UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2012

 

 

Commission File Number: 001-33853

 

 

CTRIP.COM INTERNATIONAL, LTD.

99 Fu Quan Road

Shanghai 200335, People’s Republic of China

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of 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):  ¨

 

 

 

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SIGNATURES

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.

 

Date: February 21, 2012

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EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Press release regarding Ctrip’s fourth quarter and full year 2011 financial results

Exhibit 99.1

Ctrip Reports Fourth Quarter and Full Year 2011 Financial Results

Shanghai, China, February 20, 2012—Ctrip.com International, Ltd. (Nasdaq: CTRP), a leading travel service provider of hotel accommodations, airline tickets, 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, 2011.

Highlights for the Fourth Quarter of 2011

 

•

Net revenues were RMB926 million (US$147 million) for the fourth quarter of 2011, up 18% year-on-year.

 

•

Gross margin was 76% for the fourth quarter of 2011, compared to 78% in the same period in 2010.

 

•

Income from operations was RMB231 million (US$37 million) for the fourth quarter of 2011, down 21% year-on-year. Excluding share-based compensation charges (non-GAAP), income from operations was RMB325 million (US$52 million), down 8% year-on-year.

 

•

Operating margin was 25% for the fourth quarter of 2011, compared to 37% in the same period in 2010. Excluding share-based compensation charges (non-GAAP), operating margin was 35%, compared to 45% in the same period in 2010.

 

•

Net income attributable to Ctrip’s shareholders was RMB253 million (US$40 million) in the fourth quarter of 2011, down 16% year-on-year. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip’s shareholders was RMB347 million (US$55 million), down 4% year-on-year.

 

•

Diluted earnings per ADS were RMB1.67 (US$0.27) for the fourth quarter of 2011. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.30 (US$0.37) for the fourth quarter of 2011.

 

•

Share-based compensation charges were RMB95 million (US$15 million), accounting for 10% of the net revenues, or RMB0.63 (US$0.10) per ADS for the fourth quarter of 2011.

Highlights for the Full Year 2011

 

•

Net revenues were RMB3.5 billion (US$556 million) in 2011, up 21% from 2010. In 2011, Wing On Travel and ezTravel contributed 1% for the year-on-year growth for net revenues.

 

•

Gross margin was 77% in 2011, compared to 78% in 2010.

 

•

Income from operations was RMB1.1 billion (US$169 million) in 2011, up 1% from 2010. Excluding share-based compensation charges (non-GAAP), income from operations was RMB1.4 billion (US$224 million) in 2011, up 9% from 2010.

 

•

Operating margin was 30% in 2011, compared to 37% in 2010. Excluding share-based compensation charges (non-GAAP), operating margin was 40%, compared to 45% in 2010.

 

•

Net income attributable to Ctrip’s shareholders was RMB1.1 billion (US$171 million) in 2011, up 3% from 2010. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip’s shareholders was RMB1.4 billion (US$225 million), up 10% from 2010.

 

•

Diluted earnings per ADS were RMB7.08 (US$1.12) in 2011, compared to RMB6.97 (US$1.06) in 2010. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB9.33 (US$1.48), compared to RMB8.59 (US$1.30) in 2010.

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•

Share-based compensation charges were RMB343 million (US$54 million), accounting for 10% of the net revenues, or RMB2.25 (US$0.36) per ADS in 2011.

“Despite a high 2010 comparison base, the Ctrip team delivered solid results in 2011. We increased our sales and marketing investment to further penetrate the leisure market during the fourth quarter,” said Min Fan, President and Chief Executive Officer of Ctrip. “In 2012, Ctrip will invest further to enhance the competitive edge of each business line in order to offer the best product with the best service at the best price. Ctrip will work tirelessly to strengthen our leadership of the travel industry and rise far beyond the competition.”

Recent Development

In September 2011, Ctrip announced a plan to execute up to US$15 million share repurchase program approved by board of directors and shareholders in 2008. In September 2011, Ctrip announced a new share repurchase program up to US$100 million approved by board of directors. In the fourth quarter of 2011, Ctrip purchased approximately 1 million ADSs with a total consideration of US$25 million from open market under these two plans.

To support future business expansion, Ctrip acquired the land use right to a piece of land in Chengdu, Sichuan province in November 2011. Ctrip plans to build its regional head office in Sichuan province, which is enjoying a robust increase in tourism and offers plentiful labor resources. In addition, in December 2011, Ctrip entered into an agreement to acquire an office building in Shanghai to expand headquarter in order to satisfy increasing travel demands from the Shanghai traffic hub. The forecast for the two projects is approximately RMB700 million.

In February 2012, Ctrip entered into an agreement to purchase the remaining 10% of share capital of Wing On Travel, at a consideration of US$9 million. Upon completion of this share purchase, Ctrip will hold 100% of the share capital of Wing On Travel.

Fourth Quarter and Full Year 2011 Financial Results

For the fourth quarter of 2011, Ctrip reported total revenues of RMB987 million (US$157 million), representing an 18% increase from the same period in 2010. Total revenues for the fourth quarter of 2011 decreased by 5% from the previous quarter primarily due to seasonality.

For the full year ended December 31, 2011, total revenues were RMB3.7 billion (US$592 million), representing a 22% increase from 2010.

Hotel reservation revenues amounted to RMB400 million (US$63 million) for the fourth quarter of 2011, representing an 11% increase year-on-year primarily driven by an increase in hotel reservation volume year-on-year. Hotel reservation revenues decreased 3% quarter-on-quarter.

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For the full year ended December 31, 2011, hotel reservation revenues were RMB1.5 billion (US$236 million), representing a 16% increase from 2010. The hotel reservation revenues accounted for 40% of the total revenues in 2011, compared to 42% in 2010.

Air ticket booking revenues for the fourth quarter of 2011 were RMB378 million (US$60 million), representing an 18% increase year-on-year, primarily driven by an increase in air ticketing sales volume. Air ticket booking revenues decreased 2% quarter-on-quarter.

For the full year ended December 31, 2011, air ticket booking revenues were RMB1.4 billion (US$228 million), representing a 19% increase from 2010. The air ticket booking revenues accounted for 39% of the total revenues in 2011 and remained consistent with that in 2010.

Packaged-tour revenues for the fourth quarter of 2011 were RMB130 million (US$21 million), representing a 29% increase year-on-year due to the increase of leisure travel volume. Packaged-tour revenues decreased 24% quarter-on-quarter, primarily due to seasonality.

For the full year ended December 31, 2011, packaged tour revenues were RMB535 million (US$85 million), representing a 41% increase from 2010. Wing On Travel and ezTravel contributed 3% for the year-on-year growth for packaged-tour revenues. The packaged tour revenues accounted for 14% of the total revenues in 2011, compared to 12% in 2010.

Corporate travel revenues for the fourth quarter of 2011 were RMB47 million (US$8 million), representing a 32% 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, 2011, corporate travel revenues were RMB162 million (US$26 million), representing a 25% increase from 2010. The corporate travel revenues accounted for 4% of the total revenues in 2011, remaining consistent with that in 2010.

For the fourth quarter of 2011, net revenues were RMB926 million (US$147 million), representing an 18% increase from the same period in 2010. Net revenues for the fourth quarter of 2011 decreased by 5% from the previous quarter due to seasonality.

For the full year ended December 31, 2011, net revenues were RMB3.5 billion (US$556 million), representing a 21% increase from 2010. In 2011, Wing On Travel and ezTravel contributed 1% for the year-on-year growth for net revenues.

Gross margin was 76% in the fourth quarter of 2011, compared to 78% in the same period in 2010 and 77% in the previous quarter.

For the full year ended December 31, 2011, gross margin was 77%, compared to 78% in 2010.

Product development expenses for the fourth quarter of 2011 increased by 43% to RMB173 million (US$27 million) from the same period in 2010 and increased by 7% from the previous quarter, primarily due to an increase in product development personnel and share-based compensation charges. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 16% of the net revenues, increased from 13% in the same period in 2010 and increased from 14% in the previous quarter.

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For the full year ended December 31, 2011, product development expenses were RMB601 million (US$96 million), representing an increase of 33% from 2010. Excluding share-based compensation charges (non-GAAP), product development expenses accounted for 14% of the net revenues, remaining consistent with those in 2010.

Sales and marketing expenses for the fourth quarter of 2011 increased by 45% to RMB185 million (US$29 million) from the same period in 2010, primarily due to an increase in sales and marketing related activities and an increase in sales and marketing personnel. Sales and marketing expenses for the fourth quarter of 2011 increased 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 19% of the net revenues, increased from 15% in the same period in 2010 and increased from 17% in the previous quarter.

For the full year ended December 31, 2011, sales and marketing expenses were RMB625 million (US$99 million), representing an increase of 38% from 2010. Excluding share-based compensation charges (non-GAAP), sales and marketing expenses accounted for 16% of the net revenues, increasing from 15% in 2010.

General and administrative expenses for the fourth quarter of 2011 increased by 46% to RMB113 million (US$18 million) from the same period in 2010, primarily due to an increase in administrative personnel and share-based compensation charges. General and administrative expenses for the fourth quarter of 2011 increased by 4% from the previous quarter, primarily due to the increase in administrative personnel. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 6% of the net revenues, increased from 5% in the same period in 2010 and remained consistent with that in the previous quarter.

For the full year ended December 31, 2011, general and administrative expenses were RMB401 million (US$64 million), representing a 36% increase from 2010. Excluding share-based compensation charges (non-GAAP), general and administrative expenses accounted for 6% of the net revenues, increasing from 5% in 2010.

Income from operations for the fourth quarter of 2011 was RMB231 million (US$37 million), representing a decrease of 21% from the same period in 2010 and a decrease of 24% from the previous quarter. Excluding share-based compensation charges (non-GAAP), income from operations was RMB325 million (US$52 million), representing a decrease of 8% from the same period in 2010 and a decrease of 18% from the previous quarter.

For the full year ended December 31, 2011, income from operations was RMB1.1 billion (US$169 million), representing an increase of 1% from 2010. Excluding share-based compensation charges (non-GAAP), income from operations was RMB1.4 billion (US$224 million), increasing by 9% from 2010.

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Operating margin was 25% in the fourth quarter of 2011, compared to 37% in the same period in 2010, and 31% in the previous quarter. Excluding share-based compensation charges (non-GAAP), operating margin was 35%, decreased from 45% in the same period in 2010 and 41% in the previous quarter.

For the full year ended December 31, 2011, operating margin was 30%, compared to 37% in 2010. Excluding share-based compensation charges (non-GAAP), operating margin was 40%, compared to 45% in 2010.

The effective tax rate for the fourth quarter of 2011 was 23%, increased from 19% in the same periods of 2010 and increased from 21% 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, 2011 was 20%, compared to 17% in 2010, primarily due to the increase in the amount of non tax-deductible share-based compensation as a percentage to our income as a whole.

Net income attributable to Ctrip’s shareholders for the fourth quarter of 2011 was RMB253 million (US$40 million), representing a decrease of 16% from the same period in 2010 and a decrease of 22% from the previous quarter. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip’s shareholders was RMB347 million (US$55 million), representing a decrease of 4% from the same period in 2010 and a decrease of 16% from the previous quarter.

For the full year ended December 31, 2011, net income attributable to Ctrip’s shareholders was RMB1.1 billion (US$171 million), representing an increase of 3% from 2010. Excluding share-based compensation charges (non-GAAP), net income attributable to Ctrip’s shareholders was RMB1.4 billion (US$225 million), representing an increase of 10% from 2010.

Diluted earnings per ADS were RMB1.67 (US$0.27) for the fourth quarter of 2011. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB2.30 (US$0.37) for the fourth quarter of 2011.

For the full year ended December 31, 2011, diluted earnings per ADS were RMB7.08 (US$1.12), compared to RMB6.97 (US$1.06) in 2010. Excluding share-based compensation charges (non-GAAP), diluted earnings per ADS were RMB9.33 (US$1.48), compared to RMB8.59 (US$1.30) in 2010.

As of December 31, 2011, the balance of cash and cash equivalents, restricted cash and short-term investment was RMB5 billion (US$795 million).

Business Outlook

For the first quarter of 2012, the Company expects to continue the net revenue growth year-on-year at a rate of approximately 15-20%. This forecast reflects Ctrip’s current and preliminary view, which is subject to change.

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Conference Call

Ctrip’s management team will host a conference call at 8:00PM U.S. Eastern Time on February 20, 2012 (or 9:00AM on February 21, 2012 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 one 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 35702165. For pre-registration, please click https://www.theconferencingservice.com/prereg/key.process?key=PU86WQLTK.

A telephone replay of the call will be available after the conclusion of the conference call through February 28, 2012. 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 29982010.

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 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, 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 the date of the issuance, and Ctrip does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

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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 ASC 718, “Stock Compensation” for 2011 and 2010. 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, airline tickets, packaged tours, and corporate travel management in China. Ctrip aggregates hotel and flight information to enable business and leisure travelers to make informed and cost-effective bookings. Ctrip also books 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 12258

Email: iremail@ctrip.com

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Ctrip.com International, Ltd.

Consolidated Balance Sheets Information

 

			September 30,				September 30,				September 30,
		December 31, 2010				December 31, 2011				December 31, 2011
		RMB				RMB				USD
		(unaudited)				(unaudited)				(unaudited)
ASSETS
Current assets:
Cash and cash equivalents			2,153,935,111				3,503,428,418				556,638,717
Restricted cash			224,179,126				211,636,294				33,625,621
Short-term investment			1,178,278,063				1,288,471,562				204,717,514
Accounts receivable, net			621,548,849				789,036,329				125,365,247
Prepayments and other current assets			355,831,117				566,187,711				89,958,168
Deferred tax assets, current			37,136,184				39,782,201				6,320,755
Total current assets			4,570,908,450				6,398,542,515				1,016,626,022
Long-term deposits			155,856,622				155,360,492				24,684,296
Land use rights			106,333,805				113,460,899				18,027,121
Property, equipment and software			653,678,980				683,903,870				108,661,382
Investment			1,574,230,623				1,305,145,043				207,366,663
Goodwill			758,231,441				798,601,767				126,885,042
Intangible assets			296,964,092				306,420,192				48,685,265
Total assets			8,116,204,013				9,761,434,778				1,550,935,791
LIABILITIES
Current liabilities:
Accounts payable			595,283,281				763,256,074				121,269,177
Salary and welfare payable			159,258,508				145,524,036				23,121,441
Taxes payable			161,772,241				220,604,123				35,050,465
Advances from customers			595,737,152				1,090,852,066				173,318,938
Accrued liability for customer reward program			121,319,301				161,838,531				25,713,553
Other payables and accruals			247,528,032				185,985,423				29,550,107
Total current liabilities			1,880,898,515				2,568,060,253				408,023,681
Deferred tax liabilities, non-current			45,382,710				48,308,692				7,675,478
Total liabilities			1,926,281,225				2,616,368,945				415,699,159
SHAREHOLDERS’ EQUITY
Share capital			2,926,132				2,939,527				467,044
Additional paid-in capital			3,073,551,037				3,465,924,424				550,679,932
Statutory reserves			93,384,908				98,049,668				15,578,523
Accumulated other comprehensive (loss) / income			198,972,084				(172,466,277	)			(27,402,132	)
Retained Earnings			2,734,858,610				3,806,608,747				604,809,220
Treasury stock *			—				(158,761,225	)			(25,224,618	)
Total Ctrip’s shareholders’ equity			6,103,692,771				7,042,294,864				1,118,907,969
Noncontrolling interests			86,230,017				102,770,969				16,328,663
Total shareholders’ equity			6,189,922,788				7,145,065,833				1,135,236,632
Total liabilities and shareholders’ equity			8,116,204,013				9,761,434,778				1,550,935,791

 

*	Treasury stock consists of shares repurchased by Ctrip that are no longer outstanding and are held by Ctrip. Treasury stock is accounted for under the cost method.

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Ctrip.com International, Ltd.

Consolidated Statements of Operations Information

 

			September 30,				September 30,				September 30,				September 30,
		Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
		December 31, 2010				September 30, 2011				December 31, 2011				December 31, 2011
		RMB				RMB				RMB				USD
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Revenues:
Hotel reservation			360,325,329				410,428,429				399,622,781				63,493,665
Air-ticketing			319,728,612				385,068,223				378,235,877				60,095,629
Packaged tour			100,625,182				171,367,702				130,155,486				20,679,624
Corporate travel			35,786,154				43,367,133				47,237,358				7,505,260
Others			18,672,214				28,982,115				31,344,006				4,980,061
Total revenues			835,137,491				1,039,213,602				986,595,508				156,754,239
Less: business tax and related surcharges			(48,010,960	)			(64,512,791	)			(60,762,409	)			(9,654,175	)
Net revenues			787,126,531				974,700,811				925,833,099				147,100,064
Cost of revenues			(169,529,242	)			(226,126,062	)			(224,533,043	)			(35,674,708	)
Gross profit			617,597,289				748,574,749				701,300,056				111,425,356
Operating expenses:
Product development *			(120,637,434	)			(161,579,311	)			(172,796,077	)			(27,454,532	)
Sales and marketing *			(126,969,302	)			(173,855,350	)			(184,658,424	)			(29,339,269	)
General and administrative *			(77,706,831	)			(108,847,827	)			(113,264,071	)			(17,995,849	)
Total operating expenses			(325,313,567	)			(444,282,488	)			(470,718,572	)			(74,789,650	)
Income from operations			292,283,722				304,292,261				230,581,484				36,635,706
Interest income			13,526,761				31,233,511				32,710,259				5,197,137
Other income			38,217,360				54,347,195				32,831,890				5,216,462
Income before income tax expense and equity in income			344,027,843				389,872,967				296,123,633				47,049,305
Income tax expense			(66,126,123	)			(82,055,004	)			(69,327,999	)			(11,015,110	)
Equity in income of affiliates			24,521,408				20,372,237				27,675,601				4,397,210
Net income			302,423,128				328,190,200				254,471,235				40,431,405
Less: Net income attributable to noncontrolling interests			(149,393	)			(2,909,902	)			(1,947,341	)			(309,401	)
Net income attributable to Ctrip’s shareholders			302,273,735				325,280,298				252,523,894				40,122,004
Earnings per ordinary share
- Basic			8.43				9.02				7.01				1.11
- Diluted			7.91				8.54				6.70				1.06
Earnings per ADS
- Basic			2.11				2.26				1.75				0.28
- Diluted			1.98				2.13				1.67				0.27
Weighted average ordinary shares outstanding
- Basic			35,874,508				36,049,244				36,003,255				36,003,255
- Diluted			38,222,581				38,102,980				37,713,249				37,713,249
* Share-based compensation charges included are as follows:
Product development			16,695,524				26,713,733				28,161,520				4,474,415
Sales and marketing			8,158,262				12,693,885				13,336,213				2,118,911
General and administrative			35,015,075				51,099,151				53,218,496				8,455,567

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Ctrip.com International, Ltd.

Consolidated Statement of Operations Information

 

			September 30,				September 30,				September 30,
		Year Ended				Year Ended				Year Ended
		December 31, 2010				December 31, 2011				December 31, 2011
		RMB				RMB				USD
		(unaudited)				(unaudited)				(unaudited)
Revenues:
Hotel reservation			1,278,043,673				1,486,898,858				236,244,436
Air-ticketing			1,206,921,479				1,437,118,164				228,335,081
Packaged tour			380,307,487				534,640,183				84,945,770
Corporate travel			129,658,427				161,610,123				25,677,263
Others			71,781,955				106,036,864				16,847,561
Total revenues			3,066,713,021				3,726,304,192				592,050,111
Less: business tax and related surcharges			(185,479,524	)			(228,219,564	)			(36,260,437	)
Net revenues			2,881,233,497				3,498,084,628				555,789,674
Cost of revenues			(625,261,342	)			(805,129,784	)			(127,922,240	)
Gross profit			2,255,972,155				2,692,954,844				427,867,434
Operating expenses:
Product development *			(453,853,000	)			(601,485,367	)			(95,566,400	)
Sales and marketing *			(453,292,701	)			(624,599,686	)			(99,238,896	)
General and administrative *			(294,701,167	)			(400,875,621	)			(63,692,722	)
Total operating expenses			(1,201,846,868	)			(1,626,960,674	)			(258,498,018	)
Income from operations			1,054,125,287				1,065,994,170				169,369,416
Interest income			37,585,865				106,002,655				16,842,126
Other income			99,125,516				117,623,725				18,688,528
Income before income tax expense and equity in income			1,190,836,668				1,289,620,550				204,900,070
Income tax expense			(205,016,961	)			(262,186,225	)			(41,657,196	)
Equity in income of affiliates			66,171,992				57,525,830				9,139,934
Net income			1,051,991,699				1,084,960,155				172,382,808
Less: Net income attributable to noncontrolling interests			(3,921,959	)			(8,545,258	)			(1,357,705	)
Net income attributable to Ctrip’s shareholders			1,048,069,740				1,076,414,897				171,025,103
Earnings per ordinary share
- Basic			29.62				29.92				4.75
- Diluted			27.89				28.30				4.50
Earnings per ADS
- Basic			7.40				7.48				1.19
- Diluted			6.97				7.08				1.12
Weighted average ordinary shares outstanding
- Basic			35,385,451				35,977,063				35,977,063
- Diluted			37,577,056				38,030,974				38,030,974
* Share-based compensation charges included are as follows:
Product development			64,254,080				98,955,335				15,722,419
Sales and marketing			33,202,984				48,191,019				7,656,782
General and administrative			145,104,394				195,645,003				31,084,860

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Ctrip.com International, Ltd.

Reconciliation of GAAP and Non-GAAP Results

(In RMB, except % and per share information)

 

			September 30,				September 30,				September 30,				September 30,				September 30,				September 30,
		Quarter Ended December 31, 2011
		GAAP Result				% of Net Revenue				Share-based Compensation				% of Net Revenue				Non-GAAP Result				% of Net Revenue
Product development			(172,796,077	)			19	%			28,161,520				3	%			(144,634,557	)			16	%
Sales and marketing			(184,658,424	)			20	%			13,336,213				1	%			(171,322,211	)			19	%
General and administrative			(113,264,071	)			12	%			53,218,496				6	%			(60,045,575	)			6	%
Total operating expenses			(470,718,572	)			51	%			94,716,229				10	%			(376,002,343	)			41	%
Income from operations			230,581,484				25	%			94,716,229				10	%			325,297,713				35	%
Net income attributable to Ctrip’s shareholders			252,523,894				27	%			94,716,229				10	%			347,240,123				38	%
Diluted earnings per ordinary share (RMB)			6.70								2.51								9.21
Diluted earnings per ADS (RMB)			1.67								0.63								2.30
Diluted earnings per ADS (USD)			0.27								0.10								0.37
		Quarter Ended September 30, 2011
		GAAP Result				% of Net Revenue				Share-based Compensation				% of Net Revenue				Non-GAAP Result				% of Net Revenue
Product development			(161,579,311	)			17	%			26,713,733				3	%			(134,865,578	)			14	%
Sales and marketing			(173,855,350	)			18	%			12,693,885				1	%			(161,161,465	)			17	%
General and administrative			(108,847,827	)			11	%			51,099,151				5	%			(57,748,676	)			6	%
Total operating expenses			(444,282,488	)			46	%			90,506,769				9	%			(353,775,719	)			36	%
Income from operations			304,292,261				31	%			90,506,769				9	%			394,799,030				41	%
Net income attributable to Ctrip’s shareholders			325,280,298				33	%			90,506,769				9	%			415,787,067				43	%
Diluted earnings per ordinary share (RMB)			8.54								2.38								10.91
Diluted earnings per ADS (RMB)			2.13								0.59								2.73
Diluted earnings per ADS (USD)			0.33								0.09								0.43
		Quarter Ended December 31, 2010
		GAAP Result				% of Net Revenue				Share-based Compensation				% of Net Revenue				Non-GAAP Result				% of Net Revenue
Product development			(120,637,434	)			15	%			16,695,524				2	%			(103,941,910	)			13	%
Sales and marketing			(126,969,302	)			16	%			8,158,262				1	%			(118,811,040	)			15	%
General and administrative			(77,706,831	)			10	%			35,015,075				4	%			(42,691,756	)			5	%
Total operating expenses			(325,313,567	)			41	%			59,868,861				8	%			(265,444,706	)			34	%
Income from operations			292,283,722				37	%			59,868,861				8	%			352,152,583				45	%
Net income attributable to Ctrip’s shareholders			302,273,735				38	%			59,868,861				8	%			362,142,596				46	%
Diluted earnings per ordinary share (RMB)			7.91								1.57								9.47
Diluted earnings per ADS (RMB)			1.98								0.39								2.37
Diluted earnings per ADS (USD)			0.30								0.06								0.36

---

Ctrip.com International, Ltd.

Reconciliation of GAAP and Non-GAAP Results

(In RMB, except % and per share information)

 

			September 30,				September 30,				September 30,				September 30,				September 30,				September 30,
		Year Ended December 31, 2011
		GAAP Result				% of Net Revenue				Share-based Compensation				% of Net Revenue				Non-GAAP Result				% of Net Revenue
Product development			(601,485,367	)			17	%			98,955,335				3	%			(502,530,032	)			14	%
Sales and marketing			(624,599,686	)			18	%			48,191,019				1	%			(576,408,667	)			16	%
General and administrative			(400,875,621	)			11	%			195,645,003				6	%			(205,230,618	)			6	%
Total operating expenses			(1,626,960,674	)			47	%			342,791,357				10	%			(1,284,169,317	)			37	%
Income from operations			1,065,994,170				30	%			342,791,357				10	%			1,408,785,527				40	%
Net income attributable to Ctrip’s shareholders			1,076,414,897				31	%			342,791,357				10	%			1,419,206,254				41	%
Diluted earnings per ordinary share (RMB)			28.30								9.01								37.32
Diluted earnings per ADS (RMB)			7.08								2.25								9.33
Diluted earnings per ADS (USD)			1.12								0.36								1.48
		Year Ended December 31, 2010
		GAAP Result				% of Net Revenue				Share-based Compensation				% of Net Revenue				Non-GAAP Result				% of Net Revenue
Product development			(453,853,000	)			16	%			64,254,080				2	%			(389,598,920	)			14	%
Sales and marketing			(453,292,701	)			16	%			33,202,984				1	%			(420,089,717	)			15	%
General and administrative			(294,701,167	)			10	%			145,104,394				5	%			(149,596,773	)			5	%
Total operating expenses			(1,201,846,868	)			42	%			242,561,458				8	%			(959,285,410	)			33	%
Income from operations			1,054,125,287				37	%			242,561,458				8	%			1,296,686,745				45	%
Net income attributable to Ctrip’s shareholders			1,048,069,740				36	%			242,561,458				8	%			1,290,631,198				45	%
Diluted earnings per ordinary share (RMB)			27.89								6.46								34.35
Diluted earnings per ADS (RMB)			6.97								1.61								8.59
Diluted earnings per ADS (USD)			1.06								0.24								1.30

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=RMB6.2939 on December 30, 2011 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 share to four (4) ADSs representing one (1) ordinary share. The change is reflected retroactively in the numbers for all the periods presented above.