Ctrip Reports Unaudited Fourth Quarter and Full Year 2013 Financial Results

Feb 12, 2014, 17:00 ET from Ctrip.com International, Ltd.

SHANGHAI, Feb. 12, 2014 /PRNewswire/ -- Ctrip.com International, Ltd. (Nasdaq: CTRP), a leading travel service provider of hotel accommodations, ticketing services, 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, 2013.

Highlights for the Fourth Quarter of 2013

  • Net revenues were RMB1.4 billion (US$238 million) for the fourth quarter of 2013, up 31% year-on-year.
  • Gross margin was 73% for the fourth quarter of 2013, compared to 74% in the same period of 2012.
  • Income from operations was RMB183 million (US$30 million) for the fourth quarter of 2013, up 53% year-on-year. Excluding share-based compensation charges (non-GAAP), income from operations was RMB289 million (US$48 million), up 24% year-on-year.
  • Operating margin was 13% for the fourth quarter of 2013, compared to 11% in the same period of 2012. Excluding share-based compensation charges (non-GAAP), operating margin was 20%, compared to 21% in the same period of 2012.
  • Net income attributable to Ctrip's shareholders was RMB261 million (US$43 million) in the fourth quarter of 2013, up 36% year-on-year. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB368 million (US$61 million), up 20% year-on-year.
  • Diluted earnings per ADS were RMB1.68 (US$0.28) for the fourth quarter of 2013. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.36 (US$0.39) for the fourth quarter of 2013.
  • Share-based compensation charges were RMB106 million (US$18 million), accounting for 7% of the net revenues, or RMB0.68 (US$0.11) per ADS for the fourth quarter of 2013.

Highlights for the Full Year 2013

  • Net revenues were RMB5.4 billion (US$890 million) in 2013, up 30% from 2012.
  • Gross margin was 74% in 2013, compared to 75% in 2012.
  • Income from operations was RMB838 million (US$139 million) in 2013, up 28% from 2012. Excluding share-based compensation charges (non-GAAP), income from operations was RMB1.3 billion (US$211 million) in 2013, up 17% from 2012.
  • Operating margin was 16% in 2013, which remained consistent with that in 2012. Excluding share-based compensation charges (non-GAAP), operating margin was 24%, compared to 26% in 2012.
  • Net income attributable to Ctrip's shareholders was RMB998 million (US$165 million) in 2013, up 40% from 2012. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB1.4 billion (US$237 million), up 25% from 2012.
  • Diluted earnings per ADS were RMB6.66 (US$1.10) in 2013, compared to RMB4.98 (US$0.80) in 2012. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB9.53 (US$1.57), compared to RMB7.97 (US$1.28) in 2012.
  • Share-based compensation charges were RMB438 million (US$72 million), accounting for 8% of the net revenues, or RMB2.87 (US$0.47) per ADS in 2013.

"We are pleased to report the strong performance of the fourth quarter and the full year for 2013," said James Liang, Chairman of the Board and Chief Executive Officer of Ctrip. "The accelerated growth across all business lines reflected Ctrip's strong execution of our market share gain strategy. The investment that Ctrip has made in leisure travel products, price competitiveness, open-platform, and mobile Internet has significantly enhanced our leadership in the online and mobile travel markets. Cumulative downloads for Ctrip mobile app recently reached 100 million, with around 50% of hotel and 30% of air transactions booked through mobile channels during peak days. We are encouraged by the results and will continue our investments in branding, promotions, and new businesses in 2014."

Fourth Quarter and Full Year 2013 Financial Results and Business Updates

For the fourth quarter of 2013, Ctrip reported total revenues of RMB1.5 billion (US$252 million), representing a 31% increase from the same period of 2012. Total revenues for the fourth quarter of 2013 decreased by 7% from the previous quarter.

For the full year ended December 31, 2013, total revenues were RMB5.7 billion (US$944 million), representing a 30% increase from 2012.

Hotel reservation revenues amounted to RMB642 million (US$106 million) for the fourth quarter of 2013, representing a 37% increase year-on-year, primarily driven by an increase of 55% in hotel reservation volume and partially offset by the decrease of commission per room night. Hotel reservation revenues increased by 5% quarter-on-quarter, primarily driven by hotel reservation volume growth.

For the full year ended December 31, 2013, hotel reservation revenues were RMB2.2 billion (US$366 million), representing a 30% increase from 2012. The hotel reservation revenues accounted for 39% of the total revenues in 2013 and 2012.

Ticketing services revenues for the fourth quarter of 2013 were RMB579 million (US$96 million), representing a 29% increase year-on-year, primarily driven by an increase of 37% in air ticketing sales volume and partially offset by the decrease of commission per ticket. Ticketing services revenues decreased 4% quarter-on-quarter, primarily due to the decrease of commission per ticket.

For the full year ended December 31, 2013, ticketing services revenues were RMB2.2 billion (US$357 million), representing a 28% increase from 2012. Ticketing services revenues accounted for 38% of the total revenues in 2013 and 2012.

Packaged-tour revenues for the fourth quarter of 2013 were RMB194 million (US$32 million), representing a 17% increase year-on-year due to the increase of leisure travel volume. Packaged-tour revenues decreased 39% quarter-on-quarter, primarily due to seasonality.

For the full year ended December 31, 2013, packaged tour revenues were RMB936 million (US$155 million), representing a 36% increase from 2012. The packaged tour revenues accounted for 16% of the total revenues in 2013 and 2012.

Corporate travel revenues for the fourth quarter of 2013 were RMB78 million (US$13 million), representing a 36% increase year-on-year and a 9% increase quarter-on-quarter, primarily driven by the increased corporate travel demand from business activities.

For the full year ended December 31, 2013, corporate travel revenues were RMB267 million (US$44 million), representing a 34% increase from 2012. The corporate travel revenues accounted for 5% of the total revenues in 2013 and 2012.

For the fourth quarter of 2013, net revenues were RMB1.4 billion (US$238 million), representing a 31% increase from the same period of 2012. Net revenues for the fourth quarter of 2013 decreased by 7% from the previous quarter.

For the full year ended December 31, 2013, net revenues were RMB5.4 billion (US$890 million), representing a 30% increase from 2012.

Gross margin was 73% in the fourth quarter of 2013, compared to 74% in the same period of 2012 and 75% in the previous quarter.

For the full year ended December 31, 2013, gross margin was 74%, compared to 75% in 2012.

Product development expenses for the fourth quarter of 2013 increased by 26% to RMB333 million (US$55 million) from the same period of 2012, primarily due to an increase in product development personnel related expense. Product development expenses for the fourth quarter of 2013 decreased by 1% from the previous quarter. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 21% of the net revenues, remained consistent with that in the same period of 2012 and increased from 20% in the previous quarter.

For the full year ended December 31, 2013, product development expenses were RMB1.2 billion (US$206 million), representing an increase of 37% from 2012. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 21% of the net revenues, increased from 19% in 2012.

Sales and marketing expenses for the fourth quarter of 2013 increased by 34% to RMB376 million (US$62 million) from the same period in 2012 and by 6% from the previous quarter, primarily due to an increase in sales and marketing related activities. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 25% of the net revenues, increased from 24% in the same period of 2012 and 22% in the previous quarter.

For the full year ended December 31, 2013, sales and marketing expenses were RMB1.3 billion (US$210 million), representing an increase of 29% from 2012. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 23% of the net revenues, increasing from 22% in 2012.

General and administrative expenses for the fourth quarter of 2013 increased by 1% to RMB154 million (US$25 million) from the same period in 2012, and decreased by 11% from the previous quarter. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 6% of the net revenues, decreased from 8% in the same period of 2012 and 7% in the previous quarter.

For the full year ended December 31, 2013, general and administrative expenses were RMB646 million (US$107 million), representing a 13% increase from 2012. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 7% of the net revenues, decreasing from 8% in 2012.

Income from operations for the fourth quarter of 2013 was RMB183 million (US$30 million), representing an increase of 53% from the same period in 2012 and a decrease of 39% from the previous quarter. Excluding share-based compensation charges (non-GAAP), income from operations was RMB289 million (US$48 million), representing an increase of 24% from the same period in 2012 and a decrease of 29% from the previous quarter.

For the full year ended December 31, 2013, income from operations was RMB838 million (US$139 million), representing an increase of 28% from 2012. Excluding share-based compensation charges (non-GAAP), income from operations was RMB1.3 billion (US$211 million), increasing by 17% from 2012.

Operating margin was 13% in the fourth quarter of 2013, compared to 11% in the same period of 2012 and 19% in the previous quarter. Excluding share-based compensation charges (non-GAAP), operating margin was 20%, decreased from 21% in the same period of 2012 and 27% in the previous quarter.

For the full year ended December 31, 2013, operating margin was 16%, which remained consistent with that in 2012. Excluding share-based compensation charges (non-GAAP), operating margin was 24%, compared to 26% in 2012.

The effective tax rate for the fourth quarter of 2013 was 26%, increased from 25% in the same period of 2012. The effective tax rate for the fourth quarter increased from 22% from the previous quarter, primarily due to the increase in the amount of non tax-deductible share-based compensation as a percentage to our income as a whole.

The effective tax rate for the full year ended December 31, 2013 was 26%, compared to 31% in 2012, primarily because Ctrip accrued the provision of 5% PRC withholding tax related to the dividends that our PRC subsidiaries would pay to our Hong Kong subsidiary to fund the share repurchase program in 2012.

Net income attributable to Ctrip's shareholders for the fourth quarter of 2013 was RMB261 million (US$43 million), representing an increase of 36% from the same period in 2012 and a decrease of 30% from the previous quarter. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB368 million (US$61 million), representing an increase of 20% from the same period in 2012 and a decrease of 24% from the previous quarter.

For the full year ended December 31, 2013, net income attributable to Ctrip's shareholders was RMB998 million (US$165 million), representing an increase of 40% from 2012. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB1.4 billion (US$237 million), representing an increase of 25% from 2012.

Diluted earnings per ADS were RMB1.68 (US$0.28) for the fourth quarter of 2013. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.36 (US$0.39) for the fourth quarter of 2013.

For the full year ended December 31, 2013, diluted earnings per ADS were RMB6.66 (US$1.10), compared to RMB4.98 (US$0.80) in 2012. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB9.53 (US$1.57), compared to RMB7.97 (US$1.28) in 2012.

As of December 31, 2013, the balance of cash and cash equivalents, restricted cash and short-term investment was RMB11.5 billion (US$1.9 billion).

Business Outlook

For the first quarter of 2014, the Company expects to continue the net revenue growth year-on-year at a rate of approximately 25-30%. 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 7:00PM U.S. Eastern Time on February 12, 2014 (or 8:00AM on February 13, 2014 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 archived for one month at this website.

The dial-in details for the live conference call: U.S. Toll Free Number +1.877.299.4502, International dial-in number +1.617.597.5442, Passcode 45211058#. For pre-registration, please click https://www.theconferencingservice.com/prereg/key.process?key=PH3V4TXXV.

A telephone replay of the call will be available after the conclusion of the conference call until February 19, 2014. 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 84129925.

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, 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 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, 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, 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 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, 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, "Compensation-Stock Compensation" for 2013 and 2012. 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 hotel accommodations, ticketing services, packaged tours, and corporate travel management in China. Ctrip aggregates hotel and flight information to enable business and leisure travellers to make informed and cost-effective bookings. Ctrip also helps customers book 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 12928 Email: iremail@ctrip.com

Ctrip.com International, Ltd.

Unaudited Condensed Consolidated Balance Sheets

December 31, 2012

December 31, 2013

December 31, 2013

RMB

RMB

USD

(unaudited)

(unaudited)

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

3,421,532,962

7,138,344,814

1,179,170,559

Restricted cash

768,228,577

739,543,614

122,163,902

Short-term investment

1,408,664,335

3,635,090,955

600,474,248

Accounts receivable, net

983,804,403

1,518,230,029

250,793,734

Prepayments and other current assets

999,148,710

1,237,530,956

204,425,551

Deferred tax assets, current

61,840,526

96,979,500

16,019,872

Total current assets

7,643,219,513

14,365,719,868

2,373,047,866

Long-term deposits and prepayments    

210,618,310

559,185,652

92,370,889

Land use rights

110,659,284

107,476,794

17,753,902

Property, equipment and software

1,123,937,191

1,412,943,693

233,401,671

Investment

1,437,247,949

2,857,213,480

471,978,043

Goodwill

822,585,341

972,531,184

160,650,707

Intangible assets

321,483,420

356,653,022

58,914,882

Other long-term receviables

-

186,750,769

30,849,029

Total assets

11,669,751,008

20,818,474,462

3,438,966,989

LIABILITIES

Current liabilities:

Short-term borrowings

453,478,628

774,599,341

127,954,696

Accounts payable

1,023,672,151

1,637,545,824

270,503,299

Salary and welfare payable

229,969,924

257,641,763

42,559,387

Taxes payable

216,456,010

315,299,656

52,083,793

Advances from customers

1,414,865,769

2,451,931,450

405,030,221

Accrued liability for customer reward program

217,548,153

284,668,935

47,023,958

Other payables and accruals

354,153,607

646,321,729

106,764,744

Total current liabilities

3,910,144,242

6,368,008,698

1,051,920,098

Deferred tax liabilities, non-current

53,309,153

63,197,155

10,439,426

Long-term Debt

1,121,418,000

5,657,182,650

934,500,000

Total liabilities

5,084,871,395

12,088,388,503

1,996,859,524

SHAREHOLDERS' EQUITY

Share capital

2,979,144

3,033,490

501,097

Additional paid-in capital

3,818,256,227

4,088,484,766

675,369,571

Statutory reserves

103,222,512

118,449,230

19,566,419

Accumulated other comprehensive (loss)/income

(58,778,675)

372,634,580

61,554,847

Retained Earnings

4,515,841,767

5,498,934,733

908,359,306

Treasury stock

(1,891,888,900)

(1,551,141,268)

(256,230,284)

Total Ctrip's shareholders' equity

6,489,632,075

8,530,395,531

1,409,120,956

Noncontrolling interests

95,247,538

199,690,428

32,986,509

Total shareholders' equity

6,584,879,613

8,730,085,959

1,442,107,465

Total liabilities and shareholders' equity

11,669,751,008

20,818,474,462

3,438,966,989

 

Ctrip.com International, Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

December 31, 2012

September 30, 2013

December 31, 2013

December 31, 2013

RMB

RMB

RMB

USD

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenues:

Hotel reservation

468,304,604

610,653,418

642,014,733

106,053,279

Ticketing services **

447,186,315

604,272,344

578,995,620

95,643,263

Packaged tour

165,724,297

319,566,156

193,885,405

32,027,587

Corporate travel

57,532,553

71,852,907

78,217,923

12,920,680

Others

28,546,319

34,141,394

34,858,565

5,758,225

Total revenues

1,167,294,088

1,640,486,219

1,527,972,246

252,403,034

Less: business tax and related surcharges

(65,938,822)

(99,510,607)

(87,566,153)

(14,464,898)

Net revenues

1,101,355,266

1,540,975,612

1,440,406,093

237,938,136

Cost of revenues

(284,704,746)

(379,121,709)

(394,362,609)

(65,144,062)

Gross profit

816,650,520

1,161,853,903

1,046,043,484

172,794,074

Operating expenses:

Product development *

(264,099,634)

(335,461,829)

(332,873,022)

(54,986,706)

Sales and marketing *

(280,764,753)

(354,501,850)

(376,172,398)

(62,139,253)

General and administrative *

(151,879,211)

(172,348,825)

(154,055,198)

(25,448,106)

Total operating expenses

(696,743,598)

(862,312,504)

(863,100,618)

(142,574,065)

Income from operations

119,906,922

299,541,399

182,942,866

30,220,009

Interest income ***

38,828,870

56,207,564

70,556,062

11,655,031

Interest expense ***

(4,767,707)

(3,595,298)

(45,765,307)

(7,559,890)

Other income

58,378,812

67,808,945

63,568,051

10,500,694

Income before income tax expense and equity in income

212,346,897

419,962,610

271,301,672

44,815,844

Income tax expense

(53,776,285)

(92,166,420)

(69,776,649)

(11,526,281)

Equity in income of affiliates

4,265,040

24,740,697

35,251,442

5,823,123

Net income

162,835,652

352,536,887

236,776,465

39,112,686

Less: Net loss attributable to noncontrolling interests

29,716,374

20,450,829

24,702,936

4,080,634

Net income attributable to Ctrip's shareholders

192,552,026

372,987,716

261,479,401

43,193,320

Comprehensive income attributable to Ctrip's shareholders

197,932,727

443,127,464

648,352,184

107,100,151

Earnings per ordinary share

- Basic

5.96

11.34

7.78

1.29

- Diluted

5.51

9.74

6.74

1.11

Earnings per ADS

- Basic

1.49

2.84

1.95

0.32

- Diluted

1.38

2.44

1.68

0.28

Weighted average ordinary shares outstanding

- Basic

32,282,299

32,887,276

33,605,765

33,605,765

- Diluted

35,719,079

38,745,348

39,290,366

39,290,366

* Share-based compensation charges included are as follows:

  Product development

35,881,144

34,621,728

34,188,328

5,647,509

  Sales and marketing

14,379,832

11,917,951

11,568,731

1,911,018

  General and administrative

63,478,526

62,359,499

60,517,724

9,996,816

** Ticketing services revenues mainly represent revenues from reservations of air tickets, railway tickets and other related services.

*** Interest expenses have been reclassified from interest income with no effect on net income or retained earnings.

 

Ctrip.com International, Ltd.

Condensed Consolidated Statements of Comprehensive Income

Year Ended

Year Ended

Year Ended

December 31, 2012

December 31, 2013

December 31, 2013

RMB

RMB

USD

(unaudited)

(unaudited)

(unaudited)

Revenues:                                                                                           

Hotel reservation

1,702,500,571

2,214,170,887

365,754,974

Ticketing services **

1,690,285,903

2,161,784,259

357,101,320

Packaged tour

689,660,631

935,684,729

154,564,106

Corporate travel

199,756,068

266,988,534

44,103,364

Others

126,989,085

138,388,653

22,860,177

Total revenues

4,409,192,258

5,717,017,062

944,383,941

Less: business tax and related surcharges

(250,401,009)

(330,271,520)

(54,556,968)

Net revenues

4,158,791,249

5,386,745,542

889,826,973

Cost of revenues

(1,037,791,093)

(1,386,767,067)

(229,077,600)

Gross profit

3,121,000,156

3,999,978,475

660,749,373

Operating expenses:

Product development *

(911,904,722)

(1,245,719,192)

(205,778,151)

Sales and marketing *

(984,002,165)

(1,269,412,720)

(209,692,043)

General and administrative *

(570,487,457)

(646,404,879)

(106,778,479)

Total operating expenses

(2,466,394,344)

(3,161,536,791)

(522,248,673)

Income from operations

654,605,812

838,441,684

138,500,700

Interest income ***

176,192,796

200,068,533

33,048,967

Interest expense ***

(10,392,832)

(57,043,756)

(9,422,957)

Other income

130,287,943

163,122,374

26,945,897

Income before income tax expense and equity in income

950,693,719

1,144,588,835

189,072,607

Income tax expense

(294,525,956)

(293,740,322)

(48,522,444)

Equity in income of affiliates

34,343,000

55,554,072

9,176,879

Net income

690,510,763

906,402,585

149,727,042

Less: Net loss attributable to noncontrolling interests

23,895,101

91,917,099

15,183,623

Net income attributable to Ctrip's shareholders

714,405,864

998,319,684

164,910,665

Comprehensive income attributable to Ctrip's shareholders

828,093,466

1,429,732,939

236,175,056

Earnings per ordinary share

- Basic

20.87

30.34

5.01

- Diluted

19.92

26.63

4.40

Earnings per ADS

- Basic

5.22

7.58

1.25

- Diluted

4.98

6.66

1.10

Weighted average ordinary shares outstanding

- Basic

34,236,761

32,905,601

32,905,601

- Diluted

36,090,785

38,069,841

38,069,841

* Share-based compensation charges included are as follows:

  Product development

132,583,177

138,668,196

22,906,354

  Sales and marketing

55,892,394

49,104,528

8,111,490

  General and administrative

243,245,751

250,156,753

41,322,952

** Ticketing services revenues mainly represent revenues from reservations of air tickets, railway tickets and other related services.

*** Interest expenses have been reclassified from interest income with no effect on net income or retained earnings.

 

Ctrip.com International, Ltd.

Reconciliation of  GAAP and Non-GAAP Results

(In RMB, except % and per share information)

Quarter Ended December 31, 2013

GAAP  Result

% of Net Revenues

Share-based Compensation

% of Net Revenues

Non-GAAP Result

% of Net Revenues

Product development

(332,873,022)

23%

34,188,328

2%

(298,684,694)

21%

Sales and marketing

(376,172,398)

26%

11,568,731

1%

(364,603,667)

25%

General and administrative

(154,055,198)

11%

60,517,724

4%

(93,537,474)

6%

Total operating expenses

(863,100,618)

60%

106,274,783

7%

(756,825,835)

53%

Income from operations

182,942,866

13%

106,274,783

7%

289,217,649

20%

Net income attributable to Ctrip's shareholders

261,479,401

18%

106,274,783

7%

367,754,184

26%

Diluted earnings per ordinary share (RMB)

6.74

2.70

9.44

Diluted earnings per ADS (RMB)

1.68

0.68

2.36

Diluted earnings per ADS (USD)

0.28

0.11

0.39

Quarter Ended September 30, 2013

GAAP  Result

% of Net Revenues

Share-based Compensation

% of Net Revenues

Non-GAAP Result

% of Net Revenues

Product development

(335,461,829)

22%

34,621,728

2%

(300,840,101)

20%

Sales and marketing

(354,501,850)

23%

11,917,951

1%

(342,583,899)

22%

General and administrative

(172,348,825)

11%

62,359,499

4%

(109,989,326)

7%

Total operating expenses

(862,312,504)

56%

108,899,178

7%

(753,413,326)

49%

Income from operations

299,541,399

19%

108,899,178

7%

408,440,577

27%

Net income attributable to Ctrip's shareholders

372,987,716

24%

108,899,178

7%

481,886,894

31%

Diluted earnings per ordinary share (RMB)

9.74

2.81

12.55

Diluted earnings per ADS (RMB)

2.44

0.70

3.14

Diluted earnings per ADS (USD)

0.40

0.11

0.51

Quarter Ended December 31, 2012

GAAP  Result

% of Net Revenues

Share-based Compensation

% of Net Revenues

Non-GAAP Result

% of Net Revenues

Product development

(264,099,634)

24%

35,881,144

3%

(228,218,490)

21%

Sales and marketing

(280,764,753)

25%

14,379,832

1%

(266,384,921)

24%

General and administrative

(151,879,211)

14%

63,478,526

6%

(88,400,685)

8%

Total operating expenses

(696,743,598)

63%

113,739,502

10%

(583,004,096)

53%

Income from operations

119,906,922

11%

113,739,502

10%

233,646,424

21%

Net income attributable to Ctrip's shareholders

192,552,026

17%

113,739,502

10%

306,291,528

28%

Diluted earnings per ordinary share (RMB)

5.51

3.18

8.70

Diluted earnings per ADS (RMB)

1.38

0.80

2.17

Diluted earnings per ADS (USD)

0.22

0.13

0.35

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=RMB6.0537 on December 31, 2013 published by the Federal Reserve Board.

 

Ctrip.com International, Ltd. 

Reconciliation of  GAAP and Non-GAAP Results

(In RMB, except % and per share information)

Year Ended December 31, 2013

GAAP  Result

% of Net Revenues

Share-based Compensation

% of Net Revenues

Non-GAAP Result

% of Net Revenues

Product development 

(1,245,719,192)

23%

138,668,196

3%

(1,107,050,996)

21%

Sales and marketing 

(1,269,412,720)

24%

49,104,528

1%

(1,220,308,192)

23%

General and administrative 

(646,404,879)

12%

250,156,753

5%

(396,248,126)

7%

Total operating expenses

(3,161,536,791)

59%

437,929,477

8%

(2,723,607,314)

51%

Income from operations

838,441,684

16%

437,929,477

8%

1,276,371,161

24%

Net income attributable to Ctrip's shareholders

998,319,684

19%

437,929,477

8%

1,436,249,161

27%

Diluted earnings per ordinary share (RMB)

26.63

11.50

38.13

Diluted earnings per ADS (RMB)

6.66

2.87

9.53

Diluted earnings per ADS (USD)

1.10

0.47

1.57

Year Ended December 31, 2012

GAAP  Result

% of Net Revenues

Share-based Compensation

% of Net Revenues

Non-GAAP Result

% of Net Revenues

Product development 

(911,904,722)

22%

132,583,177

3%

(779,321,545)

19%

Sales and marketing 

(984,002,165)

24%

55,892,394

1%

(928,109,771)

22%

General and administrative 

(570,487,457)

14%

243,245,751

6%

(327,241,706)

8%

Total operating expenses

(2,466,394,344)

59%

431,721,322

10%

(2,034,673,022)

49%

Income from operations

654,605,812

16%

431,721,322

10%

1,086,327,134

26%

Net income attributable to Ctrip's shareholders

714,405,864

17%

431,721,322

10%

1,146,127,186

28%

Diluted earnings per ordinary share (RMB)

19.92

11.96

31.88

Diluted earnings per ADS (RMB)

4.98

2.99

7.97

Diluted earnings per ADS (USD)

0.80

0.48

1.28

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=RMB6.0537 on December 31, 2013 published by the Federal Reserve Board.

 

SOURCE Ctrip.com International, Ltd.



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