Yi Long net loss of the first quarter is 35.4 million yuan

Absrtact: Beijing time May 15 morning news, Art Dragon released today, as of March 31, the first quarter of the fiscal year 2014 without the audit earnings. Earnings show that the first quarter of the Arts Dragon's total revenue of 262.7 million yuan, compared with the same period last year, 231 million yuan growth of 14%; NET Camp

Beijing time May 15 morning news, Art Dragon released today as of March 31, the first quarter of fiscal year 2014 without the audit earnings. Earnings showed that the Arts Dragon's first quarter total revenue of 262.7 million yuan, compared with the same period last year, the 231 million yuan growth of 14%; net revenue is 246.1 million yuan (about 39.6 million U.S. dollars), and 217.4 million yuan (about 35 million US dollars) grew 13% over the same period last year. Net loss of 35.4 million yuan, the same period last year net profit of 2.8 million yuan.

According to Yahoo's financial data, 3 analysts on Wall Street expected average U.S. depository receipts (ADS) to lose $0.09 in the first quarter, according to U.S. General Accounting Standards (GAAP). Earnings showed that the Arts dragon in the first quarter of ads diluted loss of 0.16 U.S. dollars, less than analysts expected.

In addition, 6 Wall Street analysts on average expected that the art Dragon first quarter net revenue of 43.67 million U.S. dollars. Earnings showed that the first quarter of the Arts Dragon net revenue of 39.6 million U.S. dollars, less than analysts expected.

Main achievements:

-The total revenue of Art dragon in the first quarter (excluding the business tax and surcharge) was 262.7 million yuan, which grew 14% compared with the 231 million yuan of the same period last year;

-Arts Dragon First quarter net revenue (included in business tax and surcharge) for 246.1 million yuan (about 39.6 million U.S. dollars), compared with the same period last year, 217.4 million yuan (about 35 million U.S. dollars) growth of 13%;

-Art Dragon first quarter hotel booking Business Commission income of 204.8 million yuan (about 33 million U.S. dollars), compared with the same period last year, 14%, the proportion of total revenue accounted for 78%. Art Dragon 2013 first quarter Hotel reservation Business Commission income of 180.2 million yuan (about 29 million U.S. dollars), in the total revenue accounted for 78%;

-Art Dragon first quarter air ticket booking Business Commission income of 35.5 million yuan, the same period last year, the increase of 12%, the proportion of total revenue accounted for 14%. Art Dragon 2013 first quarter air ticket booking business Commission income of 31.7 million yuan, in the total revenue accounted for 14%;

-Arts dragon in the first quarter other business receipts were RMB 22.4 million, up 16% from the same period last year, and accounted for 8% of total revenue. Art Dragon in the first quarter of 2013, other business income is RMB 19.2 million, the proportion of total revenue is 8%;

-Yi Long net loss for the first quarter of 35.4 million yuan, the same period last year net profit of 2.8 million yuan;

-In the first quarter, the number of hotel rooms booked by Art Dragon was 7 million days, up 43% from 4.9 million days of the same period last year;

-the cumulative number of downloads for art Dragon Mobile applications is now more than 60 million times. Art Dragon first-quarter mobile bookings (via mobile apps and mobile optimized site bookings) accounted for more than 40% of the total hotel room days;

-As at March 31, 2014, the total cash and cash equivalents and short-term investments and restricted cash holdings of the Arts dragon were RMB 1.9 billion (about 309 million U.S. dollars), all held in renminbi form.

Financial Analysis:

Art Dragon's first quarter total revenue (excluding sales tax and surcharge) for 262.7 million yuan, compared with the same period last year, the 231 million yuan growth of 14%.

Yi Long First quarter net revenue (included in the business tax and surcharge) for 246.1 million yuan (about 39.6 million U.S. dollars), compared with the same period last year, 217.4 million yuan (about 35 million U.S. dollars) growth of 13%.

In the first quarter, the company's revenue from hotel bookings increased 14%, mainly due to the increase in the number of hotel rooms booked by the Art Dragon, but was partly offset by a decline in the average commission per hotel room. In the first quarter, the number of hotel rooms booked by Art Dragon was 7 million days, up 43% from 4.9 million days of the same period last year. Yi Long first quarter per hotel room average maid

Gold is down 21% from the same period last year, mainly because of the growth in preferential schemes and the night-time growth in hotel rooms with a lower average daily accommodation fee. The company's revenue from hotel bookings in the first quarter accounted for 78% of total revenue, flat from the same period last year.

Art Dragon in the first quarter from the airline booking business revenue growth of 12% year-on-year, mainly due to the number of tickets through the art of booking the growth, as well as the average commission per ticket growth. The first quarter through the art Dragon booked 724,000 tickets, an increase of 8%. Art Dragon in the first quarter of each ticket average commission growth of 4%, mainly due to the increase in ticket fees, and the average ticket price increase. Art Dragon in the first quarter from the airline booking business revenue in total revenue accounted for 14%, and the same period last year.

Other business revenues in the first quarter rose 16% from a year earlier. Art Dragon Other business revenue mainly from advertising and travel insurance business, its first quarter year-on-year growth mainly due to advertising and tourism insurance revenue growth. The Arts Dragon's other revenues accounted for 8% of total revenue in the first quarter, flat from the same period last year.

The first quarter of the art Dragon's gross margin was 73%, lower than the 75% of the same period last year. The growth of the art Dragon gross profit margin mainly comes from the decline of commission income per hotel guest room night.

The first quarter total operating expenditure (including service development, sales and marketing, as well as general services and administrative expenses) grew 32%. The total operating expenditure of the art dragon in the first quarter accounted for 92% of net revenue, up from 79% in the same period last year. Art Dragon first quarter operating loss of RMB 46.9 million yuan, the same period last year operating loss of 9.2 million yuan.

Service development expenditures mainly include expenditures related to technology, product supply, including web sites, platforms and other related system development expenditures, and supplier relationship functions. Art Dragon's first-quarter service development spending grew 51% per cent year-on-year, accounting for 22% per cent of net revenue, up from 17% in the same period last year. The growth of the development expenditure of the Art Dragon service is mainly due to the increase in staff expenditure.

Art Dragon's first quarter sales and marketing spending grew 21% per cent year-on-year, accounting for 55% per cent of net revenue, up from 52% in the same period last year. The growth in sales and marketing spending in the first quarter of the art Dragon was mainly due to increased online marketing spending and the growth of hotel commissions paid to affiliated institutions.

Art Dragon first quarter General affairs and administration expenditure rose 54%, the proportion of total revenue accounted for 14%, higher than the same period last year 10%. The growth of general and administrative expenditure in the first quarter was mainly due to the growth of equity incentive expenditure.

Art Dragon in the first quarter other revenues (including interest income, exchange losses and other profits/expenses) were RMB 18.3 million, while other income in the same period last year was RMB 14.6 million, mainly due to increased government subsidies and interest income, but partly offset by the exchange losses.

Yi Long First quarter income tax expenditure of 7.7 million yuan, higher than the same period last year 3.3 million yuan, mainly because of a renminbi 7.9 million yuan of deferred tax assets valuation allowance.

Yi Long net loss for the first quarter of 35.4 million yuan, the same period last year net profit of 2.8 million yuan.

Art Dragon in the first quarter of the United States depository receipts of the basic and diluted losses are 1.04 yuan (about 0.16 U.S. dollars), the same period last year, the United States depository receipts of the basic and diluted earnings are 0.08 yuan (about 0.012 U.S. dollars).

As at March 31, 2014, the total cash and cash equivalents and short-term investments and restricted cash holdings of the Arts dragon were RMB 1.9 billion (about 309 million U.S. dollars), all held in renminbi form.

Performance Outlook:

The Arts Dragon is expected to increase its net revenue in the second quarter of fiscal year 2014 (which included sales tax and surcharge) to 10% to 20% year-on-year.