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    HomePR NewswireTrip.com Group Limited Reports Unaudited Second Quarter and First Half of 2021...

    Trip.com Group Limited Reports Unaudited Second Quarter and First Half of 2021 Financial Results

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    SHANGHAI, Sept. 24, 2021 /PRNewswire/ — Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) (“Trip.com Group” or the “Company”), a leading one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours and corporate travel management, today announced its unaudited financial results for the second quarter and first half of 2021.

    Key Highlights for the Second Quarter of 2021

    • Our business has showed resilient recovery in the China domestic market.
      —    Total net revenue increased by 86% year over year and 43% quarter over quarter, driven by the strong recovery momentum of the China domestic market.
      —    Both our domestic hotel and air-ticket GMV increased by about 150% year over year. Compared with the same pre-COVID period in 2019, both domestic hotel and air ticketing reservations achieved double-digit growth in the second quarter.
      —    Staycation travel continues to serve as a major driver of domestic recovery with local hotel reservations growing nearly 80% versus pre-COVID period in 2019.
      —    Revenues from corporate travel management grew 141% year over year and 26% compared with the pre-COVID period in 2019.

    “Overall, the Chinese domestic travel market has been encouraging, and we see great potential in international markets,” said James Liang, Executive Chairman. “Going forward, we will continue to be adaptive and responsive to the changing market conditions and the evolving demands of post-pandemic travelers.”

    “Throughout the second quarter, we continued to focus on the domestic market in terms of supply chain, content capabilities, service quality, and technology advancement, to lay a solid foundation for new growth drivers beyond the pandemic,” said Jane Sun, Chief Executive Officer. “We also endeavor to maximize our social impacts while increasing the Company’s total value. We will keep improving as we strive towards our ideals.”

    Second Quarter of 2021 Financial Results and Business Updates

    The Company’s overall results for the second quarter of 2021 were negatively impacted by the COVID-19 pandemic, as well as subsequent outbreaks driven by new variants of COVID-19. However, benefiting from the general containment of the COVID-19 pandemic in China, the Company’s domestic business has continued to show a strong recovery, which has contributed to substantially all of its total revenue.

    For the second quarter of 2021, Trip.com Group reported net revenue of RMB5.9 billion (US$912 million), representing an 86% increase from the same period in 2020, primarily due to the strong recovery of China’s domestic market. Net revenue for the second quarter of 2021 increased by 43% from the previous quarter, primarily due to the easement of China’s travel restrictions previously enhanced in January and February 2021.

    Accommodation reservation revenue for the second quarter of 2021 was RMB2.5 billion (US$380 million), representing a 96% increase from the same period in 2020, and a 55% increase from the previous quarter, primarily due to the recovery of China’s domestic market.

    Transportation ticketing revenue for the second quarter of 2021 was RMB2.1 billion (US$320 million), representing an 80% increase from the same period in 2020, and a 37% increase from the previous quarter, primarily due to the recovery of China’s domestic market.

    Packaged-tour revenue for the second quarter of 2021 was RMB367 million (US$57 million), representing a 182% increase from the same period in 2020, and a 117% increase from the previous quarter, primarily due to the recovery of China’s domestic market.

    Corporate travel revenue for the second quarter of 2021 was RMB390 million (US$60 million), representing a 141% increase from the same period in 2020, and a 55% increase from the previous quarter, primarily due to the recovery of China’s domestic market.

    Gross margin was 79% for the second quarter of 2021, which increased from 72% for the same period in 2020 and 75% for the previous quarter.

    Product development expenses for the second quarter of 2021 increased by 24% to RMB2.2 billion (US$345 million) from the same period in 2020, primarily due to an increase in product development personnel related expenses. Product development expenses stayed approximately the same from the previous quarter. Product development expenses for the second quarter of 2021 accounted for 38% of the net revenue.

    Sales and marketing expenses for the second quarter of 2021 increased by 112% to RMB1.4 billion (US$217 million) from the same period in 2020 and increased by 47% from the previous quarter, primarily due to the increase in expenses relating to sales and marketing promotion activities. Sales and marketing expenses for the second quarter of 2021 accounted for 24% of the net revenue.

    General and administrative expenses for the second quarter of 2021 increased by 39% to RMB713 million (US$110 million) from the same period in 2020, primarily due to a reversal of bad debt provision in the second quarter of 2020 for the Company’s travel suppliers reflecting the change in credit risk with travel industry recovery. Excluding the effect of bad debt provision, general and administrative expenses stayed flat from the same period in 2020. General and administrative expenses increased by 4% from the previous quarter. General and administrative expenses for the second quarter of 2021 accounted for 12% of the net revenue.

    Income tax expense for the second quarter of 2021 was RMB97 million (US$15 million), compared to RMB201 million in the same period in 2020 and RMB41 million in the previous quarter. The change in our effective tax rate was primarily due to the non-taxable income of the fair value changes in equity securities investments and exchangeable senior notes.

    Net loss attributable to Trip.com Group’s shareholders for the second quarter of 2021 was RMB647 million (US$100 million), compared to net loss attributable to Trip.com Group’s shareholders of RMB476 million in the same period in 2020 and net income attributable to Trip.com Group’s shareholders of RMB1.8 billion in the previous quarter. Excluding share-based compensation charges and fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense), non-GAAP net income attributable to Trip.com Group’s shareholders was RMB728 million (US$112 million), compared to non-GAAP net loss attributable to Trip.com Group’s shareholders of RMB1.2 billion in the same period in 2020 and non-GAAP net loss attributable to Trip.com Group’s shareholders of RMB204 million in the previous quarter.

    Adjusted EBITDA for the second quarter of 2021 was RMB916 million (US$142 million), compared to RMB124 million in the same period in 2020 and RMB-216 million in the previous quarter. Adjusted EBITDA margin was 16% for the second quarter of 2021, compared to 4% in the same period in 2020 and -5% in the previous quarter.

    Diluted loss per ordinary share and per ADS was RMB1.02 (US$0.16) for the second quarter of 2021. Excluding share-based compensation charges and fair value changes of equity securities investments and exchangeable senior notes, non-GAAP diluted earnings per ordinary share and per ADS were RMB1.13 (US$0.18) for the second quarter of 2021. Each ADS currently represents one ordinary share of the Company.

    As of June 30, 2021, the balance of cash and cash equivalents, restricted cash, short-term investment, held to maturity time deposit and financial products was RMB75.4 billion (US$11.7 billion).

    Conference Call

    Trip.com Group’s management team will host a conference call at 8:00PM EST on September 23, 2021 (or 8:00AM CST on September 24, 2021) following this announcement.

    The conference call will be available live on Webcast and for replay at: https://investors.trip.com. The call will be archived for twelve months on our website.

    All participants must pre-register to join this conference call using the Participant Registration link below:

    https://s1.c-conf.com/diamondpass/10016512-wu23h2.html

    Upon registration, each participant will receive details for this conference call, including dial-in numbers, passcode and a unique access PIN. To join the conference, please dial the number provided, enter the passcode, followed by your PIN.

    A telephone replay of the call will be available after the conclusion of the conference call until October 1, 2021.

    The dial-in details for the replay:
    International dial-in number: +61-7-3107-6325
    Passcode: 10016512

    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 Trip.com Group’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 Trip.com Group’s ADSs or shares, Trip.com Group’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 Trip.com Group operates, failure to successfully develop Trip.com Group’s existing or future business lines, damage to or failure of Trip.com Group’s infrastructure and technology, loss of services of Trip.com Group’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 Trip.com Group’s affiliated Chinese entities and the contractual arrangements among Trip.com Group, its affiliated Chinese entities and their shareholders, and other risks outlined in Trip.com Group’s filings with the U.S. Securities and Exchange Commission or the Stock Exchange of Hong Kong Limited. All information provided in this press release and in the attachments is as of the date of the issuance, and Trip.com Group does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    About Non-GAAP Financial Measures

    To supplement Trip.com Group’s unaudited condensed consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Trip.com Group uses Non-GAAP financial information related to adjusted net income attributable to Trip.com Group’s shareholders, adjusted EBITDA, adjusted EBITDA margin and adjusted 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, “Compensation-Stock Compensation” and its share-based compensation charges are not tax deductible, and fair value changes of equity securities investments and exchangeable senior notes, net of tax, recorded under ASU 2016-1. Trip.com Group’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, does not have a standardized meaning under 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 and fair value changes of equity securities investments and exchangeable senior notes that have been and will continue to be significant recurring expenses in Trip.com Group’s business for the foreseeable future.

    Reconciliations of Trip.com Group’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 Trip.com Group Limited

    Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) is a leading one-stop travel platform globally, integrating a comprehensive suite of travel products and services and differentiated travel content. It is the go-to destination for travelers in China, and increasingly for travelers around the world, to explore travel and get inspired, to make informed and cost-effective travel bookings, and to enjoy hassle-free, on-the-go support and share travel experience. Founded in 1999 and listed on Nasdaq in 2003, the Company operates under a portfolio of brands, including Ctrip, Qunar, Trip.com and Skyscanner.

    For further information, please contact:

    Investor Relations
    Trip.com Group Limited
    Tel: +86 (21) 3406-4880 X 12229
    Email: [email protected]

    Trip.com Group Limited

    Unaudited Consolidated Balance Sheets

    (In millions, except share and per share data)

    December 31, 2020

    June 30, 2021

    June 30, 2021

    RMB (million)

    RMB (million)

    USD (million)

    (unaudited)

    (unaudited)

    (unaudited)

    ASSETS

    Current assets:

    Cash, cash equivalents and restricted cash

    19,415

    27,696

    4,290

    Short-term investments

    24,820

    35,286

    5,465

    Accounts receivable, net 

    4,119

    5,339

    827

    Prepayments and other current assets 

    9,657

    10,377

    1,607

    Total current assets

    58,011

    78,698

    12,189

    Property, equipment and software

    5,780

    5,605

    868

    Intangible assets and land use rights

    13,344

    13,177

    2,041

    Right-of-use asset

    987

    1,014

    157

    Investments (Includes held to maturity time deposit and
    financial products of RMB15,357 million and RMB12,388
    million as of December 31,2020 and June 30, 2021,
    respectively)

    47,943

    47,039

    7,285

    Goodwill

    59,353

    59,353

    9,193

    Other long-term assets

    436

    413

    64

    Deferred tax asset

    1,395

    1,706

    264

    Total assets

    187,249

    207,005

    32,061

    LIABILITIES

    Current liabilities:

    Short-term debt and current portion of long-term debt

    33,665

    40,967

    6,345

    Accounts payable

    4,506

    6,577

    1,019

    Advances from customers

    7,605

    7,595

    1,176

    Other current liabilities

    12,593

    13,431

    2,080

    Total current liabilities

    58,369

    68,570

    10,620

    Deferred tax liability

    3,574

    3,534

    547

    Long-term debt

    22,718

    22,713

    3,518

    Long-term lease liability

    618

    608

    94

    Other long-term liabilities

    403

    250

    39

    Total liabilities

    85,682

    95,675

    14,818

    SHAREHOLDERS’ EQUITY

    Total Trip.com Group Limited shareholders’ equity

    100,354

    110,395

    17,098

    Non-controlling interests

    1,213

    935

    145

    Total shareholders’ equity

    101,567

    111,330

    17,243

    Total liabilities and shareholders’ equity

    187,249

    207,005

    32,061

    Trip.com Group Limited

    Unaudited Consolidated Statements of Income/(Loss)

    (In millions, except share and per share data)

    Three Months Ended

    Six Months Ended

    June 30, 2020

    March 31, 2021

    June 30, 2021

    June 30, 2021

    June 30, 2020

    June 30, 2021

    June 30, 2021

    RMB (million)

    RMB (million)

    RMB (million)

    USD (million)

    RMB (million)

    RMB (million)

    USD (million)

    (unaudited)

    (unaudited)

    (unaudited)

    (unaudited)

    (unaudited)

    (unaudited)

    (unaudited)

    Revenue:

    Accommodation reservation 

    1,254

    1,580

    2,455

    380

    2,409

    4,035

    625

    Transportation ticketing 

    1,150

    1,506

    2,066

    320

    3,543

    3,572

    553

    Packaged-tour 

    130

    169

    367

    57

    653

    536

    83

    Corporate travel

    162

    252

    390

    60

    288

    642

    99

    Others

    466

    602

    614

    95

    1,003

    1,216

    188

    Total revenue

    3,162

    4,109

    5,892

    912

    7,896

    10,001

    1,548

    Less: Sales tax and surcharges

    (3)

    (1)

    (2)

    (0)

    (6)

    (3)

    (0)

    Net revenue

    3,159

    4,108

    5,890

    912

    7,890

    9,998

    1,548

    Cost of revenue

    (872)

    (1,034)

    (1,223)

    (189)

    (2,092)

    (2,257)

    (350)

    Gross profit

    2,287

    3,074

    4,667

    723

    5,798

    7,741

    1,198

    Operating expenses:

    Product development **

    (1,801)

    (2,225)

    (2,226)

    (345)

    (3,497)

    (4,451)

    (689)

    Sales and marketing **

    (661)

    (952)

    (1,402)

    (217)

    (2,044)

    (2,354)

    (365)

    General and administrative **

    (513)

    (684)

    (713)

    (110)

    (2,455)

    (1,397)

    (216)

    Total operating expenses

    (2,975)

    (3,861)

    (4,341)

    (672)

    (7,996)

    (8,202)

    (1,270)

    (Loss)/income from operations

    (688)

    (787)

    326

    51

    (2,198)

    (461)

    (72)

    Interest income 

    603

    418

    472

    73

    1,116

    890

    138

    Interest expense

    (461)

    (407)

    (418)

    (65)

    (908)

    (825)

    (128)

    Other income/(expense)

    1,766

    2,508

    (848)

    (131)

    (2,060)

    1,660

    257

    Income/(loss) before income tax
    expense and equity in income of
    affiliates

    1,220

    1,732

    (468)

    (72)

    (4,050)

    1,264

    195

    Income tax (expense)/benefit

    (201)

    (41)

    (97)

    (15)

    53

    (138)

    (21)

    Equity in (loss)/income of affiliates

    (1,491)

    74

    (94)

    (15)

    (1,812)

    (20)

    (3)

    Net (loss)/income

    (472)

    1,765

    (659)

    (102)

    (5,809)

    1,106

    171

    Net loss attributable to non-controlling
    interests

    12

    15

    12

    2

    20

    27

    4

    Accretion to redemption value of
    redeemable non-controlling interests

    (16)

    (40)

    Net (loss)/income attributable to
    Trip.com Group Limited

    (476)

    1,780

    (647)

    (100)

    (5,829)

    1,133

    175

    (Losses)/earnings per ordinary share *

    – Basic

    (0.80)

    2.95

    (1.02)

    (0.16)

    (9.75)

    1.76

    0.27

    – Diluted

    (0.80)

    2.88

    (1.02)

    (0.16)

    (9.75)

    1.73

    0.27

    (Losses)/earnings per ADS *

    – Basic

    (0.80)

    2.95

    (1.02)

    (0.16)

    (9.75)

    1.76

    0.27

    – Diluted

    (0.80)

    2.88

    (1.02)

    (0.16)

    (9.75)

    1.73

    0.27

    Weighted average ordinary shares outstanding *

    – Basic

    599,749,816

    604,596,792

    635,476,056

    635,476,056

    597,903,192

    644,666,248

    644,666,248

    – Diluted

    599,749,816

    629,540,722

    635,476,056

    635,476,056

    597,903,192

    656,483,984

    656,483,984

    ** Share-based compensation included in Operating expenses above is as follows:

      Product development 

    252

    151

    181

    28

    431

    332

    51

      Sales and marketing 

    41

    22

    34

    5

    71

    56

    9

      General and administrative 

    195

    121

    151

    23

    328

    272

    42

    * The change in ADS ratio proportionate to the Share Subdivision from eight ADSs representing one ordinary share to one ADS representing one Share, effective on March 18, 2021. Basic
    and diluted earnings/(losses) per ordinary share (GAAP and Non-GAAP) and weighted average ordinary shares outstanding (GAAP and Non-GAAP) for the three months ended June 30, 2020
    and for the six months ended June 30, 2020 have been retrospectively adjusted for the Share Subdivision that became effective on March 18, 2021.

    Trip.com Group Limited

    Reconciliation of  GAAP and Non-GAAP Results

    (In millions, except % and per share data)

    Three Months Ended

    Six Months Ended

    June 30, 2020

    March 31, 2021

    June 30, 2021

    June 30, 2021

    June 30, 2020

    June 30, 2021

    June 30, 2021

    RMB (million)

    RMB (million)

    RMB (million)

    USD (million)

    RMB (million)

    RMB (million)

    USD (million)

    (unaudited)

    (unaudited)

    (unaudited)

    (unaudited)

    (unaudited)

    (unaudited)

    (unaudited)

    Net (Loss)/income

    (472)

    1,765

    (659)

    (102)

    (5,809)

    1,106

    171

    Less: Interest income

    (603)

    (418)

    (472)

    (73)

    (1,116)

    (890)

    (138)

    Add: Interest expense

    461

    407

    418

    65

    908

    825

    128

    Add: Other (income)/expense

    (1,766)

    (2,508)

    848

    131

    2,060

    (1,660)

    (257)

    Add: Income tax expense/(benefit)

    201

    41

    97

    15

    (53)

    138

    21

    Add: Equity in loss/(income) of affiliates

    1,491

    (74)

    94

    15

    1,812

    20

    3

    (Loss)/income from operations

    (688)

    (787)

    326

    51

    (2,198)

    (461)

    (72)

    Add: Share-based compensation

    488

    294

    366

    56

    830

    660

    102

    Add: Depreciation and amortization

    324

    277

    224

    35

    615

    501

    78

    Adjusted EBITDA

    124

    (216)

    916

    142

    (753)

    700

    108

    Adjusted EBITDA margin

    4%

    -5%

    16%

    16%

    -10%

    7%

    7%

    Net (loss)/income attributable to Trip.com Group Limited

    (476)

    1,780

    (647)

    (100)

    (5,829)

    1,133

    175

    Add: Share-based compensation

    488

    294

    366

    56

    830

    660

    102

    Add: (Gain)/loss from fair value changes of equity securities
    investments and exchangeable senior notes

    (1,194)

    (2,367)

    1,053

    163

    1,805

    (1,314)

    (203)

    Add: Tax effects on fair value changes of equity securities investments
    and exchangeable senior notes

    27

    89

    (44)

    (7)

    (182)

    45

    7

    Non-GAAP net (loss)/income attributable to Trip.com Group
    Limited

    (1,155)

    (204)

    728

    112

    (3,376)

    524

    81

    Weighted average ordinary shares outstanding- Diluted-non GAAP *

    599,749,816

    604,596,792

    645,021,131

    645,021,131

    597,903,192

    656,483,984

    656,483,984

    Non-GAAP Diluted (losses)/income per share *

    (1.93)

    (0.34)

    1.13

    0.18

    (5.65)

    0.80

    0.12

    Non-GAAP Diluted (losses)/income per ADS *

    (1.93)

    (0.34)

    1.13

    0.18

    (5.65)

    0.80

    0.12

    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=RMB6.4566 on June 30, 2021 published by the Federal Reserve Board.

    Cision View original content:https://www.prnewswire.com/news-releases/tripcom-group-limited-reports-unaudited-second-quarter-and-first-half-of-2021-financial-results-301383778.html

    Raaj Lokanathan
    A software engineer as a profession. A tech blogger as a passion.

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