Financial Performance - Tongcheng Travel Holdings Limited reported a significant increase in revenue, reaching approximately RMB 1.2 billion, representing a year-on-year growth of 30%[9]. - The company achieved a net profit of RMB 200 million, which is a 25% increase compared to the same period last year[9]. - The gross margin improved to 40%, up from 35% in the previous year, indicating better cost management[9]. - The company has set a performance guidance of RMB 1.5 billion in revenue for the next half of the year, reflecting continued growth momentum[9]. - Revenue for the three months ended June 30, 2022, decreased by 38.3% year-to-year to RMB1,318.7 million from RMB2,138.0 million in the same period of 2021[10]. - Adjusted EBITDA for the same period decreased by 46.8% from RMB549.7 million in Q2 2021 to RMB292.2 million in Q2 2022, with an adjusted EBITDA margin of 22.2%[10]. - Adjusted net profit decreased by 73.2% from RMB417.9 million in Q2 2021 to RMB112.0 million in Q2 2022, resulting in an adjusted net margin of 8.5%[10]. - For the six months ended June 30, 2022, revenue decreased by 19.1% year-to-year to RMB3,036.6 million from RMB3,751.7 million in the same period of 2021[15]. - Adjusted EBITDA for the six months ended June 30, 2022, decreased by 24.9% year-to-year from RMB972.7 million to RMB730.7 million, with an adjusted EBITDA margin of 24.1%[15]. - Adjusted net profit for the six months ended June 30, 2022, decreased by 50.4% from RMB719.8 million to RMB357.0 million, resulting in an adjusted net margin of 11.8%[15]. User Engagement - User data showed that the total number of active users reached 50 million, marking a 15% increase year-on-year[9]. - Average monthly active users (MAUs) decreased by 28.9% year-to-year from 277.9 million in Q2 2021 to 197.6 million in Q2 2022[10]. - Average monthly paying users (MPUs) decreased by 21.9% year-to-year from 33.4 million in Q2 2021 to 26.1 million in Q2 2022[10]. - Average MAUs for the six months ended June 30, 2022, decreased by 13.6% year-to-year from 256.1 million to 221.2 million[15]. - Average MPUs for the six months ended June 30, 2022, decreased by 4.9% year-to-year from 30.4 million to 28.9 million[15]. - Approximately 80% of the average MAUs in the second quarter of 2022 were contributed from the Weixin mini program[21]. - Approximately 80% of average monthly active users in Q2 2022 came from WeChat Mini Programs[23]. Market Expansion and Strategy - The company plans to expand its market presence by entering three new cities in the next quarter, aiming for a 20% increase in market share[9]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the travel industry[9]. - New product offerings, including customized travel packages, are expected to launch in Q3 2023, targeting a 10% increase in customer engagement[9]. - The company aims to leverage diversified traffic sources and enhance products and services to transition from an OTA to an ITA[26]. - The company plans to penetrate untapped travel markets, particularly in lower-tier cities, through innovative capabilities[26]. - The company continued to explore offline user acquisition initiatives, particularly in lower-tier cities, to expand its user base[22]. Cost Management and Expenses - Total cost of revenue decreased by 24.2% from RMB505.4 million for the three months ended June 30, 2021, to RMB383.2 million for the same period in 2022, driven by a decline in order processing costs and costs of pre-purchased travel-related products[44]. - Order processing costs fell from RMB249.3 million (49.3% of total cost of revenue) in Q2 2021 to RMB147.8 million (38.6% of total cost of revenue) in Q2 2022[43]. - Employee benefit expenses increased from RMB60.2 million (11.9% of total cost of revenue) in Q2 2021 to RMB73.5 million (19.2% of total cost of revenue) in Q2 2022, reflecting an increase in the number of employees[43]. - Selling and marketing expenses decreased by 35.0% from RMB884.6 million in Q2 2021 to RMB574.7 million in Q2 2022, mainly due to reduced advertising and promotion expenses[46]. - Administrative expenses increased from RMB126.2 million in Q2 2021 to RMB134.9 million in Q2 2022, primarily due to higher employee benefit expenses[47]. Investments and Acquisitions - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the travel industry[9]. - The company acquired the remaining 53.5% equity interest in Beijing MIOT Technology Co., Ltd. on February 18, 2022, enhancing its technological and service capabilities[94]. - The company plans to continue exploring potential acquisitions, investments, joint ventures, and partnerships aligned with its overall business strategies[95]. Corporate Governance and Leadership - The company has complied with the Corporate Governance Code provisions during the six months ended June 30, 2022[192]. - Changes in the board included the resignation of four directors and the appointment of Mr. Yang Chia Hung as an independent non-executive director effective June 6, 2022[194]. - The company has a strong leadership team with extensive experience in the travel and technology sectors[196][197][198]. - The leadership team includes professionals with advanced degrees from prestigious universities, indicating a strong educational background[199]. Employee Incentives and Share Options - The company has adopted various share incentive plans, including the 2016 and 2018 Share Incentive Plans, to motivate and retain employees[95]. - The 2016 Share Incentive Plan aims to enhance the value of the Company by linking the personal interests of directors and employees to shareholder returns[113]. - The 2018 Share Incentive Plan allows for a maximum of 163,240,270 Shares to be awarded, representing approximately 7.35% of the issued shares as of June 30, 2022[120]. - The 2022 Share Option Plan was adopted on May 31, 2022, to provide better rewards to Eligible Participants who contribute to the Group's development[161]. - The maximum number of Shares that may be granted under the 2022 Share Option Plan is 55,459,938, representing 2.5% of the outstanding Shares as of May 31, 2022[167].
同程旅行(00780) - 2022 - 中期财报