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Ctrip.com Reports Q2 2006 Financial Results

Chinese Internet travel company Ctrip.com (CTRP) announced its unaudited financial results for the quarter ended June 30, 2006.

Net revenues were CNY190 million in the second quarter of 2006, up 47% year-on-year, and gross margin was 81% in the second quarter of 2006, compared to 85% in the same period in 2005 largely due to higher cost of service as a result of increased revenue contribution from air ticketing services.

"We are very glad to report our solid performance during the second quarter of 2006. We were able to strengthen our market presence and enhance customers' satisfaction through operational excellence. We are confident that Ctrip will continue its healthy growth in the future," said Min Fan, Chief Executive Officer of Ctrip.

For the second quarter of 2006, Ctrip reported total revenues of CNY203 million, representing a 47% increase from the same period in 2005 and 21% increase from the first quarter of 2006.

Hotel reservation revenues totaled CNY118 million for the second quarter of 2006, representing a 28% increase from the same period in 2005 and a 23% increase from the previous quarter due to increased volume of hotel room nights booked and higher average commission per room night achieved in the second quarter of 2006.

The total number of hotel room nights booked was approximately 1.7 million in the second quarter of 2006, compared to approximately 1.39 million room nights for the same period in 2005 and approximately 1.38 million room nights in the previous quarter.

Air ticket booking revenues for the second quarter of 2006 were CNY73 million, representing a 94% increase from the same period in 2005 and a 22% increase from the previous quarter, primarily due to the growth of air tickets sales volume and higher average commission per ticket achieved in the second quarter of 2006.

The total number of air tickets sold in the second quarter of 2006 was approximately 1.49 million air tickets, compared to approximately 0.8 million for the same period in 2005 and approximately 1.28 million in the previous quarter.

Packaged-tour revenues for the second quarter of 2006 were CNY9 million, up 48% from the same period in 2005, and decreased by 7% from the previous quarter due to the company's strategic focus on core FIT (Frequent Independent Travelers) tour packages while ending the low-end group tour service.

For the second quarter of 2006, net revenues were CNY190 million, a 47% increase from the same period in 2005. Net revenues increased by 22% from the first quarter in 2006. The gross margin was 81% in the second quarter of 2006, compared to 85% for the same period in 2005.

As of June 30, 2006, the cash balance increased to CNY808 million, compared to CNY794 million as of March 31, 2006.

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