#China #Nanjing #Cash Dividend #ADS Ratio Change #Tuniu Corporation

Tuniu Corporation Announces Key Changes

Tuniu Corporation, a prominent player in the online leisure travel industry in China, has made significant announcements that are poised to affect its shareholders. The company declared its intention to change the ratio of its American depositary shares (ADSs) to its Class A ordinary shares. This change will transition from the current structure where one ADS represents three Class A shares, to a new standard where one ADS will represent thirty Class A shares. This decision reflects an effort to streamline its share structure and enhance the trading experience for investors in the U.S. markets.

The new ADS ratio change, which is being described as a reverse ADS split of ten-for-one, is anticipated to take effect around April 22, 2026, pending timely approval from the U.S. Securities and Exchange Commission (SEC). This modification means that current ADS holders will need to exchange ten of their existing ADSs for one new ADS. The process will be managed by JPMorgan Chase Bank, which serves as the depositary bank for Tuniu's ADS program.

A noteworthy aspect of this change is that there will be no fractional new ADSs issued, which typically might create complications for investors. Instead, the bank will aggregate fractional entitlements, sell them, and distribute the net cash proceeds to the relevant ADS holders. Importantly, this ADS ratio change will not affect the underlying Class A shares - no shares will be canceled or issued in its implementation.

Expected Impact of the ADS Ratio Change

With the expected increase in the trading price of the new ADSs, investors have various reactions and forecasts on what this could mean for their investments. While analysts are hopeful for positive outcomes, the company confirms that they cannot guarantee a specific increase in the ADS trading price post-adjustment.

Declaration of Cash Dividend

In tandem with the ADS changes, Tuniu's board of directors has approved a cash dividend amounting to approximately $13 million. This dividend is part of a three-year shareholder return plan authorized in 2026. Shareholders can anticipate receiving a payment of $0.0399 per ordinary share, distributed on or around May 14, 2026. For ADS holders, the exact dividend amount will be announced after the ADS ratio change is formalized.

The cash dividend further strengthens Tuniu's commitment to enhancing shareholder value, reinforcing trust among investors, and fostering long-term relationships.

About Tuniu Corporation

As a leading online leisure travel company, Tuniu Corporation provides an extensive range of travel services, including organized tours and related travel services through its online platform, tuniu.com. This approach allows them to deliver a robust and seamless travel experience. Their customer service infrastructure, which includes dedicated representatives and local tour operations, underscores their commitment to quality service.

Tuniu remains focused on its growth strategy and aims to bolster its market position within the rapidly evolving online travel industry in China. The recent announcements regarding the ADS ratio change and the cash dividend are reflective of its broader strategic goals to enhance value for its shareholders and customers alike.

Conclusion

Tuniu Corporation's recent decisions signify a pivotal moment in its operations, promising to enhance its market appeal and ensure sustainable growth in the competitive online travel sector. Investors and stakeholders will be keenly observing how these changes influence Tuniu's trajectory in the forthcoming years.