Form 6-K
Table of Contents

FORM 6-K

 


SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 


REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Month of May 2007

Commission File Number: 000-50483

 


CTRIP.COM INTERNATIONAL, LTD.

 


3F, Building 63-64

No. 421 Hong Cao Road

Shanghai 200233, People’s Republic of China

(Address of principal executive offices)

 


Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F         X        Form 40-F                     

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):                         

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):                         

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes                     No         X        

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

82-     N/A    

 



Table of Contents

CTRIP.COM INTERNATIONAL, LTD.

Form 6-K

TABLE OF CONTENTS

 

     Page

Signature

   3

Exhibit 99.1 – Press Release

   4

 

2


Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

CTRIP.COM INTERNATIONAL, LTD.
By:  

/s/ Jane Jie Sun

Name:   Jane Jie Sun
Title:   Chief Financial Officer

Date: May 17, 2007

 

3


Table of Contents

Exhibit 99.1

Ctrip Reports First Quarter 2007 Financial Results

Shanghai, China – May 16, 2007, Ctrip.com International, Ltd. (Nasdaq: CTRP), a leading travel service provider for hotel accommodations, airline tickets and packaged tours in China, today announced its unaudited financial results for the quarter ended March 31, 2007.

Highlights for the first quarter of 2007

 

   

Net revenues were RMB232 million (US$30 million) in the first quarter of 2007, up 49% year-on-year.

 

   

Gross margin was 79% in the first quarter of 2007, compared to 82% in the same period in 2006 largely due to higher cost of service as a result of increased revenue contribution from air ticketing and packaged tour businesses.

 

   

Income from operations was RMB71 million (US$9 million) in the first quarter of 2007. Excluding share-based compensation charges (non-GAAP), income from operations was RMB90 million (US$12 million), up 42% year-on-year.

 

   

Operating margin was 31% in the first quarter of 2007. Excluding share-based compensation charges (non-GAAP), operation margin was 39%, compared to 40% during the same period in 2006.

 

   

Net income was RMB65 million (US$8 million) in the first quarter of 2007. Excluding share-based compensation charges (non-GAAP), net income was RMB84 million (US$11 million), up 35% year-on-year.

 

   

Diluted earnings per ADS were RMB1.92 (US$0.25). Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.47 (US$0.32).

 

   

Share-based compensation charges were RMB19 million (US$2 million), accounting for 8% of the net revenues, or RMB0.55 (US$0.07) per ADS for the first quarter of 2007.

“We are very proud of an outstanding performance by our team during the first quarter of 2007,” said Min Fan, Chief Executive Officer of Ctrip. “Our continuous focus on customers, technology and processes enabled us to expand our market share and further strengthen our brand. As the overall travel market continues to grow at a rapid pace, we are committed to putting relentless efforts on our operations and delivering solid financial returns to our shareholders.”

Financial Results

For the first quarter of 2007, Ctrip reported total revenues of RMB249 million (US$32 million), representing a 49% increase from the same period in 2006 and 3% increase from the fourth quarter of 2006.

 

4


Table of Contents

Hotel reservation revenues totaled RMB133 million (US$17 million) for the first quarter of 2007, representing a 40% increase from the same period in 2006 primarily due to increased volume, and a 3% decrease from the previous quarter primarily due to a seasonally weaker first quarter as a result of reduced hotel bookings from business travelers during the Chinese New Year Holidays.

The total number of hotel room nights booked was approximately 1.92 million in the first quarter of 2007, compared to approximately 1.38 million for the same period in 2006 and approximately 1.94 million room nights in the previous quarter.

Air ticket booking revenues for the first quarter of 2007 were RMB95 million (US$12 million), representing a 64% increase from the same period in 2006 and a 9% increase from the previous quarter, primarily due to a strong growth of air tickets sales volume.

The total number of air tickets sold in the first quarter of 2007 was approximately 2.22 million, compared to approximately 1.28 million for the same period in 2006 and approximately 1.90 million in the previous quarter.

Packaged-tour revenues for the first quarter of 2007 were RMB16 million (US$2 million), up 73% from the same period in 2006 and 46% from the previous quarter due to increased leisure travels during the first quarter of 2007.

For the first quarter of 2007, net revenues were RMB232 million (US$30 million), a 49% increase from the same period in 2006. Net revenues increased 3% from the fourth quarter in 2006.

The gross margin was 79% in the first quarter of 2007, compared to 82% for the same period in 2006 and 80% in the previous quarter. This decrease was largely due to higher cost of services as a result of increased revenue contribution from air ticketing and packaged tour businesses.

Product development expenses for the first quarter of 2007 increased by 48% to RMB34 million (US$4 million) from the same period in 2006 and increased by 10% compared to the previous quarter, primarily due to the increase of product development personnel resources. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 13% of the net revenues, and remained relatively consistent with 13% in the same period last year and 12% in the previous quarter.

Sales and marketing expenses for the first quarter of 2007 increased by 40% to RMB48 million (US$6 million) from the same period in 2006, primarily due to the increase of sales and marketing personnel resources and advertisement spending. Sales and marketing expenses remained relatively consistent with the previous quarter. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 20% of the net revenues, slightly lower than 21% in the same period last year and the previous quarter.

General and administrative expenses for the first quarter of 2007 increased by 47% to RMB30 million (US$4 million) from the same period in 2006 and increased by 20% from the previous quarter, primarily due to the increase of personnel resources and the incurrence of RMB11 million (US$1 million) for share-based compensation charges. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for

 

5


Table of Contents

8% of the net revenues, remained relatively consistent with 8% for both the same period last year and the previous quarter.

Income from operations for the first quarter of 2007 was RMB71 million (US$9 million). Excluding share-based compensation charges (non-GAAP), income from operations was RMB90 million (US$12 million), increased 42% from the same period in 2006, and 1% from the previous quarter.

Operating margin was 31% in the first quarter of 2007. Excluding share-based compensation charges (non-GAAP), operating margin was 39% compared to 40% in the first quarter of 2006 and 39% in the previous quarter.

Net income for the first quarter of 2007 was RMB65 million (US$8 million). Excluding share-based compensation charges (non-GAAP), net income was RMB84 million (US$11 million), representing a 35% increase from the same period in 2006 and a 3% increase from the previous quarter, mainly due to higher income from operations.

The diluted earnings per ADS were RMB1.92 (US$0.25). Excluding share-based compensation charges (non-GAAP), the diluted earnings per ADS were RMB2.47 (US$0.32) for the first quarter of 2007.

As of March 31, 2007, the cash balance increased to RMB866 million (US$112 million), compared to RMB851 million as of December 31, 2006.

Business Outlook

For the second quarter of 2007, Ctrip expects to continue strong year-on-year net revenue growth of approximately 35%.

Note to Financial Information

Certain prior year amounts have been reclassified with no effect on net income or retained earnings to conform to the 2007 financial information presentation.

Disclosure of Home Country Practice

Ctrip followed home country practice with respect to distribution of annual reports in 2006 and 2007. We have posted our annual reports on http://ir.ctrip.com and sent our shareholders a written notice containing the website address for our annual reports and informing them that upon receipt of request from any of our shareholders, we would deliver a hard copy of the annual report to such shareholder.

Conference Call

Ctrip’s management team will host a conference call at 9:00PM Eastern Time on May 16, 2007 (or 9:00AM on May 17, 2007 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 12 months at this website.

 

6


Table of Contents

The dial-in details for the live conference call: U.S. Toll Free Number +1-866-271-0675, International dial-in number +1-617-213-8892; Passcode 26924627.

A telephone replay of the call will be available after the conclusion of the conference call through May 23, 2007. 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 51179074.

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 "will," "expect," "anticipate," "future," "intend," "plan," "believe" "estimate," and "confident" and similar statements. Among other things, quotations from management and 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, a slow-down of economic growth, declines or disruptions in the travel industry, volatility in the trading price of Ctrip’s ADSs, Ctrip’s reliance on the relationships with travel suppliers and strategic alliances, failure to further increase brand recognition to obtain new business partners and consumers, failure to attract, train and retain key individuals and employees, failure to compete against new and existing competitors, Ctrip’s limited operating history, fluctuations in quarterly operating results, damage to infrastructure and technology, loss of services of key executives, PRC laws and regulations governing internet content providers in China 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 May 16, 2007, 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, net income, and diluted earnings per share, each of which is adjusted from the most comparable GAAP results to exclude the share-based compensation charges recorded under Statement of Financial Accounting Standard 123R, “Share-Based Payment”, for 2007 and 2006. Ctrip’s management believes the non-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and provides the management better capability to plan and forecast future periods.

 

7


Table of Contents

The non-GAAP information is not 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 the GAAP results. A limitation of using these non-GAAP financial measures is that these 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 measures to consolidated statement of operations information 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 targets primarily business and leisure travelers in China who do not travel in group. These travelers form a traditionally under-served yet fast-growing segment of the China travel industry. Since its inception in 1999, Ctrip has experienced substantial growth and become one of the best-known travel brands in China.

For Further Information

Tracy Cui

Ctrip.com International, Ltd.

Tel: (+86) 21 3406 4880 X 12216

Email: jrcui@ctrip.com

 

8


Table of Contents

Ctrip.com International, Ltd.

Consolidated Balance Sheet Information

 

     December 31, 2006
RMB
    March 31, 2007
RMB
    March 31, 2007
USD
 
     (unaudited)     (unaudited)     (unaudited)  

ASSETS

      

Current assets:

      

Cash

   844,392,604     858,988,037     111,221,778  

Restricted cash

   6,600,000     6,600,000     854,568  

Accounts receivable

   137,617,717     198,661,781     25,722,729  

Prepayments and other current assets

   61,940,791     54,894,800     7,107,779  

Deferred tax assets

   2,916,151     3,689,229     477,682  

Total current assets

   1,053,467,263     1,122,833,847     145,384,536  

Long-term deposits

   80,174,984     94,005,317     12,171,809  

Land use rights

   66,449,208     66,107,859     8,559,646  

Property, equipment and software

   153,690,484     192,346,854     24,905,072  

Investment

   80,416,250     80,416,250     10,412,297  

Goodwill

   14,595,849     14,595,849     1,889,871  

Other long-term assets

   3,058,465     3,023,551     391,489  

Total assets

   1,451,852,503     1,573,329,527     203,714,720  

LIABILITIES

      

Current liabilities:

      

Accounts payable

   151,408,198     210,531,389     27,259,606  

Salary and welfare payable

   32,778,110     27,741,442     3,591,962  

Taxes payable

   34,913,392     35,714,990     4,624,377  

Advances from customers

   38,178,866     36,925,547     4,781,120  

Provisions for customer reward program

   29,566,712     32,568,828     4,217,012  

Dividend payable

   72,169,155     72,169,155     9,344,463  

Other payables and accruals

   62,030,840     38,939,964     5,041,947  

Total current liabilities

   421,045,273     454,591,315     58,860,487  

Other long-term payables

   2,437,500     1,625,000     210,405  

Total liabilities

   423,482,773     456,216,315     59,070,892  

Minority interests

   672,780     679,532     87,986  

SHAREHOLDERS’ EQUITY

      

Share capital

   2,700,889     2,708,349     350,677  

Additional paid-in capital

   627,461,168     654,577,662     84,754,721  

Statutory reserves

   53,787,911     53,787,911     6,964,459  

Cumulative translation adjustments

   (16,099,263 )   (19,408,858 )   (2,513,059 )

Retained Earnings

   359,846,245     424,768,616     54,999,044  

Total shareholders’ equity

   1,027,696,950     1,116,433,680     144,555,842  

Total liabilities and shareholders’ equity

   1,451,852,503     1,573,329,527     203,714,720  


Table of Contents

Ctrip.com International, Ltd.

Consolidated Statement of Operations Information

 

     Quarter Ended
March 31, 2006
RMB
    Quarter Ended
December 31, 2006
RMB
    Quarter Ended
March 31, 2007
RMB
    Quarter Ended
March 31, 2007
USD
 
     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Revenues:

        

Hotel reservation

   95,629,719     137,823,641     133,468,270     17,281,473  

Air-ticketing

   57,654,891     86,756,060     94,616,770     12,250,980  

Packaged tour

   9,265,058     10,962,257     15,996,277     2,071,198  

Others

   4,713,007     6,130,331     5,100,040     660,353  

Total revenues

   167,262,675     241,672,289     249,181,357     32,264,004  

Less: business tax and related surcharges

   (11,233,882 )   (15,920,282 )   (16,965,212 )   (2,196,656 )

Net revenues

   156,028,793     225,752,007     232,216,145     30,067,348  

Cost of services

   (28,164,948 )   (45,769,174 )   (48,559,779 )   (6,287,520 )

Gross profit

   127,863,845     179,982,833     183,656,366     23,779,828  

Operating expenses:

        

Product development *

   (22,985,588 )   (31,013,066 )   (34,017,541 )   (4,404,591 )

Sales and marketing *

   (34,515,120 )   (48,731,350 )   (48,394,455 )   (6,266,115 )

General and administrative *

   (20,514,717 )   (25,210,001 )   (30,166,714 )   (3,905,986 )

Total operating expenses

   (78,015,425 )   (104,954,417 )   (112,578,710 )   (14,576,692 )

Income from operations

   49,848,420     75,028,416     71,077,656     9,203,136  

Interest income

   4,278,327     3,109,720     3,266,557     422,954  

Other income/(expense)

   2,742,851     (270,934 )   2,834,202     366,972  

Income before income tax expense and minority interest

   56,869,598     77,867,202     77,178,415     9,993,062  

Income tax expense

   (8,504,297 )   (10,896,122 )   (12,249,292 )   (1,586,039 )

Minority interests

   42,267     (59,509 )   (6,752 )   (874 )

Net income

   48,407,568     66,911,571     64,922,371     8,406,149  

Earnings per share

        

- Basic

   1.51     2.06     1.99     0.26  

- Diluted

   1.48     2.00     1.92     0.25  

Weighted average shares outstanding

        

- Basic

   32,067,925     32,550,390     32,669,661     32,669,661  

- Diluted

   32,815,598     33,521,665     33,742,356     33,742,356  

*  Share-based compensation charges included are as follows:

        

Product development

   3,176,702     3,614,395     4,844,239     627,232  

Sales and marketing

   1,978,929     2,284,821     2,971,775     384,785  

General and administrative

   8,138,835     7,962,338     10,772,464     1,394,819  


Table of Contents

Ctrip.com International, Ltd.

Reconciliation of GAAP and Non-GAAP Results

(In RMB, except % and per share information)

 

     Quarter Ended March 31, 2007  
     GAAP Result     % of Net
Revenue
    Share-based
Compensation
   % of Net
Revenue
    Non-GAAP
Result
    % of Net
Revenue
 

Product development

   (34,017,541 )   15 %   4,844,239    2 %   (29,173,302 )   13 %

Sales and marketing

   (48,394,455 )   21 %   2,971,775    1 %   (45,422,680 )   20 %

General and administrative

   (30,166,714 )   13 %   10,772,464    5 %   (19,394,250 )   8 %
                       

Total operating expenses

   (112,578,710 )   48 %   18,588,478    8 %   (93,990,232 )   40 %

Income from operations

   71,077,656     31 %   18,588,478    8 %   89,666,134     39 %

Net income

   64,922,371     28 %   18,588,478    8 %   83,510,849     36 %

Diluted earnings per share (RMB)

   1.92       0.55      2.47    

Diluted earnings per share (USD)

   0.25       0.07      0.32    
     Quarter Ended December 31, 2006  
     GAAP Result     % of Net
Revenue
    Share-based
Compensation
   % of Net
Revenue
    Non-GAAP
Result
    % of Net
Revenue
 

Product development

   (31,013,066 )   14 %   3,614,395    2 %   (27,398,671 )   12 %

Sales and marketing

   (48,731,350 )   22 %   2,284,821    1 %   (46,446,529 )   21 %

General and administrative

   (25,210,001 )   11 %   7,962,338    4 %   (17,247,663 )   8 %
                       

Total operating expenses

   (104,954,417 )   46 %   13,861,554    6 %   (91,092,863 )   40 %

Income from operations

   75,028,416     33 %   13,861,554    6 %   88,889,970     39 %

Net income

   66,911,571     30 %   13,861,554    6 %   80,773,125     36 %

Diluted earnings per share (RMB)

   2.00       0.41      2.41    

Diluted earnings per share (USD)

   0.26       0.05      0.31    
     Quarter Ended March 31, 2006  
     GAAP Result     % of Net
Revenue
    Share-based
Compensation
   % of Net
Revenue
    Non-GAAP
Result
    % of Net
Revenue
 

Product development

   (22,985,588 )   15 %   3,176,702    2 %   (19,808,886 )   13 %

Sales and marketing

   (34,515,120 )   22 %   1,978,929    1 %   (32,536,191 )   21 %

General and administrative

   (20,514,717 )   13 %   8,138,835    5 %   (12,375,882 )   8 %
                       

Total operating expenses

   (78,015,425 )   50 %   13,294,466    9 %   (64,720,959 )   41 %

Income from operations

   49,848,420     32 %   13,294,466    9 %   63,142,886     40 %

Net income

   48,407,568     31 %   13,294,466    9 %   61,702,034     40 %

Diluted earnings per share (RMB)

   1.48       0.41      1.88    

Diluted earnings per share (USD)

   0.18       0.05      0.23    

Notes for all the financial schedules presented:

Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the noon buying rate of USD1.00=RMB7.7232 on March 31, 2007 in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York.
Note 2: Certain prior year amounts have been reclassified with no effect on net income or retained earnings to conform to the 2007 financial information presentation.