TuanChe Announces Unaudited Second Quarter 2020 Financial Results

BEIJING, Sept. 18, 2020 /PRNewswire/ -- TuanChe Limited ("TuanChe," "Company," "we" or "our") (NASDAQ: TC), a leading omni-channel automotive marketplace in China, today announced its unaudited financial results for the second quarter ended June 30, 2020.

Key Second Quarter 2020 Financial and Operating Metrics Compared with the Prior Year Period

The Company's financial and operational results for the second quarter of 2020 have been materially and adversely impacted by the COVID-19 pandemic:

    --  Net revenues decreased by 73.1% to RMB54.7 million (US$7.7 million) from
        RMB203.5 million.
    --  Gross profit decreased by 70.1% to RMB43.0 million (US$6.1 million) from
        RMB144.0 million. Gross margin increased to 78.6% from 70.8%.
    --  Quarterly number of organized auto shows across China decreased by 82.3%
        from 344 in 186 cities to 61 in 56 cities. Quarterly number of special
        promotion events decreased by 48.7% from 154 to 79.
    --  Quarterly number of automobile sale transactions facilitated decreased
        by 82.2% to 19,656 from 110,444. Quarterly Gross Merchandise Volume of
        new automobiles sold decreased by 81.6% to RMB2.8 billion (US$0.4
        billion) from RMB15.2 billion.
    --  Sales operations covered 134 cities as of June 30, 2020, compared with
        146 cities as of March 31, 2020 and 155 cities as of June 30, 2019.

First Half 2020 Financial and Operating Metrics Compared with the Prior Year Period

    --  Net revenues decreased by 80.3% to RMB64.4 million (US$9.1 million) from
        RMB326.4 million.
    --  Gross profit decreased by 79.1% to RMB48.7 million (US$6.9 million) from
        RMB232.9 million. Gross margin increased to 75.6% from 71.4%.
    --  The number of auto shows organized during the first half of 2020
        decreased by 87.2% to 67 in 60 cities from 522 auto shows in 203 cities
        across China. The number of special promotion events organized during
        the first half of 2020 decreased by 44.6% to 92 from 166.
    --  The number of automobile sales transactions facilitated during the first
        half of 2020 decreased by 87.5% to 21,961 from 175,085, and the Gross
        Merchandise Volume of new automobiles sold during the first half of 2020
        decreased by 86.9% to RMB3.1 billion (US$0.4 billion) from RMB23.6
        billion.

Mr. Wei Wen, Chairman and Chief Executive Officer of TuanChe, commented, "In the second quarter, we are pleased to report a 63.3% year-over-year reduction of net losses attributable to the Company's shareholders primarily driven by the acceleration of our rigorous cost measures and online strategy, albeit a year-over-year decrease of 73.1% in net revenues and a year-over-year decrease of 70.1% in gross profit due to material COVID-19 related impact. Our offline auto shows and special promotion events have gradually resumed since May and are now mostly back to normal in some cities we operate. We will continue to assess and adjust the pace of resumption of our offline business and focus on generating higher ROIs. Our revenues from virtual dealership, online marketing services and others increased by 180.0% year-over-year, primarily driven by successful online sales events that were held during the second quarter and, most notably, the live streaming promotion events we conducted in collaboration with TMall Auto during the week of June 18(th), 2020. Such encouraging results were propelled by our unique integration of touch points and channels for online customer acquisition and marketing with offline promotional activities, which not only creates a seamless and holistic shopping experience for consumers, but also helps auto OEMs and dealers effectively reach customers and achieve increased sales conversion rates. As live streaming promotion events become the central component for the acceleration of full digitalization of automotive marketing, we see ourselves increasingly well-positioned to capture the enormous opportunity associated with changes in the automotive retail industry."

Mr. Chenxi Yu, Deputy Chief Financial Officer of TuanChe, added, "While the COVID-19 pandemic was effectively contained in China, the Company continued to hold fewer auto shows and special promotion events during the second quarter of 2020 than usual, in accordance with all national and local regulatory guidelines on COVID-19 prevention and control and for the best interest of public health. This resulted in a 73.1% year-over-year decline in net revenues to RMB54.7 million in the second quarter. Amidst the COVID-19 and macroeconomic challenges, we remained focused on optimizing our cost structure, which resulted in a 66.8% year-over-year reduction in operating expenses, and significantly reduced our net losses both year-over-year and sequentially. We are closely monitoring the circumstances and will adjust our operation strategy accordingly, while keeping a disciplined cost structure in order to deliver positive returns for our shareholders in the long run."

Recent Business Developments

    --  COVID-19 Impact

In order to fully support the government's guidance on COVID-19 pandemic prevention and control and in the interest of public health, the Company held very few offline events in April 2020. Since the end of May 2020, the Company has gradually resumed offline operations in some cities, with the pace of recovery subject to the ongoing development of the COVID-19 pandemic and the associated government guidance. Recent development of the COVID-19 pandemic in China, such as the cases reported in Beijing in June and in Xinjiang Uygur Autonomous Region and Dalian city in the third quarter, continues to generate uncertainties over the Company's business, results of operations, financial condition and cash flows. Furthermore, as the business operations of industry customers have also been disrupted by the COVID-19 pandemic, the Company continues to experience delays in collecting accounts receivables from these customers and recorded an increased bad debt expense due to liquidity issues of certain customers. See "Business Outlook" for the Company's current and preliminary views on the impact of COVID-19 on the auto market and operational conditions for the third quarter. The Company also continues to closely monitor both the development of the pandemic and regulatory responses and restrictions as well as the impact on the Company's business, results of operations, financial condition and cash flows. The Company will also continue to implement measures to adjust the pace of business operations and conserve resources and may resort to other costs cutting measures in response to cash flow management.

Unaudited Second Quarter 2020 Financial Results

Net Revenues

Net revenues in the second quarter of 2020 decreased by 73.1% to RMB54.7 million (US$7.7 million) from RMB203.5 million in the prior year period, primarily due to a 82.3% year-over-year decrease of revenues generated from offline marketing services to RMB34.9 million (US$4.9 million) from RMB196.4 million in the prior year period, and partially offset by the strong growth of revenues generated from virtual dealerships, online marketing services and others.

    --  Offline marketing services. Net revenues generated from auto shows
        decreased by 82.5% to RMB33.4 million (US$4.7 million) in the second
        quarter of 2020 from RMB190.6 million in the prior year period, and net
        revenues generated from special promotion events decreased by 74.5% to
        RMB1.5 million (US$0.2 million) in the second quarter of 2020 from
        RMB5.8 million in the prior year period, primarily due to the adverse
        impacts of the COVID-19 pandemic.
    --  Virtual dealership, online marketing services and others. Net revenues
        generated from virtual dealership, online marketing services and others
        increased by 180.0% to RMB19.9 million (US$2.8 million) in the second
        quarter of 2020 from RMB7.1 million in the prior year period, primarily
        due to our continuous expansion of online marketing services, including
        commencement of live streaming promotion events and revenues generated
        from our acquisition of Longye International Limited in January 2020.

Gross Profit

Gross profit decreased by 70.1% to RMB43.0 million (US$6.1 million) in the second quarter of 2020 from RMB144.0 million in the prior year period. Gross margin increased to 78.6% in the second quarter of 2020 from 70.8% in the prior year period, primarily attributable to the change in the revenue mix.

Total Operating Expenses and Loss from Continuing Operations

Total operating expenses decreased by 66.8% to RMB84.9 million (US$12.0 million) in the second quarter of 2020 from RMB255.5 million in the prior year period.

    --  Selling and marketing expenses decreased by 77.7% to RMB48.6 million
        (US$6.9 million) in the second quarter of 2020 from RMB217.5 million in
        the prior year period, primarily due to decreases in promotion expenses
        and staff compensation as a result of control measures taken by the
        Company and reduced offline events.
    --  General and administrative expenses decreased by 0.3% to RMB28.0 million
        (US$4.0 million) in the second quarter of 2020 from RMB28.1 million in
        the prior year period, primarily due to the Company's cost control
        measures.
    --  Research and development expenses decreased by 16.3% to RMB8.3 million
        (US$1.2 million) in the second quarter of 2020 from RMB9.9 million in
        the prior year period, primarily due to the Company's cost control
        measures.

As a result of the foregoing, loss from continuing operations was RMB41.8 million (US$5.9 million) in the second quarter of 2020 compared with RMB111.4 million in the prior year period.

Net loss attributable to the Company's Shareholders and Non-GAAP Measures

Net loss attributable to the Company's shareholders in the second quarter of 2020 decreased by 63.3% to RMB40.0 million (US$5.7 million) from RMB108.9 million in the prior year period. Basic and diluted loss per ordinary share from continuing operations were both RMB0.13 (US$0.02) in the second quarter of 2020 compared with RMB0.36 in the prior year period.

Adjusted net loss attributable to the Company's shareholders was RMB32.8 million (US$4.6 million) in the second quarter of 2020 compared with RMB29.3 million in the prior year period. Adjusted basic and diluted net loss per ordinary share were both RMB0.11 (US$0.02) in the second quarter of 2020 compared with RMB0.10 in the prior year period.((1))

Adjusted EBITDA was a loss of RMB32.1 million (US$4.5 million) in the second quarter of 2020 compared with a loss of RMB30.4 million in the prior year period.( (1))


             (1)For details on the calculation of
              and reconciliation to the nearest
              GAAP measures for each of adjusted
              net income/(loss) attributable to
              the Company's shareholders,
              adjusted net income/(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, 2020, the Company had cash and cash equivalents, time deposits, and short-term investment of RMB200.4 million (US$28.4 million). Net cash used in operating activities in the second quarter of 2020 was RMB5.7 million (US$0.8 million) compared with net cash used in operating activities of RMB7.7 million in the prior year period.

Unaudited First Half 2020 Financial Results

Net Revenues

Net revenues in the first half of 2020 decreased by 80.3% to RMB64.4 million (US$9.1 million) from RMB326.4 million in the prior year period, primarily due to a 87.1% year-over-year decrease in revenue generated from offline marketing services to RMB40.9 million (US$5.8 million) from RMB316.0 million in the prior year period, partially offset by the accelerated growth of new business initiatives, including virtual dealership and online marketing services.

    --  Offline marketing services. Revenues generated from auto shows in the
        first half of 2020 decreased by 87.4% to RMB39.1 million (US$5.5
        million) from RMB309.4 million in the prior year period, and revenues
        generated from special promotion events in the first half of 2020
        decreased by 73.0% to RMB1.8 million (US$0.3 million) from RMB6.6
        million in the prior year period, primarily due to the adverse impacts
        of the COVID-19 pandemic.
    --  Virtual dealership, online marketing services and others. Revenue
        generated from virtual dealership, online marketing services and others
        increased significantly to RMB23.6 million (US$3.3 million) in the first
        half of 2020 from RMB10.4 million in the prior year period, primarily
        due to our continuous expansion of online marketing services, including
        commencement of live streaming promotion events and revenues generated
        from our acquisition of Longye International Limited in January 2020.

Gross Profit

Gross profit in the first half of 2020 decreased by 79.1% to RMB48.7 million (US$6.9 million) from RMB232.9 million in the prior year period. Gross margin increased to 75.6% in the first half of 2020 from 71.4% in the prior year period, primarily attributable to the change in the revenue mix.

Total Operating Expenses and Loss from Continuing Operations

Total operating expenses in the first half of 2020 decreased by 59.8% to RMB149.5 million (US$21.2 million) from RMB372.0 million in the prior year period.

    --  Selling and marketing expenses in the first half of 2020 decreased by
        73.5% to RMB80.3 million (US$11.4 million) from RMB303.6 million in the
        prior year period, primarily due to the decreases in staff compensation
        and promotion expenses as a result of cost control measures taken by the
        Company and reduced offline events.
    --  General and administrative expenses in the first half of 2020 increased
        by 2.6% to RMB52.3 million (US$7.4 million) from RMB51.0 million in the
        prior year period, primarily due to the increases in allowance for
        doubtful accounts and amortization.
    --  Research and development expenses in the first half of 2020 decreased by
        2.8% to RMB16.9 million (US$2.4 million) from RMB17.4 million in the
        prior year period, primarily due to the Company's cost control measures.

Loss from continuing operations was RMB100.8 million (US$14.3 million) in the first half of 2020 compared to RMB139.1 million in the prior year period.

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 2020 was RMB96.5 million (US$13.7 million) compared to RMB136.2 million in the prior year period. Basic and diluted loss per ordinary share from continuing operations were both RMB0.32(US$0.05) in the first half of 2020 compared to RMB0.46 in the prior year period.

Adjusted net loss attributable to the Company's shareholders was RMB84.6 million (US$12.0 million) in the first half of 2020 compared to an adjusted net loss of RMB44.8 million in the prior year period. Adjusted basic and diluted loss per ordinary share were both RMB0.28(US$0.04) in the first half of 2020 compared to adjusted basic and diluted earnings per ordinary share, which were both RMB0.15 in the prior year period.( (1))

Adjusted EBITDA was a loss of RMB82.8 million (US$11.7 million) in the first half of 2020 compared to an adjusted EBITDA of RMB48.2 million in the prior year period.( (1))


               (1)For details on the calculation of
                and reconciliation to the nearest
                GAAP measures for each of adjusted
                net income/(loss) attributable to
                the Company's shareholders,
                adjusted net income/(loss) per
                ordinary share and adjusted EBITDA,
                please refer to "Use of Non-GAAP
                Financial Measures" and
                "Reconciliation of Non-GAAP and
                GAAP Results."

Business Outlook

For the third quarter of 2020, the Company expects net revenues to range from approximately RMB90.0 million to RMB95.0 million, representing a year-over-year approximate decrease of 33.6% to 29.9%. This is primarily attributable to the estimated declining number of offline events that is expected to be held in the third quarter of 2020 (including auto shows and special promotion events) due to the COVID-19 pandemic.

This forecast reflects the Company's current and preliminary views on the market and operational conditions as well as the influence of the COVID-19 pandemic, which are subject to change.

Share Repurchase Program

On June 17, 2019, TuanChe announced that its board of directors had authorized a share repurchase program of up to US$20.0 million worth of the Company's ADSs for a period not to exceed 12 months and beginning on June 17, 2019. The Company had repurchased 427,738 ADSs for approximately US$2.0 million under this program.

Conference Call Information

TuanChe's management will hold a conference call on Friday, September 18, 2020, at 8:00 A.M. Eastern Time or 8:00 P.M. Beijing Time on the same day to discuss the financial results. Listeners may access the call by dialing the following numbers:



              International:                      +1-412-902-4272



              US Toll Free:                       +1-888-346-8982



              Mainland China:                     400-120-1203



              Hong Kong, China:                   800-905-945

The replay will be accessible through September 25, 2020, by dialing the following numbers:



              International:             
              +1-412-317-0088



              US Toll Free:              
              +1-877-344-7529



              Access Code:                                  10147683

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.tuanche.com/.

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 RMB7.0651 to US$1.00, the noon buying rate in effect on June 30, 2020 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 30, 2020, 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 condensed consolidated quarterly financial information which are presented in accordance with U.S. GAAP, the Company also uses adjusted net income/(loss) attributable to the Company's shareholders, adjusted net income/(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 income/(loss) as net income/(loss) excluding the impact of share-based compensation expenses and impairment of investment. The Company defines adjusted net income/(loss) per ordinary share as adjusted net income/(loss) divided by the weighted average number of ordinary shares. The Company defines adjusted EBITDA as net income/(loss) excluding the impact of depreciation and amortization, interest income/(expenses), net, share-based compensation expenses and impairment of investment. 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 income/(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. Interest income or expenses, depreciation and amortization, share-based compensation expenses and impairment of investment 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 omni-channel 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. TuanChe also provides virtual dealership services by connecting automakers and franchised dealerships with secondary dealers, which ultimately helps automakers penetrate and expand into lower-tier cities. 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
Cynthia Tan
Tel: +86 (10) 6398-6232
Email: ir@tuanche.com

The Piacente Group, Inc.
Brandi Piacente
Tel: +1 (212) 481-2050
Email: tuanche@tpg-ir.com

Ross Warner
Tel: +86 (10) 6508-0677
Email: tuanche@tpg-ir.com


                                                                               
     
                TUANCHE LIMITED


                                                                             
     
       CONDENSED CONSOLIDATED BALANCE SHEETS




                                                                             
     
       (Amount in thousands, except as noted)


                                                                                                
              
                As of



                                                                                          
              
                December 31, 2019        June 30, 2020



                                                                                                 
              
                RMB           
     
           RMB      
     
          US$


                                                                                              
              
                (Audited)             (Unaudited)       (Unaudited)



           
                ASSETS



           
                Current assets:



           Cash and cash equivalents                                                                                          193,920            141,983            20,096



           Restricted cash                                                                                                      1,529              2,710               384



           Short-term investment                                                                                                                  8,900             1,260



           Time deposits                                                                                                       69,762             49,557             7,014



           Accounts receivable, net                                                                                            72,391             50,061             7,086



           Prepayment and other current assets                                                                                193,782             86,459            12,237



           
                Total current assets                                                                                  531,384            339,670            48,077



           
                Non-current assets:



           Property, equipment and software, net                                                                               20,360              6,733               953



           Intangible assets                                                                                                                     23,888             3,381



           Long-term investments                                                                                                7,874              8,625             1,221



           Goodwill                                                                                                                             115,414            16,339



           Other non-current assets                                                                                             7,577                313                44



           
                Total non-current assets                                                                               35,811            154,973            21,938



           
                Total assets                                                                                          567,195            494,643            70,015



           
                LIABILITIES AND SHAREHOLDERS' EQUITY



           
                Current liabilities:



           Accounts payable                                                                                                     5,825              3,816               540



           Advances from customers                                                                                              4,805             15,222             2,155



           Short-term borrowings                                                                                                                  3,000               425



           Salary and welfare benefits payable                                                                                 68,025             52,542             7,437



           Other taxes payable                                                                                                 22,494             21,810             3,087



           Current portion of deferred revenue                                                                                                    1,269               180



           Other current liabilities                                                                                           40,913             30,665             4,341



           
                Total current liabilities                                                                             142,062            128,324            18,165



           
                Non-current liabilities:



           Deferred revenue                                                                                                                       2,379               337



           Deferred tax liability                                                                                                                 5,967               845



           Other non-current liabilities                                                                                        2,158              1,910               271



           
                Total non-current liabilities                                                                           2,158             10,256             1,453



           
                Total liabilities                                                                                     144,220            138,580            19,618



           
                Shareholders' equity:



           Class A ordinary shares                                                                                                173                178                25



           Class B ordinary shares                                                                                                 35                 35                 5



           Treasury stock                                                                                                    (47,888)          (47,888)          (6,778)



           Additional paid-in capital                                                                                       1,187,577          1,216,391           172,169



           Accumulated deficit                                                                                              (718,666)         (815,151)        (115,377)



           Accumulated other comprehensive income                                                                               2,403              3,279               464



           
                Total equity attributable to equity shareholders of                                                   423,634            356,844            50,508
      the company



           Non-controlling interests                                                                                            (659)             (781)            (111)



           
                Total shareholders' equity                                                                            422,975            356,063            50,397



           
                TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                            567,195            494,643            70,015


                                                                                                    
            
                TUANCHE LIMITED


                                                                                                
       
              CONSOLIDATED STATEMENTS OF OPERATIONS




                                                                                              
       
       (Amount in thousands, except share and per share data)




                                                                                                                                                             For the three months ended June 30,



                                                                                                                                                                    2019                                   2020



                                                                                                                                               
              
          RMB                       
         
         RMB      
     
         US$


                                                                                                                                                             (Unaudited)                           (Unaudited)      (Unaudited)



           
                Continuing operations



           
                Net revenues



           Offline Marketing Services:



              Auto shows                                                                                                                                        190,607                                 33,371             4,723



              Special promotion events                                                                                                                            5,801                                  1,482               210



           Virtual dealership, online marketing services and others                                                                                               7,106                                 19,895             2,816




           
                Total net revenues                                                                                                                      203,514                                 54,748             7,749





           Cost of revenues                                                                                                                                    (59,469)                              (11,702)          (1,656)






           
                Gross profit                                                                                                                            144,045                                 43,046             6,093






           
                Operating expenses:



              Selling and marketing expenses                                                                                                                  (217,509)                              (48,577)          (6,876)



              General and administrative expenses                                                                                                              (28,109)                              (28,023)          (3,966)



              Research and development expenses                                                                                                                 (9,860)                               (8,255)          (1,168)




           
                Total operating expenses                                                                                                              (255,478)                              (84,855)         (12,010)




           
                Loss from continuing operations                                                                                                       (111,433)                              (41,809)          (5,917)



           
                Other expenses:



              Interest income, net                                                                                                                                1,885                                    484                69



              Exchange gain/ (loss)                                                                                                                                 187                                  (130)             (18)



           Investment (loss)/income                                                                                                                               (794)                                   219                31



              Others, net                                                                                                                                         1,178                                    996               141



           
                Loss from continuing operations before income taxes                                                                                   (108,977)                              (40,240)          (5,694)



              Income tax expense                                                                                                                                                                          164                23




           
                Net loss from continuing operations                                                                                                   (108,977)                              (40,076)          (5,671)



           
                Net loss                                                                                                                              (108,977)                              (40,076)          (5,671)



           
                Net loss attributable to the TuanChe Limited's shareholders                                                                           (108,896)                              (39,970)          (5,656)




           
                Net loss attributable to the NCI                                                                                                           (81)                                 (106)             (15)




           
                Net loss                                                                                                                              (108,977)                              (40,076)          (5,671)



           
                Other comprehensive income:



           Foreign currency translation adjustments                                                                                                               8,541                                    (6)              (1)




           
                Total other comprehensive income/ (loss)                                                                                                  8,541                                    (6)              (1)




           
                Total comprehensive loss                                                                                                              (100,436)                              (40,082)          (5,672)



           
                Comprehensive loss attributable to:



           Equity shareholders of the company                                                                                                                 (100,355)                              (39,976)          (5,657)




           Non-controlling interests                                                                                                                               (81)                                 (106)             (15)




           
                Net loss attributable to the TuanChe Limited's ordinary shareholders
      per share from continuing operations



              Basic                                                                                                                                              (0.36)                                (0.13)           (0.02)



              Diluted                                                                                                                                            (0.36)                                (0.13)           (0.02)



           
                Weighted average number of ordinary shares



              Basic                                                                                                                                         298,742,143                            303,332,885       303,332,885



              Diluted                                                                                                                                       298,742,143                            303,332,885       303,332,885


                                                                                                    
            
                TUANCHE LIMITED


                                                                                                
       
              CONSOLIDATED STATEMENTS OF OPERATIONS




                                                                                              
       
       (Amount in thousands, except share and per share data)




                                                                                                                                                             For the six months ended June 30,



                                                                                                                                                                    2019                                 2020



                                                                                                                                               
              
          RMB                       
       
         RMB      
     
         US$


                                                                                                                                                             (Unaudited)                         (Unaudited)      (Unaudited)



           
                Continuing operations



           
                Net revenues



           Offline Marketing Services:



              Auto shows                                                                                                                                        309,375                               39,061             5,529



              Special promotion events                                                                                                                            6,609                                1,787               253



           Virtual dealership, online marketing services and others                                                                                              10,398                               23,591             3,339




           
                Total net revenues                                                                                                                      326,382                               64,439             9,121





           Cost of revenues                                                                                                                                    (93,439)                            (15,716)          (2,224)






           
                Gross profit                                                                                                                            232,943                               48,723             6,897






           
                Operating expenses:



              Selling and marketing expenses                                                                                                                  (303,643)                            (80,314)         (11,368)



              General and administrative expenses                                                                                                              (51,002)                            (52,323)          (7,406)



              Research and development expenses                                                                                                                (17,372)                            (16,888)          (2,390)




           
                Total operating expenses                                                                                                              (372,017)                           (149,525)         (21,164)




           
                Loss from continuing operations                                                                                                       (139,074)                           (100,802)         (14,267)



           
                Other expenses:



              Interest income, net                                                                                                                                4,713                                1,451               205



              Exchange (loss)/ gain                                                                                                                               (939)                                 590                84



           Investment (loss)/income                                                                                                                             (1,075)                                  52                 7



              Impairment of investment                                                                                                                          (1,000)



              Others, net                                                                                                                                         1,105                                1,586               224



           
                Loss from continuing operations before income taxes                                                                                   (136,270)                            (97,123)         (13,747)



              Income tax expense                                                                                                                                                                        516                73




           
                Net loss from continuing operations                                                                                                   (136,270)                            (96,607)         (13,674)



           
                Net loss                                                                                                                              (136,270)                            (96,607)         (13,674)



           
                Net loss attributable to the TuanChe Limited's shareholders                                                                           (136,189)                            (96,485)         (13,657)




           
                Net loss attributable to the NCI                                                                                                           (81)                               (122)             (17)



           
                Net loss                                                                                                                              (136,270)                            (96,607)         (13,674)



           
                Other comprehensive income:



           Foreign currency translation adjustments                                                                                                               1,416                                  876               124




           
                Total other comprehensive income                                                                                                          1,416                                  876               124




           
                Total comprehensive loss                                                                                                              (134,854)                            (95,731)         (13,550)



           
                Comprehensive loss attributable to:



           Equity shareholders of the company                                                                                                                 (134,773)                            (95,609)         (13,533)




           Non-controlling interests                                                                                                                               (81)                               (122)             (17)




           
                Net loss attributable to the TuanChe Limited's ordinary shareholders
      per share from continuing operations



              Basic                                                                                                                                              (0.46)                              (0.32)           (0.05)



              Diluted                                                                                                                                            (0.46)                              (0.32)           (0.05)



           
                Weighted average number of ordinary shares



              Basic                                                                                                                                         295,865,699                          303,221,278       303,221,278



              Diluted                                                                                                                                       295,865,699                          303,221,278       303,221,278


                                                                                
           
                TUANCHE LIMITED


                                                                          
       
            RECONCILIATION OF NON-GAAP AND GAAP RESULTS




                                                                        
       
         (Amount in thousands, except share and per share data)




                                                                                                                     For the three months ended June 30,



                                                                                                                            2019                                   2020



                                                                                                 
              
                RMB                       
         
         RMB      
     
         US$


                                                                                                                     (Unaudited)                           (Unaudited)      (Unaudited)



              
                Net loss                                                                                   (108,977)                              (40,076)          (5,671)



              Add:



              Depreciation and amortization                                                                                 772                                  1,308               185



              Subtract:



              Interest income, net                                                                                        1,885                                    484                69



              
                EBITDA                                                                                     (110,090)                              (39,252)          (5,555)



              Add:



              Share-based compensation expenses                                                                          79,641                                  7,191             1,018



              
                Adjusted EBITDA                                                                             (30,449)                              (32,061)          (4,537)





              
                Net loss                                                                                   (108,977)                              (40,076)          (5,671)



              Add:



              Share-based compensation expenses                                                                          79,641                                  7,191             1,018



              
                Adjusted net loss                                                                           (29,336)                              (32,885)          (4,653)



              Adjusted net loss attributable to the Company's                                                          (29,255)                              (32,779)          (4,638)
    shareholders



              Adjusted net loss attributable to NCI                                                                        (81)                                 (106)             (15)





              
                Weighted average number of ordinary shares



                 Basic                                                                                              298,742,143                            303,332,885       303,332,885



                 Diluted                                                                                            298,742,143                            303,332,885       303,332,885



              
                Adjusted net loss per share from continuing
         operations



                 Basic                                                                                                   (0.10)                                (0.11)           (0.02)



                 Diluted                                                                                                 (0.10)                                (0.11)           (0.02)


                                                                                
           
                TUANCHE LIMITED


                                                                          
       
            RECONCILIATION OF NON-GAAP AND GAAP RESULTS




                                                                        
       
         (Amount in thousands, except share and per share data)




                                                                                                                     For the six months ended June 30,



                                                                                                                            2019                                 2020



                                                                                                 
              
                RMB                       
       
         RMB      
     
         US$


                                                                                                                     (Unaudited)                         (Unaudited)      (Unaudited)



              
                Net loss                                                                                   (136,270)                            (96,607)         (13,674)



              Add:



              Depreciation and amortization                                                                               1,398                                3,446               488



              Subtract:



              Interest income, net                                                                                        4,713                                1,451               205



              
                EBITDA                                                                                     (139,585)                            (94,612)         (13,391)



              Add:



              Share-based compensation expenses                                                                          90,409                               11,847             1,677



              Impairment of investment                                                                                    1,000



              
                Adjusted EBITDA                                                                             (48,176)                            (82,765)         (11,714)





              
                Net loss                                                                                   (136,270)                            (96,607)         (13,674)



              Add:



              Share-based compensation expenses                                                                          90,409                               11,847             1,677



              Impairment of investment                                                                                    1,000



              
                Adjusted net loss                                                                           (44,861)                            (84,760)         (11,997)



              Adjusted net loss attributable to the Company's                                                          (44,780)                            (84,638)         (11,980)
    shareholders



              Adjusted net loss attributable to NCI                                                                        (81)                               (122)             (17)





              
                Weighted average number of ordinary shares



                 Basic                                                                                              295,865,699                          303,221,278       303,221,278



                 Diluted                                                                                            295,865,699                          303,221,278       303,221,278



              
                Adjusted net loss per share from continuing
         operations



                 Basic                                                                                                   (0.15)                              (0.28)           (0.04)



                 Diluted                                                                                                 (0.15)                              (0.28)           (0.04)

View original content:http://www.prnewswire.com/news-releases/tuanche-announces-unaudited-second-quarter-2020-financial-results-301133793.html

SOURCE TuanChe Limited