UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
For the Month of February 2009
Commission File Number: 000-50984
eLong, Inc.
 
(Exact Name of Registrant as Specified in its Charter)
Block B, Xingke Plaza Building
10 Middle Jiuxianqiao Road
Chaoyang District
Beijing 100016, People’s Republic of China
 
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F þ .       Form 40-F o .
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
o       No þ
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
o       No þ
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o       No þ .
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                     
 
 

 

 


 

On February 26, 2009 (Beijing time), eLong, Inc. (the “Company”) issued a press release regarding its fourth quarter 2008 and full year 2008 unaudited financial results. The Company’s press release is furnished as Exhibit 99.1 . In addition, on February 26, 2009 (Beijing time), the Company’s management team hosted a conference call to discuss the press release.
The information herein and in the press releases is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended or the Exchange Act, except as expressly set forth by specific reference in such filing.
Any statements contained in this document and any exhibits hereto 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 operating losses, declines or disruptions in the travel industry, the international financial crisis, slowdown in the PRC economy, the recurrence of SARS, an outbreak of bird flu or other disease, 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 continue timely compliance 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, fluctuations in the value of the Chinese currency, changes in eLong’s management team and other key personnel, changes in third-party distribution partner relationships and other risks outlined in eLong’s filings with the U.S. Securities and Exchange Commission, including eLong’s Annual Report on Form 20-F for the fiscal year ended December 31, 2007. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of their dates. eLong is not under any obligation and does not intend to publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise.
Exhibits .
     
99.1
  Press Release issued by the Company on February 26, 2009 (Beijing Time): “eLong, Inc. Reports Fourth Quarter 2008 and Full Year 2008 Unaudited Financial Results.”

 

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
DATED: February 26, 2009  ELONG, INC.
 
 
  By:   /s/ Chris Chan    
    Name:   Chris Chan   
    Title:   Chief Financial Officer   
 

 

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Exhibit 99.1
eLong, Inc. Reports Fourth Quarter and Full Year 2008
Unaudited Financial Results
BEIJING, China — February 26, 2009 — eLong, Inc. (Nasdaq: LONG), a leading online travel service provider in China, today reported unaudited financial results for the fourth quarter and full year ended December 31, 2008.
Highlights — Fourth Quarter 2008
 
Total gross revenues for the fourth quarter increased 4% year-on-year to RMB91.0 million and net revenues increased 4% year-on-year to RMB85.7 million.
 
 
Travel revenues before business tax and surcharges comprised of hotel, air and other travel product and service revenues increased 3% in the fourth quarter year-on-year to RMB87.3 million.
 
   
Travel revenues before business tax and surcharges by product were as follows (figures in RMB 000’s; some numbers may not add due to rounding):
                                         
            %             %     Y/Y  
    Q4   2008     Total     Q4   2007     Total     Growth  
Hotel commissions
    67,913       78 %     67,345       80 %     1 %
Air ticketing commissions
    19,316       22 %     15,971       19 %     21 %
Other travel revenue
    74             1,242       1 %     -94 %
 
                             
Total travel revenue
    87,303       100 %     84,558       100 %     3 %
 
                             
 
Operating loss in the fourth quarter was RMB10.3 million compared to operating income of RMB2.1 million in the prior year period , driven primarily by greater sales and marketing expenses.
 
 
Net loss from continuing operations in the fourth quarter decreased by RMB7.4 million year-on-year to RMB8.2 million , driven primarily by a RMB28.9 million decrease in foreign currency exchange losses, partially offset by increased sales and marketing, and a decrease of RMB7.0 million in interest income.
 
 
Cash, cash equivalents and short term investments as of December 31, 2008 were RMB957.4 million (USD$140.3 million). Short term investments of RMB635.8 million (USD$93.2 million) consisting of time deposits of six or nine months duration held in commercial banks located outside mainland China .
 
 
From the commencement of the Company’s share buyback program in March 2008 through December 31, 2008, the Company repurchased 2,000,000 ADSs at a cost of USD$15.0 million. The Company does not intend to make further repurchases at this time.
Highlights — Full Year 2008
 
Total gross revenues in 2008 increased 10% year-on-year to RMB348.4 million and net revenues increased 10% year-on-year to RMB327.3 million.
 
 
Travel revenues before business tax and surcharges comprised of hotel, air and other travel product and service revenues increased 9% in 2008 to RMB331.9 million.
 
   
Travel revenues before business tax and surcharges by product were as follows (figures in RMB 000’s; some numbers may not add due to rounding):

 

-4-


 

                                         
            %             %     Y/Y  
    2008     Total     2007     Total     Growth  
Hotel commissions
    253,458       77 %     240,803       79 %     5 %
Air ticketing commissions
    77,205       23 %     57,456       19 %     34 %
Other travel revenue
    1,284             5,588       2 %     -77 %
 
                             
Total travel revenue
    331,947       100 %     303,847       100 %     9 %
 
                             
 
Operating loss increased year-on-year by RMB27.1 million to RMB41.7 million in 2008 , driven primarily by greater sales and marketing expenses, and to a lesser extent by increased service development expense.
 
 
Net loss from continuing operations increased year-on-year by RMB50.9 million to RMB76.6 million in 2008 , driven primarily by greater sales and marketing expenses and a RMB26.5 million decrease in interest income, partially offset by a RMB4.8 million decrease in foreign currency exchange losses.
“In 2008, we have fixed the fundamentals of the Company and established our core competencies in our on-line hotel and air businesses.” said Guangfu Cui, Chief Executive Officer of eLong. “In 2009, our goal is to demonstrate our competitiveness in the marketplace.”
“In 2009, while cognizant of the uncertain economic climate, we will continue to make prudent investments in information technology and marketing to position the company for long term success.” said Chris Chan, Chief Financial Officer of eLong. “At the same time, we will take a disciplined approach to our spending and streamline our general and administrative and other costs.”
Mr. Cui also stated, “We are aware of the recent Schedule 13D filing by Oak Pacific Interactive (or “OPI”) which stated that OPI had acquired approximately 5 million of our ordinary shares. We have had preliminary discussions with OPI relating to potential commercial arrangements, and welcome the interest and support of all our shareholders. We remain confident in the long term potential of the Chinese on-line travel market.”
Business Results
Hotel
Hotel commissions increased 1% for the fourth quarter of 2008 compared to the prior year quarter, primarily due to higher volume, which was partially offset by lower commission per room night. Room nights booked through eLong increased 3% year-on-year to 1,052,000, while commission per room night decreased to RMB65 from RMB66 in the prior year quarter.
Hotel commissions for full year 2008 increased 5% compared to 2007, primarily due to higher volume. Room nights booked through eLong in 2008 increased 6% to 3,945,000, while commission per room night of RMB64 declined RMB0.7 compared to 2007.
Air
Air ticketing commissions increased 21% for the fourth quarter of 2008 compared to the prior year quarter, driven by a 24% year-on-year increase in air segments to 463,000, and an increase of 11 basis points in the average percent commission to 5.7%, partially offset by a decrease of 5% in the average ticket price to RMB734 compared to the prior year quarter.
Air ticketing commissions for full year 2008 increased 34% compared to 2007 primarily driven by a 26% increase in air segments to 1,788,000, and an increase of 57 basis points in the average percent commission to 5.6%, partially offset by a decrease of 4% in the average ticket price to RMB765.

 

-5-


 

Profitability
Gross margin in the fourth quarter of 2008 and full year 2008 was 70% compared to 72% in the fourth quarter and full year 2007, driven primarily by the higher growth of lower margin air revenue relative to hotel revenue.
Operating expenses for the fourth quarter of 2008 and 2007 were as follows (figures in RMB 000’s; some numbers may not add due to rounding):
                                         
            % Net             % Net     Y/Y  
    Q4   2008     Revenue     Q4   2007     Revenue     Growth  
Service development
    12,401       14 %     13,554       16 %     -9 %
Sales and marketing
    45,100       53 %     33,783       41 %     33 %
General and administrative
    12,032       14 %     9,000       11 %     34 %
Amortization of intangibles
    197             265             -26 %
Write-down of property and equipment and intangibles
    753       1 %     513       1 %     47 %
 
                             
Total operating expenses
    70,483       82 %     57,115       69 %     23 %
 
                             
Operating expenses for full year 2008 and 2007 were as follows (figures in RMB 000’s; some numbers may not add due to rounding):
                                         
            % Net             % Net     Y/Y  
    2008     Revenue     2007     Revenue     Growth  
Service development
    52,584       16 %     48,602       16 %     8 %
Sales and marketing
    163,528       50 %     126,971       43 %     29 %
General and administrative
    53,652       16 %     52,006       17 %     3 %
Amortization of intangibles
    849             1,060             -20 %
Write-down of property and equipment and intangibles
    1,385       1 %     1,039             33 %
 
                             
Total operating expenses
    271,998       83 %     229,678       76 %     18 %
 
                             
Total operating expenses increased 23% for the fourth quarter of 2008 compared to the fourth quarter of 2007. Operating expenses were 82% of net revenues, an increase of 13 percentage points compared to the prior year quarter.
Total operating expenses increased 18% for full year 2008 compared to 2007. Operating expenses were 83% of net revenues, an increase of 7 percentage points compared to 2007.
Service development expense is composed of expenses related to technology and our product offerings, including our website, platforms and other related systems development. Service development expense decreased 9% in the fourth quarter 2008 compared to the prior year quarter, mainly driven by decreases in expensed information technology labor costs and outside service fees. In the fourth quarter 2008, service development expense decreased by 2 percentage points to 14% of net revenues compared to 16% in the fourth quarter of 2007.
Full year 2008 service development expense increased 8% over full year 2007 service development expense, and was unchanged as a percentage of net revenues in 2008 compared to 2007.

 

-6-


 

Sales and marketing expenses for the fourth quarter 2008 increased 33% over the prior year quarter, mainly driven by higher sales commissions, increased loyalty point awards and higher online marketing expenses. Sales and marketing expenses increased by 12 percentage points to 53% of net revenues in the fourth quarter 2008 compared to the same quarter of the prior year.
Sales and marketing expenses for full year 2008 increased 29% over full year 2007, and increased by 7 percentage points to 50% of net revenues when compared to 2007. The increase was primarily driven by increased sales commissions and increased marketing and promotion.
General and administrative expenses for the fourth quarter 2008 increased 34% over the prior year quarter, mainly driven by an increase in professional fees and restructuring charges. General and administrative expenses as a percentage of net revenues increased by 3 percentage points year-on-year to 14% in the fourth quarter of 2008.
General and administrative expenses for full year 2008 increased 3% over full year 2007, primarily due to increased employee compensation. General and administrative expenses as a percentage of net revenues decreased by 1 percentage point to 16% in the full year 2008.
Other income, which represents interest income, foreign exchange gains/losses and other income/expense, was RMB8.0 million in the fourth quarter of 2008, due to interest income of RMB6.2 million in the fourth quarter of 2008 and a foreign currency exchange gain of RMB1.7 million resulting from the depreciation of the Renminbi against the US dollar during the quarter.
Other loss for full year 2008 was RMB31.9 million, primarily due to a foreign exchange loss of RMB61.1 million resulting from the appreciation of the Renminbi during the year, partially offset by interest income of RMB29.0 million for full year 2008.
Net loss for the fourth quarter 2008 decreased by RMB7.4 million over the prior year quarter to RMB8.2 million.
Net loss for full year 2008 increased by RMB51.0 million to RMB76.6 million.
Basic and diluted loss per ADS for the fourth quarter of 2008 was RMB0.34 compared to basic and diluted loss per ADS of RMB0.62 in the prior year quarter.
Basic and diluted loss per ADS for full year 2008 was RMB3.08 compared to basic and diluted loss per ADS of RMB1.02 in full year 2007.
Business Outlook
eLong expects net revenues, net of business tax and surcharges, for the first quarter of 2009 to be within the range of RMB74 million to RMB82 million, equal to a decline of 4% to an increase of 7% compared to the first quarter of 2008.
Notes to the Unaudited Interim Consolidated Financial Statements
To supplement the financial measures calculated in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes certain non-GAAP financial measures including basic loss per ADS, diluted loss per ADS, share-based compensation charges and unrealized foreign exchange losses/(gains). The Company believes these non-GAAP financial measures are important to help investors understand the Company’s current financial performance and future prospects and compare business trends among different reporting periods on a consistent basis. These non-GAAP financial measures should be considered in addition to financial measures presented in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in accordance with GAAP.

 

-7-


 

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 operating losses, declines or disruptions in the travel industry, the international financial crisis, slowdown in the PRC economy, the recurrence of SARS, an outbreak of bird flu or other disease, 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 continue timely compliance 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, fluctuations in the value of the Chinese currency, changes in eLong’s management team and other key personnel, changes in fourth-party distribution partner relationships and other risks outlined in eLong’s filings with the U.S. Securities and Exchange Commission (or SEC), including eLong’s Annual Report on Form 20-F for the fiscal year ended December 31, 2007. 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 fourth quarter 2008 earnings on February 26, 2009 at 8:00 AM Beijing time (February 25, 2009, 7:00 PM EST). The management team will be on the call to discuss the quarterly results and to answer questions. The toll-free number for U.S. participants is +1-800-365-8460. The dial-in number for Hong Kong participants is +852-2258-4000. International participants can dial +1-210-795-0492. Pass code: eLong.
A replay of the call will be available for one day between 8:30 pm Eastern Time on February 25, 2009 and 8:30 pm Eastern Time on February 26, 2009. The toll-free number for U.S. callers is +1-888-485-2359; the Hong Kong dial in number is +852-2802-5151, and the dial-in number for international callers is +1-203-369-4581. The pass code for the replay is 753900.
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://www.elong.net/AboutUs/conference.html for three months.

 

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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 decisions such as maps, virtual tours and user ratings. eLong has the capacity to fulfill air ticket reservations in over 80 major cities across China. In addition to a selection of more than 7,000 thousand hotels in China, eLong offers consumers the ability to make bookings at international hotels in more than 100 countries worldwide.
eLong operates websites including http://www.elong.com and http://www.elong.net .
For further information:
eLong, Inc.
Investor Relations
ir@corp.elong.com
+86-10-6436-7570

 

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eLong, Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
                                                         
    Three Months Ended     Year Ended  
    Dec. 31,     Sep. 30,     Dec. 31,     Dec. 31,     Dec. 31,     Dec. 31,     Dec. 31,  
    2007     2008     2008     2008     2007     2008     2008  
    RMB     RMB     RMB     USD     RMB     RMB     USD  
Revenues:
                                                       
Hotel commissions
    67,345       65,152       67,913       9,954       240,803       253,458       37,150  
Air ticketing commissions
    15,971       19,929       19,316       2,831       57,456       77,205       11,317  
Other travel revenue
    1,242       306       74       11       5,588       1,284       188  
 
                                         
Travel
    84,558       85,387       87,303       12,796       303,847       331,947       48,655  
Other
    3,264       4,603       3,699       542       11,550       16,479       2,415  
 
                                         
Gross revenues
    87,822       89,990       91,002       13,338       315,397       348,426       51,070  
 
                                                       
Business tax and surcharges
    (5,333 )     (5,887 )     (5,302 )     (777 )     (17,810 )     (21,113 )     (3,095 )
 
                                         
Net revenues
    82,489       84,103       85,700       12,561       297,587       327,313       47,975  
 
                                                       
Cost of services
    (23,288 )     (24,628 )     (25,473 )     (3,733 )     (82,498 )     (96,996 )     (14,217 )
 
                                         
Gross profit
    59,201       59,475       60,227       8,828       215,089       230,317       33,758  
 
                                                       
Operating expenses:
                                                       
Service development
    (13,554 )     (14,155 )     (12,401 )     (1,818 )     (48,602 )     (52,584 )     (7,707 )
Sales and marketing
    (33,783 )     (50,654 )     (45,100 )     (6,610 )     (126,971 )     (163,528 )     (23,969 )
General and administrative
    (9,000 )     (13,849 )     (12,032 )     (1,764 )     (52,006 )     (53,652 )     (7,864 )
Amortization of intangibles
    (265 )     (217 )     (197 )     (29 )     (1,060 )     (849 )     (124 )
Write-down of property and equipment and intangibles
    (513 )     (510 )     (753 )     (110 )     (1,039 )     (1,385 )     (203 )
 
                                         
Total operating expenses
    (57,115 )     (79,385 )     (70,483 )     (10,331 )     (229,678 )     (271,998 )     (39,867 )
 
                                         
 
                                                       
Income/(loss) from operations
    2,086       (19,910 )     (10,256 )     (1,503 )     (14,589 )     (41,681 )     (6,109 )
Other income(loss)
    (14,548 )     1,402       7,995       1,172       (10,217 )     (31,918 )     (4,679 )
Loss from continuing operations before income tax expense
    (12,462 )     (18,508 )     (2,261 )     (331 )     (24,806 )     (73,599 )     (10,788 )
Income tax benefit(expense)
    (3,127 )     2,963       (5,940 )     (871 )     (885 )     (2,994 )     (439 )
 
                                         
 
                                                       
Loss from continuing operations
    (15,589 )     (15,545 )     (8,201 )     (1,202 )     (25,691 )     (76,593 )     (11,227 )
Discontinued operations:
                                                       
Income from discontinued operations
                            112              
Income tax expense of discontinued operations
                            (8 )            
Total discontinued operations
                            104              
 
                                         
Net loss
    (15,589 )     (15,545 )     (8,201 )     (1,202 )     (25,587 )     (76,593 )     (11,227 )
 
                                         
 
                                                       
Basic loss per share
    (0.31 )     (0.31 )     (0.17 )     (0.025 )     (0.51 )     (1.54 )     (0.226 )
Diluted loss per share
    (0.31 )     (0.31 )     (0.17 )     (0.025 )     (0.51 )     (1.54 )     (0.226 )
 
                                                       
Basic loss per ADS
    (0.62 )     (0.62 )     (0.34 )     (0.050 )     (1.02 )     (3.08 )     (0.452 )
Diluted loss per ADS
    (0.62 )     (0.62 )     (0.34 )     (0.050 )     (1.02 )     (3.08 )     (0.452 )
 
                                                       
Shares used in computing basic net loss per share
    50,846       49,610       48,076       48,076       50,758       49,784       49,784  
 
                                                       
Shares used in computing diluted net loss per share
    50,846       49,610       48,076       48,076       50,758       49,784       49,784  
 
                                                       
Note: 1ADS = 2 shares
                                                       
 
                                                       
Share-based compensation charges included are as follows:
    (1,538 )     2,428       523       76       6,002       7,124       1,045  
Cost of services
    72       179       (79 )     (12 )     211       325       48  
Service development
    838       684       37       5       2,984       2,320       340  
Sales and marketing
    42       338       (151 )     (22 )     680       972       142  
General and administrative
    (2,490 )     1,227       716       105       2,127       3,507       515  
 
                                                       
Un-realized foreign exchange losses/(gains)
    27,188       4,996       (1,723 )     (253 )     65,918       61,081       8,953  
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=RMB6.8225 on December 31, 2008, USD1.00=RMB6.7899 on September 30, 2008 and USD1.00=RMB7.2946 on December 31, 2007 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 such rates on the reporting dates.

 

-10-


 

eLong, Inc.
UNAUDITED CONDENSED CONSOLIDATED SUMMARY BALANCE SHEET DATA

(IN THOUSANDS)
                         
    Dec. 31, 2007     Dec. 31, 2008     Dec. 31, 2008  
    RMB     RMB     US$  
ASSETS
                       
Current assets:
                       
Cash, cash equivalents
    1,138,447       321,541       47,130  
Short-term investments
    19,120       635,810       93,193  
Restricted assets
    11,274              
Accounts receivable, net
    41,138       42,471       6,225  
Due from related parties
    924       518       76  
Prepaid expenses and other current assets
    15,645       23,660       3,468  
 
                 
 
                       
Total current assets
    1,226,548       1,024,000       150,092  
Property and equipment, net
    43,962       52,484       7,693  
Goodwill
    30,000       30,000       4,397  
Intangible assets, net
    2,192       943       138  
Other non-current assets
    28,966       30,538       4,476  
 
                 
 
                       
Total assets
    1,331,668       1,137,965       166,796  
 
                 
 
                       
LIABILITIES AND SHAREHOLDERS’ EQUITY
                       
Current liabilities:
                       
Accounts payable
    57,957       34,146       5,005  
Income taxes payable
    1,238       1,152       169  
Due to related parties
    4,529       8,120       1,190  
Accrued expenses and other current liabilities
    83,233       81,889       12,003  
 
                 
 
                       
Total current liabilities
    146,957       125,307       18,367  
Other long-term liabilities
          477       70  
Deferred income taxes
    100              
 
                 
 
                       
Total liabilities
    147,057       125,784       18,437  
 
                 
 
                       
Shareholders’ equity
                       
Ordinary shares
    4,208       4,221       619  
Treasury Stock
          (103,393 )     (15,155 )
Additional paid-in capital
    1,308,047       1,315,590       192,831  
Accumulated deficit
    (127,644 )     (204,237 )     (29,936 )
 
                 
 
                       
Total shareholders’ equity
    1,184,611       1,012,181       148,359  
 
                 
 
                       
Total liabilities and shareholders’ equity
    1,331,668       1,137,965       166,796  
 
                 

 

-11-

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