eLong, Inc. (LONG) - 500 Beiträge pro Seite

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Profile:eLong, Inc., through its subsidiaries, provides online travel services in the People's Republic of China. It offers travel information and hotel reservations at approximately 3,500 hotels in 294 cities, as well as air tickets in approximately 50 cities through its toll-free call center, reseller network, and Web sites. The company's non-travel services include advertising on its Web sites and non-travel wireless messaging services, as well as various vacation packages. eLong holds a series of agreements with Beijing Media, Beijing Information, Beijing Airline, Beijing Travel, Hangzhou Air, and Beijing eLong Air Services Co., Ltd. The company was founded in 1999 and is headquartered in Beijing, China. eLong, Inc. operates as a subsidiary of Expedia Asia Pacific ? Alpha Limited.

http://www.elong.net/

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eLong, Inc. Reports Second Quarter 2007 Unaudited Financial Results
Monday August 13, 6:00 pm ET


BEIJING, Aug. 13 /Xinhua-PRNewswire/ -- eLong, Inc. (Nasdaq: LONG - News), a leading online travel service provider in China, today reported unaudited financial results for the second quarter ended June 30, 2007.

Business Highlights for the Second Quarter 2007.
-- Travel revenues, comprised of hotel, air and other travel service
revenues, increased 16% to RMB75.4 million for the second quarter 2007
compared with the prior year period.

-- Travel revenues by service line for the second quarters of 2007 and
2006 were as follows (figures in RMB 000's):

% % Y/Y
Q2 2007 Total Q2 2006 Total Growth
Hotel commissions 60,162 79.8 % 53,753 82.7 % 12 %
Air ticketing
commissions 13,850 18.4 % 9,641 14.8 % 44 %
Other travel revenue 1,400 1.9 % 1,629 2.5 % -14 %
Total travel revenue 75,412 100 % 65,023 100 % 16 %


-- The Company recorded an operating loss of RMB 2.2 million for the
second quarter, compared with an operating loss of RMB1.2 million for
the second quarter of 2006, with greater sales and marketing and
service development expense offsetting the Company's increased gross
profit.

-- The Company recorded a net loss of RMB 1.8 million for the second
quarter, compared with a net income of RMB10.2 million for the second
quarter of 2006. Net income decreased RMB 12.0 million primarily due
to prior year other income of RMB 8.5 million related to interest
income and unrealized exchange loss and a gain on the sale of
discontinued operations of RMB 2.6 million. Excluding these items, net
loss for the second quarter 2006 would have been RMB 0.9 million.

-- As of June 30, 2007 cash and cash equivalents were RMB1.17 billion
(US$154 million), down 2% from RMB1.20 billion at December 31, 2006.
Cash balances decreased RMB28.6 million primarily due to the majority
of our cash being held in US$ and the resulting impact of the
appreciation of the RMB.

''While eLong's top-line results were in line with our expectations, we are not nearly satisfied with our performance. We have begun a comprehensive turnaround program to improve the Company's execution,'' said Henrik Kjellberg, Chairman and interim Chief Executive Officer of eLong, Inc. ''Management is committed to making structural improvements in our hotel and air products, our customer service and our overall management talent. It will take time to regain momentum, but we are confident that eLong can successfully improve its performance and better leverage the growing Chinese travel market.''

''We are focused on striking an optimum balance between the need for fiscal discipline and reigniting our growth momentum,'' said Chris Chan, eLong's Chief Financial Officer. ''We remain confident in the long-term opportunity of China's online travel market, and over time we seek to drive financial gains from our structural improvements to the Company's bottom- line.''

Business Results

Total and travel revenues increased 17% and 16%, respectively, for the second quarter of 2007 compared with the prior year period, reflecting continued growth in our core hotel commissions business and the 44% increase in air ticketing commissions.

Hotel

Hotel commission revenue increased 12% year-over-year primarily due to higher room volume. Room nights booked through eLong increased 11% to 922,000, while commission per room night remained largely unchanged at RMB65.

eLong has grown its hotel offering over 28% since second quarter 2006, and now features discounted rates at nearly 4,500 hotels in over 300 cities across China.

Air

Air ticketing commission revenue increased 44% primarily due to a 41% increase in air segments to 347,000, as well as a modest 2% increase in commission per air ticket to RMB40.

Profitability

Gross margin in the second quarter of 2007 was 73.5%, a decrease of 364 basis points compared with 77.1% in the prior year period. Gross margin decreased due to the increased mix of lower margin air commissions and increased compensation expense related to investments in our call center talent and infrastructure.

Operating expenses for the second quarter of 2007 and 2006 were as follows (figures in RMB 000's):



% % Y/Y
Q2 2007 Revenue Q2 2006 (1) Revenue Growth
Service
development 12,257 15.6 % 10,094 15.1 % 21 %
Sales and
marketing 29,313 37.4 % 25,302 37.9 % 16 %
General and
administrative 13,540 17.3 % 13,355 20.0 % 1 %
Business tax and
surcharges 4,026 5.1 % 3,643 5.5 % 11 %
Writedown of
property and
equipment and
intangibles 526 0.7 % -- 0.0 % N/A
Amortization of
intangibles 265 0.3 % 265 0.4 % 0 %
Total operating
expenses 59,927 76.4 % 52,659 78.8 % 13.8 %

Note 1 - Effective second quarter 2006, prior period sales and marketing,
service development and business tax and surcharge expenses have
been revised to exclude expenses related to our discontinued
operations

Service development, sales and marketing, and general and administrative expenses increased 13.0% during the second quarter, while total operating expenses increased 13.8%.

Service development expense is composed of expenses related to technology and product offering, including our website, the platform and the Company's air and hotel products. Second quarter service development expense increased 21% and increased 50 basis points as a percentage of revenue to 15.6% because we maintained the pace of investment in our air booking and online payment platforms, and invested in other product enhancements.

Sales and marketing expense increased 16%, and decreased 50 basis points as a percentage of revenue to 37.4%. The increased expense was due to increases in business volume.

General and administrative expense increased 1%. General and administrative expenses as a percentage of revenue decreased 270 basis points to 17.3% in the second quarter.

Operating loss was RMB2.2 million as compared to an operating loss of RMB1.2 million in second quarter of 2006, an increased loss of RMB1.0 million primarily due to lower percent gross margin resulting from the higher air revenue mix, as well as higher spending in sales and marketing and service development expenses.

Other loss, which represents interest income, unrealized exchange gains/losses and other income/expense, was RMB1.1 million in the second quarter of 2007, primarily due to an unrealized foreign exchange loss of RMB15.4 million resulting from nearly 1.4% appreciation in the Renminbi from the prior quarter. This exchange loss was partially offset by net interest income of RMB14.1 million in the second quarter of 2007.

The Company recorded a net loss of RMB1.8 million for the second quarter compared to a net income of RMB10.2 million in the prior year period, an increased loss of RMB12.0 million primarily due to RMB8.9 million in higher continuing operating loss in the second quarter of 2007 and RMB3.1 million of income from discontinued operations which benefited the second quarter of 2006.

Our US GAAP diluted loss per ADS for the second quarter of 2007 was RMB0.08 compared to a diluted income per ADS of RMB0.38 in the prior year period.

Management Addition

eLong is pleased to welcome Thomas Chen as Vice-President of Marketing, whose responsibilities include eLong branding, product promotions, customer retention and analysis, loyalty programs, public relations and market research. Mr. Chen has ten years of brand management and FMCG marketing experience, of which eight years for SC Johnson & Son. He has worked in mainland China for four years, most recently as the marketing director for the Ting Hsin chain restaurant business. Mr. Chen, who hails from Taiwan, holds a master degree in Integrated Marketing from Northwestern University.

Business Outlook

eLong expects total revenues for the third quarter of 2007 within the range of RMB79.0 million to RMB87.0 million, an increase of 6% to 17% from the third quarter of 2006.

Note to the Unaudited Interim Consolidated Financial Information

Financial information in this press release is unaudited and was prepared in accordance with generally accepted accounting principles in the United States.


eLong suspended its vacation package service business on July 12, 2007.
Safe Harbor Statement

It is currently expected that the Business Outlook will not be updated until the release of eLong's next quarterly earnings announcement; however, eLong reserves the right to update its Business Outlook at any time for any reason.

Statements in this press release concerning eLong's future business, operating results and financial condition are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. Words such as ''anticipate,'' ''believe,'' ''estimate,'' ''expect,'' ''forecast,'' ''intend,'' ''may,'' ''plan,'' ''project,'' ''predict,'' ''should'' and ''will'' and similar expressions as they related to the Company are intended to identify such forward-looking statements, but are not the exclusive means of doing so. These forward looking statements are based upon management's current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Factors that could affect the Company's actual results and cause actual results to differ materially from those included in any forward-looking statement include, but are not limited to, eLong's historical operating losses, declines or disruptions in the travel industry, the recurrence of SARS, an outbreak of bird flu, eLong's reliance on having good relationships with hotel suppliers and airline ticket suppliers, our reliance on the Travelsky GDS system for our air business, the possibility that eLong will be unable to timely comply with Section 404 of the Sarbanes-Oxley Act of 2002, the risk that eLong will not be successful in competing against new and existing competitors, risks associated with Expedia, Inc.'s (Nasdaq: EXPE - News) majority ownership interest in eLong and the integration of eLong's business with that of Expedia's, subsequent fluctuations of the Chinese currency, changes in eLong's management team and other key personnel and other risks outlined in eLong's filings with the U.S. Securities and Exchange Commission (or SEC), including eLong's Form 20-F filed with the SEC in connection with the Company's fiscal year 2006 results. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of their dates.

Conference Call

eLong will host a conference call to discuss its second quarter and fiscal 2007 earnings at August 13, 2007, 8:00 pm Eastern (Beijing/Hong Kong time: August 14, 2007 at 8:00 am). The management team will be on the call to discuss quarterly results and highlights and to answer questions. The toll- free number for U.S. participants is [phone]. The dial-in number for Hong Kong participants is [phone]. International participants can dial [phone]. Passcode ELONG.

A replay of conference call will be available for one day starting from 9:30 pm Eastern Time on August 13, 2007. US toll-free dial-in number: [phone], international dial-in number: [phone]. Passcode: 734540.

Additionally, a live and archived web cast of this call will be available on the Investor Relations section of the eLong web site at http://ir.elong.net for three months.

About eLong, Inc.

eLong, Inc. (Nasdaq: LONG - News) is a leading online travel company in China. Headquartered in Beijing, eLong has a national presence across China. eLong uses web-based distribution technologies and a 24-hour call center to provide consumers with access to travel reservation services. Aiming to enrich people's lives through the freedom of independent travel, eLong empowers consumers to make informed choices by providing a one-stop travel solution and consolidated travel tools and information such as maps, virtual tours and user ratings. eLong has the capacity to fulfill air ticket reservations in over 55 major cities across China. In addition to choice of a wide hotel selection in the Greater China region, eLong offers Chinese consumers the ability to make bookings at international hotels in over 140 destinations worldwide. eLong operates the websites http://www.elong.com and http://www.elong.net .




eLong, Inc. CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
IN LOCAL CURRENCY

Three Months Ended Six Months Ended
Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30,
2007 2007 2006 2007 2006
RMB RMB RMB RMB RMB
Revenues
Hotel commissions 60,162 48,879 53,753 109,042 95,837
Air ticketing
commissions 13,850 12,050 9,641 25,900 17,650
Other travel revenue 1,400 2,077 1,629 3,476 3,086
Travel 75,412 63,006 65,023 138,418 116,573
Other 3,019 2,275 1,770 5,295 3,674
Total revenues 78,431 65,281 66,793 143,713 120,247

Cost of services (20,701) (17,701) (15,285) (38,403) (28,470)
Gross profit 57,730 47,580 51,508 105,310 91,777

Operating expenses
Service development (12,257) (10,594) (10,094) (22,852) (20,635)
Sales and marketing (29,313) (27,020) (25,302) (56,331) (47,207)
General and
administrative (13,540) (11,188) (13,355) (24,728) (33,690)
Amortization of
intangibles (265) (265) (265) (530) (530)
Writedown of PP&E (526) -- -- (526) --
Business tax and
surcharges (4,026) (3,675) (3,643) (7,701) (6,656)
Total operating
expenses (59,927) (52,742) (52,659) (112,668) (108,718)

Loss from operations (2,197) (5,162) (1,151) (7,358) (16,941)
Other income/(loss) (1,053) 4,329 8,497 3,276 12,761
Income/(loss) before
income tax expense (3,250) (833) 7,346 (4,082) (4,180)
Income tax
benefit/(expense ) 1,433 (52) (250) 1,380 (787)

Income/(loss) from
continuing
operations (1,817) (885) 7,096 (2,702) (4,967)
Discontinued
operations
Income/(loss) from
discontinued
operations -- 112 526 112 114
Income tax benefit
/(expense) of
discontinued
operations -- (8) (48) (8) (42)
Gain on sale of
discontinued
operations -- -- 2,650 -- 2,650
Total discontinued
operations -- 104 3,128 104 2,722

Net income/(loss)
before cumulative
effect of change in
accounting
principles (1,817) (781) 10,224 (2,598) (2,245)

Cumulative effect of
change in accounting
principles -- -- -- -- 282

Net income/(loss) (1,817) (781) 10,224 (2,598) (1,963)

Basic income/(loss)
per share
Continuing operations (0.04) (0.02) 0.14 (0.05) (0.09)
Discontinued
operations 0.00 0.00 0.06 0.00 0.05
Cumulative effect of
change in accounting
principles 0.00 0.00 0.00 0.00 0.00
Basic income/(loss)
per share (0.04) (0.02) 0.20 (0.05) (0.04)

Diluted income/(loss)
per share
Continuing operations (0.04) (0.02) 0.13 (0.05) (0.09)
Discontinued
operations 0.00 0.00 0.06 0.00 0.05
Cumulative effect of
change in accounting
principles 0.00 0.00 0.00 0.00 0.00
Diluted income/(loss)
per share (0.04) (0.02) 0.19 (0.05) (0.04)

Basic income/(loss)
per ADS
Continuing operations (0.08) (0.04) 0.28 (0.10) (0.18)
Discontinued
operations 0.00 0.00 0.12 0.00 0.10
Cumulative effect of
change in accounting
principles 0.00 0.00 0.00 0.00 0.00
Basic income/(loss)
per ADS (0.08) (0.04) 0.40 (0.10) (0.08)

Diluted income/(loss)
per ADS
Continuing operations (0.08) (0.04) 0.26 (0.10) (0.18)
Discontinued
operations 0.00 0.00 0.12 0.00 0.10
Cumulative effect of
change in accounting
principles 0.00 0.00 0.00 0.00 0.00
Diluted income/(loss)
per ADS (0.08) (0.04) 0.38 (0.10) (0.08)

Shares used in
computing basic net
income/(loss) per
share 50,732 50,685 50,374 50,709 50,364
Shares used in
computing diluted
net income/(loss)
per share 50,732 50,685 53,870 50,709 50,364

Note that 1ADS = 2
shares

* Share-based
compensation charges
included are as
follows: 1,760 2,769 2,519 4,529 6,753
Cost of services 29 21 42 50 106
Service development 569 677 669 1,246 1,437
Sales and marketing 83 201 134 284 334
General and
administrative 1,079 1,870 1,674 2,949 4,876

*Unrealized Foreign
exchange losses 15,421 9,614 2,772 25,034 9,547



eLong, Inc. CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
IN U.S. DOLLARS

Three Months Ended Six Months Ended
Jun. 30, Mar. 31, Jun. 30, Jun. 30, Jun. 30,
2007 2007 2006 2007 2006

US$ US$ US$ US$ US$
Revenues
Hotel commissions 7,904 6,329 6,724 14,325 11,988
Air ticketing commissions 1,819 1,560 1,206 3,403 2,208
Other travel revenue 184 269 204 457 386
Total travel revenue 9,907 8,158 8,134 18,185 14,582
Other 397 295 221 696 460
Total revenues 10,304 8,453 8,355 18,881 15,042

Cost of services (2,720) (2,292) (1,912) (5,045) (3,562)
Gross profit 7,584 6,161 6,443 13,836 11,480

Operating expenses
Service development (1,610) (1,372) (1,262) (3,002) (2,581)
Sales and marketing (3,851) (3,499) (3,164) (7,400) (5,906)
General and administrative (1,779) (1,449) (1,671) (3,249) (4,214)
Amortization of intangibles (35) (34) (33) (70) (66)
Writedown of PPE and
intangibles (69) -- -- (69) --
Business tax and surcharges (529) (476) (456) (1,012) (833)
Total operating expenses (7,873) (6,830) (6,586) (14,802) (13,600)

Loss from operations (289) (669) (143) (966) (2,120)
Other income/(loss) (138) 561 1,063 429 1,596
Income/(loss) before income tax
expense (427) (108) 920 (536) (524)
Income tax benefit/(expense) 188 (7) (31) 181 (98)

Income/(loss) from continuing
operations (239) (115) 889 (355) (622)
Discontinued operations
Income/(loss) from discontinued
operations -- 15 66 15 14
Income tax benefit /(expense) of
discontinued operations -- (1) (6) (1) (5)
Gain on sale of discontinued
operations -- -- 331 -- 331
Total discontinued operations -- 14 391 14 340

Net income/(loss) before
cumulative effect of change in
accounting principles (239) (101) 1,280 (341) (282)
-- -- -- -- --
Cumulative effect of change in
accounting principles -- -- -- -- 35

Net income/(loss) (239) (101) 1,280 (341) (247)

Basic income/( loss) per share
Continuing operations (0.005) (0.003) 0.018 (0.007) (0.011)
Discontinued operations 0.000 0.000 0.008 0.000 0.006
Cumulative effect of change in
accounting principles 0.000 0.000 0.000 0.000 0.000
Basic income/(loss) per share (0.005) (0.003) 0.026 (0.007) (0.005)

Diluted income/(loss) per share
Continuing operations (0.005) (0.003) 0.016 (0.007) (0.011)
Discontinued operations 0.000 0.000 0.008 0.000 0.006
Cumulative effect of change in
accounting principles 0.000 0.000 0.000 0.000 0.000
Diluted income/(loss) per share (0.005) (0.003) 0.024 (0.007) (0.005)

Basic income/(loss) per ADS
Continuing operations (0.011) (0.005) 0.036 (0.013) (0.023)
Discontinued operations 0.000 0.000 0.015 0.000 0.013
Cumulative effect of change in
accounting principles 0.000 0.000 0.000 0.000 0.000
Basic income/(loss) per ADS (0.011) (0.005) 0.051 (0.013) (0.010)

Diluted income/(loss) per ADS
Continuing operations (0.011) (0.005) 0.033 (0.013) (0.023)
Discontinued operations 0.000 0.000 0.015 0.000 0.013
Cumulative effect of change in
accounting principles 0.000 0.000 0.000 0.000 0.000
Diluted income/(loss) per ADS (0.011) (0.005) 0.048 (0.013) (0.010)

Shares used in computing basic
net income/(loss) per share 50,732 50,685 50,374 50,709 50,364
Shares used in computing diluted
net income/(loss) per share 50,732 50,685 53,870 50,709 50,364

Note that 1ADS = 2 shares

* Share-based compensation
charges included are as
follows: 231 358 315 595 845
Cost of services 4 3 5 7 13
Service development 75 88 84 164 180
Sales and marketing 11 26 17 37 42
General and administrative 142 242 209 387 610

*Unrealised foreign
exchange losses 2,026 1,245 347 3,289 1,194

Note 1: The conversions of Renminbi (RMB) into United States dollars (USD)
as at the reporting dates are based on the noon buying rate of
USD1.00=RMB7.6120 on June 30, 2007,USD1.00 = RMB7.7232 on March
31,2007 and USD1.00 = RMB7.9943 on June 30, 2006 in the City of
New York for cable transfers of Renminbi as certified for customs
purposes by the Federal Reserve. No representation is intended to
imply that the RMB amounts could have been, or could be, converted,
realized or settled into U.S. dollars at that rate on the
reporting dates.



eLong, Inc.
CONSOLIDATED SUMMARY BALANCE SHEET DATA
(UNAUDITED, IN THOUSANDS)

Jun. 30, Dec. 31, Jun. 30, Dec. 31,
2007 2006 2007 2006
RMB RMB US$ US$
ASSETS
Current assets:
Cash and cash equivalents 1,170,752 1,199,323 153,803 153,679
Restricted cash 11,473 -- 1,507 --
Accounts receivable, net 39,868 28,237 5,238 3,618
Due from related parties 572 2,099 75 269
Deferred income taxes, net 2,577 708 339 91
Prepaid expenses and other current
assets 11,833 10,384 1,555 1,331
Total current assets 1,237,075 1,240,751 162,517 158,987
Property and equipment, net 41,420 37,809 5,441 4,845
Goodwill 30,000 30,000 3,941 3,844
Intangible assets, net 3,216 3,746 422 480
Deferred income taxes, net 707 982 93 126
Other non-current assets 19,049 22,029 2,503 2,823
Total assets 1,331,467 1,335,318 174,917 171,105


LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable 40,428 32,753 5,311 4,197
Income taxes payable 3,478 16,757 457 2,147
Due to related parties 4,094 3,374 538 432
Accrued expenses and other current
liabilities 79,496 81,540 10,443 10,448
Total current liabilities 127,496 134,424 16,749 17,225
Other long-term liabilities 327 980 43 126
Deferred income taxes 132 132 17 17
Total liabilities 127,955 135,537 16,809 17,367

Shareholders' equity
Ordinary shares 4,199 4,192 552 537
Additional paid-in capital 1,307,487 1,301,312 171,765 166,747
Accumulated other comprehensive
income (loss) 118 (29) 16 (4)
Accumulated deficit (108,292) (105,694) (14,227) (13,543)
Total shareholders' equity 1,203,512 1,199,781 158,108 153,737
Total liabilities and
shareholders' equity 1,331,467 1,335,318 174,917 171,105



For more information, please contact:

eLong, Inc.
Investor Relations
Tel: [phone] x6555
Email: [e-mail]




--------------------------------------------------------------------------------
Source: eLong, Inc.

[50bager]

Investor's Business Daily
Ctrip Packs Punch In China Tourism
Friday August 17, 7:00 pm ET
Doug Tsuruoka


Is there a home team advantage in online travel?
If so, U.S. Web travel firms like Barry Diller's Expedia (NasdaqGS:EXPE - News) that are hot to enter the Chinese market better watch out.



Ctrip.com International (NasdaqGS:CTRP - News), China's homegrown slugger in online travel, is hitting lots of home runs lately. That meant some scoring for investors in its U.S. shares, until a recent downturn.

"The question is not whether Ctrip can compete against Expedia, but whether Expedia can compete against Ctrip," said Piper Jaffray analyst Aaron Kessler.

The Shanghai-based travel firm founded by four Chinese entrepreneurs has recorded double-digit year-over-year per-share profit growth for 11 straight quarters, excluding stock-based compensation charges. Its year-over-year sales have risen at least 46% every quarter since mid-2003. In the second quarter, sales rose 59% to $37.8 million.

IBD gives the company's American Depositary Receipts a Relative Strength Rating of 90, putting it in the top 10% of all stocks in the last 12 months. And it has an Earnings Per Share Rank of 96.

Heady Growth Forecast

Gilford Securities analyst Ashish Thadhani forecasts 43% compounded annual revenue growth for Ctrip from 2006 through 2009.

Thadhani says the company has consistently exceeded his expectations in key metrics such as room nights booked and air tickets sold.

Ctrip offers hotel reservation, air-ticketing and packaged-tour services online, mostly targeting middle class Chinese consumers. It sells plane seats for local airlines such as Air China. It also books seats for foreign carriers such as United Airlines (NasdaqGS:UAUA - News) that have flights that originate in China.

With JPMorgan estimating that the number of Chinese Web users could swell to 190 million by 2010 from 137 million in 2006, China has a potentially huge online travel market.

In addition, China boasts more than 10,000 hotels and inns and is building more in the run-up to the 2008 Beijing Olympics. Chinese airlines are adding planes and routes.

Robert Lawrence Kuhn, a senior adviser on China for Citigroup's investment banking unit, says Chinese government policy is very focused on increasing consumer spending. "One way to do that is to get more people to travel inside China," Kuhn said.

Kuhn says provincial and city officials are promoting local scenic spots, publishing travel magazines and otherwise "doing everything possible" to spur domestic tourism.

Expedia is one of several U.S. online travel players building beachheads in this emerging travel market. Travelocity bought Singapore-based online travel Web site Zuji in January 2006. Priceline.com (NasdaqGS:PCLN - News) runs a travel Web site with local Chinese partner Hutchison Whampoa for travelers departing Hong Kong and Singapore. Priceline is said to be eyeing more travel investments in China.

Ctrip's giving its U.S. rivals a run for their money. Ctrip's market value of about $2.4 billion is 10 times larger than Expedia's China unit, eLong (NasdaqGM:LONG - News). Expedia owns 52% of eLong and Chinese partners own the rest.

Ctrip and eLong aren't the only China-based Web travel firms. There's also Qunar.com, a price comparison travel Web site.

All of these players are trying to get traction in a frontierlike local travel market, where opportunities are rife and many facilities and services are being built from scratch.

Ctrip's success vs. eLong has fueled rumors this month that Expedia might sell its stake in eLong to Ctrip.

Nine-year-old Ctrip enjoys wide brand recognition among Chinese. As a locally owned firm, China's government imposes fewer legal curbs on it than it does rivals with foreign investors, including eLong.

Started With $250K

China's middle class is relatively new to booking travel online, but they're fast learners. And the number of wealthy Chinese who take package tours to destinations such as the U.S. and Europe is expected to keep growing.

Ctrip was founded in 1999 with $250,000 in startup capital by James Liang and three partners.

Liang, Ctrip's chairman, is a 37-year-old Georgia Tech graduate who worked for Silicon Valley firms. Min Fan, another founder who serves as Ctrip's chief executive, once worked for a state-owned travel company. Co-founder Ji Qi used to sell Oracle's (NasdaqGS:ORCL - News) software in China, while Neil Shen, the fourth founder, is an investment banker who's worked in Hong Kong and New York.

Ctrip has built its lead as the local company that's catered to the rising middle-tier hotel industry. Most of the other travel companies had instead long-focused on the three-, four- and five-star hotels in big cities like Beijing that mostly serve rich foreigners and upper crust Chinese.

Analysts say the country's growing middle class is waiting for more affordable hotels and motels to rise from the dust of China's ongoing building boom. And Ctrip has the advantage here. It's more familiar with regional markets, laws and politics than foreign Web travel firms that have been focused on China's big urban centers, analysts say.

"(Ctrip) understands Chinese consumers better than a multinational would," Kessler said. "They know what Chinese consumers want and understand local marketing better."

Not that Ctrip is ignoring the big cities. In June, Ctrip said it would open a Beijing-based offline travel agency to compete with traditional travel agents in China.

Kessler says there's room for several winners in China's nascent e-travel sector.

"We don't think it's a winner-take-all business," he said. "There's room for more than one player in online travel in China."

[ustrading]

die sitzen ja auf einem rießen Berg von Dollars .... zum Thema Olympia 2008 bin ich gestern auf diesen interessanten Wert gestoßen
Home Inns & Hotels Management Inc. (NASDAQ: HMIN)
haben eine schon recht große Hotelkette im Reich der Mitte aufgebaut. Fundamental, wie die meisten China-Stocks leider aber schon recht teuer

[50bager]

hallo ustrading...

HMIN beobachte ich schon
ist mir viel zu teuer!

zu LONG
Ja ..die stzen auf einem riesigen berg auf dollars!

Expedia ist dazu auch noch beteiligt!

[50bager]

[50bager]

volumen zieht an...

[50bager]

eLong, Inc. Announces Appointment of Guangfu Cui as new Chief Executive Officer
Tuesday September 25, 9:00 pm ET


BEIJING, Sept. 25 /Xinhua-PRNewswire/ -- eLong, Inc. (Nasdaq: LONG - News), a leading online travel service provider in China, today announced the appointment of a new Chief Executive Officer.
ADVERTISEMENT


(Logo: http://www.newscom.com/cgi-bin/prnh/20041118/ELONGLOGO )

Guangfu Cui will join as CEO of eLong, Inc., effective October 8, 2007. Henrik Kjellberg will step down as Interim CEO of eLong but will remain Chairman of the eLong Board of Directors, and will remain actively involved in the company.

"Guangfu Cui has significant experience in business expansion and establishing national brands in China. He also brings a thorough understanding of the Chinese consumer and the Chinese market, having worked not only for P&G but also for Fedex Kinko's in China," said Mr. Kjellberg.

"I am delighted to be joining eLong at this exciting and challenging stage in the company's development," said Guangfu Cui. "The Chinese travel market is just starting to take off and eLong is extremely well positioned to build a very strong position in this segment. We will continue the process of change to make eLong an even stronger company."

About Guangfu Cui

Prior to joining eLong, Guangfu Cui was the Managing Director for FedEx Kinko's China. Under his leadership, Mr. Cui positioned the company as market leader in digital printing industry in China with 16 centers and 300 employees within four years after he joined FedEx Kinko's.

Prior to joining FedEx Kinko's, Guangfu Cui worked for Procter & Gamble China for over 12 years, including two and half years working in the United States. He was instrumental in building Procter & Gamble China's distribution network and retail coverage system.

Guangfu Cui is 38 years old, holds an MBA from Kellogg School of Management at Northwestern University and a BA in Law from Peking University.

About eLong, Inc.

eLong, Inc. (Nasdaq: LONG - News) is a leading online travel company in China. Headquartered in Beijing, eLong has a national presence across China. eLong uses web-based distribution technologies and a bilingual call center to provide consumers with access to travel reservation services. Aiming to enrich people's lives through the freedom of independent travel, eLong empowers consumers to make informed choices by providing a one-stop travel solution and consolidated travel tools and information such as maps, virtual tours and user ratings. eLong has the capacity to fulfill air ticket reservations in over 55 major cities across China. In addition to choice of a wide hotel selection in the Greater China region, eLong offers Chinese consumers the ability to make bookings at international hotels in over 140 destinations worldwide. eLong operates the websites http://www.elong.com and http://www.elong.net .

About Expedia, Inc.

Expedia, Inc. is the world's leading online travel company, empowering business and leisure travelers with the tools and information they need to easily research, plan, book, and experience travel. Expedia, Inc. also provides wholesale travel to offline retail travel agents. Expedia, Inc.'s portfolio of brands includes: Expedia.com®, hotels.com®, Hotwire®, Expedia® Corporate Travel, TripAdvisor® and Classic Vacations®. Expedia, Inc.'s companies also operate internationally with sites in Canada, the United Kingdom, Germany, France, Italy, the Netherlands, Norway, Sweden, Denmark, Australia, Japan and China, through its investment in eLong(TM). For more information, visit http://www.expediainc.com/ (Nasdaq: EXPE - News).

Expedia, Expedia.com are either registered trademarks or trademarks of Expedia, Inc. in the U.S. and/or other countries. Classic Vacations is either a trademark or registered trademark of Classic Vacations, LLC in the U.S. and/or other countries. hotels.com is either a trademark or registered trademark of hotels.com, L.P., a subsidiary of hotels.com in the U.S. and/or other countries. Hotwire is either a trademark or registered trademark of Hotwire, Inc. in the U.S. and/or other countries. TripAdvisor is either a trademark or registered trademark of TripAdvisor, LLC in the U.S. and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners.

© 2007 Expedia, Inc. All rights reserved. CST: 2029030-40

Safe Harbor Statement

Statements in this press release concerning eLong's future business, operating results and financial condition are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they related to the Company are intended to identify such forward-looking statements. These forward looking statements are based upon management's current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Factors that could affect the Company's actual results and cause actual results to differ materially from those included in any forward-looking statement include, but are not limited to, eLong's historical operating losses, its limited operating history, declines or disruptions in the travel industry, the recurrence of SARS, an outbreak of bird flu, eLong's reliance on having good relationships with hotel suppliers and airline ticket suppliers, collection risk with respect to eLong's corporate travel accounts receivable, the possibility that eLong will be unable to timely comply with Section 404 of the Sarbanes-Oxley Act of 2002, the risk that eLong will not be successful in competing against new and existing competitors, risks associated with Expedia, Inc.'s (Nasdaq: EXPE - News) majority ownership interest in eLong and the integration of eLong's business with that of Expedia's, subsequent revaluations of the Chinese currency, changes in eLong's management team and other key personnel and other risks outlined in eLong's filings with the U.S. Securities and Exchange Commission (or SEC), including eLong's Form 20-F filed with the SEC in connection with the Company's fiscal year 2006 results. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of their dates.


Investor Contact:

eLong, Inc.
Investor Relations
Tel: [e-mail]
Email: [phone] x6606




--------------------------------------------------------------------------------
Source: eLong, Inc.

[benefactor [KommA]]

Eine der wenigen chineschen ADR´s die nocht nicht durch die Decke ging in den letzten Tagen. Mich würde es nicht wundern, wenn LONG bald ebenfalls enorm anzieht. Volumen kommt ja schon mal rein...

[50bager]

grausame quartalszahlen!!!!

neue tiefststände kommen sicher!

eLong, Inc. Reports Third Quarter 2007 Un-audited Financial Results



BEIJING, Nov. 13 /Xinhua-PRNewswire/ -- eLong, Inc. (Nasdaq: LONG), a
leading online travel service provider in China, today reported un-audited
financial results for the third quarter ended September 30, 2007.
Business Highlights for the Third Quarter 2007.

-- Travel revenues before business tax and surcharges comprised of hotel,
air and other travel product and service revenues, increased 12% to
RMB80.9 million for the third quarter 2007 compared with the prior year
period.

-- Travel revenues before business tax and surcharges by product line for
the third quarters of 2007 and 2006 were as follows (figures in RMB
000's):
Y/Y
Q3 2007 % Total Q3 2006 % Total Growth
Hotel commissions 64,417 80 % 57,412 80 % 12 %
Air ticketing commissions 15,585 19 % 11,045 15 % 41 %
Other travel revenue 869 1 % 3,860 5 % -77 %
Total travel revenue 80,871 100 % 72,317 100 % 12 %


-- The Company recorded an operating loss of RMB 9.3 million for the third
quarter, compared with an operating income of RMB1.7 million for the
third quarter of 2006, primarily due to greater sales and marketing
expense and consulting expenses partially offset by higher revenue.

-- The Company recorded a net loss of RMB 7.4 million for the third
quarter, compared with net income of RMB2.7 million for the third
quarter of 2006. Net income decreased RMB 10.1 million primarily due
to current quarter sales and marketing expenses of RMB 36.9 million,
which is RMB11.5 million more than the same quarter of prior year.

-- As of September 30, 2007 cash and cash equivalents were RMB1.2 billion
(US$158 million), consistent with December 31, 2006.
"The third quarter was a mixed quarter for eLong. Revenue growth was in
line with our expectations and we have, managed to stabilize the decline in
growth rates. However, we believe that eLong is not yet executing to its
full potential and we are working hard to change that. We are very happy
with the appointment of Mr. Guangfu Cui as CEO of eLong and believe he will
be instrumental in improving eLong's performance going forward", said
Henrik Kjellberg, Chairman and former Interim Chief Executive of eLong.
"I am delighted to be part of the eLong team. We are facing a
challenging situation but eLong is structurally well positioned to achieve
great results in the market place," said Chief Executive Officer, Cui
Guangfu.
"While we are keenly aware of the need for fiscal discipline, we
believe eLong needs to make investments to re-accelerate its growth," said
Chris Chan, eLong's Chief Financial Officer. "We remain confident in the
long-term opportunity of China's online travel market, and over time we
seek to turn the operations to top-rate customer service and higher
operating leverage."
Business Results
Total gross revenues and travel revenues both increased 12% for the
third quarter of 2007 compared with the prior year period, reflecting
continued growth in our core hotel commissions business and the 41%
increase in air ticketing commissions.
Hotel
Hotel commission revenue increased 12% year-over-year primarily due to
higher room volume. Room nights booked through eLong increased 13% to
1,009,000, while commission per room night remained unchanged as RMB64.
eLong has grown its hotel offering over 29% since third quarter 2006,
and now features discounted rates at more than 4,700 hotels in over 300
cities across China.
Air
Air ticketing commission revenue increased 41% primarily due to a 36%
increase in air segments to 370,000, as well as a 4% increase in commission
per air ticket to RMB42.
Profitability
Gross margin in the third quarter was 74%, a decrease of 200 basis
points compared with 76% in the prior year period. Gross margin decreased
due to the increased mix of lower margin air commissions and increased
compensation expense in our call center.
Operating expenses for the third quarter of 2007 and 2006 were as follows
(figures in RMB 000's):

Q3 % Net % Net Y/Y
2007(2) Revenue Q3 2006(1) Revenue Growth
Service development 12,196 15 % 10,718 15 % 14 %
Sales and marketing 36,858 47 % 25,331 36 % 46 %
General and
administrative 18,277 23 % 15,376 22 % 19 %
Amortization of
intangibles 265 0 % 265 0 % 0 %
Total operating
expenses 67,596 85 % 51,690 73 % 31 %


Note 1: Effective third quarter 2006, prior period service development and
sales and marketing, have been restated to exclude expenses
related to our discontinued operations
Note 2: Effective from third quarter 2007, business tax expense and
related surcharges have been presented on a net basis (excluded
from revenues). The Company believes the net presentation is
preferable accounting principle because the revenue amount after
deduction of business tax expense and related surcharge represents
the benefit to be retained by the Company. Amounts for all prior
periods presented have been reclassified for comparative purpose.
For impact of this change on prior quarters, please refer to
appendix "Business tax presentation change effect".
The total of service development, sales and marketing, general and
administrative expense increased 31% during the third quarter; total
operating expenses increased 31% as well.
Service development expense is composed of expenses related to
technology and product offering, including our website, the platform and
the Company's air and hotel products. Third quarter service development
expense increased 14% over the prior year period and service development
expense as a percentage of net revenue increased 22 basis points to 15% as
we maintained the pace of investment in our air booking and online payment
platforms, and invested in website and hotel product enhancements.
Sales and marketing expense increased 46% over the prior year period,
and increased 11% as a percentage of net revenue to 47%. The increased
expense was due to higher advertising and promotion spending as well as
increased sales commissions in line with revenue growth.
General and administrative expense increased 19% over the prior year
period mainly due to increases in consulting and recruiting fees. General
and administrative expenses as a percentage of net revenue increased 131
basis points to 23% in the third quarter.
Operating loss was RMB9.3 million as compared to an operating income of
RMB1.7 million in the third quarter of 2006, an increased loss of RMB11.0
million primarily due to higher spending in sales and marketing and
consulting fees offset partially by higher revenue.
Other income, which represents interest income, unrealized exchange
gains/losses and other income/expense, was RMB1.1 million in the third
quarter of 2007, primarily due to an unrealized foreign exchange loss of
RMB13.7 million resulting from appreciation in the Renminbi compared with
the prior year. This exchange loss was partially offset by interest income
of RMB14.4 million in the third quarter of 2007.
The company recorded a net loss of RMB7.4 million for the third quarter
compared to a net income of RMB2.7 million in the prior year period, an
increased loss of RMB10.1 million primarily due to RMB11.5 million in
higher sales and marketing expenses in the third quarter of 2007.
Our US GAAP diluted loss per ADS for the third quarter of 2007 was
RMB0.30 compared to a diluted income per ADS of RMB0.10 in the prior year
period.
Management Appointment
eLong is pleased to welcome Guangfu Cui as Chief Executive Officer as
of October 8th, 2007.
Prior to joining eLong, Mr. Cui was the Managing Director for FedEx
Kinko's China. Mr. Cui positioned the company as a market leader in the
digital printing industry in China, with 16 centers and 300 employees
within four years after his joining. Prior to FedEx Kinko's, Mr. Cui worked
for Procter & Gamble China for over 12 years, including two and a half
years working in the United States. He was instrumental in building Procter
& Gamble China's distribution network and retail coverage system. Guangfu
Cui is 38 years old, holds an MBA from Kellogg School of Management at
Northwestern University in Evanston, Illinois, and a BA in Law from Peking
University.
Business Outlook
eLong expects total net revenues for the fourth quarter of 2007 within
the range of RMB73.0 million to RMB80.0 million, an increase of 12% to 22%
from the fourth quarter of 2006.
Note to the Un-audited Interim Consolidated Financial Statements
Financial information in this press release from eLong's un-audited
financial statements was prepared in accordance with generally accepted
accounting principles in the United States.
Safe Harbor Statement
It is currently expected that the Business Outlook will not be updated
until the release of eLong's next quarterly earnings announcement; however,
eLong reserves the right to update its Business Outlook at any time for any
reason.
Statements in this press release concerning eLong's future business,
operating results and financial condition are "forward-looking" statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the Private Securities Litigation Reform Act of
1995. Words such as "anticipate," "believe," "estimate," "expect,"
"forecast," "intend," "may," "plan," "project," "predict," "should" and
"will" and similar expressions as they related to the Company are intended
to identify such forward-looking statements, but are not the exclusive
means of doing so. These forward looking statements are based upon
management's current views and expectations with respect to future events
and are not a guarantee of future performance. Furthermore, these
statements are, by their nature, subject to a number of risks and
uncertainties that could cause actual performance and results to differ
materially from those discussed in the forward-looking statements as a
result of a number of factors. Factors that could affect the Company's
actual results and cause actual results to differ materially from those
included in any forward-looking statement include, but are not limited to,
eLong's historical operating losses, its limited operating history,
declines or disruptions in the travel industry, the recurrence of SARS, an
outbreak of bird flu, eLong's reliance on having good relationships with
hotel suppliers and airline ticket suppliers, our reliance on the Travelsky
GDS system for our air business, the possibility that eLong will be unable
to timely comply with Section 404 of the Sarbanes-Oxley Act of 2002, the
risk that eLong will not be successful in competing against new and
existing competitors, risks associated with Expedia, Inc.'s (Nasdaq: EXPE)
majority ownership interest in eLong and the integration of eLong's
business with that of Expedia's, subsequent revaluations of the Chinese
currency, changes in eLong's management team and other key personnel and
other risks outlined in eLong's filings with the U.S. Securities and
Exchange Commission (or SEC), including eLong's Form 20-F filed with the
SEC in connection with the Company's fiscal year 2006 results. Readers are
cautioned not to place undue reliance on any forward-looking statements,
which speak only as of their dates.
Conference Call
eLong will host a conference call to discuss its third quarter and
fiscal 2007 earnings at November 13, 2007, 7:00 pm Eastern (Beijing/Hong
Kong time: November 14, 2007 at 8:00 am). The management team will be on
the call to discuss quarterly results and highlights and to answer
questions. The toll- free number for U.S. participants is [phone].
The dial-in number for Hong Kong participants is [phone].
International participants can dial [phone]. Pass code: ELONG.
A replay of conference call will be available for one day starting from
8:30 pm Eastern Time on November 13, 2007. US toll-free dial-in number: +1-
800-454-0219, Hong Kong dial in number: [phone], international
dial-in number: [phone]. Pass code: 712100.
Additionally, a live and archived web cast of this call will be
available on the Investor Relations section of the eLong web site at
http://ir.elong.net for three months.
About eLong, Inc.
eLong, Inc. (Nasdaq: LONG) is a leading online travel company in China.
Headquartered in Beijing, eLong has a national presence across China. eLong
uses web-based distribution technologies and a 24-hour call center to
provide consumers with access to travel reservation services. Aiming to
enrich people's lives through the freedom of independent travel, eLong
empowers consumers to make informed choices by providing a one-stop travel
solution and consolidated travel tools and information such as maps,
virtual tours and user ratings. eLong has the capacity to fulfill air
ticket reservations in over 70 major cities across China. In addition to
choice of a wide hotel selection in the Greater China region, eLong offers
Chinese consumers the ability to make bookings at international hotels in
over 140 destinations worldwide. eLong operates the websites
http://www.elong.comandhttp://www.elong.net .
eLong, Inc. CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
IN LOCAL CURRENCY

Three Months Ended Nine Months Ended
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2007 2007 2006 2007 2006
RMB RMB RMB RMB RMB
Revenues
Hotel commissions 64,417 60,162 57,412 173,458 153,250
Air ticketing
commissions 15,585 13,850 11,045 41,484 28,694
Other travel revenue 869 1,400 3,860 4,346 6,945
Travel 80,871 75,412 72,317 219,288 188,889
Other 2,991 3,019 2,263 8,286 5,936
Gross revenues 83,862 78,431 74,580 227,574 194,825

Business tax and
surcharges (4,776) (4,026) (4,064) (12,477) (10,720)
Net revenues 79,086 74,405 70,516 215,097 184,105

Cost of services (20,807) (20,701) (17,124) (59,209) (45,594)
Gross profit 58,279 53,704 53,392 155,888 138,511

Operating expenses
Service development (12,196) (12,257) (10,718) (35,049) (31,353)
Sales and marketing (36,858) (29,313) (25,331) (93,188) (72,534)
General and
administrative (18,277) (13,540) (15,376) (43,005) (49,067)
Amortization of
intangibles (265) (265) (265) (795) (795)
Write-down of property
and equipment and
intangibles -- (526) -- (526) --
Total operating
expenses (67,596) (55,901) (51,690) (172,563) (153,749)
Income/(loss) from
operations (9,317) (2,197) 1,702 (16,675) (15,238)
Other income/(loss) 1,055 (1,053) 3,353 4,330 16,114
Income/(loss) from
continuing operations
before income tax
expense (8,262) (3,250) 5,055 (12,345) 876
Income tax
benefit/(expense ) 861 1,433 (2,199) 2,242 (2,986)
Income/(loss) from
continuing operations (7,401) (1,817) 2,856 (10,103) (2,110)
Discontinued operations
Income from
discontinued
operations -- -- (204) 112 (91)
Income tax expense of
discontinued
operations -- -- 15 (8) (27)
Gain on sale of
discontinued
operations -- -- -- -- 2,650
Total discontinued
operations -- -- (189) 104 2,532

Net income/(loss)
before cumulative
effect of change
in accounting
principles (7,401) (1,817) 2,667 (9,999) 422

Cumulative effect of
change in accounting
principles -- -- -- -- 282

Net income/(loss) (7,401) (1,817) 2,667 (9,999) 704

Basic income/(loss)
per share
Continuing operations (0.15) (0.04) 0.06 (0.20) (0.04)
Discontinued operations 0.00 0.00 0.00 0.00 0.05
Cumulative effect of
change in accounting
principles 0.00 0.00 0.00 0.00 0.00
Basic income/(loss) per
share (0.15) (0.04) 0.06 (0.20) 0.01

Diluted income/(loss)
per share
Continuing operations (0.15) (0.04) 0.05 (0.20) (0.03)
Discontinued operations 0.00 0.00 0.00 0.00 0.05
Cumulative effect of
change in accounting
principles 0.00 0.00 0.00 0.00 0.00
Diluted income/(loss)
per share (0.15) (0.04) 0.05 (0.20) 0.02

Basic income/(loss) per
ADS
Continuing operations (0.30) (0.08) 0.12 (0.40) (0.08)
Discontinued operations 0.00 0.00 0.00 0.00 0.10
Cumulative effect of
change in accounting
principles 0.00 0.00 0.00 0.00 0.00
Basic income/(loss) per
ADS (0.30) (0.08) 0.12 (0.40) 0.02

Diluted income/(loss)
per ADS
Continuing operations (0.30) (0.08) 0.10 (0.40) (0.06)
Discontinued operations 0.00 0.00 0.00 0.00 0.10
Cumulative effect of
change in accounting
principles 0.00 0.00 0.00 0.00 0.00
Diluted income/(loss)
per ADS (0.30) (0.08) 0.10 (0.40) 0.04

Shares used in
computing basic net
income/(loss) per
share 50,766 50,732 50,374 50,728 50,368
Shares used in
computing diluted
net income/(loss)
per share 50,766 50,732 53,878 50,728 53,837

Note that 1ADS = 2
shares

* Share-based
compensation charges
included are as
follows: 3,012 1,760 2,341 7,541 9,094
Cost of services 89 29 32 139 138
Service development 901 569 607 2,146 2,044
Sales and marketing 354 83 113 638 446
General and
administrative 1,668 1,079 1,589 4,618 6,466

* Un-realized foreign
exchange losses 13,696 15,421 11,357 38,730 20,904




eLong, Inc. CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
IN U.S. DOLLARS


Three Months Ended Nine Months Ended

Sept. June Sept. Sept. Sept.
30, 30, 30, 30, 30,
2007 2007 2006 2007 2006
US$ US$ US$ US$ US$
Revenues
Hotel commissions 8,597 7,904 7,264 23,150 19,389
Air ticketing commissions 2,080 1,819 1,397 5,536 3,630
Other travel revenue 116 184 488 580 879
Total travel revenue 10,793 9,907 9,149 29,266 23,898
Other 399 397 286 1,106 751
Gross revenues 11,192 10,304 9,435 30,372 24,649

Business tax and surcharges (637) (529) (514) (1,665) (1,356)
Net revenues 10,555 9,775 8,922 28,707 23,293

Cost of services (2,777) (2,720) (2,166) (7,902) (5,768)
Gross profit 7,778 7,055 6,755 20,805 17,525

Operating expenses
Service development (1,628) (1,610) (1,356) (4,678) (3,967)

Sales and marketing (4,919) (3,851) (3,205)(12,437) (9,177)
General and administrative (2,439) (1,779) (1,945) (5,740) (6,208)
Amortization of intangibles (35) (35) (34) (106) (101)
Write-down of property and
equipment and intangibles -- (69) -- (70) --

Total operating expenses (9,021) (7,344) (6,541)(23,030)(19,453)
Income/(loss) from operations (1,244) (289) 215 (2,225) (1,928)
Other income/(loss) 141 (138) 424 578 2,039
Income/(loss) from continuing
operations before
income tax expense (1,103) (427) 639 (1,647) 111
Income tax benefit/(expense ) 115 188 (278) 299 (378)
Income/(loss) from continuing
operations (988) (239) 361 (1,348) (267)
Discontinued operations
Income from discontinued
operations -- -- (26) 15 (11)
Income tax expense of
discontinued operations -- -- 2 (1) (3)
Gain on sale of discontinued
operations -- -- -- -- 335
Total discontinued operations -- -- (24) 14 321

Net income/(loss) before
cumulative effect of
change in accounting principles (988) (239) 337 (1,334) 54

Cumulative effect of change in
accounting principles -- -- -- -- 36

Net income/(loss) (988) (239) 337 (1,334) 90

Basic income/(loss) per share
Continuing operations (0.020) (0.005) 0.008 (0.027) (0.005)
Discontinued operations 0.000 0.000 0.000 0.000 0.006
Cumulative effect of change in
accounting principles 0.000 0.000 0.000 0.000 0.000
Basic income/(loss) per share (0.020) (0.005) 0.008 (0.027) 0.001

Diluted income/(loss) per share
Continuing operations (0.020) (0.005) 0.006 (0.027) (0.004)
Discontinued operations 0.000 0.000 0.000 0.000 0.006
Cumulative effect of change in
accounting principles 0.000 0.000 0.000 0.000 0.000
Diluted income/(loss) per share (0.020) (0.005) 0.006 (0.027) 0.002

Basic income/(loss) per ADS
Continuing operations (0.040) (0.011) 0.015 (0.053) (0.010)
Discontinued operations 0.000 0.000 0.000 0.000 0.013
Cumulative effect of change in
accounting principles 0.000 0.000 0.000 0.000 0.000
Basic income/(loss) per ADS (0.040) (0.011) 0.015 (0.053) 0.003

Diluted income/(loss) per ADS
Continuing operations (0.040) (0.011) 0.013 (0.053) (0.008)
Discontinued operations 0.000 0.000 0.000 0.000 0.013
Cumulative effect of change in
accounting principles 0.000 0.000 0.000 0.000 0.000
Diluted income/(loss) per ADS (0.040) (0.011) 0.013 (0.053) 0.005

Shares used in computing basic
net income/(loss) per share 50,766 50,732 50,374 50,728 50,368
Shares used in computing
diluted net income/(loss)
per share 50,766 50,732 53,878 50,728 53,837

Note that 1ADS = 2 shares

* Share-based compensation
charges included are
as follows: 402 231 296 1,006 1,151
Cost of services 12 4 4 18 17
Service development 120 75 77 286 259
Sales and marketing 47 11 14 85 56
General and administrative 223 142 201 616 818

* Un-realized foreign
exchange losses 1,828 2,026 1,437 5,169 2,645

Note 1: The conversions of Renminbi (RMB) into United States dollars (USD)
as at the reporting dates are based on the noon buying rate of
USD1.00=RMB7.4928 on September 28, 2007, USD1.00=RMB7.6120 on
June 29, 2007 and USD1.00 = RMB7.904 on September 30, 2006 in the
City of New York for cable transfers of Renminbi as certified for
customs purposes by the Federal Reserve. No representation is
intended to imply that the RMB amounts could have been, or could
be, converted, realized or settled into U.S. dollars at that rate
on the reporting dates.



eLong, Inc. CONSOLIDATED SUMMARY BALANCE SHEET DATA
(UNAUDITED, IN THOUSANDS)

Sept. 30, Dec. 31, Sept. 30, Dec. 31,
2007 2006 2007 2006
RMB RMB US$ US$
ASSETS
Current assets:
Cash and cash equivalents 1,184,056 1,199,323 158,026 153,679
Restricted cash 11,456 -- 1,529 --
Short-term investment 10,041 -- 1,340 --
Accounts receivable, net 40,124 28,237 5,355 3,618
Due from related parties 61 2,099 8 269
Deferred income taxes, net 2,244 708 299 91
Prepaid expenses and
other current assets 12,547 10,384 1,675 1,330
Total current assets
1,260,529 1,240,751 168,232 158,987
Property and equipment,
net 40,021 37,809 5,341 4,845
Goodwill 30,000 30,000 4,004 3,844
Intangible assets, net 2,951 3,746 394 480
Deferred income taxes, net 671 982 90 126
Other non-current assets 21,954 22,029 2,930 2,823
Total assets
1,356,126 1,335,318 180,991 171,105


LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable 57,361 32,753 7,656 4,197
Income taxes payable 1,491 16,757 199 2,147
Due to related parties 3,786 3,374 505 432
Accrued expenses and
other current liabilities 93,624 81,541 12,495 10,449
Total current
liabilities 156,262 134,425 20,855 17,225
Other long-term
liabilities -- 980 -- 126
Deferred income taxes 132 132 18 17
Total liabilities 156,394 135,537 20,873 17,368

Shareholders' equity
Ordinary shares 4,205 4,192 561 537
Additional paid-in
capital 1,311,095 1,301,312 174,981 166,747
Accumulated other
comprehensive income
(loss) 124 (29) 17 (4)
Accumulated deficit (115,692) (105,694) (15,441) (13,543)
Total shareholders'
equity 1,199,732 1,199,781 160,118 153,737
Total liabilities and
shareholders' equity 1,356,126 1,335,318 180,991 171,105



Business Tax Presentation Change Effect (Appendix-1)

As Originally
Q1 2007 Reported As Adjusted Effect of Change
Three months end Three months end Three months end
Mar.31, Mar.31, Mar.31, Mar.31, Mar.31, Mar.31,
2007 2006 2007 2006 2007 2006
RMB RMB RMB RMB RMB RMB
('000) ('000) ('000) ('000) ('000) ('000)

Gross revenues 65,281 53,453 65,281 53,453 -- --

Business tax and
surcharges -- -- (3,675) (3,013)(3,675) (3,013)
Net revenues 65,281 53,453 61,606 50,440 (3,675) (3,013)

Cost of services (17,701) (13,173) (17,701) (13,173) -- --
Gross profit 47,580 40,280 43,905 37,267 (3,675) (3,013)

Operating expenses
Service development (10,594) (10,475) (10,594) (10,475) -- --
Sales and marketing (27,020) (21,849) (27,020) (21,849) -- --
General and
administrative (11,188) (20,185) (11,188) (20,185) -- --
Amortization of
intangibles (265) (265) (265) (265) -- --
Business tax and
surcharges (3,675) (3,013) -- -- 3,675 3,013

Total operating
expenses (52,742) (55,787) (49,067) (52,774) 3,675 3,013

Income/(loss) from
operations (5,162) (15,507) (5,162) (15,507) -- --



Business Tax Presentation Change Effect (Appendix-2)

Q2 2007 As Originally Reported
Three months end Six months end
Jun. 30 Jun. 30 Jun. 30 Jun. 30
2007 2006 2007 2006
RMB('000) RMB('000) RMB('000) RMB('000)

Gross revenues 78,431 66,793 143,713 120,247

Business tax and surcharges -- -- -- --
Net revenues 78,431 66,793 143,713 120,247

Cost of services (20,701) (15,285) (38,403) (28,470)
Gross profit 57,730 51,508 105,310 91,777

Operating expenses
Service development (12,257) (10,094) (22,852) (20,635)
Sales and marketing (29,313) (25,302) (56,331) (47,207)
General and administrative (13,540) (13,355) (24,728) (33,690)
Amortization of intangibles (265) (265) (530) (530)
Write-down of property and equipment
and intangibles (526) -- (526) --
Business tax and surcharges (4,026) (3,643) (7,701) (6,656)

Total operating expenses (59,927) (52,659) (112,668) (108,718)

Income/(loss) from operations (2,197) (1,151) (7,358) (16,941)



Business Tax Presentation Change Effect (Appendix-2)

Q2 2007 As Adjusted
Three months end Six months end
Jun. 30 Jun. 30 Jun. 30 Jun. 30
2007 2006 2007 2006
RMB('000) RMB('000) RMB('000) RMB('000)

Gross revenues 78,431 66,793 143,713 120,247

Business tax and surcharges (4,026) (3,643) (7,701) (6,656)
Net revenues 74,405 63,150 136,012 113,591

Cost of services (20,701) (15,285) (38,403) (28,470)
Gross profit 53,703 47,865 97,609 85,121

Operating expenses
Service development (12,257) (10,094) (22,852) (20,635)
Sales and marketing (29,313) (25,302) (56,331) (47,207)
General and administrative (13,540) (13,355) (24,728) (33,690)
Amortization of intangibles (265) (265) (530) (530)
Write-down of property and equipment
and intangibles (526) -- (526) --
Business tax and surcharges -- -- -- --

Total operating expenses (55,902) (49,016) (104,968) (102,063)

Income/(loss) from operations (2,197) (1,151) (7,358) (16,941)



Business Tax Presentation Change Effect (Appendix-2)

Q2 2007 Effect of Change
Three months end Six months end
Jun. 30 Jun. 30 Jun. 30 Jun. 30
2007 2006 2007 2006
RMB('000) RMB('000) RMB('000) RMB('000)

Gross revenues -- -- -- --

Business tax and surcharges (4,026) (3,643) (7,701) (6,656)
Net revenues (4,026) (3,643) (7,701) (6,656)

Cost of services -- -- -- --
Gross profit (4,026) (3,643) (7,701) (6,656)

Operating expenses
Service development -- -- -- --
Sales and marketing -- -- -- --
General and administrative -- -- -- --
Amortization of intangibles -- -- -- --
Write-down of property and equipment
and intangibles -- -- -- --
Business tax and surcharges 4,026 3,643 7,701 6,656

Total operating expenses 4,026 3,643 7,701 6,656

Income/(loss) from operations -- -- -- --




For more information, please contact:

eLong, Inc.
Investor Relations
Tel: [phone] x6606
Email: [e-mail]



SOURCE eLong, Inc.