TuanChe Limited (TC) 12 Apr 212020 Q4 Earnings call transcript

Good morning and good evening, ladies and gentlemen. Thank you for standing by for TuanChe Limited Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded.

the to turn today, speaker will Ms. I call your over host Now Representative the Song, of Yang IR company. ahead, go Please ma'am.

Hello, everyone, XXXX year quarter and and welcome to earnings TuanChe’s conference fourth full call.

now earnings as well Newswire services. today released website, on results have our IR our and We it’s available on as earlier

Before please of Private U.S. Securities the Reform Act note discussion forward-looking will contain the we made provisions under of continue, XXXX. statements the that today Safe Harbor Litigation

Forward-looking inherent statements risks involve uncertainties. and

from in future the regarding Wei Registration company's our As except Chief Mr. release SEC. the results strategies not any our required the Further risks of materially the the followed different by TuanChe law. financial Yu, Wen, and an details with expressed may and additional information Executive Mr. statements, assume who be views outlook. company's as by company's who growth provide will such, obligation this and on financial Officer, be discuss today. uncertainties will our Deputy our from other update and results Chenxi hear Financial the you'll to filed forward-looking Officer, who Today, does is will Statement included overview earnings provide and developments, business Chief Ronnie, any

Mr. remarks, CEO, Following Wei now that said, Wen. like call go open I we'll management's our to Please prepared sir. would over call to the up questions. to With turn ahead, the

and beat online were versus primarily net our steps end shows, the growth on X.X% of us that in our XX.X% our as as our fourth fourth the million We as quarter marketing better-than-expected our year joining Hello and for X range growth continued earnings solid by of year-over-year today marketing well China, offline driven acceleration to our prior services by saw fourth and sales passenger of and you The top revenues with retail point guidance services. in resume thank our everyone vehicle auto quarter. grew our RMBXXX.X the call. XXXX measured quarter of quarter benefited from momentum offline full results

rigorous cost implemented and recruitment we on our employee and focus reduction. as back our Additionally, scaling top measures line size, strong budget cost recovery combining such

attributable which to the XX.X% third RMBXX.X quarter versus Our was and million net in company's fourth the shareholders narrowed loss XXXX XX.X% year-over-year. quarter, the

business take Let's also our providing at look strategic quarter detail operational of segments, on additional a fourth priorities. performance closer the and our while

First, our offline marketing services.

on events first discussed have we previous the impacted offline COVID-XX heavily by half As of our were XXXX. the in calls, marketing pandemic, especially earnings

participants marketing we and of number it a business these our collective purchase individual include auto serve both short of creating increasingly progressively transaction, to a isolated and operate. consumers, mostly how with cases which We our sides. may a many-to-many events impact attracting automobile a large providers. value service of China in promotion quarter COVID-XX to became events automotive is we other creating under activities. and keeping operations enable in control of able in purchase late regulatory prevention on Currently, time industry national pandemic potential the offline uncertainty between control. with shows, and shows most of should come guidelines both auto what With of there dealers as purchaser sides recovery. on were By automobile with for the are noted however, as interactions that our to OEMs, into large-scale local to that while cities It in China, transactions large back northern period XXXX all However, numbers May integrated accordance are and lingering resume XXXX, offline was in environment our customers, turn first on we solutions and special be in normal new reported the

cities XXX XXX in auto shows in shows the auto XXX compared in XXX cities organized shows XXX In organized shows X,XXX with fourth compared in improving third cities but from of in with XXX auto auto we across XXXX. [ph] XXX in cities quarter, cities XXX the period we same XXXX, XXX the XXXX, For in quarter.

delivered in quarter-over-quarter. shows, from we result, net a RMBXXX.X As generated but year-over-year, million increasing XX.X% revenues down XX.X% auto

XXXX, in In we addition, on-site and of targeted planning, customers also our we have to developed training have and in execution, deep including and promotional events events special XXXX fourth events decreased a promotion the special XXX in our coaching event XX.X% promotion to services quarter with Leveraging in we from XXX fourth event support auto XXXX, our to a through and series each special for and services, decline marketing, developed XX% - revenue industrial XX% In automotive compared insights transactions, year-over-year. better held customized OEM. in our and [ph] or dealer integrated XXX quarter,

services, can therefore marketing we frequent demand ROI. offline to where shows continue auto and our higher generate For cities for more there focus on is

we lower and and For approach auto focusing ROI, on events are with shows more cost-effective promotion events. remote online special offline more than cities

initiative that didn't move dealership from capitalizing us stop boost marketing this our services. and capitalizing - unfolded from developed the overall online in in retail Next, Internet online that The year growth me to let opportunities on on virtual usage. automotive extraordinary challenges

with this such our positioned to TMall, online in shift as for of on focused deepening leader and initiatives as Youjia ourselves our space. we brand a Baidu continued the and a Webank, we XXXX, collaboration commerce During as number established

driven online dealership, during the meaningful quarter and virtual reached by year-over-year. services quarter. XXXX, Our XXX.X% of efforts from In events fourth results. revenues RMBXX.X successful held was million, promotion we increasing produced our others online that marketing the This primarily

the with Youjia Limited International of collaboration January generated XXXX. and Baidu from Longye in revenues and Webank our strategic Our acquisition

recap XXXX. main on our in online me provide a in services Let marketing initiatives

live promoting collaborative offline First into infrastructure, behavior, OEMs of consumer dealers, all, the leveraging we deep partnership and our made e-commerce relationships and headway in events extensive streaming, online with by insights with our platforms.

we event promotion streaming We the for This event events but live OEMs. was additional with we us provided our And dealers, deliver shopping the endeavors. we've and for as - the XXXX serve also consumer’s directly this future for in needs, conducted only online dealers. highlight TMall a with auto. insights organized as together significant Our not believe template and needs as into can good OEMs well of

operations, segment its across for giant sales offline the with Our is our helped Baidu to Youjia, collaboration essentially are to the merged network of another China, We and portal service auto online expand conversion solutions. the Baidu XX OEMs dealers. the improve example over Baidu of Youija creative and where rates its aiming cities sales

to a continue serving XXXX platform. automotive of believe the consumer we path – for beyond, marketplace. see XXXX consumer online to our habits acceleration of continue digitalization tailwind as omni-channel sales the to therefore, by We, in needs be ahead evolving online for shifting a strengths towards automotive full and defined the leveraging commerce Looking will leading a us retail

turn a Chenxi CFO, performance Deputy for Yu, fourth look the Now in call I to our our at will closer financial this quarter.

Thank you, us. joining demonstrated challenging Mr. fourth quarter solid a Thank Wen. concluded improvement. with for We that everyone. you XXXX Hello, a

of operating with the of managing the was Our period The growth us period quarter net our a lower RMBXXX.X same XX% a year, of X.X% took compared we create slower Meanwhile a approach combined quarter-over-quarter, resulted to revenues, leading equivalents which which the narrowed XX.X% sorry, line will versus although the same comprehensive million, RMBXX.X top and XX.X% XX.X% simultaneously with we lower than XXXX. need XXXX was cash third to with while expense future million, the XX, which This costs. last quarter for provide we balance time in respectively. achieved, and recovery healthy restricted of platform grew cash was net of to and in cash and significant loss maintained the deposits growth. third a XXXX, runway

through I quarter walk would financial XXXX our Next, results. like to fourth

all start, unless I stated that are please otherwise remarks in terms Before following note noted. that in my numbers RMB

compared online by this virtual XX.X% and with quarter maintained year-over-year offline total total and impacts million, performance. decrease was increased decreasing growth in RMBXXX.X revenues the continued the pandemic. services same of COVID-XX of adverse third marketing the dealerships, fourth as online X.X% offset quarter recovered, from Our in result year, million year. This others the was our services solid period RMBXXX.X of revenues services last The our by a partially were

continuous live The of during our from resumed promotion of in events RMBX to RMBXXX.X quarter January XXXX, million million auto million up from services, of from our with Revenues increased acquisition online shows, from our fourth generated auto auto million with also revenue quarter revenues marketing quarter with marketing quarter the in and RMBXXX.X in shows Longye of and events special XXXX. RMBX.X RMBX.X offline compared growth million from XXX.X% quarter of the to from the due we expansion these and dealership, the third International Revenues increased generated Limited marketing compared XXXX. third fourth Webank. collaboration million others XXXX our services and fourth fourth million revenue offline the by year-over-year services generated XXXX XX.X% promotion XX.X% Youjia in by from million. was streaming RMBXX.X of quarter generated in RMBX.X helped of As completed Baidu quarter shows the including our the virtual marketing to the was progressively of online RMBXX.X XXXX. decreased primarily services in offline by The XXXX,

million RMBXXX.X million profit quarter fourth of RMBXXX.X gross Our the decreased in from fourth by by X.X% but quarter to XXXX, in XX.X% quarter-over-quarter. increased the

million million events. and measures of expenses. decreased cost fourth decrease primarily and XX.X% RMBXX.X to quarter XX.X% third million General recover. mix. and to margin XX.X% compared million in compared of the quarter the third decreased of period continue in staff from fourth of from in of expenses increased decrease fourth third primarily Research increased to also of quarter the to offline gross quarter, promotional expenses expenses expenses, XX.X% and XXXX, The the and million staff decrease the same as the to operations RMBXXX.X million and our by the million primarily a XXXX, XXXX. XXXX, expenses RMBXX.X XXXX RMBXX.X RMBXX.X in in taken change company was the the G&A million In in and administrative the quarter RMBXX.X reduced in with and quarter by compensation the Our control in the due in from expenses as fourth RMBXXX.X to by compensation year-over-year quarter, to with RMBX.X marketing due selling due was result development revenue last year,

continuing from Our fourth and million of quarter quarter loss year in last respectively. was XXXX RMBXX.X third operations RMBXX.X period with the same the million compared in in the million RMBXX.X lower

diluted RMBX.XX and RMBXX.X compared the net last with the fourth same a of loss in a in ordinary was the million last quarter RMBX.X to last in effects the year. Adjusted, million in with fourth compared same attributable fourth share-based the basic loss the [ph] adjusted quarter loss with RMBXX.X million EBITDA loss million of quarter of compared Excluding was both Adjusted net in compensations, shareholders company's the period the year. in RMBXX per were share same period year. RMBXX.X period

the had Now our balance XXXX, of turning time and and equivalents, to deposits At end cash we of RMBXXX.X million. cash December sheet.

refer financial more our please For results, further of details. for press year earnings release our XXXX full to

subject year-over-year first we views approximately COVID-XX quarter net now operational pandemic, preliminary take you. as the representing of prepared This ready the and XXX.X%. between change. Thank a the RMBXX revenues increase to This and of reflects today. to of approximate to the to market and current company's the concludes Operator, XXX% forecast for on RMBXX all For be our we're well expect conditions, which XXXX, our questions. are as remarks million, influence million

you. Thank

question Group. question-and-answer [Operator first the The with ahead. session. Aarde Maxim begin now go Jack will comes Instructions] Vander We from Please

a Good Hi. Wen Great. a I'll side. Mr. you. the for few for for financial Thanks my then Ronnie questions taking on couple evening, Thank start for questions. guys. and

letter Wen, on investors are Mr. it's taking company but there the Directors great maybe proposal in that to status January of receiving turning of out interested the is For potential update a lot of Board direction, business following in course the sent to around from see there private. sure a positive a I'm the

for would that's this So interested updates outstanding? have you the investors positive stock, are - proposal tell maybe business but you what side, buying on that the know, you in - still Thank what you given you. as do

and we can But Jack. moment. in-depth. buying still the received to the all the Language] a January information buyer’s can the due special we There's express Language] the in is Year, us company of group the proposal forming from is process now. Hello, [Foreign a further until That's available. little is in for to We say evaluating proposal. the Give evaluating company [Foreign Chinese committee further – the New proposal

that's then the Wen business. more the another color. I question an on understandable. update And appreciate understood. on Mr. added Okay, from And -

I just question believe this So of before. kind of bigger asked picture, I’ve kind

you provide what state for appetite you're in as auto and their just talk financial can kind and various economy maybe then China? purchases some Just on overall such partners purchases the health seeing new cars? terms cars new And perspective big consumer of your the general for just about of the ticket of of in

improving the [Foreign as and import GDP quarters, The significantly for Chinese been Language] over the few macro well especially overall, past economy for export. figures, market its as

retail - to the grew auto sales from Is the XX the good economy recovery the enough? boosted sector that two consumer confidence. for last economic to of passenger that bolstered think low Passenger China in year-over-year, XXXX, months we So overall macro significantly Association, auto improving. first up Language] close the but [Foreign is year, Language] [Foreign XX% broad also base China according Car by that For

positive the That's expecting sticking overall you're terms off of obviously, significantly market to year, thoughts a do trend obviously. overall you last of down And expect and market? car I sales, I'm new just about sort guess throughout what balance levels passenger any auto Sure. And new the XXXX, of talking and high of of for March just for this growth up the that in preliminary good. continue year passenger to kind then of

the the that quite the trends that's being And also think of for being about we're statement Bank [Foreign the stating that aided optimistic economy, year. Language] by improving World one macro the We the rest from for the the world. GDP XXXX. in is also auto also that believe in likely we Chinese we trend sector, growth of And more upward will be the XXXX - for best will the

segment virtual see gears helpful. Is that segment a just segment as dealership strong as other from offline going how clearly, to the be me And was expectations. ahead my auto you to over the you out segment mix along do do are become of kind dealer very you let be see going perspective. playing Or - virtual kind dealership here. just - other - guess, shifting core then evolving over - Excellent. time? you virtual core business? of That's Longer business you and more the The switch specifically of Is TuanChe the to now, see virtual expect of from of kind it of where was it and it that your the going dynamic, strategy the time? term be business? is to the do you Do a focus? I guys this go given Just given and show

a will XXXX, the years, our auto core help mix next product mix. an remain Okay. will our - future businesses be growth. online as auto Does remain our - in fast. [Foreign also But For was show be will believe business business part that important services very that mix. Language] In our this understand? the the our few or are product still a XXXX, we improving show product - and we're product and revenue largest - for we also and our also maybe segment Language] business strong our But [Foreign core of

fourth Like as you XXXX you in helpful, for That's you you hard host there. XXX good show think maybe of again, XXXX? return sequential is they which know, the when to events events that's appreciate too improvement, there? quarter. the - you That's color to it to is eventually do any in go, to same recover? know, the that earlier just too auto show the to was as helpful. it – And you auto the auto just color is far then Do saw expect I levels say, to number see. expect show I continue another Or it events and

Language] priority auto operate. our efficiencies auto first number still shows city to us and level cities ROIs Okay. are the we the Gives our XXXX coverage But - We shows of recover sec. is the the and to produced trying priority [Foreign of these XXXX. operational a the and in

the to we trying we that's to from. So base try recover are –

So that’s [ph] that

you. Got

that's me question, sense last Okay, one well. just helpful. may maybe then to you, makes as That Ronnie. And for

Just given a momentum environment revenue turn overall kind the and continues macro just the of in to direction. positive around

you we - plans on as your the think begins how operating line Just those that you what for as go or know, up up, investments do perspective about OpEx to expense pick expect and along any top to as to you for there? your recover, and wondering expect you again whether you ramp means color

terms control certainly know we're we figures, come and to can to will the you OpEx in the - - minimize to measures to are we up take of everything The pick everything, costs. doing absolute but OpEx cost to take

So, would - XXXX up, be XXXX. OpEx than is and revenue of percentage absolute but XXXX that lower expect figure I the of go the will the for will that

Of XXXX as well.

excellent. Okay,

for see Thank turnaround It's wish Okay, the positive luck. playing great out. you. guys. that's you to me best of it story I

All right. Thank you.

like back no now, are turn the further call over to for there closing I'd As remarks. questions management to

today. again joining Thank us for you once

provided have Relations on If contact free please through the feel to TuanChe’s website Relations. further Group, our the Piacente questions, contact you Investor or information Investor

This concludes…

conference the call. concludes This

Thank you. may disconnect line. You now your

Thank you.