Ctrip Reports First Quarter 2008 Financial Results

SHANGHAI, China, May 15 /Xinhua-PRNewswire-FirstCall/ --

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 quarter ended March 31, 2008.

Highlights for the First Quarter of 2008

-- Net revenues were RMB340 million (US$49 million) for the first

quarter of 2008, up 47% year-on-year.

-- Gross margin was 80% for the first quarter of 2008, remaining

relatively consistent with 79% in the same period in 2007.

-- Income from operations was RMB110 million (US$16 million) for

the first quarter of 2008, up 55% year-on-year. Excluding

share-based compensation charges (non-GAAP), income from

operations was RMB144 million (US$21 million), up 60%

year-on-year.

-- Operating margin was 32% in the first quarter of 2008,

compared to 31% in the first quarter of 2007. Excluding

share-based compensation charges (non-GAAP), operating margin

was 42%, compared to 39% during the same period in 2007.

-- Net income was RMB99 million (US$14 million) in the first

quarter of 2008, up 52% year-on-year. Excluding share-based

compensation charges (non-GAAP), net income was RMB132 million

(US$19 million), up 58% year-on-year.

-- Diluted earnings per ADS were RMB1.43 (US$0.20). Excluding

share-based compensation charges (non-GAAP), diluted earnings

per ADS were RMB1.92 (US$0.27).

-- Share-based compensation charges were RMB33 million (US$5 million),

accounting for 10% of the net revenues, or RMB0.48 (US$0.07) per

ADS, for the first quarter of 2008.

"During the first quarter of 2008, we achieved strong financial results despite of the challenges due to weather conditions," said Min Fan, Chief Executive Officer of Ctrip. "We are not only gaining new customers and business, but we are also strengthening our brand recognition in the travel industry. We will continue to provide high quality service to our customers. We believe Ctrip will be able to improve its position in this promising and challenging market."

First Quarter 2008 Financial Results

For the first quarter of 2008, Ctrip reported total revenues of RMB367 million (US$52 million), representing a 47% increase from the same period in 2007 and a 4% decrease from the previous quarter.

Hotel reservation revenues amounted to RMB171 million (US$24 million) for the first quarter of 2008, representing a 28% increase from the same period in 2007 primarily due to increased hotel booking volume and a 13% decrease from the previous quarter primarily due to decreased hotel booking volume during the Chinese New Year holidays.

Air-ticketing revenues for the first quarter of 2008 were RMB159 million (US$23 million), representing a 68% increase from the same period in 2007 and a 3% increase from the previous quarter, primarily due to increased air ticketing volume.

Packaged-tour revenues for the first quarter of 2008 were RMB27 million (US$4 million), up 67% from the same period in 2007 and 22% from the previous quarter, primarily due to the increased leisure travel volume in the first quarter of 2008.

For the first quarter of 2008, net revenues were RMB340 million (US$49 million), a 47% increase from the same period in 2007. Net revenues decreased by 4% from the previous quarter.

Gross margin was 80% in the first quarter of 2008, remaining relatively consistent with 79% in the same period in 2007 and 81% in the previous quarter.

Product development expenses for the first quarter of 2008 increased by 57% to RMB54 million (US$8 million) from the same period in 2007 primarily due to the increased product development personnel resources. Product development expenses remained relatively consistent with the fourth quarter of 2007. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 13% of the net revenues, remaining consistent with the same period last year and the fourth quarter of 2007.

Sales and marketing expenses for the first quarter of 2008 increased by 36% to RMB66 million (US$9 million) from the same period in 2007 primarily due to the increased sales and marketing personal resources. Sales and marketing expenses decreased 9% from the previous quarter, primarily due to the decrease in advertisement and other sales and marketing activities. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 18% of the net revenues, which was a decrease from 20% in the same period last year and 19% in the previous quarter.

General and administrative expenses for the first quarter of 2008 increased by 42% to RMB43 million (US$6 million) from the same period in 2007 and 17% from the previous quarter 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 7% of the net revenues, which was a decrease from 8% in the same period last year and was relatively consistent with the previous quarter.

Income from operations for the first quarter of 2008 was RMB110 million (US$16 million), which represented a 55% increase from the same period in 2007 and a 13% decrease from the previous quarter. Excluding share-based compensation charges (non-GAAP), income from operations was RMB144 million (US$21 million), representing a 60% increase from the same period in 2007 and a 4% decrease from the pervious quarter.

Operating margin was 32% in the first quarter of 2008, compared to 31% in the first quarter of 2007 and 36% in the previous quarter. Excluding share-based compensation charges (non-GAAP), operating margin was 42% in the first quarter of 2008 compared to 39% in the first quarter of 2007 and was relatively consistent with the previous quarter.

Net income for the first quarter of 2008 was RMB99 million (US$14 million), representing a 52% increase from the same period in 2007, and a 27% decrease from the previous quarter. Excluding share-based compensation charges (non-GAAP), net income was RMB132 million (US$19 million), representing a 58% increase from the same period in 2007, and a 16% decrease from the previous quarter.

The effective tax rate for the first quarter of 2008 was 28%, as compared to 16% in the same period of 2007 and 7% in the previous quarter, primarily due to the application of a statutory tax rate of 25% under the new PRC Enterprise Income Tax Law effective on January 1, 2008 and the increase of share-based compensation, which is not tax-deductible.

Diluted earnings per ADS were RMB1.43 (US$0.20) for the first quarter of 2008. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB1.92 (US$0.27).

As of March 31, 2008, the balance of cash and short-term investment was RMB1.2billion (US$178 million).

Business Outlook

For the second quarter of 2008, Ctrip expects to continue the year-on-year net revenue growth of approximately 30%.

Conference Call

Ctrip's management team will host a conference call at 9:00PM US Eastern Time on May 14, 2008 (or 9:00AM on May 15, 2008 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 12 months at this website.

The dial-in details for the live conference call: U.S. Toll Free Number +1-888-679-8033, International dial-in number +1-617-213-4846; Passcode 44368609. For pre-registration, please click

https://www.theconferencingservice.com/prereg/key.process?key=PRV4XEJAE .

A telephone replay of the call will be available after the conclusion of the conference call through May 22, 2008. 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 70404454.

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, inflation in China, 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 brand recognition to obtain new business partners and consumers, failure to compete against new and existing competitors, damage to infrastructure and technology, loss of services of key executives, PRC laws and regulations governing internet content providers 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 May 14, 2008, 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, March 31, March 31,

2007 2008 2008

RMB RMB USD

(unaudited) (unaudited) (unaudited)

ASSETS

Current assets:

Cash 1,064,418,278 995,642,065 141,991,167

Restricted cash 6,600,000 6,600,000 941,244

Short-term investment 141,174,094 244,675,406 34,893,811

Accounts receivable, net 260,683,770 333,432,023 47,551,629

Prepayments and other current

assets 63,489,599 66,828,893 9,530,647

Deferred tax assets 11,275,767 12,176,823 1,736,569

Total current assets 1,547,641,508 1,659,355,210 236,645,067

Long-term deposits 147,092,990 148,435,023 21,168,714

Land use rights 65,083,814 113,655,194 16,208,670

Property, equipment and

software 267,194,788 261,169,490 37,246,077

Investment 80,416,250 66,733,271 9,517,009

Goodwill 14,595,849 14,595,849 2,081,553

Other long-term assets 2,918,809 2,883,895 411,280

Total assets 2,124,944,008 2,266,827,932 323,278,370

LIABILITIES

Current liabilities:

Accounts payable 230,904,562 290,243,510 41,392,400

Salary and welfare payable 65,497,142 48,229,234 6,878,100

Taxes payable 49,079,149 66,970,888 9,550,897

Advances from customers 96,672,341 59,985,587 8,554,704

Accrued liability for

customer reward program 44,659,657 48,920,981 6,976,751

Dividend payable 119,497,083 119,497,083 17,041,797

Other payables and accruals 65,731,210 58,522,381 8,346,033

Total current liabilities 672,041,144 692,369,664 98,740,682

Other long-term payables 1,625,000 812,500 115,873

Total liabilities 673,666,144 693,182,164 98,856,555

Minority interests 1,158,767 1,187,728 169,385

SHAREHOLDERS' EQUITY

Share capital 2,742,210 2,750,380 392,239

Additional paid-in capital 791,336,910 845,979,468 120,647,386

Statutory reserves 60,869,845 60,869,845 8,680,811

Accumulated other

comprehensive loss (36,420,706) (67,581,929) (9,638,039)

Retained Earnings 631,590,838 730,440,276 104,170,033

Total shareholders' equity 1,450,119,097 1,572,458,040 224,252,430

Total liabilities and

shareholders' equity 2,124,944,008 2,266,827,932 323,278,370

Ctrip.com International, Ltd.

Consolidated Statement of Operations Information

Quarter Ended Quarter Ended Quarter Ended Quarter Ended

March 31, December 31, March 31, March 31,

2007 2007 2008 2008

RMB RMB RMB USD

(unaudited) (unaudited) (unaudited) (unaudited)

Revenues:

Hotel reservation 133,468,270 196,035,352 171,191,560 24,414,084

Air-ticketing 94,616,770 154,237,437 158,541,464 22,610,021

Packaged tour 15,996,277 21,957,224 26,793,008 3,821,022

Others 5,100,040 10,858,044 10,136,005 1,445,523

Total revenues 249,181,357 383,088,057 366,662,037 52,290,650

Less: business tax

and related

surcharges (16,965,212) (26,881,936) (26,173,023)(3,732,605)

Net revenues 232,216,145 356,206,121 340,489,014 48,558,045

Cost of revenues (48,559,779) (66,431,356) (67,996,984)(9,697,231)

Gross profit 183,656,366 289,774,765 272,492,030 38,860,814

Operating expenses:

Product

development* (34,017,541) (53,789,064) (53,529,592)(7,633,998)

Sales and

marketing* (48,394,455) (72,479,914) (65,921,612)(9,401,257)

General and

administrative* (30,166,714) (36,441,878) (42,723,133)(6,092,859)

Total operating

expenses (112,578,710) (162,710,856)(162,174,337)(23,128,114)

Income from

operations 71,077,656 127,063,909 110,317,693 15,732,700

Interest income 3,266,557 5,687,116 7,458,357 1,063,656

Other income 2,834,202 13,213,622 18,852,930 2,688,667

Income before

income tax

expense and

minority

interests 77,178,415 145,964,647 136,628,980 19,485,023

Income tax expense (12,249,292) (10,500,536) (37,750,581)(5,383,711)

Minority interests (6,752) 30,958 (28,961) (4,130)

Net income 64,922,371 135,495,069 98,849,438 14,097,182

Earnings per

ordinary share

- Basic 1.99 4.09 2.98 0.42

- Diluted 1.92 3.92 2.86 0.41

Earnings per ADS

- Basic 0.99 2.04 1.49 0.21

- Diluted 0.96 1.96 1.43 0.20

Weighted average

ordinary shares

outstanding

- Basic 32,669,661 33,168,650 33,221,615 33,221,615

- Diluted 33,742,356 34,572,760 34,521,152 34,521,152

* Share-based

compensation

charges

included

are as

follows:

Product

development 4,844,239 6,035,924 8,102,104 1,155,463

Sales and

marketing 2,971,775 3,573,726 5,033,868 717,893

General and

administrative 10,772,464 12,762,148 20,319,682 2,897,844

Ctrip.com International, Ltd.

Reconciliation of GAAP and Non-GAAP Results

(In RMB, except % and per share information)

Quarter Ended March 31, 2008

% of Share- % of % of

GAAP Net based Net Non-GAAP Net

Result Revenue Compensation Revenue Result Revenue

Product development (53,529,592) 16% 8,102,104 2% (45,427,488) 13%

Sales and marketing (65,921,612) 19% 5,033,868 1% (60,887,744) 18%

General and

administrative (42,723,133) 13% 20,319,682 6% (22,403,451) 7%

Total operating

expenses (162,174,337) 48% 33,455,654 10% (128,718,683) 38%

Income from

operations 110,317,693 32% 33,455,654 10% 143,773,347 42%

Net income 98,849,438 29% 33,455,654 10% 132,305,092 39%

Diluted earnings per

ordinary share (RMB) 2.86 -- 0.97 -- 3.83 --

Diluted earnings per

ADS (RMB) 1.43 -- 0.48 -- 1.92 --

Diluted earnings per

ADS (USD) 0.20 -- 0.07 -- 0.27 --

Quarter Ended December 31, 2007

% of Share- % of % of

GAAP Net based Net Non-GAAP Net

Result Revenue Compensation 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

administrative (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 --

Quarter Ended March 31, 2007

% of Share- % of % of

GAAP Net based Net Non-GAAP Net

Result Revenue Compensation Revenue Result Revenue

Product development (34,017,541) 15% 4,844,239 2% (29,173,302) 13%

Sales and marketing (48,394,455) 21% 2,971,775 1% (45,422,680) 20%

General and

administrative (30,166,714) 13% 10,772,464 5% (19,394,250) 8%

Total operating

expenses (112,578,710) 48% 18,588,478 8% (93,990,232) 40%

Income from

operations 71,077,656 31% 18,588,478 8% 89,666,134 39%

Net income 64,922,371 28% 18,588,478 8% 83,510,849 36%

Diluted earnings per

ordinary share (RMB) 1.92 -- 0.55 -- 2.47 --

Diluted earnings per

ADS (RMB) 0.96 -- 0.28 -- 1.24 --

Diluted earnings per

ADS (USD) 0.12 -- 0.04 -- 0.16 --

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=RMB7.0120 on March 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.

For further information:

Jade Wei

Ctrip.com International, Ltd.

Tel: +86-21-3406-4880 X 11543

Email: yuwei@ctrip.com