Tuniu Corporation

Second-quarter 2026 net revenues were CNY 138.9 million, up 3% year over year. Packaged tours revenue rose 7% to CNY 121.1 million, while other revenues fell 17% to CNY 17.8 million. Gross profit was CNY 76.4 million, down 11% year over year; operating expenses were CNY 82.5 million, up 5%. Net income attributable to ordinary shareholders was CNY 0.7 million, and non-GAAP net income was CNY 2.2 million. Cash and cash equivalents, restricted cash, short-term investments and long-term deposits totaled CNY 1 billion as of June 30, 2026, and operating cash flow was CNY 46.9 million. For the third quarter, Tuniu expects net revenues of CNY 202.1 million to CNY 212.2 million, representing 0% to 5% year-over-year growth.

Donald Yu emphasized that the domestic travel market stayed resilient in the quarter, helped by favorable policies such as spring breaks, while outbound travel faced destination-specific headwinds. He said the company kept expanding its diversified product mix, including small group, private, customized, self-driving, hotel-centric, and premium tour offerings, and also broadened sales through live streaming, MCN partners, and about 500 offline stores. His tone was cautiously upbeat: he said Tuniu is well positioned for the summer season and remains confident in travel demand and business resilience, though uncertainties remain in the second half.

Anqiang Chen detailed that packaged tours drove the quarter, with revenue up 7% to CNY 121.1 million, but gross profit still declined 11% year over year to CNY 76.4 million. Sales and marketing expense rose 22% to CNY 54.7 million due to promotion spending, while R&D fell 16% to CNY 13.8 million and G&A fell 20% to CNY 14.1 million because of lower personnel-related costs. The balance sheet remained solid with CNY 1 billion in cash, investments and long-term deposits, operating cash flow of CNY 46.9 million, and capital expenditures of CNY 1.4 million.

An analyst asked why net profit declined and whether summer bookings and profitability would improve. Management said outbound travel weakness, including a more than 20% year-over-year drop in transaction volume for the Middle East and Africa, lower advertising service fees, and a mix shift toward less profitable Hotel + X self-guided products weighed on earnings. Donald Yu added that summer bookings are improving in some destinations like Singapore, Malaysia and the Americas, and said the company will try to achieve profitability again next quarter, though he did not provide a specific profit forecast.