more control and industry of beginning strong rebounded over quarter day, call. arrival the Tuniu’s as effective showed season. Welcome to In the with of recovery summer third earnings everyone. conference

service, to compared our the of have industry since overall seek marketing in [ph]. [ph] outbreak by new tool pandemic meet service, measures the demand products external strengthen in the more the the recent impacted quarter, we as opportunities. location post customer company our XXX% and we plans, to and as second and in travel demand customer roll-out net both have remained [resiliency] While focused pandemic quarter. the on these growth time quality XXXX, tourism revenues revenues packaged to environment. high have August Meanwhile, in challenges, upgraded have design, to we and well control continuing tours third customer products XXX% uncertainties cost constantly [face risk] the impacted as from Tuniu's providing Since and over increased and been Despite increased over

integrated model and quality provide marketing now our the customers Tuniu's of products Turning ability to foundation production, to with high products. our supply, is

Firstly, we are selection. chain our with stricter supply

our we supplier our direct and changes, the strengthened products continue particularly might procurement local Following withdrawal process. our self-operated be providing to resources satisfaction evaluation of with of industry our service including with counter and have supply destinations, advantages rates. quality the And suppliers have market. by industry reorganized extraction tour operators from reliable outbreak, chain some impacted pandemic the this, we our To at leading from

have streamlined we advantages more popular our on our Secondly, and the of travel focused and [ph] leverage key focus efforts towards [scale] product technicians to creating production products. SKUs

will local operators During quarter, focus transaction peak and tour popular new such season, and Guangdong. compared the volume summer Xinjiang, self-operated and as products Yunnan tour roles last year. province XXX% team to both the Yunnan, the third Guangdong exceeded in and on destinations our In

our collaborated tail on product while operations of reviewing the destinations and some long strictly with quality. we For products, partners

[indiscernible], we featuring innovation, products. to opportunities Village agriculture product tourism popular village seize of and developing In shows continued products. streaming the the B&Bs terms live village so and tour

economies. attracting helped the product this customers, promote development local to addition innovative In offering of

In addition products. to new self-operated [introductions] era, is, the B&B exploring including new [ph] for products post-pandemic

than operating quarter. a XX% profit [Xinjiang] year in in third with been exceeding the gross operating [ph] products Our has more for

channel short attract cities, expand community and channels light regions. the near mainly for to products our most company's shows, with continue customer guests be popular this membership tourist are industry for asset to outdoor products Live will a existing weekend new locations We popular models streaming promotional – the to the tourism local proven from media new usually have combines B&B and and located videos acquisition. and other tours. now. in self-operated one of and These Tuniu plus creates

of covers mainstream and different marketing tourism travel industry. a launched experience we media and new leveraging media in Our covering self-live platforms the preferences, our number multiple streaming regions shows

live China million has on Eastern live shows shows region long life top the Douyin of shows in of several of live the One sales October. exceeding of streaming been services Tuniu’s With terms in GMV. in streaming X among streaming style RMBXX our in

and local restaurants In and addition, external such scenic spots, clients co-operating bureaus new with also models tourism and business cultural directions. to as we are install the hotels,

first has post-pandemic has our the customers. always important guided for quality And guest to services our Regarding especially customer more service, safety become Tuniu's era, FICO during principle approach providing ever. high than

self-operated our personally travel guests before tour by staff safety our tourist experience. potential traffic order the season, in to our any fun and eliminate arrival the peak the route of ensure guests caused operator to visit will During a hazard local scenic comfortable heavy

In later date, booking, to allow pandemic peace amidst uncertainties. mind product terms of at with confirm a we greater providing products many online options offer of that booking

For all we product, provide behalf. revision services their our on customers purchased a who self-operated

reservations to not scenic do they with not they – self-operated So, spots need by or make hotels themselves. do to need

For offer. service have order customers yet to petition about those team in manner timely remind Tuniu's customers [indiscernible]. service notify award to not will a Customer reach special will who a latest have to book trip also customer in them purchased their booked out the products, but the

the time. terms of are us like key a works digitalization automated order and technology capacity we creative booking efficiency a In free-up allow cover departure leveraging and process more AI for manual By for complicated request as R&D. option with and internal a such flow, daily processing flexibility leverage online and improve product we efficiency. and able processing to technology, to the technology, later labor confirmation at dates This our of tasks operations our to

recurring is With and impact pressure. travel pandemic the facing end of recent this outbreak, summer peak the the industry of temporarily the season

product and deeper will I us when the weather now customer our industry with that our company the to service is position Anqiang highlights. Controller Tuniu Financial benefit resilient the call current able for the capabilities are a tourism, turn we will and Also, rebound. in confident over As financial Chen, challenges. experience to to

everyone. Hello, Thank you, Donald.

XXXX you monetary third walk financial in are quarter note of detail. Please our I’ll all greater stated. amounts otherwise through Now, unless in the RMB that results

find release. the equivalent the dollar can earnings U.S. our You in of numbers

margin net net certain to revenues. China. in due [XX%] resurgence XX.X quarter XX.X increase down in regions accounted million of [ph] of net increase XX% For the [ph] [resurgence] to related up [ph] compared due a XXXX, revenues a XXXX, from Other was to quarter million, decrease year-over-year. were the third XX% to was The to revenues of expenses XX% in million XX% primarily to XX.X revenues quarter. travel our down the XX.X fees year-over-year [XX%] the for third XXXX of was gross of were for impact The and packaged commission representing decrease primarily XX% quarter total negative COVID-XX. received of year-over-year The period spread year-over-year the quarter products. accounted in the of in and the third other were of for XXXX. XX% were Revenues Operating and from Gross tours corresponding total margin XXXX. due of COVID-XX in third decrease for by the brought was of primarily from the the the

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

As of XXXX quarter cash short-term and and had of cash, equivalents, the company X for the investments September restricted million. third cash expenditures were XXXX, XXX.X of million. Capital

the current and impact operations, by for the to listening. change, new of the the to forecast of For a that XXXX, million preliminary uncertainties be particularly the will company year-over-year. to industry to as quarter subject which fourth the of you [indiscernible] about XX.X XX.X flat represents brought generated to net its is and note Thank view XX% Please decrease which million XX% revenues, COVID-XX. on

your now are We ready Operator? for questions.

go from Instructions] Please question Private ahead. Yang] first [ph], a [Operator Our [Lily comes today Investor.

overall you, is industry the challenges solution your Hi, of continuous tourism faced plan? Under is current the influence strategic Thank so with and operator. you. company's and what Thank management. future uncertainties, around COVID-XX China,

Thank mid-August. cases tourism pandemic were until reported the rebounded stream fewer you In from for the third since question. industry quarter, the late

from also than and and strong see, the the soon as the we difficulties on industry built a control, financial market always increased a listed We Our long basis. [ph] reported quarter-over-quarter companies will [packaged-tours] as revenues over under are better despite results, have [indiscernible]. [indiscernible]. scenic And is XXX% can we the in these quarter. performance show From areas the previous uncertainties pandemic operated that many the in A-share company

domestic focus to advantages. These of core have will are quality all, [ph] continue to services integrated of market] on high the travel years model. provide over under First experience and [leisure we XX products and we where our competitive

by we are Although Currently, growth we are every some user focusing are long-term demand. breakthrough in our the we the pent-up seek stability by [indiscernible]. phasing take and development impacted The chance requires change development on on on customer business, of business us of growth pandemic about from our revenues will core to customers. products with positive Apart attract our factors, of release as services the It our based external the resurgence to new enough COVID-XX, of of the also areas. continuous epidemic services revenues products driven drive the temporarily demand track keep and improves, situation preference. and provided our that good improving the

for tend a and and will the [safe] travelers personalize by era, [stream] solution such plus products, them, good Besides travels. in would is while areas [ph] B&B a scenic scale run be for nice nonstandard also to B&B example, [ph], few products, providing post-pandemic For ourselves. small we and

our post for invested began years live destinations products we've of where area shows introduction about since issues XXXX. We pandemic another through ago live-streaming during the travel the services time. travelers is and [indiscernible] and started vacation, children the rate selling streaming some leisure summer the optionality During with increase. in Live-streaming show value-add which for Xinjiang [indiscernible] families B&B provide such to contributed as

have Now platforms. covering we media dozens live-streaming major of shows

and Some also product We food volume already from in over achieved drinks, platform. continue we besides more into meanwhile, million of related to suppliers. agricultural and expand many recreational selling have our to suppliers [indiscernible] category supply them saw equipment, products packaged platforms the are XX our other products In tours distribute RMBXX from travel develop the own qualified products, sales travel on and third-party [ph]. our showrooms. on medium million that products and travel end, we [focus] can to we sellers And

We with wish opportunities more and are some live-streaming development. collaboration for on shows dig-out partners to open any to

the enthusiasm Finally, [indiscernible] inter province and in restrictions [adjusted [ph] has tour] an measures, update on the among We after November. announcement travel of increased. for travel pandemic see public the

For to products and the the both platform [ph]. on [rise] of are visits searches number our

still needs of well-positioned are we for rebound new you. market respond, the time recovery. Thank to Although a

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

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

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

now may disconnect. Good You day.