Q4 2022 Uxin Ltd Earnings Call
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Ladies and gentlemen, thank you for standing by and welcome to <unk> earnings Conference call for the fourth quarter and fiscal year ended March 31 2022.
At this time, all participants are in listen only mode.
After management's remarks, there'll be a Q&A session today's.
Today's conference call is being recorded if you have any objections you may disconnect at this time.
I'd now like to turn the call over to your host for today's conference call Ms. Joyce Tang IR director of the company. Please go ahead ma'am.
Thank you operator.
Hello, everyone and welcome to use as earnings conference call for the quarter ended March 30.
When do you send it to you on the call today are <unk>, founder and CEO and John D. C F O.
<unk> will review business operations and company highlights.
My jaw, who will discuss financials and guidance.
They will both be available to answer your questions. During the Q&A session that follows before we start I would like to remind you that this call may contain forward looking statements made under the safe Harbor provision of the U S. Why does he created litigation Reform Act of 1995.
These statements are based on management's current knowledge.
Is it about future events that involve known or unknown risks and uncertainty, which could cause actual results to differ materially from those in the Pilbara looking statement.
<unk> does not undertake any obligation to.
Any forward looking statements, except as required under applicable law.
For more information about potential risks and uncertainties. Please.
Just to refresh it almost filings with SEC with that I'll now turn the call over to our CEO . Okay. Please go ahead.
Thanks Joyce.
But I'll caution you again go ahead please.
Hopefully this is Jamie.
Hello.
We had a farm downs look when they might close at a detailed real time CGM dream on this issue, but that's after you have.
They do their thing John .
Hello, everyone and thank you for joining our earnings call I'm paid to better communicate with both domestic and international E matches. My remarks today will still be in both English and Chinese.
Okay.
And that is what you do for.
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So again Jamie.
Jimmy let either contribution <unk>.
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In the fourth quarter last year.
Last week on our growth strategy and business model transformation in order to provide our customers a hassle free used car purchase experience with massive high quality and value for money vehicle selection as well as superior before and after sale services had any successful each NZ transitioning.
From a third party commission based model to a inventory only model. We opened yeah on IRC, our first vehicle inspection and Reconditioning center as well as a warehouse type superstore.
Already our opinion on the changes youre selling opinion of the finance industry.
The industry downturn.
The agenda hard with Google maps again with you soon.
So you're entering in two Wheeler each reason for the <unk> and prudent use of the content.
Well remember Jonathan well done <unk>.
So the oracles attention chip solutions cool, yeah, well shortly.
On the retention.
And the vehicle here 2022, we have continued in the same direction and remain committed to our mission.
Creating an industry leading used car body is doing with the customer centric approach.
It's finding the right changes such as the repeat research all Colby, let me have him.
Nathan you can progress in car T used car offering one once both of these customer centric experience and social responsibility.
And yet we will miss Susannah keeping the team will be all.
The usual.
Yeah.
Yeah, Sean can be Susanne, how many of them are you our opinion quality, social or you own chinchilla with actual she doesn't usually it's only on retail number you see that showroom really seriously.
<unk> controller and go back already or are you, saying you had an.
And finally on the diesel due to financial Das Yankee true.
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So you can block on Pentagon row.
You go to Australia, and Japan, when completed shutdowns because you Pablo.
And does this put your 2022 we achieved our goals for the year total transaction volume for the year what people can do their several hundred people to fight the unit, representing 49% year over year growth.
Total retail transaction volume for the year with 5211 units and any sequential growth momentum every quarter of the year total revenues were RMB 144 billion, representing a 149% year over year growth.
Our C. I ask these operations were disrupted by Covid countermeasures in the fourth quarter, which is also the traditional used car off season due to the spring Festival holidays. However, we achieved Ohio. He touched on session volume as a result of the sales ramp up in our closely I see.
While we still occasionally if it's COVID-19 related challenges.
We are committed to executing our development plan and sustaining our growth momentum.
You will see in the IRC hole, so you're showing your opinion on that Jose Louis PR, but using the IRC is enjoying its usual question.
Hello, Michael.
Okay.
We can back could be higher in the hierarchy. So usually you hook issues Homoiousian thankfully oncological theyre going to be honest with you I'm going to talk on that okay. Thanks.
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We can share them with you actually.
Oh, John So you know that he's going to be Sean Shahinian can live without one had the harvest, but we're using coupons culturally on children English language changed for you with Huntington common fungi.
To beauty Alastair I T E N. We opened our stick and I are seeing close day in November 2021. This is the first phase of our clubs. They I see the whole club. The IRC is backed by our Johnny Lassman of RMB, two 5 billion because they each Hong Kong government cause.
They used to redevelop for auto industry.
Variable policy, leading vehicle manufacturers as well as mature upstream and downstream supply chain.
Consolidated industry sources.
We plan to leverage our expertise and start of the art technology to recondition vehicles at a super largest scale.
Production capacity is expected to be between 6000 and 100000 units.
Italy.
To ensure a stable and reliable supply of high quality and cost me back if he used car.
The project is progressing well and the completion of the call. The assay will serve as a solid foundation for you see to gain customer touch and feel is sustainable business growth in the long term.
That's really the engine Hudson's Bay.
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That's correct.
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So it'll blend or you can call me be shopping shops.
And the possibility of yet we have heavily invested in the refined refinement of our used car supply chain, especially in vehicle acquisition in fashion and reconditioning.
Have a established acquisition channel to purchase a used car from individual consumers.
<unk> platform auto manufacturers and copula <expletive>.
The red purchased from individual consumers accounted for 30% of our total acquired the vehicles in the fourth quarter the.
The increasing proportion of direct purchase allow us to further reduce our acquisition costs, which will ultimately enable us to offer more competitive pricing to our customers.
So you'll see it with or without telling me the oxygen. So she can talk a wee hold.
What do you want to antonio's questions shortly bottom booths actually shutdown shambled for Gogo illogical.
And some new ones.
Uhm daily Ultra in particular.
You talked about building out of Sudan.
In one country and tackle Tianjin Shanghai Truthfully, you show a whole food if you wanted to see.
As for vehicles bashing.
We are actively acquainted and optimize these fashion statement and system powered by China Auto China Auto is our national patent use cotton fashion season to ensure that all of you telling me it could cause you to pass on national tenders on the reconditioning.
He further streamline workflows and introduce modern techniques.
Initiatives.
In pooled vehicle quality with lowest cost true economic of scale under our IRC operation.
To maximize this end to end supply chain efficiency, we have developed an integrated information system covering the whole process from vehicle acquisition is fashion and recondition It yourself and after sale services.
Does it assume new indices for the Vogtle project utilization than we are.
It's equal to you well.
<unk> mentioned that you forgot a bulk will rely on retail shelves beyond Easter floor, and Volvo to Notionally on tripping pipe being change anything about the lesson for us.
We don't have much at all since you announced your intention be useful hopefully push it will mean to us.
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Gotcha.
In anticipation of the rising era of new energy vehicles, you'll see what I can see extending into business and get stumped me. Our used car offering now have a magical matrons E V brands, including Tesla Neil the auto cellphone you I D.
As such we have proactively building beautiful acquisition channels and developed the east fashion Reconditioning and service capability to buy especially designed for us anyways.
The thing on expanding use these key services pie.
Established a strategic partnership with any mean manufacturers.
Buyers of spare part as well as any read dealerships.
We start with a solid strategy and operational initiatives you. She is well prepared for the opportunities and the right team and E market.
I was hoping to drill.
I'm sure that's happening.
Well no one is going to finish it on social counsel, Josh if you found a full mortgage rebound.
The rebound you you'll see that high end of your fresh interviews with your local with a huge chunk of them are part, which would tell you. The abuse engine truly say truthfully think only show the Shelby J E. T. You tend to Chipotle solution will materially the XI ankles gorilla IRC fully come from Saddam at home.
Could you talk unacceptable evolution cycle map on June 12.
The shuttle Boucher hungry and humble bundle, which obviously nickel might be yes.
Based on our ease of understanding of customers, who used car purchasing behaviors in China.
We have upgraded our sell side analysts for online only to an omni channel approach.
In 2018, we launched a using national wide online shopping mall, making us the first to offer one stop online Cross region purchased services in the used car industry in China.
After four years of operation, we managed to achieve best in class Cross region, all of our transactions capabilities and experiences for our customers on top of our leading online model the older Irt's equals a NCR at the type of warehouses superstore.
I ask this enable regional customers to help us do I, even thought it would be written through Ritchie philosophy consulting test driving and purchasing deal every class.
So the issue will be mindful in terms of wins, you Shlomi, where you will see it other than to see more of a mitral.
Montana usual trend lines here.
Hi, guys.
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If you look at myself each other using either.
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Actually the first phase of our clothing, I I see it as a country. The largest self all used car superstores are in China. Yeah. I asked he has a total floor area of nearly 100000 square meters and the capacity for 2500 retail vehicles.
Pat Mediasite luxury models from 52 months.
Of course, yeah, I honesty, and warehouses to push towards that could become famous and popular use cross shopping destination in their respective regions.
Both stores have gained leading regional market shares Bastille growing the regional brand recognition and reputation among customers before to strengthen our part of British national National Y and boost our own lifestyle.
Convenient nutrition.
And each of them.
You'll see it until we do wireless local and I think that she loves magic leap shelving remind people don't use them already are and you and let you know.
Could you opinion here.
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Even if you deal with lutetium BHP N C. Excuse me about this issue well then can do Cooperstown G suite T systems, Yeah, well done guys into social touch all foods that are sure Google.
Google Angelica, which you can see yourself each with a cold beaches nice Susanna Chau now culturally on Laguna.
Our commitment to providing high quality vehicles for that.
Theory of customer service is paying off we are now one of the most attractive used car brands in China.
In the fourth quarter, our net promoter score MTS increased by 45% year over year to 51, making it the fifth consecutive quarter with N P. S improvements.
Relief of roughly analyze and respond to customers to see that in all aspects from cell delivery and after sales services.
We are encouraged by the N P S increase and will remain focused on further improvement.
She believes that reputation among customers is the ultimate driver of sustainable and high quality business growth.
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Used car industry is an integral component of China's economy to healthy population of used cars.
And the vehicle lifestyle and maximize their residual values yeah.
Also plays a critical role in lowering production weight, reducing these parcel pollution that you do.
You mean rethought test utilization.
As an industry leader.
It's a concept of environmental quick question seriously and acts as a pioneer energy.
Energy Conservation and emission reduction in July 2022, we released our inaugural ESG report and we Paul I liked it a hobby integrated sustainable development suite coast into our busy plenty I think ESI in conjunction and daily operation.
You'll see it she told me to lead China's used car industry to evolve in the most socially responsible and we do watch it.
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Chinas used car market.
The Golden age of growth. It's just reported that China has become the world's largest auto market measured by vehicle units by 2021 building on that Chinas used car market is already a messy with more than 17 million units sold in 2021.
It's also has tremendous growth potential compared with developed market.
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The used car industry has become a key area of focus to stay regulators, who have introduced mindful supporting policy in the past four years, notably in July 2020 to the Ministry of Commerce together with 15 out of State Department published an official notice to BMO.
Auto population and consumption.
Okay included comprehensive measures just like couldn't take first region nutrition and filing regular regulate accounting treatments and you would issue it and remove the restriction on youth copies operation.
In 2021 government policies required at each position of a console for months and more than 300 cities have incremented electronic title transfer and registration in 2020. They used car transaction value added tax what we get is from 2% to zero point I put it.
All of these policies and initiatives demonstrate they get regulatory strong guidance to be like a union by national market for used car transactions.
Recently, the policy based off the books on promoting strong brand not scale and come alive, you aren't used car company in the industry.
Yes.
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We have been deeply rooted in the industry for over 11 years as the used car E Commerce company with nation National wide College, and regional market penetration will be.
Believe that you see as a well branded super large scale highly socially responsible company in the used car industry will fly well when the power went alive.
You mentioned, the 10 year U S well, John Colombian when do we have somebody in the Google.
So you shouldn't can you tell me, who couple of Kobe shown out, especially from Kimberly Greenberger, Shelby, but he and all of them and the timing of what they.
They are so I'll show you, a cheater job well done in downtown L.
And then since you aren't one essentially but I thought you done shortly and could even though she was a homeless you would want in Shanghai about from do you think gosh it should understand this.
Sure and I'm sure that adult patients who met the walk on.
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You took it out and see you mean, it will be all excuse me that you show them that you need you more.
In the new fiscal year 2023, he or she will focus on the following streets by Odyssey.
But just to need somebody expand our brand recognition and find ability among customers to book value and market shares we aim to gain more customers by enabling them to experience our products and services second just go to upgrade the end to end supply chain information system.
I think Houston intelligent, even inventory management system.
Exactly.
Individuals via collateral, but to continuously optimize operational efficiency to control costs and expenses expenses with the optimal target a possibility in the mid to long term.
That's the kind of she is helping you this year.
I'm not going to be well nothing she uses the only alternative to either go to withhold the just do them well.
Ginger.
Bulge and they don't find angelou well doesn't that I couldn't do that she wants.
Once again I would like to thank our customers for their trust every member in our Houston family for their hard work I'm. So grateful for the strong support from our shareholders and investors.
We will stay committed and focused to shape the industry in the new era and deliver sustainable returns to our shareholders on our journey to high quality growth Chairman Shimon the CFO Jones yourself and do you do that how would you deal with.
With that I'd like to turn the call over to our CFO to walk you through the financial results jumped me.
Thanks, Dk Hello, everyone. Thank you all for joining us today I'm going to walk you through some key financial results in the quarter ended March 31, 'twenty Guide you too as well as the full fiscal year 2022.
During the fourth quarter, despite the COVID-19 in off season impacts Dk shared earlier, our total revenues were RMB five $505 7 million pretty much the same level compared to the third quarter. That's the retail sales volume ramp up you know Jose IRC.
Specifically, our retail revenue well as RMB 319 million, representing a 37% quarter over quarter growth and 156% year over year, driven by higher retail transaction.
As for the overall fiscal year 'twenty to 'twenty two it was our first full year of operation under the inventory only model.
Driven by our continued sales growth momentum our total transaction volume was 15755 units, representing a 14, 9% year over year growth and our total full year revenues were RMB, one 6 billion, representing a 150% year over year growth.
Well, we look at the gross margin in the fourth quarter as you can see and of course, the three quarters. Our gross margin was stable at around 4%. However.
However, in the fourth quarter and it fell to 0.2%. The reason was that we experienced is she on IRC locked down for more than one months due to Covid and February . It was was the traditional Chinese new year off season, but he used car transactions were almost a frozen for a months so we'd have to proactively restructure our.
<unk> and accelerate our sales up there relative to the long Easter vehicles through pricing adjustments.
Inventory management actions compressed our gross margin in the fourth quarter.
As a result, the overall gross margin for fiscal year. 'twenty, then two was two 9%.
We did observe after the Chinese new year, a clear uplift traveling in our retail sales and we do we expect our gross margin to gradually return to a reasonable level in the following quarters.
We continue with our stringent expense management in the fourth quarter. The total operating expenses were RMB $119 4 million relatively stable compared with the third quarter.
As I repeated every time the cultural for reducing unnecessary spending is already one of the company's culture, and we wish him well.
We have been proactively seeking opportunities to optimize the organizations increase operational efficiency and most cost effective technology.
As a result, our fiscal year 'twenty two operating expenses were RMB 409 million, representing a 48 decrease year over year.
Consequently, our non-GAAP adjusted loss from continuing operation was RMB $96 1 million in the fourth quarter compared with RMB six to $8 6 million in the third quarter.
The full fiscal year non-GAAP adjusted loss from continuing operation was RMB $96 1 million.
As it was a substantially narrowed by 56% compared with fiscal year 2021.
Olive garden to find out for myself I would like to share some of our recent development in financing in our liabilities.
Restructuring.
Last year, we announced the U S. Dollar 315 billion investment by Neil Catto enjoy capital and by now we have received U S. Dollar 150 million from the investment.
The remaining U S dollar 165 billion in a form of warrants.
That sort of still retain the rights to exercise the warrants with a total amount of up to U S. Dollar why did the 65 million.
On top of that yesterday.
We closed an additional U S dollar 100 million follow on investment from Neil capital.
In addition, we also recently completed the issuance of ordinary shares to five eight dot com in exchange for the full release of the company's U S. Dollar 63 mentally obligations under the convertible note issuance two five dot com.
We believe closing of these transactions allow us to substantially streamline our financial resources and devote more focus to execution.
Our long term growth strategy.
We plan to accelerate a piece the pace of our expansion standpoint, our reconditioning capabilities and afford to digitize our supply chain and we are confident that our investment in these areas will enable us to provide our customers with more vehicles selections and at better one style of a hassle free shopping experience.
The detailed financial statements were published and now were only released online so I will not repeat the numbers here at this time, but.
But I do want to emphasize one thing.
In the fourth quarter are similar to the past quarters. There was a fair value impact of a late into our financing transactions.
The share price was USD 1.0 to 480 as of March 31st plenty, there too and on January 3rd to 22 O. The share price was less dollar one point 57 per ADR. So this resulted in a noncash gain of RMB $476 eight.
Millon from fair value change of the warrant liabilities and a forward the liabilities on our balance sheet.
I would like to emphasize again that this fair value impacts was a noncash gain and not the result of our population.
In regards to the first quarter guidance in fiscal year 'twenty. Three we currently expect our total revenues to be in the range of RMB 600 million to 620 million for the three months ended June <unk> 2022.
Please note that this forecast reflects our current and preliminary views on the market and operational conditions, which are subject to changes.
So this concludes our prepared remarks, thanks, everyone and operator, we are ready to receive the question.
Yeah.
Yeah.
We will now begin the question answer session to ask a question across the other one on your telephone keypad.
If youre using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press star one to.
When asking a question. Please state your question in Chinese first then repeat them in English for the convenience of everyone on the call.
At this time, we will pause momentarily to assemble our roster.
Our first question will come from Carl Broken-field held with American Trust investment services you May now go ahead.
Good evening gentlemen, congratulations on your outstanding financial performance in light of the circumstances with Covid.
I'm, a managing director at American Trust.
And I have a coverage in China.
Two questions. So first is draw news media reports in the United States, We know that China continues to keep Covid zero policy that restricts travel and locked down.
The potential risk areas, what's the economic outlook and consumer sentiment will this affect Unix business going forward.
Alright, Thank you call you'll find the central one okay Jesse.
Halloween he says well meal cannot human Nevada, some cord tissue biopsy younger for all he has done some changes like that those are the two shoe huh sure quibble with you sound really came to you or not.
How should we will pay down like I know you didn't hire shortly to die down a full time used to be shifting from Oh.
And then you have the squishy necessarily syndrome.
How do you pay for the phone call.
The implementation of Kobe and cost measures.
We will still have an impact citywide lockdowns in particular.
Limit People's activity.
We'll certainly comply with all the government Covid prevention policies.
So if you want that content.
Hum.
The year without really you Scott Schenkel from CDN woman.
I'm going to be a loss in the year when the year.
You can come into the shoulder launch.
How long do you count a woman.
I'll tell you something in the morning.
In terms of our financial results, the lockdown and disrupted operation of our young IRC, which in turn affected our financial performance to close the closure of our C. I R. C. During the lockdown hampered our overall sell Hello, Hello, our inventory turnover and compressed.
Our gross margin in the fourth quarter of.
This figure.
And especially with an eye contact here, you said Glen Sheila.
Take them going into each year, so we should see it.
We didn't drill hall finishers Shanghai, the phone you're done by leasehold well midyear when they get their dollars per minute.
Yes.
However, this impact a temporary pause in June our business has fully recovered after China started to eat Colby restriction.
Two Shanghai locked down.
Okay.
And that's the best answer to this question. Thank you.
Great. Thank you very much. The second question is can you break down your vehicle acquisition by source and what are the differences between these channels in terms of cost.
Average prices and turnover.
Okay. Okay.
Okay.
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Hello.
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Since we also some of them Andina Joshua Gordon.
<unk> taken a type of Australia, and I want to essentially ensure that you know some 19, you see sometimes that you'll finish the whole show them and all that.
Our acquisition sources, mainly include individual car owners.
Company Awesome company and dealer dealership of new car dealership panel with us plenty of customers trading in their vehicles.
I'm not sure that the sugar CAGR.
A woman say keeps on initial holding of social <unk> and that's what I'm sorry, what was that about a pull from that at the end of 2 million to my uncle gets resolved one button that normally when a change in the short message out cool, which was a new country manager.
Regarding the call our acquisition costs only consist of the vehicles purchased five and there are no. Other causes in the acquisition process also there's no material difference in the LNG selling price and turnover between this acquisition sources.
Thanks, you too short to show good intro to the table.
So trough number uhm.
We opened yeah, no mortgage on jumbo hand them, a week well nothing until we should credentials are there to get you down towards that I'm quoting you spoke to the table then between opinion patient initially or excuse me in dollars, but as you look out in the finishing shop. She is on a high wage issue the tissue.
However, purchase things directly from India video call, Okay simplifies the acquisition process.
So generating a higher gross margin.
As such we highly value individual car owners as an acquisition source, which contributed to over 30% of our total acquisition.
Compared to 15% the middle of the last year.
We expanded percentage to continue climbing going for what.
That's the answer to the question. Thank you.
Thank you Hal.
Sure.
Yes.
Our next question will come from food diet with T S Securities.
You May now go ahead.
Okay. Thank you.
Uh-huh Washington.
Sure Betsy.
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Cost of doing it with a cultural shift, we'll miss or something.
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My question in English.
In 2022, what's optimizations, so coffee mate. He also said online platform.
Do you feel company's current arrangements from purchase to delivery off the car.
What's technique upgrading and all.
And musicians and has been made this year compared to 221.
Also online car buying platform, what kind of competitive advantages or divest or does the company have thank.
Thank you.
Okay.
Well I'm.
So shortly.
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Since you're on Cedar dwell shouldn't be a partial tissue she was in the.
Continuing on I shouldn't do you lose.
And the same thing in London, Chicago utilization going down.
Particularly with who I'm going to show up in the store oriented team with your router on the market.
Oh cool.
Ooh Ooh theater I shouldn't all CAGR.
Petroleum and anyone who's already.
We implemented several upgrades to the online purchase of all vehicles.
Wow. This operate it's a complete self service on that order and purchase process for customers.
Process does not require any self-mate intervention and allows the customer to make them more independent and the right decision.
We can then complete the transaction smoothly.
You must be horizontal hunton astute fashion, the pillow full particularly coming out of a synergy when I say Hello, Matt you'd had shut down and doing all the cities that you would see the trocar machine you don't see them doing what he does.
I don't know if without building electricity heat hot tea Godolphin limitation.
Cemetery should go build for a while they're trying to transform shrunken cookies when he says yeah.
Unfortunately, I mean, if you can talk to each other you truthful.
Another example is the upgrade to the online display of all vehicles detailed information no happiness can view each policy basically condition and reed and rating as well as the vehicle condition score that we implemented under the national standard.
Display of these indicators enable customers to make a more comprehensive assessment of the vehicles on life to form a purchase decision.
Got it.
Sure.
Each one of them pays for the country.
The majority of it will but you all know one of them we.
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Our since we sure she's that woman that's huge off long border now might think of that.
No truthfully I would've hoped but can you put a quota.
In terms of the logistic and the network our delivery network now are 20 cities next year.
We also plan to gradually expand our network in the future.
Yeah.
I'm.
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C E O.
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And if you find useful it's clay on the Bush as the controller Oh now so how do you cope with Docomo trading to live in golf.
But I'm a vehicle it has higher quality.
We have the highest vendor for the reconditioning. So we can have the lowest return rate into agency. Secondly, after years of accurate we have to build a robust system for vehicle delivery and local ownership registration I want delivery efficiency is very high usually our customers can receive.
The vehicles are.
72 hours after they place the orders.
Thirdly, all of our vehicles a cell phone so we have better control of the vehicles and the transaction.
That's the answer to the question. Thank you.
Oh sure sure.
Yeah.
Our next question will come from Yang.
China's Securities you May now go ahead.
Globally now how's your children to apologize, finishing a well function dogs, I mean, where do you see as Joseph who shows up head count all game on shortage. How long you guys saw a huge surge of England. When I first got sound going meaning gosh getting on keytruda in quantity, but on the whole it shouldn't might also English.
Before we go now to Paul.
No I shouldn't get into a whole new deal with shell.
It was supposed to be quite as home yeah gotcha.
Telling them all off.
Hey, good evening from China Secret tapes.
Even though.
Sure.
Electric vehicles have caught up with gasoline cars can you share more about your expansion plans in this market.
Margins different from gasoline cars and how many.
New vehicles, New energy vehicles do you have in your inventory.
But then also this initial momentum than total hundred minutes, you can we further take or Hong Kong table around school cannot trivia. So you go through the particulars to where this is the only man or woman due date on trilogy and took him I'm sure. There's some labor issues, but with bundled it maybe sheet.
This includes continuing to build.
And he is a critical tenant that we are focusing on and investing.
No Amy and Beckoning Dsos I feel it's very different T. This is why in the past few months, we have establish subway system and see what the testing and maintaining.
Youth you used new vehicles.
Then suddenly it's almost like Huntington's.
So within those sort of items you know how to show you don't just agenda to Eylea in the U C.
And if I don't.
Take the usual question on the ball.
We were down somewhat.
Yeah.
And you can change a malleable shadow should you end up with in our hotel that's the engine Oems.
To go through Congress.
Fortunately, we put up all of it I'm, just saying I'm, assuming and she's got a bold ambitious about what I'm. Assuming then she says that Bollywood I'm sure Tony minutes on behalf of all of that at this time.
Well the market perspective, China's youth EV market. During this time to do that.
The growth of the youth E V marquee is directly tied to the overall ownership.
End of 2021 China's passenger car ownership reach.
300 million wire and you'd be honest it was around 8 million or less than 3% of the total.
That's one of them would shindo kun permits you go to that customer into its own when we put them to leave your ownership.
Now most of you know what have I call them. The team goes in and Trinity controllable costs, you either you do that I Couldnt see who conduct sitting in China, You'll go Hoarder show home Tricia.
One I forgot to tell you, but don't control should cause a way life shelf.
Police actually celebrate jump in if she wasn't until notion of interest in that.
As of now any any Italian for 5% to 6% of our inventory from a billings perspective.
And we often are quite popular among customers.
<unk> is in a L E N V. In our inventory also had the strongest sales performance.
Additionally, we mainly have a may 380 brands. They are welcomed by consumers such as Tesla, Neil cellphone CRV and be auto.
I'm going to teach them the Hungarian consumer Houston is actually coming out for their children rehearsal mentally sounds osha hayami sanctioned.
Compared with the peers in the industry, we are leading the industry in both cell capacity and self performing O Neil.
New energy used car.
I don't know just yet.
Thank you for your question.
Yeah.
Yeah.
Okay.
Thank you we have reached the end of our question and answer session I would like to hand, the conference back over to Joyce for closing remarks.
Thank you for joining our call today, and we look what we look forward to see you next time bye bye.
Thanks Bye bye.
Thank you everyone.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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