#China #Nanjing #financial results #Tuniu Corporation #travel industry

Tuniu Corporation Reports Second Quarter 2025 Financial Results

On August 15, 2025, Tuniu Corporation (NASDAQ: TOUR), a prominent online leisure travel company based in China, disclosed its unaudited financial performance for the second quarter ending June 30, 2025. These results indicate a significant upward trajectory for the company, showcasing resilience and growth amidst a competitive landscape.

Key Highlights

Mr. Donald Dunde Yu, the founder and CEO, expressed satisfaction with the company’s steady performance, detailing a net revenue increase of 15.3% year-over-year. Total revenues reached RMB 134.9 million (approximately US$18.8 million). Notably, revenue from packaged tours surged by 26.3%, reinforcing Tuniu's core operational strengths and market positioning.

The rebounding figures reflect improved consumer demand for leisure travel, aided by post-pandemic recovery efforts and the company’s strategic initiatives. Tuniu's ongoing efforts to optimize its supply chain integration, enrich its product offerings, and enhance digital technology applications across various business scenarios have played a pivotal role in this growth.

During the quarter, Tuniu highlighted its focus on diversifying sales channels, which resulted in the development of tailored products for different customer segments. The company aims to leverage its industry advantages further to forge deeper connections with travelers, thereby enhancing the overall customer experience.

Financial Breakdown

• - Revenues from Packaged Tours: Achieved RMB 113.4 million (approximately US$15.8 million), marking a remarkable year-over-year growth of 26.3%. This increase can be attributed to the expansion in organized and self-drive tours, responding to evolving consumer preferences.
• - Other Revenues: Reported at RMB 21.5 million (approximately US$3.0 million), demonstrating a year-over-year decline of 21.0%. This dip is primarily linked to reduced advertising service fees from tourism boards, signaling shifts in marketing investments.

The cost of revenues amounted to RMB 48.9 million (US$6.8 million), highlighting a substantial year-over-year increase of 50.2%, which raises concerns about profitability margins. The percentage of cost in relation to net revenues stood at 36.2% in Q2 2025, an uptick from 27.8% in the same period last year.

A breakdown of operating expenses reveals:

• - Sales and Marketing Expenses: Increased by 11.9% to RMB 45.0 million (US$6.3 million), driven by personnel and promotional costs.
• - Research and Development Expenses: Climbed by 29.2% to RMB 16.4 million (US$2.3 million), underscoring Tuniu's commitment to innovation.
• - General and Administrative Expenses: Decreased by 18.3% to RMB 17.8 million (US$2.5 million), largely due to an adjustment in credit loss allowances.

Despite a challenging financial environment, Tuniu registered an operating income of RMB 7.1 million (US$1.0 million) in Q2 2025, contrasting with RMB 34.5 million from the previous year. Similarly, net income totaled RMB 14.1 million (US$2.0 million), down from the previous year's RMB 43.0 million.

Future Outlook

Looking ahead, Tuniu anticipates a positive trajectory for the third quarter of 2025, projecting net revenues between RMB 199.0 million and RMB 208.3 million, reflecting a year-over-year growth of 7% to 12%. This forecast aligns with Tuniu's strategic assessments of the travel industry's current landscape.

Share Repurchase Program

In a move to enhance shareholder value, Tuniu’s board has introduced a new share repurchase program, allowing the buyback of ordinary shares worth up to US$10 million. This decision follows the initial program that facilitated the repurchase of approximately 10.6 million ADSs for US$9.9 million.

Conclusion

Tuniu’s latest financial disclosures underline its resilience in the dynamic travel sector, with proactive strategies to capture market opportunities. As the company continues to evolve amidst changing consumer behaviors and market challenges, its focus on innovation and customer-centric solutions will remain key to driving long-term success. For more detailed information about Tuniu’s financial health and strategic outlook, investors can tune into the earnings conference call held earlier today.

For additional inquiries, please visit the Tuniu investor relations website at ir.tuniu.com.