TuanChe(US:TC)2021-04-12 17:15Financial Data and Key Metrics Changes - The company's net revenues for Q4 2020 were RMB165.8 million, which grew 65.7% compared to the previous quarter but decreased 9.3% year-over-year [5][14] - The net loss attributable to shareholders narrowed to RMB25.4 million in Q4 2020, a 38.4% improvement from Q3 2020 and a 62.5% decrease year-over-year [5][14] - Gross profit for Q4 2020 was RMB120.6 million, down 8.7% year-over-year but up 67.3% quarter-over-quarter, with a gross margin of 72.8% [17] Business Segment Data and Key Metrics Changes - Revenues from offline marketing services, primarily from auto shows, decreased by 24.4% year-over-year to RMB128.8 million but increased 55.9% from Q3 2020 [16] - Special promotion events generated RMB1.1 million in Q4 2020, down 84.9% year-over-year [16] - Revenues from virtual dealership and online marketing services surged 579.2% year-over-year to RMB35.9 million, driven by successful online promotion events and strategic collaborations [10][17] Market Data and Key Metrics Changes - Passenger vehicle retail sales in China grew 7.5% year-over-year in Q4 2020, contributing to the company's revenue growth [5] - For the first two months of 2021, auto passenger retail sales in China grew close to 70% year-over-year, indicating a strong recovery in the market [26] Company Strategy and Development Direction - The company is focusing on a hybrid model that combines offline auto shows with online marketing services, aiming to adapt to changing consumer behaviors towards online commerce [10][13] - The management believes that the auto show business will remain a core part of the revenue mix, while online services will continue to grow significantly [30] Management Comments on Operating Environment and Future Outlook - The management expressed optimism about the macroeconomic recovery in China, which is expected to support growth in the automotive sector throughout 2021 [28] - The company anticipates a significant increase in net revenues for Q1 2021, projecting between RMB76 million and RMB80 million, representing a year-over-year increase of approximately 684% to 725.5% [20] Other Important Information - The company maintained a healthy balance of cash and cash equivalents, totaling RMB185.4 million, providing a runway for future growth [14] - The company is evaluating a proposal for potential privatization, which is currently under review by a special committee [24] Q&A Session Summary Question: Status update on the proposal for taking the company private - The company is evaluating the proposal in-depth and is in the process of forming a special committee for further evaluation [24] Question: Consumer appetite for big-ticket purchases and overall financial health of auto partners - The macro economy in China is improving significantly, with auto passenger retail sales growing close to 70% year-over-year in early 2021 [26] Question: Expectations for new passenger auto sales growth throughout 2021 - The management is optimistic about continued growth in the auto sector for 2021, supported by positive macroeconomic trends [28] Question: Future focus on virtual dealership versus offline auto shows - The auto show business will remain a core product, but online services are expected to become an important part of future growth [30] Question: Recovery timeline for the number of auto show events - The company aims to recover the number of auto shows to levels seen in 2018 and 2019, prioritizing ROI and operational efficiencies [33] Question: Plans for operating expense investments as revenue recovers - Operating expenses are expected to increase in absolute figures, but the percentage of operating expenses relative to revenue will be lower than in previous years [35]