SHANGHAI, Feb. 14, 2011 /PRNewswire-Asia/ -- Ctrip.com International, Ltd.
(Nasdaq: CTRP), a leading travel service provider for hotel accommodations,
airline tickets, packaged tours and corporate travel management in China, today
announced its unaudited financial results for the fourth quarter and the full
year ended December 31, 2010.
Highlights for theFourth Quarterof 2010
-- Net revenues were RMB787 million (US$119 million) for the fourth quarter
of 2010, up 39% year-on-year. In the fourth quarter, Wing On Travel and
ezTravel contributed 8% for the year-on-year growth for net revenues.
-- Gross margin was 78% for the fourth quarter of 2010, compared to 77% in
the same period in 2009.
-- Income from operations was RMB292 million (US$44 million) for the fourth
quarter of 2010, up 54% year-on-year. Excluding share-based compensation
charges (non-GAAP), income from operations was RMB352 million (US$53
million), up 47% year-on-year.
-- Operating margin was 37% for the fourth quarter of 2010, compared to 33%
in the same period in 2009. Excluding share-based compensation charges
(non-GAAP), operating margin was 45%, compared to 42% in the same period
in 2009.
-- Net income attributable to Ctrip's shareholders was RMB302 million
(US$46 million) in the fourth quarter of 2010, up 59% year-on-year.
Excluding share-based compensation charges (non-GAAP), net income
attributable to Ctrip's shareholders was RMB362 million (US$55 million),
up 51% year-on-year.
-- Diluted earnings per ADS were RMB1.98 (US$0.30) for the fourth quarter
of 2010. Excluding share-based compensation charges (non-GAAP), diluted
earnings per ADS were RMB2.37 (US$0.36) for the fourth quarter of 2010.
-- Share-based compensation charges were RMB60 million (US$9 million),
accounting for 8% of the net revenues, or RMB0.39 (US$0.06) per ADS for
the fourth quarter of 2010.
Highlights for thefull year2010
-- Net revenues were RMB2.9 billion (US$437 million) in 2010, up 45% from
2009. In 2010, Wing On Travel and ezTravel contributed 7% for the
year-on-year growth for net revenues.
-- Gross margin was 78% in 2010, compared to 77% in 2009.
-- Income from operations was RMB1.1 billion (US$160 million) in 2010, up
53% from 2009. Excluding share-based compensation charges (non-GAAP),
income from operations was RMB1.3 billion (US$196 million) in 2010, up
59% from 2009.
-- Operating margin was 37% in 2010, compared to 35% in 2009. Excluding
share-based compensation charges (non-GAAP), operating margin was 45%,
compared to 41% in 2009.
-- Net income attributable to Ctrip's shareholders was RMB1.0 billion
(US$159 million) in 2010, up 59% from 2009. Excluding share-based
compensation charges (non-GAAP), net income attributable to Ctrip's
shareholders was RMB1.3 billion (US$196 million), up 63% from 2009.
-- Diluted earnings per ADS were RMB6.97 (US$1.06) in 2010, compared to
RMB4.67 (US$0.68) in 2009. Excluding share-based compensation charges
(non-GAAP), diluted earnings per ADS were RMB8.59 (US$1.30), compared to
RMB5.60 (US$0.82) in 2009.
-- Share-based compensation charges were RMB243 million (US$37 million),
accounting for 8% of the net revenues, or RMB1.61 (US$0.24) per ADS in
2010.
"Year 2010 was a year of opportunities and challenges. The Ctrip team
capitalized on numerous opportunities and overcame many challenges," said Min
Fan, President and Chief Executive officer of Ctrip. "Once again, we delivered
solid results and increased our market share. We want to thank all our
customers, shareholders and employees for your trust and support. We will work
diligently to continuously improve customer service, enrich product offerings,
enhance business partnerships, and extend our leadership in all aspects."
Recent Developments
Strategic Investment inDining Secretary China Ltd.
In the fourth quarter of 2010, Ctrip made an investment in Dining Secretary
China Ltd. Headquartered in Shanghai, Dining Secretary is a leading provider of
free online and offline restaurant reservations for diners. Dining Secretary
operates in many cities in China, serving diners and restaurants with a call
center and the website www.95171.cn.
Through this alliance, the two companies will be able to leverage their
high-quality service experience, computerized operating platform, and expertise
in the restaurant reservation business to provide more comprehensive services to
our customers.
The Launch of Lvping.com
In January of 2011, Ctrip launched Lvping.com, a website that consolidates
travel-related information for travelers including hotel reviews, travel blogs
and forums.
Lvping.com is dedicated to providing travelers with an online platform for
comprehensive travel reviews. Lvping.com inherits valuable content from
Ctrip.com, including authentic hotel reviews, insightful travel guides and a
robust online traveler community. Lvping.com will be further expanding these
services, fulfilling its mission of providing the best travel-related
information to Chinese travelers by operating independently and partnering with
other online travel agencies, hotels, airlines, traditional travel agents,
tourist consumption companies and more.
Fourth Quarter and Full Year 2010Financial Results
For the fourth quarter of 2010, Ctrip reported total revenues of RMB835 million
(US$127 million), representing a 39% increase from the same period in 2009.
Total revenues for the fourth quarter of 2010 decreased by 3% from the previous
quarter due to seasonality.
For the full year ended December 31, 2010, total revenues were RMB3.1 billion
(US$465 million), representing a 44% increase from 2009.
Hotel reservation revenues amounted to RMB360 million (US$55 million) for the
fourth quarter of 2010, representing a 31% increase year-on-year, primarily
driven by an increase of 27% in hotel reservation volume and an increase of 4%
commission per room night year-on-year. Hotel reservation revenues increased 3%
quarter-on-quarter.
For the full year ended December 31, 2010, hotel reservation revenues were
RMB1.3 billion (US$194 million), representing a 36% increase from 2009. The
hotel reservation revenues accounted for 42% of the total revenues in 2010,
compared to 44% in 2009.
Air ticket booking revenues for the fourth quarter of 2010 were RMB320 million
(US$48 million), representing a 35% increase year-on-year, primarily driven by a
29% increase in air ticketing sales volume and a 5% increase in commission per
ticket year-on-year. Air ticket booking revenues increased 1%
quarter-on-quarter.
For the full year ended December 31, 2010, air ticket booking revenues were
RMB1.2 billion (US$183 million), representing a 39% increase from 2009. The air
ticket booking revenues accounted for 39% of the total revenues in 2010,
compared to 41% in 2009.
Packaged-tour revenues for the fourth quarter of 2010 were RMB101 million (US$15
million), representing a 108% increase year-on-year due to the increase of
leisure travel volume. Wing On Travel and ezTravel contributed 84% for the
year-on-year growth for packaged-tour revenues. Packaged-tour revenues decreased
29% quarter-on-quarter due to seasonality.
For the full year ended December 31, 2010, packaged tour revenues were RMB380
million (US$58 million), representing a 116% increase from 2009. Wing On Travel
and ezTravel contributed 67% for the year-on-year growth for packaged-tour
revenues. The packaged tour revenues accounted for 12% of the total revenues in
2010, compared to 8% in 2009.
Corporate travel revenues for the fourth quarter of 2010 were RMB36 million
(US$5 million), representing a 34% increase year-on-year and a 5% increase
quarter-on-quarter, primarily driven by the increased corporate travel demand
from business activities.
For the full year ended December 31, 2010, corporate travel revenues were RMB130
million (US$20 million), representing a 56% increase from 2009. The corporate
travel revenues accounted for 4% of the total revenues in 2010, remaining
consistent with that in 2009.
For the fourth quarter of 2010, net revenues were RMB787 million (US$119
million), representing a 39% increase from the same period in 2009. Net revenues
for the fourth quarter of 2010 decreased by 3% from the previous quarter due to
seasonality. In the fourth quarter, Wing On Travel and ezTravel contributed 8%
for the year-on-year growth for net revenues.
For the full year ended December 31, 2010, net revenues were RMB2.9 billion
(US$437 million), representing a 45% increase from 2009. In 2010, Wing On Travel
and ezTravel contributed 7% for the year-on-year growth for net revenues.
Gross margin was 78% in the fourth quarter of 2010, compared to 77% in the same
period in 2009, and remained consistent with that in the previous quarter.
For the full year ended December 31, 2010, gross margin was 78%, compared to 77%
in 2009.
Product development expenses for the fourth quarter of 2010 increased by 37% to
RMB121 million (US$18 million) from the same period in 2009, primarily due to an
increase in product development personnel and share-based compensation charges.
Product development expenses for the fourth quarter of 2010 decreased by 2% from
the previous quarter. Excluding share-based compensation charges (non-GAAP),
product development expenses accounted for 13% of the net revenues, remaining
consistent with those in the same period in 2009 and in the previous quarter.
For the full year ended December 31, 2010, product development expenses were
RMB454 million (US$69 million), representing an increase of 47% from 2009.
Excluding share-based compensation charges (non-GAAP), product development
expenses accounted for 14% of the net revenues, remaining consistent with those
in 2009.
Sales and marketing expenses for the fourth quarter of 2010 increased by 30% to
RMB127 million (US$19 million) from the same period in 2009, primarily due to
the increase in sales and marketing related activities. Sales and marketing
expenses for the fourth quarter of 2010 increased by 1% from the previous
quarter. Excluding share-based compensation charges (non-GAAP), sales and
marketing expenses accounted for 15% of the net revenues, compared to 16% in the
same period in 2009 and 14% in the previous quarter.
For the full year ended December 31, 2010, sales and marketing expenses were
RMB453 million (US$69 million), representing an increase of 31% from 2009.
Excluding share-based compensation charges (non-GAAP), sales and marketing
expenses accounted for 15% of the net revenues, decreasing from 16% in 2009.
General and administrative expenses for the fourth quarter of 2010 increased by
25% to RMB78 million (US$12 million) from the same period in 2009, primarily due
to an increase in administrative personnel and share-based compensation charges.
General and administrative expenses for the fourth quarter of 2010 decreased by
2% from the previous quarter. Excluding share-based compensation charges
(non-GAAP), general and administrative expenses accounted for 5% of the net
revenues, decreasing from 6% in the same period in 2009 and remained consistent
with those in the previous quarter.
For the full year ended December 31, 2010, general and administrative expenses
were RMB295 million (US$45 million), representing a 50% increase from 2009.
Excluding share-based compensation charges (non-GAAP), general and
administrative expenses accounted for 5% of the net revenues, decreasing from 6%
in 2009.
Income from operations for the fourth quarter of 2010 was RMB292 million (US$44
million), representing an increase of 54% from the same period in 2009 and a
decrease of 5% from the previous quarter. Excluding share-based compensation
charges (non-GAAP), income from operations was RMB352 million (US$53 million),
representing an increase of 47% from the same period in 2009 and a decrease of
4% from the previous quarter.
For the full year ended December 31, 2010, income from operations was RMB1.1
billion (US$160 million), representing an increase of 53% from 2009. Excluding
share-based compensation charges (non-GAAP), income from operations was RMB1.3
billion (US$196 million), increasing by 59% from 2009.
Operating margin was 37% in the fourth quarter of 2010, compared to 33% in the
same period in 2009, and 38% in the previous quarter. Excluding share-based
compensation charges (non-GAAP), operating margin was 45%, compared to 42% in
the same period in 2009 and remained consistent with that in the previous
quarter.
For the full year ended December 31, 2010, operating margin was 37%, compared to
35% in 2009. Excluding share-based compensation charges (non-GAAP), operating
margin was 45%, compared to 41% in 2009.
The effective tax rate for the fourth quarter and full year of 2010 was 19% and
17%, respectively, remaining relatively consistent with the same periods of
2009. The effective tax rate for the fourth quarter of 2010 increased from 17%
in the previous quarter, primarily due to true-up of profitability.
Net income attributable to Ctrip's shareholders for the fourth quarter of 2010
was RMB302 million (US$46 million), representing a 59% increase from the same
period in 2009 and a 6% decrease from the previous quarter. Excluding
share-based compensation charges (non-GAAP), net income attributable to Ctrip's
shareholders was RMB362 million (US$55 million), representing an increase of 51%
from the same period in 2009 and a decrease of 5% from the previous quarter.
For the full year ended December 31, 2010, net income attributable to Ctrip's
shareholders was RMB1.0 billion (US$159 million), representing an increase of
59% from 2009. Excluding share-based compensation charges (non-GAAP), net income
attributable to Ctrip's shareholders was RMB1.3 billion (US$196 million),
representing an increase of 63% from 2009.
Diluted earnings per ADS were RMB1.98 (US$0.30) for the fourth quarter of 2010.
Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS
were RMB2.37 (US$0.36) for the fourth quarter of 2010.
For the full year ended December 31, 2010, diluted earnings per ADS were RMB6.97
(US$1.06), compared to RMB4.67 (US$0.68) in 2009. Excluding share-based
compensation charges (non-GAAP), diluted earnings per ADS were RMB8.59
(US$1.30), compared to RMB5.60 (US$0.82) in 2009.
As of December 31, 2010, the balance of cash, restricted cash and short-term
investment was RMB3.6 billion (US$539 million).
Business Outlook
For the first quarter of 2011, the Company expects to continue the net revenue
growth year-on-year at a rate of approximately 20%. This forecast reflects
Ctrip's current and preliminary view, which is subject to change.
Conference Call
Ctrip's management team will host a conference call at 8:00PM U.S. Eastern Time
on February 13, 2011 (or 9:00AM on February 14, 2011 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 one month 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
54668533. For pre-registration, please click
https://www.theconferencingservice.com/prereg/key.process?key=PQYA87W3R.
A telephone replay of the call will be available after the conclusion of the
conference call through February 21, 2011. 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 66760977.
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 "may," "will," "expect," "anticipate," "future," "intend,"
"plan," "believe," "estimate," "is/are likely to," "confident" or other 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, the slow-down of economic growth in China and the global
economic downturn, general declines or disruptions in the travel industry,
volatility in the trading price of Ctrip's ADSs, Ctrip's reliance on its
relationships and contractual arrangements 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, failure to successfully manage current growth and potential future
growth, risks associated with any strategic investments or acquisitions,
seasonality in the travel industry in mainland China, Hong Kong, Macau or
Taiwan, failure to successfully develop Ctrip's corporate travel business,
damage to or failure of Ctrip's infrastructure and technology, loss of services
of Ctrip's key executives, inflation in China and in other countries, risks and
uncertainties associated with PRC laws and regulations with respect to the
ownership structure of Ctrip's affiliated Chinese entities and the contractual
arrangements among Ctrip, its affiliated Chinese entities and their
shareholders, 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 the date of the issuance, 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 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 ASC
718, "Stock Compensation" for 2010 and 2009. Ctrip's management believes the
non-GAAP financial measures facilitate better understanding of operating results
from quarter to quarter and provide management with a better capability to plan
and forecast future periods.
Non-GAAP information is not prepared 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 GAAP results. A limitation of using non-GAAP
financial measures is that 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, packaged tours, and corporate travel management
in China. Ctrip aggregates hotel and flight information to enable business and
leisure travelers to make informed and cost-effective bookings. Ctrip also books
vacation packages and guided tours. In addition, Ctrip corporate travel
management services help corporate clients effectively manage their travel
requirements. Since its inception in 1999, Ctrip has experienced substantial
growth and become one of the best-known travel brands in China.
For further information, please contact:
Investor Relations
Ctrip.com International, Ltd.
Tel: (+86) 21 3406 4880 X 12258
Email: iremail@ctrip.com
Ctrip.com International, Ltd.
Consolidated Balance Sheet Information
December 31, December 31, December 31,
2009 2010 2010
RMB RMB USD
(unaudited) (unaudited) (unaudited)
ASSETS
Current assets:
Cash 1,434,618,382 2,153,935,111 326,353,805
Restricted cash 113,150,289 224,179,126 33,966,534
Short-term investment 180,183,917 1,178,278,063 178,526,979
Accounts receivable, net 420,579,005 621,548,849 94,174,068
Prepayments and other
current assets 134,318,164 355,831,117 53,913,806
Deferred tax assets,
current 23,446,059 37,136,184 5,626,695
Total current assets 2,306,295,816 4,570,908,450 692,561,887
Long-term deposits 143,195,191 155,856,622 23,614,640
Land use rights 108,922,018 106,333,805 16,111,183
Property, equipment and
software 550,506,595 653,678,980 99,042,270
Investment 658,051,285 1,574,230,623 238,519,791
Goodwill 322,936,838 758,231,441 114,883,552
Intangible assets 66,851,954 296,964,092 44,994,559
Total assets 4,156,759,697 8,116,204,013 1,229,727,882
LIABILITIES
Current liabilities:
Accounts payable 291,045,743 595,283,281 90,194,437
Salary and welfare
payable 130,539,660 159,258,508 24,130,077
Taxes payable 142,256,695 161,772,241 24,510,946
Advances from customers 276,792,049 595,737,152 90,263,205
Accrued liability for
customer reward program 88,254,996 121,319,301 18,381,712
Other payables and
accruals 229,652,319 247,528,032 37,504,249
Total current liabilities 1,158,541,462 1,880,898,515 284,984,626
Deferred tax liabilities,
non-current 11,509,937 45,382,710 6,876,168
Total liabilities 1,170,051,399 1,926,281,225 291,860,794
SHAREHOLDERS' EQUITY
Share capital 2,801,334 2,926,132 443,353
Additional paid-in
capital 1,219,815,250 3,073,551,037 465,689,551
Statutory reserves 72,489,182 93,384,908 14,149,228
Accumulated other
comprehensive (loss) /
income (77,742,443) 198,972,084 30,147,285
Retained Earnings 1,707,684,596 2,734,858,610 414,372,517
Total Ctrip's
shareholders' equity 2,925,047,919 6,103,692,771 924,801,934
Noncontrolling interests 61,660,379 86,230,017 13,065,154
Total shareholders'
equity 2,986,708,298 6,189,922,788 937,867,088
Total liabilities and
shareholders' equity 4,156,759,697 8,116,204,013 1,229,727,882
Ctrip.com International, Ltd.
Consolidated Statement of Operations Information
Quarter Ended Quarter Ended
December 31, September 30,
2009 2010
RMB RMB
(unaudited) (unaudited)
Revenues:
Hotel reservation 274,473,674 349,655,584
Air-ticketing** 236,054,940 315,236,102
Packaged tour 48,458,453 140,858,679
Corporate travel** 26,798,448 33,938,560
Others 17,116,855 23,035,896
Total revenues 602,902,370 862,724,821
Less: business tax and related
surcharges (37,188,892) (50,520,118)
Net revenues 565,713,478 812,204,703
Cost of revenues (128,218,158) (176,199,743)
Gross profit 437,495,320 636,004,960
Operating expenses:
Product development * (88,084,277) (123,199,772)
Sales and marketing * (97,816,552) (125,160,008)
General and administrative * (62,342,757) (79,623,531)
Total operating expenses (248,243,586) (327,983,311)
Income from operations 189,251,734 308,021,649
Interest income 4,687,828 9,767,903
Other income 30,225,954 44,345,553
Income before income tax expense and
equity in income 224,165,516 362,135,105
Income tax expense (44,662,623) (62,186,716)
Equity in income of affiliates 14,714,676 23,192,105
Net income 194,217,569 323,140,494
Less: Net income attributable to
noncontrolling interests (4,011,756) (3,001,333)
Net income attributable to Ctrip's
shareholders 190,205,813 320,139,161
Earnings per ordinary share
- Basic 5.60 8.94
- Diluted 5.28 8.42
Earnings per ADS
- Basic 1.40 2.23
- Diluted 1.32 2.11
Weighted average ordinary shares
outstanding
- Basic 33,967,802 35,815,709
- Diluted 36,025,042 38,005,087
* Share-based compensation charges
included are as follows:
Product development 12,319,485 16,583,720
Sales and marketing 6,896,401 8,168,446
General and administrative 30,390,027 35,491,501
Quarter Ended Quarter Ended
December 31, December 31,
2010 2010
RMB USD
(unaudited) (unaudited)
Revenues:
Hotel reservation 360,325,329 54,594,747
Air-ticketing** 319,728,612 48,443,729
Packaged tour 100,625,182 15,246,240
Corporate travel** 35,786,154 5,422,145
Others 18,672,214 2,829,123
Total revenues 835,137,491 126,535,984
Less: business tax and related
surcharges (48,010,960) (7,274,388)
Net revenues 787,126,531 119,261,596
Cost of revenues (169,529,242) (25,686,249)
Gross profit 617,597,289 93,575,347
Operating expenses:
Product development * (120,637,434) (18,278,399)
Sales and marketing * (126,969,302) (19,237,773)
General and administrative * (77,706,831) (11,773,762)
Total operating expenses (325,313,567) (49,289,934)
Income from operations 292,283,722 44,285,413
Interest income 13,526,761 2,049,509
Other income 38,217,360 5,790,509
Income before income tax expense and
equity in income 344,027,843 52,125,431
Income tax expense (66,126,123) (10,019,110)
Equity in income of affiliates 24,521,408 3,715,365
Net income 302,423,128 45,821,686
Less: Net income attributable to
noncontrolling interests (149,393) (22,635)
Net income attributable to Ctrip's
shareholders 302,273,735 45,799,051
Earnings per ordinary share
- Basic 8.43 1.28
- Diluted 7.91 1.20
Earnings per ADS
- Basic 2.11 0.32
- Diluted 1.98 0.30
Weighted average ordinary shares
outstanding
- Basic 35,874,508 35,874,508
- Diluted 38,222,581 38,222,581
* Share-based compensation charges
included are as follows:
Product development 16,695,524 2,529,625
Sales and marketing 8,158,262 1,236,100
General and administrative 35,015,075 5,305,314
** Certain prior year amounts have been reclassified with no effect
on net income or retained earnings to conform to the 2010 financial
information presentation. Revenues are presented in accordance with
the definitions below:
Air-ticketing revenues primarily include commissions from air ticket
booking and related services, including sales of aviation casualty
insurance, and revenue generated from air-ticket delivery services.
Corporate travel management revenues primarily include commissions
from hotel reservation, air ticket booking and packaged-tour
services rendered to corporate clients.
Ctrip.com International, Ltd.
Consolidated Statement of Operations Information
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2009 2010 2010
RMB RMB USD
(unaudited) (unaudited) (unaudited)
Revenues:
Hotel reservation 940,682,312 1,278,043,673 193,642,981
Air-ticketing** 868,379,184 1,206,921,479 182,866,891
Packaged tour 175,867,386 380,307,487 57,622,347
Corporate travel** 83,136,519 129,658,427 19,645,216
Others 54,496,575 71,781,955 10,876,054
Total revenues 2,122,561,976 3,066,713,021 464,653,489
Less: business tax and
related surcharges (134,555,018) (185,479,524) (28,102,958)
Net revenues 1,988,006,958 2,881,233,497 436,550,531
Cost of revenues (450,602,773) (625,261,342) (94,736,567)
Gross profit 1,537,404,185 2,255,972,155 341,813,964
Operating expenses:
Product development * (308,451,348) (453,853,000) (68,765,606)
Sales and marketing * (345,289,299) (453,292,701) (68,680,712)
General and
administrative * (196,297,316) (294,701,167) (44,651,692)
Total operating
expenses (850,037,963) (1,201,846,868) (182,098,010)
Income from operations 687,366,222 1,054,125,287 159,715,954
Interest income 17,392,472 37,585,865 5,694,828
Other income 60,801,280 99,125,516 15,019,018
Income before income
tax expense and equity
in income 765,559,974 1,190,836,668 180,429,800
Income tax expense (131,658,085) (205,016,961) (31,063,176)
Equity in income of
affiliates 32,869,419 66,171,992 10,026,059
Net income 666,771,308 1,051,991,699 159,392,683
Less: Net income
attributable to
noncontrolling
interests (7,797,686) (3,921,959) (594,236)
Net income attributable
to Ctrip's
shareholders 658,973,622 1,048,069,740 158,798,447
Earnings per ordinary
share
- Basic 19.62 29.62 4.49
- Diluted 18.69 27.89 4.23
Earnings per ADS
- Basic 4.90 7.40 1.12
- Diluted 4.67 6.97 1.06
Weighted average
ordinary shares
outstanding
- Basic 33,592,334 35,385,451 35,385,451
- Diluted 35,250,335 37,577,056 37,577,056
* Share-based
compensation charges
included are as
follows:
Product development 33,862,928 64,254,080 9,735,467
Sales and marketing 18,864,102 33,202,984 5,030,755
General and
administrative 77,801,797 145,104,394 21,985,514
** Certain prior year amounts have been reclassified with no effect
on net income or retained earnings to conform to the 2010 financial
information presentation. Revenues are presented in accordance with
the definitions below:
Air-ticketing revenues primarily include commissions from air ticket
booking and related services, including sales of aviation casualty
insurance, and revenue generated from air-ticket delivery services.
Corporate travel management revenues primarily include commissions
from hotel reservation, air ticket booking and packaged-tour
services rendered to corporate clients.
Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)
Quarter Ended December 31, 2010
-------------------------------
% of Share-
Net based
GAAP Result Revenue Compensation
----------- ------- ------------
Product development (120,637,434) 15% 16,695,524
Sales and marketing (126,969,302) 16% 8,158,262
General and administrative (77,706,831) 10% 35,015,075
----------- ----------
Total operating expenses (325,313,567) 41% 59,868,861
Income from operations 292,283,722 37% 59,868,861
Net income attributable to
Ctrip's shareholders 302,273,735 38% 59,868,861
Diluted earnings per ordinary
share (RMB) 7.91 1.57
Diluted earnings per ADS (RMB) 1.98 0.39
Diluted earnings per ADS (USD) 0.30 0.06
% of % of
Net Non-GAAP Net
Revenue Result Revenue
------- -------- -------
Product development 2% (103,941,910) 13%
Sales and marketing 1% (118,811,040) 15%
General and administrative 4% (42,691,756) 5%
-----------
Total operating expenses 8% (265,444,706) 34%
Income from operations 8% 352,152,583 45%
Net income attributable to
Ctrip's shareholders 8% 362,142,596 46%
Diluted earnings per ordinary
share (RMB) 9.47
Diluted earnings per ADS (RMB) 2.37
Diluted earnings per ADS (USD) 0.36
Quarter Ended September 30, 2010
--------------------------------
% of Share-
Net based
GAAP Result Revenue Compensation
----------- ------- ------------
Product development (123,199,772) 15% 16,583,720
Sales and marketing (125,160,008) 15% 8,168,446
General and administrative (79,623,531) 10% 35,491,501
----------- ----------
Total operating expenses (327,983,311) 40% 60,243,667
Income from operations 308,021,649 38% 60,243,667
Net income attributable to
Ctrip's shareholders 320,139,161 39% 60,243,667
Diluted earnings per ordinary
share (RMB) 8.42 1.59
Diluted earnings per ADS (RMB) 2.11 0.40
Diluted earnings per ADS (USD) 0.31 0.06
% of % of
Net Non-GAAP Net
Revenue Result Revenue
------- -------- -------
Product development 2% (106,616,052) 13%
Sales and marketing 1% (116,991,562) 14%
General and administrative 4% (44,132,030) 5%
-----------
Total operating expenses 7% (267,739,644) 33%
Income from operations 7% 368,265,316 45%
Net income attributable to
Ctrip's shareholders 7% 380,382,828 47%
Diluted earnings per ordinary
share (RMB) 10.01
Diluted earnings per ADS (RMB) 2.50
Diluted earnings per ADS (USD) 0.37
Quarter Ended December 31, 2009
-------------------------------
% of Share-
Net based
GAAP Result Revenue Compensation
----------- ------- ------------
Product development (88,084,277) 16% 12,319,485
Sales and marketing (97,816,552) 17% 6,896,401
General and administrative (62,342,757) 11% 30,390,027
----------- ----------
Total operating expenses (248,243,586) 44% 49,605,913
Income from operations 189,251,734 33% 49,605,913
Net income attributable to
Ctrip's shareholders 190,205,813 34% 49,605,913
Diluted earnings per ordinary
share (RMB) 5.28 1.38
Diluted earnings per ADS (RMB) 1.32 0.34
Diluted earnings per ADS (USD) 0.19 0.05
% of % of
Net Non-GAAP Net
Revenue Result Revenue
------- -------- -------
Product development 2% (75,764,792) 13%
Sales and marketing 1% (90,920,151) 16%
General and administrative 5% (31,952,730) 6%
-----------
Total operating expenses 9% (198,637,673) 35%
Income from operations 9% 238,857,647 42%
Net income attributable to
Ctrip's shareholders 9% 239,811,726 42%
Diluted earnings per ordinary
share (RMB) 6.66
Diluted earnings per ADS (RMB) 1.66
Diluted earnings per ADS (USD) 0.24
Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)
Year Ended December 31, 2010
----------------------------
% of Share-
Net based
GAAP Result Revenue Compensation
----------- ------- ------------
Product development (453,853,000) 16% 64,254,080
Sales and marketing (453,292,701) 16% 33,202,984
General and administrative (294,701,167) 10% 145,104,394
------------ -----------
Total operating expenses (1,201,846,868) 42% 242,561,458
Income from operations 1,054,125,287 37% 242,561,458
Net income attributable to
Ctrip's shareholders 1,048,069,740 36% 242,561,458
Diluted earnings per ordinary
share (RMB) 27.89 6.46
Diluted earnings per ADS (RMB) 6.97 1.61
Diluted earnings per ADS (USD) 1.06 0.24
% of % of
Net Non-GAAP Net
Revenue Result Revenue
------- -------- -------
Product development 2% (389,598,920) 14%
Sales and marketing 1% (420,089,717) 15%
General and administrative 5% (149,596,773) 5%
------------
Total operating expenses 8% (959,285,410) 33%
Income from operations 8% 1,296,686,745 45%
Net income attributable to
Ctrip's shareholders 8% 1,290,631,198 45%
Diluted earnings per ordinary
share (RMB) 34.35
Diluted earnings per ADS (RMB) 8.59
Diluted earnings per ADS (USD) 1.30
Year Ended December 31, 2009
----------------------------
% of Share-
Net based
GAAP Result Revenue Compensation
----------- ------- ------------
Product development (308,451,348) 16% 33,862,928
Sales and marketing (345,289,299) 17% 18,864,102
General and administrative (196,297,316) 10% 77,801,797
------------ ----------
Total operating expenses (850,037,963) 43% 130,528,827
Income from operations 687,366,222 35% 130,528,827
Net income attributable to
Ctrip's shareholders 658,973,622 33% 130,528,827
Diluted earnings per ordinary
share (RMB) 18.69 3.70
Diluted earnings per ADS (RMB) 4.67 0.93
Diluted earnings per ADS (USD) 0.68 0.14
% of % of
Net Non-GAAP Net
Revenue Result Revenue
------- -------- -------
Product development 2% (274,588,420) 14%
Sales and marketing 1% (326,425,197) 16%
General and administrative 4% (118,495,519) 6%
------------
Total operating expenses 7% (719,509,136) 36%
Income from operations 7% 817,895,049 41%
Net income attributable to
Ctrip's shareholders 7% 789,502,449 40%
Diluted earnings per ordinary
share (RMB) 22.40
Diluted earnings per ADS (RMB) 5.60
Diluted earnings per ADS (USD) 0.82
Notes for all the financial schedules presented:
Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is
based on the certified exchange rate of USD1.00=RMB6.60 on December
30, 2010 published by the Federal Reserve Board.
Note 2: Effective on January 21, 2010, Company changed ratio of the
American Depositary Shares ("ADSs") to ordinary shares from two (2)
ADSs representing one (1) ordinary share to four (4) ADSs
representing one (1) ordinary share. The change is reflected
retroactively in the numbers for all the periods presented above.
Source: Ctrip.com International, Ltd.
