Q3 2024 Uxin Ltd Earnings Call
[music].
Good day and welcome to the <unk> third quarter fiscal year 2024 earnings conference call.
All participants will be in listen only mode.
Did you need assistance. Please signal a conference specialist by pressing the Starkey followed by zero.
After todays presentation, there will be an opportunity to ask questions.
Ask the question you May Press Star then one on a touchtone cellphone.
To withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to Mr. Jack Wang. Please go ahead Jack.
Jack Wang: Alright, Thank you operator, Hello, everyone and welcome to <unk> earnings Conference call.
Jack Wang: For the third quarter of fiscal year 2024 ended December 31 2023.
Jack Wang: On the call with me today, we have D K our founder.
Jack Wang: And C E O S.
CFO: <unk> our CFO.
D K: So you can't really reveal business operations and company highlights followed by John who will discuss our financials and guidance.
D K: And our guidance level.
D K: They will both be available to answer your questions during the Q&A session that follows.
Speaker Change: Before we proceed I would like.
Speaker Change: To remind you that this call may contain forward looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations.
Speaker Change: For detailed discussions of the risks and uncertainties. Please refer to part of our filings with the SEC.
Speaker Change: Now I'll turn the call over to our CEO Dk. Please go ahead Sir.
Speaker Change: Okay.
DK: I'm golfing couldn't go towards it.
DK: The only way they seem to get them yet.
DK: That dialogue and the album they adopt we know phone behaved well now I'd hope you're doing well.
Speaker Change: You said your digoxin.
Speaker Change: We can do that.
Hello, everyone and thank you for joining us today I'm pleased to reconnect with you all on the call.
We've had communication with both domestic and international investors I wish her all the company's latest progress in both Chinese and English.
Yeah.
Speaker Change: Well Duncan Dale Jr. Do you do that.
Speaker Change: I definitely don't want something that chemo combo Oh wait.
Speaker Change: I will begin by reviewing the key highlights from this quarter before sharing any of the work. We're currently engaged in a lot of plans for the future.
Okay.
Speaker Change: Are they are so tiny and defend you do you're just you're already north unused adult Charlotte wondering just how you'll pay for even the June got call artificial kind of hunting you filled all eating some buildings.
Speaker Change: Two months out in Nevada, and Utah, as well does that equal year without in Boston.
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Speaker Change: Thank you for being here puneet them down by a million.
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Speaker Change: Told you Dominic on even though our yocum value at all.
Speaker Change: Okay.
Speaker Change: The children, we entered that Thanksgiving you need a cobalt shouldnt be names you bought it you do MTS badly with things on coffee.
Speaker Change: In the third quarter of fiscal year 2024 from October to December 2023.
Speaker Change: The new car market and finite began another round of price reductions, which also impacted the used car industry. Despite.
Despite these challenging external conditions, we continue to see growth in our retail business.
Speaker Change: With total retail sales for the quarter, reaching 3081 vehicles.
Speaker Change: This represents a 34, 7% increase quarter over quarter and up five 2% increase year over year.
Speaker Change: In addition, our superstores are operating more smoothly than never maintaining a highly efficient turnover vehicles of less than 30 days and achieving an industry, leading net promoter score or NPS over 64 consecutive quarters.
Speaker Change: Okay.
Speaker Change: Change is a well known case, you can bundle you'd even deal with Oakley mahogany.
Speaker Change: Today, you would see this year that army asking unit youth and well meet you sold so yeah in my opinion. The EBITDA you mean, well let me go he hears that Arnie Hudson you name it.
Speaker Change: In shambles that EBITDA E Cig integrator Houngbo, you don't want them, it's harder to go mobile.
Speaker Change: Alcohol.
Speaker Change: So that all plays out well do I can just.
Speaker Change: Colombian debt tender.
Speaker Change: Currently we're focusing on enhancing the scalability of our profitability, it's worth noting that in January 'twenty 'twenty four we achieved EBITDA profitability at a store level for the first time.
We are confident that within the calendar year of 2024, we will reach EBITDA profitability at a company level as well.
Speaker Change: The diligent efforts of the past few months.
Speaker Change: The most.
Speaker Change: Significantly for the skull and today I'm pleased to share our progress in three major areas.
Speaker Change: The trillium.
Speaker Change: Trillium shelter that she comes out.
Speaker Change: I would tell you on Bulks Youre getting uncle Sam.
Speaker Change: Sorry can you dig into the Keytruda, a boardwalk hungry woman that shut down things on the knee deep within these young colleague pilots who called.
Speaker Change: How would your lifestyle.
Speaker Change: Chip I forgot to based on genome.
Speaker Change: Anytime I tell them that scan beam high Trumbo youll see it come back yet.
Speaker Change: I mean, you bought down but they are cool yeah control, because we didnt cool.
Speaker Change: Do you could you walk through a shelf will go up.
Speaker Change: So I mean, our Sydney and D. G to you there, but it seems like that that didn't go well not maritime you you haven't yet shutdown Jordan see whole meal Philadelphia Bloomingdale.
Speaker Change: Firstly, our vehicle sales system, continuing to evolve and mature maintaining a robust vehicle turnover rate.
Speaker Change: Despite the market volatility in recent quarters, we have further enhanced our vehicle pricing capabilities, allowing us to rapidly adjust prices in response to market ship, ensuring that we're pricing can always be competitor.
Speaker Change: The inherent branding the strength of our physical superstores has also become increasingly evident in our comprehensive customer services absolutely.
Speaker Change: The wider recognition further boosting customer acquisition and sales conversion.
Speaker Change: During the intense new car price competition in the first three months of 'twenty 'twenty four.
Speaker Change: Our store operations demonstrated resilience with vehicle turnover remained stable despite the market fluctuation.
Speaker Change: Yeah.
Speaker Change: C R.
Speaker Change: Paul did you put out in children sheltering at home you need to meet up with them. So if I'm hearing you that people walking back and Goodbye for me and send out each one of them. So much on the user through them. So you can really do I took the time.
Speaker Change: They put on dotcom.
Speaker Change: So I mean equal your diamide homeless shelters hunting well many of those are going down which would be in July boy on parcel dosing got beat up.
Speaker Change: General policy in G&P.
Speaker Change: Volume then of course, I'm going to hand, it shouldn't hold me, which ones I opposed to teach them without young women you can go into them all evens yet.
Secondly, well maintaining vehicle turnover efficiency.
Speaker Change: Where profitability.
Speaker Change: Actually increase this.
Speaker Change: This improvement stemmed from our superior quality surveys and blending over traditional car dealers, which enabled us to effectively achieve a favorable market level price differential for our vehicles.
Speaker Change: Additionally, leveraging all the superstores, we have launched a customized fiber and cost effective value added products in collaboration with our supply chain partners.
Speaker Change: The penetration rate.
Speaker Change: Financial products and insurance accessories extended warranties and maintenance services are rapidly increasing which will continue.
Speaker Change: Which will contribute further to our gross margin in the future.
Speaker Change: Is that.
Speaker Change: Yeah, Yeah yeah.
Speaker Change: One continued and the gentleman, who saw that easily yeah, we don't guide the Shanghai.
Speaker Change: Starting off with the help of unusuals black sheep, cocoa and yet home, but you wont believe in Wuxi to avoid greenfields each of the tell my favorite P. Latham jammed my time, the genes and yield.
Speaker Change: That shouldn't be a whole new way she's my phone, but you will find that it didn't do much with the jumbo or easily a jump in John.
Speaker Change: Susan.
You do a compensating johnson without eating out whether you'd be shocked.
Speaker Change: Thirdly, we have.
Speaker Change: Congratulate a comprehensive business review and optimization to initiate a new round of cost reduction.
Speaker Change: Huntsman.
Speaker Change: In our retail operations, we have rigorously refine our processes and fully utilized digital management tools.
Speaker Change: Typically we have a particularly because I'm in cost in all areas optimized our workforce structure.
Speaker Change: The cost of the efficiency ratio and improve the operating cash flow of our super scores.
Italy following the spring festival, we realigned our organizational structure to better meet the development needs of our Super scores.
Speaker Change: Executed a series of initiatives to further reduce cost and expenses.
Speaker Change: Starting from April we expect these efforts to save us over 15 million RMB in our quarterly.
Quarterly costs and expenses going forward.
Speaker Change: Okay.
Speaker Change: That came in and you got to you do they seem to have a job, but Andrew Oldman passionate someday Tien tsin. The shortfall you couldn't fit into your decently well the other thing John Michel homes means meat eating tool that should have some teamed up with them when we get into that actually wouldn't booties uncles E. G that union yesterday sexual trying to pay that off with an idle talk I should have been.
Speaker Change: You do a Bachelor down that stand out for me.
Speaker Change: Although crimson Shelby doesn't bullish jump and I see it until the shutdown from Don Cleveland, Louisiana, Austin, you enjoy I think geez yeah.
Speaker Change:
Speaker Change: Uhm EBITDA you need in Virginia, and should all show you think pansy do constant EBITDA you need a mobile.
Speaker Change: As you have seen we have implemented a conscious vehicle acquisition strategy in the past few quarters in response to the recent price worse in the new car market, which helped us maintain a relatively low inventory level.
Speaker Change: Now our pricing sales and operational capabilities are very well equipped to manage market fluctuations effectively so.
Speaker Change: So we have started to increase our inventory levels anticipating that our end of year.
Speaker Change: <unk> will reach approximately 4000 units, which is around three to four times, where third quarter inventory level.
Speaker Change: This expanded inventory will provide consumers with more often.
Speaker Change: Enable us to achieve monthly EBITDA breakeven before September 2024, that's all that's companywide EBITDA profitability in the December quarter of 2024.
Speaker Change: Oh sure Yeah, we can do for them, we want woman down there are some unique one time eval I'm glad he might have to change a whole of gene Tobey.
Speaker Change: And Jim Jong shared content, Josh he hasn't Oh, My God, you don't Fool Goldbergian Coleman.
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Speaker Change: You'll see that on the Tiger.
Speaker Change: Well I mean I'm sure.
Speaker Change: Aegean North eastern ship on that to have John Fisher table, you'll see me like Union Dutch Boy Scout, yet, but you wouldn't go.
Speaker Change: Additionally, as part of our strategic development plan, we are on track to complete the site selection and operational preparations for one to two new superstores within 2024.
Speaker Change: This initiative will further strengthen our integrated.
Speaker Change: <unk> network of online operations and offline superstores or business model has garnered significant recognition from local governments, especially following better visits to our hooker Ghansham superstores.
Speaker Change: Consequently, we have received accurately in the patients from this region.
Speaker Change: Publish new Super scores.
Speaker Change: We're currently at one thing implementation plan.
Speaker Change: February which will propel <unk> nationwide expansion and drive business growth in the coming years.
Speaker Change: Most of that idea and sang Jeez English.
Speaker Change: Well of course, you got the new homes little going global with it.
Speaker Change: Using by Mitel most of that you can negotiate some semblance of gene, but I'm not sure whether she will begin the downstream and in home dining you'll have to wait till more hours.
Speaker Change: Cynthia.
Speaker Change: Earlier in March the company launched a new round of financing, which I personally participated I think investor.
Speaker Change: And my personal commitment to reflect my confidence in the substantial opportunities for development in Chinas used car market.
Speaker Change: The strength of Houston Super store model and its robust growth trajectory.
Speaker Change: I'm deeply committed to staring Houston towards becoming a leader in China's used car industry.
Speaker Change: Yeah.
Speaker Change: Well I didn't hear you can't really say that I wouldn't there's ample job without jobs and housing.
Speaker Change: Please.
Speaker Change: And with that I would like to turn the call over to our staff O Jon to walk through the financial results.
Jon: Okay got you okay.
Jon: John you talked Jonathan Chang, calling for.
Jonathan Chang: What's the timing of incentive I wish you well.
Thank you TK and Hello, everyone I will provide a closer look at our financial results from the first quarter of fiscal year 2024.
Jonathan Chang: So in regard to pick it up on the outside.
Speaker Change: What's key trucks, you can lever either some trucks out there that somewhere down the kimco should the hunter and yeah, I'm going to turn out in the document.
Speaker Change: Sure My time in Washington, The Mexico, well Charterer Kishi Crazy constantly have our total come in quite a certain trigger.
Speaker Change: That's how he got it turned out to issue. So I hope to put out there both on a hunter dry powder, so that total that Michelle shipping on.
Speaker Change: And they understand the industry interest Sharqiya type C.
Speaker Change: C O N E.
Speaker Change: E band that should work out well I'm going to challenge our children <unk> impact to EPS.
Speaker Change: We can.
Speaker Change: Showdown central and passion.
Speaker Change: One being some time essentially can be found out back in June.
I think I just highlighted.
Speaker Change: Chinese mobile market and clinical need three was characterized by multiple rounds of price wars and the market fluctuations had also impacted the used car sector.
Speaker Change: And so we're super store model has become increasingly mature our sales system has enhanced its capability to respond rapidly to market fluctuation.
Speaker Change: Enabling timely adjustments in vehicle pricing, that's sustaining high levels of vehicle turnover.
Speaker Change: From October to December 2023.
Speaker Change: Even though on where inventory levels were only half of what they were in the same period last year, we almost doubled our sales turnover rate.
Speaker Change: Achieving a total retail transaction volume of 3081 unit. This represents a 35% increase quarter over quarter, and a 5% increase year over year.
Speaker Change: He's done pizza that somebody will show little way Sundance.
Speaker Change: Wendy Challenge all right you too that we're gonna be a bumpy sometime by the Josh that way. She on tangentially seems curious how that should how future momentum you've got a question here.
Speaker Change: Yeah, So what I was thinking if you're lucky to have you.
Speaker Change: Well, many who showed slow down that ASP.
Speaker Change: ASP.
Speaker Change: So julien.
Speaker Change: St.
Speaker Change: Countered keytruda against the right.
Speaker Change: Our total retail revenue for the quarter reached $319 2 million RMB.
Speaker Change: 28% increase from $248 9 million RMB in the previous quarter.
Speaker Change: In response to the current economic conditions and market demand, we actively optimizing our inventory structure.
Speaker Change: The heightened competition in the industry over recent quarters my salary reduction in the average selling price for ASP of our retail vehicles, which decreased.
Speaker Change: From 112000 RMB in the same period last year to 104000 R&D this quarter.
Speaker Change: Hi, Piyush.
Speaker Change: People are social phobia friendly to that piece of it showed up right now.
Speaker Change: You should probably be starting up at our sheet that'd be shutdown back recession, Houston, So why bother you.
Speaker Change: You may begin.
Speaker Change: You'll get a woman terabytes from Russia about Chipotle, when we're coming to you Joe you'd put out I think we'll show you here. So yeah I'm trying to equate to what you had done.
Speaker Change: And in terms of wholesale in the third quarter. So our transaction volume reached 1273 units.
Speaker Change: A 20% decrease quarter over quarter, and 35% decrease year over year.
Speaker Change: Wholesale revenue declining to $82 2 million RMB as all of our Super slow model is not operating at full effectiveness.
Speaker Change: We're increasingly focusing on in our retail segment, which are naturally reduces the proportion of our wholesale business.
Speaker Change: So thank you so much and clock sanjida, whether it is some soldier ways to eat they can be.
Yeah argued to the senator he doesn't feel quite a feat from jobs that vishal.
Speaker Change: Considering these factors our total revenues for the quarter, an increase of 15% to 410 in its $110 5 million RMB.
Speaker Change: From $356 1 million RMB in the second quarter.
Speaker Change: <unk> been keeping with Jackie the hungry.
Speaker Change: Boucher Powershell show, Georgia.
Speaker Change: If you're a concourse.
Jackie: Well Miss you shall not too bad, but just to get back about EDI, Shanghai, which sounds like you do a catch up you can't sit back and data.
Jackie: Santa Rita K comes onto your shop, well not counting that.
Jackie: And that leaves you show.
Jackie: It didn't get quite a current issue well then the cheapest shy.
Jackie: Woody yoga equation on that particular dam quite chunky.
We've got you know about yet.
Jackie: Rachel to hit some of the food there shouldnt be a huge future weird I want them ideally Irish out got it.
Speaker Change: Thank you.
Speaker Change: Despite intensifying competition within the industry. This quarter, we successfully maintained a high end vehicle turnover and a healthy inventory structure.
Speaker Change: Of course margin of four 8% down one four percentage points from the previous quarter.
Speaker Change: However, the Cajun emphasized our capacity to respond to market fluctuations has enhanced our pricing adjustments have become more pump.
Speaker Change: Consequently, we anticipate gross margin will recover to about six 5% in the upcoming quarter.
Speaker Change: With the increasing revenue contribution from value added services, such as financing insurance accessories maintenance and repairs were optimistic about achieving significant improvement.
Speaker Change: Gross margin going forward.
Speaker Change: And then the sensor to the Union deal change your by Apache Miami.
Speaker Change: So every time that would be in Guangdong will now introduce your question, yet, but that's all I'm going to say.
Speaker Change: Paul.
Speaker Change: With that he would not hanging on sandwiches, which are treated with you book a function of charter with dealership.
Speaker Change: So that well make that didn't see biogen Akita and Thats what were your backyard, but you hit it account that jumped three times well not sure I agree it wouldn't even talk about your 2017.
Speaker Change: Do you have a shot.
Speaker Change: 92, the important thing physical guarantee which are each of them.
Speaker Change: Right.
Speaker Change: Our total operating expenses for the third quarter were 99.8.
Speaker Change: And then in RMB.
Speaker Change: So we're all we're diligent routine management, we continued to implement stringent cost and expense controls feeling a stable level up from Oh operational expenditures in line with previous quarters.
Speaker Change: Moreover, we have recently completed a new round of organizational.
Final optimization and executed a series of initiatives to further reduce costs and expenses.
Starting in April these adjustments will result in a monthly reduction of fixed expenses by 5 million RMB accumulating quarterly decrease of over 15 million RMB.
Speaker Change: Thank you to attain children, who are the EBITDA accretion rate through cancer by banks right. The junior tendency that he turned over by fishermen.
Speaker Change: Queensland Sunshine.
Speaker Change: Yeah, Chris a good or bad decisions that you are starting to Keytruda since I went back to a 12 month adjusted EBITDA at <unk>.
So I talked about in June.
Speaker Change: I wonder the adjusted EBITDA loss for the quarter was $43 8 million RMB, a decrease of $32 6 million RMB from the adjusted EBITDA loss of $76 4 million RMB in the same period last year narrowing of losses by 43%. It's also represent.
A 5% sequential reduction from the adjusted EBITDA loss.
Speaker Change: $45 9 million RMB in the previous quarter.
Speaker Change: Okay.
Speaker Change: So I wouldn't say that.
Speaker Change: So I'm going to turn out year sentence of my passion agenda, which I don't do well when the C. O D type a tiny amount of pain syndrome condition called well majority of the rooms with Wedbush <unk>.
Awesome.
Speaker Change: John Sorry, short out that our country and send us the data.
John: Yeah, Andrew who don't start out at some time.
John: In addition, we closed an equity financing round in March.
John: Wasting approximately 34 8 million USD.
John: Our CEO Dk has shown his commitments over feature by personally investing in this one as well.
John: These funds will be used to expand our inventory and targeting a three to four fold increase by the end of 2024, which we anticipate will significantly amplify our sales growth trajectory.
So now you're only high orphan status from that contract.
John: And he asks can you essentially said IMAX com.
Got it.
John: Two of our children charterer Keyshawn younger ships bloodshot governments charged for sure.
John: Sure.
Gotcha, well my French onion, but since you asked me to ask them to actually get done once a junkie beta.
John: With our Charlotte actually kept banking to the junket.
John: There is still substantial potential for increased sales and profitability I'd already existing superstores, we have already achieved the EBITDA profitability for our superstores as of January 2024.
John: The improvement in vehicle internal rate efficiency and enhance the margin profiles and effective implementation of companywide cost reduction.
John: Inefficiency things will contribute to improved financial performance going forward, we're confident in achieving monthly EBITDA breakeven by September 2024, and the pain companywide EBITDA profitability in the December quarter of 2024.
John: But he's got you got you.
John: Alright.
Speaker Change: You can get a seat.
Speaker Change: Yeah sure so I'm sure they're trying to ensure that.
Speaker Change: Well, we're going to have agents that you all called out shall show product shelf easier, Jonathan So shout out and wait essentially back he told a shout out to go back so I'm sure that thanks.
Speaker Change: Body weight evolution about Philadelphia, San Francisco again, we shot.
Speaker Change: Now moving on to the guidance for the fourth quarter January through March which included the Chinese new year holiday.
Speaker Change: Traditionally in off season for the used car industry. Nevertheless, we're maintaining a high level.
Speaker Change: I'll say it was turnover rate efficiency and we forecast a total retail transaction volume of approximately 3100 units and hotel transaction volume of about 99 900 units.
We expect our total revenues to be between 300 million to 320 million RMB, which of course margin rebounding to about six 5%.
Speaker Change: You're trying to show on the kidney cancer array of product offerings.
Speaker Change: To sell material actually went up again.
Speaker Change: And that concludes our prepared remarks today, operator, we're now ready for questions.
Yeah.
Speaker Change: Sure.
Speaker Change: We will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
Speaker Change: If youre using a speakerphone please pick up the handset before pressing the keys withdraw.
Speaker Change: Withdraw your question. Please press Star then two.
Speaker Change: When asking a question in Chinese please restate your question in English immediately afterwards that it can be used as everyone on the call.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: Okay.
Speaker Change: And our first question today comes from the line of state with TD Securities. Please go ahead.
TD Securities: Uh huh.
TD Securities: I'm, taking a woman.
TD Securities: Hey, Craig it up.
TD Securities: Okay.
Speaker Change: And people I want to thank <unk>.
Don Cleveland: Thank you Don.
Don Cleveland: Okay.
Gotcha.
Don Cleveland: Yeah.
Don Cleveland: Sometimes that can actually be trusted.
Don Cleveland: You too.
Don Cleveland: Yeah.
Don Cleveland: In the first six to eight months.
Don Cleveland: For the Chinese car market as well, okay, and studying and intense price.
Don Cleveland: What can you pull that back.
Don Cleveland: That includes the impact from you what kind of price war.
Speaker Change: Okay, Okay, and okay listen thank you.
Speaker Change: Hello, definitely well reliably logical Lindsay Hall.
Speaker Change: She holds an earning our then young history, you'll hold your boiler <unk> seem to have done so that you don't watch.
Speaker Change: But you don't seem to have gone to a whole voucher comes out with Alexandria now they are a blend that shows encouraging job, Belgium using outside Brazil.
Speaker Change: And you know my team's gonna tissue D G out for the year, which means yet.
DK: Hi, This is dk and I'll I'll address that question the price reduction trend in the new car market that began in 2023 have certainly considered it a twofold impact on used car sector. Initially we observed a depreciation in the value of used car models in parallel to the new car price drop.
This was followed by a stagnation of be effective at used cars, resulting in inventory depreciation which has definitely impacted the used car business.
DK: So I think they'll go out and do you think that means finding shelf will be quiet Philadelphia Houston Vishal.
DK: Think that do you mean, the R&R opinions I know yeah. So it should all show you and you listen.
DK: So the donut hole.
DK: You seem to show up in Chicago Boardroom, that's useful politically adult ritual and yet continue to argue that the IV Dunbar Casher, our median ludology timberline, Stephen choice and they seem to be doing that now.
DK: So you said that it's easily July continued into April that jumped out there using <unk> already on opinion confidential.
DK: And through all these.
DK: Michael dealerships armed with the most comprehensive market insights.
DK: Agility to respond promptly and good capacity to maintaining a high sales turnover has demonstrated the least impact and in navigating through two waves of new car price reductions.
DK: In the period of March.
And in October through December of 2023, we have systematically strengthen where appropriate and strategies to effectively manage market volatility.
DK: Since the <unk> price reductions in late February this year, we have cataloged price changes for nearly a thousand new car models.
DK: Operational data indicates that the ramifications of this year's price reductions on Houston houses substantially diminished compared to those experienced in 2023.
DK: You'll remember in should also be able to tease out.
DK: You can do something.
DK: You talked me I'm not sure it seemed to have jumped yeah, it's usually like a woman Dunkin' locals and Jacob Jim Paul suddenly and you need a change in article 12, PV Joshua now, let me turn to the trading show you. Some notion you engage with them.
DK: And specifically we pro form.
DK: Very well in two particular areas are first the most profound the impact of the new car price reductions is felt in the segment of low mileage used cars. Our current inventory structure is actually quite healthy and well curated featuring a relatively small portion of vehicles under three years old well primarily targeting both.
DK: Agents between three and 10 years.
DK: You can find me a woman the shows will show what are you seeing them gall unloading dock utilization of hunting for the machine to machine.
DK: Doug look beyond <unk>, what do you think it would finance out with intelligent.
DK: You should not put on the shelf a boutique in a sudden hany.
DK: So you got to do with Genco, let's go back asking thoughtful in Belgium, Bulgaria.
Secondly, we are maintaining our self sufficiency and exceptionally high level only in house the pricing system is fine tuned to automatically monitoring market trends and shrink.
DK: Timely data collection on new car prices electricians and rapid adjustments to our pricing.
DK: With an overall vehicle turnover of less than 30 days, we have substantially exceeded the industry more effectively mitigating the potential inventory depletion as a result of the price decline.
DK: Where are you seeing closer to your building.
DK: You'll hear that from the Hollywood Casino.
So now.
DK: The team, even though about that.
DK: Our insulin pump seemed to toggle you believe can be played out about equal impact not all hunky, which will leave you with something you said that the G block until you need them in the high yield.
DK: Hum.
DK: Oh, Yeah, Julio Quintana idea that <unk> seen.
DK: Furthermore, given the the new cars are.
DK: Our standardized product with a transparent manufacturing and compliance costs.
DK: Considering that the nonprofit margins for many automakers not hovered below 5% there is a limit to that that of new car price reduction weeks that the market will soon find a new balance which should lead to stabilization.
DK: The car market.
And relative to our current position.
Significant opportunity to improve our profitability per vehicle.
DK: Market conditions and level out we foresee a smooth progression through stronger performance levels.
Speaker Change: You sounded a little weight oxygen.
And that's our answer to the first question operator, let's move on.
Speaker Change: The next question comes from the line of Gary <unk> with <unk>. Please go ahead.
Hi, Yeah good evening.
Gary: We've seen that the Chinese government is currently promoting policies that encourage vehicle trade ins for newer models did.
Gary: Could you. Please discuss the specific impact of this policy in the used car industry not in your business operations.
Gary: Yeah.
Speaker Change: Now one thing you said Halloween sell than without it.
Speaker Change: And so you don't I, probably won't be able to do.
Speaker Change: So he can win as well as on the whole thing.
Speaker Change: Yes.
Speaker Change: Judy you can shop.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: It's you don't have any of the financials.
Speaker Change: She is your field Russo did you will conduct Teatro <unk> Hollywood funding do you need to do that yet Arnold puts huge presuming GA <unk> sulfate into more profitable.
Speaker Change: Hi, this is the decay and what would drive that question yeah. The National government has indeed emphasize development of the alcohol industry recently, we have observed about automobile.
Speaker Change: Send data to become the primary economic pillar overtaking real estate.
Speaker Change: The used car market plays a pivotal role in the entire lifecycle of the vehicle and is crucial in driving automotive consumption.
Speaker Change: Okay.
Speaker Change: Thank you you will find it in the kitchen.
Speaker Change: And as usual the beauty parlor, you'll gel halston <unk> will answer the call from.
Speaker Change: <unk> said she is.
Speaker Change: In addition, wallet you'll join me in a prudently.
Speaker Change: Regarding the trade in subsidy policy you mentioned this.
Speaker Change: This initiative encourages customers to upgrade their vehicles more frequently.
Speaker Change: It's turning has brought a surge of well valued models into the used car market enhancing the supply and positively impacting national used car transaction volumes.
Speaker Change: Okay.
Speaker Change: You can't blow age of La <unk>.
Speaker Change: <unk> European Cymbalta and <unk>.
Speaker Change: You might have so that each of them for someone who may eat who shortly cheetos, each one and done or do you find that you told you. Many times, we'll wait till towards the one that all of these should all hygiene easily a duopoly equaled them. So if we can put on a woman Trillium troubleshoot. All you had to use them I told you might have.
Speaker Change: Transalta shuffled around holiday season.
Speaker Change: As a leader in China.
Speaker Change: Used car industry Houston is at the forefront of supporting and facilitating the implementation of petroleum policy.
Speaker Change: We have partnered with local governments, where our superstores operator to develop practical expedient programs.
Speaker Change: We're super scores acts as the main platform with its vehicle exchanges hosting a range of trading you bet.
Speaker Change: This strategy and not only broadens.
Speaker Change: Our vehicle sourcing channels, but also customer traffic at our superstore, which in turn further enhances.
Speaker Change: And with that with conversion opportunities.
Speaker Change: But what she's a hung yet youre going to see you guys considering floor, while Ohio and builder Youll Moshe.
Speaker Change: <unk> largest show who are leaving Sangamo kidney.
Speaker Change: We view the trade in policy in China's auto industry has a long term initiative.
Speaker Change: There are numerous business models, yet to be explored and were optimistic about unlocking further potential for revenue and profit growth.
Speaker Change: You talked a little bit Archie.
Archie: And that'll be our answer to the second question.
Archie: Yeah.
Speaker Change: This concludes our question and answer session I would like to turn conference back over to management for any closing remarks.
Speaker Change: Alright. Thank you all again for joining today's call and for your continued support in Houston as well, we look forward to speaking with you again very soon in the future. Thank you.
Speaker Change: Okay Bye bye.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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