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Tuniu(TOUR) - 2024 Q4 - Annual Report
TOURTuniu(TOUR)2025-04-17 10:06
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Financial Performance - The company reported net losses of RMB203.0 million, RMB101.1 million, and net income of RMB83.7 million (US11.5million)fortheyearsendedDecember31,2022,2023,and2024,respectively[468].−Thecompany’saccumulateddeficitwasRMB8,050million(US11.5 million) for the years ended December 31, 2022, 2023, and 2024, respectively [468]. - The company’s accumulated deficit was RMB8,050 million (US1,103 million) as of December 31, 2024 [468]. - The market capitalization of the company dropped to US83.1millionbytheendof2023,whichwas4783.1 million by the end of 2023, which was 47% lower than its net assets of RMB1,112 million [500]. - A full impairment charge of RMB114.7 million for the remaining goodwill was recorded in Q4 2023, reducing the carrying value of goodwill to nil [500]. - The company has not paid dividends to shareholders as its PRC subsidiaries have incurred losses and have not generated accumulated profits [485]. Cash Flow and Liquidity - Net cash provided by operating activities was RMB96.3 million (US13.2 million) in 2024, primarily from cash inflows of RMB3,721.7 million (US509.9million)fromtravelproductsales[470].−Cashandcashequivalents,restrictedcash,andshort−terminvestmentswereRMB923.9million(US509.9 million) from travel product sales [470]. - Cash and cash equivalents, restricted cash, and short-term investments were RMB923.9 million (US126.6 million) as of December 31, 2024 [466]. - The company had net cash used in financing activities of RMB74.0 million (US10.1million)in2024,primarilyduetorepaymentsofborrowings[476].−Thecompanyintendstofunditsmaterialcashrequirementsforatleastthenexttwelvemonthsusingitsexistingcashbalance[482].CustomerAdvancesandBorrowings−AdvancesfromcustomersincreasedfromRMB98.9millionasofDecember31,2022toRMB270.2millionasofDecember31,2023,andfurtherincreasedtoRMB247.2million(US10.1 million) in 2024, primarily due to repayments of borrowings [476]. - The company intends to fund its material cash requirements for at least the next twelve months using its existing cash balance [482]. Customer Advances and Borrowings - Advances from customers increased from RMB98.9 million as of December 31, 2022 to RMB270.2 million as of December 31, 2023, and further increased to RMB247.2 million (US33.9 million) as of December 31, 2024 [465]. - The company had outstanding short-term borrowings of RMB7.3 million and RMB0.04 million (US0.01million)asofDecember31,2023and2024,respectively[467].ExpensesandInvestments−Thecompany’ssalesandmarketingexpensesincreasedfromRMB103.6millionin2022toRMB180.3million(US0.01 million) as of December 31, 2023 and 2024, respectively [467]. Expenses and Investments - The company’s sales and marketing expenses increased from RMB103.6 million in 2022 to RMB180.3 million (US24.7 million) in 2024, primarily due to increased promotion and marketing personnel expenses [465]. - Research and product development expenses decreased from RMB57.0 million in 2023 to RMB52.7 million (US7.2million)in2024,primarilyduetoareductioninpersonnel−relatedexpenses[487].−ThecarryingvalueofthelanduserightandconstructioninprogresswasRMB99.5millionasofDecember31,2024,withimpairmentchargesofRMB15.6millionrecordedfortheyear[502].TechnologyandInfrastructure−Thecompany’stechnologyinfrastructureisbuiltonproprietaryandlicensedtechnologies,focusingonwebsiteoperationsanddataanalytics[486].−Noimpairmentofnon−financialassetsforthecorebusinesswasrecognizedduringtheyearendedDecember31,2024,astheundiscountedcashflowexceededthecarryingvalue[503].RegulatoryandAccountingMatters−Thecompany’sPRCsubsidiariesarerequiredtosetasideatleast107.2 million) in 2024, primarily due to a reduction in personnel-related expenses [487]. - The carrying value of the land use right and construction in progress was RMB99.5 million as of December 31, 2024, with impairment charges of RMB15.6 million recorded for the year [502]. Technology and Infrastructure - The company’s technology infrastructure is built on proprietary and licensed technologies, focusing on website operations and data analytics [486]. - No impairment of non-financial assets for the core business was recognized during the year ended December 31, 2024, as the undiscounted cash flow exceeded the carrying value [503]. Regulatory and Accounting Matters - The company’s PRC subsidiaries are required to set aside at least 10% of their accumulated profits for statutory reserve funds, which they have not started contributing to due to losses [485]. - The company adopted ASC Topic 326 for credit loss measurement, recording a net decrease to retained earnings of RMB19.4 million upon adoption [505]. Foreign Currency Translation - For the year ended December 31, 2024, the company recorded a net foreign currency translation gain of RMB8.0 million (US1.1 million) in accumulated other comprehensive income [461]. Share Price and Market Sentiment - The company’s share price fluctuated, reaching US$0.67 per ADS as of December 31, 2023, reflecting negative market sentiment [500].