SHANGHAI, Feb. 2 /PRNewswire-Asia/ -- Ctrip.com International, Ltd. , a leading travel service provider for hotel accommodations, airline tickets and packaged tours in China, today on February 3, 2010, China time, announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2009.
Highlights for the Fourth Quarter of 2009 -- Net revenues were RMB566 million (US$83 million) for the fourth quarter of 2009, up 43% year-on-year. Excluding net revenues attributable to ezTravel, Ctrip's net revenues were RMB546 million (US$80 million) for the fourth quarter of 2009, up 38% year-on-year. -- Gross margin was 77% for the fourth quarter of 2009, remaining consistent with that in the same period in 2008. -- Income from operations was RMB189 million (US$28 million) for the fourth quarter of 2009, up 62% year-on-year. Excluding share-based compensation charges (non-GAAP), income from operations was RMB239 million (US$35 million), up 60% year-on-year. -- Operating margin was 33% in the fourth quarter of 2009, compared to 30% during the same period in 2008. Excluding share-based compensation charges (non-GAAP), operating margin was 42%, compared to 38% during the same period in 2008. -- Net income attributable to Ctrip's shareholders was RMB190 million (US$28 million) in the fourth quarter of 2009, up 57% year-on-year. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB240 million (US$35 million), up 56% year-on-year. -- Diluted earnings per ADS were RMB1.32 (US$0.19). Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB1.66 (US$0.24). -- Share-based compensation charges were RMB50 million (US$7 million), accounting for 9% of the net revenues, or RMB0.34 (US$0.05) per ADS for the fourth quarter of 2009. Highlights for the full year 2009 -- Net revenues were RMB2.0 billion (US$291 million) in 2009, up 34% from 2008. Excluding net revenues attributable to ezTravel, net revenues were RMB1.9 billion (US$281 million) for the full year 2009, representing an increase of 29% from 2008. -- Gross margin was 77% in 2009, compared to 78% in 2008. -- Income from operations was RMB687 million (US$101 million) in 2009, up 49% from 2008. Excluding share-based compensation charges (non-GAAP), income from operations was RMB818 million (US$120 million) in 2009, up 39% from 2008. -- Operating margin was 35% in 2009, compared to 31% in 2008. Excluding share-based compensation charges (non-GAAP), operating margin was 41%, compared to 40% in 2008. -- Net income attributable to Ctrip's shareholders was RMB659 million (US$97 million) in 2009, up 48% from 2008. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB790 million (US$116 million), up 38% from 2008. -- Diluted earnings per ADS were RMB4.67 (US$0.68) in 2009, compared to RMB3.23 (US$0.47) in 2008. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB5.60 (US$0.82), compared to RMB4.16 (US$0.61) in 2008. -- Share-based compensation charges were RMB131 million (US$19 million), accounting for 7% of the net revenues, or RMB0.93 (US$0.14) per ADS in 2009.
"Year 2009 was a year of challenges and opportunities. We continued to increase our market share, strengthen our vendor relationships, and enhance our customer service," said Min Fan, President and Chief Executive Officer of Ctrip. "With the increasing travel demand in China, Ctrip is committed to working diligently to capture the opportunities ahead of us."
Recent Developments Change of Ratio of ADS to Ordinary Shares
Effective on January 21, 2010, Ctrip changed the ratio of its ADSs to ordinary shares from two ADSs representing one ordinary share to four ADSs representing one ordinary share. For Ctrip's ADS holders, this ratio change had the same effect as a two-for-one ADS split.
Investment in the Travel Service Segment of Wing On Travel
In early February 2010, Ctrip's wholly owned subsidiary, C-Travel International Limited, entered into an agreement with Wing On Travel (Holdings) Limited, whereby C-Travel agrees to invest in and Wing On Travel agrees to sell to C-Travel, 90% of the issued share capital of Wing On Travel's travel service segment (operated through Wing On Travel's subsidiary, HKWOT (BVI) Limited), for a total consideration of approximately US$88 million (or HK$684 million) in cash. The closing of the transaction is subject to certain conditions, including approval by shareholders of Wing On Travel.
Headquartered in Hong Kong, Wing On Travel primarily operates in Hong Kong and engages in tour packages, airline ticketing, hotel reservation and inbound and outbound travel operations. Wing On Travel operates approximately 20 branches, along with a call center and the website http://www.wingontravel.com/ to service travelers. Wing On Travel is one of the most recognized travel brands in Hong Kong and was awarded as the "Best Travel Agency in Hong Kong" for four consecutive years since 2006. With more than 45 years in business, Wing On Travel has successfully built up a large base of loyal customers and a seasoned management team in the leisure travel market.
Through this investment, Ctrip will significantly increase its presence in Hong Kong, in addition to Mainland China and Taiwan. With Hong Kong becoming one of the most popular destinations and international travel hubs for Chinese travelers, Ctrip is able to establish a strategic position in Asia. This investment will enable Ctrip to offer more comprehensive products and elevated services to domestic, outbound and inbound travelers. Ctrip's leading market position in the travel services industry in Mainland China combined with Wing On Travel's solid track record in the leisure travel market will bring an innovative platform to service the increasing number of business and leisure travelers in the Greater China area.
James Liang, Chairman of the board of Ctrip, said, "We are pleased to enter into this transaction with Wing On Travel. Together, we will leverage Ctrip's cutting-edge technology and Wing On Travel's extensive expertise in leisure travel to bring our product offerings and services to a new level. Through this alliance, Ctrip is well positioned in the Greater China area to meet travelers' onshore and offshore travel needs. This transaction will become an important milestone in Ctrip's history."
Fourth Quarter and Full Year 2009 Financial Results
For the fourth quarter of 2009, Ctrip reported total revenues of RMB603 million (US$88 million), representing a 43% increase from the same period in 2008 and a 3% increase from the previous quarter in 2009.
For the full year ended December 31, 2009, total revenues were RMB2.1 billion (US$311 million), representing a 34% increase from 2008.
Hotel reservation revenues amounted to RMB279 million (US$41 million) for the fourth quarter of 2009, representing a 33% increase year-on-year, and a 7% increase quarter-on-quarter. Excluding revenues attributable to ezTravel, Ctrip's hotel reservation revenues were RMB275 million (US$40 million), representing a 31% increase year-on-year, primarily driven by the increase in hotel reservation volume. Excluding revenues attributable to ezTravel, Ctrip's hotel reservation revenues increased by 7% quarter-on-quarter, primarily driven by the increase in the commission per hotel room.
For the full year ended December 31, 2009, hotel reservation revenues were RMB956 million (US$140 million), representing a 25% increase from 2008. Excluding revenues attributable to ezTravel, Ctrip's hotel reservation revenues were RMB942 million (US$138 million) for the full year 2009, representing a 23% increase from 2008. The hotel reservation revenues accounted for 45% of the total revenues in 2009, compared to 48% in 2008.
Air ticket booking revenues for the fourth quarter of 2009 were RMB240 million (US$35 million), representing a 45% increase year-on-year, and remaining consistent with those in the previous quarter. Excluding revenues attributable to ezTravel, Ctrip's air-ticketing revenues were RMB233 million (US$34 million) for the fourth quarter of 2009, representing a 41% increase year-on-year, primarily driven by a 33% increase in air ticketing sales volume, and a 6% increase in commission per ticket year-on-year. Excluding revenues attributable to ezTravel, Ctrip's air-ticketing revenues remained consistent with those in the previous quarter.
For the full year ended December 31, 2009, air ticket booking revenues were RMB888 million (US$130 million), representing a 35% increase from 2008. Excluding revenues attributable to ezTravel, Ctrip's air ticket booking revenues were RMB866 million (US$127 million), representing a 31% increase from 2008. The air ticket booking revenues accounted for 42% of the total revenues in 2009, remaining consistent with those in 2008.
Packaged-tour revenues for the fourth quarter of 2009 were RMB49 million (US$7 million), representing a 62% increase year-on-year, and an 11% decrease quarter-on-quarter. Excluding revenues attributable to ezTravel, Ctrip's packaged-tour revenues were RMB 41 million (US$6 million), representing a 36% increase year-on-year due to the increase of leisure travel volume, and a 5% decrease quarter-on-quarter due to the decreased volume caused by seasonality.
For the full year ended December 31, 2009, packaged tour revenues were RMB177 million (US$26 million), representing a 62% increase from 2008. Excluding revenues attributable to ezTravel, Ctrip's packaged-tour revenues were RMB 149 million (US$22 million), representing an increase of 37% year-on-year. The packaged tour revenues accounted for 8% of the total revenues in 2009, compared to 7% in 2008.
For the fourth quarter of 2009, net revenues were RMB566 million (US$83 million), representing a 43% increase from the same period in 2008 and a 4% increase from the previous quarter. Excluding net revenues attributable to ezTravel, net revenues were RMB546 million (US$80 million), representing an increase of 38% from the same period in 2008 and a 5% increase from the previous quarter.
For the full year ended December 31, 2009, net revenues were RMB2.0 billion (US$291 million), representing a 34% increase from 2008. Excluding net revenues attributable to ezTravel, net revenues were RMB1.9 billion (US$281 million) for the full year 2009, representing an increase of 29% from 2008.
Gross margin was 77% in the fourth quarter of 2009, remaining consistent with that in the same period in 2008 and that in the previous quarter.
For the full year ended December 31, 2009, gross margin was 77%, compared to 78% in 2008.
Product development expenses for the fourth quarter of 2009 increased by 37% to RMB88 million (US$13 million) from the same period in 2008 and increased by 9% compared to the previous quarter, primarily due to an increase of product development personnel and share-based compensation charges. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 13% of the net revenues, compared to 14% in the same period last year and in the previous quarter.
For the full year ended December 31, 2009, product development expenses were RMB308 million (US$45 million), representing an increase of 31% from 2008. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 14% of the net revenues, remaining consistent with those in 2008.
Sales and marketing expenses for the fourth quarter of 2009 increased by 20% to RMB98 million (US$14 million) from the same period in 2008 and 4% from the previous quarter, primarily due to the increase of marketing related activities. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 16% of the net revenues, decreasing from 19% in the same period last year and 17% in the previous quarter.
For the full year ended December 31, 2009, sales and marketing expenses were RMB345 million (US$51 million), representing an increase of 20% from 2008. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 16% of the net revenues, decreasing from 18% in 2008.
General and administrative expenses for the fourth quarter of 2009 increased by 51% to RMB62 million (US$9 million) from the same period in 2008 and 32% from the previous quarter, primarily due to an increase of administrative personnel and share-based compensation charges. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 6% of the net revenues, remaining consistent with those in the same period in 2008 and in the previous quarter.
For the full year ended December 31, 2009, general and administrative expenses were RMB196 million (US$29 million), representing a 14% increase from 2008. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 6% of the net revenues, remaining consistent with those in 2008.
Income from operations for the fourth quarter of 2009 was RMB189 million (US$28 million), representing an increase of 62% from the same period in 2008 and a decrease of 5% from the previous quarter. Excluding share-based compensation charges (non-GAAP), income from operations was RMB239 million (US$35 million), increasing by 60% from the same period in 2008 and by 6% from the previous quarter.
For the full year ended December 31, 2009, income from operations was RMB687 million (US$101 million), representing an increase of 49% from 2008. Excluding share-based compensation charges (non-GAAP), income from operations was RMB818 million (US$120 million), increasing by 39% from 2008.
Operating margin was 33% in the fourth quarter of 2009, compared to 30% in the fourth quarter of 2008 and 37% in the previous quarter. Excluding share-based compensation charges (non-GAAP), operating margin was 42%, compared to 38% in the fourth quarter of 2008 and 41% in the previous quarter.
For the full year ended December 31, 2009, operating margin was 35%, compared to 31% in 2008. Excluding share-based compensation charges (non-GAAP), operating margin was 41%, compared to 40% in 2008.
Net income attributable to Ctrip's shareholders for the fourth quarter of 2009 was RMB190 million (US$28 million), representing a 57% increase from the same period in 2008, and a 1% increase from the previous quarter. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB240 million (US$35 million), representing an increase of 56% from the same period in 2008, and an increase of 11% from the previous quarter.
For the full year ended December 31, 2009, net income attributable to Ctrip's shareholders was RMB659 million (US$97 million), representing an increase of 48% from 2008. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip's shareholders was RMB790 million (US$116 million), representing an increase of 38% from 2008.
The effective tax rate for the fourth quarter of 2009 was 20%, increased from 2% in the same period of 2008, primarily because in the fourth quarter of 2008, the preferential tax rate of 15% was retroactively applied to certain PRC subsidiaries of Ctrip, which obtained approval for the High and New Technology Enterprise ("HNTE") status, from January 1, 2008. The effective tax rate for the fourth quarter of 2009 increased from 13% in 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, 2009 was 17%, compared to 19% in 2008, primarily due to the decrease in the amount of non tax-deductible share-based compensation as a percentage to our income as a whole.
Diluted earnings per ADS were RMB1.32 (US$0.19) for the fourth quarter of 2009. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB1.66 (US$0.24).
For the full year ended December 31, 2009, diluted earnings per ADS were RMB4.67 (US$0.68), compared to RMB3.23 (US$0.47) in 2008. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB5.60 (US$0.82), compared to RMB4.16 (US$0.61) in 2008.
As of December 31, 2009, the balance of cash, restricted cash and short-term investment was RMB1.7 billion (US$253 million).
Business Outlook
For the first quarter of 2010, the Company expects to continue the year-on-year net revenue growth at a rate of approximately 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 8:00PM U.S. Eastern Time on February 2, 2010 (or 9:00AM on February 3, 2010 in the Shanghai/HK time zone) following the announcement.
The conference call will be available on Webcast live and replay at: http://ir.ctrip.com/ . The call will be archived for 1 month at this website.
The dial-in details for the live conference call: U.S. Toll Free Number +1.888.679.8034, International dial-in number +1.617.213.4847, Passcode 72400835. For pre-registration, please click: https://www.theconferencingservice.com/prereg/key.process?key=PYCKN6G9G .
A telephone replay of the call will be available after the conclusion of the conference call through February 10, 2010. 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 36344086.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate," "is/are likely to," "confident" or other similar statements. Among other things, quotations from management and the Business Outlook section in this press release, as well as Ctrip's strategic and operational plans, contain forward-looking statements. Ctrip may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Ctrip's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, the slow-down of economic growth in China and the global economic downturn, general declines or disruptions in the travel industry, volatility in the trading price of Ctrip's ADSs, Ctrip's reliance on its relationships 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 China, Hong Kong, Macau or Taiwan, damage to or failure of Ctrip's infrastructure and technology, loss of services of Ctrip's key executives, inflation in China and in other countries, risks and uncertainties associated with PRC laws and regulations with respect to the ownership structure of Ctrip's affiliated Chinese entities and the contractual arrangements among Ctrip, its affiliated Chinese entities and their shareholders, and other risks outlined in Ctrip's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F and other filings. All information provided in this press release and in the attachments is as of February 3, 2010, and Ctrip does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Ctrip's unaudited consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Ctrip uses non-GAAP financial information related to product development expenses, sales and marketing expenses, general and administrative expenses, income from operations, operating margin, net income, and diluted earnings per ordinary share and per ADS, each of which is adjusted from the most comparable GAAP result to exclude the share-based compensation charges recorded under Statement of ASC 718, "Stock Compensation" for 2009 and 2008. Ctrip's management believes the non-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and provide management with a better capability to plan and forecast future periods.
Non-GAAP information is not prepared in accordance with GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for GAAP results. A limitation of using non-GAAP financial measures is that non-GAAP measures exclude share-based compensation charges that have been and will continue to be significant recurring expenses in our business for the foreseeable future.
Reconciliations of Ctrip's non-GAAP financial data to the most comparable GAAP data included in the consolidated statement of operations are included at the end of this press release.
About Ctrip.com International, Ltd.
Ctrip.com International, Ltd. is a leading travel service provider of hotel accommodations, airline tickets and packaged tours in China. Ctrip aggregates information on hotels and flights and enables customers to make informed and cost-effective hotel and flight bookings. Ctrip also sells packaged tours that include transportation and accommodation, as well as guided tours in some instances. Ctrip targets primarily business and leisure travelers in China. 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: June Zhu Ctrip.com International, Ltd. Phone: +86-21-3406-4880 x12258 Email: jun_zhu@ctrip.com Lin Zhang Ctrip.com International, Ltd. Phone: +86-21-3406-4880 x12920 Email: z_lin@ctrip.com Ctrip.com International, Ltd. Consolidated Balance Sheet Information December December December 31, 2008 31, 2009 31, 2009 RMB RMB USD (unaudited) (unaudited) (unaudited) ASSETS Current assets: Cash 1,069,827,364 1,434,618,382 210,172,781 Restricted cash 6,600,000 113,150,289 16,576,611 Short-term investment 176,585,908 180,183,917 26,397,093 Accounts receivable, net 274,302,454 420,579,005 61,615,172 Prepayments and other current assets 95,150,506 134,318,164 19,677,722 Deferred tax assets 8,840,772 23,446,059 3,434,867 Total current assets 1,631,307,004 2,306,295,816 337,874,246 Long-term deposits 145,500,002 143,195,191 20,978,214 Land use rights 111,510,231 108,922,018 15,957,166 Property, equipment and software 346,117,083 550,506,595 80,649,672 Investment 318,826,459 658,051,285 96,405,058 Goodwill 63,689,736 322,936,838 47,310,514 Intangible assets 24,498,763 66,851,954 9,793,866 Total assets 2,641,449,278 4,156,759,697 608,968,736 LIABILITIES Current liabilities: Accounts payable 138,657,593 291,045,743 42,638,442 Salary and welfare payable 65,590,151 130,539,660 19,124,168 Taxes payable 54,745,686 142,256,695 20,840,724 Advances from customers 187,576,416 276,792,049 40,550,264 Accrued liability for customer reward program 58,046,062 88,254,996 12,929,430 Other payables and accruals 121,421,617 229,652,319 33,644,255 Total current liabilities 626,037,525 1,158,541,462 169,727,283 Deferred tax liabilities, non-current -- 11,509,937 1,686,215 Other long-term payables 812,500 -- -- Total liabilities 626,850,025 1,170,051,399 171,413,498 SHAREHOLDERS' EQUITY Share capital 2,761,259 2,801,334 410,398 Additional paid-in capital 967,687,772 1,219,815,250 178,703,944 Statutory reserves 75,948,298 72,489,182 10,619,725 Accumulated other comprehensive loss (95,046,427) (77,742,443) (11,389,333) Retained Earnings 1,060,620,258 1,707,684,596 250,177,207 Total Ctrip's shareholders' equity 2,011,971,160 2,925,047,919 428,521,941 Noncontrolling interests * 2,628,093 61,660,379 9,033,297 Total shareholders' equity 2,014,599,253 2,986,708,298 437,555,238 Total liabilities and shareholders' equity 2,641,449,278 4,156,759,697 608,968,736 * It reflects implementation of ASC810 (formerly referred to as SFAS No.160, "Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No.51.") Ctrip.com International, Ltd. Consolidated Statement of Operations Information Quarter Ended Quarter Ended Quarter Ended Quarter Ended December September December December 31, 2008 30, 2009 31, 2009 31, 2009 RMB RMB RMB USD (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Hotel reservation 210,656,475 262,280,259 279,396,387 40,931,802 Air-ticketing 165,617,198 241,144,278 240,088,420 35,173,152 Packaged tour 30,249,085 54,733,097 48,974,158 7,174,755 Others 16,222,294 25,242,271 34,443,405 5,045,987 Total revenues 422,745,052 583,399,905 602,902,370 88,325,696 Less: business tax and related surcharges (26,410,272) (37,970,770) (37,188,892) (5,448,203) Net revenues 396,334,780 545,429,135 565,713,478 82,877,493 Cost of revenues (92,537,662) (124,352,706) (128,218,158) (18,784,066) Gross profit 303,797,118 421,076,429 437,495,320 64,093,427 Operating expenses: Product development * (64,126,567) (80,758,571) (88,084,277) (12,904,419) Sales and marketing * (81,462,069) (93,931,484) (97,816,552) (14,330,206) General and administrative * (41,248,253) (47,188,825) (62,342,757) (9,133,266) Total operating expenses (186,836,889) (221,878,880) (248,243,586) (36,367,891) Income from operations 116,960,229 199,197,549 189,251,734 27,725,536 Interest income 6,355,910 4,340,502 4,687,828 686,771 Other income 51,802 2,625,101 30,225,954 4,428,127 Income before income tax expense and equity income 123,367,941 206,163,152 224,165,516 32,840,434 Income tax expense (1,957,339) (26,809,547) (44,662,623) (6,543,111) Equity in income of affiliates -- 11,573,606 14,714,676 2,155,712 Net income 121,410,602 190,927,211 194,217,569 28,453,035 Less: Net income attributable to noncontrolling interests** 36,850 (2,410,490) (4,011,756) (587,726) Net income attributable to Ctrip's shareholders 121,447,452 188,516,721 190,205,813 27,865,309 Earnings per ordinary share - Basic 3.63 5.59 5.60 0.82 - Diluted 3.57 5.30 5.28 0.77 Earnings per ADS - Basic 0.91 1.40 1.40 0.21 - Diluted 0.89 1.32 1.32 0.19 Weighted average ordinary shares outstanding - Basic 33,448,570 33,703,516 33,967,802 33,967,802 - Diluted 34,032,673 35,602,373 36,025,042 36,025,042 * Share-based compensation charges included are as follows: Product development 8,588,988 7,021,263 12,319,485 1,804,815 Sales and marketing 4,769,181 3,902,164 6,896,401 1,010,328 General and administrative 19,134,797 16,043,286 30,390,027 4,452,164 ** It reflects implementation of ASC810 (formerly referred to as SFAS No.160, "Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No.51.") Ctrip.com International, Ltd. Consolidated Statement of Operations Information Year Ended Year Ended Year Ended December 31, December 31, December 31, 2008 2009 2009 RMB RMB USD (unaudited) (unaudited) (unaudited) Revenues: Hotel reservation 763,726,817 955,824,020 140,029,010 Air-ticketing 659,398,301 888,010,580 130,094,285 Packaged tour 109,244,749 177,298,953 25,974,443 Others 55,968,929 101,428,423 14,859,348 Total revenues 1,588,338,796 2,122,561,976 310,957,086 Less: business tax and related surcharges (106,334,164) (134,555,018) (19,712,421) Net revenues 1,482,004,632 1,988,006,958 291,244,665 Cost of revenues (326,610,463) (450,602,773) (66,013,679) Gross profit 1,155,394,169 1,537,404,185 225,230,986 Operating expenses: Product development * (235,800,504) (308,451,348) (45,188,378) Sales and marketing * (286,693,188) (345,289,299) (50,585,168) General and administrative * (171,693,601) (196,297,316) (28,757,719) Total operating expenses (694,187,293) (850,037,963) (124,531,265) Income from operations 461,206,876 687,366,222 100,699,721 Interest income 31,100,097 17,392,472 2,548,011 Other income 54,944,595 60,801,280 8,907,438 Income before income tax expense and equity income 547,251,568 765,559,974 112,155,170 Income tax expense (102,913,404) (131,658,085) (19,288,018) Equity in income of affiliates -- 32,869,419 4,815,397 Net income 444,338,164 666,771,308 97,682,549 Less: Net income attributable to noncontrolling interests ** (230,291) (7,797,686) (1,142,368) Net income attributable to Ctrip's shareholders 444,107,873 658,973,622 96,540,181 Earnings per ordinary share - Basic 13.32 19.62 2.87 - Diluted 12.90 18.69 2.74 Earnings per ADS - Basic 3.33 4.90 0.72 - Diluted 3.23 4.67 0.68 Weighted average ordinary shares outstanding - Basic 33,352,845 33,592,334 33,592,334 - Diluted 34,424,549 35,250,335 35,250,335 * Share-based compensation charges included are as follows: Product development 32,666,099 33,862,928 4,960,947 Sales and marketing 18,815,878 18,864,102 2,763,607 General and administrative 77,035,498 77,801,797 11,398,028 ** It reflects implementation of ASC810 (formerly referred to as SFAS No.160, "Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No.51.") Ctrip.com International, Ltd. Reconciliation of GAAP and Non-GAAP Results (In RMB, except % and per share information) Quarter Ended December 31, 2009 GAAP Result % of Share-based % of Non-GAAP % of Net Compensation Net Result Net Revenue Revenue Revenue Product development (88,084,277) 16% 12,319,485 2% (75,764,792) 13% Sales and marketing (97,816,552) 17% 6,896,401 1% (90,920,151) 16% General and administrative (62,342,757) 11% 30,390,027 5% (31,952,730) 6% Total operating expenses (248,243,586) 44% 49,605,913 9% (198,637,673) 35% Income from operations 189,251,734 33% 49,605,913 9% 238,857,647 42% Net income attributable to Ctrip's shareholders 190,205,813 34% 49,605,913 9% 239,811,726 42% Diluted earnings per ordinary share (RMB) 5.28 1.38 6.66 Diluted earnings per ADS (RMB) 1.32 0.34 1.66 Diluted earnings per ADS (USD) 0.19 0.05 0.24 Quarter Ended September 30, 2009 GAAP Result % of Share-based % of Non-GAAP % of Net Compensation Net Result Net Revenue Revenue Revenue Product development (80,758,571) 15% 7,021,263 1% (73,737,308) 14% Sales and marketing (93,931,484) 17% 3,902,164 1% (90,029,320) 17% General and administrative (47,188,825) 9% 16,043,286 3% (31,145,539) 6% Total operating expenses (221,878,880) 41% 26,966,713 5% (194,912,167) 36% Income from operations 199,197,549 37% 26,966,713 5% 226,164,262 41% Net income attributable to Ctrip's shareholders 188,516,721 35% 26,966,713 5% 215,483,434 40% Diluted earnings per ordinary share (RMB) 5.30 0.76 6.05 Diluted earnings per ADS (RMB) 1.32 0.19 1.51 Diluted earnings per ADS (USD) 0.19 0.03 0.22 Quarter Ended December 31, 2008 GAAP Result % of Share-based % of Non-GAAP % of Net Compensation Net Result Net Revenue Revenue Revenue Product development (64,126,567) 16% 8,588,988 2% (55,537,579) 14% Sales and marketing (81,462,069) 21% 4,769,181 1% (76,692,888) 19% General and administrative(41,248,253) 10% 19,134,797 5% (22,113,456) 6% Total operating expenses (186,836,889) 47% 32,492,966 8% (154,343,923) 39% Income from operations 116,960,229 30% 32,492,966 8% 149,453,195 38% Net income attributable to Ctrip's shareholders 121,447,452 31% 32,492,966 8% 153,940,418 39% Diluted earnings per ordinary share (RMB) 3.57 0.95 4.52 Diluted earnings per ADS (RMB) 0.89 0.24 1.13 Diluted earnings per ADS (USD) 0.13 0.03 0.17 Ctrip.com International, Ltd. Reconciliation of GAAP and Non-GAAP Results (In RMB, except % and per share information) Year Ended December 31, 2009 GAAP Result % of Share-based % of Non-GAAP % of Net Compensation Net Result Net Revenue Revenue Revenue Product development (308,451,348) 16% 33,862,928 2% (274,588,420) 14% Sales and marketing (345,289,299) 17% 18,864,102 1% (326,425,197) 16% General and administrative (196,297,316) 10% 77,801,797 4% (118,495,519) 6% Total operating expenses (850,037,963) 43% 130,528,827 7% (719,509,136) 36% Income from operations 687,366,222 35% 130,528,827 7% 817,895,049 41% Net income attributable to Ctrip's shareholders 658,973,622 33% 130,528,827 7% 789,502,449 40% Diluted earnings per ordinary share (RMB) 18.69 3.70 22.40 Diluted earnings per ADS (RMB) 4.67 0.93 5.60 Diluted earnings per ADS (USD) 0.68 0.14 0.82 Year Ended December 31, 2008 GAAP Result % of Share-based % of Non-GAAP % of Net Compensation Net Result Net Revenue Revenue Revenue Product development (235,800,504) 16% 32,666,099 2% (203,134,405) 14% Sales and marketing (286,693,188) 19% 18,815,878 1% (267,877,310) 18% General and Administrative (171,693,601) 12% 77,035,498 5% (94,658,103) 6% Total operating expenses (694,187,293) 47% 128,517,475 9% (565,669,818) 38% Income from operations 461,206,876 31% 128,517,475 9% 589,724,351 40% Net income attributable to Ctrip's shareholders 444,107,873 30% 128,517,475 9% 572,625,348 39% Diluted earnings per ordinary share (RMB) 12.90 3.73 16.63 Diluted earnings per ADS (RMB) 3.23 0.93 4.16 Diluted earnings per ADS (USD) 0.47 0.14 0.61 Notes for all the financial schedules presented: Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00=RMB6.8259 on December 31, 2009 published by the Federal Reserve Board. Note 2: Effective on January 21, 2010, Company changed ratio of the American Depositary Shares ("ADSs") to ordinary shares from two (2) ADSs representing one (1) ordinary shares to four (4) ADSs representing one (1) ordinary share. The change is reflected retroactively in the numbers for all the periods presented above.
Ctrip.com International, Ltd.
CONTACT: June Zhu, +86-21-3406-4880 x12258, jun_zhu@ctrip.com, or Lin
Zhang, +86-21-3406-4880 x12920, z_lin@ctrip.com, Ctrip.com International,
Ltd.
Web site: http://ir.ctrip.com/
http://www.wingontravel.com/
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