Gross profit margin was 62.5% ( ). Adjusted EBITDA was RMB10.7 million ( US$1.4 million ). The Company’s strong financial performance was driven by a robust user base and a growing number of transactions. The Company’s user base grew by 15% year-over-year, reaching 10.2 million active users. The number of transactions increased by 20% year-over-year, reaching 1.2 million transactions.

Mr. Simon Li, TuanChe’s Chief Financial Officer, highlighted the company’s progress in managing its financial performance amidst challenging market conditions. He emphasized the effectiveness of the company’s cost-cutting measures and operational efficiency improvements.

1. **Impact of the Economic Downturn:** Discuss the potential reasons for the decline in net revenues from auto shows and special promotion events, considering the broader economic context. 2. **Decline in Offline Marketing Activities:** Explain the relationship between reduced customer marketing budgets and the decrease in offline activities. 3.

This reduction was driven by various factors, including: 1. Cost optimization initiatives implemented across the company, 2. The shift towards a more efficient manufacturing process, 3. The decline in raw material prices, 4. Favorable currency exchange rates, and 5. Reduced marketing expenses.

The company experienced a significant increase in general and administrative staff compensation expenses in the first half of 2024, leading to a decrease in net income. This increase in compensation expenses was primarily driven by a rise in salaries and benefits for employees. The company also saw a decrease in allowance for doubtful accounts, which is a provision for potential bad debts.

The company’s financial performance in the first half of 2024 was marked by a significant decrease in operating losses. This improvement was attributed to several factors, including a reduction in operating expenses and a rise in revenue. The company’s revenue increased by 14.0% year-on-year, reaching RMB55.2 million. This growth was driven by a strong performance in its core business, which saw a significant increase in sales. The company’s operating expenses decreased by 14.0% year-on-year, contributing to the overall decrease in operating losses.

This decline in adjusted EBITDA reflects the company’s ongoing efforts to streamline operations and reduce costs. The company’s focus on cost optimization has led to a reduction in its workforce, which has resulted in a decrease in operating expenses. This strategic move has helped the company to improve its profitability and efficiency.

These forward-looking statements relate to future events and are not guarantees of future performance. **Important:** This is a general introduction to the concept of forward-looking statements and should not be considered legal advice.

* **Purpose:** The primary purpose of using non-GAAP financial measures is to provide a more comprehensive understanding of the company’s operating performance. * **Context:** These measures are often used by investors, analysts, and management to evaluate a company’s financial health and performance. * **Examples:**
* **Adjusted net loss attributable to the Company’s shareholders:** This measure excludes certain expenses, such as restructuring costs or stock-based compensation, which may not be indicative of the company’s core operating performance.

The company’s core business is to facilitate the purchase and sale of new and used cars, as well as the provision of related services like financing, insurance, and maintenance. TuanChe’s business model is based on a commission-based structure, where the company earns a percentage of each transaction completed through its platform. This model allows TuanChe to incentivize both buyers and sellers to use its platform, as they benefit from the convenience and efficiency of the online marketplace.