TuanChe (TC) Reports Q4 Loss of $0.03 on Revenues of $26.3M

TuanChe (NASDAQ: TC) reported Q4 EPS of ($0.03). Revenue for the quarter came in at $26.3 million, versus $0 reported last year.

Key Fourth Quarter 2019 Financial and Operating Metrics Compared with the Prior Year Period

• Net revenues decreased by 19.3% to RMB182.8 million (US$26.3 million) from RMB226.4 million.
• Gross profit decreased by 19.1% to RMB132.1 million (US$19.0 million) from RMB163.3 million. Gross margin increased to 72.3% from 72.1%.
• Quarterly number of auto shows organized decreased by 3.0% to 321 in 149 cities from 331 auto shows in 167 cities across China. A total of 269 special promotion events were organized during the quarter.
• Quarterly number of automobile sales transactions facilitated decreased by 13.0% to 102,472 from 117,744, and the quarterly Gross Merchandise Volume ("GMV") of new automobiles sold decreased by 16.1% to RMB13.5 billion (US$1.9 billion) from RMB16.1 billion.
• Sales operations covered 148 cities as of December 31, 2019, compared with 149 cities as of September 30, 2019 and 138 cities as of December 31, 2018.

Mr. Wei Wen, Chairman and Chief Executive Officer of TuanChe, commented, "Despite short term setbacks amidst economic uncertainties and overall sales decline in China during the fourth quarter of 2019, we remained committed to and focused on, strategic execution for the sake of long-term growth. Our efforts included further optimization of our core auto show business with a focus on generating high ROIs, accelerated development of customized special promotion events, and continued focus on growth initiatives in virtual dealership and online marketing services. Going forward, we plan to increase investment in our online infrastructure and explore new online marketing methods, and systemically digitalize and monetize our massive offline customer traffic and our accumulated consumer insights and collaborate strategically with more stakeholders in the automotive value chain to empower OEMs and dealers to reach customers more effectively and efficiently. At the same time, we hope to provide Chinese consumers with superior, smarter, and more transparent automotive shopping experience, and ultimately reshape the auto retail landscape and further solidify our unique position as an omni-channel automotive marketplace."

Mr. Zhihai Mao, Chief Financial Officer of TuanChe, added, "During the challenging fourth quarter of 2019, we recorded net revenues of RMB182.8 million, a year-over-year decrease of 19.3%, within the range of our previous guidance. In response to a weak auto market in China, we put in a collaborative company-wide effort to mitigate the downward pressure in our core offline business. For example, we have seen steady growth from programs and services we initiated to cultivate additional growth drivers and revenue streams. Looking ahead to 2020, although our offline sales events in the first quarter were inevitably affected by the outbreak of COVID-19, and the recovery period of China\'s auto market is expected to be longer than previously anticipated, we still believe our sustainable business tactics, and strong brand equity coupled with further investment in online infrastructure and optimization of our cost structure will allow us to persevere in this challenging market and achieve growth in the long-run."

For earnings history and earnings-related data on TuanChe (TC) click here.

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