Token Cat Limited

Third-quarter net revenue was RMB61.1 million, down 38.9% from RMB100 million a year earlier. Gross profit was RMB46.8 million, down 35.1% from RMB72.1 million, while gross margin improved to 76.6% from 72.1%. Net loss attributable to the Company’s shareholders narrowed to RMB36.8 million from RMB41.2 million, and adjusted net loss attributable to shareholders was RMB34.4 million versus RMB38.3 million last year. Adjusted basic and diluted net loss per ordinary share were both RMB0.11 versus RMB0.13 last year, and adjusted EBITDA loss was RMB33.5 million versus RMB37.0 million. Cash and cash equivalents plus restricted cash were RMB134.3 million at September 30, 2021. For Q4 2021, management expects net revenue of approximately RMB70 million to RMB80 million, implying a year-over-year decline of about 57.8% to 51.7%, due mainly to fewer offline events and chip shortages.

Wei Wen framed the quarter as a difficult period shaped by pandemic disruptions and the global chip shortage, but emphasized that the company continued to push online initiatives and control costs. He spent much of his remarks on the strategic move into EV manufacturing, saying TuanChe plans to build a design R&D and manufacturing team and leverage its customer base, sales network across 125 cities, and potential strategic partners. His tone was optimistic and strategic, but still cautious about execution and partnership progress.

Chenxi Yu said Q3 results were in line with expectations given the weakening auto market and pandemic impact. He highlighted a revenue mix shift toward virtual dealership and online marketing, which rose to RMB26.6 million from RMB15.4 million, and noted gross margin improvement to 76.6% from 72.1% because of that mix change. On costs, selling and marketing expense fell to RMB59.9 million from RMB91.6 million, while G&A was RMB17.0 million and R&D was RMB9.2 million; cash and restricted cash totaled RMB134.3 million at quarter-end. He guided Q4 revenue to RMB70 million to RMB80 million, citing fewer expected offline events and ongoing chip shortages.

There was no substantive analyst Q&A; the call ended right after management’s prepared remarks. The most direct forward-looking issue addressed was Q4 revenue guidance, which management tied to the expected decline in offline auto shows and special promotion events because of COVID-19 and chip shortages. Management also repeated that discussions with potential EV strategic partners are ongoing and that any major business transaction progress would be announced in a timely manner.