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01/11 04:30
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The company reported a 9% revenue increase, driven by tour growth, but faced a 10% gross profit decline and rising expenses, pressuring margins. Positive Q&A insights highlighted strong travel demand and optimistic Q4 guidance, potentially offsetting concerns. Overall, mixed financials and guidance suggest a neutral sentiment.
Net Revenues CNY 202.1 million, representing a year-over-year increase of 9%. The increase was driven by growth in organized tours and self-drive tours.
Revenues from Packaged Tours CNY 179 million, up 12% year-over-year, accounting for 89% of total net revenues. The growth was primarily due to the increase in organized tours and self-drive tours.
Other Revenues CNY 23 million, down 14% year-over-year, accounting for 11% of total net revenues. The decline was primarily due to a decrease in commission fees received from other travel-related products.
Gross Profit CNY 109.6 million, down 10% year-over-year. No specific reasons for the decline were mentioned.
Operating Expenses CNY 95.8 million, up 3% year-over-year. The increase was primarily due to higher personnel-related expenses.
Research and Product Development Expenses CNY 15.7 million, up 15% year-over-year. The increase was primarily due to higher personnel-related expenses in research and product development.
Sales and Marketing Expenses CNY 61.5 million, up 2% year-over-year. The increase was primarily due to higher personnel-related expenses in sales and marketing.
General and Administrative Expenses CNY 18.5 million, almost in line with the previous year, showing no significant change.
Net Income Attributable to Ordinary Shareholders CNY 19.8 million. No year-over-year comparison or reasons for the figure were provided.
Non-GAAP Net Income Attributable to Ordinary Shareholders CNY 21.8 million, excluding share-based compensation expenses and amortization of acquired intangible assets. No year-over-year comparison or reasons for the figure were provided.
Cash and Cash Equivalents, Restricted Cash, Short-term Investments, and Long-term Deposits CNY 1.1 billion as of September 30, 2025. No year-over-year comparison or reasons for the figure were provided.
Capital Expenditures CNY 2.1 million. No year-over-year comparison or reasons for the figure were provided.
New Tour Series: Expanded to include all major regions across Asia, Europe, Africa, the Americas, and Oceania. Launched first organized tour to South America.
Long-haul Island Offerings: Expanded destinations to Seychelles and Mauritius, with transaction volume growing several times year-over-year.
Self-Drive Tour Products: Expanded to cover all provinces in Chinese Mainland, with transaction volume increasing 5x year-over-year during National Day holiday.
Outbound Travel Market: Expanded destination coverage and offered more price-competitive options, leading to a 100% year-over-year increase in transaction volume for new select outbound travel products.
Corporate Customer Segment: Transaction volume recorded double-digit year-over-year growth by offering tailored vacation products and services.
Live Streaming Channels: Payments and verification volume recorded double-digit year-over-year growth, with expanded outdoor live streaming activities and partnerships with top-tier live streamers.
Offline Stores: Expanded footprint in major cities and key transportation hubs, with transaction volume increasing nearly 20% year-over-year.
Technology Integration: Embedded technology tools across operations, including dynamic packaging and AI applications, to improve efficiency and profitability.
Seasonal Market Opportunities: Focused on off-peak travel, ice and snow trips, and niche segments to attract customers during low seasons.
Corporate Partnerships: Collaborated with corporate clients to offer customized trips and extended services for employees' personal and family vacations.
Gross Profit Decline: Gross profit for the third quarter of 2025 decreased by 10% year-over-year, which could indicate challenges in maintaining profitability despite revenue growth.
Operating Expense Increase: Operating expenses increased by 3% year-over-year, driven by higher research and product development as well as sales and marketing expenses, potentially pressuring margins.
Decline in Other Revenues: Other revenues decreased by 14% year-over-year, primarily due to a drop in commission fees from other travel-related products, which could signal challenges in diversifying revenue streams.
Seasonal Low Demand: The company acknowledged that the travel industry typically enters a low season in the fourth quarter, which could impact revenue and profitability.
Dependence on External Partnerships: The company relies on collaborations with external live streamers and mid- to long-tail creators for sales, which could pose risks if these partnerships are disrupted or fail to deliver expected results.
Increased Personnel Costs: Research and product development expenses increased by 15% year-over-year, and sales and marketing expenses rose by 2%, reflecting higher personnel-related costs that could strain financials.
Supply Chain and Product Expansion Risks: Efforts to expand supply chain and product offerings, including niche destinations and long-haul island products, may face execution risks or fail to meet customer expectations.
Fourth Quarter 2025 Revenue Expectations: The company expects to generate CNY 111 million to CNY 116.1 million of net revenues, representing an 8% to 13% increase year-over-year.
Market Demand and Seasonal Trends: Despite the typical low season in the fourth quarter, the company anticipates active demand for off-peak travel, ice and snow trips, and other niche segments. The company plans to strengthen product development and adjust marketing efforts to cater to seasonal needs.
Future Product Portfolio and Customer Acquisition: The company aims to attract both new and existing customers with a richer, more distinctive, and value-for-money product portfolio, while preparing for the peak travel period during the Chinese New Year holiday.
Technology and Operational Efficiency: The company will continue to explore advanced technologies such as dynamic packaging and AI applications to enhance operational efficiency and profitability.
The selected topic was not discussed during the call.
The company reported a 9% revenue increase, driven by tour growth, but faced a 10% gross profit decline and rising expenses, pressuring margins. Positive Q&A insights highlighted strong travel demand and optimistic Q4 guidance, potentially offsetting concerns. Overall, mixed financials and guidance suggest a neutral sentiment.
The earnings call indicates strong revenue growth from packaged tours and outbound tours, driven by diverse product offerings and successful integration of AI technologies. Despite an increase in operating expenses, net income remains positive, and cash flow is strong. The company is expanding its offline stores and live streaming channels, suggesting a robust market strategy. While there are risks related to emerging sales channels and supply chain, the optimistic guidance and positive Q&A session responses support a positive sentiment. The absence of market cap data suggests a moderate reaction, leading to a 2%-8% stock price increase.
The earnings call presents mixed signals: strong revenue growth from packaged tours and AI integration are positive, but the net loss and increased expenses are concerning. The Q&A reveals optimism for future profitability but lacks specific guidance. The absence of a share repurchase program and a decline in gross profit further neutralize the outlook. Given these factors, the stock price is likely to remain stable, resulting in a neutral sentiment.
The earnings call reflects mixed signals: a slight revenue increase and special dividend are positive, but declining gross profit and unclear future guidance are concerning. The Q&A highlighted management's vague responses about 2025 projections, adding uncertainty. While share repurchases and dividends positively impact shareholder sentiment, rising competition and lack of clear guidance on profitability limit optimism. Therefore, the overall sentiment remains neutral, with no strong catalysts for significant stock price movement.
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