Baidu, Qunar Agreed to terminate Zhixin Cooperation Agreement

On June 1, 2015, Baidu

and Qunar

agreed to terminate the Zhixin cooperation agreement with immediate effect. We believe the termination is in the best interests of the shareholders of both companies. Under this agreement, in consideration of the Zhixin page views Baidu delivered to us in 2014, Baidu was granted warrants exercisable for 11.45 million of our class B ordinary shares and Baidu fully exercised such warrants today. There will be no additional warrants granted to Baidu under this agreement. In connection with the termination of the Zhixin cooperation agreement, Baidu agreed to pay us a fee of RMB207 million. Baidu's undertaking and support for us, including their non-compete commitment in the travel space, will remain unchanged after the termination of the Zhixin cooperation agreement, and we do not expect the termination of this agreement to have any material impact upon our operations or financial condition. On June 1, 2015, we also entered into a business cooperation agreement with Baidu, under which Baidu has agreed to grant Qunar an exclusive right to integrate hotel information and products into the PC and mobile app versions of Baidu Maps. Under this agreement, Qunar will display location-based hotel data through the Baidu Maps interface. Users can click on the displayed hotels to view hotels and to complete bookings. This cooperation will allow Qunar and Baidu to serve travelers with highly relevant real-time hotel information. This agreement will expire in May 2016 subject to the renewal negotiation between both parties.