NEW YORK, July 2, 2020 /PRNewswire/ -- Stone Street Group released earnings quarterly update on TuanChe Limited (Nasdaq: TC).
The full report can be found on www.stonestreetus.com
TuanChe experienced significant challenges brought about by the COVID-19 outbreak, resulting in substantial year-over-year net revenue declines and a widening net loss. For the first quarter of 2020, the Company's net revenues decreased by 92.1% year-over-year to RMB9.7 million, or US$1.4 million, in line with the management's guidance. The decline in Q1 revenues had led to a loss from continuing operations of US$8.3 million, and an adjusted net loss attributable to the Company's shareholders of US$7.3 million, or a net loss per ordinary share of US$0.02 in the quarter.
Coincided with the continued challenging market condition exacerbated by COVID-19 pandemic, Q1 results were negatively impacted by the year-over-year decline of 95% from the Company's offline marketing services, mainly due to the cancellation of all offline events in February and March, while only partially offset by the YoY revenues increase of 12.3% from its virtual dealership and online marketing services. Consequently, the Company's quarterly gross margin decreased to 58.6% from 72.4% a year ago. As of March 31, 2020, TuanChe held cash and cash equivalents, time deposits, and short-term investment of RMB205 million ( US$29.0m).
In order to better align the Company's operations with the current challenging market conditions, the management had immediately put in place stringent measures to combat operating costs and preserve liquidity, complemented by accelerated development of its online marketing services.
These contingent measures are providing the management with confidence in the Company's ability to navigate this challenging period, while laying the foundation for long-term growth. TuanChe will continue to focus on strengthening its online initiatives going forward, operated under the omni-channel business model through a hybrid brick-and-mortar and online approach.
About Stone Street Group:
Stone Street Group is a leading global research and publications firm that focuses on small and mid-cap stocks. We offer small and mid-cap research and create exposure for clients through extensive digital distribution. We are headquartered in New York and maintain offices in major financial centers around the world.
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SOURCE TuanChe Limited