Tuniu Corporation's (NASDAQ:TOUR) ADSs closed lower after the company reported its second-quarter results. Net revenue increased 3.0% year over year to RMB138.9 million, while packaged-tour revenue rose 6.8% to RMB121.1 million as organized tours continued to grow.
However, cost of revenue increased 27.9% to RMB62.5 million, substantially outpacing the top line. Gross profit declined 11.1% to RMB76.4 million, and gross margin contracted to 55.0% from 63.8%. Tuniu consequently swung to a RMB6.1 million operating loss from RMB7.1 million of operating income a year earlier.
Packaged-tour growth indicates that demand for Tuniu's core travel products remains intact. The company has been expanding small-group, private and customized tour offerings in response to demand for more personalized and flexible travel options.
Tuniu also remained marginally profitable below the operating line. GAAP net income attributable to ordinary shareholders was RMB0.7 million. Company-defined non-GAAP net income attributable to ordinary shareholders was RMB2.2 million after excluding share-based compensation and amortization of acquired intangible **** ets.
Liquidity provides additional room to absorb uneven travel demand. Tuniu ended June with approximately RMB1.0 billion in cash and cash equivalents, restricted cash, short-term investments, and long-term deposits. Management said during the earnings call that Tuniu generated RMB46.9 million of operating cash flow while recording RMB1.4 million of capital expenditures.
#tuniu #company #revenue #demand
However, cost of revenue increased 27.9% to RMB62.5 million, substantially outpacing the top line. Gross profit declined 11.1% to RMB76.4 million, and gross margin contracted to 55.0% from 63.8%. Tuniu consequently swung to a RMB6.1 million operating loss from RMB7.1 million of operating income a year earlier.
Packaged-tour growth indicates that demand for Tuniu's core travel products remains intact. The company has been expanding small-group, private and customized tour offerings in response to demand for more personalized and flexible travel options.
Tuniu also remained marginally profitable below the operating line. GAAP net income attributable to ordinary shareholders was RMB0.7 million. Company-defined non-GAAP net income attributable to ordinary shareholders was RMB2.2 million after excluding share-based compensation and amortization of acquired intangible **** ets.
Liquidity provides additional room to absorb uneven travel demand. Tuniu ended June with approximately RMB1.0 billion in cash and cash equivalents, restricted cash, short-term investments, and long-term deposits. Management said during the earnings call that Tuniu generated RMB46.9 million of operating cash flow while recording RMB1.4 million of capital expenditures.
#tuniu #company #revenue #demand
2 hours ago
