Q3 2019 Earnings Call
For the so caught up to 19 compared to R. and B. 2.72 billion in before corresponding period in 2080.
Revenue from the advertising and desecration business for the third quarter up to the under 19 was R. and B. 923.6 million compared to R. and B. 1.6 barely in in the corresponding period into some in 18, mainly due to the decreasing marketing spending by automakers dealers costs by the continuous eight decline ourselves.
Revenue from transaction services business for the so called over 219, what's army to 1.4, yeah, representing a 3.9 per cent increase from one arm be 1.36 billion in the corresponding purity tooth on an 18, mainly attributable to the growth of accompanies known facilitation service.
Revenue from the additional marketing solution business for the so called services on the 19 with R. and B.
200, a 1 million and compared to R. and B. 305 million in the corresponding period. After about an 18, mainly due to the decrease the marketing spend five automakers costs by but continue to decline you've ourselves costs of revenue for the so called them to sign 19, what's our M.B. 965 million.
Compared to R. and B., one <unk> in the corresponding gear into it on 18.
Revenue as a percentage of revenue instead of 2019, <unk>, 38% compared to 38.7 per cent in the court signing period in 2018 <unk>.
Gross profit for the so called her to 19.
And the 1.58 billion compared to R. and B. 1.67 billion in the corresponding period into than an 18, selling and administrative expenses well armed at 1.63 billion plus several corridor. So it's on the 19, representing a 7.4% increase from the corresponding period into them.
18. This increase was mainly primarily due to the increasing marketing expenses associated with the company's mobile apps and increasing provision for credit losses of finance receivables, partially offset by the decreasing sharebased compensation.
Product development expensive as well armed 149.6 million for the so called or something in 19 compared to arm be 140 54.6 million in the corresponding period into that an 18, sharebased compensation, which was allocated to the related buying.
<unk> operating expenses or what R., and B. 101 million so quarter of 219 compared to be 173.1 million in that point corresponding Puritan into than 18, Nongaap income from operations in third quarter to the nine Kinglets R.M.B. 100 903 million.
Compared to non gab income from operations of R., and B. 408.3 million in the corresponding period in 2018.
Lost in so caught up to the 19 <unk> arm be 161.5 million compared to another also to have <unk> in the corresponding period until an 18 net loss attributable to <unk> to the 19 with R.M.B. 164.7 million compared to.
Well off actually beautiful too auto of R.M.B. 26.7, <unk> in the corresponding period in 2018.
Nongaap net income in the so called her to the from the 19 with R.M.B. 100 at 9.4 in N. compared to non gap that income of R. and B. 345.
Earlier in the corresponding purity in 2018, Nongaap net income attribute about.
So called her up to that in 19 was R. and B. 51.9 million compared to non gap net income.
Attributable to bit auto on the 265.8 million in the corresponding period in 2018 basic undiluted.
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Quarter to the 19 amounted to arm be.
Two point 28, and army to point 29, respectively, Nongaap basic undiluted net income for 80 S. in third quarter to turn it 19 amounted to arm be zero point, 76, and zero point 74, respectively.
Well September 30th 2000 in 19, the company had <unk> <unk> <unk> and restrict the cache of Army 9.3, Belyea cash provided by operating activities cash provided by.
Investing opportunity activities and cashing using financing activities in third quarter ton of 19 or arm be 256.3 million R. and B. two point before a forced to be built in and the army at 1.23 barrier respectively.
Number of employees totals 8061 soft September 30th tooth on the 19th including employees of entities in which bit auto has acquired and hosts controlled interest us off such date. This represents represented a 2.4, 0.2% you over your increase in addition.
Given <unk> scale and its significance to bit auto I would also like to share with you some of <unk> I'll, putting in a financial highlights for Q3 to them in 19.
In the folder eating continue to develop it's not facilitations services and a further tightened its risk control standards to better adjust to China's general <unk>.
<unk> economic condition, and changing regulatory environment. The total aggregate financing amount facilitated through eating snow solicitations services and itself opera <unk> the financing business in the third quarter, what's approximately arm B. 9.7 billion.
End up <unk> you can continue to develop it's not facilitations services and further strengthens partnership by working with tough banks and the financial institutions, including in all the finance company.
<unk> for the three month is ended September 30th 219 eating facilitated approximately 94000 financial transactions that presenting a year over year increase of 213%.
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The third quarter to tighten 19 on the U.S. gap earrings total revenue reached Army 1.42 billion, representing a you over your increase of 3.1% net cost service revenue, which include revenues from long participation transactions and you self operated financing leaves transactions.
Okay. During the period reach the R. and B. 751.5 million.
<unk>, representing a year over year increase off for 15.6%.
I saw September 30th 219, 90 days 90, they've plus including <unk> 180 days pass a pastor ratio and at 180, Dave <unk> have to racial for all financial transactions, including a third party long facilitations, well, one or a 1.29% and.
Six 6% respectively.
Also there's a company updated related <unk>, which I would like to bring to your attention.
But auto entered into a voting proxy agreement with <unk> Percentwhich 10 cent granted but all the among others the rights to vote certain shares of issuing help I, 10th and all the terms and subject to the conditions set out to set out in the voting proxy agreement.
Result, up the voting proxy agreement the financial statement financially machine.
Remain consolidated would spit all those financial statements. The voting proxy agreement will be effective from November 16th tooth on the 19 to November 16th 2020, and it will be automatically extend it for one year on November 16th 2020, unless jointly terminated by 10 <unk>.
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With that.
I will turn to guidance for the fourth quarter of 2019.
But although currently expects to generate revenue in a range of aren't be one.
2.4, or 5 billion to arm be.
2.55 billion in the fourth quarter of 2019. This forecast takes into consideration of functionality factors and bit all those business and it cools exclude any impact about foreign currency fluctuations. It reflects management's current and the preliminary review, which is subject to change.
Please note that the nonbinding going private proposal, but all the receiver is currently under evaluation by the Special Committee formed by our independent directors with support from a external legal counsel and independent financial adviser as previously announced.
Management, if not in the position to comment on the proposal in our daily operations are not influenced by the <unk> potential going private transaction.
Let's now starts at you and they session and the myself shot <unk> are available to tip. Your question.
Crater. Please go ahead.
The question and answer session of this conference call. This part in a moment in order to be fair aunts uncles and aunts, who interesting ask questions. We will take one question at a time from each call. Her if you have more than one question piece requests to join the question came again. After your first question has been interest.
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Your first question comes from the line of been been doing from J.P. Morgan.
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So so so so also the towards the fourth fourth point or be a marketing department of auto makers were also use their remaining budget to help.
Reach their talk sales target for a year and I'm sure no ormond's that <unk> <unk> hit hold on a yet more chan I kind of Huh short <unk> nah kill so that <unk> yeah.
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Meanwhile, our based the marketing solution, which <unk> two two if now any momentum it's been use by more <unk> more customers. So we see <unk> a customer base from the on O.U.M., citing queue for and.
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So we we extract sequentially some cuticle for the advertising business well we cover.
But although a four year basis way scaling.
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So we are still quite cautious on the outlook of.
The auto market and also be and <unk> and also the auto advertising on advertising market. We are I think it's still too early to say that to be recovery in Q4 in a in automotive mocking spent if any indicator of a improving car market or a marketing.
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So secondly, I'll I'll move out movie onto a question about the content.
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So we we we observed that in the in the past few years with the auto market, becoming ever more competitive. The automakers are are launching morning more models in order to capture any monkey opportunity eating every sub category or sub sector segment.
So as a result in a in a in the last five years, we noticed that the model on fell on the motto available in a in a market increase from a 352 over a 1300. So as a result, the traditional <unk> content.
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The by the younger generation of Internet users.
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So I believe this this change will make on content more professional in terms of the quality of content and also more interactive in terms of engagement with the users.
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So far after a a quarter of trial, we have received a very positive feedback from both the consumer 10 also from the Oh, yes on the.
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