Page 4 - Fiscal Year 2015 Results

 

 

Fiscal Year 2015 Results 

 

Net revenues were RMB7.6 billion (US$1,180.2 million) in 2015, representing a 116.3% increase from 2014. The increase was primarily due to the growth in revenues from organized tours, self-guided tours and other revenues. The number of trips sold increased by 103.9% to 4,449,053 in 2015 from 2,181,834 in 2014.

  • Revenues from organized tours, substantially all of which are recognized on a gross basis, were RMB7.4 billion (US$1,136.0 million) in 2015, representing a 114.4% increase from 2014. The increase was primarily due to the rapid growth in demand for travel to certain international destinations, such as Europe, Southeast Asia, Japan, and North America and for domestic tours. In 2015, the number of trips of organized tours (excluding local tours) increased by 129.4% to 1,632,955 up from 711,847 in 2014, and the number of trips of local tours increased by 58.4% to 1,701,821 up from 1,074,335 in 2014.

 

  • Revenues from self-guided tours, which are recognized on a net basis, were RMB194.2 million (US$30.0 million) in 2015, representing a 108.5% increase from 2014. The increase in revenues was primarily due to the growth in travel to domestic destinations, certain islands, and Japan. The number of trips of self-guided tours increased by 181.6% year-over-year to 1,114,277 in 2015 up from 395,652 in 2014.

 

  • Other revenues, were RMB127.7 million (US$19.7 million) in 2015, representing a 344.2% increase from 2014. The increase was primarily due to a rise in service fees received from insurance companies, revenues from tourist attraction tickets and other travel-related products, which are recognized on a net basis.

Cost of revenues was RMB7.3 billion (US$1,123.0 million) in 2015, representing a 119.9% increase from 2014. As a percentage of net revenues, cost of revenues was 95.2% in 2015 compared to 93.6% in 2014.

 

Gross margin was 4.8% in 2015 compared to 6.4% in 2014. The decline in gross margin was primarily due to Tuniu's competitive pricing strategy and the higher costs associated with the new regional service centers.

 

Operating expenses were RMB1.8 billion (US$281.8 million) in 2015, representing a 161.1% increase from 2014. Share-based compensation expenses, which were allocated to operating expenses, were RMB64.4 million (US$9.9 million) in 2015. Amortization of acquired intangible assets, which was allocated to operating expenses, was RMB56.5 million (US$8.7 million) in 2015. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB1.7 billion (US$263.2 million) in 2015, representing a 158.0% increase from 2014.

 

 

  • Research and product development expenses were RMB298.2 million (US$46.0 million) in 2015, representing a 184.3% increase from 2014. Non-GAAP research and product development expenses, which excluded share-based compensation expenses of RMB3.5 million (US$0.5 million) and amortization of acquired intangible assets of RMB0.7 million (US$0.1 million), were RMB293.9 million (US$45.4 million) in 2015, representing a 185.6% increase from 2014. The increase was primarily due to investments for the implementation of additional product categories and initiatives, increase in direct procurement related personnel at regional service centers, improvement of online technology, and the rise in technology and product development personnel related expenses.

 

 

  • Sales and marketing expenses were RMB1.2 billion (US$178.2 million) in 2015, representing a 165.8% increase from 2014. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses of RMB1.1 million (US$0.2 million) and amortization of acquired intangible assets of RMB55.1 million (US$8.5 million), were RMB1.1 billion (US$169.5 million) in 2015, representing a 153.4% increase from 2014. The increase was primarily due to branding campaigns, advertisements for our mobile business development, and amortization of acquired intangible assets from the previously announced transaction with JD.com.

 

  • General and administrative expenses were RMB385.4 million (US$59.5 million) in 2015, representing a 130.8% increase from 2014. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses of RMB59.7 million (US$9.2 million) and amortization of acquired intangible assets of RMB0.6 million (US$95.1 thousand), were RMB325.1 million (US$50.2 million) in 2015, representing a 147.4% increase from 2014. The increase was primarily due to an increase in the headcount of our administrative personnel as a result of our business expansion, such as regional service center expansion and product category expansion, and an increase in the professional service fees associated with being a public company.