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 ...
