Q1 2023 Cango Inc Earnings Call
Good morning, and good evening everyone.
Hum.
Inc, first quarter, 'twenty, three and conference call.
At this time all participants are in a listen only mode.
Oh facing bolthouse live on the company's IR website.
Joining us today.
Chief Executive Officer, and Mr. Jong in Yang Chief Financial Officer with the company.
Following management's prepared remarks, we will conduct the Q&A session.
Before we begin our phase of the Safe Harbor statement in the company's earnings release.
Oh, that's right.
Well today as management will make forward looking statements.
With that I'm now, turning Nicole I think Keith or John .
<unk>. Please go ahead.
It turns out.
I bought their Humphrey hi, everyone welcome to Kangaroos first quarter 'twenty to 'twenty three earnings call.
Already our niche at Justice and so Egypt and both of them.
Kenyan pure untouched or are they all of a sudden yes, it's yuval Cohen you choose to die the genius Ching Kwan from one thing just to point out with whom she took her and yet our TV shows.
So it's easy to change your usual Tiffany true, we're saying to you that Tricia T shirts out that's all.
I mean, both of them used to the cold and flu.
Sure sure Peter Whoever wants you to Gainesville, So let me hopefully suit Tricia.
I'll turn things.
So it won't be schardt jumped back in just the centers.
So okay. So we shouldn't you shouldn't banks, which are the yachting and Pandora are they aren't canyons and good for me all the choices.
Please.
She truly affordable depression due to a variety of Asia, notably COVID-19, the automotive industry remains go throughout 'twenty to 'twenty two.
Macro economy began to show indications of steady recovery in 'twenty to 'twenty three the first year of a post pandemic era.
Oh purposes, a basis for a revival in China's auto sector.
Bodies encouraging trend the market with main weak in the first quarter due to constrained consumer spending caused by factors such as the Spring Festival holiday the last off national subsidies and a price war that began in March according to China passenger a coffee.
Asian retail sales volume of passenger vehicles declined 13, 4% in the first quarter, we predict the overall passenger vehicle market to remain volatile in 2023, oh into persistent pressure from weaker market demand.
Yeah.
Importantly, the candle technical.
Who personally reach out to you guys.
In terms of things like that.
So these are three pinkeye for time to meet the changing to a more turnkey shut their technical culture, a P. P turnkey, Utah a P. P. J I mean, it sounds good so you've built.
Hopefully you won't go tender you seem to have also true with fishing.
Joe you want at some time.
Tango reacted promptly to changing macroeconomic I mean does industrial conditions by using all of our associates and constant they expanding our capacity to capture long term growth opportunities. All can go how China Kenkel yoga apps are now fully operational she'll coast showcasing our capacity to successfully developed a full.
Surveys automotive transactional ecosystem centered on both new and used caused by refining our surface.
[laughter] capabilities and enhancing our operating Skus.
I mean, certainly if you're too cautiously shouldn't also be Lucas.
So you got to be sure Jonathan Evans, essentially start with lumpy, Tim Dunbar for industry.
So Joey.
Joe you Fool, Yeah. So let me show you that Sam.
Sure.
It's just a joke.
Do you wait to use it.
So we shouldn't see levered amusement she Kim Opex as to why you start to see that you're seeing particularly enjoyed getting to the Campbell soup ginger.
Got it.
Shingles is just roughly.
Yes.
That's right that you all your R&D I mean, what does that mean that we should do it here.
Jim do you put your own syndrome in Appalachia, and Joshua and.
Joseph you couldn't be a shout out to our friends out there.
Gotcha.
Tissue, so what type of forest your tank.
Homeward agenda since Alex since IPO, we've kind of called pin pad, that's how long she's getting home broadband people like you'll need that concern.
In the first quarter of 2023 our overall revenues of 540 million RMB down 31% year on year, but up 11% quarter on quarter revenues from car trading transactions for $430 million might be accounting for 79% of total revenues reinforcing our position as a strong growth.
Our company's net income for the first quarter was 78.8 million RMB appointment rate due to an increase in gain on it.
Sure as liabilities on the annuity implementation of accounting standards and the reversal of prior impairments loss due to asset quality improvement.
Entire outstanding balance of financing transactions, we facilitated how reduced from $25 6 billion RMB as of December .
The 31st 2022 to 'twenty point 7 billion RMB as of March 31st into 'twenty. Three we saw a N. One plus the nine months I'm, sorry, plus percentages falling to 2.33% at 1.29%, respectively. We anticipate the ongoing reduction in our outstanding pad and self financing transactions.
Together with our robust balance sheet will provide significant support for kangaroos healthy long term growth prospects.
Sure.
We are finishing closer together youll ginger.
I would like to provide some specifics on our 60, they can progress we've achieved with our company.
So, let's just assume it.
If you do it's just hard to say at Joseph.
Joseph once you own your total usual judge 70 system was chosen for Bobby stock once you see that.
Well, maybe I shouldn't say, Joe you'll Puget you shouldn't.
No need for children.
She thought it would do that.
If you do tend to hold her cool so to a certain chimp got bad news.
You already know her and yes, you do see banks. If you just send you send me a sense of either technical cultural fits what she goes home from true you're winding slipped by dosage of job she's done some differences, but just as you do more technical culture a P. P. P V.
She did she wants that you'll be talk about what.
Let's begin by discussing the.
The new China car trading transactions. The first quarter is typically considered the off season for automobile shows and when combined with macroeconomic and industry challenges. The overall market remains substitute subdued Nevertheless, our new car trading transactions business demonstrated a robust performance.
The first quarter exhibiting in house, the operational capabilities and efficiency. During this period a total of 3867 Cogs was so Don can go how true maintaining stability compared to Q4 2022.
As of March 31st 'twenty to 'twenty three the total number of dealers participating and tango, how chiller rose to 10469, marking a 48, 48% increase year on year.
By the end of the first quarter of Tango Howja App had accumulated over 877000 page views on a truck it's more like 78000 unique visitors.
You just said it sounds to me as somebody else's chunghwa.
That'd be a deep hole.
He will be a program.
Can you just tell you until kind of who she couldn't do you go to the food Naidu Tucson Junior you're not when we're pitching goes onto you put him Tom Fischer.
Mr. Hu part time people, who you can continue doing that.
So it's all about you know what.
It doesn't go to reach you sure you will find out how do you go agenda.
Just wondering how long ago auto Triple quintuple junk food eaten at home.
I am putting some chunkier, who do go through with Huntington.
So it sort of tongue in cheek.
Or do you think this vehicle inventory advantage has been significant contributions to the success of Tango, how trial, which has been warmly received by Ddos thinks he's inception.
Be bridging all vehicles from totally we have concentrated on our commitment to deliver ico Paris office to data. So a diverse range of high quality offerings. Since the start of easier. We have further refined our services. So accurate they address the challenges and unique requirements of small and medium sized theaters equipping.
Whereas in fact, its support to grow that business and achieve profitability.
Mid February can go how to introduce the new membership service. These incentive based program budget a membership repay policy, we've called data kids aiming to boost the repurchase right on service product and pasta D&O engagement.
Tulsa excuse me she isn't where we show these yeah.
So it takes a lot sooner coffee. So you shouldn't we shouldn't Gulf War she go to some food shelter.
This reach them she clean 90 for Shelby.
What kind of wall to the timber Moshe excuses dive bar tour. She she's definitely your yields are that these aren't comfortable with so little to.
Okay. So she doesn't want Deadpool, which you've heard me say on towards aren't talking about recruiting machine. So you tend to hold her jinglian myself, Jonathan Boehm Fool yourself do you need to do.
Sharp jumps from Jeff Jean Pierre Pinto haven't got tourists have been fulfilled.
It's a great bump into something called before she doesn't cause you to adult pancreas for sure could've movie.
In addition, seeing hostile on lots of efficiency, we introduced an intelligent AI cost them a service Oh can go home in April . It was 24 seven surveys has not only significantly improved our service quality for dealers and increase the satisfaction rates, but also bolstered our operational capabilities and efficiency more of our COO.
Go household multi store model.
Specifically designed to foster horizontal expansion by attracting more high quality third party auto service providers to all come online post.
In April can go how to I saw the launch of its first all my style by third party service provider J L. Cartoony, we anticipate the introduction of auto accessories boutique stores in the second half of 2023 empowering theaters, the better stuff and we can't talk to mess with a diverse range of products and services.
Wait I G.
2000, and the Kochi terminal haul short term teachers, so both him and Gertrude yogurt and cheese or how are you. So I'm sure you'll come to what Sanjay I'm going to.
So there's some of your T cell food she goes onto agenda.
So you shouldn't change.
You just have to contact all food water and.
Sure. So long as you want to know more.
Moving for what field by Big data and digitalization can go hold so well persistent deepening its multi sports fashion strategy well call me more upstream and downstream participants from the auto transaction fatty chain to join us in doing so we aim to 40 actual actualized.
We thought sharing across the industry by Iranian maintained barriers between small medium sized theaters and automotive service providers and achieving by bi directional or toy in parliament, So will digitalize the surface processes.
Jason I would just yourself of course is that possible to have Joe you found me in the fishing team John .
Two technical Utah, a P P sounds yes.
Yeah.
Jumbo Tunyaz good.
Tasteful ghansham country closer to bringing a P. P. It's a young man.
Also to Lasalle charts, I wish we'd done yeah sure absolutely so good between undergrad to.
Well it doesn't change from day to Tokyo Boardwalk with Aloha, you're attacking each of those savings in the future to walk through the cookie.
John I'm joking, Carl well, Yeah, Oh sugar you Josephine.
Now, let's shift our focus will use costs building on our success of the Kangoo, you'll call Mini program, which was introduced in May last year. They can go a whole call App was launched in early January in ECS. The App all pricing tandem wisdom mini program, providing a seamless experience both the app and the mini program have been specifically designed to offer comprehensive.
With technology, driven services that are more secure reliable diverse inefficient for used car dealers and individual used car owners alike by refining. These services, we have been able to better understand and cater to the unique needs of various industry players offering a one stop solution for all their requirements.
She said the answer Joe you deal with a suite to suite will have no need or youll have synergies technical yoga. Therefore shouldn't you hung Kai. This is a program I think two of them thinking about yeah, sorry chase into it.
Two you have trouble so you're asking for Asarco you fully built general voucher system Boy I'm going to just send you as you do more you know what you can do Josh.
Yep.
Gotcha.
Sure you bet cheeses, Joseph just because you're doing more technical Utah a P. P. T shirt. So she doesn't HGTV yogi couldn't be a total when she does her work so hard to do well.
Paula by all in half to used car transaction services and optimize their digital capabilities Hengel. Your car now provides a range of functions, including historic vehicle condition report vehicle appraisals. All my options online caused such a used car listings self operated you've got inventory repurchases and Dallas.
Such as logistics financing and insurance by the end of the first quarter of 2023 Oh now what kind of included nearly 6000 breakfast a used car dealers across 179 cities in 'twenty, one I mean in 2009 provinces nationwide.
Cumulated page views and total unique visitors only kangol youll cough up a mini program. We're still about 513020 6000, respectively by the end of the first quarter of 2023.
Do you are those whose name I guess wasn't doing things to get that told me is simply the chunk of adults who want him to turnkey.
Guten chimneys arches firsthand.
The opinion, though you started she said for you sooner and Judy you found out of the shelter in June .
Hudson Toyota trigger Jindal.
Generally tend to have a cohort that has a chip just had wanted to pull that up.
Those are terrible awesome, so Joe your food.
Sure.
She took what Turner, who will talk out in the year you only got one type tenants aren't using kokoda change I'll tell you what he.
She said she could be to you and of course, you flip the switch.
So I'd tell you to just have yet.
Did you go to Youtube as a trigger for me at the fishing season.
Maintaining a stable at above the things until they saw it as a transparent pricing structure are crucial for used car dealers. Thanks. So while he sends his extensive dealer network across Noah tier cities on a decade of industry feeling we have ample sources of high quality used car such as trading from our auto financing cost.
Those haven't repossessed cars from our asset management Department. These properly, saying unique advantages for our used car transaction services and specifically address one of the primary challenges for youth Costed US. In addition to overdo costumers Kangol has potential inventory of approximately 20000 used cars from customers.
Whose payment and it's normally each month powered by our house cause debilitating youth park with fish and I transfection conversion. These potential inventory sources, along with repossessed cars, while further strengthening our competitive patch Ralph can give you a call in terms of used car resources.
Yes.
You also want to empower my parents all of the century.
It shows up how much is just use it also well my goodness GPU youll classroom teacher jingles. He's gone until you just towards the doorway, Belgium soon vehicle Jojo to talk to US all talk or Google pay my goodness, some objectives, Arthur So Australia, GGP cookies gene jump him out.
So it's that much and Tony I'm doing.
Don coming through from Jiangsu, Shandong your way towards your ASO Tucson, you're going with your you've got sold.
Let's stop being told what she can put you through now.
That's where the jogger why that's so.
So without those.
In my part is you can't go you'll call successfully obtained its online auction qualification with upgrading auction services. In addition to auctioning your individual on repossessed vehicles, all registered dealers nationwide to pay now their youth possible Pete will be to auction so will our platform.
As far as we know these capabilities the first of its kind available in a market in other words, we can now provide all small and medium sized used car dealers with additional technology enabled sales channel, enabling to enabling them to achieve better prices and foster inventory turnover.
So it actually is hurting gen. Two horns, yes, it wont go Joe you're getting the ones yet.
Four months, you'll need a three inch interests to do but you can check all of them, but they get into a nerdy hardening, we took certain course he cooked chicken.
Ooh towards your.
So on your food genius.
But she said foujita darker interim data with Wuxi Joey Xu She's got to hustle to Joe Your children people you don't do that.
So hopefully.
We're growing fashion plays an important role in improving the used car transaction experience. We have lots of established in house technician teams to not only improve all capabilities, but also offer a professional services to data center, you'll see illness, including vehicles condition checks pricing and licensing I went to patients in.
In April of this year, we entered into a group level partnership with China Grand Auto to provide a suite of professional after sale services for all its use costs.
Charles will seem to have peaked out yourself, but you got to start to show signs of tower, you Wouldnt really sometimes enjoy your pizza, we don't factor in a just technical junk food.
So she's of course, even with where she couldn't be Jamie didn't yet she said I don't want it.
The third one sorry.
For a full time people didn't transact so Joey took hope so the Ghanaian everyone's heard itunes Tony chime in I'm, sorry, you got one thing that she told it would when people aren't saying wait till what she said, yes since a while could you quite a bit and go a quarter ago.
Going forward, we will continue to accelerate digitalization and enhance our differentiated services in the audio market VSAT, that's where I'll provide a foundation for kimco sustainable growth, we remain committed to standardizing all offerings and deepening our penetration across the automotive value chain policy.
Big data and technological innovation, we will continue strengthening our competitive advantages across the supply chain copper and car transactions optimal pest services and ability of closed loop ecosystem with DC initiatives Tango is well positioned for resilience as we strengthen our place in China.
Automotive industry evolution powered by digital technology.
Sure Mrs. Just joking a woman does seal so it's only a week you'll go away for each one separately.
Sure makes I will turn the call over to our Chief Financial Officer, Michael John for a review of the company's financial performance.
Thanks, Joe Hello, everyone and welcome to our first quarter 2023 earnings call.
Before I started to review our financials.
At least noted unless otherwise stated all numbers I RMB terms and all percentage comparisons.
On a year over year basis.
Our total revenues for the first quarter was $542 6 million, among which are trading transaction business delivered revenues of $429 8 billion further demonstrating solid position as our major revenue drivers.
Now, let's move on to our costs and expenses during the quarter.
Total operating cost and especially the first quarter of 2023 were $490 8 million compared with $976 8 million in the same periods who's out in 'twenty two.
Cost of revenue in the first quarter of 2023 decreased to $480 5 million from 687 million in the same period 2022 as a percentage of total revenues cost of revenue in the first quarter 2023 was 88, 6% compared with 87, 2% in the St.
<unk> 2022.
That was in our marketing expenditures in the first quarter of 2023 decreased to $12 5 million from <unk>.
$53 8 million in the same period 2022.
As a percentage of total revenues.
Marketing expenses in the first quarter of 2023 was $2 three per cent compared with six 8% in the same period of 2022.
General and administrative expenses in the first quarter of 2023 decreased to $39 8 million from $15 9 billion in the same period of 2022.
As a percentage of total revenues general and administrative expenses in the first quarter of 2023 was seven 3% compared with six 5% in the same period 2022.
Research and development expenses in the first quarter of 2023 decreased to $8 1 million from $14 5 million the same period of 2022.
As a percentage of total revenues research and development expenses in the first quarter of 2023 was one 5% compared with one 8% same period 2022.
Gain on contingent risk assurance liabilities in the first quarter of 2023 was $1 6 million. The gain was recognized due to the release of obligations from the contingent effect of their risk assurance liabilities.
Recovery of provision for credit losses in the first quarter 2023 was what.
$48 6 million recovery was primarily due to the positive impact from the collection of financial receivables.
We recorded income from operations.
$51 8 million in the same in the first quarter of 2000 2020.
<unk> three compared with a loss of 189 1 million in the same period 2022.
Net income in the first quarter 2023 was $78 8 million non-GAAP adjusted net income in the first quarter. Two 2023 was $92 8 million.
On a per share basis basic and diluted net income per Etfs in the first quarter of 2023 was 0.58 and 0.56, respectively and non-GAAP adjusted basic and diluted net income, but it is in the same period was 0.690 0.66, respectively.
Moving onto our balance sheet as of March 31st 2023, we had cash and cash equivalent of $696.6 million compared with 378 or 9 million as of December 31st 2022.
As of March the first March 31st 2023, the company had a short term investment of 2 billion compared with $1 9 billion as of December 31 2022.
Looking ahead to the second quarter 2023, we are now predicting our total revenues to be between $600 million and 615 billion.
Please note that this forecast reflects our current and the preliminary view on market and operational conditions, which are subject subject to change.
This concludes our prepared remarks, operator, we're now ready to take questions.
If.
If you wish to ask a question. Please press star one on your telephone and wait for your name to be tomorrow.
If you wish to cancel your Cogs Hmm.
Downstream.
Yeah.
Why did you pick up a home.
To your question.
There's no question that comes from Stanley Wang from Morgan Stanley . Please go ahead.
Hey, guys, how hot when she was barely downwards.
I mean, it's hung Ching dog out go N T.
Women turned out.
Good at what he does.
Yeah totally I apologize Shaanxi.
You guys have money can be seen in New York, which would equate.
Do you have quite a bit he said catwalk Oh, yeah sure quadrupled went down.
Hello.
Oh, so satcom simple thought intrusive.
Okay. Thanks, Don D can be tied to the game since it.
Good morning, I have two questions. The first question is that beginning in ECM any OEM suggested out strategies why do you think of a structural opportunities for Aep's, new energy vehicles and also internal combustion engine vehicles insured Ice's. My second question is that say Oh for deal ratio itself.
Tango with financing facilitation business truck is a sign of reduce clotting risk in the market and gradual economic recovery. Thank you.
Oh sure sure why did you go into it should do their tushes shows the P. Drip Sheila Chilean shoetree shifts totally AUM toward into a future don't be shy jumped by Francis the Sundance unit.
I couldn't tell you with a thought she so when you go to Suzhou, which our R&D engine.
Oh geez.
Would you be doing to the Universal Church, a chunk that's on jobs or go towards the corn one type of.
Thank you for your questions about the first question the automotive industry was sluggish in the first quarter. According to our China passenger car Association retail show so passenger vehicles decreased 13.4% year on year and consumer demand began slowing things snake 2022 as incentives and it.
The impact of China, six B emission standards and an industry wide price competition further constrained consumer spending.
She really itchy so short answer yes to suit your cellphone.
She says Colby.
Or was it essentially so Tony I'm quite.
Oh goodness, she shouldn't limit your intuition told you want I thought, but I'm just trying to do congruent you issued it sounds like Twitch Twitch would've if I wish adult and children to you by your Baidu Schindler's, Angela although nev sales slowed in Q4, 2022 EV penetration exceeded 30% the C. P C a fault.
And you'd be penetration. They reached 36 this out nationwide in 'twenty 'twenty Street, and the reason Shanghai Auto show over 100 of no more than 150, new models launched well any piece.
What did you have which are central to the human Venturi shot show, probably teaching human being tuned and Jonathan so well, but we're generally she linear until it's very short term system, where you'll be off the table. So you should start to show true. In addition, government campaigns encouraging moodle and you feed purchases and expanding charging station staff indicate lower.
T a market all the huge opportunity our opportunity and potential for M. E T cells, a growing trend.
Do you want to reform yet we have tied up what are you. What are you interested in you and she doesn't it deemed tradeoffs Angela to just home so touch on that shortly.
Fault and I CEB the announcements made at some S. E V received a grace period under the China six emission standards mitigated some of the sales pressure for automakers.
Wednesday I'll go when she look itchy to Turkey.
We don't I think you got EM jawi patterns are down.
I'm sorry, Joe.
Joe.
Two farms.
Pardon me Youll shower gel system, you'll see Jojola machala put out just trying to piece it would be too tight.
So G T J just.
She started bullshit.
The temperature is all about.
This is Julian.
She didn't youll start here Joe.
As of the end of first quarter, the total outstanding balance of financing transactions.
I did what 26 20.7 billion RMB with our M. One path and then mm mm three plus ratios down two to three 3%, a 1.29% respectively and all are overdue ratios decreasing quarter over quarter overdue ratios dropped and they made because we strengthen.
Our collection of its off nonperforming assets, leading to a decrease in value of numerator and denominator for calculation will allow us to live with what prepaid.
Just to say that the woman does have never cool usurping dual suncor judging down you end up cookie Pinterest shall we supposed to be there for.
So it's up a window cohort showing things it could be up to.
By the end of March all existing customers had already been paid and made payments for about two years with enough. Rachel 14 months, we may only have to be paid much contracts, but is that too I would know what overdue ratios from these customer cohort.
A woman of Finjan Turncoats appetite Jay Shah Star system goes through some of the shingles, So Chi Foon Chan.
How are you.
When you do it's also switching between countries, while all of them I'll spend the balance of financing transactions continues to decrease our risk exposure that's been shrinking the prior cycle and risk exposure off the entire market. We may not clear yeah. Therefore, we will remain cautious and prudent.
How would it play with doctors. Thank you that's all for your questions from my side.
Oh.
Yeah.
Thank you. Your next question comes from Emily <unk> from Goldman Sachs. Please go ahead.
Yeah.
What's your Oh, gosh in the Emirates, where Japan, and U O longer lunch.
I'm sure some of them.
Councilor got you, Dave Trembley crushers, those all kind of built out its going to not sell northern.
Northern California had sent or you are going to look a downhole should either your time do you feel about trillium for them yet.
He was here coming out of the Covid, what Thiago in two huge below Chico Joey.
You're what Nazis pilot would gather four you mentioned that you've got something else that's important.
Since you are traveling to tissue.
Thank you I have two questions as well first question without a price war that began in March weighed on the whole industry would you.
Please provide some color around where the market is heading and go nationals for vehicle inventory and the second question is that in addition to car trading transactions business could you shed some light on the developments of your honor that anybody in surfaces.
Yeah, you bet Joe.
These returns are that you can pull to sharp assume what she says it all.
No not the peninsula Pulpboard do dual gender.
Genius Unburden, you chose the meal.
Yeah.
Come on towards our two G. Jus attachment do seem to kind of see that she took the show fee paying didn't so cool.
Sunshine built by us either funding schardt jumped by French of Sudan.
So don't go to say Ah by Society.
I'm pretty sharp jump off is Judith cheap too.
She always food dealer count you don't see a fine tuned until things. So we'll buy a bunch of Joe del Wonder Toby you try different bourbons.
You can also just to kind of sharpen the yodlee. He joined the full suite that you show a strong relationship.
Thank you for the questions on your first question China's automotive industry began moderating in 2019, we used a pandemic thing patch recovery has been a staple in stockish. The highly anticipated rebound has yet to materialize in the first half often to 'twenty three according to the National Bureau.
Statistics are minutes real fondness and April retail sales of automotive consumer goods, what 362 billion RMB down 15.1% quarter over quarter connected vehicle purchase tax was $21 3 billion RMB down nine 7%.
Quarter over quarter, and China automotive automobile dealers Association data showed that from January to April the retail passenger vehicle sales was about 5.8 95 million down 1.3% Youre wrong, yes in summary.
The auto market still faces considerable downward pressure with little evidence of recovery so far.
They want a cheetah Koji Hershey show total gotcha, that's a huge would've shown people what she's done some Egypt, but that's.
That's a page and Chuck so too so took him to say usually take to China's long yati cause huge or pure total easily you can show it sounds simple.
Both had a chunk of it that she joined the Chowhound yet pincher, you'll your most your faces all booted up but don't you set up in one chunk. That's a shame that you went to a food yeah. You always find it puts you in general long run loss. So she she's familiar with junior Bon ton thought so awesome.
The show will show the truth.
Despite improvements in supply and demand recovery on the demand side was to moderate for the new supply against this backdrop and coupled with the withdrawal of subsidies Wuhan started up high school as production capacity resumed amidst weak consumer demand being appropriate intervention by.
No market participants exacerbated the situation the price won't disrupt it marketing would've impacted the used car market, that's well NOLA prices ultimately hindered rather not helped the situation.
Yes, we would want you to order a pizza to use without your pet food.
What you don't see that could turn into.
Her system don't being with the concept that I presume champagne, yet well media, we do cool things that don't have anything to show you some of our shale for the time being docomo.
Martinez yourself Wendy she sends her on that yet.
And children.
Yeah, we are reducing rental rate in anticipation of China six emission standards. This proved a very wise decision safeguarding odd from auto market disruptions and losses in the second half, we will maintain and no inventory level and hospital based product so phase products function, but.
<unk> refined our business management and upgrade the data experience as well as improve operational efficiency.
Well it yoga when she will move also to the total yield so what's your what's the pools are champions, who also which is a gene go so yeah, we do.
When was she wants to know the full part time people, they're going to hold off emerging Joe. So she can do other things. So it's all going to end up here, but I can put a little yeah.
Your second question. In addition to revenues from car sales, our services and products, mainly aimed to enhance the dealer experience. We hope Lisa surfaces will empower ddos attracts more small and medium sized students to our platform and generate more traffic.
Jason I'm always starts with people who are choosing to machine with wishing that you don't lead Gen system more tempting did therefore.
We chose on Telerik and finished with good geological much yet affordable housing the.
Shotts, who sits on tinder social.
Going forward, we will leave French big data and technological innovations to refine our products to refresh our surface portfolio and often more accessible and diversified functions. So as to improve the dealer experience and we believe that these will in more effectively support our small.
And medium sized theaters across lower tier markets and cautious.
Scholarship. Thank you.
Yeah.
Thank you. Your next question comes from paying anywhere from Citic Securities. Please go ahead.
Okay.
I mean, I think that's it.
Oh I sure don't think don't you have those yet and most of them with all of that and then.
Do you go and she issues, you're trying to close it out while you can see that flush it out he made some serious absolutely I mean talking about them.
No well with it.
Oh, Yeah, yeah, yeah, yeah.
Yeah sure I'll jump gotcha.
India has been about 12, it until it gets firmed up although it was on too long, but he's Hong Kong element. That's happened in Chicago, New York Hung up I can feel it sounds like you know, it's you should oh.
Yeah.
We also took a different thought listen, but yeah can I quantify it yet although told me lots of thought he don't want take that.
Sure sure.
Some cobalt too much water.
Yeah, I'll talk to it is that I think all of us I suppose she's doing a Hollywood knowledge.
Putting all this downturn ginger I'd hope all quite a haul the global harsh or something beyond that.
Yeah.
Hi, Thank you I'm sorry of city Securities I have two question. The first question. He thought he has indeed in March and April car market have not been performing very well. However in may based on data we have seen some pick up seeing both the traffic tourist doors as well as our car purchases so what about <unk>.
What's your market have you observed any similar of demand recovery and I know what your market and that's my first question and the second question is about our used car market well based on what I've heard I understand that accompany mainly provide services on cost the most for you.
Car purchases do I understand that the right way and also what about could you give us more color on your plans for your used car business and watch what how you saw somebody he was called market. Thank you.
Uh huh.
Uh huh.
Got you got you still need to do that kind of a warm winter you sort of reaffirmed that you can quote or.
People know, but we'll chase short term emphasis on Liberty mutual.
One person crew shifts sensors should turns on cuts to pay sort of Georgia with 23 P. J.
The Zip I've been just shoot up I mean, just spot jumbo loan from Cogs to pay so to get to.
So you end up back in this.
For your two questions. Let me take on the first question first overall economic indicators and total financing shown between pump mounting in April and May so recovery in lower tier markets have just be golf and public data show not tier three until forest City household disposable income was seven.
17% to 18% below national average and rural households, disposable disposable income was 40% that's all hot oven levels.
She told me she will be the judicious you thought up I presume. She said she would go to somebody else just homebuilders shut down five and just has to deal with them.
I don't know waits until the wood Chipping Zillow path and just saw it deal with Oh gosh.
Gotcha.
Something done.
According to see idea data, 51% of Ddos reported declining transactions and 36, 5% reported flat transactions that only 12.5% reported increase the transactions.
I would say, it's all one word yes, you shouldn't done that kind of short term issues on this one.
One can treat children shutdown you put your huge change I chose those two ships on critical to a cohort leads to people I want you to all.
Well based on our first like a frontline spirit in lower tier markets. Many ddos closest both while remaining ddos so much at all it sounds funny I was unexpected and our sales team is interacting with the clients notice that the consumers, mostly postpone car purchases.
Or can you also tell us it'll almost kind of a thing to your fossil does seem to have some kind of a job goes up which is known to have children Torching how're you too long. She supports a nutrition that Joe was just off the shelf off but they're also to assist her thoughts when they think the Fuji chinchillas as a joke goes onto to save you also took G. Josh I jumped up and do some work.
She's a dual source, you're always food dishes sunnyvale to wash with justice on Joe Yeah, you bet, we can do it and she's the one deal lumpy turning them back when she gets it doesn't suit theory, which is repeat.
Oh your second question on used car market well the reason new car price fall will push the prices to all time lows clothing wrap off substantial depreciation in used car values. It has also impacted so used car market. The used car price war has that to a 5% drop in average used car prices in March.
And also 156 million used car trade ins nationwide in March up seven 4% quarter over quarter, a slower rates than in previous years.
I don't see that kind of what's your ASO truthful technical questions quite honestly she used to courtyard films boot season, so to kind of show you end up could you also said you shouldn't be.
She's I shouldn't sort of course I'll also touch from del Taco Ginger juices that Eugene mentioned, Michele will more fascia certainty there not that too when tensions I'll see what we're doing we're also so quick Huntington.
I'll, let you do that.
All the all the used car market is rapidly expanding due to a favorable government policies encouraging news Cogs businesses also brought in a new car market, increasing our supply of used cars. Despite COVID-19 negative impacts the used car market. So steady growth overall, we believe the used car market will maintain sustainable long term.
Due to government policy support and also increasing supply of used cars as the new car market expense.
12 basis permits you to well muscles or a P. P total, Utah sounds yeah, whichever fool hung Kai. This is visa tokens housing slowdown pinkel. She as Paul just said she I shouldn't talk to you I'm sure. You also to attack your audio General Bullshit Boy a hormone just send you as you do more yield.
Do you also tourism can cause.
Got to wash, the Joseph Abboud shoes of Joseph pin pads into a sounds good Jim.
We used to Stephane, just sensual yourself, Joe you'd know Julia if I'm being pinged Harley G. P. B, you'll be it wouldn't be a toehold she's going somewhere else. So it didn't do what.
And and Congo, We launched Tango you caught up in Q1 and this at all or if it has been offering a vehicle condition reports evaluations on my auctions Caso Chase these things inventory purchases and also it will just take some financing and insurance services by the end of Q1.
One Oh do you don't have work included nearly 6000 used car dealers well in 179 cities across 29 provinces Tango Youll causal monthly active users above 35% transfection stabley month from Murphy from January and also 513000.
Cumulated page views and 26000 total unique visitors.
Or a genius.
Total Europeans are ones, who Paramount peds, all the century cordless shows on Pemex has reached its peak.
I think that the paramedical machine before youll have synergies.
Junior so she's done until you just have to go through it permanent go too soon as you hope chunk working towards horizontal cuts will come back when it was someone's got to Australia, Chin-chin, Peter Peter to jump in there I mean in April can go you'll call obtained online auction qualifications and are we also upgraded the auctions.
Nowadays upgrade allows individuals on repossessed vehicles to be auctioned and the old Rochester, Adidas nationwide permit to use cost for P to be auctions.
Sure. Thank you.
Uh huh.
Thank you.
No further questions at this time I'll hand, the call back to management for closing remarks.
Okay.
Oh no.
A woman's intellectual property tissue tissues Anja. Thank you all for your participation that closes today's earnings call.
That does conclude our conference for today. Thank you for participating you may now disconnect.
[music].
Hum.
[music].
Mhm.
[music].
Yeah.
Yeah.
[music].
Yeah.
[music].
Yeah.
[music].
[music].
Yeah.
[music].
Yes.
[music].
Yes.
[music].
Yeah.
[music].
Okay.
Hum.
[music].
Yeah.
[music].
Yes.
[music].
Yes.
[music].
Okay.
[music].
Right.
[music].
Yeah.
Okay.
Yeah.
Okay.
Yeah.
Okay.
Yeah.
Okay.
Okay.
Okay.
[music].
Yeah.
Mhm.
Okay.
[music].
Uh huh.
[music].
Hum.
[music].
Okay.
Okay.
[music].
Yes.
Okay.
Hum.
[music].
Yeah.
[music].
Yes.
[music].
Okay.
[music].
Yeah.
[music].
Hmm.
[music].
Hum.
[music].
Hmm.
Okay.
[music].
Uh huh.
[music].
Hum.
[music].
Mhm.
Hum.
Hmm.
[music].
Uh huh.
Yeah.
Yeah.
[music].
Okay.
[music].
Hum.
[music].
Hum.
[music] Oh, yeah.
Yeah.
[music].
Yeah.
[music].
[music].
[music].
[music].
[music] [music].
[music] [music].
[music] [music].
[music].
[music] [music].