The Shanghai-based company said net income increased to $8.4 million (64.9 million yuan), or 25 cents per American Depositary Share, beating the $7.38 million forecast by two analysts polled by Reuters Estimates.

Net revenue rose 49 percent to a record $30.1 million on increases in hotel reservations, air ticket and packaged tours businesses. The record high revenues came even as the first quarter is traditionally the slowest period for business travel.

The company, which launched its shares on Nasdaq in 2003, expects the rapid growth in domestic travel and leisure industry to attract more competition, but reckons its strong branding and service will help it maintain the current pace of growth.

"Branding, new products and service will help us differentiate us from others," Min Fan, the firm's chief executive, said during a teleconference with analysts.

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