TuanChe Limited ("TuanChe" or the “Company”) (NASDAQ:TC), a leading omni-channel automotive marketplace in China, today announced that its financial and operating results for the first quarter of 2020 are expected to be materially and adversely affected by the recent and fast-evolving coronavirus outbreak in the central city of Wuhan (in Hubei province) and other cities in China (the “Outbreak”).
As a result of the Outbreak and widespread public concerns, the Company has to significantly reduce the number of offline sales events in the coming months. All auto shows and special promotional events previously scheduled in February have been officially cancelled. The Company believes the probability for a reduction in offline sales events currently scheduled in March is substantial, and will provide timely update when there is further clarity. In light of the reduction in the number of offline sales events in the coming months, the Company’s financial and operating results for the first quarter of 2020 are expected to be materially and adversely affected.
The Company is taking actions to further reduce expenses and conserve resources in addition to the decrease in direct costs associated with the cancelled offline sales events. Meanwhile, the Company continues to accelerate the development of its virtual dealership and online marketing services.
Given the fluid and fast-evolving situation, the Company currently does not have a view on whether the reduction in offline sales events will continue in the second quarter and beyond, but will continue to closely monitor the situation and comply with directives and restrictions imposed by relevant authorities in China.