Ctrip Reports Fourth Quarter and Full Year

Ctrip.com International, Ltd. , a leading consolidator of hotel
accommodations and airline tickets in China, today announced its financial
results for the fourth quarter and the full year ended 31 December 2003.
Highlights for the fourth quarter of 2003:—Net revenues grew by 116%
year-on-year and by 22% quarter-on-quarter to RMB67.4 million (US$8.1
million).—Operating income increased by 148% year-on-year to RMB22.2
million (US$2.7 million). It decreased by 17% quarter-on-quarter due to
higher operating expenses.—Net income was RMB24.6 million (US$3.0
million), a 329% increase year-on-year and 20% increase
quarter-on-quarter. The diluted earnings per share were RMB0.88 (US$0.11).
Highlights for the full year 2003:—Net revenues were RMB173.1 million
(US$20.9 million), a 73% increase year-on-year.—Operating income grew
by 150% from 2002 to RMB58.1 million (US$7.0 million).—Net income was
RMB53.8 million (US$6.5 million), a 279% increase from 2002. The diluted
earnings per share were RMB0.23 (US$0.03).—Gross margin remained at 85%
and operating margin increased to 34%.

“Year 2003 has been a great year for Ctrip. The travel industry in China
continued to grow rapidly despite the adverse impact of SARS. Ctrip has
further strengthened its industry leader position in the travel
consolidator market in China which is still in its infancy. We have
experienced substantial growth across all major product lines by expanding
travel supplier network and establishing a more effective and focused
marketing scheme. We continued to diversify into different business lines.
Our air ticketing business was further expanded to make a more meaningful
contribution to our revenues. We also started to make inroads into the
packaged tour business to take advantage of China’s outbound traffic
boom.” said James Liang, Chairman and CEO of Ctrip.

Commenting on Ctrip’s earnings, Neil Shen, President and CFO of Ctrip,
said, “Both the top line and the bottom line continued to grow strongly in
the fourth quarter of 2003. We are pleased to see year 2003 end with
extraordinary growth of earnings, which was underpinned by a robust growth
in the number of hotel room nights booked and air tickets sold. Our
scalable and profitable business platform provides Ctrip with a high
degree of operational leverage. This enhances Ctrip’s profitability and
makes Ctrip more resilient in managing industry downturns. During the SARS
period, despite revenues being down by 42% from the first quarter of 2003,
we still managed to have almost breakeven operating income.”

For the fourth quarter of 2003, Ctrip reported net revenues of RMB67.4
million (US$8.1 million), an increase of 116% from the same period in 2002
and 22% from the previous quarter of 2003.

For the full year ended 31 December 2003, net revenues were RMB173.1
million (US$20.9 million), a 73% increase from 2002.

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Hotel reservation revenues totaled RMB57.9 million for the fourth quarter
of 2003 (US$7.0 million), representing a 96% increase from the same period
in 2002 and a 19% increase from the third quarter of 2003. The total
number of hotel room nights booked was nearly 900,000 for the fourth
quarter of 2003, compared to around 750,000 room nights in the third
quarter of 2003 and less than 500,000 room nights in the fourth quarter of
2002.

For the full year ended 31 December 2003, the hotel reservation revenues
were RMB153.4 million (US$18.5 million), a 59% increase from 2002. The
hotel reservation revenues accounted for 84% of the total revenues in
2003, compared to 92% in 2002. The total number of hotel room nights
booked was about 2.4 million in 2003, compared to about 1.6 million room
nights booked in 2002.

Air ticket booking revenues for the fourth quarter of 2003 were RMB8.7
million (US$ 1.1 million), representing a 284% increase from the same
period in 2002 and a 27% increase from the previous quarter of 2003. The
total number of air tickets sold in the fourth quarter of 2003 was nearly
250,000, compared to around 180,000 in the third quarter of 2003 and about
80,000 air tickets sold in the fourth quarter of 2002.

For the full year ended 31 December 2003, the air ticket booking revenues
were RMB20.3 million (US$2.5 million), a 263% increase from 2002. The air
ticket booking revenues accounted for 11% of the total revenues in 2003,
compared to 5% in 2002. The total number of air tickets sold was about
600,000 in 2003.

The gross margin remained at 85% in 2003. The operating margin was 34% in
2003, compared to 23% in 2002.

Operating expenses for the fourth quarter of 2003 were RMB34.0 million
(US$4.1 million), an increase of 92% from the same period last year and a
55% increase from the previous quarter.

Operating expenses for the full year ended 31 December 2003 were RMB89.4
million (US$10.8 million), a 42% increase from 2002.

Operating income for the fourth quarter of 2003 was RMB22.2 million
(US$2.7 million), an increase of 148% from the same period last year. It
decreased by 17% from the third quarter of 2003 due to higher operating
expenses incurred in the fourth quarter of 2003.

For the full year ended 31 December 2003, the operating income was RMB58.1
million (US$7.0 million), a 150% increase from RMB23.3 million in 2002.

Net income for the fourth quarter was RMB24.6 million (US$ 3.0 million),
representing an increase of 329% from the same period in 2002 and 20% from
the previous quarter of 2003. The diluted earning per share was RMB0.88
(US$0.11) for the quarter.

For the year ended 31 December 2003, the net income was RMB53.8 million
(US$6.5 million), representing a 279% increase from 2002. The diluted
earning per share was RMB0.23 (US$0.03) for the year.

For the year ended 31 December 2003, cash flow from operating activities
was RMB74.1 million (US$9.0 million), compared to RMB23.4 million in 2002.
As of 31 December 2003, the cash balance was RMB472.0 million (US$57.0
million), compared to RMB38.9 million as of 31 December 2002.

Ctrip estimates its total net revenues for the first quarter of 2004 to be
between RMB54.6 million (US$6.6 million) and RMB56.3 million (US$6.8
million). The net income is expected to be between RMB14.9 million (US$1.8
million) and RMB15.7 million (US$1.9 million). The earnings per share on a
fully diluted basis are expected to be between RMB0.46 (US$0.06) and
RMB0.48 (US$0.06) for the first quarter of 2004.

Ctrip’s management team will host a conference call at 8:00PM Eastern Time
on 23 February 2004 (or 9:00AM 24 February 2004 in the Shanghai/HK time
zone) following the announcement.

The conference call will be available on Webcast live and replay at:
http://english.ctrip.com/Public/IR.asp?ID=17. The call will be archived
for 12 months at this website.

The dial-in details for the Live conference call: U.S. Toll Free Number
+1-800-884-5695, International dial-in number +1-617-786-2960; Passcode
12515392.

A replay of the call will be available for 72 hours after the conclusion
of the conference call. The dial-in details for the replay: U.S. Toll Free
Number +1-888-286-8010, International dial-in number +1-617-801-6888;
Passcode 39244186.
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