Changes in revenue classifications
First Quarter 2019 Financial and Operating Highlights Compared with the Prior Year Period
- Net revenues increased by 40.6% to
RMB122.9 million (US$18.3 million ) fromRMB87.4 million .
- Gross profit increased by 40.8% to
RMB88.9 million (US$13.2 million ) fromRMB63.1 million . Gross margin expanded to 72.4% from 72.2%.
- Quarterly number of auto shows organized increased by 85.4% to 178 auto shows in 137 cities across
China from 96 auto shows in 71 cities acrossChina . A total of 12 special promotion events were organized during the quarter.
- Quarterly number of automobile sales transactions facilitated increased by 31.1% to 64,641 from 49,319, and the quarterly Gross Merchandise Volume (GMV) of new automobiles sold increased by 16.7% to
RMB8.4 billion (US$1.3 billion ) fromRMB7.2 billion .
- Geographic coverage of sales operations sites further expanded to 146 cities as of
March 31, 2019 , from 95 cities as ofMarch 31, 2018 .
“Despite a challenging macroeconomic environment and a stagnating auto market in
Mr.
Recent Business Developments
On
As the Company aims to unlock the monetization potential of Easyhome’s customer base,
Unaudited First Quarter 2019 Financial Results
Net Revenues
Net revenues in the first quarter of 2019 increased by 40.6% to
- Offline marketing services revenues generated from auto shows in the first quarter of 2019 increased by 35.9% to
RMB118.8million (US$17.7 million ) fromRMB87.4 million in the prior year period, primarily due to (1) the increased number of cities in which the Company operated; and (2) the increased number of auto shows organized and booths offered to industry customers, including franchised dealers, automakers, and automotive service providers. Revenues generated from special promotion events in the first quarter of 2019 wereRMB0.8 million (US$0.1 million ) compared to nil in the prior year period.
- Virtual dealership, online marketing services and other revenues were
RMB3.3 million (US$0.5 million ) in the first quarter of 2019 compared to no revenue generated in the prior year period. The Company commenced its virtual dealership business, online marketing services and other services in the second quarter of 2018.
Gross Profit
Gross profit in the first quarter of 2019 increased by 40.8% to
Total Operating Expenses and Loss from Continuing Operations
Total operating expenses in the first quarter of 2019 increased by 64.7% to
- Selling and marketing expenses in the first quarter of 2019 increased by 48.3% to
RMB86.1 million (US$12.9 million ) fromRMB58.1 million in the prior year period, primarily due to increases in advertising and promotion expenses and staff compensation expenses. Selling and marketing expenses included staff compensation expenses ofRMB31.5 million (US$4.7 million ) in the first quarter of 2019 compared toRMB12.3 million in the prior year period.
- General and administrative expenses in the first quarter of 2019 increased by 162.6% to
RMB22.9 million (US$3.4 million ) fromRMB8.7 million in the prior year period, primarily due to increased headcount as a result of the Company’s recent business expansion as well as increased professional fees and ongoing expenses as a public company. General and administrative expenses included share-based compensation expenses ofRMB7.2 million (US$1.1 million ) in the first quarter of 2019 compared toRMB0.2 million in the prior year period.
- Research and development expenses in the first quarter of 2019 increased by 89.0% to
RMB7.5 million (US$1.1 million ) fromRMB4.0 million in the prior year period, mainly driven by an increased headcount as a result of the Company's recent business expansion.
Loss from continuing operations was
Net loss attributable to the Company’s Shareholders and Non-GAAP Measures
Net loss attributable to the Company’s shareholders in the first quarter of 2019 increased to
Adjusted net loss attributable to the Company’s shareholders increased to
Adjusted EBITDA was a loss of
For details on the calculation of and reconciliation to the nearest GAAP measures for each adjusted net loss attributable to the Company’s shareholders, adjusted loss per ordinary share, and adjusted EBITDA, please refer to the sections titled “Use of Non-GAAP Financial Measures” and “Unaudited Reconciliation of Non-GAAP and GAAP Results.”
Balance Sheet and Cash Flow
As of
Business Outlook
For the second quarter of 2019, the Company expects net revenues to range from approximately
Conference Call Information
The Company will hold a conference call on
| International: | +65-6713-5090 |
| United States Toll Free: | +1-866-519-4004 |
| China: | 400-620-8038 |
| Hong Kong Toll Free: | 800-906-601 |
| Conference ID: | 6954919 |
The replay will be accessible through
| International: | +61-2-8199-0299 |
| United States Toll Free: | +1-855-452-5696 |
| Conference ID: | 6954919 |
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
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 as well as business outlook, 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
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 loss, adjusted net loss per 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 the impact of fair value loss of warrant, share-based compensation expenses and impairment of investment. The Company defines adjusted net loss per share as adjusted net loss divided by the weighted average number of ordinary shares. The Company defines adjusted EBITDA as net loss excluding the impact of depreciation and amortization, interest expenses (net), fair value loss of warrant, 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 adjust 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. Interest income or expenses, depreciation and amortization, fair value loss of warrant, 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
Founded in 2010,
For investor and media inquiries, please contact:
Tel: +86-10-6398-6232
Email: ir@tuanche.com
Tel: +1-646-405-6148
Email: tuanche@icrinc.com
| TUANCHE LIMITED | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Amount in thousands, except as noted) | ||||||||
| As of, | ||||||||
| December 31,2018 | March 31, 2019 | |||||||
| RMB |
RMB Unaudited |
US$ Unaudited |
||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 578,558 | 505,578 | 75,334 | |||||
| Accounts receivable, net | 52,255 | 66,623 | 9,927 | |||||
| Prepayment and other current assets | 68,819 | 87,094 | 12,977 | |||||
| Total current assets | 699,632 | 659,295 | 98,238 | |||||
| Non‑current assets: | ||||||||
| Property, equipment and software, net | 11,636 | 12,271 | 1,828 | |||||
| Long-term investments | 4,390 | 3,109 | 463 | |||||
| Other non-current assets | 10,267 | 10,518 | 1,567 | |||||
| Total non‑current assets | 26,293 | 25,898 | 3,858 | |||||
| Total assets | 725,925 | 685,193 | 102,096 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 6,996 | 7,872 | 1,173 | |||||
| Advances from customers | 14,704 | 14,262 | 2,125 | |||||
| Salary and welfare benefits payable | 48,835 | 39,648 | 5,908 | |||||
| Tax payable | 16,974 | 14,934 | 2,225 | |||||
| Other current liabilities | 36,426 | 30,137 | 4,491 | |||||
| Total current liabilities | 123,935 | 106,853 | 15,922 | |||||
| Total liabilities | 123,935 | 106,853 | 15,922 | |||||
| Shareholders’ equity: | ||||||||
| Class A ordinary shares | 166 | 166 | 24 | |||||
| Class B ordinary shares | 35 | 35 | 5 | |||||
| Additional paid-in capital | 1,077,183 | 1,087,951 | 162,110 | |||||
| Accumulated deficit | (468,026 | ) | (495,319 | ) | (73,805 | ) | ||
| Accumulated other comprehensive loss | (7,368 | ) | (14,493 | ) | (2,160 | ) | ||
| Total shareholders’ equity | 601,990 | 578,340 | 86,174 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 725,925 | 685,193 | 102,096 | |||||
| TUANCHE LIMITED | ||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Amount in thousands, except per share data) | ||||||||
| For the three months ended March 31, | ||||||||
| 2018 | 2019 | |||||||
| RMB | RMB | US$ | ||||||
| Continuing operations Net revenues |
||||||||
| Offline Marketing Services: | ||||||||
| Auto shows | 87,393 | 118,768 | 17,697 | |||||
| Special promotion events | - | 808 | 120 | |||||
| Virtual dealership, online marketing services and others | - | 3,292 | 491 | |||||
| Total net revenues | 87,393 | 122,868 | 18,308 | |||||
| Cost of revenues | (24,269 | ) | (33,970 | ) | (5,062 | ) | ||
| Gross profit | 63,124 | 88,898 | 13,246 | |||||
| Operating expenses: | ||||||||
| Selling and marketing expenses | (58,082 | ) | (86,134 | ) | (12,834 | ) | ||
| General and administrative expenses | (8,719 | ) | (22,893 | ) | (3,411 | ) | ||
| Research and development expenses | (3,975 | ) | (7,512 | ) | (1,119 | ) | ||
| Total operating expenses | (70,776 | ) | (116,539 | ) | (17,364 | ) | ||
| Loss from continuing operations | (7,652 | ) | (27,641 | ) | (4,118 | ) | ||
| Other expenses: | ||||||||
| Interest (expenses)/income, net | (1,484 | ) | 2,828 | 421 | ||||
| Exchange gain/ (loss) | 211 | (1,126 | ) | (168 | ) | |||
| Investment income/(loss) | 100 | (281 | ) | (42 | ) | |||
| Change in fair value of warrant | (1,611 | ) | - | - | ||||
| Impairment of investment | - | (1,000 | ) | (149 | ) | |||
| Others, net | 48 | (73 | ) | (11 | ) | |||
| Loss from continuing operations before income taxes | (10,388 | ) | (27,293 | ) | (4,067 | ) | ||
| Income tax expense | - | - | - | |||||
| Net loss from continuing operations | (10,388 | ) | (27,293 | ) | (4,067 | ) | ||
| Discontinued operations | ||||||||
| Loss from discontinued operations before income taxes | (4,340 | ) | - | - | ||||
| Income tax expense, net | - | - | - | |||||
| Net loss from discontinued operations | (4,340 | ) | - | - | ||||
| Net loss | (14,728 | ) | (27,293 | ) | (4,067 | ) | ||
| |
||||||||
| TUANCHE LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued) (Amount in thousands, except per share data) |
||||||||
| For the three months ended March 31, | ||||||||
| 2018 | 2019 | |||||||
| RMB |
RMB |
US$ |
||||||
| Accretions to preferred shares redemption value | (5,622 | ) | - | - | ||||
| Net loss attributable to the TuanChe Limited’s shareholders | (20,350 | ) | (27,293 | ) | (4,067 | ) | ||
| Net loss | (14,728 | ) | (27,293 | ) | (4,067 | ) | ||
| Other comprehensive income/ (loss): | ||||||||
| Foreign currency translation adjustments | 1,935 | (7,125 | ) | (1,062 | ) | |||
| Total other comprehensive income/ (loss) | 1,935 | (7,125 | ) | (1,062 | ) | |||
| Total comprehensive loss | (12,793 | ) | (34,418 | ) | (5,129 | ) | ||
| Accretions to preferred shares redemption value | (5,622 | ) | - | - | ||||
| Comprehensive loss attributable to the TuanChe Limited's shareholders | (18,415 | ) | (34,418 | ) | (5,129 | ) | ||
| Net loss attributable to the TuanChe Limited’s ordinary shareholders per share from continuing operations | ||||||||
| Basic | (0.17 | ) | (0.09 | ) | (0.01 | ) | ||
| Diluted | (0.17 | ) | (0.09 | ) | (0.01 | ) | ||
| Net loss attributable to the TuanChe Limited’s ordinary shareholders per share from discontinuing operations | ||||||||
| Basic | (0.05 | ) | - | - | ||||
| Diluted | (0.05 | ) | - | - | ||||
| Weighted average number of ordinary shares | ||||||||
| Basic | 94,870,580 | 292,899,350 | 292,899,350 | |||||
| Diluted - continuing operations | 94,870,580 | 292,899,350 | 292,899,350 | |||||
| Diluted - discontinuing operations | 94,870,580 | 292,899,350 | 292,899,350 | |||||
| TUANCHE LIMITED | ||||||||
| UNAUDITED RECONCILIATION OF NON-GAAP AND GAAP RESULTS | ||||||||
| (Amount in thousands, except per share data) | ||||||||
| For the three months ended March 31, | ||||||||
| 2018 | 2019 | |||||||
| RMB |
RMB |
US$ |
||||||
| Net loss | (14,728 | ) | (27,293 | ) | (4,067 | ) | ||
| Add ： | ||||||||
| Depreciation and amortization | 221 | 626 | 93 | |||||
| Interest expense, net | 1,484 | - | - | |||||
| Subtract： | ||||||||
| Interest income | - | 2,828 | 421 | |||||
| EBITDA | (13,023 | ) | (29,495 | ) | (4,395 | ) | ||
| Add ： | ||||||||
| Fair value loss of warrant | 1,611 | - | - | |||||
| Share-based compensation expenses | 291 | 10,768 | 1,604 | |||||
| Impairment of investment | - | 1,000 | 149 | |||||
| Adjusted EBITDA | (11,121 | ) | (17,727 | ) | (2,642 | ) | ||
| Net loss | (14,728 | ) | (27,293 | ) | (4,067 | ) | ||
| Add ： | ||||||||
| Fair value loss of warrant | 1,611 | - | - | |||||
| Share-based compensation expenses | 291 | 10,768 | 1,604 | |||||
| Impairment of investment | - | 1,000 | 149 | |||||
| Adjusted net loss | (12,826 | ) | (15,525 | ) | (2,314 | ) | ||
| Weighted average number of ordinary shares | ||||||||
| Basic | 94,870,580 | 292,899,350 | 292,899,350 | |||||
| Diluted | 94,870,580 | 292,899,350 | 292,899,350 | |||||
| Adjusted net loss per share from continuing operations | ||||||||
| Basic | (0.14 | ) | (0.05 | ) | (0.01 | ) | ||
| Diluted | (0.14 | ) | (0.05 | ) | (0.01 | ) | ||
Source: TuanChe Limited