Token Cat Limited Q1 FY2020 earnings call

• Responded to COVID-19 by adjusting operations, focusing on health and safety of employees and customers. • Accelerated online strategy through partnerships with Baidu Youjia, deepening collaboration with TMall Auto, and completing acquisition of Longye International. • Managed cost structure to maintain cash balance and liquidity, with operating expenses declining 47% year-over-year. • Adjusted business expansion pace while enhancing core auto show business for high ROIs. • Made progress in online business despite challenges, with virtual dealership and online marketing services revenue increasing.

First, offline marketing services: Due to COVID-19, auto shows and special promotion events were suspended in Feb and Mar 2020, resulting in a 95% year-over-year revenue decline. In April, few events were held, and since May, it started recovering. Second, virtual dealership and online marketing services: Recorded revenues of RMB3.7 million in Q1 2020, an increase of 12.3% year-over-year. Offline marketing services had a 95% revenue decline, while virtual dealership and online marketing services contributed the remaining revenue.

• For the second quarter of 2020, net revenues are expected to be between approximately RMB47 million and RMB32 million, representing a year-over-year approximate decrease of 76.9% to 74.4%. • This forecast reflects current and preliminary views on market conditions and COVID-19 impact, which is subject to change.

• Continuing uncertainties in operational and financial performance due to the COVID-19 outbreak. • New COVID-19 cases reported in June in Beijing area, affecting the pace of recovery.

Q: Can you share more updates on the current situation of the auto market and the impact of coronavirus?

A: In Q1, China automobile sales declined by 42.5% y-o-y. Domestic auto sales are gradually recovering with total car transaction numbers growing in April and May. However, new cases in Beijing in June bring uncertainties.

Q: Can you provide an explicit contribution of revenue from Longye?

A: Not ready to disclose detailed GAAP figure, but Longye contributed to Q1 revenue and will continue to contribute to total revenue stream.

Q: Regarding 2Q revenue guidance and sales trend, any preliminary data?

A: April revenue was slow, but May and June saw steady recovery with auto shows and events held. China auto transaction data rebounded in April and May.

Q: Expectations for 2021 revenue and auto show events?

A: Cannot provide forward-looking statement on 2021 revenue due to uncertainties in pandemic development.

Q: Will the 7% savings on vehicle purchases change in the future?

A: Discounts vary by OEM; strong brands may have smaller discounts, weaker brands larger discounts. Overall discount may shrink as market recovers.