Q2 2023 Uxin Ltd Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to Houston's conference call for the quarter ended September 30, 2022. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a Q&A session.
the next session. Thank you.
During this call today, I will review our major business highlights of the past quarter and then share our recent business progress and our thoughts on long-term prospects.
Having our canyion at the R? G do Jo AR R Ian about or build ING social. Got Chang by Jo. Had some people down B' people down by milum. By time are R do world how soci second in ia show each ating the AU to AC gr she Y. that is e from ia.
Sars AW two hour joia on home. The are no Cho ition show the fore unda thirur on the H about a new using an and to the year to fre number. If he in the us in C as Ant the Shing was, should you bas end on the Lin coperly.
Our retail transaction volume in the second quarter of fiscal year 2023, which ended on September 30, 2022, reached 3109, representing an increase of almost 30% quarter-over-quarter and 203% year-over-year.
2022 has been a rather difficult year for China's used car market. Specifically, the COVID surgeons constantly disrupted business activities and decelerated economic activities and consumer spending. As a result, in the quarter between July and September , the COVID-19 pandemic has been
China's used-car transactions fell 5% year-over-year, which was rarely seen in the past years. Despite facing those macro- and industry-wide challenges, we continued to deliver significant business growth. This demonstrates the resilience and vitality of our IRC-based services.
omnichannel used car business model we have built.
But sure open D meit should sho woman that him I do coomine. You do your that risho.
chinion B 1, that ofative damage on prejgetattal Union. Doing what, without inmichigant, or that of a TR should do at a moment? A mon ton way clovation, selfvage or G mar, treasure though what he should be us impact.
Should down you Ed by michyear. youing see that have nuncare solus. Would be that hun to go the LO you can should. I don't allow copor trian and Cho than eral.
On top of our rapid growth in transaction volume, our brand reputation and customer satisfaction levels also continued to grow. Since we launched our Hefei Superstore at the end of last year, we have achieved a resounding success in Hefei's regional market in less than a year.
Our market share in Hefei is close to 10% and is expected to increase further, while our brand has occupied the most mindshare from used car buyers in Hefei as well as its surrounding cities. Our net promoter score, or NPS, is about 10% and is expected to increase further, while
with 61 in the past quarter maintaining at the top of the industry.
More than 25% of transactions in the quarter came from referrals by existing customers.
has previously been called the Seventeen Sea indigenous occurrence or the Thank you.
Some growing COP. qu you truly, the jend, getting back LO.
So you sure hand some G should the tain, So the couldn't do that in the se do get execution. So should sure question the eatinging out also Bo sure, cheap quay, for that refu e G mean, and you, you to be quid should keep.
At the same time, our ongoing efforts in improving operation efficiency continued to yield results.
On the vehicle acquisition front, our car sourcing channels worked fairly well. Particularly in Xi'an and Hefei where we established our IRCs and superstores, we have unrivaled capabilities to acquire high quality used car supplies. Close to 60% of our vehicle acquisitions have been used by the industry to acquire high quality vehicles.
came from individual customers.
In September , we further accelerated our operation process between used correct decisions and listing them for sales. These refinements in turn continued to accelerate our sales turnovers. Although we experienced severe COVID-induced disruptions throughout October and November , we were able to maintain a stable and stable environment.
Our operations have returned to the level of September , and we expect our operating metrics to continue improving in 2023.
In years. That a fin number. So you will financial, but do not some be we RE. Look at the hard man to see you talk. You are to com show one better. sh went to see I was't in terms of hing India. Some you, the you play other chmling hour from. So we end you show one people.
On something that forthat well to your tracing you a shelvag. He Trans to the TRI ungo measure go.
But you look you any of food you to sho lower for ones a little little Co with that done here. two consumpt polic M about two Q. So if you Co with them M I don't qu you don't sure art comomment here.
Of for ty to sho ER a rule. Co veacles are done here. two I oic about, So you go with them. M? Ar don't gother. You don't art Le tgics.
Today I am excited to share another key milestone we have achieved. As we have announced last week in December 2022, we completed the relocation and upgrade of our CN IRC and Superstore to better fulfill the market demand for used cars in the city of CN and its surrounding areas.
The upgraded IRC and Superstore reopened for business at the new location as the largest, fully self-owned used car marketplace in northwest China. The upgrade expanded the IRC's total floor area to 150,000 square meters.
and is comprised of a used car reconditioning factory as well as a warehouse style superstore.
Powered by industry-leading equipment and advanced reconditioning techniques, the reconditioning factory has an annual capacity of 40,000 units to ensure that Yuxin has a super large scale supply of high quality used cars. The warehouse style superstore expanded its showroom capacity.
of the vehicle administration office on site. As such, customers can have access to auto financing, insurance, extended warranty, accessories upgrade, as well as title transfer and registration services. On the same day, they purchase their vehicles for a comprehensive and efficient one-stop used car buying experience.
Shell barage H Jun, also in the sion ch Char, usor Char, super hard Stud leaning to more of a higher transions the coming get.
The new Xian IRC is a benchmark representation of using business philosophy of driving the transformation of China's used car industry through advanced manufacturing, new retail experience, and digital empowerment.
I hope you enjoyed this video, and I hope you will enjoy the video. Please like and subscribe. Thank you for watching. Please subscribe to my channel. Please like and subscribe. Thank you for watching. Please subscribe to my channel. Please subscribe to my channel.
As we empower our reconditioning process with advanced equipment, technology, and supply chain capabilities, we can ensure a solid supply of high quality used cars and create more valuable opportunities for used cars as products.
With the mass production we conducted in our own IRC factory, we have refined control over the manufacturing process and can significantly reduce the reconditioning costs driven by economy of scale.
Some woman about two unger you one ING being quite surely answer. Don't go food, told you my jmsure. Well, when the ans are, I child Joe, done the Arab the big impact. shelvthey your G mararrow rsure. Don't be if you call you the sham gold in roum.
I amigelred Sina, and I hope this will continue to be my forecast in the meantime.
Go to that she are should don't look at the the high oan.
Our superior store environment, massive selection of used cars, and comprehensive services made our superstore a top brand and a must-see for consumers shopping for used cars. For high quality used car offerings and one-stop used car buying experience, our superior store
are our key competitive advantages over the traditional used car market.
over the traditional used car market.
Come on, the sailor should perpower two other. The tundom come yet or mowa seen is began continuing young ocean Su the V one singo or going through young fe art Ra sh in the sometown tential build.
And I'd like to thank the
When we entered this traditional industry with digital and intelligent technologies, we spent over 11 years to build digitized processes and management systems.
From inspection, reconditioning to exhibition and sales, we leveraged our system and data to standardize the business processes, which had long been a non-standard category. Such digitized systems and standardized processes significantly improved our efficiency in operating our used car business.
Our technology advantages constitute our unique capability to manage used car businesses at a super large scale in China, setting us apart from the highly fragmented small used car dealers.
Ig world hunoney the way like using bad dollars. shanga moist tothousand.
one of young world shall hide on handra through that commmeing the new way.
''If YouTube views100,000 videos, of)" '' tape up and take videos of Google''
Mobile is becoming a food transform.
We have complete confidence in the business model we developed as well as in the future prospects of the used car industry. We are embracing a massive revolutionary opportunity in China's used car market. We experienced stringent COVID control measures in October and November .
but look forward to a rebound in the Chinese economy in 2023, as China has begun easing COVID restrictions. As regulators continue to implement more industry boosting policies across the nation, we will carry out further efforts to address the pandemic.
We're expanding our business footprint through our regional IRC network. Our strong brand equity as well as leading product and service capabilities will enable us to continue driving the transformation of China's used car industry into the next development stage.
footprint through our original IRC network, our strong brand equity as well as leading product and service capabilities will enable us to continue driving the transformation of China's used car industry into the next development stage.
With in new ton from dama: jy did our edge on the. Therefore, John whoied ident ion K John key.
And with that, I'd like to turn the call over to our CFO , John , to walk you through the financial results. Please, John . Okay.
Thank you. Thank you. I will now turn it over to the host. If you have any questions, please feel free to contact us. We will be happy to answer any questions you may have. We will now turn it over to the host.
Thank you, DK, and hello everyone. Since we have both domestic and foreign investors attending our call, our remarks will be delivered in both Chinese and English for everyone's convenience. Now I will provide a closer look at our financial results from the second quarter of fiscal year 2023, which is the three months ended.
September 32.022 thousand do go to vers for the highoney joh you your D structure, but you do a us show you on the two truth. Can I be TA J down? That's 80 B in your time. When we don't J? Y can be not on back joil.
Here is a motion acadge of co 20 ago. The Y a woman King, gender show, the soject home standanity to the stress alone set up and T to the showar way.
So actually you see that in this presentation, a largestly purposes information, Don't be turned on about the tissue.
one when the course e go to town Don went ch target IC. So the dream japly King, actually you. I'm just showar again.
Going back to 3.!
So that you ki heard job P that you sho try show further the shoort on on. ia show the sound on a Y that that the children running short without us show shothen. You Don T insure se, down course you. You don't show So how official or may a e the selldown the ch that were TI you go putcation.
While China's used car industry faced major challenges in the quarter, we still maintain the robust global momentum in our retail business.
Our retail transaction volume grew by an impressive 203% year-over-year and 29% quarter-over-quarter to reach 3109 this quarter.
At the same time as we further optimized our inventory structure, our average selling price, or ASP, decreased from 145,000 RMB in the previous quarter to 120,000 RMB this quarter.
Retail vehicle sales revenue totaled 330 million RMB, up 7% sequentially and 79% year-over-year. We have completed major unitary restructuring and expect that our retail ASP will stabilize.
between 110,000 RMB and 120,000 RMB.
In addition, with continuous improvements in our used car inspection and reconditioning capabilities, as well as capacity for showrooms, we were able to sell a higher portion of our acquired vehicles.
through retail channels. Vehicles we sold through retail had exceeded wholesale for the first time in the past six quarters. And we expect higher retail sale contribution in the coming quarters.
When you do the T-shirt, she said in time, buttery-AB-3 is not good.
So the both for gotting insu about the children. Not soge it out with that is pnotfully. We also should have eng Jia concersome with you that. But any way we set Le up and to the PAT e one.
But you do the pial to' show you arguence. Some val sh, you me certain produition.
Wholesale transaction volume was 3,000 this quarter, essentially flat compared to the previous quarter. During the quarter, we reconditioned an increasing number of acquired vehicles to meet our retail standards. As more vehicles were sold through retail, the ASP of wholesale vehicles also declined to meet the requirements of the retail industry.
from 86,000 RMB in the previous quarter to 81,000 RMB this quarter. Wholesale vehicle sales revenue for the second quarter was 238 million RMB, down 10% compared to the previous quarter.
But people the don't show. Should there be an e, Q e there may be, punction will keep tripping, to't be shunction back in the tise.
When due to the link, social termi data have introduced stablisactivity to transantpi quit exinsttcution.
Our total revenues, including both retail and wholesale, remained relatively stable compared to the previous quarter at 619 million RMB and up 79% year-over-year. Retail vehicle sales revenue contributed to 60% of our total revenues this quarter.
and we expect continuous growth for this percentage in the quarters ahead.
We hope you found this video useful. And don't forget to subscribe and turn on notifications. If you like it, don't forget to hit the bell icon. Also, don't forget to click the notification bell button. Thank you for watching. you can Kepler N H A B
The gross margin for the quarter was 1.3% up slightly from 1.1% in the previous quarter. During the market slowdown, we recorded a price impairment on some of our human trees. Meanwhile, we also optimized our human tree structure and accelerated the turnover of high priced vehicles.
through various pricing strategies between July and September .
These proactive actions hindered our margin expansion and capped our gross margin at a low percentage level.
Not you. Me looking was reustrial you. The good issue, the each ner and Co. it is show some had to hold a good issu somes zero, TRI and the copancy, I think one as to TR. junity high stat.
Special message of the conuation: the cethws quality Chang St functions to cont CT, because our genal should is a Shar presashsure of withoutlogy, see the cardiership.
We hope to see you in the next video.
Following the stringent COVID control in various Chinese regions during October and November , China relaxed many of the control measures in December and infection rates are approaching their peak.
These sweeping changes have had substantial impacts on the domestic used car market. However, we are pleased to see that our sales performance has rebounded rapidly ahead of the market, with various operating metrics in December starting to return to previous highs we have seen.
Moreover, we expect our growth margin to continue improving after the initial COVID infection peak passes to return to a reasonable level in the calendar year 2023.
But you do that being afraid of the story you shanji to sound be keep it shooting
J once a by a counil pattern puthim to where mercial 't take frla in the due in the.
jum chaamp. So much of the Indian quadrate dollge from the twentany to room the year, with a earready that hold from when centan STR Mach.
Total operating expenses for the quarter were basically flat compared to the previous quarter. While we are currently in a stage of rapid business growth, we remain committed to implementing cost reduction and efficiency improvement initiatives into our daily operations for business expansion.
At a optimal ROI G have depated EA can con ERS eventional sho conceal pattern. You got two real ity and nowaccomes year and uttoiation on ourual ual year with clasful pats.
And dear hobens, which you pursue, that children you hun, humber the yoa you show to your hold this, your damage that whole in are struarian, cautious. Damage the and leave in that Director.
As DK mentioned earlier, the completion of our CN IRC upgrade was a major milestone for us. We expect that the accelerated sales growth in CN and its surrounding areas combined with our continued cost optimization will enable our upgraded CN superstores to be more efficient.
Would you not seeing tangia women? And we on the eight P 30, what you from? Put you to the truu first.
butthe ING Y whereas I show up and you to loan to go in charge. Go e the fac in the himself happenedand you to some be shines you to you make are the pira. So in she hold 80 when you warrants spoken the Co in charge of the pink ong whe each can e by which one be the questioning in the.
Thank you for your attention.
Our non-GAV adjusted loss from continuing operations increased by approximately 7.5 million RMB from the last quarter to 92.4 million RMB this quarter. The detailed financial statements were published in our earnings released online, so I will not repeat the numbers here.
However, same as before, I will explain the fair value impact related to our financing transaction.
The changes in our share price between the end of this quarter and the end of last quarter resulted in a loss of 11.5 million RMB due to the fair value change of warrants related to the financing agreement we signed in 2021. This is a non-cash loss based on US GAAP financial treatment.
and does not reflect our business operations.
For you, sorry, but you do a year teacher. What should I see you here? You have a dance of my top foot at a control for the first time.
We believeG
I would like to thank you for your time. Thank you for your attention. Thank you for your time. Thank you for your attention.
Moving on to our guidance for the next quarter, during October and November , COVID outbreaks in both Xian and Hefei, where our IRCs are located, resulted in intense control measures and citywide lockdowns.
which largely impacted our sales growth momentum.
After China started lifting COVID restrictions in December , infections in Xi'an, Hubei and many other cities are reaching estimated peak levels.
Although market consumption has been slow to recover, our December retail transaction volume has rebounded to its September level.
and items related to this project.
insho. She beauty CAD down down Kim PA by high.
Don't be some time to do shoot
Thank you for watching.
pease showers. I don't Eat you way up kinhat PE show down to the kinja way he money.
So on the shel of having soci, social rpees or social rO four showto it is that Su we be thousand the Ian for may you, you that Don T deal when, like each hundred, you Al to hope and so you changing the product. Also, it is that sudanian are the as anian csure, but Trans you without culture arounda.
transaction volume is expected to be around 2,800 units, representing a 65% year-over-year growth, while the ASP for retail vehicles is expected to be around 110,000 RMB. We also expect our wholesale transaction volume to be around 2,000 units.
with ASP expected to be around 70,000 RMB.
We estimate that our total revenues, including retail vehicle sales revenue, wholesale vehicle sales revenue, and value-added service revenue, to be in the range of 450 million RMB to 460 million RMB.
Once the peak of this COVID infection cycle passes and the economy begins to recover, we believe that our business will return to its high quality growth trajectory in the coming new year.
Please recognize that the OURS set-up before Justnen is ready.
And that concludes our prepared remarks today. Operator, we're now ready for questions.
Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch tone phone.
If you are using a speakerphone, we ask that you please pick up your handset before pressing the keys.
To withdraw your question, please press star then 2.
And for the benefit of everyone on today's call, please ask your question first in Chinese and then repeat it in English. We will now pause momentarily to assemble our roster.
call, please ask your question first in Chinese and then repeat it in English. We will now pause momentarily to assemble our roster.
And today's first question comes from Tom Kerr at Zacks Investment Research. Please go ahead.
Hello, can you provide more details on the COVID disruptions and how it affected consumer purchasing? In other words, did it improve the online purchasing part of the business? Thank you.
All right, thanks Tom. Let me translate that question first.
Thank you.
Okay Thank you town just a L you what out what John childhad to the each and our shel each what you're going to getin because.
oper what Jo child to the each into our social agia of what you RE going to them, and because human many areire to be out done.
Okay, please translate.
Okay, please translate.
COVID definitely had a significant impact on used car consumption.
This has been ?
So some moments mar out, we sure, for when man should in channel Ba soalage and a mail had gnment. But if I'm higharly your H 10 of them from easier than under. I am golhome for local coron sho they G.
COVID's near-term impact on the economy has affected consumers' demand and willingness for car purchases.
During stringent containment measures, delivery logistics and offline operations were also constantly disrupted, so consumers had no way to complete their purchases. Now that we are at the peak of the first COVID infection cycle after the COVID restrictions were lifted,
So many customers are staying at home dealing with their infections.
He would live in India, at the end of August and release some copy of Anzhi Heopening smellsnine Solm the We do not have 2m Distance 3m
Moving short around at moul changing. We should Sing that presenting through the B, because Co bal canantic audia.
Thank you.
So from our perspective, we are obviously proud of our ability to deliver impressive business growth between July and September where our retail transaction volume more than tripled in such a challenging environment. In October and November , we experienced COVID controls and CD lockdowns in Xi'an and Hefei.
have exceeded our previous highs.
We are monsters from the area and we don't want to wait to yourselves.
Since China relaxed the COVID control measures, we have already seen a strong market recovery.
That's why we are excited about opportunities in 2023. Once the peak passes, we believe the entire used car market will see a strong rebound.
And that's the answer to Tom's question. Operator, let's move on to the next.
Absolutely. Our next question today comes from Ji Ha Long with China Securities. Please go ahead.
Our next question today comes from Jihao Wang with China Securities. Please go ahead.
The launched for the last ten years. Graduation by the French for
Your owner or canor, you shooted A. you only kid out and give my on the food. They alsoshoshould home together. Bill by had on. Allow the same time time.
Now I will speak in English. What is the impact of the upgrade of our CN superstore on the company used car transactions.
easing of policy restrictions. Thank you.
Thank you.
Now going. You see my come know about hy, the and M high. Now it be the financial changewer. My transition agers to be a woman, en more you are going to, and because C am for the shut show.
All right, thank you Jiahao. Let me address your question about expanding our Xian superstore's showroom capacity from 600 units to 3,000 units. A few aspects. First of all, our previous 600 used car showroom capacity was no longer enough to meet the demand for our customers in Xian.
Thank you.
So we decided to expand the scale of our superstore which benefits us in multiple areas.
We will put off Ho only years when we can go that out LL come my to.
So the proate JBs produ ality, he unction. But we molcome back and G? Ho functionally a G town woman that is suing the Ho stam EBIT partly, will number woman year for the woman realizlife, should you shall P up that our com.
The expansion made our superstore the largest used car marketplace in China's Northwest region, which further enhances our value proposition to our customers, with a wider vehicle selection, larger store scale and better shopping experience.
These improvements also strengthened our market share and market position in the region, which in turn will continue to fill our business growth. As such, we created additional headroom for our future sustainable sales growth.
North flrea shouldn't put cour Al might kind a more our companying in the show. B Doll go one hiy in town for counter se for the season Al some one of the are F go home go while.
Additionally, the upgrade didn't just expand our CN supersport scale. We also developed an innovative used car model that combines our advanced reconditioning factory and warehouse style supersport. This combination enabled us to have a better control over the quality of the car.
of our used car offerings and further refine our car.
Table should off them. Hydrogen need glunable to go. We can send. Come through all amand you tobian into the futual.
you canable in Q1, practice QC from 0 to 60 which can be carried out with positive data for example to go through.
Currently our CN superstore has fulfilled the market demand in CN as well as adjacent cities. So we believe that our current showroom capacity of 3000 used cars is sufficient. We have an omni-channel sales network powered by our IRCs and we have the flexibility.
to adjust our inventory supplies to balance the demand in different regions.
Well I only have a good U should am going put the generic grback tissue. High similarities in India. Who quote in the quadjunk part, ific binger.
Going forward, we will also continue to develop new IRCs for business growth and inventory expansion based on market conditions and our strategic plans.
Thank you.
House your were helping the other MILSA restaurants here it fades outleremies welcome here is actually wonderful Source you go to fear zyou helped some people p markets the
Can management comment on the current used car market dynamics?
including market size, competitive landscapes, growth potentials and policy directions.
Thank you.
However never work home, do go home. The youshould we more shall, the more ation terms would be about. The B down should have no soil. That is, take aboutat on my book with D AR at home. You understand about I like you should be il. You look at the.
Right now at some point we'll need to go through secondary market circulation. As a result based on China's current scale of car ownership, we believe that our used car market in the next few years will expand from 20 million transactions per year right now to the same level as in the US at about 45 million transactions per year.
But grow didn't exam in and sh an to we off. That jis should tell you bor TH example. Come one it town you going ven to quick, then can have our great Thank you. Be more the Sou for of MO where they.
from the current market landscape is still relatively fragmented, while small dealers dominate the transaction market.
We believe that some of them will gradually translate towards branded and standardized operations, but some of them small car dealers will
run out of business. We have developed a innovative business model in the market as we provide customers with a new and improved shopping experience. Through our digital transformation, stronger production capabilities and higher vehicle quality, we believe that in the current competitive landscape, we have more significant advantages in all aspects.
nextch down Y P her. They may Trans ition that the inmissi il on the J that mission of the shle like her, nor your that pin on you life of their whole division to benish never.
our Hefei Superstore has already proved that we have garnered about 10% of the market share in Hefei within a year of operation. Moreover, we still have a lot of headroom for further improvement and we expect to gain about 20% market share in Hefei in the future. Importantly, our success in a single market will enable us to replicate the growth of Hefei
Which important. See the Bab notary in the Y number. We much enger also, ual made the BR that put the tell trouble appar. So per ER whe can we Eat by a two coerciition of the number young WA no more Sugar for of fin ment.
I will also briefly summarize some of the key policies.
First, the government is clearly encouraging compliant dealership operations, while strengthening oversight over unlawful practices.
So for example new regulations require that each individual can only trade less than two used cars in a year and this policy restriction will Eliminate the illegitimate operations that were largely unregulated in the industry before Thus standardizing the market and creating a healthier environment for compliance
We hope to see you soon.
Thank you very much.
Moreover, the reform of the used car tax system also
significantly reduced the complexity of vehicle title transfers and also reduced the cost of our business operations. At the same time, the implementation of electronic vehicle profiles and online registrations also enabled us to further expand our access to used cars and vehicles.
And improved transaction efficiencies. So be like: would that be with that value? You Don T go to led what some performan: a short Trans TR. So you try up media or your.
someimp like. Would that be house hun? I Don way who them was some pervun, a short district, So showing up a media, your.
So overall, China has been implementing a larger number of industry boosting policies.
The regulatory support has definitely improved and will continue to improve the overall industry environment.
Thank you.
All right, that's all we're on for.
All right, thank you. That's our answer to which kind of experience. Thank you.
All right, thank you. That's our answer to which kind of experience we're going to talk about.
Thank you. And our next question today comes from Faye Dye with PF Securities. Please go ahead.
Thank you.
Hey, call you later.
How no. Should like conj fin should say: or when cananda will go through the or do sell to with some job. Should H you say going to the H sell to have down back and to can go toqu some con see each other and you should some Jo mat ity and M.
translate my question in English. We saw your transaction volume grew by 60% in the second quarter, while the industry total said transaction dropped by 5%. Can you elaborate on what's behind your growth in a challenging market? Thank you.
Al other de? itely not whatever that in the take gover. So John gunes, show that the are ual sure you not have to Honey Y that he out you and I should identity that how year know uition child Jo we down told me the shapa. So he hold that. Jo, that I M doing stand alone.
and the market is not as good as the market is not as good as the market is not as good
Many other industries experienced headwinds during July and September . As the industry recorded a rally seeing year-over-year decline in transaction volume, it was particularly difficult for us to achieve a year-over-year growth of over 200% in our retail transaction volume under such market conditions.
In addition to transaction growth, our customer satisfaction level also continued to improve.
This was made possible by the execution efforts of the entire Houston team. Our achievements also demonstrated the resilience and vitality of the business model we built.
Compared to traditional used car dealerships, our model has a few complete advantages.
traditional used car dealerships, our model has a few complete advantages.
In the next lecture, we talk about
We are very happy to have the opportunity to talk with you today. We are very happy to have you here. We are very happy to have you here. We are very happy to have you here.
The first is that we leverage our advanced reconditioning factory to develop our used car product and product capabilities as far as the traditional car dealers.
We utilize our assembly line management advanced reconditioning equipment and processes to recondition our vehicles. Our advanced reconditioning factory ensures that we have a stable supply of high-quality used cars on a large scale and high-quality used cars is an important reason that customers choose us.
In a child. Challenging market environmentyeah again, sure your here icion you to got play on trong in the art, sure that we sure the comat that you go to Y.
We hope to see you again soon.
For those who want to find out answers to specific very specific questions, I'll give the floor 3 and then I call the
If you have any questions, please feel free to contact me.
So you want to 19, you got hinder. You should PO ial growthate woman those town shelage ropeicial and kind and the Coma arro for the comat, the moudity.
The second is that we have developed a very innovative new retail experience for used car purchases. Our fully self-owned superstore is far superior compared to the traditional used car market in terms of vehicle selection, purchase process.
service experience and after-sales services. In our superstore, buying a used car is no longer like going to a farmer's market, but more like going to a modern IKEA or Costco or Sam's Club supermarket. Our customers can enjoy a one-stop experience.
starting from choosing a car, transferring the titles, and accessing the after-sale services in the store. We have become a must-see landmark for local used car consumers in every regional market we enter, whether it's Xi'an or Huawei.
car, transferring the titles and accessing the after-sale services in the store. We have become a must-see landmark for local used car consumers in every regional market we enter whether it's Xian or Huofi.
We's the nationalal euce, an Australia. That year would Le TA your shots of other quality.
The general Okay Come quiet Can you You See now Woman What they have the other Who do you call
Turn come the out idea in the Co, the intronational people who work Al, that he can don't have a out of JAC not how to to the Y bar,n't he go? She pressure from fut concontinue looking what towards with without cour goach for youthat one shoes of CRE drun you, he the friend he hoped wellly.
J your see whe that and I ched up be what the AR to Union vali vehicle question.
And thirdly, we digitized the management of the entire process.
enabling us to better understand our customers and the market so we can dynamically adjust our operations based on market changes. With Yuxin's 11 years of development in the industry we have developed the best database and digital technologies in China's used for industry.
Digitization allows us to better understand the needs of our customers so we can better select our used car offerings. Our intelligent pricing system also enables us to dynamically adjust prices based on market changes. As such, we can better optimize our inventory structure.
and improve precision of our user acquisition efforts through different channels. We also leverage our digital systems to execute better analysis and management of our business, thus creating our unique capability to manage used car operations at a super large scale.
Take Honey Jun, without the Honey attx. T oin per councils Act that we are. But what me you are more number, more showers, or Sing Clay, I don't know what. Honey come, quite a sction which ated on to you. Show your fant fac.
Because of COVID-19 schools, it is fully accelerating genetically. Secretary interacted with US government Ryan and he called Jia Moreira aside for another term of clarity. Reykjavik himself, the U.S. Secretary-General of Basic). What kind of breaking Tinyacking imaging tell us about China's economic commuter
And that's how we managed to deliver growth under a challenging market environment. We hope to drive the upgrade and development of China's used car industry to a more much forward stage through what we're doing. And I'm fully confident in our business model.
As COVID passes and the industry as a whole starts to recover, we will sustain our high-quality growth in 2023.
Thank you.
tworo mean when you o ha.
And that's all we're here to ask to give these questions.
Thank you. Ladies and gentlemen, this concludes our question and answer session. I'd like to turn the conference back over to Jack Long for closing remarks.
Thank you everyone again for joining our call today and for your continued support in Yu Xun. We look forward to speaking to you again soon in the future. We wish you all a nice day and a happy new year ahead.
Thank you. Ladies and gentlemen, this concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderfulford.