BEIJING, Aug. 30,
2024 /PRNewswire/ -- TuanChe Limited ("TuanChe,"
"Company," "we" or "our") (NASDAQ: TC), a leading integrated
automotive marketplace in China,
today announced its unaudited financial results for the six months
ended June 30, 2024.
Key First Half 2024 Financial and Operating Metrics
- Net revenues were RMB32.3 million
(US$4.4 million).
- Gross profit was RMB22.4 million
(US$3.1 million).
- The number of auto shows organized during the first half of
2024 was 63 in 47 cities across China.
- The number of automobile sale transactions facilitated during
the first half of 2024 was 10,460, and the gross merchandise volume
of new automobiles sold during the first half of 2024 was
RMB1.7 billion (US$0.2 billion).
"Intensified competition and the complex macro environment have
posed unprecedented challenges to our business since the beginning
of 2024," Mr. Wei Wen, TuanChe's
Chairman and CEO, commented. "Amid lackluster consumer sentiment,
our net revenues came in at RMB32.3
million for the first half of 2024. Meanwhile, our continued
focus on cost management and operating efficiency refinement drove
a 5.8 percentage point increase in gross margin and a 14.0%
decrease in loss from operations year over year. Looking ahead, we
will continue developing innovative business initiatives and
expanding business collaborations to navigate the competitive
landscape and create long-term value for our shareholders."
Mr. Simon Li, TuanChe's Chief
Financial Officer, added, "Despite topline pressure and evolving
macro dynamics, our efforts to enhance operating leverage and
streamline cost structure have begun to bear fruit. In the first
half of 2024, our adjusted net loss and adjusted EBITDA both
narrowed year over year by 25.9% and 27.3%, respectively. We will
remain committed to optimizing operating efficiency, setting the
stage for our future development."
Unaudited First Half 2024 Financial Results
Net Revenues
Net revenues in the first half of 2024 decreased by 64.9% to
RMB32.3 million (US$4.4 million) from RMB92.2 million in the same period of the prior
year.
- Offline marketing services. Net revenues generated from
auto shows decreased by 71.2% to RMB19.9
million (US$2.7 million) in
the first half of 2024 from RMB69.3
million in the same period of the prior year, and net
revenues generated from special promotion events decreased by 62.0%
to RMB0.2 million (US$31 thousand) in the first half of 2024 from
RMB0.6 million in the same period of
the prior year. The decrease in revenues from offline marketing
services was primarily due to a reduction in customer marketing
budgets, resulting in a decrease in the number of offline
activities.
- Referral service for a commercial bank. Net revenues
generated from referral service for a commercial bank decreased by
100.0% to nil in the first half of 2024 from RMB2.6 million in the same period of the prior
year, primarily because the Company has ceased operation of the
referral services since April 1,
2022.
- Online marketing services. Net revenues generated from
online marketing services decreased by 70.7% to RMB2.6 million (US$0.4
million) in the first half of 2024 from RMB8.8 million in the same period of the prior
year, primarily due to the decrease in the live streaming events
held by the Company as the change in the key customers resulted in
a failure to continue cooperations.
- Other services. Net revenues from other services
decreased by 12.7% to RMB9.6 million
(US$1.3 million) in the first half of
2024 from RMB11.0 million in the same
period of the prior year, primarily due to the decrease in referral
services.
Gross Profit
Gross profit decreased by 61.7% to RMB22.4 million (US$3.1
million) in the first half of 2024 from RMB58.4 million in the same period of the prior
year. Gross margin was 69.2% in the first half of 2024 compared to
63.4% in the same period of the prior year, primarily attributable
to the change in our revenue composition.
Total Operating Expenses and Loss from
Operations
Total operating expenses decreased by 38.5% to RMB69.8 million (US$9.6
million) in the first half of 2024 from RMB113.6 million in the same period of the prior
year.
- Selling and marketing expenses decreased by 54.7% to
RMB36.5 million (US$5.0 million) in the first half of 2024 from
RMB80.7 million in the same period of
the prior year, primarily due to a decrease in promotion expenses
as a result of decreased volume of offline events.
- General and administrative expenses increased by 2.6% to
RMB24.3 million (US$3.3 million) in the first half of 2024 from
RMB23.7 million in the same period of
the prior year, primarily due to an increase in general and
administrative staff compensation expenses, partially offset the
decrease in allowance for doubtful accounts.
- Research and development expenses increased by 13.4% to
RMB8.7 million (US$1.2 million) in the first half of 2024 from
RMB7.7 million in the same period of
the prior year, primarily due to an increase in research and
development staff compensation expenses.
- Impairment of long-lived assets decreased by 80.2% to
RMB0.3 million (US$41 thousand) in the first half of 2024 from
RMB1.5 million in the same period of
the prior year, primarily due to a decrease in impairment in
relation to right-of-use assets.
As a result of the foregoing, loss from operations decreased by
14.0% to RMB47.5 million
(US$6.5 million) in the first half of
2024 from RMB55.2 million in the same
period of the prior year.
Net loss attributable to the Company's Shareholders and
Non-GAAP Measures
Net loss attributable to the Company's shareholders in the first
half of 2024 increased by 32.5% to RMB40.7
million (US$5.6 million) from
RMB30.7 million in the same period of
the prior year. Basic and diluted loss per ordinary share were both
RMB0.1 (US$0.01) in the first half of 2024 compared with
RMB0.08 in the same period of the
prior year.
Adjusted net loss attributable to the Company's shareholders in
the first half of 2024 decreased by 25.9% to RMB27.2 million (US$3.7
million) from RMB36.7 million
in the same period of the prior year. Adjusted basic and diluted
net loss per ordinary share were both RMB0.06 (US$0.01)
in the first half of 2024 compared with RMB0.09 in the same period of the prior year.
(1)
Adjusted EBITDA was a loss of RMB26.8
million (US$3.7 million) in
the first half of 2024 compared with a loss of RMB36.8 million in the same period of the prior
year. (1)
|
(1) For
details on the calculation of and reconciliation to the nearest
GAAP measures for each of adjusted net loss attributable to the
Company's shareholders, adjusted net loss per ordinary share and
adjusted EBITDA, please refer to "Use of Non-GAAP Financial
Measures" and "Reconciliation of Non-GAAP and GAAP
Results."
|
Balance Sheet and Cash Flow
As of June 30, 2024, the Company
had RMB5.0 million (US$0.7 million) in cash and cash equivalents and
RMB4.3 million (US$0.6 million) in restricted cash. Net cash used
in operating activities in the first half of 2024 was RMB11.1 million (US$1.5
million) compared with net cash used in operating activities
of RMB52.4 million in the same period
of the prior year.
Exchange Rate
This press release contains translations of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to U.S. dollars in this press release were made at a
rate of RMB7.2672 to US$1.00, the noon buying rate in effect on
June 28, 2024, in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
No representation is made that the Renminbi amounts could have
been, or could be, converted, realized or settled into U.S. dollars
at that rate on June 28, 2024, or at
any other rate.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements include,
without limitation, the Company's business plans and development,
business outlook, as well as the length and severity of the
COVID-19 pandemic and its impact on the Company's business and
industry, which can be identified by terminology such as "may,"
"will," "expect," "anticipate," "aim," "estimate," "intend,"
"plan," "believe," "potential," "continue," "is/are likely to" or
other similar expressions. Such statements are based upon
management's current expectations and current market and operating
conditions, and relate to events that involve known or unknown
risks, uncertainties and other factors, all of which are difficult
to predict and many of which are beyond the Company's control.
Further information regarding these and other risks, uncertainties
or factors is included in the Company's filings with the U.S.
Securities and Exchange Commission. The Company does not undertake
any obligation to update any forward-looking statement as a result
of new information, future events or otherwise, except as required
under law.
Use of Non-GAAP Financial Measures
To supplement the Company's unaudited condensed consolidated
interim financial information, which is presented in accordance
with U.S. GAAP, the Company also uses adjusted net loss
attributable to the Company's shareholders, adjusted net loss per
ordinary share and adjusted EBITDA as additional non-GAAP financial
measures. The Company presents these non-GAAP financial measures
because they are used by the Company's management to evaluate its
operating performance. The Company also believes that these
non-GAAP financial measures provide useful information to investors
and others in understanding and evaluating the Company's
consolidated results of operations in the same manner as its
management and in comparing financial results across accounting
periods and to those of the Company's peer companies.
The Company defines adjusted net loss as net loss excluding
share-based compensation expenses, impairment of long-lived assets
and change in fair value of warrant liability. The Company defines
adjusted net loss per ordinary share as adjusted net loss divided
by the weighted average number of ordinary shares. The Company
defines adjusted EBITDA as net loss excluding depreciation and
amortization, interest income, net, share-based compensation
expenses, impairment of long-lived assets and change in fair value
of warrant liability. The Company believes that these non-GAAP
financial measures provide useful information to investors and
others in understanding and evaluating the Company's operating
results. These non-GAAP financial measures are adjusted for the
impact of items that the Company does not consider indicative of
the operational performance of the Company's business, and should
not be considered in isolation or construed as an alternative to
net loss or any other measure of performance or as an indicator of
the Company's operating performance.
In addition, the non-GAAP financial measures are not defined
under U.S. GAAP and are not presented in accordance with U.S. GAAP.
The non-GAAP financial measures have limitations as analytical
tools. One of the key limitations of using these non-GAAP financial
measures is that they do not reflect all items of income and
expense that affect the Company's operations. Depreciation and
amortization, interest income, net, share-based compensation
expenses, impairment of long-lived assets and change in fair value
of warrant liability have been and may continue to be incurred in
the Company's business and are not reflected in the presentation of
these non-GAAP measures. Further, these non-GAAP financial measures
may not be comparable to similarly titled measures presented by
other companies. Other companies may calculate similarly titled
measures differently, limiting their usefulness as comparative
measures to the Company's data. The Company encourages investors
and others to review the Company's financial information in its
entirety and not rely on a single financial measure. Investors are
encouraged to compare the historical non-GAAP financial measures
with the most directly comparable GAAP measures.
About TuanChe
Founded in 2010, TuanChe Limited (NASDAQ: TC) is a leading
integrated automotive marketplace in China. TuanChe offers services to connect
automotive consumers with various industry players such as
automakers, dealers and other automotive service providers. TuanChe
provides automotive marketing and transaction related services by
integrating its online platforms with offline sales events. Through
its integrated marketing solutions, TuanChe turns individual and
isolated automobile purchase transactions into large-scale
collective purchase activities by creating an interactive
many-to-many environment. Furthermore, leveraging its proprietary
data analytics and advanced digital marketing system, TuanChe's
online marketing service platform helps industry customers increase
the efficiency and effectiveness of their advertising placements.
For more information, please contact ir@tuanche.com.
For investor and media inquiries, please contact:
TuanChe Limited
Investor Relations
Tel: +86 (10) 6397-6232
Email: ir@tuanche.com
Piacente Financial Communications
Brandi Piacente
Tel: +1 (212) 481-2050
+86 (10) 6508-0677
Email: tuanche@tpg-ir.com
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SOURCE TuanChe Limited