omniture

Ctrip Reports Fourth Quarter and Full Year 2007 Financial Results

Ctrip.com International, Ltd.
2008-02-28 08:59 860

SHANGHAI, China, Feb. 27 /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 fourth quarter and full year ended December 31, 2007.

Highlights for the fourth quarter of 2007

-- Net revenues were RMB356 million (US$49 million) for the fourth

quarter of 2007, up 58% year-on-year.

-- Gross margin was 81% for the fourth quarter of 2007, compared to 80%

in the same period in 2006.

-- Income from operations was RMB127 million (US$17 million) for the

fourth quarter of 2007, up 69% year-on-year. Excluding share-based

compensation charges (non-GAAP), income from operations was RMB149

million (US$20 million), up 68% year-on-year.

-- Operating margin was 36% in the fourth quarter of 2007, compared to

33% year-on-year. Excluding share-based compensation charges

(non-GAAP), operating margin was 42%, compared to 39% during the same

period in 2006.

-- Net income was RMB135 million (US$19 million) in the fourth quarter

of 2007, up 102% year-on-year. Excluding share-based compensation

charges (non-GAAP), net income was RMB158 million (US$22 million), up

95% year-on-year.

-- Diluted earnings per ADS were RMB1.96 (US$0.27). Excluding share-

based compensation charges (non-GAAP), diluted earnings per ADS were

RMB2.28(US$0.31).

-- Share-based compensation charges were RMB22 million (US$3 million),

accounting for 6% of the net revenues, or RMB0.32 (US$0.04) per ADS

for the fourth quarter of 2007.

Highlights for the full year 2007

-- Net revenues were RMB1.2 billion (US$164 million) in 2007, up 54%

from 2006.

-- Gross margin was 80% in 2007, remained consistent with 80% in 2006.

-- Income from operations was RMB404 million (US$55 million) in 2007, up

58% from 2006. Excluding share-based compensation charges

(non-GAAP), income from operations was RMB491 million (US$67 million)

in 2007, up 59% from 2006.

-- Operating margin was 34% in 2007, compared to 33% in 2006. Excluding

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

41%, compared to 40% in 2006.

-- Net income was RMB398 million (US$55 million) in 2007, up 66% from

2006. Excluding share-based compensation charges (non-GAAP), net

income was RMB485 million (US$67 million), up 64% from 2006.

-- Diluted earnings per ADS were RMB5.84 (US$0.80) in 2007. Excluding

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

were RMB7.11 (US$0.97), compared to RMB4.44 (US$0.57) in 2006.

-- Share-based compensation charges were RMB87 million (US$12 million),

accounting for 7% of the net revenues, or RMB1.27 (US$0.17) per ADS

in 2007.

"In 2007, we further strengthened our market position, enhanced our customer service level, and achieved excellent financial results," said Min Fan, Chief Executive Officer of Ctrip. "We wanted to thank all of our employees for their hard work and dedication, and our customers for their continuing loyalty to Ctrip. In the new year, we will continue to strengthen our core competencies in technology, service, scale and branding, and increase our shareholders' value going forward."

Fourth Quarter and Full Year 2007 Financial Results

For the fourth quarter of 2007, Ctrip reported total revenues of RMB383 million (US$53 million), representing a 59% increase from the same period in 2006 and an 11% increase from the previous quarter in 2007.

For the full year ended December 31, 2007, total revenues were RMB1.3 billion (US$176 million), representing a 54% increase from 2006.

Hotel reservation revenues amounted to RMB196 million (US$27 million) for the fourth quarter of 2007, representing a 42% increase from the same period in 2006 and a 12% increase from the previous quarter, primarily due to increased hotel booking volume.

For the full year ended December 31, 2007, hotel reservation revenues were RMB677 million (US$93 million), a 42% increase from 2006. The hotel reservation revenues accounted for 53% of the total revenues in 2007, compared to 57% in 2006.

Air ticket booking revenues for the fourth quarter of 2007 were RMB154 million (US$21 million), representing a 78% increase from the same period in 2006 and a 12% increase from the previous quarter, primarily due to increased air ticketing volume and commission.

For the full year ended December 31, 2007, air ticket booking revenues were RMB503 million (US$69 million), a 72% increase from 2006. The air ticket booking revenues accounted for 39% of the total revenues in 2007, compared to 35% in 2006.

Packaged-tour revenues for the fourth quarter of 2007 were RMB22 million (US$3 million), up 100% from the same period in 2006 and 6% from the previous quarter, primarily due to increased travel demand in the fourth quarter of 2007.

For the full year ended December 31, 2007, packaged tour revenues were RMB71 million (US$10 million), a 71% increase from 2006. The packaged tour revenues accounted for 6% of the total revenues in 2007, compared to 5% in 2006.

For the fourth quarter of 2007, net revenues were RMB356 million (US$49 million), a 58% increase from the same period in 2006. Net revenues increased by 10% from the previous quarter in 2007.

For the full year ended December 31, 2007, net revenues were RMB1.2 billion (US$164 million), a 54% increase from 2006.

Gross margin was 81% in the fourth quarter of 2007, compared to 80% for the same period in 2006 and in the previous quarter.

For the full year ended December 31, 2007, gross margin was 80%, remained consistent with 2006.

Product development expenses for the fourth quarter of 2007 increased by 73% to RMB54 million (US$7 million) from the same period in 2006 and increased by 12% compared to the previous quarter, primarily due to the increase of product development personnel resources. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 13% of the net revenues, increased slightly from 12% in the same period last year and remained consistent with the previous quarter.

For the full year ended December 31, 2007, product development expenses were RMB177 million (US$24 million), increased by 67% from 2006. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 13% of the net revenues, increased slightly from 12% in 2006.

Sales and marketing expenses for the fourth quarter of 2007 increased by 49% to RMB72 million (US$10 million) from the same period in 2006 and 14% from the previous quarter, primarily due to the increase of sales and marketing personnel resources. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 19% of the net revenues, decreased from 21% in the same period last year and remained consistent with previous quarter.

For the full year ended December 31, 2007, sales and marketing expenses were RMB243 million (US$33 million), increased by 41% from 2006. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 19% of the net revenues, decreased from 21% in 2006.

General and administrative expenses for the fourth quarter of 2007 increased by 45% to RMB36 million (US$5 million) from the same period in 2006, primarily due to the increase of personnel resources and share-based compensation charges. General and administrative expenses remained relatively consistent with the previous quarter. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 7% of the net revenues, decreased from 8% in the same period last year and remained consistent with the previous quarter.

For the full year ended December 31, 2007, general and administrative expenses were RMB138 million (US$19 million), increased by 48% from 2006, 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, decreased slightly from 8% in 2006.

Income from operations for the fourth quarter of 2007 was RMB127 million (US$17 million), increased 69% from the same period in 2006 and 14% from the previous quarter. Excluding share-based compensation charges (non-GAAP), income from operations was RMB149 million (US$20 million), increased 68% from the same period in 2006 and 12% from the pervious quarter.

For the full year ended December 31, 2007, income from operations was RMB404 million (US$55 million), increased 58% from 2006. Excluding share-based compensation charges (non-GAAP), income from operations was RMB491 million (US$67 million), increased 59% from 2006.

Operating margin was 36% in the fourth quarter of 2007, compared to 33% in the fourth quarter of 2006 and 34% in the previous quarter. Excluding share-based compensation charges (non-GAAP), operating margin was 42% compared to 39% in the fourth quarter of 2006 and 41% in the previous quarter.

For the full year ended December 31, 2007, operating margin was 34%, compared to 33% in 2006. Excluding share-based compensation charges (non-GAAP), operating margin was 41% compared to 40% in 2006.

Net income for the fourth quarter of 2007 was RMB135 million (US$19 million), representing a 102% increase from the same period in 2006, and a 24% increase from the previous quarter. Excluding share-based compensation charges (non-GAAP), net income was RMB158 million (US$22 million), representing a 95% increase from the same period in 2006, and a 19% increase from the previous quarter.

For the full year ended December 31, 2007, net income was RMB398 million (US$55 million), representing a 66% increase from 2006. Excluding share-based compensation charges (non-GAAP), net income was RMB485 million (US$67 million), representing a 64% increase from 2006.

Effective tax rate for the fourth quarter of 2007 was 7%, decreased from 14% in the same period of 2006 and 15% in the previous quarter, primarily due to a preferential tax rate granted in the fourth quarter of 2007 and an increase in deferred tax benefit resulting from the application of the tax rate of 25% under the new PRC enterprise income tax law (the "new EIT law") as of December 31, 2007, as required by applicable accounting guidelines.

Effective tax rate for the full year ended December 31, 2007 was 13%, compared to 15% in 2006, primarily due to an increase in deferred tax benefit resulting from the application of the tax rate of 25% under the new EIT law as of December 31, 2007, as required by applicable accounting guidelines.

The diluted earnings per ADS were RMB1.96 (US$0.27) for the fourth quarter of 2007. Excluding share-based compensation charges (non-GAAP), the diluted earnings per ADS were RMB2.28 (US$0.31).

For the full year ended December 31, 2007, the diluted earnings per ADS were RMB5.84 (US$0.80). Excluding share-based compensation charges (non-GAAP), the diluted earnings per ADS were RMB7.11 (US$0.97), compared to RMB4.44 (US$0.57) in 2006.

As of December 31, 2007, the cash balance was RMB1.1 billion (US$147 million), compared to RMB851 million as of December 31, 2006.

Business Outlook

For the full year 2008, the Company expects to continue the year-on-year net revenue growth at a rate of approximately 35%. .

To support the future business expansion, the Company acquired the land use right to a piece of land in Nantong, in January 2008, Nantong is a city in Jiangsu Province and is approximately 110 kilometers north of Shanghai. The Company plans to build its second call center on this piece of land.

The new EIT law became effective on January 1, 2008. The tax rate under the new EIT law is generally 25%, except for certain entities that are subject to preferential tax treatments, such as high and new technology enterprises. However, no guideline has been published on requirements to be satisfied in order to enjoy the preferential tax treatments or on application procedures for such treatments. The Company would apply the general tax rate of 25% before the guidelines on preferential tax treatments are finalized and application for such treatments is approved. The effective tax rate that will eventually apply to the Company for 2008 will depend on many factors, including, but not limited to, whether certain Ctrip's entities can qualify as high and new technology enterprises as such enterprises are defined under the new EIT law.

Note to Financial Statements Information

Certain prior year amounts have been reclassified with no effect on net income or retained earnings to conform to the 2007 financial information presentation.

Conference Call

Ctrip's management team will host a conference call at 8:00PM US Eastern Time on February 27, 2008 (or 9:00AM on February 28, 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 +1-888-679-8035, International dial-in number +1-617-213-4848; Passcode 53676440. For pre-registration, please click https://www.theconferencingservice.com/prereg/key.process?key=PG7TRBKDJ .

A telephone replay of the call will be available after the conclusion of the conference call through March 6, 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 59360401.

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 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, 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, 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 February 27, 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 ADS and per share, 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 2007 and 2006. 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.

-- Tables to Follow -

Ctrip.com International, Ltd.

Consolidated Balance Sheet Information

December December December

31,2006 31,2007 31,2007

RMB RMB USD

(unaudited) (unaudited) (unaudited)

ASSETS

Current assets:

Cash 844,392,604 1,064,418,278 145,918,663

Restricted cash 6,600,000 6,600,000 904,779

Short-term investment -- 141,174,094 19,353,233

Accounts receivable 136,688,354 260,683,770 35,736,541

Prepayments and other current

assets 62,870,154 63,489,599 8,703,643

Deferred tax assets 2,916,151 11,275,767 1,545,769

Total current assets 1,053,467,263 1,547,641,508 212,162,628

Long-term deposits 80,174,984 147,092,990 20,164,641

Land use rights 66,449,208 65,083,814 8,922,191

Property, equipment

and software 153,690,484 267,194,788 36,629,121

Investment 80,416,250 80,416,250 11,024,079

Goodwill 14,595,849 14,595,849 2,000,912

Other long-term assets 3,058,465 2,918,809 400,133

Total assets 1,451,852,503 2,124,944,008 291,303,705

LIABILITIES

Current liabilities:

Accounts payable 151,408,198 230,904,562 31,654,177

Salary and welfare payable 32,778,110 65,497,142 8,978,853

Taxes payable 34,913,392 49,079,149 6,728,148

Advances from customers 38,178,866 96,672,341 13,252,590

Accrued liability for customer

reward program 29,566,712 44,659,657 6,122,290

Dividend payable 72,169,155 119,497,083 16,381,582

Other payables and accruals 62,030,840 65,731,210 9,010,941

Total current liabilities 421,045,273 672,041,144 92,128,581

Other long-term payables 2,437,500 1,625,000 222,767

Total liabilities 423,482,773 673,666,144 92,351,348

Minority interests 672,780 1,158,767 158,853

SHAREHOLDERS' EQUITY

Share capital 2,700,889 2,742,210 375,923

Additional paid-in capital 627,461,168 791,336,910 108,482,564

Statutory reserves 53,787,911 60,869,845 8,344,507

Cumulative translation

adjustments (16,099,263) (36,420,706) (4,992,831)

Retained Earnings 359,846,245 631,590,838 86,583,341

Total shareholders' equity 1,027,696,950 1,450,119,097 198,793,504

Total liabilities and

shareholders' equity 1,451,852,503 2,124,944,008 291,303,705

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,

2006 2007 2007 2007

RMB RMB RMB USD

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

Revenues:

Hotel reservation 137,823,641 175,578,714 196,035,352 26,874,037

Air-ticketing 86,756,060 137,659,009 154,237,437 21,144,057

Packaged tour 10,962,257 20,683,731 21,957,224 3,010,066

Others 6,130,331 11,909,481 10,858,044 1,488,504

Total revenues 241,672,289 345,830,935 383,088,057 52,516,664

Less: business tax

and related

surcharges (15,920,282) (23,160,551) (26,881,936) (3,685,183)

Net revenues 225,752,007 322,670,384 356,206,121 48,831,481

Cost of revenues (45,769,174) (64,011,659) (66,431,356) (9,106,922)

Gross profit 179,982,833 258,658,725 289,774,765 39,724,559

Operating expenses:

Product development* (31,013,066) (47,941,336) (53,789,064) (7,373,820)

Sales and marketing* (48,731,350) (63,466,452) (72,479,914) (9,936,105)

General and

administrative * (25,210,001) (36,269,362) (36,441,878) (4,995,734)

Total operating

expenses (104,954,417) (147,677,150) (162,710,856) (22,305,659)

Income from

operations 75,028,416 110,981,575 127,063,909 17,418,900

Interest income 3,109,720 4,670,322 5,687,116 779,634

Other income (270,934) 13,577,722 13,213,622 1,811,425

Income before

income tax expense

and minority

interest 77,867,202 129,229,619 145,964,647 20,009,959

Income tax expense (10,896,122) (19,518,480) (10,500,536) (1,439,494)

Minority interests (59,509) (32,723) 30,958 4,244

Net income 66,911,571 109,678,416 135,495,069 18,574,709

Earnings per

ordinary share

- Basic 2.06 3.32 4.09 0.56

- Diluted 2.00 3.21 3.92 0.54

Earnings per ADS

- Basic 1.03 1.66 2.04 0.28

- Diluted 1.00 1.60 1.96 0.27

Weighted average

ordinary shares

outstanding

- Basic 32,550,390 33,070,087 33,168,650 33,168,650

- Diluted 33,521,665 34,197,196 34,572,760 34,572,760

* Share-based

compensation

charges included

are as follows:

Product

development 3,614,395 5,918,151 6,035,924 827,451

Sales and

marketing 2,284,821 3,540,669 3,573,726 489,914

General and

administrative 7,962,338 13,396,356 12,762,148 1,749,534

Ctrip.com International, Ltd.

Consolidated Statement of Operations Information

Year Ended Year Ended Year Ended

December 31, December 31, December 31,

2006 2007 2007

RMB RMB USD

(unaudited) (unaudited) (unaudited)

Revenues:

Hotel reservation 476,494,606 676,511,238 92,741,376

Air-ticketing 292,701,199 503,453,383 69,017,271

Packaged tour 41,702,488 71,495,585 9,801,166

Others 23,128,346 35,818,022 4,910,210

Total revenues 834,026,639 1,287,278,228 176,470,023

Less: business tax

and related surcharges (54,075,096) (88,167,081) (12,086,623)

Net revenues 779,951,543 1,199,111,147 164,383,400

Cost of revenues (153,131,864) (236,226,063) (32,383,690)

Gross profit 626,819,679 962,885,084 131,999,710

Operating expenses:

Product development * (105,938,184) (177,301,995) (24,305,924)

Sales and marketing * (172,491,625) (243,314,529) (33,355,431)

General and administrative * (93,173,911) (137,943,756) (18,910,394)

Total operating expenses (371,603,720) (558,560,280) (76,571,749)

Income from operations 255,215,959 404,324,804 55,427,961

Interest income 15,632,481 16,703,553 2,289,852

Other income 11,213,801 35,297,223 4,838,815

Income before income tax expense

and minority interest 282,062,241 456,325,580 62,556,628

Income tax expense (41,277,020) (58,005,983) (7,951,907)

Minority interests (221,374) 4,013 550

Net income 240,563,847 398,323,610 54,605,271

Earnings per ordinary share

- Basic 7.44 12.10 1.66

- Diluted 7.23 11.67 1.60

Earnings per ADS

- Basic 3.72 6.05 0.83

- Diluted 3.62 5.84 0.80

Weighted average ordinary shares

outstanding

- Basic 32,342,998 32,927,454 32,927,454

- Diluted 33,268,220 34,121,390 34,121,390

* Share-based

compensation charges

included are as follows:

Product development 13,694,058 22,707,705 3,112,947

Sales and marketing 8,557,942 13,648,562 1,871,050

General and administrative 32,430,027 50,557,618 6,930,828

Ctrip.com International, Ltd.

Reconciliation of GAAP and Non-GAAP Results

(In RMB, except % and per share information)

Quarter Ended December 31, 2007

Share-

% of based % of % of

GAAP Net Net 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 September 30, 2007

Share-

% of based % of % of

GAAP Net Net Net Non-GAAP Net

Result Revenue Compensation Revenue Result Revenue

Product

development (47,941,336) 15% 5,918,151 2% (42,023,185) 13%

Sales and

marketing (63,466,452) 20% 3,540,669 1% (59,925,783) 19%

General and

administrative (36,269,362) 11% 13,396,356 4% (22,873,006) 7%

Total

operating

expenses (147,677,150) 46% 22,855,176 7% (124,821,974) 39%

Income from

operations 110,981,575 34% 22,855,176 7% 133,836,751 41%

Net income 109,678,416 34% 22,855,176 7% 132,533,592 41%

Diluted

earnings per

ordinary share

(RMB) 3.21 -- 0.67 -- 3.88 --

Diluted

earnings per

ADS (RMB) 1.60 -- 0.33 -- 1.94 --

Diluted

earnings per

ADS (USD) 0.21 -- 0.04 -- 0.26 --

Quarter Ended December 31, 2006

Share-

% of based % of % of

GAAP Net Net Net Non-GAAP Net

Result Revenue Compensation Revenue Result Revenue

Product

development (31,013,066) 14% 3,614,395 2% (27,398,671) 12%

Sales and

marketing (48,731,350) 22% 2,284,821 1% (46,446,529) 21%

General and

administrative (25,210,001) 11% 7,962,338 4% (17,247,663) 8%

Total

operating

expenses (104,954,417) 46% 13,861,554 6% (91,092,863) 40%

Income from

operations 75,028,416 33% 13,861,554 6% 88,889,970 39%

Net income 66,911,571 30% 13,861,554 6% 80,773,125 36%

Diluted

earnings per

ordinary share

(RMB) 2.00 -- 0.41 -- 2.41 --

Diluted

earnings per

ADS (RMB) 1.00 -- 0.21 -- 1.20 --

Diluted

earnings per

ADS (USD) 0.13 -- 0.03 -- 0.15 --

Ctrip.com International, Ltd.

Reconciliation of GAAP and Non-GAAP Results

(In RMB, except % and per share information)

Year Ended December 31, 2007

Share-

% of based % of % of

GAAP Net Net Net Non-GAAP Net

Result Revenue Compensation 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

administrative (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 --

Year Ended December 31, 2006

Share-

% of based % of % of

GAAP Net Net Net Non-GAAP Net

Result Revenue Compensation Revenue Result Revenue

Product

development (105,938,184) 14% 13,694,058 2% (92,244,126) 12%

Sales and

marketing (172,491,625) 22% 8,557,942 1% (163,933,683) 21%

General and

administrative (93,173,911) 12% 32,430,027 4% (60,743,884) 8%

Total

operating

expenses (371,603,720) 48% 54,682,027 7% (316,921,693) 41%

Income from

operations 255,215,959 33% 54,682,027 7% 309,897,986 40%

Net income 240,563,847 31% 54,682,027 7% 295,245,874 38%

Diluted

earnings per

ordinary share 7.23 -- 1.64 -- 8.87 --

(RMB)

Diluted

earnings per

ADS (RMB) 3.62 -- 0.82 -- 4.44 --

Diluted

earnings per

ADS (USD) 0.46 -- 0.11 -- 0.57 --

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=RMB7.2946 on December

31, 2007 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: Certain prior year amounts have been reclassified with no effect

on net income or retained earnings to conform to the 2007

financial information presentation.

Note 3: 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:

Tracy Cui

Ctrip.com International, Ltd.

Tel: +86-21-3406-4880 ext. 12216

Email: jrcui@ctrip.com

Source: Ctrip.com International, Ltd.
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