Friday, 23 February 2024


TuanChe regains Nasdaq compliance by meeting bid price requirement By

Mubadala-backed AI firm G42 sets up $10 billion tech fund

© Reuters.

BEIJING – TuanChe Limited (NASDAQ:TC), an automotive marketplace in China, has regained compliance with the Nasdaq’s minimum bid price requirement, the company announced Monday. This follows a notification of non-compliance received on February 17, 2023, when the closing bid price for TuanChe’s American depositary shares (ADSs) fell below the required $1.00 for 30 consecutive business days.

The company was given 180 days to meet the minimum bid price requirement, which stipulated that the closing bid price of the ADSs had to be at least $1.00 for a minimum of ten consecutive business days. TuanChe has achieved this condition, with its closing bid price staying at or above $1.00 from January 26 through February 8, 2024. As a result, the Nasdaq Listing Qualifications Department issued a Compliance Notice to TuanChe, confirming that the company is now in line with the rule and closing the matter.

TuanChe, established in 2010, connects automotive consumers with industry players such as automakers, dealers, and other service providers through its integrated marketplace. The company leverages online platforms and offline events to facilitate automotive marketing and transactions, aiming to transform individual transactions into collective purchasing activities.

The announcement is based on a press release statement from TuanChe Limited.

InvestingPro Insights

Following the news of TuanChe Limited’s regained compliance with Nasdaq’s minimum bid price requirement, a closer look at the company’s financial health through InvestingPro data reveals a challenging landscape. Despite the positive stride in share price, TuanChe’s market capitalization stands at a modest $2.97M, reflecting the market’s current valuation of the company. The firm’s revenue for the last twelve months as of Q2 2023 is reported at $25.65M, however, this represents a significant decrease of -20.27% from the previous period. This contraction in revenue could be a point of concern for investors considering the company’s future growth potential.

On the upside, the company’s gross profit margin remains strong at 57.58%, indicating a solid capability to retain earnings from its sales after accounting for the cost of goods sold. Yet, the negative revenue growth coupled with a substantial operating loss of $13.86M, which translates into an operating income margin of -54.04%, may signal operational challenges ahead. The InvestingPro data also shows a concerning one-year price total…

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