Tuniu Corp (TOUR) Q4 2025 Earnings Call Transcript

Hello, and thank you for standing by for TUNY's 2025 Fourth Quarter and Full Year Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Mary.

Thank you, Betsy. And welcome to our 2025 fourth quarter and four-year earnings conference call. Joining me on the call today are Donald Yu, to News Founder, Chairman, and Chief Executive Officer, and Anqiang Chen, to News Financial Controller. For today's agenda, management will discuss business updates, release, operation highlights, and financial performance for the fourth quarter and fiscal year 2025. Before we continue, I refer you to our Safe Harbor Statement in the Earnings Press Release which applies to this call as we will make forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in RMB. I would now like to turn the call over to our founder, chairman, and chief executive officer, Donald Yu.

Good day, everyone. Welcome to our fourth quarter and four-year 2025 earnings conference call. In the fourth quarter, our business continued to maintain solid growth momentum. Net revenues increased by 20% year-over-year, exceeding our previous guidance. While revenues from our core package tool products grow at an even faster pace, rising 35% year-over-year, we achieve end-the-year. The third consecutive year following the we have delivered a four-year non-GAAP profitability, three-year period from March 2026, and share shareholders with sustainable returns and our confidence in the long-term outlook of the travel industry. It continued to grow in a healthy manner in the past year. The creation of national holidays, while the increasing number of visa-free days is easier for Chinese travelers to explore more destinations overseas. In 2025, we adopted a more proactive product strategy, differentiating our products and the product lines, more tailored, our suppliers attract more customers. We continued to attract high-quality partners to expand new channels and enhance service quality for our customers, continued to increase the transaction volume. In addition, we actively embraced leveraging innovation tools to further enhance our product and service, and improve in more detail for delivering high-quality and price-competitive products. In 2025, we further enhanced our direct and centralized procurement strategies in order to load resources and introduced several connecting flights for select long-haul travel products. Sea coverage is more convenient for travelers to take advantage of airline discounts available in those hubs. Pricing and further boosted demand for related destinations of cities such as Chengdu and Ulumuchi destinations themselves to combine stop-overs with linear visits. As a result, these products stand upon launch. Our Caucasus sales recorded over year-over-year growth in transaction volume in 2025. We will continue to expand these offerings by adding more departure points and the destinations. In terms of product strategy to buy products in both time and budget. In 2025, new tour introduced a wider range of niche destination products. Organized the tour's products to the Caucasian and to South America in October, implementing a zero-shopping policy including the effective products. In 2025 we expanded our new select offerings to cover a broader array of internationals with more competitive pricing. The new select products have attracted wider customer travel budgets in the same budget. An option that stronger series recorded over 10,000 paid bookings during the summer holiday continued rise in demand for self-guided tours travel market for our hotel plus x products with hotels as the core and supported by the discovery in china chinese mainland and further for our self-drive tour products recorded a triple digit year-over-year growth. We will continue this strategy by expanding the supply and destination coverage of our self-guided tool products. In 2025, we continued to explore and expand and diversify the important role for our sales. In 2025, both payment and verification continued to record double-digit year-over-year growth. contributed over 15% in 2025, compared to approximately 10% in 2024. The product style of live streaming offerings. Beyond the traditional, we added personalized long-haul outbound travel products, enriching customers' advantages to ensure competitive For example, live stream audiences are good value for money, including inviting live streamers to broadcast live from destination sites. In March last year, Tuneo partnered with multiple live streamers to conduct a 21-day on-site live-streaming campaign across 10 islands in the Mildews market of experience, professional tour guidance, and comprehensive travel-related services. In addition, we specialize the system support in place to deliver a smoother redemption essential part of our overall sales and service network. In 2025, we operated more than 400 stores nationwide, local markets to enhance operational efficiency and reduce costs. In 2025, transaction volume from offline stores increased by nearly 20% year-over-year, such as traffic platforms and corporate clients to the specific needs of each store. on traffic platforms, sales of standalone products as well as products for employees. Fourth quarter of 2025, transaction value increased by more than 20% year-over-year. Integration scenarios with large with one-stop services including smart search comparations, personalized recommendations, and dynamic packaging, technological tools into our daily operations. These initiatives have improved efficiency and helped control operating costs by the growing adoption of our AI tools among both gradually AI agents for booking capability interface, enabling them to search to support high-steady progress while managing a range of challenges. Overall, the company continues to move forward on a sustainable development path. Refining our products and services, diversify the channels to support stable financial controller for the financial highlights.

Now, I will walk you through our fourth quarter and fiscal year 2025 financial results in greater detail. Please note that our number three amounts are in RMB unless otherwise stated. You can find the U.S. dollar equivalents of the numbers in our earnings release were $123.5 million, representing a year-over-year increase of 20% from the corresponding period in 2024. from package tools were up 35% year-over-year to $102.1 million and accounted for 83% of our total net revenue for the course primarily due to the growth of organized tools and self-guided tools 21% year-over-year to $5 million and accounted for 17% of our total net revenues was primarily due to the decrease of merchandise sales in 2025 was $17 million, which was almost in line for the fourth quarter of 2025 year-over-year. Research and product development expenses for the fourth quarter of 2025 were $12.3 million, primarily due to the decrease in research and product development personnel-related expenses 2025 were 44.1 million, up 3% year-over-year, only due to the increase in promotion expenses and administration for the fourth quarter of 2025 were 12.8 million, down 52% due to the employment of property and equipment net recorded in the fourth quarter of 2024. attributable to ordinary shareholders of two new corporations was $1.5 million in the fourth quarter of 2025. Gap net income attributable to ordinary shareholders of two new corporations. Social expenses and amortization of acquired intangible assets was $3.5 million in the fourth quarter of 2025. The company had cash and cash equivalent of $1.1 billion. For the fourth quarter of 2025, for the fourth quarter of 2025, worth 0.5 million, 25 results. In 2025, net revenues were 578 million. Year-over-year increase, 21% year-over-year, to 493.5 million. And accounted for 85% of our total net revenues in 2025. growth and self-guided tours, $5 million, and accounted for 15% of our total net revenues in 2025, due to the decrease in the commission fees received from other travel-related products, $5 million in 2025, and $23.7 million in 2025, primarily due to the increase in research and product development personnel-related expenses were $193.9 million in 2025. The increase was primarily due to the increase in promotion expenses were $71.8 million in 2025, 15% year-over-year, increased in general and administrative personnel-related expenses and employment of property and equipment net to ordinary shareholders of two new corporations, $0.1 million in 2025. Non-GAAP net income attributable to ordinary shareholders of two new corporations, which excluded share-based compensation expenses, amortization of acquired intangible assets, and employment of property and equipment net worth $42.6 million in 2025, $4.4 million in 2025. 2025, 2026, 125.7 million to 131.6 million of net revenues led to new current and preliminary weaves on the industry and its operations, which is subject to change.

We will now begin the question and answer session. To ask a question, you may press star and 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the key. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster.

To ask a question, please press star then 1 to enter the question queue.

Questions at this time, I will now turn the call over to 2NEWS Director of Investor Relations, Mary.

Once again, thank you for joining us today. Please don't hesitate to contact us if you have any further questions. Thank you for your continued support, and we look forward to speaking with you in the coming months.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Have a good day.