Q1 2025 Uxin Ltd Earnings Call

Ladies and gentlemen, thank you for standing by and welcome to the Uxin Ltd. 4th Quarter and Fiscal Year 2024 Earnings Conference Call.

Operator: to the Uxin Limited 4th Quarter and Fiscal Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Operator: to the Ushing Limited 4th quarter in fiscal year 2024 earnings conference call. At this time, all participants are in a listen-only mode. After management prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded.

Speaker Change: At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session.

Operator: If you have any objections, you may disconnect at this time.

Speaker Change: Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to introduce your host for today's call, Mr. Jack Wang. Please go ahead, Jack.

Operator: I would now like to introduce your host for today's call, Mr. Jack Wayne. Please go ahead, Jack. All right.

Operator: After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to introduce your host for today's call, Mr. Jack Wang. Please go ahead, Jack.

Jack Wang: Alright, thank you, operator. Hello, everyone. Welcome to Uxin's earnings conference call for the fourth quarter and full fiscal year ended March 31st, 2024. On the call with me today are DK, our founder and CEO, as well as Jiang Lin, our CFO. DK will review business operations and company highlights, followed by John, who will discuss financials and guidance. They will both be available to answer questions during the Q&A session that follows.

Jack Wayne: Thank you, operator. Hello, everyone.

Jack Wayne: Welcome to Ushing's earnings conference call for the 4th quarter and 4th fiscal year ended March 31st, 2024.

Alright: Alright, thank you operator. Hello everyone, welcome to Uxin's earnings conference call for the fourth quarter and full fiscal year ended March 31st, 2024. On the call with me today we have DK, our founder and CEO , as well as Zhang Lin, our CFO .

Jack Wayne: On the call with me today, we have DK, our founder and CEO, as well as Zhanglin, our CFO. DK will review business operations and company highlights, followed by Zhang, who will discuss financials and guidance. They will both be available to answer questions during the Q&A session that follows.

Speaker Change: DK will review business operations and company highlights followed by John who will discuss financials and guidance

Speaker Change: They will both be available to answer questions during the Q&A session that follows.

Jack Wayne: Before we proceed, I would like 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. For detailed discussions of the risks and uncertainties, please refer to our findings with the SEC.

Jack Wang: Before we proceed, I would like to remind you that this call may contain forward-looking statements that are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our filings with the SEC. And now, with that, I will turn the call over to our CEO, DK. Please go ahead, sir.

Speaker Change: Before we proceed, I would like 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 our filings with the SEC. And now with that, I will turn the call over to our CEO , DK. Please go ahead, sir.

DK: And now, with that, I will turn the call over to our CEO, DK. Please go ahead, sir. Hello, everyone. Thank you for your continued interest and support. It's a pleasure to welcome you to our earnings call today and to better communicate with our domestic and international investors. I will be discussing our performance over the last fiscal year as well as providing insights into our prospects in both Chinese and English. The current economic landscape in China is entering a new phase of development, bringing numerous challenges to various industries, including the use-story sector. Notably, the competitive pricing strategies initiated by carbon manufacturers early last year have severely disrupted the price structure of the used car market, leading to a substantial decline in profitability across the industry.

DK: Thank you, host. Hello everyone, thank you for your long-term attention and support. I am very happy to meet with all the investors again through the telephone conference. In order to facilitate communication with domestic and foreign investors, I will share with you the progress of our business over the past few years in Chinese and English, as well as our thoughts and outlooks for the future.

Speaker Change: 谢谢主持人

DK: Hello everyone, thank you all for your long-term attention and support. I am very pleased to meet with all the investors once again through this conference call. To facilitate communication with both domestic and international investors, I will share the business progress of the past fiscal year and our thoughts and outlook for the future in both Chinese and English.

DK: Thank you for your continued interest and support. It's a pleasure to welcome you to our earnest call today. And to better communicate with our domestic and international investors, I will be discussing our performance over the last fiscal year, as well as providing insights into our prospects in both Chinese and English. Currently, China's economic situation is at a new stage of development. Like many other industries, the second-hand car industry is also facing many challenges.

Speaker Change: Hello everyone. Thank you for your continued interest and support. It's a pleasure to welcome you to our earnings call today.

Speaker Change: And to better communicate with our domestic and international investors, I will be discussing our performance over the last fiscal year, as well as providing insights into our prospects in both Chinese and English.

Speaker Change: China's current economic situation is in a new stage of development, and like many other industries, the second-hand car industry is also facing numerous challenges.

DK: Since the beginning of last year, the price competition has been getting more and more intense. The price system of the second-hand car market has caused major disruption, which has led to a significant decrease in the operating level of the entire industry. The current economic landscape in China is entering a new phase of development, bringing numerous challenges to various industries, including the used car sector. Notably, the competitive pricing strategies initiated by car manufacturers early last year have severely disrupted the price structure of the used car market, leading to a substantial decline in profitability across the industry.

Speaker Change: Especially since the beginning of last year, the increasingly intense price competition among vehicle manufacturers has caused significant disruption to the pricing system of the used car market, leading to a substantial decline in the profitability of the entire industry.

Speaker Change: The current economic landscape in China is entering a new phase of development, bringing numerous challenges to various industries, including the used car sector.

Speaker Change: Notably, the competitive pricing strategies initiated by car manufacturers early last year have severely disrupted the price structure of the used car market, leading to a substantial decline in profitability across the industry.

DK: But we are still happy to see that despite the challenge and the opportunity, in the past year, the Chinese dollar market is still on the track of rapidly increasing scale. In 2023, the number of second-hand car transactions in China exceeded 18 million, which increased by nearly 15%. The government has continuously introduced many good policies to encourage the development of the second-hand car industry and has also vigorously promoted the consumption growth of the second-hand car industry by introducing car-saving subsidies.

Speaker Change: However, we are still pleased to see that amidst challenges come opportunities. Over the past year, China's second-hand market has remained on a trajectory of rapid growth.

Speaker Change: In 2023, the national second-hand car transaction volume exceeded 18 million units, with a year-on-year growth of nearly 15%. The government has continuously introduced several favorable policies to encourage the development of the second-hand car industry and has also launched substantial subsidies for car trade-ins, driving the growth of consumption in the second-hand car industry.

DK: In the increasingly complex and variable financial environment, industry resources began to gather at the top second-hand car dealerships. Only companies that do better in terms of scale, brand, and efficiency can get long-term sustainable development and profitability opportunities. However, we are pleased to see opportunities amidst these challenges.

Speaker Change: In an increasingly complex and volatile business environment, industry resources are beginning to concentrate towards leading used car dealers. Only companies that excel in scale, brand, and efficiency can achieve long-term sustainable development and profitability opportunities.

DK: However, we are pleased to see opportunities amidst these challenges. Over the past year, China's used car market has continued its rapid growth trajectory, with national used car transactions surpassing 18 million units in 2023, reflecting a near 15% year-over-year increase. The government's series of favorable policies to encourage the development of the used car industry, coupled with substantial incentives for trading in old cars for new ones, have spurred consumption growth in the sector. China's increasingly complex and dynamic operating environment resources are beginning to concentrate towards leading used car dealers, providing long-term sustainable growth and profitability opportunities for companies that excel in scale, branding, and efficiency.

Speaker Change: However, we are pleased to see opportunities amidst these challenges.

DK: Over the past year, China's used car market has continued its rapid growth trajectory, with national used car transactions surpassing 18 million units in 2023, reflecting a near 15% year-over-year increase. The government's series of favorable policies to encourage the development of the used car industry, coupled with substantial incentives for trading in old cars for new ones, have spurred consumption growth in the sector. In an increasingly complex and dynamic operating environment, resources are beginning to concentrate on leading used car dealers and providing long-term sustainable growth and profitability opportunities for companies that excel in scale, branding, and efficiency. The Uxin second-hand car supermarket is a unique business model in the Chinese second-hand car industry. It shows strong competitiveness in all areas.

Speaker Change: Over the past year, China's used car market has continued its rapid growth trajectory, with national used car transactions surpassing 18 million units in 2023, reflecting a near 15% year-over-year increase.

Speaker Change: The government's series of favorable policies to encourage the development of the used car industry, coupled with substantial incentives for trading in old cars for new ones, have spurred consumption growth in the sector.

Speaker Change: In an increasingly complex and dynamic operating environment, resources are beginning to concentrate towards leading used car dealers, providing long-term sustainable growth and profitability opportunities for companies that excel in scale, branding, and efficiency.

Speaker Change: Priority Used Car Supermarket, as a unique business model in China's used car industry, demonstrates strong competitiveness in all aspects. Its advantages are becoming increasingly evident in the cities where the supermarket is located.

DK: The advantage of the city where the market is is becoming more and more obvious. In the four quarters of the year 2020, our retail sales continued to grow. The total retail sales for the year were 10,179 units.

Speaker Change: In all four quarters of the 2024 fiscal year, our retail sales maintained continuous growth, with total retail sales for the entire fiscal year amounting to 10,179 units.

DK: From January to March, 2024, despite the traditional seasonal season of the Spring Festival, we still achieved 3,124 retail sales, which increased by 38% compared to the same period last year. Uxin Supermarket has become the No. 1 second-hand car retailer in the region.

Speaker Change: From January to March 2024, even during the traditional off-season of the Spring Festival, we still achieved retail sales of 3,124 units, a 38% increase compared to the same period last year. Youxing Superstore has already become the number one second-hand car brand recognized by consumers in the region.

DK: Our client recommends NPS to maintain the highest level in the industry for 10 consecutive quarters at around 60 points. The market share in the region has reached 100%, and it is continuing to grow. Uxin's overall vehicle inventory cycle is around 30 days. The standardized, systematic, and digital operating system has been basically matured in the past year.

Speaker Change: The NPS of customer competitive promotion items has maintained the highest industry level of around 60 points for 10 consecutive quarters.

Speaker Change: The regional market share has reached over 100% and is continuously growing. The overall vehicle inventory turnover days are around 30 days. The standardized, procedural, and digitalized operation system has basically matured over the past year. The operational capability and business efficiency far exceed the industry average level.

DK: The operating capacity and operating efficiency are far above the average in the industry. Uxin's unique business model, characterized by our flagship used car superstores, has demonstrated strong competitive advantages across various dimensions, becoming increasingly prominent in the cities where our superstores are located. In the fourth quarter of fiscal year 2024, our retail sales continued to grow with a total of 10,179 units sold throughout the year. From January to March 2024, even during the traditional slow season of the Spring Festival, we achieved retail sales of 3,124 units, a 38% increase compared to the same period last year.

DK: Yu Xin's unique business model and characterized the buying of our flagship used car superstores has demonstrated strong competitive advantages across various dimensions, becoming increasingly prominent in the cities where our superstores are located. In the fourth quarter of fiscal year 2024, our retail sales continued its growth with a total of 10,179 units sold throughout the year. From January to March 2024, even during the traditional slow season of the Spring Festival, we achieved the retail sales of 3,124 units, a 38% increase compared to the same period last year. Our superstores have become the leading brand in their respective regions, with a net promoter score or NPS consistently around 60 points for 10 consecutive quarters, the highest level in the industry and a regional market share of 10% and growing.

Yuxin: Uxin's unique business model, characterized by our flagship used car superstores, has demonstrated strong competitive advantages across various dimensions, becoming increasingly prominent in the cities where our superstores are located.

Yuxin: In the fourth quarter of fiscal year 2024, our retail sales continued to grow, with a total of 10,179 units sold throughout the year.

Yuxin: From January to March 2024, even during the traditional slow season of the Spring Festival, we achieved retail sales of 3124 units.

DK: Our super stores have become the leading brands in their respective regions, with a Net Promoter Score, or NPS, consistently around 60 points for 10 consecutive quarters, the highest level in the industry, and a regional market share of 10% and growing.

Yuxin: a 38% increase compared to the same period last year.

Yuxin: Our superstores have become the leading brand in their respective regions, with a Net Promoter Score, or NPS, consistently around 60 points for 10 consecutive quarters, the highest level in the industry, and a regional market share of 10% and growing.

DK: Our overall vehicle inventory turnover days are around 30 days, and our standardized, streamlined, and digitized operating system has matured over the past year, significantly surpassing the industry average in operational capacity and efficiency. A reflecting on the past year, we have made substantial progress in numerous areas of our business, positioning us well for sustainable profitability.

DK: Our overall vehicle inventory turnover days are around 30 days, and our standardized, streamlined, and digitized operating system has matured over the past year, significantly surpassing the industry average in operational capacity and efficiency. Looking back at the past year, we have made positive progress in many aspects of our business. We are well-prepared for the scale of profitability. I would like to share with you three important achievements.

Yuxin: Our overall vehicle inventory turnover days are around 30 days, and our standardized, streamlined and digitized operating system has matured over the past year, significantly surpassing the industry average in operational capacity and efficiency.

Speaker Change: Over the past year, we have made positive progress in many aspects of our business. We are well-prepared for the scale of profitability. I would like to share three important results with you.

DK: Reflecting on the past year, we have made substantial progress in numerous areas of our business, positioning us well for scalable profitability, and I will highlight three key achievements. First of all, the brand and sales power have a positive effect on the flywheel effect, and sales efficiency has significantly improved. We have improved our sales efficiency by connecting good products and services to our customers, and with the accumulation of customers and reputation, we have formed a stronger network effect in the regional market, which has further promoted sales transformation.

Speaker Change: Reflecting on the past year, we have made substantial progress in numerous areas of our business, positioning us well for scalable profitability, and I will highlight three key achievements.

DK: And I will highlight three key achievements. First, our branding and sales capabilities have generated a positive flywheel effect, further enhancing sales efficiency. By connecting with customers through superior products and services, we have built a stronger network effect in regional markets, as customers' trust and reputation has grown. Further boosting sales conversion rates. As a result, our in-store customer conversion rate has reached approximately 40%. Despite intense industry competition, our retail vehicle inventory turnover rate has improved by over 60% compared to the previous fiscal year. Allowing us to achieve higher retail sales with the same inventory size. As a result, our in-store customer conversion rate has reached approximately 40% compared to the previous fiscal year.

Speaker Change: First, brand power and sales power generate a positive flywheel effect.

Speaker Change: Sales efficiency has significantly improved. We connect with customers through good products and services. As we accumulate customers and reputation, a stronger network effect has formed in the regional market, further promoting sales conversion. The transaction rate of customers visiting the store is about 40%. Although the industry competition is fierce, our retail vehicle turnover is...

DK: The return on investment rate of our customers is about 40%. Although the industry is competitive, our retail vehicles are turning around. 60%, can achieve more retail sales under the same storage scale. First, our branding and sales capabilities have generated a positive flywheel effect, further enhancing sales efficiency. By connecting with customers through superior products and services, we have built a stronger network effect in regional markets as customers' trust and reputation have grown, further boosting sales conversion rates. As a result, our in-store customer conversion rate has reached approximately 40%.

Speaker Change: The speed has increased by more than 60% compared to the same period last year. With the same inventory scale, more retail sales can be achieved.

Speaker Change: First, our branding and sales capabilities have generated a positive flywheel effect, further enhancing sales efficiency.

Speaker Change: By connecting with customers through superior products and services, we have built a stronger network effect in regional markets as customers' trust and reputation has grown.

Speaker Change: Further boosting sales conversion rates.

Speaker Change: As a result, our in-store customer conversion rate has reached approximately 40%.

DK: Despite intense industry competition, our retail vehicle inventory turnover rate has improved by over 60% compared to the previous fiscal year, allowing us to achieve higher retail sales with the same inventory size. Uxin's 10 years of industry experience in digitalization have greatly contributed to sales growth. Our AI pricing model dynamically monitors the data of 600,000 second-hand cars and forms a competitive model in many dimensions, from car models, car scales, car frames, and mileage, and quickly generates sales prices and timely adjustments in combination with customer view records and offline market prices, ensuring that Uxin's second-hand cars maintain a strong competitive level in the market.

Speaker Change: Despite intense industry competition, our retail vehicle inventory turnover rate has improved by over 60% compared to the previous fiscal year, allowing us to achieve higher retail sales with the same inventory size.

Speaker Change: Prioritize the digital capabilities built on over ten years of industry experience

Speaker Change: It has a great negative impact on the improvement of sales force. Our AI pricing model dynamically monitors 600,000 used car data across the entire network.

Speaker Change: Form a competitiveness model from multiple dimensions such as car model, age, condition, and mileage. Combine this with customer viewing records and offline test drive situations to quickly generate purchase and sale prices and adjust them in a timely manner. Ensure that the priority vehicles for sale maintain a strong competitive level in the market.

DK: In the new car price trend, any car model that has a price drop, our pricing system will respond quickly to the same car model and vehicle in the inventory to adjust the price. The faster the price adjustment, the faster the vehicle sales. The less affected by the new car price, you can enter the next round as soon as possible. In the normal sales cycle, Uxin's back and long industry experience has greatly empowered our sales capabilities through digitization. Our AI pricing model dynamically monitors 600,000 used car data points across the Internet, creating competitive models based on factors such as the car's model, age, condition, and mileage.

Speaker Change: In the wave of new car price reductions, whenever any model's price drops, our pricing system will respond quickly to adjust the prices of the same models and vehicles in our inventory. The more timely the price adjustment, the faster the vehicle sales, and the less impact from the new car price reductions, allowing us to quickly enter the next normal sales cycle.

Speaker Change: Uxin's back and long industry experience has greatly empowered our sales capabilities through digitization.

DK: The AI pricing model dynamically monitors 600,000 of used card data points across the Internet, creating competitive models based on factors such as the CARS model, age, condition, and mileage. This system combined with customers' viewing records and offline price reps can generate purchase in the sale prices and adjust them promptly to ensure users' vehicles remain highly competitive in the market. During the new car price cuts, our pricing system responded quickly to adjust the acquisition and selling prices of similar models to accelerate the sales of impacted inventory. By adjusting our prices faster, we can accelerate the vehicle sales, mitigate the effects of new car price reduction, and transition into the next regular sales cycle sooner.

Speaker Change: Our AI pricing model dynamically monitors 600,000 of used car data points across the Internet, creating competitive models based on factors such as the car's model, age, condition, and mileage.

DK: This system, combined with customers' viewing records and offline timestamps, can generate purchase and sale prices and adjust them promptly to ensure Uxin's vehicles remain highly competitive in the market. During the recent new car price cut, our pricing system responded quickly to adjust the acquisition and selling prices of similar models to accelerate the sales of impacted inventory. By adjusting our prices faster, we can accelerate vehicle sales, mitigate the effects of new car price reductions, and transition into the next regular sales cycle sooner.

Speaker Change: This system, combined with customers' viewing records and offline time-stripes, can generate purchase and sale prices and adjust them promptly to ensure Uxin's vehicles remain highly competitive in the market.

Speaker Change: During the new car price cut, our pricing system responded quickly to adjust the acquisition and selling prices of similar models to accelerate the sales of impacted inventory.

Speaker Change: By adjusting our prices faster, we can accelerate vehicle sales, mitigate the effects of new car price reduction, and transition into the next regular sales cycle sooner.

DK: Second, while the sales volume is increasing, the mileage of the bike is also increasing. Our mileage has increased from 1.2% in 2023 to 5.9% in 2024. The second-hand car industry pattern is to reduce the price as the storage time lengthens.

DK: In-store customer conversion rate has reached approximately 20% compared to the previous fiscal year.

Speaker Change: We are.

Speaker Change: While increasing sales scale, the gross profit per vehicle is also rising significantly. Our gross profit margin increased from 1.2% in fiscal year 2023 to 5.9% in fiscal year 2024.

Speaker Change: The industry rule for used cars is that prices decrease as inventory time increases. Therefore, by accelerating our sales speed, we naturally enhance the income level from the price difference of the vehicles.

DK: As a result, our speed of sales is accelerated, which naturally improves the income level of the vehicle price difference. The second, while increasing the sales volume, we have also boosted our gross profit per vehicle. Our gross profit margin has risen from 1.2% in FY2023 to 5.9% in FY2024. In the used car industry, prices typically decrease as inventory ages.

DK: The second, while increasing the self-volume, we have also boosted our robust profit per vehicle. Our robust profit margin has risen from 1.2% in fiscal year 2023 to 5.9% in fiscal year 2024. In the use of our industry, prices typically decrease at human tree ages. Therefore, by accelerating our sales turnover, we have naturally enhanced our robust profit per vehicle. Meanwhile, leveraging our one-stop shopping experience at offline super-scores and recommendation factories, we have continuously expanded our high margin value-added services. These include the financing services, insurance, extended warranties, premium accessories, and maintenance. Over the past year, the penetration rate of these value-added services has rapidly increased, boosting our robust profit margin.

Speaker Change: The second, while increasing the sales volume, we have also boosted our gross profit per vehicle. Our gross profit margin has risen from 1.2% in FY2023 to 5.9% in FY2024.

Speaker Change: In the used car industry, prices typically decrease as inventory ages. Therefore, by accelerating our sales turnover, we have naturally enhanced our gross profit per vehicle.

DK: Therefore, by accelerating our sales turnover, we have naturally enhanced our gross profit per vehicle. At the same time, we rely on the on-site large-scale vendors and ready-to-go factories We continue to expand high-profit remote services to provide consumers with high-value financial insurance, insurance, fine products, maintenance and other services In the past year, the penetration rate of these increased services has increased rapidly and led to a significant increase in gross profit, Meanwhile, leveraging our one-stop shopping experience at offline super stores and reconditioning factories, we have continuously expanded our high-margin value-added services.

Speaker Change: Relying on offline large stores and one-stop car purchase scenarios at reconditioning factories, we continuously expand high-margin derivative services, providing consumers with high-value financial insurance, extended warranties, premium maintenance, and other services. Over the past year, the penetration rate of these value-added services has been rapidly increasing, significantly boosting the gross profit margin.

Speaker Change: Meanwhile, leveraging our one-stop shopping experience at offline superstores and reconditioning factories, we have continuously expanded our high-margin value-added services.

DK: These include financing services, insurance, extended warranties, premium accessories, and maintenance. Over the past year, the penetration rate of these value-added services has rapidly increased, boosting our gross profit margin. On the other hand, the cost of preparing the bike is significantly reduced. The transparent factory in Uxin has been built.

Speaker Change: These include financing services, insurance, extended warranties, premium accessories, and maintenance. Over the past year, the penetration rate of these value-added services has rapidly increased, boosting our gross product margin.

DK: In the next step, we have increased our robust profit margin in fiscal year 2021 to 3 days.

Speaker Change: On the other hand, the preparation cost per bike has significantly decreased.

DK: It takes an average of only three days to prepare the vehicle from the warehouse to the sale, so it can enter the sales phase faster. The cost of preparing the bike in 2024 is 5% less than the previous year because of the application of scale-up accessory purchase, smart maintenance, and 3D printing technology. Additionally, our per-vehicle reconditioning cost has significantly decreased.

Speaker Change: Uxin's transparent factory has been completed. It takes an average of only three days for vehicles to go from warehousing and preparation to being listed for sale.

Speaker Change: By entering the sales phase more quickly through bulk procurement of parts, smart repairs, and the application of 3D printing technology, the per-bike preparation cost for the 2024 fiscal year has been reduced by 50% compared to the previous fiscal year.

Speaker Change: Additionally, our per vehicle reconditioning costs have significantly decreased. Uxin's transparent factory is now fully operational, with vehicles taking an average of only three days to move from warehousing to sales, allowing for faster sales entry.

DK: Uxin's transparent factory is now fully operational, with vehicles taking an average of only three days to move from warehousing to sales, allowing for faster sales entry. Through bulk procurement of parts, smart repairs, and the application of 3D printing technology, our reconditioning cost per vehicle in the fiscal year of 2024 has decreased by 50% compared to the previous fiscal year. Third, continue to reduce costs and increase efficiency, and optimize operating costs. EBITDA, which was adjusted in 2024, is 1.76 billion RMB, which is nearly 40% lower than in 2023. This year, we have implemented a series of cost-efficiency measures to complete a new round of structural adjustments and organizational optimization to adapt to the business development of the wheat field.

Speaker Change: Through bulk procurement of parts, smart repairs, and the application of 3D printing technology, our reconditioning cost per vehicle in the fiscal year 2024 has decreased by 50% compared to the previous fiscal year.

Speaker Change: Third, continue to reduce costs and increase efficiency, and optimize operating expenses. The adjusted EBITDA for fiscal year 2024 is negative 176 million RMB, which is a nearly 40% reduction in losses compared to fiscal year 2023.

Speaker Change: Since the beginning of this year, we have implemented a series of cost reduction and efficiency enhancement measures. To adapt to the business development of the marketplace, we have completed a new round of structural adjustments and organizational optimization. It is expected that the fixed cost expenses for the 2025 fiscal year will be further reduced compared to the 2024 fiscal year, driving the company to achieve overall profitability more quickly.

DK: It is expected that the fixed cost of 2025 financial year spending will be reduced by more than RMB1 compared to 2024 financial year spending to promote a faster realization of the overall EBITDA at the company level. Third, we have continued to reduce costs, improve efficiency, and optimize our operating expenses. Adjusted EBITDA for the fiscal year of 2024 was 176 million RMB, representing a nearly 40% reduction in losses compared to the fiscal year of 2023.

Speaker Change: Third, we have continued to reduce costs, improve efficiency, and optimize our operating expenses.

Speaker Change: adjusted EBITDA for the fiscal year of 2024 with a loss of 176 million RMB representing a nearly 40% reduction in losses compared to the fiscal year of 2023

DK: This year, we implemented a series of cost reduction and efficiency enhancement measures. Looking forward, we expect fixed costs and expenses in the fiscal year of 2025 to be reduced by over 100 million RMB compared to the fiscal year 2024, driving faster overall adjusted EBITDA profitability at the company level. ,, 50%50%,,, To take marketing as an example, we have developed a highly cost-effective customer acquisition strategy, reducing advertising and promotion expenses by more than 50% compared to last year. Leveraging our large venues, we actively explored community-integrated marketing strategies by organizing events such as sports meetings, anime conventions, job fairs, and vehicle test drives, etc.

Speaker Change: And this year we implemented a series of cost reduction and efficiency enhancement measures.

Speaker Change: Looking forward, we expect fixed costs and expenses in the fiscal year of 2025 to be reduced by over 100 million RMB compared to the fiscal year of 2024, driving faster overall adjusted EBITDA profitability at the company level.

DK: In the history of the industry, we have developed a high-end, high-end, low-end, high-end, high-end, low-end, high-end, high-end, high-end, low-end, high-end, high-end, low-end, high-end, high-end, high-end, low-end, high-end, high-end, high-end, high-end, low-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high-end, high We've increased our regional market exposure, generating a substantial, organic traffic, and significantly lowering customer acquisition costs.

Speaker Change: The above statements do not represent the position of this station.

Speaker Change: Efficient and low-cost acquisition methods

Speaker Change: Overall market expenses have decreased by more than 50% compared to last year. We have leveraged the advantage of large venues to actively explore marketing methods that integrate with the local community. We organized various events in the marketplace, such as sports meets, anime exhibitions, job fairs, and vehicle test drives. These activities have increased our exposure in the district and province, bringing in a large amount of organic traffic and significantly reducing acquisition costs.

Speaker Change: To take marketing as an example, we have developed a highly cost-effective customer acquisition strategy, reducing advertising and promotion expenses by more than 60% compared to last year.

Speaker Change: Leveraging our large venues, we actively explore the community-integrated marketing strategies by organizing events.

Speaker Change: such as sport meetings, anime conventions, job fairs, and vehicle test drives, etc. These activities increased our regional market exposure, generating substantial organic traffic, and significantly lowering customer acquisition costs.

DK: These activities increased our regional market exposure, generating substantial organic traffic, and significantly lowering customer acquisition costs. In the past year, the model of Uxin's off-line large-scale vendors has run into problems. The company is in the process of rapid development. Looking ahead to the new year, we will complete three main tasks according to the current development plan. In the past year, our offline superstore model has proven successful, placing Yuxin on a rapid growth trajectory. Looking ahead to the new fiscal year, we have set three primary business objectives aligning with our current development plan. First, they must continue to boost sales and make a big comeback.

Speaker Change: In the past year, the model of prioritizing offline hypermarkets has proven successful. The company is on a fast development track. Looking forward to the new year, following the current development plan, we will achieve three main business goals.

DK: In the past year, our offline superstore model has proven successful. Placing use on a rapid growth trajectory.

Speaker Change: In the past year, our offline superstore model has proven successful, placing Yuxin on a rapid growth trajectory. Looking ahead to the new fiscal year, we have set three primary business objectives, aligning with our current development plan.

DK: Looking ahead to the new fiscal year, we have set three primary business objectives, aligning with our current development plan. First, we aim to significantly increase sales volume, projecting a year-over-year retail sales growth of 150% for fiscal year 2025. We're confident in maintaining our current sales efficiency, and we'll gradually run-pop inventory, expecting inventory levels to increase two to three times compared to the beginning of fiscal year. This will drive continuing with retail sales growth in the coming quarters, ensuring the achievement of our sales target for the new fiscal year. In second, we plan to achieve company-wide profitability at scale.

DK: It is estimated that retail sales will increase by 150% in the same year as 2025. We are very confident in maintaining the current sales efficiency of the vehicle and gradually increasing the inventory. The estimated inventory size will increase by 2-3 times compared to the beginning of the year, promoting the continuous growth of retail sales in the next few quarters and ensuring the completion of the sales target for the new year.

Speaker Change: First, continue to drive significant sales growth. Retail sales are expected to increase by 150% year-on-year in the 2025 fiscal year.

Speaker Change: We are very confident in maintaining the current sales efficiency of vehicles and gradually increasing inventory. It is expected that the inventory scale will increase by 2 to 3 times compared to the beginning of the year, driving continuous growth in retail sales over the next few quarters and ensuring the achievement of the new annual sales target.

DK: First, we aim to significantly increase sales volume, projecting a year-over-year retail sales growth of 150% for fiscal year 2025. We're confident in maintaining our current self-efficiency and will gradually ramp up inventory, expecting inventory levels to increase two to three times compared to the beginning of the fiscal year. This will drive continuous retail sales growth in the coming quarters, ensuring the achievement of our sales target for the new fiscal year. Secondly, we want to scale up the company's profitability.

Speaker Change: First, we aim to significantly increase sales volume, projecting a year-over-year retail sales growth of 150% for FY 2025.

Speaker Change: We are confident in maintaining our current sales efficiency and will gradually ramp up inventory, expecting inventory levels to increase two to three times compared to the beginning of the fiscal year.

Speaker Change: This will drive continuous retail sales growth in the coming quarters, ensuring the achievement of our sales target for the new fiscal year.

DK: Our goal is to achieve single-season EBITDA profitability from October to December 2024. Recently, the price of the new car has stabilized, and the profitability level of the second-hand car has begun to recover. As the inventory scale increases, sales continue to climb. We are very confident in the realization of this profitability goal.

Speaker Change: Second, achieving company-wide profitability. Our goal is to achieve positive EBITDA for the entire company in a single quarter from October to December 2024. Recently, new car prices have stabilized, and the profitability of used cars has started to recover. With the growth in inventory size and continuous increase in sales, we are very confident in achieving this profitability goal.

DK: And second, we plan to achieve company-wide profitability at scale. Our goal is to achieve positive adjusted EBITDA for the entire company in the quarter between October and December 2024. With new car prices now stabilizing, the profitability of used cars is beginning to recover, and our inventory scales and sales continue to climb, we're confident in meeting this profitability target. Third, we complete the selection and preparation of 2-3 new plants.

Speaker Change: And second, we plan to achieve company-wide profitability at scale. Our goal is to achieve positive adjusted EBITDA for the entire company in the quarter between October and December 2024.

DK: Our goal is to achieve positive-adjusted EBITDA for the entire company in the quarter between October and December 2024. With new car prices now stabilizing, the profitability of used cars is beginning to recover, and our inventory scales until continue to climb, we're confident in meeting this profitability target. In third, we will finalize the location selection and operation preparation for two to three new superstores, enhancing our waiting to create an online and offline superstar network. Recently, we announced a strategic partnership with the General Airport District Government, with a joint investment of 170 million RMB to establish a new used car super story in General City.

Speaker Change: With new car prices now stabilizing, the profitability of used cars is beginning to recover, and our inventory scales and sales continue to climb. We're confident in meeting this profitability target.

Speaker Change: Complete the selection and operational preparation of two to three new stores in the third phase.

DK: [inaudible] We have recently announced a joint investment of 1.7 billion yuan with Zhengzhou Airport Local Government to set up a joint venture company to support Uxin to set up a new second-hand car super market in Zhengzhou. Zhengzhou is a transportation hub city in the South China Region and one of the most active cities in the second-hand car trade. It has more than 13 million permanent residents and 5 million cars.

Speaker Change: Improve the online and offline coordinated hypermarket network

Speaker Change: We have recently announced a joint investment of 170 million yuan with the Zhengzhou Airport District local government to establish a joint venture company, supporting Uxin in setting up a new two-wheeler superstore in Zhengzhou.

Speaker Change: Zhengzhou is a transportation hub city in central China and one of the most active cities for used car transactions. It has a permanent population of over 13 million and a car ownership of 5 million.

DK: It has the best conditions to operate a super-sized second-hand car market. In addition to Zhengzhou, we have several other cities that are also promoting the landing plan. This will continue to promote Uxin's national business industry and growth in the coming years. And third, we will finalize the location selection and operation preparations for two to three new superstores, enhancing our reintegrated online and offline superstore network. Recently, we announced a strategic partnership with the Zhengzhou Airport District Government, with a joint investment of RMB170 million to establish a new Yuxin used-car superstore in Zhengzhou City.

Speaker Change: We have excellent conditions for operating large-scale used car markets. In addition to Zhengzhou, we are also advancing implementation plans in several other cities simultaneously. This will continue to drive our national business expansion and growth in the coming years.

Speaker Change: And third, we will finalize the location selection and operation preparation for two to three new superstores, enhancing our reintegrated online and offline superstore network.

Speaker Change: Recently, we announced a strategic partnership with the Zhengzhou Airport District Government.

Speaker Change: With a joint investment of RMB170 million to establish a new Yuxin used car superstore in Zhengzhou city.

DK: As a transportation hub in central China and one of the most active cities were used car transactions, General was a population of over 13 million and a car ownership of 5 million. Making it an ideal location for operating a super large scale used car super story. And besides General, we are also advancing implementation plans in several other cities, which will drive the use in national expansion and business growth in the coming years. Everything is in place for us to achieve our goals. We have confidence in the competitive advantage of using super small model and the momentum driving our business growth.

DK: As a transportation hub in central China and one of the most active cities for used-car transactions, Zhengzhou boasts a population of over 13 million and a car ownership rate of 5 million, making it an ideal location for operating a super-large-scale used-car superstore. And besides Zhengzhou, we are also advancing implementation plans in several other cities, which will drive Uxin's national expansion and business growth in the coming Everything is ready.

Speaker Change: As a transportation hub in central China and one of the most active cities for used car transactions,

Speaker Change: Zhengzhou boasts a population of over 13 million and a car ownership of 5 million, making it an ideal location for operating a super large-scale used car superstore.

Speaker Change: Besides Zhengzhou, we are also advancing implementation plans in several other cities, which will drive Yuxin's national expansion and business growth in the coming years.

DK: Our confidence in Uxin's competitive advantage and growth momentum is unwavering. We are still at a level of ten thousand billion, and we are on a rampant development track. We will continue to build on the value of customer centricity to lead the change and upgrade of the Chinese car industry. Once again, thank you for your trust and support.

Speaker Change: Everything is ready. We are extremely confident in the competitive advantages of prioritizing the hypermarket model and the growth momentum of our operations. We are still on a trillion-dollar and rapidly developing track.

Speaker Change: We will also continue to adhere to the value of being customer-centric to drive and lead the transformation and upgrading of China's used car industry. Once again, we thank everyone for their trust and support over the years, and we look forward to witnessing new breakthroughs with you in the new fiscal year.

DK: We look forward to seeing Uxin's new breakthrough with you in the new fiscal year. Everything is in place for us to achieve our goals. We have confidence in the competitive advantage of Uxin's superstore model and the momentum driving our business growth. We remain dedicated to leading the transformation and upgrading of China's used car industry with a steadfast commitment to customer-centric value creation. Once again, we sincerely thank you for your continued trust and support. We look forward to achieving new breakthroughs together in the coming fiscal year. That's all for today. Next, our CFO, John, will show you our financial situation. Welcome, John.

Speaker Change: Everything is in place for us to achieve our goals.

Speaker Change: We have confidence in the competitive advantage of the Uxin SuperStore model and the momentum driving our business growth. We remain dedicated to leading the transformation and upgrading of China's used car industry with a steadfast commitment to customer-centric value creation.

DK: We remain dedicated to leading the transformation and upgrading of China's used car industry with a specialist commitment to customer centric value creation. Once again, we sincerely thank you for your continued trust and support. We look forward to achieving new breakthroughs together in the coming fiscal year.

Speaker Change: Once again, we sincerely thank you for your continued trust and support. We look forward to achieving new breakthroughs together in the coming fiscal year.

Speaker Change: I'll stop sharing here for today. Next, our CFO John will present the financial situation. Please welcome John .

Jack Wayne: I would like to turn to call over to our faithful to working through the financial results.

Jack Wang: And with that, I'd like to turn the call over to our CFO to walk you through the financial results. OK, DK. Hello everyone.

Speaker Change: And with that, I'd like to turn the call over to our CFO to walk you through the financial results. John , please.

Zhanglin: John, please. Okay.

Zhanglin: Thank you, DK.

John: OK, thank you DK. Hello everyone, since we have both domestic and international investors attending, to facilitate better communication, we will share the company's financial performance for the fourth quarter and the entire fiscal year of 2024 in both Chinese and English.

John: Because there are domestic and foreign investors' meetings at the same time, in order to communicate more conveniently, we will share with you in Chinese and English the company's financial situation in the 4th quarter of the financial year of 2024 and the financial situation for the whole year. Thank you DK and hello everyone. I will provide a closer look at our financial results for the fourth quarter and fiscal year 2024. To facilitate communication with both domestic and international investors on the call, I will make my remarks in both Chinese and English.

Zhanglin: Hello, everyone. I will provide a closer look at our financial results from the fourth quarter and fiscal year 2022. To facilitate communication with both domestic and international investors on the call, I will make my remarks in both Chinese and English. As we review our performance in the fourth quarter of this year, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020, 2020 As such, our total revenues in the fourth quarter were 319 million RMB, and importantly, our turnover efficiency has reached a new height and is increasing market fluctuation, with the overall even turnover decreasing from 45 days at the beginning of the fiscal years to approximately 30 days currently.

John: Thank you, DK, and hello everyone. I will provide a closer look at our financial results from the fourth quarter and fiscal year 2024. To facilitate communication with both domestic and international investors on the call, I will make my remarks in both Chinese and English.

John: Looking back at the fourth quarter of the fiscal year, which is the year of nature, from January to March of 2024, due to the impact of the Spring Festival, which is the traditional season for second-hand car sales, and the comprehensive improvement of brand power, product power, and service power, we still achieved very good sales results. The retail sales for the quarter were 3,124 units, which increased by 38% in the same period last year.

John: Reviewing the fourth quarter of the fiscal year, which is from January to March of the calendar year 2024, due to the impact of the Spring Festival, it is traditionally a strong period for used car sales.

Speaker Change: Thanks to the comprehensive improvement in brand strength, product strength, and service strength, we still achieved very good sales results. Group A's retail sales were 3,124 units, an increase of 38% compared to the same period last year.

John: As we review our performance in the fourth quarter of fiscal year 2024, which ended March 31, 2024, we faced the traditional off-season for used car sales due to the Chinese New Year. Nevertheless, the enhancement of our brand strength, as well as product and service quality, enabled us to deliver remarkable sales results, with a total retail transaction volume of 3,124. In the fourth quarter of this year, our total sales revenue was 2.69 billion RMB, which is 2% higher than the previous year. The current domestic economic situation is still a challenge.

Speaker Change: As we review our performance in the fourth quarter of fiscal year 2024, which ended March 31st, 2024, we faced the traditional off-season for used car sales due to the Chinese New Year.

Speaker Change: Nevertheless, the enhancement of our brand strength, as well as product and service quality, enabled us to deliver remarkable sales results, with a total retail transaction volume of 3,124 units, a 38% increase compared to the same period last year.

Speaker Change: The total retail revenue for the fourth quarter within the region was 269 million RMB, a year-on-year increase of 2%.

John: The domestic car market is still in a fierce price war. In the past year, we have taken the initiative to adjust the inventory structure to adapt to the changes in the market economy. The average car price of retail sales was 117,000 yuan in the same period last year, which is 860,000 yuan this quarter. The significant growth in sales has offset the decline in car prices. The total retail revenue for the fourth quarter was 269 million RMB, representing a 2% year-over-year increase.

Speaker Change: The current domestic economic situation still faces challenges. The domestic automobile market is still in the midst of intense price wars. Over the past year, we have proactively adjusted our inventory structure to adapt to changes in market conditions.

Speaker Change: The average price of retail vehicles dropped from 117,000 yuan in the same period last year to 86,000 yuan this quarter, but the significant increase in sales offset the impact of the price decline.

Speaker Change: The total retail revenue for the fourth quarter was 269 million RMB, representing a 2% year-over-year increase.

John: Despite certain challenges in the current domestic economic landscape and the ongoing intense price competition among domestic carmakers, we proactively adjusted our inventory structure to adapt to market changes. The average selling price, or ASP, of our retail vehicles decreased from 117,000 RMB in the same period last year to 86,000 RMB this quarter. However, the significant change in sales volume offset the impact of the price reduction.

Speaker Change: Despite certain challenges in the current domestic economic landscape and the ongoing intense price competition among domestic car makers, we proactively adjusted our inventory structure to adapt to market changes.

Speaker Change: The average selling price, or ASP, of our retail vehicles decreased from 117,000 RMB in the same period last year to 86,000 RMB this quarter.

Speaker Change: However, the significant change in sales volume offset the impact of the price reduction.

John: In terms of vehicle sales, the sales volume of the fourth quarter was 934 units, which is 31% lower than the previous year, and the total sales volume was 3,970,000 yuan. After the offline large-scale factory model is fully launched, we will focus more on the retail business of vehicles. The ratio of wholesale business will gradually decrease naturally. Our wholesale transaction volume in the fourth quarter decreased by 31% year-over-year to 934 units, leading to a total wholesale revenue of $39.7 million RMB.

Speaker Change: In terms of vehicle wholesale, the wholesale sales in the fourth quarter were 934 units, a year-on-year decrease of 31%, with total wholesale revenue of 39.7 million yuan.

Speaker Change: After fully implementing the offline hypermarket model, we will focus more on the retail business of vehicles, and the proportion of wholesale business will gradually decrease naturally.

Speaker Change: Our wholesale transaction volume in the fourth quarter decreased by 31% year-over-year to 934 units, leading to a total wholesale revenue of $39.7 million RMB.

John: With our offline superstore model not fully operational, we are focusing more on the retail vehicle business, and the proportion of wholesale business will naturally decrease over time. Overall, the total revenue for the fourth quarter was 3.19 billion RMB. Our rotation efficiency has taken a new turn in the ongoing market activity. The overall rotation speed of the inventory has dropped from 45 days at the beginning of the year to around 30 days now.

Speaker Change: With our offline superstore model not fully operational, we are focusing more on the retail vehicle business, and the proportion of wholesale business will naturally decrease over time.

Speaker Change: Based on the above situation, the total revenue for the fourth quarter is 319 million RMB.

Speaker Change: Our turnover efficiency has reached a new level amid increasing market volatility. The overall inventory turnover speed has decreased from 45 days at the beginning of the year to around 30 days currently.

John: The rapid rotation of vehicles has enabled us to gain higher vehicle price-to-price ratio income. On this basis, the penetration rate of additional services is also gradually increasing, pushing the gross profit margin of this quarter to 6.6%, compared with the previous quarter's gross profit margin of 4.8%, which was 2.3% at the same time last year. We expect there is still a lot of room for growth in gross profit margin. As such, our total revenues in the fourth quarter were 319 million RMB.

Speaker Change: The rapid turnover of vehicles has allowed us to achieve higher income from vehicle price differentials.

Speaker Change: On this basis, the penetration rate of value-added services is also gradually increasing, driving the gross profit margin for this quarter up to 6.6%. In comparison, the gross profit margin for the previous quarter was 4.8%, and it was 2.3% for the same period last year. We expect there is still considerable room for growth in the gross profit margin.

Speaker Change: As such, our total revenues...

John: Importantly, our turnover efficiency has reached a new height amidst the increasing market fluctuation, with the overall inventory turnover decreasing from 45 days at the beginning of the fiscal year to approximately 30 days currently. Faster vehicle turnover has allowed us to achieve higher net vehicle income. Additionally, the penetration rate of value-added services has been steadily increasing, driving the gross profit margin for the quarter up to 6.6%, compared to 4.8% in the previous quarter and 2.3% in the same period last year.

Speaker Change: in the fourth quarter were 319 million RMB.

Speaker Change: Importantly, our turnover efficiency has reached a new height amidst increasing market fluctuation, with the overall inventory turnover decreasing from 45 days at the beginning of the fiscal year to approximately 30 days currently.

Zhanglin: Faster vehicle turnover has allowed us to achieve higher net vehicle income. Additionally, the penetration rate of value added services has been steadily increasing, driving the gross profit margin for the quarter up to 6.6 percent compared to 4.8 percent in the previous quarter and 2.3 percent in the same period last year. And we anticipate further growth in our gross profit margin. We also further enhance our operational efficiency and maintain a strict cost control measure.

Speaker Change: Faster vehicle turnover has allowed us to achieve higher net vehicle income.

Speaker Change: Additionally, the penetration rate of value-added services has been steadily increasing, driving the gross profit margin for the quarter up to 6.6%, compared to 4.8% in the previous quarter and 2.3% in the same period last year.

Speaker Change: and we anticipate further growth in our gross profit margin.

John: We anticipate further growth in our gross profit margin. We continuously improve the efficiency of business operations and continue to observe strict control of costs and expenses. We made adjustments and optimizations to the organization structure in March. The EBITDA loss after the adjustments this quarter is 3,970 yuan, which is 4.1 million yuan less than the previous quarter. We will also further enhance our operational efficiency and maintain a strict cost control measure. As part of this ongoing effort, we completed organizational adjustments and structural optimizations in March. In the first quarter, our adjusted EBITDA loss was 39.7 million RMB, a reduction of 4.1 million RMB compared to the previous quarter.

Speaker Change: We continuously improve the operational efficiency of our business, consistently enforce strict cost and expense control, and in March, we carried out organizational restructuring and optimization.

Speaker Change: The adjusted EBITDA loss for this quarter is RMB 39.7 million, a reduction of RMB 4.1 million compared to the previous quarter.

Speaker Change: We also further enhance our operational efficiency and maintain strict cost control measures.

Zhanglin: As part of this ongoing effort, we have come to a conclusion that we are going to be able to lead an organizational adjustment and structural optimizations in March. In the first quarter, our adjusted a little bit a lot was 39.7 million RMB, a reduction of 4.1 million RMB to pay to the previous quarter. In the last quarter, 10.2 billion RMB; 10.2 billion RMB, a reduction of 13.75 billion RMB. Now, the sales of the sales model is completely running. In the next quarter of the fiscal year, 1.76 billion RMB, a reduction of 1.6 billion RMB to pay to the previous quarter up to 40 million RMB.

Speaker Change: As part of this ongoing effort, we have completed organizational adjustments and structural optimizations in March. In the first quarter, our adjusted EBITDA loss was 39.7 million RMB, a reduction of 4.1 million RMB compared to the previous quarter.

John: As of the end of the year of 2024, the total retail sales of Tencent is 10,179,000 units. In the last four quarters of the year, under the influence of the new car price war, the sales have continued to grow and the retail revenue has reached 10.24 billion RMB and the total revenue of 13.75 billion RMB, Now the business model of the big market has been completely run through After the adjustment, EBITDA loss is RMB1.76 billion In the last fiscal year, it shrank by about RMB100 million A net loss of nearly 40% About the specific data of the fiscal year We have made a detailed disclosure in Ganghua's report and annual report I will not go into details here, Regarding the full fiscal year 2024 performance, our total retail transaction volume totaled 10,179 units.

Speaker Change: Regarding the performance for the entire fiscal year 2024

Speaker Change: The total retail sales of the entire association is 10,179 units.

Speaker Change: In the four quarters of the fiscal year, despite the dominance of new car prices, continuous sales growth was maintained, achieving retail revenue of 1.024 billion RMB and total revenue of 1.375 billion RMB.

Speaker Change: The current hypermarket business model has been fully validated. The adjusted EBITDA loss is 176 million RMB, which is a reduction of approximately 100 million RMB compared to the previous fiscal year, representing a year-on-year loss reduction of nearly 40%.

Zhanglin: According to the financial data we have just mentioned, in the last quarter of the fiscal year, we have come to a conclusion that we are going to be able to lead the fiscal year. According to the fiscal year 2024 performance, our total retail transaction volume totaled 1,179 units, and despite the impact of the new car price worth, we maintain a continuous sales growth across all four quarters, achieving a retail revenue of 1.02 billion RMB and total revenues of 1.38 billion RMB. Our offline superstorm business model is now fully operational, enabling us to narrow our adjusted EBITDA loss by 104 million RMB, nearly 40% from the previous fiscal year to 176 million RMB.

Speaker Change: Regarding the specific data of Tainan, we have provided detailed disclosures in the recently released quarterly and annual reports, so I will not elaborate on them here.

Speaker Change: Regarding the full fiscal year 2024 performance, our total retail transaction volume totaled 10,179 units.

John: And despite the impact of the new car price force, we maintained continuous sales growth across all four quarters, achieving a retail revenue of 1.02 billion RMB and total revenues of 1.38 billion RMB. Our offline SuperStorm business model is now fully operational, enabling us to narrow our adjusted EBITDA loss by 104 million RMB, nearly 40% from the previous fiscal year to 176 million RMB.

Speaker Change: And despite the impact of the new car price war,

Speaker Change: We maintain a continuous sales growth across all four quarters Achieving a retail revenue of 1.02 billion RMB and total revenues of 1.38 billion RMB

Speaker Change: Our offline SuperStorm business model is now fully operational, enabling us to narrow our adjusted EBITDA loss by 104 million RMB, nearly 40% from the previous fiscal year to 176 million RMB.

Zhanglin: Detailed information on our financial results from the fiscal year can be found in our recently released earnings report and annual report, so I won't repeat them here. According to the latest report of the fiscal year 2020-2023, we will continue to reduce the sales growth of 1.02 billion RMB. In January of 2024, we achieved an adjusted EBITDA profitability at a superstore level for the first time. With new car prices stabilizing, we have already begun gradually increasing inventory levels. Meanwhile, maintaining our current vehicle turnover efficiency will drive sustainment sales growth. Additionally, we expect fixed costs and expenses for the fiscal year of 2025 to be reduced by over 100 million RMB compared to the fiscal year of 2024, accelerating via treatment of company-wide adjusted EBITDA profitability.

John: Detailed information on our financial results for the fiscal year can be found in our recently released earnings report and annual report, so I won't repeat them here. In January 2024, we achieved the first-ever adjusted EBITDA profit on the sales side. As the price of the new car rises steadily, we have begun to gradually increase the storage level. On the basis of maintaining the current vehicle cycle efficiency, sales will continue to grow.

Speaker Change: Detailed information on our financial results from the fiscal year can be found in our recently released earnings report and annual report, so I won't repeat them here.

Speaker Change: In January 2024, we achieved profitability at the store level for Adjusted Beta for the first time. With the stabilization of new car prices, we have begun to gradually increase inventory levels. Maintaining the current vehicle turnover efficiency will lead to sustained sales growth.

John: At the same time, we expect that the fixed cost of the 2025 budget will continue to reduce by more than 100 million RMB than in 2024, to promote a faster realization of the overall adjusted EBITDA profit at the company level. In January 2024, we achieved adjusted EBITDA profitability at the superstore level for the first time. With new car prices stabilizing, we have already begun gradually increasing inventory levels. Meanwhile, maintaining our current vehicle turnover efficiency will drive sustained sales growth. Additionally, we expect fixed costs and expenses for the fiscal year of 2025 to be reduced by over 100 million RMB compared to the fiscal year of 2024, accelerating the achievement of company-wide adjusted EBITDA profitability.

Speaker Change: At the same time, we expect the expenditure on fixed costs in the fiscal year 2025 to decrease by more than 100 million RMB compared to the fiscal year 2024, driving a faster achievement of overall company-level Adjusted EBITDA profitability.

Speaker Change: In January 2024, we achieved adjusted EBITDA profitability at a superstore level for the first time.

Speaker Change: With new car prices stabilizing, we have already begun gradually increasing inventory levels.

Speaker Change: Meanwhile, maintaining our current vehicle turnover efficiency will drive sustained sales growth.

Speaker Change: Additionally, we expect fixed costs and expenses for the FY2025 to be reduced by over RM100 million compared to FY2024, accelerating the achievement of company-wide adjusted EBITDA profitability.

John: As for the 1st quarter of 2025, which is the 4th to 6th quarter of 2024, our retail sales are expected to be 4,000 units, and the growth rate is more than 25%. Our wholesale sales are expected to be 1,500 units. The total sales revenue is expected to be between RMB3.9 billion and RMB4.1 billion. Mao Li wants to maintain stability in the fourth quarter of 2023. Moving on to the outlook for the first quarter of fiscal year 2025, which ended June 30, 2024, we expect our retail transaction volume to reach 4000 units, representing a sequential increase of over 25%.

Speaker Change: Regarding the performance outlook for the first quarter of the 2025 fiscal year, which is from April to June 2024, our retail sales are expected to be 4,000 units, with a year-over-year growth of over 25%, and our wholesale sales are expected to be 1,500 units.

Speaker Change: Total sales revenue is expected to be between 390 million RMB and 410 million RMB. Gross profit should remain stable in the just-passed fourth quarter of 2023.

Zhanglin: Moving on to the outlook for the first quarter of fiscal year 2025, which ended June 30, 2024, we expect our retail transactions volume to reach 4,000 units, representing a sequential increase of over 25%. Hostile transaction volume is expected to be 1,500 units. Total revenues are projected to be between 390 million RMB and 420 million RMB. We also anticipate that our gross profit will remain stable compared to the fourth quarter of fiscal year 2024. As for the full fiscal year of 2025, we project a retail transaction volume of around 25,000 units, representing a year-over-year increase of 150%.

Speaker Change: Moving on to the outlook for the first quarter of fiscal year 2025 which ended June 30 in 2024, we expect our retail transaction volume to reach 4,000 units representing a sequential increase of over 25%.

John: Wholesale transaction volume is expected to be 1,500 units. Total revenues are projected to be between $390 million RMB and $410 million RMB. We also anticipate that our gross profit will remain stable compared to the fourth quarter of fiscal year 2024.

Speaker Change: Wholesale transaction volume is expected to be 1,500 units.

Speaker Change: Total revenues are projected to be between 390 million RMB and 410 million RMB. We also anticipate that our gross profit will remain stable compared to the fourth quarter of fiscal year 2024.

John: As for the outlook for 2025, we expect retail sales to increase by about 25,000 units and increase by about 150%. Our goal is to make a profit in the first three quarters of the year, which is from October to December 2024. As for the full fiscal year of 2025, we project a retail transaction volume of around 25,000 units, representing a year-over-year increase of 150%. Our goal is to achieve company-wide adjusted EBITDA profitability starting from the third quarter of the fiscal year, which is from October to December in 2024.

Speaker Change: Regarding the outlook for the entire fiscal year 2025, we expect retail sales to be approximately 25,000 units, representing a year-over-year growth of about 150%.

Speaker Change: Our goal is to start in the third quarter of the fiscal year, which is from October to December 2024, to achieve company-wide profitability multiplied for the entire quarter.

Speaker Change: As for the full fiscal year of 2025, we project a retail transaction volume of around 25,000 units.

Zhanglin: Our goal is to achieve company-wide adjusted EBITDA profitability starting from the third quarter of the fiscal year, which is from October to December 2024.

Speaker Change: representing a year-over-year increase of 150 percent. Our goal is to achieve company-wide adjusted EBITDA profitability starting from the third quarter of the fiscal year, which is from October to December in 2024.

John: ,,,,, And that concludes our prepared remarks for today. Operator, we are now ready to take 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're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been answered and you would like to withdraw your question, please press star then 2.

Speaker Change: That concludes the content we have prepared to share with everyone today. Thank you all. Host, we can start the Q&A session.

Speaker Change: And that concludes our prepared remarks for today. Operator, we are now ready to take questions.

Zhanglin: Thank you.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: 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're using a speakerphone, please pick up your handset before pressing the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.

Speaker Change: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.

Operator: When asking a question in Chinese, please restate your question in English immediately after for the convenience of everyone on the call.

Operator: When asking a question in Chinese, please restate your question in English immediately after for the convenience of everyone on the call. And at this time, we'll pause momentarily to assemble our roster. And the first question will come from Fei Dai with TF Securities. Please go ahead.

Speaker Change: When asking a question in Chinese, please restate your question in English immediately after for the convenience of everyone on the call. And at this time, we'll pause momentarily to assemble our roster.

Operator: And at this time, we'll pause momentarily to assemble our roster.

Fei Dai: Any first question will come from a fade-eye with TF Securities. Please go ahead. In addition, we notice that the company recently entered a strategic collaboration with John Joe, with 117 million RMB. Can you elaborate on this collaboration and how long it will take for the new superstar to achieve profitability? Additionally, what is the company's strategy for selecting new cities for expansion? And are there any other cities called, sorry? And are there any other cities currently in progress?

Speaker Change: Any first question will come from Fei Dai with TF Securities. Please go ahead.

Fei Dai: Hello, I am Dai Fei, a researcher at Tianfeng Securities. We noticed that the company has recently reached a strategic partnership with Zhengzhou. Could you please introduce this partnership in detail? And how long does it take for a new market to go from investment to profit? In addition, what is the company's strategy for its choice of new exporting cities? Are there any other cities in the discussion at present?

Fei Dai: Hello management, I am Dai Fei, a research analyst from Tianfeng Securities. We have noticed that the company has recently reached a strategic cooperation agreement worth 170 million with Zhengzhou.

Fei Dai: Could the company please provide a detailed introduction to this cooperation and how long it will take for the new store to go from investment to profitability?

Fei Dai: cooperation with Zhengzhou worth RMB 117 million. Can you elaborate on this cooperation and how long it will take for the new superstar to achieve profitability? Additionally, what is the company's strategy for selecting new cities for expansion? And are there any other cities currently in progress? Thank you. Thank you, Fei Dai.

Speaker Change: Your company recently entered a strategic

Speaker Change: cooperation with Zhengzhou worth 117 million RMB. Can you elaborate on this cooperation and how long it will take for the new superstar to achieve profitability?

Speaker Change: Additionally, what is the company's strategy for selecting new cities for expansion? And are there any other cities currently in progress? Thank you.

Fei Dai: Thank you.

DK: Hi, thank you, Fei. I'll answer it. Well, we've been working with Zhengzhou recently.

DK: I'll answer. Yes, our cooperation with Zhengzhou has recently come to an end. The local government has provided us with a lot of support in the local development of the second-hand car business. In addition to the 1.7 billion yuan joint investment in the operation of Uxin Zhengzhou Great Market, the government has also invested 500 million RMB in the construction of factories and has provided support in many areas, such as industrial subsidies and rural support, so that we can launch our project in Zhengzhou as soon as possible. Hi, this is DK, and we'll address that question now.

DK: The local government has provided us with a lot of support for the development of the two cities. In addition to a lot of success, the company has provided a lot of support for the development of new cities and new cities. The government has also provided a lot of support for the development of new cities and new cities and new cities and new cities and new cities.

Speaker Change: In addition to the joint investment of 170 million RMB in the main operation entity of Youxing Zhengzhou Grand Mall, the government has also invested an additional 500 million RMB in the construction of the factory. They have provided various forms of support, including industrial subsidies and regional facilities, to help us quickly launch our project in Zhengzhou.

DK: Hi, this is DKM. We'll address that question. You're correct. We have recently signed a contract with the Zhengzhou City government, and the local government plans to provide substantial support for our used purposes in the area. In addition to the joint investment of 150 million RMB for our Zhengzhou Superstore operation, the government also plans to invest an additional 500 million RMB in constructing the Superstore site. The government will also offer industry subsidies, facilities, and other various other support to ensure that our project in Zhengzhou can come as soon as possible. The construction of the store will take some time, and it's expected to be completed next year.

DK: You're correct; we have recently signed a contract with the Zhengzhou city government, and the local government plans to provide substantial support for our used car business in the area. And in addition to the joint investment of 170 million RMB for our Zhengzhou superstore operation, the government also plans to invest an additional 500 million RMB in constructing the superstore site. The government will also offer industry subsidies, facilities, and various other support to ensure that our project in Zhengzhou can commence as soon as possible.

DK: Hi, this is DK, and we'll address that question. You're correct, we have recently signed a contract with the Zhengzhou city government, and the local government plans to provide substantial support for our used car business in the area.

DK: In addition to the joint investment of RMB170 million for our Zhengzhou Superstore operation, the government also plans to invest an additional RMB500 million in constructing the superstore site.

DK: The government will also offer industry subsidies, facilities and other various other support to ensure that our project in Zhengzhou can commence as soon as possible.

DK: The construction of the factory will take some time, and it is expected to start production next year. We have run very smoothly in Xi'an and Hefei's off-shore large-scale vending machines. The new vending machines, from the first production to EBITDA profits, are expected to take only 12 months or less.

DK: The construction of the store will take some time and is expected to be completed next year.

DK: Our offline Superstore model in CN and roughly are running smoothly, and we anticipate that the new Superstore will take approximately 12 months or less from commencement to achieving even our profitability. In addition to the development of the new Superstore model in CN and roughly are running smoothly, and we anticipate that the new Superstore model in CN and roughly are running smoothly, and we anticipate that the new Superstore model in CN and roughly are running smoothly, and we anticipate that the new Superstore model in CN and roughly are running smoothly.

DK: Our offline superstore models in Xi'an and Hefei are running smoothly, and we anticipate that the new superstore will take approximately 12 months or less from commencement to achieving EBITDA profitability. We choose a new area to focus on the large number of vehicles and the high activity of second-hand vehicles. For example, Zhengzhou is one of the most active transportation hub cities in China's central region.

Speaker Change: We choose new areas to expand our business, prioritizing those with high car accident rates and active second-hand car transactions.

Speaker Change: Cities with excellent transportation conditions, such as Zhengzhou, which is a transportation hub in central China, are also among the most active cities for used car transactions, with a permanent population of over 13 million.

DK: It has more than 13 million permanent residents and 5 million vehicles and has excellent conditions for a new market. Of course, we will also look at the available land according to the specific city and whether the government's support is in line with our demand for expanding the new market. When choosing new areas for expansion, we prioritize cities with large vehicle ownership, high activity in used car transactions, and superior traffic conditions. For example, Zhengzhou is a transportation hub in central China and one of the most active cities for used car transactions, with over 13 million residents and a vehicle ownership of 5 million, making it an ideal location for a new superstore. We also consider specific city conditions, such as available land plots and whether government support aligns with our needs for expanding new superstores.

DK: A 5 million car revelation: It has excellent conditions for opening a new store. Of course, it will also depend on the specific city, the available plots of land, and whether the government's support meets our requirements for expanding new stores.

DK: When choosing new areas for expansion, we prioritize cities with large vehicle ownership, high activities in used car transactions, and superior traffic conditions. For example, Zhengzhou is a transportation hub in central China and one of the most active cities for used car transactions, with over 13 million residents and a vehicle ownership of 5 million, making it an ideal location for a new Superstore. We also consider specific city conditions such as available land plots and whether government support aligns with all our needs for expanding new Superstore.

DK: When choosing new areas for expansion, we prioritize cities with large vehicle ownership.

DK: high activities in used car transactions and superior traffic conditions. For example, Zhengzhou is a transportation hub in central China and one of the most active cities for used car transactions. With over 13 million residents and a vehicle ownership of 5 million,

DK: Under the background of encouraging the development of the automotive market, the local government is very welcome to our offline sales model. We are currently communicating with several cities, and we expect to land in 1-2 cities this year. Please continue to pay attention to our follow-up information leaks.

Speaker Change: In the context of encouraging the development of the automotive aftermarket, local governments are very supportive of our offline marketplace model. Currently, we are in communication with several cities and expect to establish cooperation in 1 to 2 more cities this year. Please continue to follow our subsequent information disclosures. Thank you.

DK: Thank you. Given the backdrop of policies encouraging the development of the auto-optimarket, local governments are very supportive of our offline superstore model.

DK: Given the backdrop of policies encouraging the development of the auto-auto market, local governments are very supportive of our offline superstore model.

DK: Given the backdrop of policies encouraging the development of the auto-auto market, local governments are very supportive of our offline superstore model. We are currently in negotiations with multiple cities and expect to finalize cooperation with one to two cities within this year. So please do stay tuned for our further announcements on this front. And that's our answer to the first question. And we actually do have another question from Water Tower Research, who couldn't be here in person.

DK: We are currently in negotiations with multiple cities, and we expect to finalize cooperation with one to two cities within this year, so please stay tuned for our further announcement on this prompt. And that's our answer to the first question.

Speaker Change: And that's our answer to the first question.

Waterpower Research: And we actually do have another question from Waterpower Research, who could be here in person, so I will just ask that question on behalf of them. The question is, how is our used car, used new energy vehicle business developing, and what percentage of the used industry is to be made up compared to fuel-powered used cars? Are there major differences in profitability and cost when selling used new energy vehicles?

Speaker Change: And we actually do have another question from Watertower Research who couldn't be here in person.

Operator: So I will just ask that question on behalf of them. The question is, how is our used car and used new energy vehicle business developing? And what percentage of Uxin's inventory do they make up? Compared to fuel-powered used cars, are there major differences in profitability and cost when selling used and new energy vehicles? We have an analyst who studies water towers, but he can't be here today, so I'll ask him another question.

Speaker Change: So I will just ask that question on behalf of them. The question is, how is our used car, used new energy vehicle business developing? And what percentage of Uxin's human trade do they make up?

Speaker Change: Compared to fuel-powered used cars, are there major differences in profitability and cost when selling used and new energy vehicles?

Operator: The sales ratio of new energy vehicles is increasing in the new car market, so how is the development of the new energy second-hand car business? What is the inventory ratio? Is there a big difference between new energy second-hand cars and fuel second-hand cars in terms of profit level and cost? China's new energy vehicle sales have increased very rapidly this year. The market share in new vehicle sales is already close to 50%, and we are also very concerned about this trend.

Speaker Change: The current sales ratio of new energy vehicles in the new car market

Speaker Change: The proportion is getting higher and higher. So, may I ask how the company's used new energy vehicle business is currently developing? What is the proportion of inventory?

Speaker Change: Are there significant differences in profitability and cost investment when selling used new energy vehicles compared to used fuel vehicles?

DK: Well, the new energy vehicle business development, how does it look like? How much does it cost? So, the new energy vehicle, used by the new energy vehicle, is there any difference in the new energy vehicle, used by the new energy vehicle, used by the new energy vehicle, being a close eye on this trend? And since the NEV Zoom only started in the last two to three years, their total ownership is only about 25 million, which is less than 10% of the national vehicle ownership of 340 million. Most NEVs haven't yet entered the used car sales space yet, so currently the proportion of our NEV sales is between 10 to 15%, which is still above market level.

Speaker Change: Okay, the sales growth of new energy vehicles in China this year is indeed very fast. The market share in new car sales is already close to 50%. We are also very concerned about the development of this trend because

DK: The number of new energy vehicles has exploded in the last two or three years. The number of these vehicles is about 25 million. Currently, there are 3.4 billion vehicles in the country, but the number of cars is less than 1.1 billion. Most new energy vehicles have not entered the re-flow phase yet. The current sales ratio of our new energy vehicles is between 1.1 billion and 1.15 billion. It is higher than the overall market average. The growth rate of NEV sales in China this year has indeed been very impressive, with their market share in new car sales now approaching 50%. We are keeping a close eye on this trend.

Speaker Change: The explosion of new energy vehicles has occurred in the past two to three years, with an ownership volume of approximately 25 million units. Currently, there are 340 million vehicles nationwide, so their proportion is still less than 10%. Most new energy vehicles have not yet entered the secondary circulation stage. At present, the sales ratio of our new energy vehicles is between 10% to 15%, which is higher than the overall market average.

Speaker Change: The growth rate of NEV sales in China this year has indeed been very impressive with their market share in new car sales now approaching 50%.

Speaker Change: We are keeping a close eye on this trend, and since the NEV boom only started in the last 2-3 years, their total ownership is only about $25 million, which is less than 10% of the national vehicle ownership of $340 million.

DK: And since the NEV boom only started in the last two to three years, their total ownership is only about $25 million, which is less than 10% of the national vehicle ownership of $340 million. Most NEVs haven't yet entered the used car sales space yet. So currently, the proportion of our NEV sales is between 10% to 15%, which is still above market level.

Speaker Change: Most NEVs haven't yet entered the used car sales space yet, so currently the proportion of our NEV sales is between 10-15%, which is still above market level.

DK: In terms of our sales experience, the profitability level of new energy second-hand cars will be slightly higher than that of fuel-oil second-hand cars. First of all, because the new energy car has a very high cost-effectiveness ratio and the renewal and replacement cycle of the new energy car is shorter, it has a certain consumer electronic property, so the sales of the new energy car are faster than that of the fuel car, which will bring a higher increase in revenue.

Speaker Change: Based on our sales experience, the profitability of used new energy vehicles is slightly higher than that of used fuel vehicles.

Speaker Change: First of all, because second-hand new energy vehicles have a very high cost-performance ratio

Speaker Change: Moreover, the update cycle for new energy vehicles is shorter, and they have certain attributes of consumer electronics. Therefore, the sales turnover rate of second-hand new energy vehicles is higher than that of fuel vehicles.

DK: In addition, because the average vehicle capacity of the new energy car is relatively short, the condition of the vehicle frame and battery is relatively good, and it does not involve engine, gearbox, and other mechanical repair problems, so the average cost of preparing the new energy car is also lower. From our experience, the profitability of used NEVs is slightly higher than that of fuel-powered used cars. Firstly, used NEVs offer excellent value for the money spent.

Speaker Change: This will lead to higher gross profit. Additionally, since the average age of new energy vehicles is relatively short, their condition and battery status are generally good, and they do not involve issues with engines or transmissions. Therefore, the average preparation cost for new energy used cars is also lower.

DK: From our experience, the profitability of used NEVs is finally higher than that of fuel-powered used cars. Virtually used NEVs offer excellent value for money, and due to their shorter update cycle, and some characteristics similar to electronic consumer goods, their sales turnover rate is higher than that of field cars. Li Lin to hire price markups. Additionally, since NEVs generally have a shorter average age, their condition and battery status are relatively better, and they do not involve issues with engines and transmission, resulting in lower average reconditioning compared to fuel powered cars. From the perspective of the two-wheel drive, the new NEVs and the new NEVs are not very different from the previous NEVs.

Speaker Change: From our experience, the profitability of used NEVs is slightly higher than that of fuel-powered used cars.

DK: And due to their shorter update cycle and some characteristics similar to electronic consumer goods, their sales turnover rate is higher than that of field cars. Additionally, their condition and battery status are relatively better, and they do not involve issues with engines and transmission, resulting in lower average reconditioning costs compared to fuel-powered cars.

Speaker Change: Firstly, used NEVs offer excellent value for money, and due to their shorter update cycle and some characteristics similar to electronic consumer goods, their sales turnover rate is higher than that of built cars.

Speaker Change: leading to higher price markups. Additionally, since NEVs generally have a shorter average age, their condition and battery status are relatively better and they do not involve issues with engines and transmissions, resulting in lower average reconditioning costs compared to fuel-powered cars.

DK: From the perspective of a professional second-hand car retailer, there is not much difference between a new energy second-hand car and a used second-hand car in terms of operation. Our operating system can fully support the purchase, preparation, sales, and after-sales services of new energy second-hand cars. We have already established a database of new energy vehicles of many brands, including Tesla, Abiadi, and Wei Xiaoli, and have invested in price monitoring, maintenance system, battery assessment, etc.

Speaker Change: From our perspective as professional used car retailers, there is no significant difference in the business nature between used new energy vehicles and used fuel vehicles. Our business system can fully support the procurement of used new energy vehicles.

DK: The new NEVs can be fully supported by the new NEVs. We have seen that the first generation of the new NEVs has been introduced to the new NEVs. In addition, the new NEVs have been introduced to the new NEVs.

Speaker Change: Prepare sales after-sales service

Speaker Change: We have already established a database of new energy vehicle models, including numerous brands such as Tesla, BYD, and NIO, Li Auto, and XPeng.

DK: We are also working with the New Energy Vehicle National Data Alliance, the supply chain core suppliers, the car factory, etc. to promote a series of technology and information cooperation to prepare for the new energy second-hand car business. We believe that with the rapid development of new energy vehicles in China, the proportion of new energy second-hand cars in our retail business will continue to increase, and we are fully prepared for this. From our perspective as a professional used car retailer, there is no significant difference in the fundamental operations between used NEVs and fuel-powered cars.

Speaker Change: Invest in price monitoring, value retention systems, and battery evaluation.

Speaker Change: We are also working with the National Big Data Alliance for New Energy Vehicles

Speaker Change: Core suppliers in the supply chain, such as automobile manufacturers, are promoting a series of technical and information collaborations.

Speaker Change: Be prepared for the used new energy vehicle business. We believe that with the rapid development of new energy vehicles in China, the proportion of used new energy vehicles in our retail business will continue to increase. We have made full preparations for this.

DK: From our perspective as a professional used car retailer, there is no difference in the fundamental operations between used NEVs and fuel-powered cars. Our operational system fully supports the acquisition, reconditioning, sales, and up-to-sub services for used NEVs. We've built a database of NEVs as well, including brands like Tesla, BYD, NEO, XPEV, and the Auto, etc. and have invested in price monitoring, value retention systems, and battery assessment equipment. We're also working with the National Big Data Alliance for New Energy Vehicles, core suppliers in the supply chain, and vehicle manufacturers to promote a series of technical and informational collaborations to prepare for the used NEV business.

Speaker Change: From our perspective as a professional used car retailer, there is no significant difference in the fundamental operations between used NEVs and fuel-powered cars.

DK: Our operational system fully supports the acquisition, reconditioning, sales, and after-sales services for used NEVs and EVs as well, including brands like Tesla, BYD, NIO, XPEV, and LiAuto, etc., and we have invested in price monitoring, value retention systems, and battery assessment equipment. We are also working with the National Big Data Alliance for New Energy Vehicles, core suppliers in the supply chain, and vehicle manufacturers to promote a series of technical and informational collaborations to prepare for the youth and EV business. We believe that with the rapid development of NUVs in China, the proportion of NUVs in our retail business will continue to increase, and we're fully prepared to capture that opportunity.

Speaker Change: Our operational system fully supports the acquisition, reconditioning, sales, and after-sales services for used NEVs.

DK: Those are my answers. Thank you. And that's our answer to the second question. Operator, let's see if we have any other questions. Yes, if you would like to ask a question, please press star, then 1.

Speaker Change: EVs as well, including brands like Tesla, BYD, NIO, XPEV, and Li Auto, etc., and have invested in price monitoring, value retention systems, and battery assessment equipment.

DK: We believe that with the rapid development of NEVs in China, the proportion of NEVs in our retail business will continue to increase, and we're fully prepared to capture that opportunity.

Speaker Change: We believe that with the rapid development of NUVs in China, the proportion of NUVs in our retail business will continue to increase, and we are fully prepared to capture that opportunity.

DK: And that's our answer to the second question.

Operator: Operator, let's see if we have any other questions. Yes, if you would like to ask a question, please trust Star, then one.

Speaker Change: And that's our answer to the second question. Operator, let's see if we have any other questions.

Speaker Change: Yes, if you would like to ask a question, please press star, then 1.

Speaker Change: And this is the end of the video. I hope you enjoyed the video. If you did, please give it a thumbs up and subscribe to my channel. And I will see you in the next video. Bye.

Jack Wayne: And this concludes our question-and-answer session for today.

Jack Wayne: I would now like to hand the call over back to management for any closing remarks. Please go ahead.

Speaker Change: And this concludes our question and answer session for today. I would now like to hand the call over back to management for any closing remarks. Please go ahead.

Operator: All right, thank you again for joining today's call and for your continued support in Houston. We look forward to speaking with you again in the future. Thank you.

Operator: Thank you again for joining today's call and for your continued support in Uxin. We look forward to speaking with you again in the future. Thank you.

Speaker Change: Thank you again for joining today's call and for your continued support in Uxin. We look forward to speaking with you again in the future. Thank you.

Operator: The conference is now concluded. Thank you for attending today's presentation.

Operator: You may now disconnect.

Speaker Change: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.