Ctrip profits continue to fall executives sell shares to lay private investment

Recently, Ctrip disclosed 3721.html ">2014 in the third quarter of the year. Earnings showed net profit fell 42% Year-on-year, this is already ctrip for three consecutive quarters in the revenue still maintain a high growth rate, making net profit negative growth. Liang Jianzhang is also rare to issue an early warning of a 17% loss in the next quarter.

In this respect, Ctrip board Chairman and CEO Liang Jianzhang explained that 2014 is the investment year Ctrip, hope investors to maintain confidence.

At the same time, a number of Cheng in June-August this year, Ctrip reached a historical peak of about 66 U.S. dollars to sell the shares. Among them, Ctrip chairman and CEO Liang Jianzhang on August 12 this year a large set of RMB nearly 250 million yuan, Ctrip vice chairman and President Fan also in this year June 11 set is now exceeding 110 million yuan. Ctrip's chief strategy officer, Wu Wenjie, also sold 15000 shares of Ctrip on November 18, 2014, on the eve of the third quarter's financial release.

Ctrip's official response to a large number of managers is to use the money of senior executives to form a cruise company. Ctrip Vice Chairman and president fan and Ctrip executives, as well as the Shanghai Rock Foundation will hold 30% of the sea-Sea cruise.

But because of good performance, volume, financing channels unobstructed, Ctrip has always been a big foreign investment, especially in the past more than a year, the continuous injection of cash easy to use cars, heavy investment in the same way and cattle, share a hi car rental, buy Hua yuan Tourism, spend 3.6 billion of cruise, 3 billion buy a building. To invest billions of of Ctrip, why use the personal money of senior executives to invest in cruise companies?

The benign development of listed companies, according to the simple business logic is to mobilize corporate capital to invest in more promising projects, rather than using the money of senior executives to rebuild the "good prospects of the online tourism industry chain." Are the Ctrip executives completely losing confidence in their company, or are they using the company's resources to lay out private investment?

Into the 2014 Ctrip, net profit all the way down, a quarter of net profit fell 25%, two quarter year-on-year down 36%, three quarter year-on-year drop 42%, four quarterly deficit.

The reasons for the loss of Ctrip are: market technology input, second-tier urban expansion, new business development.

For a long time, Ctrip rely on a strong financial strength has been "do addition", committed to creating a "one-stop service." Product line covers hotels, air tickets, vacation, business travel, attractions tickets, catering, car rental, cruise tour and other fields. But when all areas of competition are white-hot, Ctrip's multiple product line, one-stop service strategy is also beginning to face a huge crisis.

Analysts believe that in the entire tourism industry chain, Ctrip Investment in a large number of new business, resulting in a decline in net profit, while carrying Cheng in which the layout of private investment, it is inevitable that investors do not mind doubts.