Tuniu(US:TOUR)2019-03-03 04:01Financial Data and Key Metrics Changes - In Q4 2018, net revenues were RMB 471.2 million, consistent with the same period last year [18] - Revenues from packaged tours increased by 23% year-over-year to RMB 357.6 million, accounting for 76% of total net revenues [18] - Gross profit rose by 15% year-over-year to RMB 270.2 million, attributed to increased efficiency from economies of scale [19] - For the full year 2018, net revenues were RMB 2.2 billion, a 2% year-over-year increase [22] - Net loss attributable to ordinary shareholders was RMB 64.7 million in Q4 2018, while the full year loss was RMB 187.9 million [21][24] Business Line Data and Key Metrics Changes - Packaged tours accounted for 82% of total net revenues in 2018, with a 15% year-over-year increase to RMB 1.8 billion [22] - Revenues from other services decreased by 32% year-over-year to RMB 409.5 million, representing 18% of total revenues [22] - Direct procurement reached 60% of packaged tour product GMV in Q4 2018 [13] Market Data and Key Metrics Changes - Domestic destinations contributed around 30% of GMV, with Europe at 15%, Japan at 10%, and Southeast Asia at 10% [35] - Approximately 50% of GMV came from lower-tier cities, an increase from 40% at the time of listing [16] Company Strategy and Development Direction - The company aims to enhance its sales and service networks, focusing on direct procurement and improving customer service [26] - Plans to optimize user experience through technology and data, including refining the dynamic packaging system [15][27] - The strategy includes expanding into lower-tier cities to capture growing demand [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external events impacting travel demand but expressed optimism for recovery post-Chinese New Year [37] - The company remains confident in the long-term prospects of the travel industry despite short-term headwinds [37] Other Important Information - Cash flow from operations improved to RMB 268.1 million in 2018, compared to a negative cash flow of RMB 418.7 million the previous year [25] - The company expects Q1 2019 net revenues to be between RMB 432.5 million and RMB 456.5 million, reflecting a 5% to 10% year-over-year decrease [25] Q&A Session Summary Question: What are the key growth drivers in 2019? - Management indicated a focus on increasing sales channels and improving direct procurement capabilities, alongside enhancing user experience [26][27] Question: Can management share projections for 2019 revenue and profit? - Management did not provide specific yearly guidance but expressed confidence in achieving a non-GAAP breakeven year and improving user experience [31][32] Question: Can you share the GMV breakdown by destination? - Management provided a breakdown: Domestic 30%, Europe 15%, Japan 10%, Southeast Asia 10%, Maldives and others 9-10%, Australia and New Zealand 5%, Americas 5% [35] Question: What are your thoughts on the slowing economy and its impact? - Management acknowledged temporary external events affecting key destinations but anticipated a strong recovery and maintained a positive outlook for the travel industry [37]