• VIEs are also referred as "Consolidated Affiliated Entities" in Ctrip's annual report
  • Key Excerpts
  • VIE Structure
  • VIE Risks
  • VIE Revenue
  1. Represents approximately 45% of the aggregate voting interest. See “Item 4.A. Information on the Company — History and Development of the Company.”
  2. Indirectly owned through Queen’s Road Travel Information Limited, a Hong Kong company.
  3. Indirectly owned through Ctrip Travel Holding, a Cayman Islands company, and its Hong Kong subsidiary, Ctrip Travel Holding (Hong Kong) Limited.
  4. Hui Cao and Hui Wang hold 60% and 40% of the equity interest in Beijing Qu Na Information Technology Co., Ltd., respectively.
  5. Min Fan and Qi Shi hold 99.5% and 0.5% of the equity interest in Shangai International Agency Co., Ltd., respectively.
  6. Min Fan and Tao Yang hold 90% and 10% of the equity interest in Guangzhou Ctrip Travel Agency Co., Ltd., respectively.
  7. Min Fan and Tao Yang hold 90% and 10% of the equity interest in Shenzhen Ctrip Travel Agency Co., Ltd., respectively.
  8. Min Fan and Qi Shi hold 99.5% and 0.5% of the equity interest in Chengdu Ctrip Travel Service Co., Ltd., respectively.
  9. Min Fan and Maohua Sun hold 89.8% and 10.2% of the equity interest in Shanghai Ctrip Commerce Co., Ltd., respectively.
  10. Indirectly owned through Chengdu Ctrip Information Technology Co., Ltd., a PRC company.

Key excerpts from filing(s) - related to VIEs

Due to foreign ownership restrictions in the air-ticketing, travel agency and value-added telecommunications industries, we conduct part of our business through contractual arrangements with our consolidated affiliated Chinese entities. These entities hold the licenses and approvals that are essential for our business operations.
We are a Cayman Islands incorporated company and a foreign person under PRC law.
Some of our directors and officers were also the principal shareholders of our consolidated affiliated Chinese entities as of the date of this annual report.
We cannot assure you that PRC government authorities will not ultimately take a view contrary to the opinion of our PRC legal counsel due to the lack of official interpretation and clear guidance.
We were aware that a China-based U.S.-listed company announced in 2012 that it was subject to SEC’s investigation, which it believed was related to the consolidation of its consolidated affiliated Chinese entities. Following the announcement, that issuer’s stock price declined significantly.
In July 2006, MIIT issued the Circular on Strengthening the Administration of Foreign Investment in Value-added Telecommunication Business, which stipulates that a domestic company that holds a value-added telecommunications business license is prohibited from leasing, transferring or selling the license to foreign investors in any form, and prohibited from providing any assistance in forms of resources, sites or facilities to foreign investors that conduct value-added telecommunications business illegally in China. Furthermore, the relevant trademarks and domain names used in the value-added telecommunications business must be owned by the domestic value-added telecommunications license holders. Due to lack of further interpretation by MIIT, it remains unclear what impact the above circular will have on us or other PRC Internet companies that have adopted the same or similar corporate and contractual structures as ours.

Risks identified in filing(s) - related to VIEs

PRC laws and regulations restrict foreign investment in the air-ticketing, travel agency and value-added telecommunications businesses, and substantial uncertainties exist with respect to the application and implementation of PRC laws and regulations.
If our consolidated affiliated Chinese entities violate our contractual arrangements with them, our business could be disrupted, our reputation may be harmed and we may have to resort to litigation to enforce our rights, which may be time-consuming and expensive.
The principal shareholders of our consolidated affiliated Chinese entities have potential conflict of interest with us, which may adversely affect our business.
Substantial uncertainties exist with respect to the enactment timetable, interpretation and implementation of draft PRC Foreign Investment Law and how it may impact the viability of our current corporate structure, corporate governance and business operations.
Our contractual arrangements with our consolidated affiliated Chinese entities may result in adverse tax consequences to us.
Our subsidiaries and consolidated affiliated Chinese entities in China are subject to restrictions on paying dividends or making other payments to us, which may restrict our ability to satisfy our liquidity requirements.
If we exercise the option to acquire equity ownership in our consolidated affiliated Chinese entities, such ownership transfer require approval from or filings with PRC governmental authorities and subject to taxation, which may result in substantial costs to us.
We face uncertainty with respect to indirect transfer of equity interests in PRC resident enterprises by their non-PRC holding companies.
Proceedings instituted by SEC against the Big Four PRC-based accounting firms, including our independent registered public accounting firm, could result in our financial statements being determined to not be in compliance with the requirements of the Securities Exchange Act of 1934, as amended.
Year Total Revenue VIEs Revenue Contribution of VIEs %
RMB (in millions)
2014 7,347 4,138 56.32%
2015 10,897 6,385 58.59%
2016 19,228 8,706 45.28%

Ownership and Voting power details

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