TuanChe Announces Unaudited Third Quarter 2020 Financial Results

BEIJING,Dec. 18,2020 --TuanChe Limited ("TuanChe," "Company," "we" or "our") (NASDAQ: TC),a leading omni-channel automotive marketplace in China,today announced its unaudited financial results for the third quarter ended September 30,2020.

Key Third Quarter 2020 Financial and Operating Metrics Compared with the Prior Year Period

The Company's financial and operational results for the third quarter of 2020 continued to be adversely impacted by the COVID-19 pandemic:

Net revenues decreased by 26.2% to RMB100.0 million (US$14.7 million) from RMB135.6 million.

Gross profit decreased by 22.6% to RMB72.1 million (US$10.6 million) from RMB93.2 million. Gross margin increased to 72.1% from 68.7%.

Quarterly number of organized auto shows across China decreased by 28.3% from 212 in 150 cities to 152 in 107 cities. Quarterly number of special promotion events decreased by 66.7% from 192 to 64.

Quarterly number of automobile sale transactions facilitated decreased by 36.2% to 48,995 from 76,798. Quarterly Gross Merchandise Volume of new automobiles sold decreased by 33.3% to RMB7.0 billion (US$1.0 billion) from RMB10.5 billion.

Sales operations covered 129 cities as of September 30,2020,compared with 134 cities as of June 30,2020 and 148 cities as of September 30,2019.

First Nine Months 2020 Financial and Operating Metrics Compared with the Prior Year Period

Net revenues decreased by 64.4% to RMB164.5 million (US$24.2 million) from RMB462.0 million.

Gross profit decreased by 63.0% to RMB120.8 million (US$17.8 million) from RMB326.1 million. Gross margin increased to 73.5% from 70.6%.

The number of auto shows organized during the first nine months of 2020 decreased by 70.2% to 219 in 133 cities from 734 auto shows in 233 cities across China. The number of special promotion events organized during the first nine months of 2020 decreased by 56.4% to 156 from 358.

The number of automobile sales transactions facilitated during the first nine months of 2020 decreased by 71.8% to 70,956 from 251,883,and the Gross Merchandise Volume of new automobiles sold during the first nine months of 2020 decreased by 70.6% to RMB10.0 billion (US$1.5 billion) from RMB34.0 billion.

Mr. Wei Wen,Chairman and Chief Executive Officer of TuanChe,commented,"We are pleased to report third quarter results that demonstrated our momentum in rebuilding revenues and reducing net losses in the wake of the severe market conditions brought about by COVID-19 earlier in the year. Our net revenues were RMB100.0 million,26.2% lower compared with the same quarter last year,yet improving 82.7% over the second quarter primarily driven by recovery of offline marketing services as our gradual resumption of offline auto shows that began in May is making steady progress. In addition to the sequential quarter-over-quarter recovery of revenue,we further mitigated our net loss to RMB41.2 million,compared with RMB47.5 million in the same quarter last year.

"If there is a silver-lining to the ravages of the pandemic it has been the phenomenal growth in the digital economy. Our online services,including live streaming events,are benefitting from this trend as we recognize positive revenue contribution from this segment. In the third quarter,net revenues generated from virtual dealership,online marketing services and others increased by 160.9% to RMB15.4 million. A key factor in this area has been the collaborative partnerships we've established with TMall and Baidu Youjia,the auto segment of the giant Baidu portal. Through these engagements we not only become part of their ecosystems contributing value through strong OEM and dealer relationships,but also gain significant exposure for our events through their extensive reach and gain valuable user data and insight. In further developing our digital offerings within the area of automotive marketing,we see a clear pathway to increasing opportunities that play to our strengths in multi-channeled automotive transaction facilitation.

"Core to our value proposition is assisting automotive OEMs and dealers in optimizing their marketing efforts,user acquisition strategies and conversion rates to create a shopping and buying experience for customers that is smooth,natural and effortless. With the multitude of dynamic forces that are now rapidly reshaping the industry,we are confident that drawing on our years of honed expertise and executing our multi-pronged strategies will position us to deliver sustained shareholder value in the long-term" Mr. Wen concluded.

Mr. Chenxi Yu,Deputy Chief Financial Officer of TuanChe,added,"Against the backdrop of a recovering consumer market we are pleased to deliver top-line recovery over the second quarter and moderate the year-over-year decrease,supported by growing offline market activities and the robust performance of our online segments. Maintaining the strength in the prior quarter,net revenues from virtual dealership,online marketing services and others grew 160.9%year-over-year. Furthermore,we continuously executed rigorous cost and expense control measures. With these measures,we were able to register an increased gross margin to 72.1% and a 21.4% reduction of total operating expenses year-over-year,as well as achieve bottom line improvement. As we look through to the end of the year,we are building on this momentum and further strengthening the service capabilities that serve as the foundation of our unique omni-channel platform. We are in a good place to be able to capture long-term prospects in the changing industry and provide real benefits to all in our value chain."

Recent Business Developments

COVID-19 Impact

As the COVID-19 pandemic has become largely under control in China,since the end of May 2020,the Company has gradually resumed offline operations in some cities,with the pace of recovery subject to the ongoing development of the COVID-19 pandemic and the associated government guidance. Recent development of the COVID-19 pandemic in China,such as the cases reported in Xinjiang Uygur Autonomous Region and Dalian city in the third quarter and in the city of Qingdao in October,as well as potential threat of a second wave of COVID-19 in the fourth quarter globally,continues to generate uncertainties over the Company's business,results of operations,financial condition and cash flows. Furthermore,as the business operations of industry customers have also been disrupted by the COVID-19 pandemic,the Company continues to experience delays in collecting accounts receivables from these customers and recorded an increased bad debt expense due to liquidity issues of certain customers. See "Business Outlook" for the Company's current and preliminary views on the impact of COVID-19 on the auto market and operational conditions for the fourth quarter. The Company also continues to closely monitor both the development of the pandemic and regulatory responses and restrictions as well as the impact on the Company's business,financial condition and cash flows. Moreover,the Company has implemented andwill continue to implement measures to adjust the pace of business operations and conserve resources and may resort to other costs cutting measures for cash flow management.

Unaudited Third Quarter 2020 Financial Results

Net Revenues

Net revenues in the third quarter of 2020 decreased by 26.2% to RMB100.0 million (US$14.7 million) from RMB135.6 million in the prior year period,primarily due to a 34.8% year-over-year decrease of revenues generated from offline marketing services to RMB84.6 million (US$12.5 million) from RMB129.7 million in the prior year period,and partially offset by the strong growth of revenues generated from virtual dealerships,online marketing services and others.

Offline marketing services. Net revenues generated from auto shows decreased by 33.2% to RMB82.6 million (US$12.2 million) in the third quarter of 2020 from RMB123.6 million in the prior year period,and net revenues generated from special promotion events decreased by 67.1% to RMB2.0 million (US$293 thousand) in the third quarter of 2020 from RMB6.0 million in the prior year period,primarily due to the adverse impacts of the COVID-19 pandemic.

Virtual dealership,online marketing services and others. Net revenues generated from virtual dealership,online marketing services and others increased by 160.9% to RMB15.4 million (US$2.3 million) in the third quarter of 2020 from RMB5.9 million in the prior year period,primarily due to our continuous expansion of live streaming events and collaboration with Baidu Youjia and Webank.

Gross Profit

Gross profit decreased by 22.6% to RMB72.1 million (US$10.6 million) in the third quarter of 2020 from RMB93.2 million in the prior year period. Gross margin increased to 72.1% in the third quarter of 2020 from 68.7% in the prior year period,primarily attributable to the change in the revenue mix.

Total Operating Expenses and Loss from Continuing Operations

Total operating expenses decreased by 21.4% to RMB114.7 million (US$16.9 million) in the third quarter of 2020 from RMB146.0 million in the prior year period.

Selling and marketing expenses decreased by 15.8% to RMB91.6 million (US$13.5 million) in the third quarter of 2020 from RMB108.8 million in the prior year period,primarily due to decreases in promotion expenses and staff compensation expenses as a result of control measures taken by the Company and reduced offline events.

General and administrative expenses decreased by 36.3% to RMB15.9 million (US$2.3 million) in the third quarter of 2020 from RMB25.0 million in the prior year period,primarily due to the decrease in staff compensation expenses.

Research and development expenses decreased by 41.3% to RMB7.1 million (US$1.1 million) in the third quarter of 2020 from RMB12.2 million in the prior year period,primarily due to the decrease in staff compensation expenses.

As a result of the foregoing,loss from continuing operations was RMB42.6 million (US$6.3 million) in the third quarter of 2020 compared with RMB52.8 million in the prior year period.

Net loss attributable to the Company's Shareholders and Non-GAAP Measures

Net loss attributable to the Company's shareholders in the third quarter of 2020 decreased by 11.9% to RMB41.2 million (US$6.1 million) from RMB46.8 million in the prior year period. Basic and diluted loss per ordinary share from continuing operations were both RMB0.13 (US$0.02) in the third quarter of 2020 compared with RMB0.16 in the prior year period.

Adjusted net loss attributable to the Company's shareholders was RMB38.3 million (US$5.6 million) in the third quarter of 2020 compared with RMB36.9 million in the prior year period. Adjusted basic and diluted net loss per ordinary share were both RMB0.13 (US$0.02) in the third quarter of 2020 compared with RMB0.13 in the prior year period. (1)

Adjusted EBITDA was a loss of RMB37.0 million (US$5.5 million) in the third quarter of 2020 compared with a loss of RMB37.9 million in the prior year period. (1)

(1) For details on the calculation of and reconciliation to the nearest GAAP measures for each of adjusted net income/(loss) attributable to the Company's shareholders,adjusted net income/(loss) per ordinary share and adjusted EBITDA,please refer to "Use of Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP and GAAP Results."

Balance Sheet and Cash Flow

As of September 30,the Company had RMB78.8 million (US$11.6 million) cash and cash equivalents,RMB95.3 million (US$14.0 million) time deposits,and RMB8.9 million (US$1.3 million) short-term investment which was highly liquid,collectively RMB183.0 million (US$27.0 million). Net cash used in operating activities in the third quarter of 2020 was RMB6.9 million (US$1.0 million) compared with net cash used in operating activities of RMB55.7 million in the prior year period.

Unaudited First Nine Months 2020 Financial Results

Net Revenues

Net revenues in the first nine months of 2020 decreased by 64.4% to RMB164.5 million (US$24.2 million) from RMB462.0 million in the prior year period,primarily due to a 71.8% year-over-year decrease in revenue generated from offline marketing services to RMB125.5 million (US$18.5 million) from RMB445.7 million in the prior year period,partially offset by the accelerated growth of new business initiatives,such as live streaming events and collaboration with Baidu Youjia and Webank,which are included in virtual dealership and online marketing services.

Offline marketing services. Revenues generated from auto shows in the first nine months of 2020 decreased by 71.9% to RMB121.7 million (US$17.9 million) from RMB433.0 million in the prior year period,and revenues generated from special promotion events in the first nine months of 2020 decreased by 70.1% to RMB3.8 million (US$0.6 million) from RMB12.6 million in the prior year period,online marketing services and others. Revenue generated from virtual dealership,online marketing services and others increased significantly to RMB39.0 million (US$5.7 million) in the first nine months of 2020 from RMB16.3 million in the prior year period,primarily due to our continuous expansion of live streaming events and collaboration with Baidu Youjia and Webank.

Gross Profit

Gross profit in the first nine months of 2020 decreased by 63.0% to RMB120.8 million (US$17.8 million) from RMB326.1 million in the prior year period. Gross margin increased to 73.5% in the first nine months of 2020 from 70.6% in the prior year period,primarily attributable to the change in the revenue mix.

Total Operating Expenses and Loss from Continuing Operations

Total operating expenses in the first nine months of 2020 decreased by 49.0% to RMB264.2 million (US$38.9 million) from RMB518.1 million in the prior year period.

Selling and marketing expenses in the first nine months of 2020 decreased by 58.3% to RMB171.9 million (US$25.3 million) from RMB412.4 million in the prior year period,primarily due to the decreases in staff compensation and promotion expenses as a result of cost control measures taken by the Company and reduced offline events.

General and administrative expenses in the first nine months of 2020 decreased by 10.2% to RMB68.3 million (US$10.1 million) from RMB76.1 million in the prior year period,primarily due to the decrease in staff compensation expenses.

Research and development expenses in the first nine months of 2020 decreased by 18.7% to RMB24.0 million (US$3.5 million) from RMB29.6 million in the prior year period,primarily due to the decrease in staff compensation expenses.

Loss from continuing operations was RMB143.4 million (US$21.1 million) in the first nine months of 2020 compared to RMB191.9 million in the prior year period.

Net loss attributable to the Company's Shareholders and Non-GAAP Measures

Net loss attributable to the Company's shareholders in the first nine months of 2020 was RMB137.7 million (US$20.3 million) compared to RMB182.9 million in the prior year period. Basic and diluted loss per ordinary share from continuing operations were both RMB0.45(US$0.07) in the first nine months of 2020 compared to RMB0.62 in the prior year period.

Adjusted net loss attributable to the Company's shareholders was RMB122.9 million (US$18.1 million) in the first nine months of 2020 compared to an adjusted net loss of RMB81.6 million in the prior year period. Adjusted basic and diluted loss per ordinary share were both RMB0.40(US$0.06) in the first nine months of 2020 compared to adjusted basic and diluted earnings per ordinary share,which were both RMB0.28 in the prior year period. (1)

Adjusted EBITDA was a loss of RMB119.8 million (US$17.6 million) in the first nine months of 2020 compared to an adjusted EBITDA of RMB86.1 million in the prior year period. (1)

(1) For details on the calculation of and reconciliation to the nearest GAAP measures for each of adjusted net income/(loss) attributable to the Company's shareholders,please refer to "Use of Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP and GAAP Results."

Business Outlook

For the fourth quarter of 2020,the Company expects net revenues to range from approximately RMB145.0 million to RMB155.0 million,representing a year-over-year approximate decrease of 20.7% to 15.2%. This is primarily attributable to the estimated declining number of offline events that is expected to be held in the fourth quarter of 2020 (including auto shows and special promotion events) 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.

Share Repurchase Program

On June 17,2019,TuanChe announced that its board of directors had authorized a share repurchase program of up to US$20.0 million worth of the Company's ADSs for a period not to exceed 12 months and beginning on June 17,2019. The Company had repurchased 427,738 ADSs for approximately US$2.0 million under this program.

Conference Call Information

TuanChe's management will hold a conference call on Friday,December 18,at 7:30 A.M. Eastern Time or 8:30 P.M. Beijing Time on the same day to discuss the financial results. Listeners may access the call by dialing the following numbers:

International:

+1-412-902-4272

US Toll Free:

+1-888-346-8982

Mainland China:

400-120-1203

Hong Kong,China:

800-905-945

The replay will be accessible through December 25,by dialing the following numbers:

International:

+1-412-317-0088

US Toll Free:

+1-877-344-7529

Access Code:

10150388

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 RMB6.7896 to US$1.00,the noon buying rate in effect on September 30,2020 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the Renminbi amounts could have been,or could be,converted,realized or settled into U.S. dollars at that rate on September 30,or at any other rate.

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,business outlook,as well as the length and severity of the COVID-19 pandemic and its impact on the Company's business and industry,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 U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information,future events or otherwise,except as required under law.

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 income/(loss) attributable to the Company's shareholders,adjusted net income/(loss) per ordinary 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 income/(loss) as net income/(loss) excluding the impact of share-based compensation expenses and impairment of investment. The Company defines adjusted net income/(loss) per ordinary share as adjusted net income/(loss) divided by the weighted average number of ordinary shares. The Company defines adjusted EBITDA as net income/(loss) excluding the impact of depreciation and amortization,interest income/(expenses),net,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 are adjusted 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 income/(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,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 TuanChe

Founded in 2010,TuanChe Limited (NASDAQ: TC) is a leading omni-channel automotive marketplace in China. TuanChe offers services to connect automotive consumers with various industry players such as automakers,dealers and other automotive service providers. TuanChe provides automotive marketing and transaction related services by integrating its online platforms with offline sales events. Through its integrated marketing solutions,TuanChe turns individual and isolated automobile purchase transactions into large-scale collective purchase activities by creating an interactive many-to-many environment. TuanChe also provides virtual dealership services by connecting automakers and franchised dealerships with secondary dealers,which ultimately helps automakers penetrate and expand into lower-tier cities. Furthermore,leveraging its proprietary data analytics and advanced digital marketing system,TuanChe's online marketing service platform helps industry customers increase the efficiency and effectiveness of their advertising placements. For more information,please contact ir@tuanche.com.

For investor and media inquiries,please contact:

TuanChe Limited

Cynthia Tan

Tel: +86 (10) 6398-6232

Email: ir@tuanche.com

The Piacente Group,Inc.

Brandi Piacente

Tel: +1 (212) 481-2050

Email: tuanche@tpg-ir.com

Yang Song

Tel: +86 (10) 6508-0677

Email: tuanche@tpg-ir.com

TUANCHE LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amount in thousands,except as noted)

As of

December31,2019

Sept 30,2020

RMB

RMB

US$

(Audited)

(Unaudited)

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

193,920

78,778

11,603

Restricted cash

1,529

9,202

1,355

Short-term investments

-

8,900

1,311

Time deposits

69,762

95,341

14,042

Accounts receivable,net

72,391

48,566

7,153

Prepayment and other current assets

193,782

83,766

12,337

Total current assets

531,384

324,553

47,801

Non–current assets:

Property,equipment and software,net

20,360

6,574

968

Intangible assets

-

22,854

3,366

Long-term investments

7,874

8,912

1,313

Goodwill

-

115,414

17,002

Other non-current assets

7,577

313

46

Total non–current assets

35,811

154,067

22,695

Total assets

567,195

478,620

70,496

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

5,825

4,463

657

Advances from customers

4,805

30,539

4,498

Short-term borrowings

-

3,000

442

Salary and welfare benefits payable

68,025

55,976

8,244

Other taxes payable

22,494

22,488

3,312

Current portion of deferred revenue

-

6,326

932

Guarantee liabilities

-

154

23

Other current liabilities

40,913

33,184

4,888

Total current liabilities

142,062

156,130

22,996

Non–current liabilities:

Deferred revenue

-

1,058

156

Deferred tax liability

-

5,709

841

Other non–current liabilities

2,158

1,700

251

Total non-current liabilities

2,158

8,467

1,248

Total liabilities

144,220

164,597

24,244

Shareholders' equity:

Class A ordinary shares

173

181

27

Class B ordinary shares

35

35

5

Treasury stock

(47,888)

(47,241)

(6,959)

Additional paid-in capital

1,187,577

1,218,659

179,491

Accumulated deficit

(718,666)

(856,333)

(126,124)

Accumulated other comprehensive income/(loss)

2,403

(497)

(73)

Total equity attributable to equity shareholders of

the company

423,634

314,804

46,367

Non-controlling interests

(659)

(781)

(115)

Total shareholders' equity

422,975

314,023

46,252

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

567,496

TUANCHE LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amount in thousands,except share and per share data)

For the three months ended September 30,

2019

2020

RMB

Unaudited

RMB

Unaudited

US$

Unaudited

Continuing operations

Net revenues

Offline Marketing Services:

Auto shows

123,631

82,616

12,168

Special promotion events

6,036

1,988

293

Virtual dealership,online marketing services and others

5,913

15,425

2,272

Total net revenues

135,580

100,029

14,733

Cost of revenues

(42,377)

(27,926)

(4,113)

Gross profit

93,203

72,103

10,620

Operating expenses:

Selling and marketing expenses

(108,801)

(91,628)

(13,495)

General and administrative expenses

(25,049)

(15,944)

(2,348)

Research and development expenses

(12,182)

(7,145)

(1,052)

Total operating expenses

(146,032)

(114,717)

(16,895)

Loss from continuing operations

(52,829)

(42,614)

(6,275)

Other expenses:

Interest income,net

1,240

540

80

Exchange gain/(loss)

515

(323)

(48)

Investment income

278

287

42

Others,net

3,320

670

99

Loss from continuing operations before income taxes

(47,476)

(41,440)

(6,102)

Income tax expense

-

258

38

Net loss from continuing operations

(47,182)

(6,064)

Net loss

(47,064)

Net loss attributable to TuanChe Limited's shareholders

(46,757)

(41,064)

Net loss attributable to NCI

(719)

-

-

Net loss

(47,064)

Other comprehensive income/(loss):

Foreign currency translation adjustments

6,828

(3,776)

(556)

Total other comprehensive income/(loss)

6,828

(3,776)

(556)

Total comprehensive loss

(40,648)

(44,958)

(6,620)

Comprehensive loss attributable to:

Equity shareholders of the company

(39,929)

(44,620)

Non-controlling interests

(719)

-

-

Net loss attributable to TuanChe Limited's ordinary

shareholders per share from continuing operations

Basic

(0.16)

(0.13)

(0.02)

Diluted

(0.16)

(0.13)

(0.02)

Weighted average number of ordinary shares

Basic

293,839,627

305,552,839

305,839

Diluted

293,839

TUANCHE LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amount in thousands,except share and per share data)

For the nine months ended September 30,

2019

2020

RMB

Unaudited

RMB

Unaudited

US$

Unaudited

Continuing operations

Net revenues

Offline Marketing Services:

Auto shows

433,006

121,677

17,921

Special promotion events

12,645

3,775

556

Virtual dealership,online marketing services and others

16,311

39,016

5,746

Total net revenues

461,962

164,468

24,223

Cost of revenues

(135,816)

(43,642)

(6,428)

Gross profit

326,146

120,826

17,795

Operating expenses:

Selling and marketing expenses

(412,444)

(171,942)

(25,324)

General and administrative expenses

(76,051)

(68,267)

(10,055)

Research and development expenses

(29,554)

(24,033)

(3,540)

Total operating expenses

(518,049)

(264,242)

(38,919)

Loss from continuing operations

(191,903)

(143,416)

(21,124)

Other expenses:

Interest income,net

5,953

1,991

293

Exchange (loss)/ gain

(424)

267

39

Investment (loss)/gain

(797)

339

50

Impairment of investment

(1,000)

-

-

Others,net

4,256

332

Loss from continuing operations before income taxes

(183,746)

(138,563)

(20,410)

Income tax expense

-

774

114

Net loss from continuing operations

(183,746)

(137,789)

(20,296)

Net loss

(183,296)

Net loss attributable to TuanChe Limited's shareholders

(182,946)

(137,667)

(20,278)

Net loss attributable to NCI

(800)

(122)

(18)

Net loss

(183,296)

Other comprehensive income/(loss):

Foreign currency translation adjustments

8,244

(2,900)

(427)

Total other comprehensive income/(loss)

8,244

(2,900)

(427)

Total comprehensive loss

(175,502)

(140,689)

(20,723)

Comprehensive loss attributable to:

Equity shareholders of the company

(174,702)

(140,567)

(20,705)

Non-controlling interests

(800)

(122)

(18)

Net loss attributable to TuanChe Limited's ordinary

shareholders per share from continuing operations

Basic

(0.62)

(0.45)

(0.07)

Diluted

(0.62)

(0.45)

(0.07)

Weighted average number of ordinary shares

Basic

295,182,891

304,004,138

304,138

Diluted

295,138

TUANCHE LIMITED

RECONCILIATION OF NON-GAAP AND GAAP RESULTS

(Amount in thousands,except share and per share data)

For the three months ended September 30,

2019

2020

RMB

Unaudited

RMB

Unaudited

US$

Unaudited

Net loss

(47,064)

Add ：

Depreciation and amortization

944

1,788

263

Subtract：

Interest income,240

540

80

EBITDA

(47,772)

(39,934)

(5,881)

Add ：

Share-based compensation expenses

9,891

2,918

430

Adjusted EBITDA

(37,881)

(37,016)

(5,451)

Net loss

(47,064)

Add ：

Share-based compensation expenses

9,918

430

Adjusted net loss

(37,585)

(38,264)

(5,634)

Adjusted net loss attributable to the Company's shareholders

(36,866)

(38,264)

(5,634)

Adjusted net loss attributable to NCI

(719)

-

-

Weighted average number of ordinary shares

Basic

293,839

Diluted

293,839

Adjusted net loss per share from continuing operations

Basic

(0.13)

(0.13)

(0.02)

Diluted

(0.13)

(0.13)

(0.02)

TUANCHE LIMITED

RECONCILIATION OF NON-GAAP AND GAAP RESULTS

(Amount in thousands,

2019

2020

RMB

Unaudited

RMB

Unaudited

US$

Unaudited

Net loss

(183,296)

Add ：

Depreciation and amortization

2,342

5,234

771

Subtract：

Interest income,991

293

EBITDA

(187,357)

(134,546)

(19,818)

Add ：

Share-based compensation expenses

100,300

14,765

2,175

Impairment of investment

1,000

-

-

Adjusted EBITDA

(86,057)

(119,781)

(17,643)

Net loss

(183,296)

Add ：

Share-based compensation expenses

100,000

-

-

Adjusted net loss

(82,446)

(123,024)

(18,121)

Adjusted net loss attributable to the Company's shareholders

(81,646)

(122,902)

(18,103)

Adjusted net loss attributable to NCI

(800)

(122)

(18)

Weighted average number of ordinary

shares

Basic

295,891

304,138

304,138

Diluted

295,138

Adjusted net loss per share from

continuingoperations

Basic

(0.28)

(0.40)

(0.06)

Diluted

(0.28)

(0.40)

(0.06)

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