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