Token Cat Limited Q3 FY2020 earnings call

• Third quarter net revenues were RMB100 million, 26.2% lower than same quarter last year but exceeded the top end of guidance range by 5.3% and improved 82.7% over second quarter. Net loss attributable to shareholders was RMB41.2 million, better than RMB46.8 million in same quarter last year. • Offline marketing services: Resumed offline events in late May, organized 152 auto shows in 107 cities in Q3, with revenue from auto shows increasing 147.6% quarter-over-quarter. Strategically focus on generating higher ROI and leveraging insights for targeted promotional events. • Virtual dealership and online marketing services: Revenues grew 168.9% year-over-year due to online promotion events, collaborations with Baidu Youjia and TMall, and acquisition of Longye International Limited. Saw sustained positive revenue contribution from this segment with growth in digital economics.

Offline marketing services: Delivered net revenues of RMB82.6 million in the third quarter, a year-over-year decrease of 33.2% but a quarter-over-quarter increase of 147.6%. Revenue from special promotion events was RMB2.0 million in Q3 2020, a year-over-year decline of 67.1%. Virtual dealership, online marketing services and others: Revenues reached RMB15.4 million, increasing 168.9% year-over-year. This was driven by successful online promotion events, strategic collaborations, and the acquisition of Longye International Limited.

• For the fourth quarter of 2020, net revenues are expected to be between approximately RMB145 million and RMB155 million, representing a year-over-year approximate decrease of 20.7% to 15.2%. • Primarily attributable to the estimated declining number of offline events expected in Q4 due to COVID-19 pandemic.

• Uncertainties related to COVID-19, including potential second wave of COVID-19 globally and recent COVID-19 cases in some Chinese cities, which continue to affect the company's operations and financial results.

Q: Provide perspectives on consumer purchase appetite for big ticket items like new cars and update on financial health of auto partners.

A: Consumer confidence in big-ticket items like autos is recovering strongly, mirroring macro market recovery. Auto market is recovering at the same pace as macro market. Major operation partners (OEMs and dealers) are seeing continuous improvement in acceleration.

Q: Impact of COVID vaccines in China and current business status.

A: Vaccine is still in early stage, Chinese people are cautious in public areas, offline consumption has recovered but pandemic still impacts auto shows in some cities.

Q: Preliminary data on auto sales facilitation in Q4 and if offline auto shows will increase.

A: Auto passenger car sales in China continued to recover from May, with October and November showing growth. Offline business gradually recovered but lingering uncertainties due to COVID cases and potential second wave affect number of auto shows that can be held.

Q: Decline in number of cities with sales operations and reason.

A: Maintained cities with higher ROIs and higher frequencies in auto shows, turned to online shows for more remote cities with lower ROIs to be more cost-effective