Tuniu Corporation announced a cash dividend of US$13 million, equivalent to US$0.0399 per ordinary share, to be paid in U.S. dollars to shareholders of record as of May 4 2026 with distribution scheduled for mid‑May 2026. The dividend is part of a three‑year shareholder return plan approved in March 2026 that allows up to US$30 million in dividends and US$20 million in share repurchases.
The dividend reflects Tuniu’s strong liquidity position, which exceeds its market capitalization. As of December 31 2025, the company held cash and cash equivalents of CNY 1.1 billion (US$162.9 million) against a market cap of US$82 million. The plan signals management’s confidence in the company’s cash flow and its commitment to returning value to shareholders while maintaining a dividend yield of roughly 5.5% for ADS holders, a figure that is elevated by the company’s depressed share price.
Tuniu’s Q4 2025 results, released on March 5 2026, showed net revenue up 20.3% year‑over‑year and a return to profitability. Packaged tours, the company’s core segment, grew 35.3% YoY, while gross profit fell 6% and operating expenses rose 10%. These figures illustrate that the dividend is being paid from a solid cash position that has been built on strong revenue growth and disciplined cost management, even as margin compression has pressured profitability.
CEO Donald Dunde Yu highlighted the company’s strategic focus in a March 5 earnings call: “In 2025, we adopted a proactive product strategy and an open sales channel approach, driving sustained business growth. In addition, supported by new technologies, we continuously optimized our internal operations and management, achieving ongoing cost reductions and efficiency improvements. Looking ahead to 2026, we will continue to enhance our performance and profitability, striving to create greater value for both our customers and shareholders.” The guidance for Q1 2026 projects revenue growth of 7%‑12% YoY, underscoring management’s confidence in the business outlook.
The dividend announcement is coupled with an ADS ratio change that will take effect on April 22 2026, converting the current 1:3 ratio to 1:30. The reverse split is intended to raise the per‑ADS trading price and improve compliance with Nasdaq listing requirements. Because the ratio change will alter the number of ADSs outstanding, the dividend per ADS will be disclosed separately after the effective date. The high dividend yield—around 5.5%—is a consequence of the low share price relative to the cash position, and the reverse split is expected to lift the price and reduce the yield to a more typical level.
The dividend, combined with the reverse split and the broader shareholder return plan, positions Tuniu to reward shareholders while maintaining a strong balance sheet. The company’s cash reserves, robust revenue growth in packaged tours, and disciplined cost management provide a solid foundation for the dividend, even as margin compression and rising operating expenses present headwinds. The announcement signals management’s confidence in the company’s liquidity and its commitment to delivering shareholder value in the near term while pursuing growth opportunities in 2026.
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