Tuniu has announced the unaudited Q1 2020 Fiscal results. According to the details, the company has generated the net revenue of RMB174.0 million in the first quarter of 2020 with a decrease of 61.9% YoY from the previous quarter of 2019.
The company has generated total revenues from the packaged tours up to RMB120.2 million in the Q1 2020 with a YoY decrease of 67.1% from the previous quarter. The company said that the primary reason behind the decrease is Covid-19 pandemic.
The cost of revenue of the company was RMB 81.5 million in the Q1 2020 with a YoY decrease of 60.5% from the previous quarter of 2019. The company reported the increase in the gross margin up to 53.2% in the Q1 2020 as compared to the 54.9% of the previous quarter of 2019. The operating expenses of the company were RMB308.0 million in the Q1 2020 with a YoY decrease of 28.6% from the previous quarter of 2019.
Chief Executive Officer, Founder and Chairman of Tuniu, Mr. Donald Dunde said, “Even though travel restrictions implemented during the COVID-19 pandemic remain in place, we are positive on the long-term prospect as there has been a strong accumulation of demand for travel products. By leveraging our experience in Tuniu-branded products and an established network of local tour operators, we will shift our focus on the domestic market to offer high-quality domestic travel products to customers, in order to meet the near-term challenges.”
“We are also utilizing new forms of distributions such as live-streaming and social marketing to stimulate customer interest in various destinations and travel products. Lastly, we remain committed to minimizing our expenditures and optimizing our cash flows in preparation for the full recovery of China’s leisure travel market,” Mr. Donald Dunde concluded.
Nathaniel worked as a reporter for an online news publication in China for two years, covering general city news; he also used to work for an international travel agency before pursuing a career in journalism. In his free time, Nathaniel enjoys outdoor recreation, following sports of all kinds. Nathaniel Schultz reports about Business category. Before joining Marketsnip.com, he worked as a news reporter for other publications, covering technology and health reporting. He earned his Master’s at School of Journalism, where he worked as a news reporter besides learning pertinent skills in magazine editing and interactive production.
He can be reached email at [email protected]
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