TuanChe Limited (NASDAQ:TC) Q2 2020 Earnings Conference Call - Final Transcript

Sep 18, 2020 • 08:00 am ET

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TuanChe Limited (NASDAQ:TC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Chenxi Yu

million in the second quarter of 2019 and increased by 53.1% compared with the first quarter of 2020. The year-over-year decrease was primarily due to decrease in promotion expenses and stock compensation as a result of cost measure controls -- cost control measures taken by the company and reduced offline events.

General and administrative expenses were RMB28 million compared with RMB28.1 million in the second quarter of 2019 and RMB24.3 million G&A expenses in the first quarter of 2020. Research and development expenses decreased by RMB8.3 million from RMB9.9 million in the second quarter of 2019, primarily due to the company cost control measures. R&D expenses were flat compared with the first quarter of 2020.

Our loss from continuing operations was RMB41.8 million in the second quarter, which is lower compared with RMB111.4 million in the same period last year and RMB59 million in the first quarter of 2020. Excluding the effects of share-based compensation expenses, adjusted net loss attributable to the Company's shareholders was RMB32.8 million in the second quarter compared with RMB29.3 million in the same period last year, and improved significantly from a loss of RMB51.9 million in the first quarter of 2020.

Adjusted basic and diluted net loss per ordinary share were both RMB0.11 in the second quarter compared with RMB0.1 in the same period last year. Adjusted EBITDA was a loss of RMB32.1 million in the second quarter compared with a loss of RMB30.4 million in the same period last year, and improved substantially from a loss of RMB50.7 million in the first quarter this year.

Now turning to our balance sheet. At the end of second quarter of 2020, we had cash and cash equivalents, time deposits and short-term investments of RMB200.4 million. For the third quarter of 2020, we expect our net revenues to be between approximately RMB90 million and RMB95 million, representing a year-over-year approximate decrease of 33.6% and 29.9%. This is primarily due to the estimated declining number of offline events that is expected to be held in the third quarter of 2020 due to the COVID-19 pandemic.

This forecast reflects the Company's current and preliminary views on the market and operational conditions as well as the influence of the COVID-19 pandemic, which are subject to change. This concludes our prepared remarks for today.

Operator, we are now ready to take questions. Thank you.