SHANGHAI, China, Feb. 9 /PRNewswire-Asia/ -- Ctrip.com International, Ltd. (Nasdaq: CTRP), a leading travel service provider for hotel accommodations, airline tickets and packaged tours in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2008.
Highlights for the fourth quarter of 2008
-- Net revenues were RMB396 million (US$58 million) for the fourth
quarter of 2008, up 11% year-on-year.
-- Gross margin was 77% for the fourth quarter of 2008, compared to 81%
in the same period in 2007.
-- Income from operations was RMB117 million (US$17 million) for the
fourth quarter of 2008, down 8% year-on-year. Excluding share-based
compensation charges (non-GAAP), income from operations was RMB149
million (US$22 million), which remained relatively the same as the
same period in 2007.
-- Operating margin was 30% in the fourth quarter of 2008, compared to
36% during the same period in 2007. Excluding share-based
compensation charges (non-GAAP), operating margin was 38%, compared
to 42% during the same period in 2007.
-- Net income was RMB121 million (US$18 million) in the fourth quarter
of 2008, down 10% year-on-year. Excluding share-based compensation
charges (non-GAAP), net income was RMB154 million (US$23 million),
down 2% year-on-year.
-- Diluted earnings per ADS were RMB1.78 (US$0.26). Excluding
share-based compensation charges (non-GAAP), diluted earnings per ADS
were RMB2.26 (US$0.33).
-- Share-based compensation charges were RMB32 million (US$5 million),
accounting for 8% of the net revenues, or RMB0.48 (US$0.07) per ADS
for the fourth quarter of 2008.
Highlights for the full year 2008
-- Net revenues were RMB1.5 billion (US$217 million) in 2008, up 24%
from 2007.
-- Gross margin was 78% in 2008, compared to 80% in 2007.
-- Income from operations was RMB461 million (US$68 million) in 2008, up
14% from 2007. Excluding share-based compensation charges
(non-GAAP), income from operations was RMB590 million (US$86 million)
in 2008, up 20% from 2007.
-- Operating margin was 31% in 2008, compared to 34% in 2007. Excluding
share-based compensation charges (non-GAAP), operating margin was
40%, compared to 41% in 2007.
-- Net income was RMB444 million (US$65 million) in 2008, up 11% from
2007. Excluding share-based compensation charges (non-GAAP), net
income was RMB573 million (US$84 million), up 18% from 2007.
-- Diluted earnings per ADS were RMB6.45 (US$0.95) in 2008. Excluding
share-based compensation charges (non-GAAP), diluted earnings per ADS
were RMB8.32 (US$1.22), compared to RMB7.11 (US$0.97) in 2007.
-- Share-based compensation charges were RMB129 million (US$19 million),
accounting for 9% of the net revenues, or RMB1.87 (US$0.27) per ADS
in 2008.
"Despite the challenges in the travel industry in China, our team delivered a solid result in 2008. We strengthened our market leadership, enhanced our vendor relationship, elevated our customer service level, improved our operation efficiency, and achieved a steady revenue and earnings growth," said Min Fan, Chief Executive Officer of Ctrip. "In the near term, we remain cautious about the global economy. We will prudently manage our business and capitalize the opportunities ahead of us."
Fourth Quarter and Full Year 2008 Financial Results
For the fourth quarter of 2008, Ctrip reported total revenues of RMB423 million (US$62 million), representing a 10% increase from the same period in 2007 and a 6% increase from the previous quarter in 2008.
For the full year ended December 31, 2008, total revenues were RMB1.6 billion (US$233 million), representing a 23% increase from 2007.
Hotel reservation revenues amounted to RMB211 million (US$31 million) for the fourth quarter of 2008, representing a 7% increase from the same period in 2007, driven by a 11% increase in hotel room reservation volume, which was partially offset by a decrease in commission per room. Hotel reservation revenues represented a 13% increase from the previous quarter, primarily due to increased hotel booking volume.
For the full year ended December 31, 2008, hotel reservation revenues were RMB764 million (US$112 million), a 13% increase from 2007. The hotel reservation revenues accounted for 48% of the total revenues in 2008, compared to 53% in 2007.
Air ticket booking revenues for the fourth quarter of 2008 were RMB166 million (US$24 million), representing a 7% increase from the same period in 2007, driven by a 41% increase in air-ticketing sales volume, which was partially offset by a decrease in commission per ticket. Air-ticketing revenue for the fourth quarter of 2008 remained relatively the same as the previous quarter.
For the full year ended December 31, 2008, air ticket booking revenues were RMB659 million (US$97 million), a 31% increase from 2007. The air ticket booking revenues accounted for 42% of the total revenues in 2008, compared to 39% in 2007.
Packaged-tour revenues for the fourth quarter of 2008 were RMB30 million (US$4 million), up 38% from the same period in 2007 and 7% from the previous quarter, primarily due to increased travel demand in the fourth quarter of 2008.
For the full year ended December 31, 2008, packaged tour revenues were RMB109 million (US$16 million), a 53% increase from 2007. The packaged tour revenues accounted for 7% of the total revenues in 2008, compared to 6% in 2007.
For the fourth quarter of 2008, net revenues were RMB396 million (US$58 million), an 11% increase from the same period in 2007. Net revenues increased by 7% from the previous quarter in 2008.
For the full year ended December 31, 2008, net revenues were RMB1.5 billion (US$217 million), a 24% increase from 2007.
Gross margin was 77% in the fourth quarter of 2008, compared to 81% for the same period in 2007 and 77% for the previous quarter.
For the full year ended December 31, 2008, gross margin was 78%, compared to 80% in 2007.
Product development expenses for the fourth quarter of 2008 increased by 19% to RMB64 million (US$9 million) from the same period in 2007 and increased by 5% compared to the previous quarter, primarily due to the increase of product development personnel resources and share-based compensation charges. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 14% of the net revenues, increased slightly from 13% in the same period last year and remained consistent with the previous quarter.
For the full year ended December 31, 2008, product development expenses were RMB236 million (US$35 million), increased by 33% from 2007. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 14% of the net revenues, and increased slightly from 13% in 2007.
Sales and marketing expenses for the fourth quarter of 2008 increased by 12% to RMB81 million (US$12 million) from the same period in 2007 and 15% from the previous quarter, primarily due to the increase of marketing related activities. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 19% of the net revenues, remained relatively consistent with the same period last year and increased slightly from 18% in the previous quarter.
For the full year ended December 31, 2008, sales and marketing expenses were RMB287 million (US$42 million), increased by 18% from 2007. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 18% of the net revenues, and decreased from 19% in 2007.
General and administrative expenses for the fourth quarter of 2008 increased by 13% to RMB41 million (US$6 million) from the same period in 2007, primarily due to the increase of personnel resources and share-based compensation charges. General and administrative expenses decreased by 8% from the previous quarter. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 6% of the net revenues, and decreased from 7% in the same period last year and the previous quarter.
For the full year ended December 31, 2008, general and administrative expenses were RMB172 million (US$25 million), a 24% increase from 2007, primarily due to the increase of personnel resources and share-based compensation charges. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 6% of the net revenues, and decreased from 7% in 2007.
Income from operations for the fourth quarter of 2008 was RMB117 million (US$17 million), decreased by 8% from the same period in 2007 and increased by 10% from the previous quarter. Excluding share-based compensation charges (non-GAAP), income from operations was RMB149 million (US$22 million), remained relatively consistent with the same period in 2007 and increased by 8% from the pervious quarter.
For the full year ended December 31, 2008, income from operations was RMB461 million (US$68 million), increased by 14% from 2007. Excluding share-based compensation charges (non-GAAP), income from operations was RMB590 million (US$86 million), increased by 20% from 2007.
Operating margin was 30% in the fourth quarter of 2008, compared to 36% in the fourth quarter of 2007 and 29% in the previous quarter. Excluding share-based compensation charges (non-GAAP), operating margin was 38% compared to 42% in the fourth quarter of 2007 and 37% in the previous quarter.
For the full year ended December 31, 2008, operating margin was 31%, compared to 34% in 2007. Excluding share-based compensation charges (non-GAAP), operating margin was 40% compared to 41% in 2007.
Net income for the fourth quarter of 2008 was RMB121 million (US$18 million), representing a 10% decrease from the same period in 2007, and a 16% increase from the previous quarter. Excluding share-based compensation charges (non-GAAP), net income was RMB154 million (US$23 million), representing a 2% decrease from the same period in 2007, and a 13% increase from the previous quarter.
For the full year ended December 31, 2008, net income was RMB444 million (US$65 million), representing a 11% increase from 2007. Excluding share-based compensation charges (non-GAAP), net income was RMB573 million (US$84 million), representing an 18% increase from 2007.
The effective tax rate for the fourth quarter of 2008 was 2%, decreased from 7% in the same period of 2007 and 17% in the previous quarter, primarily because certain qualified PRC subsidiaries of Ctrip obtained approval for the High and New Technology Enterprise ("HNTE") status in the fourth quarter. The applicable tax rate for an HNTE is 15%, as compared to the general statutory tax rate of 25%. This preferential status is effective retroactively as of January 1, 2008. Before the HNTE status was obtained, the PRC subsidiaries of Ctrip applied the general statutory tax rate for previous quarters in 2008.
Effective tax rate for the full year ended December 31, 2008 was 19%, compared to 13% in 2007, primarily due to changes of preferential tax treatment under the new PRC Enterprises Income Tax Law effective on January 1, 2008.
The diluted earnings per ADS were RMB1.78 (US$0.26) for the fourth quarter of 2008. Excluding share-based compensation charges (non-GAAP), the diluted earnings per ADS were RMB2.26 (US$0.33).
For the full year ended December 31, 2008, the diluted earnings per ADS were RMB6.45 (US$0.95). Excluding share-based compensation charges (non-GAAP), the diluted earnings per ADS were RMB8.32 (US$1.22), compared to RMB7.11 (US$0.97) in 2007.
As of December 31, 2008, the balance of cash and short-term investment was RMB1.3 billion (US$184 million).
Business Outlook
For the first quarter of 2009, the Company expects to continue the year-on-year net revenue growth at a rate of approximately 5-10%.
Conference Call
Ctrip's management team will host a conference call at 8:00PM US Eastern Time on February 8, 2009 (or 9:00AM on February 9, 2009 in the Shanghai/HK time zone) following the announcement.
The conference call will be available on Webcast live and replay at: http://ir.ctrip.com. The call will be archived for 1 month at this website.
The dial-in details for the live conference call: U.S. Toll Free Number +1.888.679.8034, International dial-in number +1.617.213.4847; Passcode 91828685. For pre-registration, please click https://www.theconferencingservice.com/prereg/key.process?key=PX4QJUFMC.
A telephone replay of the call will be available after the conclusion of the conference call through February 16, 2009. The dial-in details for the replay: U.S. Toll Free Number +1.888.286.8010, International dial-in number +1.617.801.6888; Passcode 86855218.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expect," "anticipate," "future," "intend," "plan," "believe" "estimate," and "confident" and similar statements. Among other things, quotations from management and the Business Outlook section in this press release, as well as Ctrip's strategic and operational plans, contain forward-looking statements. Ctrip may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Ctrip's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, a slow-down of economic growth or an economic downturn in China, disruptions in the financial markets and other macro-economic challenges currently affecting the economy of the United States and other parts of the world, declines or disruptions in the travel industry, volatility in the trading price of Ctrip's ADSs, Ctrip's reliance on the relationships with travel suppliers and strategic alliances, failure to further increase Ctrip's brand recognition to obtain new business partners and consumers, failure to compete against new and existing competitors, damage to or failure of Ctrip's infrastructure and technology, loss of services of Ctrip's key executives, risks associated with any strategic investments or acquisitions, risks and uncertainties associated with PRC laws and regulations governing internet content providers and affecting Ctrip's business in China and other risks outlined in Ctrip's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F and other filings. All information provided in this press release and in the attachments is as of February 8, 2009, and Ctrip does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Ctrip's unaudited consolidated financial statements presented in accordance with the United States Generally Accepted Accounting Principles ("GAAP"), Ctrip uses non-GAAP financial information related to product development expenses, sales and marketing expenses, general and administrative expenses, income from operations, operating margin, net income, and diluted earnings per ordinary share and per ADS, each of which is adjusted from the most comparable GAAP result to exclude the share-based compensation charges recorded under Statement of Financial Accounting Standard 123R, "Share-Based Payment", for 2008 and 2007. Ctrip's management believes the non-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and provides the management better capability to plan and forecast future periods.
The non-GAAP information is not in accordance with GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for the GAAP results. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be significant recurring expenses in our business for the foreseeable future.
Reconciliations of Ctrip's non-GAAP financial data to the most comparable GAAP data included in the consolidated statement of operations are included at the end of this press release.
About Ctrip.com International, Ltd.
Ctrip.com International, Ltd. is a leading travel service provider of hotel accommodations, airline tickets and packaged tours in China. Ctrip aggregates information on hotels and flights and enables customers to make informed and cost-effective hotel and flight bookings. Ctrip also sells packaged tours that include transportation and accommodations, as well as guided tours in some instances. Ctrip targets primarily business and leisure travelers in China who do not travel in groups. These travelers form a traditionally under-served yet fast-growing segment of the travel industry in China. Since its inception in 1999, Ctrip has experienced substantial growth and become one of the best-known travel brands in China.
Ctrip.com International, Ltd.
Consolidated Balance Sheet Information
December 31, December 31, December 31,
2007 2008 2008
RMB RMB USD
(unaudited) (unaudited) (unaudited)
ASSETS
Current assets:
Cash 1,064,418,278 1,069,827,364 156,808,701
Restricted cash 6,600,000 6,600,000 967,387
Short-term investment 141,174,094 176,585,908 25,882,874
Accounts receivable, net 260,683,770 274,302,454 40,205,563
Prepayments and other current
assets 63,489,599 95,150,506 13,946,575
Deferred tax assets 11,275,767 8,840,772 1,295,826
Total current assets 1,547,641,508 1,631,307,004 239,106,926
Long-term deposits 147,092,990 145,500,002 21,326,494
Land use rights 65,083,814 111,510,231 16,344,482
Property, equipment and
software 267,194,788 346,117,083 50,731,709
Investment 80,416,250 237,943,497 34,876,291
Goodwill 14,595,849 63,689,736 9,335,249
Other long-term assets 2,918,809 24,498,763 3,590,878
Total assets 2,124,944,008 2,560,566,316 375,312,029
LIABILITIES
Current liabilities:
Accounts payable 230,904,562 138,657,593 20,323,576
Salary and welfare payable 65,497,142 65,590,151 9,613,800
Taxes payable 49,079,149 54,745,686 8,024,285
Advances from customers 96,672,341 187,576,416 27,493,795
Accrued liability for
customer reward program 44,659,657 58,046,062 8,508,034
Dividend payable 119,497,083 - -
Other payables and accruals 65,731,210 121,421,617 17,797,232
Total current liabilities 672,041,144 626,037,525 91,760,722
Other long-term payables 1,625,000 812,500 119,091
Total liabilities 673,666,144 626,850,025 91,879,813
Minority interests 1,158,767 2,628,093 385,210
SHAREHOLDERS' EQUITY
Share capital 2,742,210 2,761,259 404,728
Additional paid-in capital 791,336,910 967,687,772 141,837,709
Statutory reserves 60,869,845 75,948,298 11,132,033
Accumulated other
comprehensive loss (36,420,706) (175,929,389) (25,786,645)
Retained Earnings 631,590,838 1,060,620,258 155,459,181
Total shareholders' equity 1,450,119,097 1,931,088,198 283,047,006
Total liabilities and
shareholders' equity 2,124,944,008 2,560,566,316 375,312,029
Ctrip.com International, Ltd.
Consolidated Statement of Operations Information
Quarter Ended Quarter Ended Quarter Ended Quarter Ended
December 31, September 30, December 31, December 31,
2007 2008 2008 2008
RMB RMB RMB USD
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Hotel
reservation 196,035,352 186,005,621 210,656,475 30,876,728
Air-ticketing 154,237,437 166,420,800 165,617,198 24,275,148
Packaged tour 21,957,224 28,371,045 30,249,085 4,433,724
Others 10,858,044 16,248,986 16,222,294 2,377,764
Total revenues 383,088,057 397,046,452 422,745,052 61,963,364
Less: business tax
and related
surcharges (26,881,936) (26,909,297) (26,410,272) (3,871,055)
Net revenues 356,206,121 370,137,155 396,334,780 58,092,309
Cost of revenues (66,431,356) (86,404,046) (92,537,662) (13,563,600)
Gross profit 289,774,765 283,733,109 303,797,118 44,528,709
Operating
expenses:
Product
development * (53,789,064) (61,254,023) (64,126,567) (9,399,277)
Sales and
marketing * (72,479,914) (71,028,049) (81,462,069) (11,940,208)
General and
admini-
strative * (36,441,878) (44,819,506) (41,248,253) (6,045,915)
Total operating
expenses (162,710,856) (177,101,578)(186,836,889) (27,385,400)
Income from
operations 127,063,909 106,631,531 116,960,229 17,143,309
Interest income 5,687,116 8,012,955 6,355,910 931,610
Other income 13,213,622 11,442,154 51,802 7,593
Income before
income tax
expense and
minority
interests 145,964,647 126,086,640 123,367,941 18,082,512
Income tax expense (10,500,536) (21,604,489) (1,957,339) (286,894)
Minority interests 30,958 13,291 36,850 5,401
Net income 135,495,069 104,495,442 121,447,452 17,801,019
Earnings per
ordinary share
- Basic 4.09 3.13 3.63 0.53
- Diluted 3.92 3.03 3.57 0.52
Earnings per ADS
- Basic 2.04 1.56 1.82 0.27
- Diluted 1.96 1.52 1.78 0.26
Weighted average
ordinary shares
outstanding
- Basic 33,168,650 33,400,258 33,448,570 33,448,570
- Diluted 34,572,760 34,447,448 34,032,673 34,032,673
*Share-based
compensation charges
included are as
follows:
Product
development 6,035,924 8,131,437 8,588,988 1,258,921
Sales and
marketing 3,573,726 4,496,630 4,769,181 699,037
General and
administrative 12,762,148 18,657,104 19,134,797 2,804,661
Ctrip.com International, Ltd.
Consolidated Statement of Operations Information
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2007 2008 2008
RMB RMB USD
(unaudited) (unaudited) (unaudited)
Revenues:
Hotel reservation 676,511,238 763,726,817 111,942,369
Air-ticketing 503,453,383 659,398,301 96,650,539
Packaged tour 71,495,585 109,244,749 16,012,422
Others 35,818,022 55,968,929 8,203,581
Total revenues 1,287,278,228 1,588,338,796 232,808,911
Less: business tax and
related surcharges (88,167,081) (106,334,164) (15,585,806)
Net revenues 1,199,111,147 1,482,004,632 217,223,105
Cost of revenues (236,226,063) (326,610,463) (47,872,549)
Gross profit 962,885,084 1,155,394,169 169,350,556
Operating expenses:
Product development * (177,301,995) (235,800,504) (34,562,185)
Sales and marketing * (243,314,529) (286,693,188) (42,021,720)
General and
administrative * (137,943,756) (171,693,601) (25,165,790)
Total operating expenses (558,560,280) (694,187,293) (101,749,695)
Income from operations 404,324,804 461,206,876 67,600,861
Interest income 16,703,553 31,100,097 4,558,461
Other income 35,297,223 54,944,595 8,053,440
Income before income tax
expense and minority
interest 456,325,580 547,251,568 80,212,762
Income tax expense (58,005,983) (102,913,404) (15,084,412)
Minority interests 4,013 (230,291) (33,755)
Net income 398,323,610 444,107,873 65,094,595
Earnings per ordinary share
- Basic 12.10 13.32 1.95
- Diluted 11.67 12.90 1.89
Earnings per ADS
- Basic 6.05 6.66 0.98
- Diluted 5.84 6.45 0.95
Weighted average ordinary
shares outstanding
- Basic 32,927,454 33,352,845 33,352,845
- Diluted 34,121,390 34,424,549 34,424,549
*Share-based
compensation charges
included are as
follows:
Product development 22,707,705 32,666,099 4,787,995
Sales and marketing 13,648,562 18,815,878 2,757,915
General and administrative 50,557,618 77,035,498 11,291,388
Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)
Quarter Ended December 31, 2008
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Results Revenue sation Revenue Result Revenue
Product
development (64,126,567) 16% 8,588,988 2% (55,537,579) 14%
Sales and
marketing (81,462,069) 21% 4,769,181 1% (76,692,888) 19%
General and
admini-
strative (41,248,253) 10% 19,134,797 5% (22,113,456) 6%
Total
operating
expenses (186,836,889) 47% 32,492,966 8% (154,343,923) 39%
Income
from
operations 116,960,229 30% 32,492,966 8% 149,453,195 38%
Net income 121,447,452 31% 32,492,966 8% 153,940,418 39%
Diluted
earnings per
ordinary
share (RMB) 3.57 0.95 4.52
Diluted
earnings per
ADS (RMB) 1.78 0.48 2.26
Diluted
earnings per
ADS (USD) 0.26 0.07 0.33
Quarter Ended September 30, 2008
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Results Revenue sation Revenue Result Revenue
Product
development (61,254,023) 17% 8,131,437 2% (53,122,586) 14%
Sales and
marketing (71,028,049) 19% 4,496,630 1% (66,531,419) 18%
General
and admini-
strative (44,819,506) 12% 18,657,104 5% (26,162,402) 7%
Total
operating
expenses (177,101,578) 48% 31,285,171 8% (145,816,407) 39%
Income
from
operations 106,631,531 29% 31,285,171 8% 137,916,702 37%
Net income 104,495,442 28% 31,285,171 8% 135,780,613 37%
Diluted
earnings per
ordinary
share (RMB) 3.03 0.91 3.94
Diluted
earnings per
ADS (RMB) 1.52 0.45 1.97
Diluted
earnings per
ADS (USD) 0.22 0.07 0.29
Quarter Ended December 31, 2007
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Results Revenue sation Revenue Result Revenue
Product
development (53,789,064) 15% 6,035,924 2% (47,753,140) 13%
Sales and
marketing (72,479,914) 20% 3,573,726 1% (68,906,188) 19%
General
and admini-
strative (36,441,878) 10% 12,762,148 4% (23,679,730) 7%
Total
operating
expenses (162,710,856) 46% 22,371,798 6% (140,339,058) 39%
Income
from
operations 127,063,909 36% 22,371,798 6% 149,435,707 42%
Net income 135,495,069 38% 22,371,798 6% 157,866,867 44%
Diluted
earnings per
ordinary
share (RMB) 3.92 0.65 4.57
Diluted
earnings per
ADS (RMB) 1.96 0.32 2.28
Diluted
earnings per
ADS (USD) 0.27 0.04 0.31
Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)
Year Ended December 31, 2008
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Results Revenue sation Revenue Result Revenue
Product
development (235,800,504) 16% 32,666,099 2% (203,134,405) 14%
Sales and
marketing (286,693,188) 19% 18,815,878 1% (267,877,310) 18%
General and
admini-
strative (171,693,601) 12% 77,035,498 5% (94,658,103) 6%
Total
operating
expenses (694,187,293) 47% 128,517,475 9% (565,669,818) 38%
Income
from
operations 461,206,876 31% 128,517,475 9% 589,724,351 40%
Net income 444,107,873 30% 128,517,475 9% 572,625,348 39%
Diluted
earnings per
ordinary
share (RMB) 12.90 3.73 16.63
Diluted
earnings per
ADS (RMB) 6.45 1.87 8.32
Diluted
earnings per
ADS (USD) 0.95 0.27 1.22
Year Ended December 31, 2007
Share-
% of based % of Non- % of
GAAP Net Compen- Net GAAP Net
Results Revenue sation Revenue Result Revenue
Product
development (177,301,995) 15% 22,707,705 2% (154,594,290) 13%
Sales and
marketing (243,314,529) 20% 13,648,562 1% (229,665,967) 19%
General and
admini-
strative (137,943,756) 12% 50,557,618 4% (87,386,138) 7%
Total
operating
expenses (558,560,280) 47% 86,913,885 7% (471,646,395) 39%
Income from
operations 404,324,804 34% 86,913,885 7% 491,238,689 41%
Net income 398,323,610 33% 86,913,885 7% 485,237,495 40%
Diluted
earnings per
ordinary
share (RMB) 11.67 2.55 14.22
Diluted
earnings per
ADS (RMB) 5.84 1.27 7.11
Diluted
earnings per
ADS (USD) 0.80 0.17 0.97
Notes for all the financial schedules presented:
Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is
based on the noon buying rate of USD1.00=RMB6.8225 on December 31,
2008 in The City of New York for cable transfers of RMB as certified
for customs purposes by the Federal Reserve Bank of New York.
Note 2: Effective on July 31, 2007, Company changed ratio of the
American Depositary Shares ("ADSs") to ordinary shares from one (1)
ADS representing one (1) ordinary shares to two (2) ADS representing
one (1) ordinary share. The change is reflected retroactively in the
numbers for all the periods presented above.
