#China #Nanjing #Tuniu Corporation #fiscal results #travel services

Tuniu Corporation's FY 2024 Financial Highlights

Tuniu Corporation, a premier online leisure travel company based in China, has shared its unaudited financial results for the fourth quarter and the entire fiscal year of 2024. This announcement marks a critical milestone for the company as it showcases consistent growth and strategic adjustments made during the year.

Fiscal Year Overview

In the entirety of 2024, Tuniu reported revenues from package tours reaching RMB 407.5 million (approximately USD 55.8 million), an impressive increase of 22.2% compared to 2023. This surge in revenue is reflective of the robust demand for organized tours, a sector that has proven resilient in the evolving travel market.

The gross profit for the fiscal year was RMB 358.0 million (around USD 49.1 million), a commendable 21.9% increase year-over-year. Notably, the company also announced its first full-year GAAP profit since being listed on Nasdaq, a signal of its operational recovery and strategic repositioning.

Net income for the fiscal year amounted to RMB 83.7 million (USD 11.5 million), a significant turnaround from the net loss of RMB 101.1 million in the previous year. Tuniu also recorded non-GAAP net income, which reached a record high at RMB 87.3 million (USD 12.0 million) for 2024.

Fourth Quarter Results

For the last quarter of 2024, Tuniu generated net revenues of RMB 102.7 million (USD 14.1 million), marking a 2.8% increase from the previous year. Revenues from packaged tours during this quarter were RMB 75.4 million (USD 10.3 million), highlighting the steady growth in organized travel services.

However, the cost of revenues for the fourth quarter increased by 30.1% to RMB 32.9 million (USD 4.5 million), indicating a rising operational cost that impacts gross profits. Consequently, the gross profit for the quarter stood at RMB 69.8 million (USD 9.6 million), which marked a decrease of 6.5% year-over-year.

Operating expenses in this period also saw a notable decrease of 58.3%, totaling RMB 82.5 million (USD 11.3 million). This adjustment was largely due to the substantial impairment of goodwill recorded in the fourth quarter of 2023, which pressured last year’s financials considerably. The lower operating costs coupled with increased revenues contributed to a significant reduction in the loss from operations, bringing it down to RMB 12.7 million (USD 1.7 million) from RMB 123.4 million the year prior.

Tuniu's strategic investments in research and product development increased by 27.8%, amounting to RMB 13.3 million (USD 1.8 million), emphasizing the company's commitment to innovation in its service offerings.

Future Outlook and Strategic Focus

Looking forward, Tuniu's management expressed optimism about the upcoming fiscal year, projecting net revenues between RMB 116.6 million and RMB 122.0 million in the first quarter of 2025, indicating an anticipated growth of 8% to 13% compared to the same period for 2024. The company plans to continue expanding its product lines and strengthening its partnerships with both online and offline channels to enhance customer experiences.

The board of Tuniu has also approved a cash dividend of USD 0.012 per ordinary share, aiming to return value to shareholders as the company continues on its path of recovery and growth.

In conclusion, Tuniu Corporation's financial results for fiscal year 2024 illustrate a strong rebound and an effective realignment of their business strategy within the online travel framework, setting a positive tone for ongoing operations in 2025.