James Jianzhang Liang
我们很高兴报告又一个出色的季度，各项业务表现强劲。我们持续建立忠诚的客户基础，截至9月底，我们已拥有超过150万累计有效客户。第三季度，我们能够以每月约55,000名新客户的速度获取新客户，而上一季度为每月约51,000名，2004年平均每月约48,000名。本季度，我们净增60家国内酒店，其中保证配额房间增至约24,000间，涉及1,400家保证配额酒店，而2005年第二季度为约22,000间。我们还新增了1,100多家海外酒店，海外酒店总数达到2,100家，这得益于我们持续整合CNG酒店和Pegasus酒店，以及直接签约海外酒店。在机票业务方面，我们新增了4个具备履约能力的城市，使机票配送城市总数达到43个。本季度我们首次售出超过100万张机票。在打包旅游业务中，我们持续推出各种受独立旅行者欢迎的休闲目的地，定位于休闲市场的高端细分。同时，我们继续加强打包产品的预订和交易平台。2005年第三季度，我们的净收入为1,740万美元。净收入同比增长55%，环比增长9%，这得益于所有主要业务线收入的增长。2005年第三季度酒店收入为1,190万美元，较2004年同期增长29%，较上一季度增长4%，主要原因是交易量的稳健增长。第三季度预订的酒店客房总数约为144万间，而2004年同期约为113万间，上一季度约为139万间。每间夜平均佣金略有上升，为人民币67元，而2004年同期和上一季度均为人民币66元。酒店预订的平均佣金率保持在约14%。机票业务在本季度继续呈现显著增长。2005年第三季度机票收入为570万美元，较2004年同期增长160%，主要受销量增长以及每张售出机票平均佣金增加的推动。机票收入较上一季度增长25%。2005年第三季度售出的机票总数约为102万张。相比之下，2004年同期约为49万张，上一季度约为80万张。每张售出机票的平均佣金为人民币45元，而2004年同期为人民币36元，较上一季度的人民币46元略有下降。每张售出机票的平均佣金率为4.6%，而2004年同期为3.7%。打包旅游收入为80万美元，较2004年同期增长120%，较上一季度增长13%。2005年第三季度毛利率微降至83%，而2004年同期为86%，上一季度为85%。这主要是由于机票服务收入贡献增加导致的服务成本上升。产品开发和销售费用较2004年同期增长45%，主要原因是招聘员工以扩大我们的旅游供应网络。销售和营销费用较2004年同期增长61%。这一增长主要与客户奖励计划、额外员工招聘和广告相关的费用有关。一般及行政费用较2004年同期增长17%。2005年第三季度总运营费用为670万美元，较2004年同期增长45%，较2005年上一季度增长4%。2005年第三季度总运营费用占净收入的比例降至39%，而2004年同期为41%。2005年第三季度运营收入为770万美元，同比增长52%，环比增长9%。2005年第三季度运营利润率保持在44%，与上一季度持平，但较2004年同期略有下降。这一微降主要是由于服务成本增加，但相对于净收入而言运营费用的降低在很大程度上抵消了此影响。第三季度净利润为810万美元，较2004年同期增长71%，主要原因是实现的运营收入更高，加上本季度末获得了大量额外的财政补贴以及略为有利的税率。净利润环比增长16%。2005年第三季度净利率达到创纪录的47%，高于2004年同期的42%和上一季度的44%。第三季度每份ADS的完全摊薄收益为0.49美元，超出我们指引20%。2005年第三季度经营活动产生的现金为930万美元，而2004年同期为680万美元。截至2005年9月30日，现金余额进一步增至约8,200万美元。在进入2005年第四季度之际，我们已经历了三个强劲的季度。公司预计将继续实现约40%的强劲同比增长。此外，股东和董事会已批准将未来2005年审计后净利润的30%作为股息分配。我们对长期增长前景充满信心，并期待持续增加股东价值。在开始问答环节之前，我们非常高兴地欢迎孙洁女士加入我们的高级管理团队。孙女士在SEC报告、财务和会计方面拥有丰富经验。她自1997年起在应用材料公司工作。孙女士目前担任应用材料公司SEC及外部报告部门负责人。在加入应用材料公司之前，孙女士在加州硅谷的毕马威会计师事务所担任审计经理五年。我们期待孙女士于12月正式加入我们。在此期间，携程首席运营官范敏先生将担任代理首席财务官，直至孙女士正式加入携程。现在，孙女士，您想说几句话吗？
James Jianzhang Liang
We are pleased to report yet another terrific quarter with strong performance across our business. We continue to build a loyal customer base by the end of September we have more than 1.5 million accumulative effective customers. During the third quarter, we were able to acquire new customers at a pace at about 55,000 new customers per month on average compared to about 51,000 per month in the previous quarter at approximately 48,000 per month on average in 2004. During the quarter, we added net 60 domestic hotels although they guaranteed allotment rooms increase to about 24,000 out of 1400 guaranteed allotment hotels compared to about 22,000 rooms in the second quarter of 2005. We also added over 1100 hotels abroad to a total of 2100 hotels abroad as we continue to integrate CNG hotels and Pegasus ph hotel in addition to directly signing up overseas hotels. On the air-ticketing side, we have added 4 more cities with fulfillment capability to a total of 43 cities, where we now deliver ticket. For the first time, we sold more than a million tickets in the quarter. Within the packaged-tour business, we continued to launch various popular leisure destinations for independent travelers, positioning ourselves at the higher ends of leisure segments. At the same time, we continue to strengthen -- we continue to strengthen our bookings and transaction platform for packaged products. Our net revenues were US$17.4 million in the third quarter of 2005. Net revenues grew by 55% year-on-year, and 9% quarter-on-quarter driven by increase in revenues in all of our major business lines. Revenues from hotels were US$11.9 million in the third quarter of 2005, up 29% from the same period in 2004, and 4% from the previous quarter, primarily as a result of solid growth in transaction volume. The total number of hotel rooms booked was approximately 1.44 million in the third quarter compared to approximately 1.13 million in the same period of 2004, and about 1.39 million in the previous quarter. The average commission per room night was up slightly at RMB67 against RMB66 for the same period in 2004 and previous quarter. The average commission rate on hotel bookings remained at approximately 14%. The air-ticketing business continued to exhibit a spectacular growth during this quarter. Revenues from air-ticketing were US$5.7 million in the third quarter of 2005, up 160% from the same period of 2004, primarily driven by volume growth accompanied by increased average commission per ticket sold. Revenues from air-ticket grew 25% from the previous quarter. The total number of air-tickets sold in the third quarter of 2005 was approximately 1.02 million. This compares approximately 490,000 in the same period in 2004, and about 800,000 in the previous quarter. The average commission per air-ticket sold was RMB45 compared to RMB36 in the same period of 2004 or down slightly from RMB46 in the previous quarter. The average commission rate per ticket sold was 4.6% compared to 3.7% in the same period of 2004. Revenues from packaged-tour were US$0.8 million up 120% from the same period in 2004 and 13% from previous quarter. Gross margin decreased slightly to 83% in the third quarter of 2005, compared to 86% in the same period in 2004 and 85% of previous quarter This is primarily due to high cost of services as a result of increasing increased revenue contribution from air-ticketing service. Product development and sales increased by 45% from the same period of 2004, primarily due to the staff hiring to expand our travel supply network. Sales and marketing expenses increased by 61% from the same period of 2004. This increase is primarily due to expenses associated with the customer reward program, additional staff-hiring and advertisements. G&A expenses increased by 17% from the same period of 2004. Total operating expenses for third quarter of 2005 were US$6.7 million, an increase of 45% from the same period of 2004, and a 4% from previous quarter in 2005. Total operating expenses as a percentage of net revenue in the third quarter of 2005 decreased to 39% compared to 41% in the same period of 2004. Operating income was US$7.7 million in the third quarter of 2005, up 52% year-on-year and operating income increased by 9% sequentially. Operating margin remained flat at 44% in the quarter of 2005 compared to the previous quarter, but slightly down from the same period in 2004. The slight decrease is largely due to increased cost of service, highly offset by decreased operating expenses on a relative basis against net revenues. Net income for the third quarter was US$8.1 million representing the increase of 71% from the same period in 2004, primarily due to higher operating income achieved, accompanied by substantial additional financial subsidies received in a slightly more favorable tax rate end of the quarter. Net income increased by 16% sequentially. Net margin reached the record of 47% in the third quarter of 2005, up from 42% in the same period of 2004 and 44% in previous quarters. Fully diluted earnings per ADS for the third quarter were US$0.49 leading our guidance by 20%. Cash provided by operating activities was US$9.3 million in the third quarter of 2005 compared to US$6.8 million in the same quarter of 2004. As of September 30th, 2005, cash balance increased further to about US$82 million. We’ve had three strong quarters as we head into the fourth quarter of 2005. The company expects to continue to get strong year-on-year net revenue growth of approximately 40%. Further more, the shareholders and Board of Directors have approved a distribution of 30% of future 2005 audit net income as dividend. We are confident of our long-term growth prospect and look forward to continuing to increase shareholder value. Before we begin the Q&A session, we are very pleased to welcome Ms. Jane Sun to our senior management team. Jane has extensive experience in SEC reporting, finance and accounting. She has worked with Applied Materials since 1997. Ms. Sun currently serves as a head of SEC, and External Reporting Division of Applied Material. Prior to joining Applied Material, Ms. Sun worked with KPMG as Audit Manager in Silicon Valley, California, for five years. We look forward to having Jane officially joining us in December. During the interim period, Alfred Fan, Ctrip’s Chief Operating Officer will serve as the acting Chief Financial Officer until Ms. Sun officially joins Ctrip. And now, Jane would you like to say a few words?
