Tuniu Corporation Q2 FY2025 earnings call

• In the second quarter, net revenues increased by 15% year-over-year and revenues from packaged tours grew by 26%. Tuniu's supply chain allowed effective product strategy execution. • Strengthened supply chain through direct and centralized procurement, resource integration, and supporting suppliers with favorable terms. • Product lines like Niu Tour (targeting mid-to-high-end customers with high repurchase rate) and Niu Select (cost-effective, expanding offerings) saw over 25% year-over-year growth in transaction volume. • Launched first tour in Caucasus region with 100% satisfaction, expanded Caucasus products under Niu Select, and Caucasus transaction volume grew over 150% in Q2. • Live streaming channels contributed an increasing share of transaction volume, with double-digit year-over-year growth in payment and verification volume. Live streaming contribution rose from over 15% to nearly 20% of total transaction volume. • Strengthened offline store network, expanding coverage in key cities. • Explored AI agent application to enhance customer experience and internal efficiency.

For the second quarter of 2025, net revenues were CNY 134.9 million, representing a year-over-year increase of 15%. Revenues from packaged tours were up 26% year-over-year to CNY 113.4 million and accounted for 84% of total net revenues for the quarter. Other revenues were down 21% year-over-year to CNY 21.5 million and accounted for 16% of total net revenues.

• For the third quarter of 2025, the company expects to generate CNY 199 million to CNY 208.3 million of net revenues, which represents a 7% to 12% increase year-over-year. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, subject to change.

Q: Can management share the revenue breakdown by destinations for this quarter? And which destinations drove the growth of packaged tour revenues? Second, can you give more details about the bookings in the summer vacation?

A: As for revenue breakdown by destinations, domestic destinations had double-digit growth during the quarter, outbound tours grew faster than domestic in GMV. Europe, Japan, and Maldives had double-digit growth. Emerging destinations like South America (over 50% growth), Sri Lanka, and Caucasus (over 100% growth) drove growth. Southeast Asia declined roughly 30%. Domestic tours contributed about 2/3 of total GMV and outbound about 1/3 in Q3. For summer vacation, demand increased significantly. Families with children are a main growth segment. Domestic city tours with museums (Xi An, Nanjing) and theme parks (Shanghai, Guangzhou) are hot. Long-haul tours to Huizhou for cool weather. Launched small group tours at competitive prices via live streaming in Guizhou. Outbound travel saw double-digit growth in Japan, Europe, Maldives in July. Singapore and Malaysia gaining popularity despite Southeast Asia headwinds, with Niu Select itineraries covering them passing 10,000 paying customers via live streaming.