Tuniu Corp

Small Chinese online travel company with strong liquidity but low returns, falling earnings, and negative operating cash flow.

Strengths

• High gross margin ~58% (88th pct) and net cash position of ~$1.29B (90th pct) with current ratio ~2.0
• Revenue grew ~12.5% in 2025 with packaged-tour bookings up ~21%

Risks

• ROE only ~3% (58th pct) and ROA ~1.9% — mid-pack returns, no standout
• Net income fell ~60% YoY and operating cash flow turned negative (OCF margin -19%, 31st pct)
• China VIE structure, CSRC filing and data-security/anti-monopoly regulatory overhang

Notable findings

• Customer concentration~90% of revenue from one customer/distributor — 3 million) in 2023, 2024 and 2025, respectively, representing 90%, 57% and 56% of our revenues, respectively
• Strong balance sheetStrong balance sheet — $184M cash & investments
• Insider buyingInsider buying — 6 open-market buy(s) by 2 insider(s) (cluster of 2 insiders, last 6mo) Form 4 ↗