Q3 2022 Cango Inc Earnings Call
Good morning, and good evening, everyone welcome to the Kangaroo Inc's third quarter two earnings conference call.
At this time open anticipant are in a listen only mode. It's cool. It's also being broadcast live on the company's IR website.
Joining us today are Mr. Guy Young Lynn Chief Executive Officer, and Mr. Young Zhang Chief Financial Officer of the company.
Following managements prepared remarks, we will conduct a Q&A session.
Before we begin I refer to the Safe Harbor statement in the company's earnings release, which also applies to the conference call today, It's management will make forward looking statements.
With that said I'll now turn the call over to Mr. You are young Lynn C. O Kangas. Please go ahead Sir.
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Hello, everyone and welcome to can't go so quarter 2022 earnings call.
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In the third quarter market conditions in China's automotive industry remain challenging due to COVID-19 resurgence across the country and the complex external operating environment.
However, the changing consumption behavior brought on by the pandemic with consumers shifting to online shopping is reshaping the transaction model off the whole automotive industry beyond that at least verbal policies released in the last two quarters, but if it in both new and used car sales have not only boosted confidence about industry participants, but also in.
Prove the order of the industry laying a solid foundation for sustainable development and prosperity of China's automotive industry.
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In the face of leap.
Faulty market trends and regulatory changes, we remain focused on what I'll call trading transaction business during the third quarter and continue to implement our dual platform strategy covering both the new and used car markets. We further improved also this cause pathology, sending home sell supply chain stickiness through surveys standardization, taking full advantage of all over.
10 years of industry expertise deep insights into the lower tier market and outstanding supply chain support. Meanwhile, we continue to empower downstream medium to small sized theaters with high margin product offering to further strengthen our platform is instrumental role I still customer acquisition and delivery channel, we delivered a solid operational performance in a circle.
Water without total revenues region.
400 on 200 million RMB of which revenues from car trading transactions was about 350 million accounting for over 83% of total revenues.
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Let's begin with the new car trading transactions business for all the cell phones, Neil cause we expanded our vehicle inventory, while also diversified by brand and model.
We have made good headway in our ongoing negotiations with large Oems, including GAC, Mitsubishi I've laid up with Volkswagen and as a W. Aldi more and more Oems are recognizing the value of our deep industry know, how and source of its capabilities around Oh told transactions, especially you know what's your market. Furthermore.
We have sharpened our team skills evaluating combo deals on price as empowering us to foot increase vehicle diversity on stock and sell cars that better align with local demand, which in turn in houses our localized competitive advantages with respect to transaction facilitation services, we continue to create and commercialize survey.
To meet those needs with a focus on standardization, we have launched a series of payload functions and products to improve dealer experience without platform reinforcing their stickiness.
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Oh can go how true platform progressed steadily during the third quarter with 9350 theaters in 31 provinces and 300 on five cities on our platform as of September 30th during a 2022, all our self owned inventory on the platform current state includes 43 vehicle models across.
<unk>, 20th suite auto brands and the study model theory, we sold a total of 12639 costs. During the first nine months of 2022 including 7677, new energy vehicles, resulting in mi penetration rates of H E b exceeding 60%.
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In addition to a steady supply of high quality new cars, we continue to refine our online product offerings for theaters, we unveiled several key standardized products in October including deposit guarantee Chinese name, it's called Jean Paul and also hassle free vehicle replay.
Maybe I've mentioned the service codes to our wheel as well as our customer leads generation service or seem to I can't Cook. These enriched our services have encouraged an increase in the frequency and a variety of all theaters, oh like activities, leading them to form new online transaction behavior and increasingly our stickiness or not.
That fall in the third quarter. The cumulative number of Cosmos is posted on cause such insurance increase I mean, oh not platform more than quadrupled quarter over quarter to nearly 10000. It is also worth mentioning that since the Congo How'd you App was launched at the end of the second quarter of this year. It has attracted over three.
<unk> hundred thousand page views and more than 27000 unique visitors in total by the end of September .
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Tenant screening solutions aren't being wasteful does have many Jews Martin who don't go to a phone with Apache in the future.
We also integrated one quick connection at all after market and automotive financing facilitation services during the quarter theaters can easily access our efficient and high quality off the market in financial services only tango Howja App speaking off after market services, we might theaters multifaceted insurance needs.
With a comprehensive industry I mean insurance product matrix centered on auto insurance alongside customized and non auto insurance products.
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Regarding automotive financing facilitation, the overdue ratios rose slightly quarter over quarter in the third quarter due to pandemic recurrences in various regions as our outlook on all future quite a data performance remains cautious we plan to tightened risk controls and strengthen oppose the magnitude, but we are.
Coffee does that by improving operational efficiency and asset quality in our business, we can't keep our overall overdue ratio within a relatively safe range.
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From supply chain disruptions to date or store closures. The pandemic has brought unprecedented volatility and uncertainty to China's auto market against this backdrop, we are striving to build a new digital supply chain, which they can go out to a platform providing thoughtful solutions for auto dealers.
Address their needs across hospitals, and logistics vehicle registration and other car trading related business.
Technology empowered car transaction platform ecosystem cannot only improve ddos operational models, but also significantly alleviate traditional dealers capped on logistics and inventory constraints. It has all it can also accept low rates the technological development and digitization of the computer automotive market.
Well facilitate tank business transformation through out the automotive industry.
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Now moving along to our latest progress and used car transaction business based on the operational experience of Congo household platform. We also officially launched all Kengo you call Wechat mini program to provide dealers with more convenient used car transaction services as of the end of the third quarter <unk> call.
Mini programs have accumulated over 290000 page views and 15000 unique visitors with more than 3000 registered fetus.
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Self owned used car model is one of <unk> primary advantages and also the focus of our ongoing exploration in the used car market. Thanks to a massive leader chip I mean, thanks, a lot Matthew either network across newer tier cities as well as definitely low industry experience we have.
Bundled sources of high quality used car such as vehicles replace Apollo financing facilitation customers repossessed cars from our asset management Department and wholesale used to cost from our OEM partners that are more all the cell phone call model exhibits strong user stickiness and manageable risks given these positives.
We plan to prioritize them promotes this model going forward.
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Our high quality use cosmos as I'll also kengo youll costs 14, it always theaters combined we saw professional one to one matching services can go Youll call has slightly improved theatres trading experience and the used car transaction efficiency. There's a lot you can go you called mini program students have graduated sign ups.
Online transaction behavior and their engagement on the platform is increasing daily given the growing popularity of the Wechat mini program. Among dealers, we are developing and that pleasure of Kenkel Youll call and expect to launch it was either yeah with the goal of delivering more comprehensive and convenient services.
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Looking at our future at all if the used car market favorable policies released in quick succession earlier this year and energize. The used car sales in early July 17 government departments jointly unveiled smashes will facilitate the trading and stipulation of used cars for example restrictions on our cross regional transfer.
Used car vehicle I mean used vehicles that meets national five emission standards well lifted nationwide beginning August 1st temporary ownership registration by dealers will be allowed as of October 1st well. The number of used car transactions by individuals will be limited to starting in 'twenty 'twenty suites, they smashed it as well.
<unk> been changes in used car transactions shifting competitive fields from price to quality. So that's a huge user interest the protection thought of more used cars play a critical role. He led circulation of the car market restrictions on use cocktails detour car owners from replacing Oh Oh.
Operating they are costly all new car sales yeah for the athletes to promote the orderly and healthy development of the used car industry will also be significant in boosting new car sales.
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A short can't go you called represents an important strategic component all future development plans, we are confident that by harnessing the power of all rich industry expertise are well established to know what's your market now what we can do for it you can go how Joe to capture policy terrific opportunities in the used car market, while providing dealers with pet.
Product and services. Meanwhile, with our dealers is the touch point can go how chicken brain more high quality costs and standardized services to a broad broad user base in lower tier markets.
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For the foreseeable future weeks basketball erotic they have COVID-19, resurgence and a complex global macro economic environment to continue to create uncertainties in China's automotive industry in the face of such uncertainty we will remain prudent with our vision always in mind. Meanwhile, we want to do.
Our long time strengths to develop all the new and used car business is in parallel.
Our one stop platform service capabilities.
Capabilities, creating fatty with all Oems and dealers alike, I'm, making call pushes is simple and enjoyable.
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Sure Matt This is James Yoga woman, the CFO , telling them, we you'd go with Forest Young woman says you do does how gotcha.
Next I will turn the corner, a virtual Chief Financial Officer, Michael Jones for a review of the company's financial performance.
Yeah.
Thanks, Joe.
Welcome to our third quarter 2022 earnings call.
Before I started to review our financials. Please note.
Unless otherwise stated all numbers I RMB terms and all percentage comparisons are on a year over year basis.
Our third quarter performance showcased our resilience and the strength of our car trading transaction business, even in a challenging environment. We recorded total revenue of <unk>.
$416 4 million.
Outperform our previous guidance.
Our trading transaction business delivered revenues of $347 2 million continue to play an essential role in our platform.
Now, let's move on to our cost and expenses during the quarter.
Total operating cost and expenses third quarter 2022 were 608 8 million compared with $839 6 million in the same period of 2021.
Cost of revenue in the third quarter to 222 decreased to 300.
Eight 7 billion from 610 point.
5 million in the same period of 2021.
Percentage of total rep.
Cost of revenue in the third quarter of 2022 was 93, 3% compared with $76, 3% same period to 221. The change was primarily due to an increase in car trading transaction share of total revenues Katja.
Car trading transaction normally high cost revenue ratio, that's pushing up the overall ratio.
Sales and marketing expense in the third quarter of 2022 decreased to $17 nine from $46 8 million in the same period of 2021.
A percentage of total revenue.
Expenses in the third quarter of 2022 was four 3% compared with five 8% same period of 2021.
General and administrative expenses in third quarter of 2022, a decrease to 57 8 million from 64 million in the same period of 2021.
Percentage of total revenue.
General and administrative expenses in the third quarter of 2022 was 13, 9% compared with 8% in the same period of 2021.
Research and development expenses in third quarter to 222 decreased to $10 2 million from $17 4 million in the same period of 2021.
As a percentage of total revenue research and development expenses in third quarter of 2022 was two.
Two 4% compared with two 2% in the same period 2021.
Net loss on a risk assurance liabilities in the third quarter of 2022 was 85 million compared with 55 5 million in the same period of 2021 net of risk assurance liabilities was mainly due to a sequential increase in the default rates DS 221, we recorded lost ground.
Operations of $192 3 million in the third quarter of 2022, compared with 39 million in the same period of 2021 net loss in the third quarter of 2022 was $130 3 billion non-GAAP adjusted net loss in the third quarter to 222 was 110.
Got it.
On a per share basis diluted net loss per quarter of 2022 was zero point 96, and diluted non-GAAP adjusted net loss per ads in the same period. It was 0.81.
Moving onto our balance sheet as of September 32022, we had cash and cash equivalent of 745 billion.
I'm here with $1250 7 million as of June 32022.
As of September 32022, the company had short term investments.
$2 7 billion compared with $2 1 billion.
On June 32022.
Nokia has through the fourth quarter of 2022, we are now predicting our total revenue to be between 450 million.
<unk> hundred.
<unk> hundred billion.
Note that this forecast reflects our current and preliminary view on the market and operational conditions, which are subject to change.
This concludes our prepared remarks, operator, we are now ready to take questions.
Thank you.
You wish to ask a question. Please press star one on your telephone keypad. If you wish to cancel your question. Please press star two.
Do you have a first question from Shelley Wong with Morgan Stanley . Please go ahead.
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Hi, I'm sure because then hi, I'm Charlie Chan from Morgan Stanley I have three questions. The first question is about your outlook for countries 23 car market because we are expecting some pre opening policies are for China in the following months.
In the following months because we I've seen some restrictions have been gradually released so what is your outlook for 2023, China Auto market and my second question is could you elaborate on the progress of your transformation.
When do you expect to complete the transformation part of that process and when do you expect to breakeven and so question is about the used car market. We are seeing the AR issue himself many favorable policies from the government on a usual costs. So what is your expectation of the yes used to call our business well.
How what are your plans for used car market and could you elaborate on some specific initiatives that you are going to take to drive the car business.
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Yeah.
Thank you Shirley I will take your three questions. So about your first question and I'll I'll do it before 'twenty three 'twenty three car market from a supply side, Oh, yeah, and sabra fusing a growing for a variety of new car models, which has given the consumers more choices and that has also stimulated concert call consumption.
Different demographics in various market segments, however, due to chip.
Strengths and also semiconductors long production cycles, and the continual production reduction the production capacity and the overall auto marketplace market will remain under pressure.
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And on the demand side consumption will likely remain weak we used a pen that makes continued impact consumer purchasing behavior next year, well actually it depends on pandemic controls that all Saudi our perception of the pandemic our development.
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Okay about your second question the developmental followed transformation progress well, we have gradually launched our standardized product someone can go how to app, including reliable cause such while we call call Cushing and also logistics services and deposit guarantee with while we called thank Jean Paul asked a lot I think.
Children's and also customer leads generation surface, what should we call seem to Tim Cook as theaters use these products on a trial basis, we have keeping we have being are we finding a these are services to enhance the user experience. In addition, based on our new car transaction business model we have.
Saturday due to the viability of all used car business. So we have also been investing resources to develop a transaction platform for use the costs, which we expect to launch by the end of it yet.
So unfortunately it does suggest woodson good Joe you can talk to you what is the dollar.
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So let's move you saw in car. So Joe you with some thoughts on when you can show departments of policy. So you could cause you're a woman that Sergio you're starting to see gene chip on one show.
Over time, the business logic validation of our entire transaction platform proves the viability of the business supported by our processes. We have completed all infrastructure and back and I T operation support and we are also beginning our in depth cooperation with some major Oems According to law.
Revenues from car trading transactions now account for about 80% actually over 80% of our total revenues. This means that our transformation to a car transaction platform is effectively complete.
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The next milestone will be the scale up of our business model, which we will endeavor to complete next year well consistent state improving is a replicate the ability sustainability and profitability.
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Yes.
About your third question on the used car market well the used car market is quickly expanding first the government is paying more attention to this market as demonstrated by a series of a document published by the Ministry of Commerce to encourage the development of the used car market second day, the growing up.
Of used cars would translate to a larger pool of youth costs going forward either amidst the pandemic because of used car market has maintained steady growth and therefore, we believe the used car market will keep extending for a long time to come.
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Thank you that's all from me.
The next question comes from Cynthia Xu with Goldman Sachs. Please go ahead.
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Yeah.
Thank you. Thank you I have two questions. The first question is related to the automotive financing facilitation well. These based on the data we can see that the company's incremental revenue from condos. He's already very small so does that mean that you are going to start please business completely and why do you do.
To do so and a lot of related question is about the overdue ratio. We are seeing that the overdue ratio continue to grow. So when do you expect that infection point to our P. S.
When do you expect the overdue ratios start to go down and my second question is relating to the dealership network and as you and as you mentioned before that the company now serves nearly 50000 theaters in the lower tier market. So what is the size of the dealer network that a company.
<unk> expects to reach a well what will be the market share.
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What size it up with all that and what do you go and she said why are you switching or wouldn't you.
Yeah.
Thank you I will try to take your two questions. The first question about the car I mean automotive financing facilitation business.
So wondering Jean Jacques.
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Okay. So given the current macroeconomic conditions expanding this business actually it may cause fluctuations in our in our backyard rates, leading to significant cash flow pressure and even threatening the company's survival does that you're in that that they have a business would be a huge challenge till all the transformation. So we are.
Not really giving up the automotive financing facilitation business bye have proactively been reducing its a size actually we have incorporated these oh toe financing facilitation surface into our how to act.
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And the so called Oh overdue ratios rose slightly due to the pandemic thing Pat based on our current business. The vitamin strategy D. Overdue ratios will remain at the practice level for some time to come as the existing those are settled however, the overdue ratios well dropped to zero, that's not that's not going to be an inflection point.
Okay.
Oh of course, you don't go into Joseph Newkirk shots emphasis on the change also.
About your second question that is our dealership network in the lower tier markets.
More champion tiny little too. So it's all of those things will talk I'd say you wanted to in general John Paul Hudson Tau ASO Tau.
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Al.
So far all the platform has a total of about 12000 dealers, including both new car dealers and you used car dealers. So at least stage, we're focusing on migrating dealers to our platform through promotions and developing Adidas habit of using all the app, which well intend.
I believe we believe drive improvements to our app functions and user experience. So that we can provide better services to all dealers.
Yeah.
Shows you what the winter played out well.
Thank you.
Okay.
Yes.
Once again, if you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced.
The next question comes from Brian Lane too with Zacks. Please go ahead.
Good evening gentlemen, thank you so much for holding this call I'd like to see a little bit of stabilization of the business and I think that's good news and.
The first question I guess is sort of big picture.
Ways to increase shareholder value for the company.
You.
Obviously, you had the two special dividends. This year, you still have an incredibly strong balance sheet.
Working out how does the company prioritized the management and board level.
Where your preferences to try and drive shareholder value.
Investments in R&D share buybacks or additional dividends.
Or perhaps even acquisitions in the future do you have a internal preference among those and then secondly I'm.
We're hearing after the third quarter from a lot of the Chinese auto manufacturers.
They are ramping up production, but we're hearing that dealer sell through has been a little bit lower but we're hearing about some inventory build at the dealer level I'm wondering how you think that could impact 2023, if there is excess inventory on dealer lot.
Oh, So you can kind of say well now go on to you know Diego ones, you don't want to she atone coupons out like that but that's the if that makes you sound like US you can see it. They go Glenn anytime I'm kind of telling you go through that deal Holly Twangle Nichols Townswoman go how did you get all of the of course, you would attribute of our projects normally kind of course, if you watch I should be dealt with peanuts you should go ahead Josh.
Shifting and I'm not sure what kind of say well what does he go and teach the telephone lines out what I found out when we kind of toggled with fleets that you could why do you sense that put that in a truly you teach them closer to the one shot not the usual I'd say on your initial home what kind of dog wants and that the that's chasing that down so that they go to a beautiful new Michael because I think that's it's helpful to put that out there she sometimes I wouldnt Kinder I'm only sound.
She does schuh, consequently tons I would say that definitely ooh, who ought to look.
Well I think he bought Tito.
Kudos HIFU that sung Jong I hope, we don't judge the T shirts, and I'm not you know quite well. So we I was wondering if you found me a crucial how old the quench water soak ones, which will get sherwin that you're quite sure she tissue physical Matt How's your couple of Pingo How's your show up like a well count I was just lucky, but without that CCAR filing we that holds it. It was what I. Just said you know we can do it at home that has informed me of what you can see Saturday.
So from your like you shrunk, who don't attach you know hotels the ones you don't Wanna shoot when it comes out that essentially to I'm glad you got T shirt.
They come in to that what she was telling me, it's right up to boot, though we foods and Joshua Changan Auto show that I think they would want to probably pay comes out time and logically social being boutique, but we're going to see not all sure that said jeez I wish I was coming to a call center support that they see what we're telling you.
Okay Gotcha Schwartz I'd seen show Shanxi play so I think it's Thomas.
So I think that as you pointed out.
Sonya.
Uh huh.
Oh sure sure.
Well, a quick ship tons of where that's going to you guys is playing a consistently good.
As usual, but.
Thank you, but I'll try to take your two questions. The first question actually is about yourself all the capital.
Easily that would should be awake, who don't want all three thought the LNG jobs being too until you tell them look well muscle you'll use it but its just have shrunk one that you took.
<unk> since the studio Hutchinson in Colorado.
Well actually we have always been committed to maximizing shareholder value and with this commitment in mind all of our decisions related to the allocation of our capital are made to following careful considerations.
Okay.
So Tucson whooping Mayo took that appeal to holding in changing lithium Waco, you're used to start chinchy doing at.
Pingo <unk> households, so it'll come when you and when you would PV to loyal closer that you're quite familiar with called it. So you shouldn't see any impact when will equate to junk he's done via Puja blah blah blah Geo So youll father.
Just some idea when will the thoughts off of kind of just did you why I put the hotel you would change your whole should we walk.
In fact, we don't have any particular preferences. We are distributed dividends twice this year, along with our ongoing share buyback program and as for MMA and R&D investments. These decisions, it's really dependent on their compatibility with solid business development plans, if there if the right opportunity.
It's come along we definitely will consider them that it is that is to say we will plan our cash deployment from a holistic strategic perspective based on the company's business position business model development and our expenditure programs as well as of course external opportunities.
Okay.
Once they all go in tea juices cool, so, let's just hold a fruitful.
Yeah.
Your second question is about the inventory build up and the market demand.
So usually the union Sean Dodge. After you will are so low that you choose to put it into the thoughts of the cheese of shellfish neutral, it's actually got jobs.
So Mr Hu Joly superteacher simply yards.
So you will see totaling so she chose civil who's the CFO Blue Shield, that's agenda, yeah, Joe when we yes, that's usually what I won't do.
Well due to the pandemic consumers are uncertain about their future income, which has resulted in a decline in demand for our the forecast with actual demand suppressed by the uncertainties. So we will have to wait and see if there's a pent up demand will be unleashed in the future and we are.
I'm monitoring the situation very closely.
She does which I assume he and she says or shellfish and shrimp Nisha says, there's something to la La you towards June one chunk, let's set the stage for children's actually Hi, Jeff.
But it's worth mentioning that the consumer demand for H E. B is clearly on the rise although the.
But I see our engine cost internal combustion engine cars are becoming cheaper Kosovo I mean consumers.
Demanding more coal and E b validating for the I E cost. So they are the consumer demand for these type of a fault for their traditional IC costs are declining.
Okay.
Oh sure sure.
Thank you.
Great.
[noise].
Your next question comes from the room to go with Citi. Please go ahead.
Uh huh.
Well Jimmy Choo Laurie.
Or would you be in the hot yoga want cheap.
David I'm, sorry, just shouldn't Angel GWG jazz, you could try and college teach Hayashi Mohawk so not much on nowadays.
Sure.
Tango herbal Oh, my God, Michelle she ocean.
So Thiago wouldn't you don't Wanna Shaw on for Chi, though freeing ourselves to once you kind of a cool young children Yosef.
De Lyle Goldfish I'm sure you'll see him hard challenging was hungry you don't show up I'll tell you the truth.
Not just yet.
Yeah.
Thank you they'll render from Citi I have two questions. The first question is that earlier, Mr. Li mentioned I mentioned, the new partnerships with several traditional Oems. So why do these Oems choose to work with Tango Ah what Todd accompanies our competitive advantages and I said.
Question is about the Tango Yo.
Oh, you also mentioned that the cell phone use called sovereign advantage off Kangaroo yoga. So does the company plan to build can't go you'll call into a purely purely self owned car platform.
Oh.
Oh sure sure so.
I'm going to Sue a freeze on really where the other one too.
Thank you very much I like your two questions.
Oh geez.
So we it's a chat tool a jarden accustomed to it and so it's all.
Oh, no go quite tangible.
Could you also touch on the trade up.
Oh, Yeah, I met with several Oems and say well all of them all of them concerned are they a recognition of all competitive.
Vantages.
You were fortress switching yet when were twofold. When you shot Joseph Tung Celgene herself. She leaves a phone for their social junior good talking to you telling you candela woman tundra shelf. So this just sounds it's Anthony and I'll go through some of the shots and he got TJ. This is al can you just tell Ya shuang local tier two woman D C like Julie the Chateau Ste.
Well look changing shuttle.
Because over the decades, we have been serving small and medium sized theaters in lower tier markets and thanks to our hard work, we have built up strong and rich auto sales expertise in these markets and the major Oems. They are they have recognized all capability.
I'd always solid deep penetration into the lower tier markets and they do hope to leverage all of that work in these markets to sell enough vehicles.
Yeah.
I mean, what do.
Few more quick jugal poulos, who does what the bulk or tongue food, Joe Zhou Hao Zhou impulsion. It how long does Paypal for when will create total Chi you watch before we chose aren't you can put told a lot it seems awful.
Oh no needs a shot so that's just how it gets up to where you want to yeah. So dollar fujisawa it says on the vehicle.
In addition to selling vehicles, we also provide a wide range of services, including warehousing logistics data for a financing facilitation insurance. We can also customize all services to dealers based on their specific needs and geographical locations. So as such so these capabilities are unique in the lower tier market if I may.
Making us see our deferred to for all our competitors and such are capabilities that being widely recognized to fight those OEM since thetis.
Oh of course yoga wouldn't chi.
Turning to you what's the system just has to change even with the most possible Michelle yoga.
Once you owe him Mr. Shuang cohorts, even more support to me your logic, she couldn't do too little too late to ensure women Tunku Youll also touched Joe you can Oh, you wouldn't you just saw something with your T cells hung at a low 20 shortly.
Most of the question that you don't it'll more simple wish of Trimble.
So about your second question are purely self owned model would be asset heavy and requires.
Large amounts of cash flow and also investments and this is definitely not what we want right now we want to fatty day, our business logic through a self owned vehicle I mean, the self owned a model to attract more ddos. So now we can build a used car transaction platform, while we call <unk>.
Tango your car and then we will address theaters challenges and enhance use cost situation efficiency without platform. So the cell phone model will be one of our models rather than the only one.
Oh <expletive>.
Thank you.
[noise], we have no further questions at this time I'll now hand, it back to management for closing remarks.
Hum.
How is your thought there.
Yeah.
Thank you very much that closes today's earnings call.
Okay.
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