TuanChe Announces Unaudited 3rd Quarter 2020 Financial Results.

BEIJING: 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 third quarter ended September 30, 2020.

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

The Company's financial and operational results for the third quarter of 2020 continued to be adversely impacted by the COVID-19 pandemic:

Net revenues decreased by 26.2% to RMB100.0 million (US$14.7 million) from RMB135.6 million.

Gross profit decreased by 22.6% to RMB72.1 million (US$10.6 million) from RMB93.2 million. Gross margin increased to 72.1% from 68.7%.

Quarterly number of organized auto shows across China decreased by 28.3% from 212 in 150 cities to 152 in 107 cities. Quarterly number of special promotion events decreased by 66.7% from 192 to 64.

Quarterly number of automobile sale transactions facilitated decreased by 36.2% to 48,995 from 76,798. Quarterly Gross Merchandise Volume of new automobiles sold decreased by 33.3% to RMB7.0 billion (US$1.0 billion) from RMB10.5 billion.

Sales operations covered 129 cities as of September 30, 2020, compared with 134 cities as of June 30, 2020 and 148 cities as of September 30, 2019.

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

Net revenues decreased by 64.4% to RMB164.5 million (US$24.2 million) from RMB462.0 million.

Gross profit decreased by 63.0% to RMB120.8 million (US$17.8 million) from RMB326.1 million. Gross margin increased to 73.5% from 70.6%.

The number of auto shows organized during the first nine months of 2020 decreased by 70.2% to 219 in 133 cities from 734 auto shows in 233 cities across China. The number of special promotion events organized during the first nine months of 2020 decreased by 56.4% to 156 from 358.

The number of automobile sales transactions facilitated during the first nine months of 2020 decreased by 71.8% to 70,956 from 251,883, and the Gross Merchandise Volume of new automobiles sold during the first nine months of 2020 decreased by 70.6% to RMB10.0 billion (US$1.5 billion) from RMB34.0 billion.

Mr. Wei Wen, Chairman and Chief Executive Officer of TuanChe, commented, "We are pleased to report third quarter results that demonstrated our momentum in rebuilding revenues and reducing net losses in the wake of the severe market conditions brought about by COVID-19 earlier in the year. Our net revenues were RMB100.0 million, 26.2% lower compared with the same quarter last year, yet improving 82.7% over the second quarter primarily driven by recovery of offline marketing services as our gradual resumption of offline auto shows that began in May is making steady progress. In addition to the sequential quarter-over-quarter recovery of revenue, we further mitigated our net loss to RMB41.2 million, compared with RMB47.5 million in the same quarter last year.

"If there is a silver-lining to the ravages of the pandemic it has been the phenomenal growth in the digital economy. Our online services, including live streaming events, are benefitting from this trend as we recognize positive revenue contribution from this segment. In the third quarter, net revenues generated from virtual dealership, online marketing services and others increased by 160.9% to RMB15.4 million. A key factor in this area has been the collaborative partnerships we've established with TMall and Baidu Youjia, the auto segment of the giant Baidu portal. Through these engagements we not only become part of their ecosystems contributing value through strong OEM and dealer relationships, but also gain significant exposure for our events through their...