The company gained a gross margin of 82 percent in Q2, compared to 72 percent for the same period last year and 80 percent for the previous quarter, according to its unaudited financial results.

Net income attributable to Ctrip's shareholders for Q2 was 327 million yuan (49.5 million U.S. dollars), compared to net loss of 521 million yuan (78.9 million U.S. dollars) for the same period last year and net income of 82 million yuan (12.4 million U.S. dollars) for Q1, the company reported.

"Ctrip maintained healthy revenue growth and achieved continual improvement in operating efficiency," Ctrip CEO Sun Jie said. "We are confident that Ctrip will generate long-term value for shareholders in the years to come."

The company expected its net revenue for the next quarter to grow by approximately 35-40 percent year-on-year.

Strengthening its position in lower-tier cities has been Ctrip's focus of action. The company said both its new customer acquisitions and user engagement in lower-tier cities improved significantly in Q2.

Ctrip and Qunar, a domestic rival acquired by Ctrip last year, had opened over 400 offline retail stores by the end of the quarter, with approximately 200 more in the pipeline, the company reported.

Liang Jianzhang, chairman of Ctrip, said the company will continue to expand into lower-tier cities and invest in international markets.

The company said both its accommodation reservation business and transportation ticketing business delivered healthy growth in Q2.

Email: tanyuhan@nbd.com.cn