TuanChe's Revenue, Gross Profit Send Shares Up 15%

Shares in the auto marketplace closed at $3.96, up 15 percent, after it announced second-quarter results.

Binwei Wang
    Aug 20, 2019 7:00 PM  PT
TuanChe's Revenue, Gross Profit Send Shares Up 15%
author: Binwei Wang   

TuanChe Ltd. (Nasdaq: TC), a leading automotive marketplace in China, announced its net revenue increased 11.9 percent to $29.6 million in the second quarter compared with $25.76 million the year before.

The higher results came as the revenue growth from offline marketing services, as well as the accelerated growth of new business initiatives, including the virtual dealership and online marketing services.

Despite the higher net revenue, TuanChe said its gross profit in the second quarter of 2019 was $21 million, compared with $18.72 million one year before

The Beijing-based company said its net loss attributable to the company's shareholders was RMB108.9 million,  or 5 cents per American depositary share, compared with a loss of $1.9 million, or 2 cents per ADS, the year before.

Shares of TuanChe closed today at $3.96, up 15 percent per share.

Zhihai Mao, the chief financial officer of TuanChe, said, "In the face of difficult macroeconomic conditions and the contraction of China's auto market, we maintained our growth momentum in the second quarter of 2019."

Looking ahead, Mao added, "We believe that our strong market position will allow us to navigate through the inherent difficulties of the current market environment as we expand our geographic coverage and optimize our operational efficiency."

For the third quarter of 2019, TuanChe expects revenue to range from RMB160.0 million to RMB170.0 million, representing a year-over-year increase of 3 percent to 9.5 percent.