Q2 2025 Uxin Ltd Earnings Call
Speaker #3: Ladies and gentlemen, thank you for standing by and welcome to Uxin's earnings conference call for the quarter ended June 30, 2025. At this time, all participants are in a listen-only mode.
Operator: Ladies and gentlemen, thank you for standing by and welcome to Uxin Limited's Earnings Conference Call for the quarter ended June 30, 2025. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a Q&A session. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the call over to your host for today, Ms. Ally Wong.
Speaker #3: After management's prepared remarks, there will be a Q&A session. Today's conference is being recorded. If you have any objections, you may disconnect at this time.
Speaker #3: I would now like to turn the call over to your host for today's conference call, Ms. Ali Wong. Please go ahead, Ali.
Kun Dai: Please go ahead, Ally. Thank you, operator. Hello, everyone.
Speaker #4: Thank you, operator. Hello everyone. Welcome to Uxin's earnings conference call for the second quarter ended June 30, 2025. On the call with me today, we have Vijay, our founder and CEO, and John Lin, our CFO.
John Lin: Welcome to Uxin Limited's earnings conference call.
Kun Dai: The second quarter ended June 30, 2025. On the call with me today we have Kun Dai, our Founder and CEO, and John Lin, our CFO. Kun Dai will review business operations and company highlights, followed by John, who will discuss financials and guidance. They will both be available to answer your questions during the Q&A session that follows.
Speaker #4: Vijay will review business operations and company highlights, followed by John, who will discuss financials and guidance. They will both be available to answer your questions during the Q&A session that follows.
Speaker #4: 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.
John Lin: Before we proceed, I'd like to remind.
Kun Dai: You that this comment contains forward-looking statements, which are inherently subject to risks.
John Lin: Uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and.
Speaker #4: For detailed discussions of the risks and uncertainties, please refer to our filings with the SEC. Now, with that, I will turn the call over to our CEO, Vijay.
Kun Dai: Uncertainties, please refer to our filings with the SEC now. With that, I will turn the call over to our CEO, Kun Dai. Hello everyone and thank you for joining our earnings conference call.
Speaker #4: Please go ahead, sir.
Speaker #5: 大家好, 很高兴跟各位投资者再一次通过电话会的形式见面。感谢大家来参加我们的业绩电话会。为了方便和国内外投资者进行交流, 我会用中英文的形式和大家分享一下公司最新的进展。
Speaker #4: Hello everyone, and thank you for joining our earnings conference call. To ensure smooth communication with both our domestic and international investors, I will share our latest updates in both Chinese and English.
John Lin: To ensure smooth communication with both our.
Kun Dai: Domestic and international investors, I will share our latest updates in both Chinese and English. In the second quarter of 2025, we delivered another strong set of results.
Speaker #5: 2025年二季度, 我们又取得了非常好的业务进展。零售销量达到一万零三百八十五台, 较去年同期增长百分之一百五十四。连续五个季度, 销售同比增长百分之一百四十。业务表现证明了商业模式具备持续高速的增长潜力。车辆的库存周转速度维持在三十天左右, 保持着高速车辆周转和良性的库存结构。客户满意度方面, 本季度NPS为六十五分, 连续五个季度维持在六十五左右的行业最高水平。
Speaker #4: In the second quarter of 2025, we delivered another strong set of results. Retail transaction volume reached ten thousand three hundred and eighty-five units, up one hundred and fifty-four percent year-over-year.
John Lin: Retail transaction volume reached 10,385 units, up.
Kun Dai: 154% year over year.
Speaker #4: This marks the fifth consecutive quarter with year-over-year growth above 140%, underscoring the strong and sustainable growth potential of our model.
John Lin: This marks the fifth consecutive quarter with year-over-year growth above 140%, underscoring.
Kun Dai: The strong and sustainable growth potential of our model.
Speaker #4: Inventory turnover also remained healthy at roughly thirty days, reflecting our efficient operations and a balanced inventory structure. On customer satisfaction, our net promoter score was sixty-five this quarter, maintaining the highest level in the industry for five consecutive quarters.
John Lin: Inventory turnover also remained healthy at roughly.
Kun Dai: 30 days, reflecting our efficient operations and a balanced inventory structure.
John Lin: On customer satisfaction, our net promoter score.
Kun Dai: Was 65 this quarter, maintaining the highest level in the industry for five consecutive quarters. Over the past few years, we have built a standardized management and operating system in our flagship superstores in Xi’an and Zhengzhou. This framework enables new locations to ramp quickly and efficiently.
Speaker #5: 我们过去几年在西安合肥超级卖场建立标准化管理运营体系, 帮助我们新卖场的运营迅速走上轨道。武汉新卖场在今年二月底试营业以来, 业务的爬升和管理成熟速度超出了预期。Uxin大卖场模式所提供的一站式购车体验很受当地消费者的欢迎。从三月份两百五十台零售库存规模起步, 武汉卖场一直保持着三十天左右的销售周转。九月份的零售销量预计接近一千四百台, 并还在持续爬升中。相应地, 我们在收车端的能力也经受住了检验, 多元化的车源渠道整合、精准的收车报价能力, 加上整备工厂的流畅运转, 确保稳定而充足的车辆供给。销量大幅增长的同时, 武汉卖场的利润水平也在快速提升, 运营起步阶段的亏损要小于西安和合肥。
Speaker #4: Over the past few years, we have built a standardized management and operating system in our flagship superstores in Xi'an and Hefei. This framework enables new locations to ramp up quickly and efficiently.
Speaker #4: Our Wuhan superstore, which opened at the end of February, has performed well above expectations in both business ramp-up and operational maturity. The one-stop used car experience offered by our large-scale superstore model has been warmly received by local consumers.
John Lin: Our Wuhan superstore, which opened at the
Kun Dai: End of February has performed well above expectations in both business ramp up and operational maturity.
John Lin: The one-stop used car experience offered.
Kun Dai: By our large-scale superstore model has.
John Lin: Been warmly received by local consumers, starting with an initial retail inventory of.
Speaker #4: Starting with an initial retail inventory of two hundred and fifty units in March, the Wuhan store has consistently sustained approximately thirty-day inventory turnovers. By September, the store's retail transaction volume is expected to reach around fourteen hundred, as is momentum continues to build.
Kun Dai: 250 units in March, the Wuhan store has consistently sustained approximately 30-day inventory turnovers. By September, the store's retail transaction volume.
John Lin: Is expected to reach around 1,400 as.
Kun Dai: Its momentum continues to build on.
Speaker #4: On the sourcing side, our capabilities have been thoroughly tested and proven. We have integrated diverse vehicle acquisition channels, improved pricing procedures, and ensured smooth operations at our reconditioning facilities.
John Lin: Sourcing side, our capabilities have been thoroughly tested and proven. We have integrated diverse vehicle acquisition channels, improved pricing precision, and ensured smooth operations at our reconditioning facilities. Together, these strengths provide a stable, sufficient vehicle supply.
Speaker #4: Together, these strengths provide a stable, sufficient vehicle supply. As such, profitability at the Wuhan store is improving quickly alongside its rapid sales growth. Compared with our superstores in Xi'an and Hefei, startup losses in Wuhan have been meaningfully smaller.
Kun Dai: As such, profitability at the Wuhan store is improving quickly alongside its rapid sales growth.
John Lin: Compared with our superstores in Xi’an.
Kun Dai: Hefei startup losses in Wuhan have been meaningfully smaller. At the same time, the ramp up.
Speaker #5: 同时, 我们也通过武汉卖场的展业, 进一步强化精细化运营的能力, 完善卖场经营的方法论。首先是各项数字化管理系统和能力的持续提升, 结合实际经营所获得的更多真实交易数据, 优化定价、整备、获客等自研引擎。以更快、适应新的市场环境, 第二是业务服务流程的不断精进, 保障我们客户基数快速扩大的同时, 仍然可以很好地实现与客户价值为根本的经营理念。第三, 人才培养的模式也在逐渐完善, 让新卖场的员工可以更快具备足够的专业性和服务能力, 适应业务的高速发展, 也为未来更多新卖场展业做好人才储备。此外, 我们也在积极探索AI技术的运用于业务运营之中, 以期在未来发挥更好的作用。
Speaker #4: At the same time, the ramp-up of our Wuhan superstore has also enabled us to further improve our operational precision and enhance our superstore model.
John Lin: Of our Wuhan superstore has also enabled.
Kun Dai: Us to further improve our operational precision.
John Lin: We enhance our superstore model. First, we have continued to improve the.
Speaker #4: First, we have continued to improve the capabilities of our digital management system, drawing on real transaction data from daily operations to fine-tune our in-house engines for pricing, reconditioning, and customer acquisition.
Kun Dai: Capabilities of our digital business management platform, drawing on real transaction data from daily operations.
John Lin: To fine-tune our in-house engines for pricing, reconditioning, and customer acquisition, allowing.
Speaker #4: Allowing us to adapt more swiftly to evolving market conditions. Second, we're continuously optimizing service workflows to ensure that even as our customer base expands rapidly, we remain firmly rooted in our core operating philosophy of delivering customer value.
Kun Dai: Us to adapt more swiftly to evolving market conditions.
John Lin: Second, we're continuously optimizing service workflows to.
Kun Dai: Ensure that even as our customer base.
John Lin: Expands rapidly, we remain firmly rooted in.
Kun Dai: Our core operating philosophy of delivering customer value.
Speaker #4: Third, we have also been refining our talent development framework to help new store employees grow professional competence and service capabilities more quickly, supporting rapid business growth while preparing a solid talent pipeline for future expansion.
John Lin: Third, we have also been refining our.
Kun Dai: Talent development framework to help new store employees build professional competence and service capabilities more quickly, supporting rapid business growth.
John Lin: Preparing a solid talent pipeline for future expansion. Additionally, we are actively exploring the integration.
Speaker #4: Additionally, we are actively exploring the integration of AI technologies into our business operations to unlock greater efficiency and scalability over time.
Kun Dai: Of AI technologies into our business operations.
John Lin: To unlock greater efficiency and scalability over time.
Speaker #5: 新卖场的布局也在按计划稳步推进中。Uxin郑州大卖场已于九月二十七日开始正式营业, 该卖场规划建筑面积约为十五万平米, 最大可容纳约五千台车辆展售, 预计西安、合肥、武汉后开业的第四家大卖场。作为中国中部地区的交通枢纽城市, 郑州拥有超过一千三百万的常住人口, 五百万台的汽车保有量, 二手车交易规模和活跃程度位居全国前十。具备运营超大规模二手车卖场的绝佳条件, 郑州卖场的开业将能为更多的消费者提供优质的二手车产品和专业的服务, 并大幅提升Uxin在河南的市场影响力。
Speaker #4: Our new store expansion is progressing steadily as planned. On September twenty-seventh, we officially opened our Zhengzhou superstore. With a planned floor area of approximately one hundred and fifty thousand square meters, the facility can accommodate up to five thousand vehicles on display and for sale.
Kun Dai: Our new store extension is progressing steadily as planned.
John Lin: On September 27, we officially opened our Zhengzhou superstore. With a plant floor area of approximately.
Kun Dai: 150,000 square meters, the facility can accommodate up to 5,000 vehicles on display and for sale. This is our fourth large-scale superstore.
Speaker #4: This is our fourth large-scale superstore, following Xi'an, Hefei, and Wuhan. Zhengzhou is a major transportation hub in central China. With a resident population of more than thirteen million and over five million registered vehicles, the city ranks among the top ten nationwide in used car transaction scale and activity, making it an ideal location for a large-scale superstore.
John Lin: Following Xi’an, Hefei and Wuhan, Zhengzhou is a major transportation hub in central China. With a resident population of more than 13 million and over 5 million registered.
Kun Dai: Vehicles, the city ranks among the top 10 nationwide in used car transaction scale and activity, making it an ideal location for a large-scale superstore.
Speaker #4: With this opening, we can serve more consumers in the region with high-quality vehicles and professional services, while significantly strengthening our market presence in Henan Province.
John Lin: With this opening, we can serve more.
Kun Dai: Consumers in the region with high-quality vehicles and professional services, while significantly strengthening our market presence in Hunan Province. Looking at the industry, China's used car market has been heavily affected in recent years by aggressive price competition in the new car segment.
Speaker #5: 过去几年, 中国二手车行业受到新车市场激烈的价格战影响很大。但我们欣喜地看到, 随着中国政府一系列行业指导的出台, 新车市场的竞争日趋规范, 恶性价格竞争告一段落。武汉卖场通过六个月的经营, 也进入毛利提升的阶段, 展望第三季度, 我们的零售销量预计保持高增长趋势, 同比增长预计在百分之一百二十以上。盈利水平也会显著提升, 结合前三季度的业务增长, 我们预计二零二五年全年的零售销量增长会在百分之一百三十左右。
Speaker #4: Looking at the industry, China's used car market has been heavily affected in recent years by aggressive price competition in the new car segment. We are encouraged that, following a series of policy guidelines introduced by the Chinese government, competition in the new car market has moderated and the destructive price war has effectively ended.
John Lin: We are encouraged that following a series.
Kun Dai: Of policy guidelines introduced by the Chinese.
John Lin: Government competition in the new car market.
Kun Dai: Has moderated and the destructive Triforce have effectively ended.
Speaker #4: After six months of operation, our Wuhan superstore has entered a phase of margin improvement. Looking ahead to the third quarter, we expect our retail transaction volume to remain on a strong growth trajectory, with year-over-year growth of over one hundred and twenty percent, and a significant improvement in profitability.
John Lin: After six months of operation, our Wuhan superstore has entered a phase of margin improvement.
Kun Dai: Looking ahead to the third quarter, we.
John Lin: Expect our retail transaction volume to remain.
Kun Dai: On a strong growth trajectory with year-over-year growth of over 120% and a significant improvement in profitability. Based on the momentum across the first.
Speaker #4: Based on the momentum across the first three quarters, we anticipate our full year twenty twenty-five retail transaction volume growth to reach approximately one hundred and thirty percent year-over-year.
John Lin: Three quarters, we anticipate our full year 2025 retail transaction volume growth to reach.
Kun Dai: Approximately 130% year over year.
Speaker #5: 我今天先分享到这里, 接下来我们的CFO John会为大家展示财务上的情况。John, please.
Speaker #4: With that, I will turn the call over to our CFO to walk you through the financial results. John, please.
John Lin: With that, I will turn the call.
Kun Dai: Over to our CFO to walk you through.
John Lin: Through the financial results.
Kun Dai: John, please. Okay, thank you, Kun Dai. Hello everyone. Since we have both domestic and international investors participating today, we will continue to present the company's performance in both Chinese.
Speaker #6: Okay, 感谢Vijay, 大家好。因为同时有国内国外的投资者参会, 那我们会用中文和英文与大家分享公司的业绩情况。
Speaker #4: Thank you, Vijay. Hello, everyone. Since we have both domestic and international investors participating today, we will continue to present the company's performance in both Chinese and English to better communicate with all of you.
John Lin: English to better communicate with all of you.
Speaker #6: 本季度我们的零售销量是一万三百八十五台, 同比增长百分之一百五十四, 环比增长百分之三十八。零售销量处在高速增长的轨道。
Speaker #4: In the second quarter, our retail transaction volume reached ten thousand three hundred and eighty-five units, representing a one hundred and fifty-four percent increase year-over-year, and a thirty-eight percent increase quarter over quarter.
Kun Dai: In the second quarter, our retail transaction volume reached 10,385 units, representing a 154% increase year over year and a 38% increase quarter over quarter, demonstrating that our retail business remains firmly on a path of rapid growth. Retail revenue for the quarter totaled RMB 610 million, up 87% year over year and 31% quarter over quarter.
Speaker #4: Demonstrating that our retail business remains firmly on a path of rapid growth.
Speaker #6: 本季度的零售收入总额是六点一亿人民币, 同比增长百分之八十七, 环比增长百分之三十一。零售车辆的平均售价(ASP)是五点九万元, 上个季度是六点二万元, 去年同期为七点九万元。那销量大幅增长, 受到了车价下降对收入水平的影响。那我们的目前的车辆库存满足绝大部分消费者的购车需求。那单车平均的售价呢, 我们看到也处于相对合理的水平, 预计ASP会维持稳定。
Speaker #4: Retail revenue for the quarter totaled six hundred and ten million RMB, up eighty-seven percent year-over-year and thirty-one percent quarter over quarter. The average selling price or ASP for retail vehicles was fifty-nine thousand RMB, compared to sixty-two thousand RMB in the prior quarter and seventy-nine thousand RMB in the same period last year.
John Lin: The average selling price, or ASP, for.
Kun Dai: Retail vehicles was RMB 59,000, compared to.
John Lin: RMB 62,000 in the prior quarter and RMB 79,000 in the same period last year.
Speaker #4: While ASP declined as we shifted toward a more affordable inventory mix, the strong growth in transaction volume more than offset the pricing impact and drove our overall revenue expansion.
Kun Dai: While ASV declined as we shifted toward a more affordable inventory mix, the strong growth in transaction volume more than offset.
John Lin: The pricing impact drove our overall revenue expansion. Our current inventory structure is well aligned.
Speaker #4: Our current inventory structure is well aligned with mainstream consumer demand, and we believe pricing has now stabilized at a rational level. As such, we expect ASP to remain relatively steady in the near term.
Kun Dai: With mainstream consumer demand and we believe pricing has now stabilized at a rational level. As such, we expect ASC to remain relatively steady in the near term. Turning to our wholesale business, our wholesale transaction volume was 1,221 units in the.
Speaker #6: 车辆批售方面, 二季度的批售销量为一千二百二十一台, 同比下降百分之十九, 环比增长百分之七十。批售总收入是两千九百九十万元, 综合零售和批售, 二季度的总收入是六点五八亿人民币, 同比增长百分之六十四, 环比增长百分之三十一。
Speaker #4: Turning to our wholesale business, our wholesale transaction volume was one thousand two hundred and twenty-one units, in the second quarter. Representing a nineteen percent decrease year-over-year, but a seventy percent increase quarter over quarter.
John Lin: Second quarter, representing a 19% decrease year.
Kun Dai: Over year, but a 70% increase quarter over quarter.
Speaker #4: Total wholesale revenue was twenty-nine point nine million RMB, combining both retail and wholesale, total revenue for the quarter reached six hundred and fifty-eight million RMB.
John Lin: Total wholesale revenue was RMB 29.9 million, combining both retail and wholesale. Total revenue for the quarter reached RMB 658 million, representing a 64% increase year.
Speaker #4: Representing a 64% increase year-over-year and a 31% increase quarter-over-quarter.
Kun Dai: Over year and a 31% increase quarter over quarter. Gross margin for the quarter was 5.2%.
Speaker #6: 本季度毛利率为百分之五点二, 较去年同期的百分之六点四下降一点二个百分点。那较一季度的百分之七下降一点八个百分点, 这主要是由于新车市场的价格战挤压了二手车市场整体的利润水平, 以及我们今年二月开业的武汉卖场仍然处于运营的初期阶段, 那毛利率尚处于一个逐步爬坡的过程。这两个因素的影响并不会持续到三季度。我们会在三季度看到毛利率反弹到百分之七点五左右的水平。
Speaker #4: Growth margin for the quarter was five point two percent, down one point two percentage points from six point four percent a year ago, and down one point eight percentage points from seven percent in the prior quarter.
John Lin: Down 1.2 percentage points from 6.4%.
Kun Dai: Year ago and down 1.8 percentage points.
John Lin: From 7% in the prior quarter.
Speaker #4: This decline was primarily due to the price war in the new car segment, which has exerted margin pressure on the used car market, as well as the early-stage ramp-up of our Wuhan superstore, which opened in February and is still in the process of scaling its profitability.
Kun Dai: This decline was primarily due to the.
John Lin: Price war in the new car segment.
Kun Dai: Which has exerted margin pressure on the used car market as well as the early stage ramp up of our Wuhan.
John Lin: Superstore, which opened in February, is.
Kun Dai: Still in the process of scaling its profitability.
Speaker #4: However, we do not expect these factors to impact growth margin in the third quarter, and we anticipate seeing a rebound to around 7.5%.
John Lin: However, we do not expect these factors to impact gross margin in Q3, and we anticipate a rebound to around 7.5%.
Speaker #6: 武汉新卖场在业务和人员准备方面也增加了一些整体上费用的支出, 本季度经调整后的一倍大亏损是一千六百五十万人民币, 同比减亏百分之五十一。
Speaker #4: The increase in operating expenses this quarter was primarily related to the initial ramp-up of our Wuhan superstore, including investments in staffing and infrastructure. As a result, our adjusted EBITDA loss for the quarter was ¥16.5 million, representing a substantial 51% reduction year-over-year.
Kun Dai: The increase in operating expenses this quarter was primarily related to the initial ramp up of our Wuhan superstore, including investments in staffing and infrastructure.
John Lin: As a result, our adjusted EBITDA loss for the quarter was RMB 16.5 million, representing a substantial 51% reduction year over year.
Speaker #6: 展望二零二五年三季度, 我们预期零售销量会在一万三千五百台到一万四千台, 年比年同比增长会接近百分之一百三。我们的总收入预期在八百三十万, 在八点三亿人民币到八点六亿人民币之间。我们的毛利率会恢复到七千五百分之七点五左右的水平。
Speaker #4: Looking ahead to the third quarter of twenty twenty-five, we expect retail transaction volume to be in the range of thirteen thousand and five hundred to fourteen thousand units, representing year-over-year growth of over one hundred and thirty percent.
Kun Dai: Looking ahead to the third quarter of Q3.
John Lin: 2025, we expect retail transaction volume to.
Kun Dai: Be in the range of 13,500 to 14,000.
John Lin: 14,000 units, representing year over year growth of over 130%. Total revenue is expected to be between RMB 830 million and RMB 860 million, with gross margin recovering to approximately 7.5%.
Speaker #4: Total revenue is expected to be between eight hundred and thirty million RMB and eight hundred and sixty million RMB, with growth margin recovering to approximately seven point five percent.
Speaker #6: 以上就是我们今天准备和大家分享的内容, 谢谢大家, 我们可以开始问答环节, 谢谢。
Speaker #4: That concludes our prepared remarks for today. Thank you, everyone. Operator, we're now ready to begin the Q&A session.
Kun Dai: That concludes our prepared remarks for today. Thank you, everyone. Operator, we're now ready to begin the Q&A session.
Speaker #3: Thank you, and we will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone.
Operator: Thank you. We will now begin the Question and Answer session. To ask a question, you may press Star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star then two. At this time, we will pause for a moment to assemble our roster. Our first question today will come from Faye Dai of TF Securities. Please go ahead. Hello Kun Dai.
Speaker #3: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.
Speaker #3: At this time, we will pause for a moment to assemble our roster. And our first question today will come from Fei Dai of TF Securities.
Speaker #3: Please go ahead.
Speaker #7: Hello, Vijay. ?????????????????????????????????????????????????????????????????? Congratulations on the company's strong sales momentum and continued high growth trajectory. With new superstores opening at such a rapid pace, how do you balance short-term profitability pressures with your expansion needs?
[Analyst 2]: Congratulations on the company's strong sales momentum and continued high growth trajectory. With new superstores opening at such rapid pace, how do you balance short term profitability pressures with your expansion needs? Will you need additional financing?
Speaker #7: Will you need additional financing? Thank you.
[Analyst 1]: Thank you.
Speaker #6: 谢谢大家的提问, 这个问题由我来回答。
Speaker #4: Thank you for your question. Let me take this one.
Kun Dai: Thank you for your question. Let me take this one, okay? The rapid rollout and ramp up of our new superstores significantly strengthen our market presence in the cities where we expand and also help us build out a nationwide built network. This carries major strategic importance for us. Now, on balancing profitability with extension speed.
Speaker #6: Okay, 新卖场的快速展业和成熟将大幅增强我们在展业城市的市场影响力。那也会帮助我们由点到面的去完善全国范围内的销售网络。那对我们来讲是有一个非常大的战略意义的。
Speaker #4: The rapid rollout and ramp-up of our new superstore significantly strengthened our market presence in the cities where we expanded and also helped us build out a nationwide sales network.
Speaker #4: This carries major strategic importance for us.
Speaker #6: 对于盈利水平和扩张速度的平衡, 首先我想说的是, 我们肯定不会进行无序的扩张, 所有的新卖场的展业都会进行一个细致的业务和财务的规划。当然, 只要是新卖场投入运营, 短期的盈利就会肯定会有压力。因此呢, , , , , 我们会进一步提升标准化和高质量的库存水平。那我们可以通过数字化管理系统的不断完善和人员组织效率的不断提高, 来降低这个新卖场在运营前期的成本压力和亏损的规模。这样可以使卖场达到盈亏平衡的时间缩短, 尽快达到盈亏平衡的状态。
Speaker #4: Now, on balancing profitability with expansion speed, I want to emphasize that we will never pursue expansion blindly. Every new superstore is carefully planned both from a business and financial perspective.
John Lin: I want to emphasize that we will.
Kun Dai: Never pursue extension blindly.
John Lin: Every new superstore is carefully planned both from a business and financial perspective.
Speaker #4: That said, once a new store begins operations, there will be some short-term profitability pressure to mitigate this. We are focused on raising the level of standardization and high-quality replication across stores.
Kun Dai: That said, once a new store begins operation, there will be some short-term profitability pressure.
John Lin: To mitigate this, we are focused on.
Kun Dai: Raising the level of standardization and high-quality replication across stores.
Speaker #4: By further upgrading our digital management systems and improving organizational efficiency, we can reduce early-stage cost pressure and losses, and accelerate the time to break even.
John Lin: By further upgrading our digital management systems and improving organizational efficiency, we can reduce.
Kun Dai: Early stage cost pressure and losses, and accelerate the time to break even.
Speaker #6: 财务上呢, 我们每展业一个新卖场, 大概需要八百万到一千万美金, 其中两百万美金是工厂设备和开业的准备, 其余都是用于库存车辆的提升。那在目前成熟的一个运营的体系下, 一个新卖场从开业到盈亏平衡大概需要再到成熟期, 整体需要一个两到三年的时间。那每个成熟状态下的卖场每年可以支持一个新卖场的开业。因为我们目前成熟期卖场的数量还不多, 那未来的两到三年内, 的确还需要通过小步快跑的股权融资的方式来支持新卖场的这个快速的拓展展业。
Operator: Taiwan.
[Analyst 1]: Yamatisha.
Speaker #4: From a financial perspective, opening a new superstore requires about $8 million to $10 million, of which roughly $2 million is allocated to factory equipment and store preparation.
Kun Dai: From a financial perspective, opening a new superstore requires about $8 million to $10 million, of which roughly $2 million.
John Lin: Is allocated to factory equipment and store.
Kun Dai: Preparation, with the rest mainly for inventory buildup. Under our current operating model, it typically takes two to three years for a new superstore to reach break even and then maturity.
Speaker #4: With the rest mainly for inventory build-up. Under our current operating model, it typically takes two to three years for a new superstore to reach break-even and then maturity.
Speaker #4: Once mature, each store can generate enough profits to support the launch of another new store. Since our number of mature stores is still limited, we do plan to rely on measured incremental equity financing to support rapid expansion over the next two to three years.
John Lin: Once mature, each store can generate enough profits to support the launch of another new store. Since our number of mature stores is still limited, we do plan to rely.
Kun Dai: On measured incremental equity financing to support rapid expansion over the next two to three years. Given that our business has consistently delivered over 100% year over year growth, and that we are seeing early signs of recovery in capital markets, we are not overly concerned about funding.
Speaker #6: 我们的业务表现维持着年比年同比增长百分之一百的增长趋势。那资本市场目前表现处于一个底部反转的趋势上, 在资金问题上我们并不特别担心。我们会按照一个计划的节奏去募集充足的资金来支持我们业务的发展。
Speaker #4: Given that our business has consistently delivered over one hundred percent year-over-year growth and that we are seeing early signs of recovery in capital markets, we are not overly concerned about funding.
Speaker #4: We are confident in our ability to raise sufficient capital in line with our expansion plans.
John Lin: We are confident in our ability to.
Kun Dai: Raise sufficient capital in line with our expansion plan.
Speaker #6: 这是我对这个问题的回答, 谢谢。
Speaker #7: 谢谢。
Speaker #3: And again, if you would like to ask a question, please press star and then one. Our next question today will come from Wenjie Dai.
Operator: If you would like to ask a question, please press Star and then one. Our next question today will come from Wenjie Dai of SWS Research. Please go ahead.
Speaker #3: Of SWS Research, please go ahead.
Speaker #6: 好的, 谢谢管理层。我是申办汽车分析师戴文杰。那首先非常恭喜公司取得这样的优秀的成绩, 尤其是在大环境不太好的情况下。那我这里有两个问题, 我想先请教第一个问题, 就是刚刚管理层在电话会中有分享武汉的新卖场开业后其实运营状态非常好, 销量提升的速度其实比合肥和西安都会快很多。那想问一下公司具体做了哪些差异化的举措? The management mentioned earlier that the Wuhan superstore has ramped up very successfully, much faster than the Hefei and Xi'an.
[Analyst 1]: The management mentioned earlier that the Wuhan superstore has ramped up very successfully, much faster than the Hefei and Xi’an.
[Analyst 3]: An.
Speaker #6: Could you share what information measures were taken in Wuhan? Thank you. 谢谢文杰。我是Vijay。我来回答这个问题。我现在不仅仅是公司的CEO嘛, 然后这个同时我也兼任武汉大卖场的总经理。这个所以整个清理了武汉卖场从筹备到现在的这个全过程。
[Analyst 1]: Could you share what information? Different Asian measures were taken. Thank you.
Speaker #4: Sure, thank you for the question. This is Vijay. I'll take this one. In addition to being the CEO of the company, I'm also the General Manager of the Wuhan superstore.
John Lin: Sure.
Kun Dai: Thank you for the question. This is Kun Dai. I'll take this one. In addition to being the CEO of.
John Lin: The company. I'm also the General Manager.
Kun Dai: Of the Wuhan superstore.
Speaker #4: So I've personally experienced the entire journey from preparation to selling our first car to achieving today's results.
John Lin: I've personally experienced the entire journey from preparation to selling our first part to achieving today's results.
Speaker #6: 总体来说, 我觉得是三个方面, 然后呢, 这个促进了武汉的业务发展。那第一方面呢, 是数字化和业务管理系统经历了原来两个卖场四年多的打磨, 目前已经高度成熟了, 然后呢, 具备一个快速复制的能力。数字化的能力还具备正向的飞轮效应, 会不断地自我进化, 比如我们现在用的这个智能定价系统, 集合新的实际上是海量的真实二手车交易的成交数据。这只有我们自己买卖的车辆才会真正掌握, 其实很难是从外部获得。随着我们交易量的提升, 获得的数据越来越多, 定价的准确性也在提高。那车辆买卖的效率也会越高。因此定价系统积累了西安和合肥的真实交易数据训练后, 在武汉市场的实战中适应性更强了。
[Analyst 1]: Mutang.
Speaker #4: At summary, the reasons in three areas: first, our digital business management system has been refined over more than four years of operations at the Xi'an and Hefei superstores.
Kun Dai: I'd summarize the reasons in three areas.
John Lin: First, our digital business management platform has been refined over more than four years.
Kun Dai: Of operations at the Xi’an Hefei superstores.
Speaker #4: It is now highly mature and capable of being replicated quickly. These digital capabilities also benefit from a self-reinforcing flywheel effect; take our intelligent pricing system, for example.
John Lin: It is now highly mature and capable.
Kun Dai: Of being replicated quickly.
John Lin: These digital capabilities also benefit from a.
Kun Dai: Self-reinforcing quality flywheel effect.
John Lin: Take our intelligent pricing system, for example.
Speaker #4: It's powered by a vast database of real transaction data, something you can only truly accumulate if you're directly engaged in buying and selling vehicles yourself.
Kun Dai: It's powered by a vast database of real transaction data, something you can only truly accumulate if you're directly engaged in buying and selling vehicles yourself.
Speaker #4: The more transactions we do, the more accurate our pricing becomes, which in turn improves efficiency in both sourcing and sales. Thanks to the training on Xi'an and Hefei data, this system has adapted very effectively in the Wuhan market.
John Lin: The more transactions we do, the more.
Kun Dai: accurate our pricing becomes, which in turn improves efficiency in both sourcing and sales.
John Lin: Thanks to the training on CI.
Kun Dai: Hefei data, this system has adapted very effectively in the Wuhan market. Second, our business processes are now fully.
Speaker #6: 那第二点, 第二、第三我就合起来讲。第二、第三呢, 一个是业务流程的标准化, 一个呢, 是这个组织体系和人才培养的这个标准化。那卖场管理团队呢, 这个经验啊, 是越来越丰富, 因为很多人我们从西安这个就不少管理层从西安过来, 那么可以减少一些不必要犯的错误。那么以前西安和合肥走的弯路在这边没走过。那组织生产销售的速度也就越快。那随着卖场的展业, 那人员培养的周期呢, 也在缩短。我们每一个卖场在经过一到两年的运营后, 就会培养出这个一个可这个复制的、一直全新的管理队伍, 然后呢, 以此来支持我们更多新卖场的展业。
Speaker #4: Second, our business processes are now fully standardized, and our organizational and talent development systems are increasingly well established. The management team at Wuhan brought rich experience, which helped avoid repeating unnecessary mistakes.
John Lin: Standardized and our organizational and talent development framework.
Kun Dai: Systems are increasingly well positioned.
John Lin: Established the management team at Wuhan.
Kun Dai: Rich experience which helped avoid repeating unnecessary mistakes, thereby accelerating both production and sales execution. At the same time, the talent development cycle continues to shorten.
Speaker #4: Thereby, accelerating both production and sales execution. At the same time, the talent development cycle continues to shorten. Typically, within one to two years of operation, each superstore is able to develop one to two new management teams to support future expansion.
John Lin: Typically within one to two years.
Kun Dai: Operation, each superstore is able to develop.
John Lin: One to two new management teams to support future extent.
Speaker #6: 以上是我的回答。我也相信呢, 随着卖场的逐步展业, 新卖场的运营站在老卖场的经验基础上, 做起来会越来越流畅。
Speaker #4: That's my answer. We are confident that as we open more superstores, each new location will build upon the proven experience of earlier ones.
Kun Dai: That's my answer. We're confident that as we open more.
John Lin: Superstores, each new location will build upon.
Kun Dai: The proven experience of earlier ones.
Speaker #4: Making operations smoother and more efficient over time.
John Lin: Making operations smoother and more efficient over time.
Speaker #6: So, 感谢这个Vijay的回答。那我第二个问题是这样, 就是我们第四个卖场这个郑州卖场也刚刚开业啊, , , , , , 想请管理层聊一下如何看待郑州的竞争环境。武汉的城中经验能否被复制到郑州或者其他后续的新的卖场? 郑州New Superstore are you just opened? How does management view the competitive landscape in Zhengzhou? Can the success in Wuhan be replaced there, and in other new superstores?
[Analyst 1]: New superstore just opened. How did management view the competitive landscape in Zhengzhou? Can the success in Wuhan be replicated there? The other new superstores? Thank you.
Speaker #6: Thank you.
Speaker #8: 好的, 你这个郑州的竞争环境确实是比较激烈的。那么这个其实郑州有不少车商的经营理念也比较先进。那有一些友商的库存规模也超过了五百台。但与此同时啊,
Speaker #6: 郑州的市场规模更大, 是一个超过一千三百万常住人口、超过五百万台汽车保有量的城市, 也是全国二手车交易最活跃的城市之一。
Speaker #4: The competitive environment in Zhengzhou is indeed intense. There are a number of dealers there with relatively advanced operating practices, and some dealers have inventories of more than 500 vehicles.
John Lin: The competitive environment in Zhengzhou is indeed intense. There are a number of dealers there.
Kun Dai: With relatively advanced operating practices, and some dealers have inventories of more than 500 vehicles.
Speaker #4: At the same time, Zhengzhou is a much larger market, with a population of over 13 million and more than 5 million registered vehicles. It is one of the most active used car trading hubs in China.
John Lin: At the same time, Zhengzhou is a.
Kun Dai: Much larger market with a population of over 13 million and more than 5 million registered vehicles, and is one of the most active used car trading hubs in China. Currently, players in the market adopt different.
Speaker #6: 从目前来看, 就是市场的摸底状态, 我们和其他的这些车商经营模式各有不同, 定位其实也是很有差异的。我们大卖场的模式选择更丰富、性价比更高, 质量更有保障, 服务更便捷。在购物体验上, 我们评估是领先于传统车商。那我们之前做过统计, 这个一百组到店客户, 我们的销售转化率大概在百分之四十以上。因此我们对自己的全链路强管控的业务模式是有信心的。我们有自己差异化的竞争优势所在, 也有我们自己擅长服务的目标客群。
Speaker #4: Currently, players in the market adopt different business models and target different positioning. Our superstore model stands out with a broader selection, better value for money, higher quality assurance, and a more convenient one-stop service experience.
John Lin: Business models and target different positioning.
Kun Dai: Our superstore model stands out with broader selection, better value-for-money, higher quality assurance, and a more convenient one stop service experience.
Speaker #4: On the customer side, for every one hundred customer groups visiting the store, over forty percent result in a purchase. This shows our business model with a strong omnichannel control, offers clear differentiation, and resonates well with our target customers.
John Lin: On the customer side, for every 100.
Kun Dai: Customer group visiting the store, over 40% results in a purchase.
John Lin: Thus chose our business model with a.
Kun Dai: Strong omnichannel control offers player differentiation and resonates well with our target customers. We will continue to analyze the Zhengzhou market carefully and prepare thoroughly to compete.
Speaker #6: 我们会积极稳健地去分析郑州的市场环境, 然后以最充足的准备来应对竞争。业务流程和系统也都已经这个足够成熟。我有信心郑州也会取得很好的成绩。未来几个产业城市其实也都是在中国城市汽车保有量前二十的名单, 市场条件非常好。那么我们对于将武汉卖场的成功复制到新卖场是很有信心的。
Speaker #4: We will continue to analyze the Zhengzhou market carefully and prepare thoroughly to compete. With our mature business processes and digital systems, we are confident that Zhengzhou can also achieve strong results.
John Lin: With our mature business processes and digital systems, we are confident that Zhengzhou can also achieve strong results. Looking further ahead, the cities we're targeting.
Speaker #4: Looking further ahead, the cities we're targeting for expansion are all among the top twenty in China by vehicle ownership, which provides very favorable market conditions.
Kun Dai: For expansion are all among the top.
John Lin: 20 in China by vehicle ownership, which provides very favorable market conditions. We are confident that the success.
Speaker #4: So we are confident that the success of Wuhan can be replicated in Zhengzhou and in our future new superstores.
Kun Dai: Of Wuhan can be replicated in Zhengzhou and in our future new superstores.
Speaker #6: 好, 以上是我的回答, 谢谢。
Speaker #4: That's my answer, thank you.
John Lin: That's my answer. Thank you.
Speaker #6: ???? management ???????????????????????
Speaker #3: At this time, we will conclude our question-and-answer session. I would like to turn the conference back over to Ali Wang for closing remarks.
Operator: At this time, we will conclude our question and answer session. I would like to turn the conference back over to Ally Wong for closing remarks.
Speaker #4: Thank you again for joining today's call and for your continued support of Uxin. We look forward to speaking with you again soon in the future.
Kun Dai: Thank you again for joining today's call and for your continued support and youth.
John Lin: We look forward to speaking to you.
Kun Dai: Again soon in the future.
Speaker #6: Okay, bye-bye.
[Analyst 1]: Okay, bye bye.
Operator: The conference has now concluded. We thank you for attending today's presentation. You may now disconnect your lines.