Ctrip Reports Unaudited Fourth Quarter and Full Year of 2017 Financial Results
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PR Newswire 14-Mar-2018 6:00 PM
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SHANGHAI, March 14, 2018 /PRNewswire/ -- Ctrip.com International, Ltd. (Nasdaq: CTRP), a leading travel service provider of accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China ("Ctrip" or the "Company"), today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2017.
Key Highlights for the Fourth Quarter and Full Year of 2017
Ctrip reported strong financial results in the fourth quarter of 2017 and achieved robust growth for the full year of 2017.
- Operating margin for the full year of 2017 was 11%, compared to -8% in 2016. Excluding share-based compensation charges, non-GAAP operating margin for the full year of 2017 was 18%, compared to 10% in 2016.
Ctrip's international businesses sustained robust growth momentum.
- Trip.com, achieved triple-digit growth in air ticketing volume for five consecutive quarters, benefiting from Skyscanner's direct booking initiatives.
The Company continued to make progress in penetrating lower-tier cities.
- The Company opened over 1,000 Ctrip and Qunar branded offline stores in 2017. Total gross merchandise volume, or GMV, of these stores, including 5,000 Traveling Bestone stores, grew over 30% in 2017.
"We had strong results in the fourth quarter, even as we transitioned through short-term challenges in certain areas of our business," said Jane Sun, Chief Executive Officer. "We continue to execute on our growth strategy and are encouraged with our progress, especially in international expansion and penetration of lower-tier cities. As users increasingly appreciate the convenience of Ctrip's unique one-stop travel platform, we are very excited about the opportunities ahead of us."
"I'm proud of the progress our team has made, and the many ways that Ctrip is striving to make travel more convenient and enjoyable," said James Liang, Executive Chairman. "We will always endeavor to maximize Ctrip's social impact while increasing the company's commercial value. Guided by the fundamental principles of consistency, transparency, and equality, we will continuously improve our products and services."
Fourth Quarter and Full Year of 2017 Financial Results and Business Updates
For the fourth quarter of 2017, Ctrip reported net revenue of RMB6.4 billion (US$980 million), representing a 26% increase from the same period in 2016. Net revenue for the fourth quarter of 2017 decreased 19% from the previous quarter, primarily due to seasonality and product change in domestic air ticketing.
For the full year ended December 31, 2017, net revenue was RMB26.8 billion (US$4.1 billion), representing a 39% increase from 2016.
Accommodation reservation revenue for the fourth quarter of 2017 was RMB2.3 billion (US$356 million), representing a 25% increase from the same period in 2016, primarily driven by an increase in accommodation reservation volume. Accommodation reservation revenue for the fourth quarter of 2017 decreased 18% from the previous quarter, primarily due to seasonality.
For the full year ended December 31, 2017, accommodation reservation revenue was RMB9.5 billion (US$1.5 billion), representing a 30% increase from 2016. The accommodation reservation revenue accounted for 35% of the total revenue in 2017 and 37% of the total revenue in 2016.
Transportation ticketing revenue for the fourth quarter of 2017 was RMB2.9 billion (US$450 million), representing a 20% increase from the same period in 2016, primarily driven by an increase in ticketing volume and the consolidation of Skyscanner's financial results since December 31, 2016. Transportation ticketing revenue decrease 15% from the previous quarter, primarily due to product change in domestic air ticketing.
For the full year ended December 31, 2017, transportation ticketing revenue was RMB12.2 billion (US$1.9 billion), representing a 38% increase from 2016. The transportation ticketing revenue accounted for 45% of the total revenue in 2017 and remained consistent with 2016.
Packaged tour revenue for the fourth quarter of 2017 was RMB623 million (US$96 million), representing a 34% increase from the same period in 2016, primarily driven by an increase in volume growth of organized tours and self-guided tours. Packaged-tour revenue for the fourth quarter of 2017 decreased 40% from the previous quarter, primarily due to seasonality.
For the full year ended December 31, 2017, packaged-tour revenue was RMB3.0 billion (US$457 million), representing a 29% increase from 2016. The packaged-tour revenue accounted for 11% of the total revenue in 2017 and 12% of the total revenue in 2016.
Corporate travel revenue for the fourth quarter of 2017 was RMB207 million (US$32 million), representing a 15% increase from the same period in 2016, primarily driven by expansion in travel product coverage. Corporate travel revenue for the fourth quarter of 2017 increased 2% from the previous quarter.
For the full year ended December 31, 2017, corporate travel revenue was RMB753 million (US$116 million), representing a 24% increase from 2016. The corporate travel revenue accounted for 3% of the total revenue in 2017 and remained consistent with 2016.
Gross margin was 83% for the fourth quarter of 2017, compared to 78% in the same period in 2016, and remained consistent with the previous quarter.
For the full year ended December 31, 2017, gross margin was 83%, compared to 75% in 2016.
Product development expenses for the fourth quarter of 2017 increased by 20% to RMB2.1 billion (US$319 million) from the same period in 2016, primarily due to the increase in product development personnel related expenses. Product development expenses for the fourth quarter of 2017 decreased 5% from the previous quarter, primarily due to the decrease in product development personnel related expenses. Product development expenses for the fourth quarter of 2017 accounted for 33% of the net revenue. Excluding share-based compensation charges, Non-GAAP product development expenses for the fourth quarter of 2017 accounted for 29% of the net revenue, which increased from 27% for the same period of 2016 and increased from 25% for the previous quarter.
For the full year ended December 31, 2017, product development expenses increased by 7% to RMB8.3 billion (US$1.3 billion) from 2016 and accounted for 31% of the net revenue. Excluding share-based compensation charges, Non-GAAP product development expenses accounted for 27% of the net revenue, compared to 29% in 2016.
Sales and marketing expenses for the fourth quarter of 2017 increased by 38% to RMB2.0 billion (US$313 million) from the same period in 2016, primarily due to an increase in sales and marketing related activities. Sales and marketing expenses for the fourth quarter of 2017 decreased 14% from the previous quarter, primarily due to the decrease in sales and marketing related activities. Sales and marketing expenses for the fourth quarter of 2017 accounted for 32% of the net revenue. Excluding share-based compensation charges, Non-GAAP sales and marketing expenses for the fourth quarter of 2017 accounted for 31% of the net revenue, which increased from 28% in the same period in 2016 and increased from 30% in the previous quarter.
For the full year ended December 31, 2017, sales and marketing expenses increased by 42% to RMB8.3 billion (US$1.3 billion) from 2016 and accounted for 31% of the net revenue. Excluding share-based compensation charges, Non-GAAP sales and marketing expenses accounted for 30% of the net revenue, which increased from 28% in 2016.
General and administrative expenses for the fourth quarter of 2017 increased by 30% to RMB701 million (US$108 million) from the same period in 2016, primarily due to an increase in consulting expenses and the provision of trade and other receivables. General and administrative expenses for the fourth quarter of 2017 increased 4% from the previous quarter, primarily due to an increase in the provision of trade and other receivables. General and administrative expenses for the fourth quarter of 2017 accounted for 11% of the net revenue. Excluding share-based compensation charges, Non-GAAP general and administrative expenses accounted for 9% of the net revenue, which increased from 7% for the same period in 2016 and the previous quarter.
For the full year ended December 31, 2017, general and administrative expenses increased by 4% to RMB2.6 billion (US$403 million) from 2016 and accounted for 10% of the net revenue. Excluding share-based compensation charges, Non-GAAP general and administrative expenses accounted for 7% of the net revenue, which remained consistent with 2016.
Income from operations for the fourth quarter of 2017 was RMB508 million (US$78 million), compared to RMB207 million in the same period in 2016 and RMB1.4 billion in the previous quarter. Excluding share-based compensation charges, Non-GAAP income from operations was RMB908 million (US$140 million), compared to RMB797 million in the same period in 2016 and RMB1.7 billion in the previous quarter.
For the full year ended December 31, 2017, income from operations was RMB2.9 billion (US$450 million), compared to loss from operations of RMB1.6 billion in 2016. Excluding share-based compensation charges, Non-GAAP income from operations was RMB4.8 billion (US$732 million), compared to RMB2.0 billion in 2016.
Operating margin was 8% for the fourth quarter of 2017, compared to 4% in the same period in 2016, and 17% in the previous quarter. Excluding share-based compensation charges, Non-GAAP operating margin was 14%, compared to 16% in the same period in 2016 and 22% in the previous quarter.
For the full year ended December 31, 2017, operating margin was 11%, compared to -8% in 2016. Excluding share-based compensation charges, Non-GAAP operating margin was 18%, compared to 10% in 2016.
Income tax expense for the fourth quarter of 2017 was RMB289 million (US$44 million), compared to RMB110 million in the same period of 2016 and RMB313 million in the previous quarter. The change in the Group's effective tax rate reflects primarily profitability changes in our subsidiaries with different tax rates and certain non-tax deductible losses including the share based compensation.
For the full year ended December 31, 2017, income tax expense was RMB1.3 billion (US$197 million), compared to RMB478 million in 2016.
Net income attributable to Ctrip's shareholders for the fourth quarter of 2017 was RMB504 million (US$77 million), compared to RMB645 million in the same period in 2016 and RMB1.2 billion in the previous quarter. Excluding share-based compensation charges, Non-GAAP net income attributable to Ctrip's shareholders was RMB904 million (US$139 million), compared to RMB1.2 billion in the same period in 2016 and RMB1.6 billion in the previous quarter.
For the full year ended December 31, 2017, net income attributable to Ctrip's shareholders was RMB2.1 billion (US$329 million), compared to net loss of RMB1.4 billion in 2016. Excluding share-based compensation charges, Non-GAAP net income attributable to Ctrip's shareholders was RMB4.0 billion (US$611 million), compared to RMB2.1 billion in 2016.
Diluted earnings per ADS were RMB0.88 (US$0.14) for the fourth quarter of 2017. Excluding share-based compensation charges, Non-GAAP diluted earnings per ADS were RMB1.56 (US$0.24) for the fourth quarter of 2017.
For the full year ended December 31, 2017, diluted earnings per ADS were RMB3.82 (US$0.59). Excluding share-based compensation charges, Non-GAAP diluted earnings per ADS were RMB6.90 (US$1.06).
As of December 31, 2017, the balance of cash and cash equivalents, restricted cash and short-term investment was RMB48.1 billion (US$7.4 billion).
New Revenue Recognition Accounting Standard
Effective January 1, 2018, the Company adopted a new revenue recognition standard, Accounting Standards Update 2014-09 (the "New Revenue Accounting Standard"). The Company currently estimates that the impact of this new standard on its revenue reported in comparative periods of 2018 is not material if the new standard is adopted retrospectively.
Business Outlook
For the first quarter of 2018, the Company expects the net revenue growth to continue at a year-on-year rate of approximately 9~11%, which is estimated based on Crip's new revenue recognition standard while taking into account the revenue reported for the same period in 2017. 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 8:00PMU.S. Eastern Time on March 14, 2018 (or 8:00AM on Mar 15, 2018 in the Shanghai/Hong Kong Time) following the announcement.
The conference call will be available on Webcast live and replay at http://ir.ctrip.com. The call will be archive for twelve months at this website.
Listeners may access the call by dialing the following numbers:
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US: +1-855-8219-305 or +1-240-254-3156
Hong Kong: +852- 3077-3569
Mainland China: 800-820-8527 or 400-612-6501
International: +65-6653-5870
Passcode: 07034263#
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For pre-registration, please click http://aerp.arkadinasia.com/e-142/nasdaq-ctrip-com-international.
A telephone replay of the call will be available after the conclusion of the conference call until March 21, 2018. The dial-in details for the replay:
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International dial-in number: +65-6653-5846
Passcode: 515076012#
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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. 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, severe or prolonged downturn in the global or Chinese economy, 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 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 the relevant jurisdictions where Ctrip operates, failure to successfully develop Ctrip's existing or future business lines, damage to or failure of Ctrip's infrastructure and technology, loss of services of Ctrip's key executives, adverse changes in economic and political policies of the PRC government, inflation in China, 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. 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 condensed 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 attributable to Ctrip's shareholders, and diluted earnings per ordinary share and per ADS, each of which (except for net commission earned) is adjusted from the most comparable GAAP result to exclude the share-based compensation charges recorded under ASC 718, "Compensation-Stock Compensation" and its share-based compensation charges are not tax deductible. 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 Ctrip's 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 accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China. It is the largest online consolidator of accommodations and transportation tickets in China in terms of transaction volume. Ctrip enables business and leisure travelers to make informed and cost-effective bookings by aggregating comprehensive travel related information and offering its services through an advanced transaction and service platform consisting of its mobile apps, Internet websites and centralized, toll-free, 24-hour customer service center. Ctrip also helps customers book vacation packages and guided tours. In addition, through its corporate travel management services, Ctrip helps 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 196455Email: iremail@ctrip.com


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Ctrip.com International, Ltd.
Unaudited Condensed Consolidated Balance Sheets


December 31,2016 December 31,2017 December 31,2017
RMB RMB USD


(unaudited) (unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents 18,434,681,251 18,242,991,687 2,803,896,483
Restricted cash 1,744,490,307 1,748,796,431 268,785,090
Short-term investment 14,112,862,288 28,129,938,110 4,323,492,324
Accounts receivable, net 4,624,818,322 4,559,052,701 700,713,570
Prepayments and other current assets 6,994,589,672 6,546,041,220 1,006,108,114

Total current assets 45,911,441,840 59,226,820,149 9,102,995,581

Long-term deposits and prepayments 1,147,279,197 839,920,256 129,093,380
Land use rights 99,544,772 96,761,364 14,871,949
Property, equipment and software 5,591,960,081 5,615,500,429 863,086,613
Investment 20,532,822,365 25,573,785,268 3,930,618,826
Goodwill 56,015,185,590 56,246,051,292 8,644,859,796
Intangible assets 13,924,769,931 13,750,315,921 2,113,384,861
Other long-term receivable 815,586,298 237,353,359 36,480,543
Deferred tax assets, non-current 375,311,594 461,969,275 71,003,377

Total assets 144,413,901,668 162,048,477,313 24,906,394,926

LIABILITIES
Current liabilities:
Short-term debt 6,887,309,589 16,316,282,473 2,507,766,699
Accounts payable 7,278,791,082 7,459,203,252 1,146,458,548
Salary and welfare payable 2,508,430,757 3,464,692,073 532,513,421
Taxes payable 1,084,241,429 927,463,089 142,548,467
Advances from customers 8,190,840,057 7,867,532,529 1,209,217,609
Accrued liability for customer reward program 658,170,680 609,621,643 93,697,131
Other payables and accruals 3,687,242,592 5,515,137,342 847,661,087

Total current liabilities 30,295,026,186 42,159,932,401 6,479,862,962

Deferred tax liabilities, non-current 3,607,882,808 3,847,440,251 591,340,739
Long-term debt 34,650,673,553 29,220,254,767 4,491,070,926
Other long-term liabilities 339,566,619 347,820,491 53,459,031

Total liabilities 68,893,149,166 75,575,447,910 11,615,733,658

SHAREHOLDERS' EQUITY
Share capital 4,960,354 5,173,301 795,122
Additional paid-in capital 65,819,998,701 71,341,098,032 10,964,926,000
Statutory reserves 237,495,820 383,623,583 58,961,865
Accumulated other comprehensive income 1,010,373,732 6,379,296,866 980,479,976
Retained Earnings 6,699,580,613 8,695,442,393 1,336,465,025
Treasury stock (2,235,574,510) (2,110,820,623) (324,427,189)

Total Ctrip's shareholders' equity 71,536,834,710 84,693,813,552 13,017,200,799

Noncontrolling interests 3,983,917,792 1,779,215,851 273,460,469

Total shareholders' equity 75,520,752,502 86,473,029,403 13,290,661,268

Total liabilities and shareholders' equity 144,413,901,668 162,048,477,313 24,906,394,926
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Ctrip.com International, Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income

Quarter Ended Quarter Ended Quarter Ended Quarter Ended
December 31,2016 September 30,2017 December 31,2017 December 31,2017
RMB RMB RMB USD


(unaudited) (unaudited) (unaudited) (unaudited)
Revenue:
Accommodation reservation 1,847,501,104 2,820,384,460 2,315,910,747 355,948,964
Transportation ticketing 2,446,350,221 3,428,194,609 2,925,129,686 449,584,201
Packaged-tour 466,510,925 1,033,088,540 623,164,978 95,778,703
Corporate travel 179,055,911 202,879,041 206,505,261 31,739,277
Others 239,340,250 472,404,223 354,490,157 54,484,140

Total revenue 5,178,758,411 7,956,950,873 6,425,200,829 987,535,285

Less: Sales tax and surcharges (111,476,576) (57,274,816) (46,076,958) (7,081,899)

Net revenue 5,067,281,835 7,899,676,057 6,379,123,871 980,453,386

Cost of revenue (1,126,360,012) (1,303,483,658) (1,061,324,509) (163,122,590)

Gross profit 3,940,921,823 6,596,192,399 5,317,799,362 817,330,796

Operating expenses:
Product development * (1,722,336,331) (2,185,439,369) (2,074,369,881) (318,824,813)
Sales and marketing * (1,470,860,760) (2,377,850,924) (2,034,233,300) (312,655,933)
General and administrative * (540,338,329) (673,903,837) (701,459,946) (107,812,420)

Total operating expenses (3,733,535,420) (5,237,194,130) (4,810,063,127) (739,293,166)

Income from operations 207,386,403 1,358,998,269 507,736,235 78,037,630

Interest income 126,421,150 271,592,321 336,310,776 51,690,020
Interest expense (219,680,448) (318,779,226) (323,800,026) (49,767,153)
Other (expense)/income (286,715,547) 233,444,936 336,851,596 51,773,142

(Loss)/income before income tax expense andequity in income (172,588,442) 1,545,256,300 857,098,581 131,733,639

Income tax expense (110,246,775) (313,405,180) (289,470,044) (44,490,731)
Equity in income/(loss) of affiliates 873,284,942 32,357,293 (98,044,574) (15,069,175)

Net income 590,449,725 1,264,208,413 469,583,963 72,173,733

Net loss/(income) attributable to non-controlling interests 54,866,263 (35,090,626) 33,989,737 5,224,127

Net income attributable to Ctrip's shareholders 645,315,988 1,229,117,787 503,573,700 77,397,860

Comprehensive income attributable to Ctrip'sshareholders 1,276,906,894 2,836,812,328 2,528,341,451 388,598,966

Earnings per ordinary share
- Basic 10.21 18.35 7.46 1.15
- Diluted 9.46 16.76 7.07 1.09

Earnings per ADS
- Basic 1.28 2.29 0.93 0.14
- Diluted 1.18 2.10 0.88 0.14

Weighted average ordinary shares outstanding
- Basic 63,194,669 66,988,804 67,498,755 67,498,755
- Diluted 69,583,733 78,630,110 73,845,325 73,845,325

* Share-based compensation charges included are as follows:
Product development 338,257,956 210,505,836 213,727,387 32,849,298
Sales and marketing 68,550,655 37,738,032 40,273,787 6,189,968
General and administrative 182,401,276 135,789,753 146,177,357 22,467,048
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Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)

Quarter Ended December 31,2017
GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues

Product development (2,074,369,881) 33% 213,727,387 3% (1,860,642,494) 29%
Sales and marketing (2,034,233,300) 32% 40,273,787 1% (1,993,959,513) 31%
General and administrative (701,459,946) 11% 146,177,357 2% (555,282,589) 9%
Total operating expenses (4,810,063,127) 75% 400,178,531 6% (4,409,884,596) 69%

Income from operations 507,736,235 8% 400,178,531 6% 907,914,766 14%

Net income attributable to Ctrip's shareholders 503,573,700 8% 400,178,531 6% 903,752,231 14%

Diluted earnings per ordinary share (RMB) 7.07 5.38 12.45

Diluted earnings per ADS (RMB) 0.88 0.68 1.56

Diluted earnings per ADS (USD) 0.14 0.10 0.24


Quarter Ended September 30,2017
GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues

Product development (2,185,439,369) 28% 210,505,836 3% (1,974,933,533) 25%
Sales and marketing (2,377,850,924) 30% 37,738,032 0% (2,340,112,892) 30%
General and administrative (673,903,837) 9% 135,789,753 2% (538,114,084) 7%
Total operating expenses (5,237,194,130) 66% 384,033,621 5% (4,853,160,509) 61%

Income from operations 1,358,998,269 17% 384,033,621 5% 1,743,031,890 22%

Net income attributable to Ctrip's shareholders 1,229,117,787 16% 384,033,621 5% 1,613,151,408 20%

Diluted earnings per ordinary share (RMB) 16.76 4.82 21.58

Diluted earnings per ADS (RMB) 2.10 0.60 2.70

Diluted earnings per ADS (USD) 0.32 0.09 0.41


Quarter Ended December 31,2016
GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues

Product development (1,722,336,331) 34% 338,257,956 7% (1,384,078,375) 27%
Sales and marketing (1,470,860,760) 29% 68,550,655 1% (1,402,310,105) 28%
General and administrative (540,338,329) 11% 182,401,276 4% (357,937,053) 7%
Total operating expenses (3,733,535,420) 74% 589,209,887 12% (3,144,325,533) 62%

Income from operations 207,386,403 4% 589,209,887 12% 796,596,290 16%

Net income attributable to Ctrip's shareholders 645,315,988 13% 589,209,887 12% 1,234,525,875 24%

Diluted earnings per ordinary share (RMB) 9.46 8.47 17.93

Diluted earnings per ADS (RMB) 1.18 1.06 2.24

Diluted earnings per ADS (USD) 0.17 0.15 0.32


Notes for all the condensed consolidated 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=RMB6.5063 on December 29, 2017 published by the Federal Reserve Board.
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Ctrip.com International, Ltd.
Condensed Consolidated Statements of Comprehensive Income

Year Ended Year Ended Year Ended
December 31,2016 December 31,2017 December 31,2017
RMB RMB USD


(unaudited) (unaudited) (unaudited)
Revenue:
Accommodation reservation 7,308,958,863 9,517,374,339 1,462,793,652
Transportation ticketing 8,826,516,571 12,221,029,997 1,878,337,918
Packaged-tour 2,310,198,894 2,970,383,429 456,539,574
Corporate travel 608,122,125 753,218,904 115,767,626
Others 734,290,185 1,514,978,795 232,847,977

Total revenue 19,788,086,638 26,976,985,464 4,146,286,747

Less: Sales tax and surcharges (559,646,824) (197,354,446) (30,332,823)

Net revenue 19,228,439,814 26,779,631,018 4,115,953,924

Cost of revenue (4,729,750,192) (4,678,209,103) (719,027,574)

Gross profit 14,498,689,622 22,101,421,915 3,396,926,350

Operating expenses:
Product development * (7,687,421,506) (8,259,232,508) (1,269,420,793)
Sales and marketing * (5,860,927,432) (8,294,186,482) (1,274,793,121)
General and administrative * (2,518,819,170) (2,621,832,381) (402,968,259)

Total operating expenses (16,067,168,108) (19,175,251,371) (2,947,182,173)

(Loss)/income from operations (1,568,478,486) 2,926,170,544 449,744,177

Interest income 567,144,610 987,610,015 151,792,880
Interest expense (731,922,838) (1,286,284,010) (197,698,232)
Other (expense)/income (26,848,287) 878,998,137 135,099,540

(Loss)/income before income tax expense and equity in income (1,760,105,001) 3,506,494,686 538,938,365

Income tax expense (478,009,033) (1,280,523,340) (196,812,834)
Equity in income/(loss) of affiliates 601,883,179 (65,116,066) (10,008,156)

Net (loss)/income (1,636,230,855) 2,160,855,280 332,117,375

Net loss/(income) attributable to non-controlling interests 205,527,660 (18,843,743) (2,896,230)

Net (loss)/income attributable to Ctrip's shareholders (1,430,703,195) 2,142,011,537 329,221,145

Comprehensive (loss)/income attributable to Ctrip's shareholders (980,406,744) 7,510,934,671 1,154,409,522

(Loss)/earnings per ordinary share
- Basic (24.18) 32.31 4.97
- Diluted (24.18) 30.57 4.70

(Loss)/earnings per ADS
- Basic (3.02) 4.04 0.62
- Diluted (3.02) 3.82 0.59

Weighted average ordinary shares outstanding
- Basic 59,166,582 66,300,808 66,300,808
- Diluted 59,166,582 71,775,893 71,775,893

* Share-based compensation charges included are as follows:
Product development 2,079,514,506 1,012,746,515 155,656,289
Sales and marketing 392,641,663 185,785,599 28,554,724
General and administrative 1,087,562,537 635,279,991 97,640,747
[End Table]



[Start Table]
Ctrip.com International, Ltd.
Reconciliation of GAAP and Non-GAAP Results
(In RMB, except % and per share information)

Year Ended December 31,2017
GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues

Product development (8,259,232,508) 31% 1,012,746,515 4% (7,246,485,993) 27%
Sales and marketing (8,294,186,482) 31% 185,785,599 1% (8,108,400,883) 30%
General and administrative (2,621,832,381) 10% 635,279,991 2% (1,986,552,390) 7%
Total operating expenses (19,175,251,371) 72% 1,833,812,105 7% (17,341,439,266) 65%

Income from operations 2,926,170,544 11% 1,833,812,105 7% 4,759,982,649 18%

Net income attributable to Ctrip's shareholders 2,142,011,537 8% 1,833,812,105 7% 3,975,823,642 15%

Diluted earnings per ordinary share (RMB) 30.57 24.63 55.20

Diluted earnings per ADS (RMB) 3.82 3.08 6.90

Diluted earnings per ADS (USD) 0.59 0.47 1.06


Year Ended December 31,2016
GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues

Product development (7,687,421,506) 40% 2,079,514,506 11% (5,607,907,000) 29%
Sales and marketing (5,860,927,432) 30% 392,641,663 2% (5,468,285,769) 28%
General and administrative (2,518,819,170) 13% 1,087,562,537 6% (1,431,256,633) 7%
Total operating expenses (16,067,168,108) 84% 3,559,718,706 19% (12,507,449,402) 65%

(Loss)/income from operations (1,568,478,486) -8% 3,559,718,706 19% 1,991,240,220 10%

Net (loss)/ income attributable to Ctrip's shareholders (1,430,703,195) -7% 3,559,718,706 19% 2,129,015,511 11%

Diluted (loss)/earnings per ordinary share (RMB) (24.18) 56.58 32.40

Diluted (loss)/earnings per ADS (RMB) (3.02) 7.07 4.05

Diluted (loss)/earnings per ADS (USD) (0.44) 1.02 0.58


Notes for all the condensed consolidated 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=RMB6.5063 on December 29, 2017 published by the Federal Reserve Board.
Note 2: Diluted net income/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effects of share-based awards and convertible senior notes. All dilutive potential ordinary shares had anti-dilutive impact and were excluded in computation of diluted EPS in the period when loss was reported.
[End Table]

View original content:http://www.prnewswire.com/news-releases/ctrip-reports-unaudited-fourth-quarter-and-full-year-of-2017-financial-results-300613924.html
SOURCE Ctrip.com International, Ltd.

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