NASDAQ:UXIN Uxin Q3 2024 Earnings Report $4.47 -0.09 (-1.97%) Closing price 04:00 PM EasternExtended Trading$4.41 -0.06 (-1.34%) As of 05:57 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings History Uxin EPS ResultsActual EPS-$2.55Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AUxin Revenue ResultsActual Revenue$57.82 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AUxin Announcement DetailsQuarterQ3 2024Date4/25/2024TimeN/AConference Call DateThursday, April 25, 2024Conference Call Time8:00AM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Earnings HistoryCompany ProfilePowered by Uxin Q3 2024 Earnings Call TranscriptProvided by QuartrApril 25, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:01Good day, and welcome to the Yuxin Third Quarter Fiscal Year 20 24 Earnings Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Mr. Jack Wang. Operator00:00:34Please go ahead, Jack. Speaker 100:00:37All right. Thank you, operator. Hello, everyone. Welcome to Uxin's earnings conference call for the Q3 of fiscal year December 31, 2023. On the call with me today, we have TK, our Founder and CEO as well as Zhang Lin, our CFO. Speaker 100:00:53TK will review business operations and company highlights, followed by Zhang, who will discuss our financials and our guidance. They will both be available to answer your questions during the Q and A session that follows. 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 filings with the SEC. Now I'll turn the call over to our CEO, D. Speaker 100:01:27K. Please go ahead, sir. Hello, everyone. Thank you for joining us today. I'm pleased to reconnect with you all on the call. Speaker 100:01:53To facilitate communication with both domestic and international investors, I will share our company's latest progress in both Chinese and English. I will begin by reviewing the key highlights from this quarter before sharing the work we are currently engaged in and our plans for the future. In the Q3 of fiscal year 2024, from October to December 2023, the domestic new car market in China began another round of price reductions which also impacted the used car industry. Despite these challenging external conditions, we continue to see growth in our retail business, with total retail sales for the quarter reaching 3,081 vehicles. This represents a 30 4.7% increase quarter over quarter and a 5.2% increase year over year. Speaker 100:03:35In addition, our superstores are operating more smoothly than ever, maintaining a highly efficient turnover of vehicles of less than 30 days and achieving an industry leading Net Promoter Score or NPS of over 60 for 8 consecutive quarters. Currently, we're focusing on enhancing the scalability of our profitability. It's worth noting that in January 2024, we achieved EBITDA profitability at a store level for the first time. We are confident that within the calendar year of 2024, we will reach EBITDA profitability at the company level as well. The diligent efforts of the past few months has advanced us significantly toward this goal. Speaker 100:04:48And today I'm pleased to share our progress in 3 major areas. Firstly, our vehicle sales system continued to evolve and mature maintaining a robust vehicle turnover rate. Despite the market's volatility in recent quarters, we have further enhanced our vehicle pricing capabilities, allowing us to rapidly adjust prices in response to market shifts ensuring that our pricing can always be competitive. The inherent branding strength of our physical superstores has also become increasingly evident and our comprehensive customer services has received wider recognition further boosting customer acquisition and sales conversions. During the intense new car price competition in the 1st 3 months of 2024, our store operations demonstrated resilient with vehicle turnover remaining stable despite market fluctuations. Speaker 100:07:06Secondly, while maintaining vehicle turnover efficiency, our profitability has substantially increased. This improvement stems from our superior quality, service and branding over traditional car dealers, which enabled us to effectively achieve a favorable market level price differential for our vehicles. Additionally, leveraging our superstores, we have launched customized, diverse and cost effective value added products in collaboration with our supply chain partners. The penetration rate of financial products, insurance, accessories, extended warranties and maintenance services are rapidly increasing, which will contribute further to our gross margin in the future. Thirdly, we have conducted comprehensive business reviews and optimizations to initiate a new round of cost reduction and efficiency enhancements. Speaker 100:08:36In our retail operations, we have rigorously refined our processes and fully utilized digital management tools. Specifically, we have meticulously examined costs in all areas, optimized our workforce structure and enhanced the cost of efficiency ratio to improve the operating cash flow of our superstores. Notably following the spring festival we realigned our organizational structure to better meet the development needs of our superstores and executed a series of initiatives to further reduce costs and expenses. Starting from April, we expect these efforts to save us over RMB15 1,000,000 in our quarterly costs and expenses going forward. As you have seen, we implemented a cautious vehicle acquisition strategy in the past few quarters in response to the recent price wars in the new car market, which helped us maintain a relatively low inventory level. Speaker 100:10:16Now our pricing, sales and operational capabilities are very well equipped to manage market fluctuations effectively. So we have started to increase our inventory levels anticipating that our end of year on hand inventory will reach approximately 4,000 units which is around 3 to 4 times our Q3 inventory level. This expanded inventory will provide consumers with more options and enable us to achieve monthly EBITDA breakeven before September 2024 as well as company wide EBITDA profitability in the December quarter of 2024. Additionally as part of our strategic development plans we are on track to complete the site selection and operational preparation for 1 to 2 new superstores within 2024. This initiative will further strengthen our integrated network of online operations and offline superstores. Speaker 100:11:46Our business model has garnered significant recognition from local governments, especially following their visits to our Hefei and Xi'an superstores. Consequently, we have received active invitations from these regions to establish new superstores. We're currently advancing implementation plans with several cities, which will propel Yixin's nationwide expansion and drive business growth in the coming years. Earlier in March, the company launched a new round of financing in which I personally participated as an investor. And my personal commitments reflect my confidence in the substantial opportunities for development in China's East Car market, the competitive strength of Yixin's Superstore model and its robust growth trajectory, I am deeply committed to steering Yixin towards becoming a leader in China's used car industry. Speaker 100:13:13And with that, I would like to turn the call over to our CFO, John, to walk through the financial results. Thank you, Yitike, and hello, everyone. I will provide a closer look at our financial results from the Q3 of fiscal year 2024. As TK just highlighted, the Chinese automotive market in 2023 was characterized by multiple rounds of price wars and the market fluctuations had also impacted the used car sector. As our superstore model has become increasingly mature, our sales system has enhanced its capability to respond rapidly to market fluctuations enabling timely adjustments in vehicle pricing and sustaining high levels of vehicle turnover. Speaker 100:14:47From October to December 2023, even though our inventory levels were only half of what they were in the same period last year, we almost doubled our sales turnover rate, achieving a total retail transaction volume of 3,081 units. This represents a 35% increase quarter over quarter and a 5% increase year over year. Our total retail revenue for the 3rd quarter reached RMB319.2 million, a 28% increase from RMB248.9 million in the previous quarter. In response to the current economic conditions and market demand, we actively optimized our inventory structure. However, the heightened competition in the industry over recent quarters led to a reduction in the average selling price or ASP of our retail vehicles, which decreased from RMB112000 in the same year last year to RMB104000 this quarter. Speaker 100:16:41And in terms of wholesale, the 3rd quarter saw our transaction volume reached 1273 units, marking a 20% decrease quarter over quarter and 35% decrease year over year. The wholesale revenue declining to RMB82.2 million. As our superstore model is now operating at full effectiveness, we are increasingly focusing on our retail segment, which naturally reduces the proportion of our wholesale business. Considering these factors, our total revenues for the Q3 increased 15% to RMB410.5 million from RMB356.1 million in the 2nd quarter. Despite intensifying the competition within the industry this quarter, we successfully maintained a high vehicle turnover and a healthy industry structure, achieving a gross margin of 4.8%, up 1.4 percentage points from the previous quarter. Speaker 100:18:33However, as D. K. Just emphasized, our capacity to respond to market fluctuations has enhanced and our pricing adjustments have become more prompt. Consequently, we anticipate that gross margin will recover to about 6.5% in the upcoming quarter. With the increasing revenue contribution from value added services such as financing, insurance, accessories, maintenance and repairs, we are optimistic about achieving significant improvements in our gross margin going forward. Speaker 100:19:42Our total operating expenses for the 3rd quarter were RMB99.8 million. Through our diligent routine management, we continued to implement stringent cost and expense controls, achieving a stable level of operational expenditures in line with previous quarters. Moreover, we have recently completed a new round of organizational optimization and executed a series of initiatives to further reduce costs and expenses. Starting April, these adjustments will result in a monthly reduction of fixed expenses by RMB5 1,000,000 cumulating in a quarterly decrease of over RMB15 1,000,000. Our adjusted EBITDA loss for the quarter was RMB43.8 million, a decrease of RMB32.6 million from the adjusted EBITDA loss of RMB76.4 million in the same period last year, narrowing the loss by 43%. Speaker 100:21:06This also represents a 5% sequential reduction from the adjusted EBITDA loss of RMB45.9 million in the previous quarter. In addition, we closed an equity financing round in March, raising approximately US34.8 million dollars Our CEO, BK, has shown his commitment to our feature by personally investing in this run as well. These funds will be used to expand our inventory and targeting a 3 to 4 fold increase by the end of 2024 which we anticipate will significantly amplify our sales growth trajectory. There is still substantial potential for increased sales and profitability at our existing superstores. We have already achieved EBITDA profitability for our superstores as of January 2024. Speaker 100:22:49The improvement in vehicle turnover efficiency enhanced the margin profiles and the effective implementation of company wide cost reductions and efficiency gains will contribute to improved financial performance going forward. Are confident in achieving monthly EBITDA breakeven by September 2024 and attain company wide EBITDA profitability in the December quarter of 2024. Now moving on to the guidance for the Q4, January through March, which included the Chinese New Year holiday, is traditionally an off season for the used car industry. Nevertheless, we're maintaining a high level of sales turnover efficiency and we forecast a total retail transaction volume of approximately 3,100 units and wholesale transaction volume of about 900 units. We expect our total revenues to be between RMB300 1,000,000 to RMB320 1,000,000 with gross margin rebounding to above 6.5%. Speaker 100:24:24And that concludes our prepared remarks today. Operator, we're now ready for questions. Operator00:24:56At this time, we will pause momentarily to assemble our roster. And our first question today comes from the line of Fei Dye with TF Securities. Please go ahead. Speaker 200:25:40In the 1st 3 months of 2024, the Chinese car market has once again started an intense price war. Can you provide some insight into the impact of new car price war on the used car market and on UC? Thank you. Speaker 100:26:26Hi, this is D. K. Yan. I'll address that question. The price reduction trend in the new car market that began in 2023 have certainly exerted a twofold impact on the used car sector. Speaker 100:26:39Initially we observed a depreciation in the value of used car models parallel to the new car price drops. This was followed by sales stagnation of the affected used cars resulting in inventory depreciation which has definitely impacted the used car business. Throughout these cycles, dealerships armed with the most comprehensive market insights, the agility to respond promptly and the capacity to maintain high sales turnover has demonstrated the least impact and navigating through 2 waves of new card price reductions reductions in the periods of March to May and October to December of 2023, we have systematically strengthened our approaches and strategies to effectively manage market volatility. Since the BYD price reductions in late February this year, we have cataloged price changes for nearly 1,000 car models. Our operational data indicates that the ramifications of this year's price reductions on Yixin have substantially diminished compared to those experienced in 2023. Speaker 100:28:43Specifically, we performed very well in 2 particular areas. First, the most profound impact of new car price reductions is felt in the segment of low mileage used cars. Our current inventory structure is actually quite healthy and well curated featuring a relatively small portion of vehicles under 3 years old, while primarily targeting both ages between 3 10 years. Secondly, we maintained our sales efficiency at an exceptionally high level. Our in house pricing system is fine tuned to automatically monitor market trends ensuring the timely data collection on new car price fluctuations and rapid adjustments to our vehicle pricing. Speaker 100:29:51With an overall vehicle turnover of less than 30 days, we have substantially exceeded the industry norm, effectively mitigating the potential inventory depletion as a result of price decline. Furthermore, given the new cars are standardized products with transparent manufacturing and compliance costs, and considering that the net profit margins for many automakers now hover below 5%, there is a limit to the depth of new car price reduction. We expect the market will soon find a new balance which should lead to stabilization in the used car market. And relative to our current position, there is a significant opportunity to improve our profitability per vehicle. As market conditions level out, we foresee a smooth progression to stronger performance levels. Speaker 100:31:18And that's our answer to the first question. Operator, let's move on. Operator00:31:26The next question comes from the line of Gary Dvorchik with WTR. Please go ahead. Speaker 300:31:34Hi, good evening. We see that the Chinese government is currently promoting policies that encourage vehicle trade ins for newer models. Could you please discuss the specific impact of this policy on the used car industry and on your business operations? Speaker 100:32:24Hi, this is D. K. Who will address that question. The national government has indeed emphasized the development of the auto industry. Recently, we have observed that automobiles have ascended to become the primary economic pillar, overtaking real estate. Speaker 100:32:41The used car market plays a pivotal role in the entire lifecycle of a vehicle and is crucial in driving automotive consumption. Regarding the trade in subsidy policy you mentioned, this initiative encourages customers to upgrade their vehicles more frequently. This trend has brought a surge of well valued models into the used car market, enhancing the supply and positively impacting national used car transaction volumes. As a leader in China's used car industry, Yixin is at the forefront of supporting and facilitating the implementation of the trade in policy. We have partnered with local governments where our superstores operate to develop practical trade in programs. Speaker 100:34:14Our superstores act as the main platforms for these vehicle exchanges hosting a range of trading events. This strategy not only broadens our vehicle sourcing channels, but also boosts customer traffic at our superstores, which in turn further enhances our sales conversion opportunities. We view the trade in policy in China's auto industry as a long term initiative. There are numerous business models yet to be explored and we're optimistic about unlocking further potential for revenue and profit growth. And that will be our answer to the second question. Operator00:35:14This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Speaker 100:35:22All right. Thank you all again for joining today's call and for your continued support in Uxin as well. We look forward to speaking with you again very soon in the future. Thank you. Okay. Speaker 100:35:34Bye bye. Operator00:35:38The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallUxin Q3 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K) Uxin Earnings HeadlinesUxin Full Year 2024 Earnings: CN¥2.39 loss per share (vs CN¥64.67 loss in FY 2023)May 2, 2025 | finance.yahoo.comUxin Ltd (UXIN) Q4 2024 Earnings Call Highlights: Record Growth and Positive EBITDA Mark a ...May 1, 2025 | finance.yahoo.comBuffett’s favorite chart just hit 209% – here’s what that means for goldA Historic Gold Announcement Is About to Rock Wall Street For months, sharp-eyed analysts have watched the quiet buildup behind the scenes. 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Email Address About UxinUxin (NASDAQ:UXIN), an investment holding company, engages in the retail sale of vehicles in China. The company operates an e-commerce platform for buying and selling used cars. It also offers used-car acquisition, inspection, reconditioning, warehousing, pre-sales and after-sales, and various car-related value-added products and services, as well as warranty and repair, delivery, and title transfers and vehicle registration services. Uxin Limited was incorporated in 2011 and is headquartered in Beijing, China.View Uxin ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Disney Stock Jumps on Earnings—Is the Magic Sustainable?Archer Stock Eyes Q1 Earnings After UAE UpdatesFord Motor Stock Rises After Earnings, But Momentum May Not Last Broadcom Stock Gets a Lift on Hyperscaler Earnings & CapEx BoostPalantir Stock Drops Despite Stellar Earnings: What's Next?Is Eli Lilly a Buy After Weak Earnings and CVS-Novo Partnership?Is Reddit Stock a Buy, Sell, or Hold After Earnings Release? 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There are 4 speakers on the call. Operator00:00:01Good day, and welcome to the Yuxin Third Quarter Fiscal Year 20 24 Earnings Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Mr. Jack Wang. Operator00:00:34Please go ahead, Jack. Speaker 100:00:37All right. Thank you, operator. Hello, everyone. Welcome to Uxin's earnings conference call for the Q3 of fiscal year December 31, 2023. On the call with me today, we have TK, our Founder and CEO as well as Zhang Lin, our CFO. Speaker 100:00:53TK will review business operations and company highlights, followed by Zhang, who will discuss our financials and our guidance. They will both be available to answer your questions during the Q and A session that follows. 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 filings with the SEC. Now I'll turn the call over to our CEO, D. Speaker 100:01:27K. Please go ahead, sir. Hello, everyone. Thank you for joining us today. I'm pleased to reconnect with you all on the call. Speaker 100:01:53To facilitate communication with both domestic and international investors, I will share our company's latest progress in both Chinese and English. I will begin by reviewing the key highlights from this quarter before sharing the work we are currently engaged in and our plans for the future. In the Q3 of fiscal year 2024, from October to December 2023, the domestic new car market in China began another round of price reductions which also impacted the used car industry. Despite these challenging external conditions, we continue to see growth in our retail business, with total retail sales for the quarter reaching 3,081 vehicles. This represents a 30 4.7% increase quarter over quarter and a 5.2% increase year over year. Speaker 100:03:35In addition, our superstores are operating more smoothly than ever, maintaining a highly efficient turnover of vehicles of less than 30 days and achieving an industry leading Net Promoter Score or NPS of over 60 for 8 consecutive quarters. Currently, we're focusing on enhancing the scalability of our profitability. It's worth noting that in January 2024, we achieved EBITDA profitability at a store level for the first time. We are confident that within the calendar year of 2024, we will reach EBITDA profitability at the company level as well. The diligent efforts of the past few months has advanced us significantly toward this goal. Speaker 100:04:48And today I'm pleased to share our progress in 3 major areas. Firstly, our vehicle sales system continued to evolve and mature maintaining a robust vehicle turnover rate. Despite the market's volatility in recent quarters, we have further enhanced our vehicle pricing capabilities, allowing us to rapidly adjust prices in response to market shifts ensuring that our pricing can always be competitive. The inherent branding strength of our physical superstores has also become increasingly evident and our comprehensive customer services has received wider recognition further boosting customer acquisition and sales conversions. During the intense new car price competition in the 1st 3 months of 2024, our store operations demonstrated resilient with vehicle turnover remaining stable despite market fluctuations. Speaker 100:07:06Secondly, while maintaining vehicle turnover efficiency, our profitability has substantially increased. This improvement stems from our superior quality, service and branding over traditional car dealers, which enabled us to effectively achieve a favorable market level price differential for our vehicles. Additionally, leveraging our superstores, we have launched customized, diverse and cost effective value added products in collaboration with our supply chain partners. The penetration rate of financial products, insurance, accessories, extended warranties and maintenance services are rapidly increasing, which will contribute further to our gross margin in the future. Thirdly, we have conducted comprehensive business reviews and optimizations to initiate a new round of cost reduction and efficiency enhancements. Speaker 100:08:36In our retail operations, we have rigorously refined our processes and fully utilized digital management tools. Specifically, we have meticulously examined costs in all areas, optimized our workforce structure and enhanced the cost of efficiency ratio to improve the operating cash flow of our superstores. Notably following the spring festival we realigned our organizational structure to better meet the development needs of our superstores and executed a series of initiatives to further reduce costs and expenses. Starting from April, we expect these efforts to save us over RMB15 1,000,000 in our quarterly costs and expenses going forward. As you have seen, we implemented a cautious vehicle acquisition strategy in the past few quarters in response to the recent price wars in the new car market, which helped us maintain a relatively low inventory level. Speaker 100:10:16Now our pricing, sales and operational capabilities are very well equipped to manage market fluctuations effectively. So we have started to increase our inventory levels anticipating that our end of year on hand inventory will reach approximately 4,000 units which is around 3 to 4 times our Q3 inventory level. This expanded inventory will provide consumers with more options and enable us to achieve monthly EBITDA breakeven before September 2024 as well as company wide EBITDA profitability in the December quarter of 2024. Additionally as part of our strategic development plans we are on track to complete the site selection and operational preparation for 1 to 2 new superstores within 2024. This initiative will further strengthen our integrated network of online operations and offline superstores. Speaker 100:11:46Our business model has garnered significant recognition from local governments, especially following their visits to our Hefei and Xi'an superstores. Consequently, we have received active invitations from these regions to establish new superstores. We're currently advancing implementation plans with several cities, which will propel Yixin's nationwide expansion and drive business growth in the coming years. Earlier in March, the company launched a new round of financing in which I personally participated as an investor. And my personal commitments reflect my confidence in the substantial opportunities for development in China's East Car market, the competitive strength of Yixin's Superstore model and its robust growth trajectory, I am deeply committed to steering Yixin towards becoming a leader in China's used car industry. Speaker 100:13:13And with that, I would like to turn the call over to our CFO, John, to walk through the financial results. Thank you, Yitike, and hello, everyone. I will provide a closer look at our financial results from the Q3 of fiscal year 2024. As TK just highlighted, the Chinese automotive market in 2023 was characterized by multiple rounds of price wars and the market fluctuations had also impacted the used car sector. As our superstore model has become increasingly mature, our sales system has enhanced its capability to respond rapidly to market fluctuations enabling timely adjustments in vehicle pricing and sustaining high levels of vehicle turnover. Speaker 100:14:47From October to December 2023, even though our inventory levels were only half of what they were in the same period last year, we almost doubled our sales turnover rate, achieving a total retail transaction volume of 3,081 units. This represents a 35% increase quarter over quarter and a 5% increase year over year. Our total retail revenue for the 3rd quarter reached RMB319.2 million, a 28% increase from RMB248.9 million in the previous quarter. In response to the current economic conditions and market demand, we actively optimized our inventory structure. However, the heightened competition in the industry over recent quarters led to a reduction in the average selling price or ASP of our retail vehicles, which decreased from RMB112000 in the same year last year to RMB104000 this quarter. Speaker 100:16:41And in terms of wholesale, the 3rd quarter saw our transaction volume reached 1273 units, marking a 20% decrease quarter over quarter and 35% decrease year over year. The wholesale revenue declining to RMB82.2 million. As our superstore model is now operating at full effectiveness, we are increasingly focusing on our retail segment, which naturally reduces the proportion of our wholesale business. Considering these factors, our total revenues for the Q3 increased 15% to RMB410.5 million from RMB356.1 million in the 2nd quarter. Despite intensifying the competition within the industry this quarter, we successfully maintained a high vehicle turnover and a healthy industry structure, achieving a gross margin of 4.8%, up 1.4 percentage points from the previous quarter. Speaker 100:18:33However, as D. K. Just emphasized, our capacity to respond to market fluctuations has enhanced and our pricing adjustments have become more prompt. Consequently, we anticipate that gross margin will recover to about 6.5% in the upcoming quarter. With the increasing revenue contribution from value added services such as financing, insurance, accessories, maintenance and repairs, we are optimistic about achieving significant improvements in our gross margin going forward. Speaker 100:19:42Our total operating expenses for the 3rd quarter were RMB99.8 million. Through our diligent routine management, we continued to implement stringent cost and expense controls, achieving a stable level of operational expenditures in line with previous quarters. Moreover, we have recently completed a new round of organizational optimization and executed a series of initiatives to further reduce costs and expenses. Starting April, these adjustments will result in a monthly reduction of fixed expenses by RMB5 1,000,000 cumulating in a quarterly decrease of over RMB15 1,000,000. Our adjusted EBITDA loss for the quarter was RMB43.8 million, a decrease of RMB32.6 million from the adjusted EBITDA loss of RMB76.4 million in the same period last year, narrowing the loss by 43%. Speaker 100:21:06This also represents a 5% sequential reduction from the adjusted EBITDA loss of RMB45.9 million in the previous quarter. In addition, we closed an equity financing round in March, raising approximately US34.8 million dollars Our CEO, BK, has shown his commitment to our feature by personally investing in this run as well. These funds will be used to expand our inventory and targeting a 3 to 4 fold increase by the end of 2024 which we anticipate will significantly amplify our sales growth trajectory. There is still substantial potential for increased sales and profitability at our existing superstores. We have already achieved EBITDA profitability for our superstores as of January 2024. Speaker 100:22:49The improvement in vehicle turnover efficiency enhanced the margin profiles and the effective implementation of company wide cost reductions and efficiency gains will contribute to improved financial performance going forward. Are confident in achieving monthly EBITDA breakeven by September 2024 and attain company wide EBITDA profitability in the December quarter of 2024. Now moving on to the guidance for the Q4, January through March, which included the Chinese New Year holiday, is traditionally an off season for the used car industry. Nevertheless, we're maintaining a high level of sales turnover efficiency and we forecast a total retail transaction volume of approximately 3,100 units and wholesale transaction volume of about 900 units. We expect our total revenues to be between RMB300 1,000,000 to RMB320 1,000,000 with gross margin rebounding to above 6.5%. Speaker 100:24:24And that concludes our prepared remarks today. Operator, we're now ready for questions. Operator00:24:56At this time, we will pause momentarily to assemble our roster. And our first question today comes from the line of Fei Dye with TF Securities. Please go ahead. Speaker 200:25:40In the 1st 3 months of 2024, the Chinese car market has once again started an intense price war. Can you provide some insight into the impact of new car price war on the used car market and on UC? Thank you. Speaker 100:26:26Hi, this is D. K. Yan. I'll address that question. The price reduction trend in the new car market that began in 2023 have certainly exerted a twofold impact on the used car sector. Speaker 100:26:39Initially we observed a depreciation in the value of used car models parallel to the new car price drops. This was followed by sales stagnation of the affected used cars resulting in inventory depreciation which has definitely impacted the used car business. Throughout these cycles, dealerships armed with the most comprehensive market insights, the agility to respond promptly and the capacity to maintain high sales turnover has demonstrated the least impact and navigating through 2 waves of new card price reductions reductions in the periods of March to May and October to December of 2023, we have systematically strengthened our approaches and strategies to effectively manage market volatility. Since the BYD price reductions in late February this year, we have cataloged price changes for nearly 1,000 car models. Our operational data indicates that the ramifications of this year's price reductions on Yixin have substantially diminished compared to those experienced in 2023. Speaker 100:28:43Specifically, we performed very well in 2 particular areas. First, the most profound impact of new car price reductions is felt in the segment of low mileage used cars. Our current inventory structure is actually quite healthy and well curated featuring a relatively small portion of vehicles under 3 years old, while primarily targeting both ages between 3 10 years. Secondly, we maintained our sales efficiency at an exceptionally high level. Our in house pricing system is fine tuned to automatically monitor market trends ensuring the timely data collection on new car price fluctuations and rapid adjustments to our vehicle pricing. Speaker 100:29:51With an overall vehicle turnover of less than 30 days, we have substantially exceeded the industry norm, effectively mitigating the potential inventory depletion as a result of price decline. Furthermore, given the new cars are standardized products with transparent manufacturing and compliance costs, and considering that the net profit margins for many automakers now hover below 5%, there is a limit to the depth of new car price reduction. We expect the market will soon find a new balance which should lead to stabilization in the used car market. And relative to our current position, there is a significant opportunity to improve our profitability per vehicle. As market conditions level out, we foresee a smooth progression to stronger performance levels. Speaker 100:31:18And that's our answer to the first question. Operator, let's move on. Operator00:31:26The next question comes from the line of Gary Dvorchik with WTR. Please go ahead. Speaker 300:31:34Hi, good evening. We see that the Chinese government is currently promoting policies that encourage vehicle trade ins for newer models. Could you please discuss the specific impact of this policy on the used car industry and on your business operations? Speaker 100:32:24Hi, this is D. K. Who will address that question. The national government has indeed emphasized the development of the auto industry. Recently, we have observed that automobiles have ascended to become the primary economic pillar, overtaking real estate. Speaker 100:32:41The used car market plays a pivotal role in the entire lifecycle of a vehicle and is crucial in driving automotive consumption. Regarding the trade in subsidy policy you mentioned, this initiative encourages customers to upgrade their vehicles more frequently. This trend has brought a surge of well valued models into the used car market, enhancing the supply and positively impacting national used car transaction volumes. As a leader in China's used car industry, Yixin is at the forefront of supporting and facilitating the implementation of the trade in policy. We have partnered with local governments where our superstores operate to develop practical trade in programs. Speaker 100:34:14Our superstores act as the main platforms for these vehicle exchanges hosting a range of trading events. This strategy not only broadens our vehicle sourcing channels, but also boosts customer traffic at our superstores, which in turn further enhances our sales conversion opportunities. We view the trade in policy in China's auto industry as a long term initiative. There are numerous business models yet to be explored and we're optimistic about unlocking further potential for revenue and profit growth. And that will be our answer to the second question. Operator00:35:14This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Speaker 100:35:22All right. Thank you all again for joining today's call and for your continued support in Uxin as well. We look forward to speaking with you again very soon in the future. Thank you. Okay. Speaker 100:35:34Bye bye. Operator00:35:38The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.Read morePowered by