Ctrip Reports Fourth Quarter and Full Year 2011 Financial Results

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.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.