Uxin Limited (UXIN) 17 Dec 202021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to Uxin’s Earnings Conference Call for the Quarter Ended September 30, 2020. And at this time, all participants are in listen-only mode. And after management’s prepared remarks, there will be a Q&A session. Today’s conference call is being recorded.

If you have any objections, you may disconnect at this time. to Director call of like Song, to now Relations Investor Uxin. would turn over the Nancy I Please go ahead.

XX, Thank you, for September call Uxin’s earnings operator. Hello, everyone. the Welcome quarter to conference XXXX. ended

that to D.K., the and our the Zeng, CFO. will guidance. follows. Zhen, company They will D.K. who today Q&A the available On business and followed Founder both our operations call answer review highlights, CEO; during and and will session your Zhen questions are by discuss be financials

that I which Safe start, remind Private forward-looking that of we known on as of to and statements. Before would differ statements involve current applicable based results you made to Act U.S. Uxin risks management’s unknown obligations this law. like could forward-looking XXXX. any knowledge contain made statements, any the are from assumptions undertake These Securities actual Reform to events call those the Harbor uncertainties, may materially or Litigation update does except under about statements the provisions in forward-looking under cause and future required not

For with more our that, go SEC. the information will uncertainties, over I the call turn now the With CEO, to our D.K. risks please to and refer about Please filings ahead. potential

Nancy. today. you, our The everyone. transition joining Hello, an call Thank model. inventory-owning Thank September conference our earnings for you to quarter marked

continuously to better pleased we optimized. being with the the -- have and online management that the are and report all control other over service our us we other which chain Now supply successfully flow gives our made transition, offering projects fault

our wide model, have car customer quarterly during by car we used and the The receiving customer inventory-owning alongside strengths the feedback best-in-class the deliver focused progress in we better as and an delivering quarter. experience, also dealer. maximize on with improved Not used we September We a are shift off very initiatives pleased to coupled only the validated to made we better ability but customer also of offering to serving value unique order buying customer for products enhanced efforts completion bar online customer satisfaction raised pricing our fine-tuning our to offering to our the online national in cars experience our quarter a during our services, with value approach, money father experience. In dedicating services. three the our the

and First car with by wheel improve car used selecting adopting by standard standards rounding conditions cars and stricter quality services. in introducting and inspecting the reconditioning

leveraging and category massive In historical the that experience car years. clients better over three our in our car car the terms used by insurance car past quality from inspection of through our progressing

certain data-driving We us new have to some defector relatively deep developed allow high and of failure models car off tap of relation performance know-how mix and data understanding exclude of an knowledge. extensive This from cars effectively to [ph] manufacturing in manufacturing rates. with

us to the quality also leadership. In customer addition, inventory standards overall and enhanced of trusted gain for that the and shape. greater greater our used we allow standards This cars further components cars ensure are to the inspecting all-in car satisfaction raised

to condition, car a enhanced new refurbishment consistently a more customer to In terms additional of value allows attractive condition staff the us cars greater like offer alternative car. a offer and new buying

serving all through and course process continuing of methods, to our the online customer and pricing to and our refine with costs. communication the we -- highly driving offer off lifecycle of the invested effective online Second, used conducted

for And title for an purchase all consultant online order who -- place The with documents customer explain handling will sorry service is the consultant online team order [technical dedicated handling the team difficulty] why is us. a service responsible for be service There customer. inquiries plays of his transfer assigned -- such to financing me loan Let this sales customer customer paperwork, incentives manager consistent who and all to every insurance as sales related his restitution car responsible if for car. a drives is other car. for the clients is responding auto license the sales and to after finance the documentation processing plate application after specialist for who and responsible away

deliver. way As our satisfaction we significantly standardized service -- sales the customer services and our and key the the responsiveness point, as of result at delivering of sales personnel of responses increase improve we each service after a the

as Third, fusion We deliver initial improved we deliver and final timely tax order shorted as and of period the logistics further of the more fulfillment a of include optimization between the cars. transfer. well entire car waiting process title

a introduced certain time. car are deliver policies received the clients promise later if also to are that for customer our than entitled customers We new --

As the the indicating XX of in of reported enhancement, our month of result loyalty. our well score increased NPS exceeded the promoter our customer and worth the products from this quarter. XX September, from June or net increasing we to only for growing that mentioning services as significantly a well NPS saw traction as quarter XX as It’s

satisfaction to the from recommend improved to others. willingness benefit customer and we greater Uxin As

around in month. We are deposit-required confident purchase that orders we X,XXX can secure

Catalyzed in of willing markedly Our a expansion quality more quarterly demand the and from group are cars translate our as premium does to base a different two new customer -- our of base that satisfying solid purchasing customer offering which volume purchase we trust more as high-quality growth, paths. the already word-of-mouth value-for-money receive customer mass will our we believe are consistently with we further to customer growth to transaction referrals us also services. starting into from our these believe our growth referrals. and used present sustainable volume this to Once best-in-class drivers, key dedication drivers, a growth new the and pay orders customer brand critical to and cars position. long-term has type market and we by services, expands, who customers hit But potential contributes and to long-term increasing solidifying for are increase contribute

this that to like for that and to a ahead. the for turn generating firm you over foundation the please business development results. call confident for CFO would are shareholders. will go more I walk future provide to through financial value our long-term our We Zhen, With

Okay. Thanks Thanks for us everyone. joining Hello today. D.K.

As the continue model, we efficiency our to inventory-owning enhance transition across an to we operational made the board.

focus cars on inspection only optimize us Our inspection qualified our handpicking helps cars costs. now to enables specific to allocate used resources to and

we we scale, also strengthen reduce believe brand streamlined In a we a sales and benefit step trust operating we able addition, to we cost among structure sales better optimized expense place, long-term by the With relevant from our migrating Uxin expenses and process administrative leverage in achieve that will in as word-of-mouth are as online. and referrals in positive every the achieve sales customers. fundamentally

Now, our details will the discuss the All are related only. let I numbers operations non-GAAP refer some numbers. I stated. financial to in through you me ending September. the in for result that otherwise the to numbers RMB note quarter continuing Please please unless are that work note Also,

RMBXX a The with decrease in XX, the earnings revenues to can three You XXXX, reconciliation the numbers these transaction RMBXXX compared decrease the of September the in our find last same were million used a sales total XXXX, at bottom in and our online ended step year. building migrate as the as release. our XC GMV, period primarily base million core customer team. June sales transaction by months inspection, using of we the every transformation. our now business offline to and volume Beginning online. entire sales result process operate our model staff In are was the due We opposed of

year. Our total XC million million revenue period compared last RMBXX with RMBXXX was same the in

car to X,XXX being XX X,XXX units used In units XC Our online same GMV inventory period last in XXX RMBXXX This million. transaction the was transaction comparison, units with the used XC GMV corresponding corresponding sold XC the corresponding figure volume with in was car with volume old our million year. XX,XXX being million. includes million from GMV

Let's at of in in was the the with period three look streams XC million transaction compared primarily due RMBXXX volume RMBXX Commission same year, now decrease revenue last GMV. million in business. revenue of our the to

competitive service the RMBXX more Value-added in due was year, last the X.X% the in X.X% in the period to as August since the million same so prices last because three the to we September in decreased XXXX to in to transaction decreased decrease revenue across year. mainly the primarily GMV. decreases lowered customers. from rate million XX, period board transaction VAS commission compared was offer commission same same period X.X% Our in The XXXX, the with the months in last fees year. from from to RMBXXX rate volume X.X%

revenue center last revenue to compared result was in a offer to reduced gross we of in since million XXXX, August inventory. service RMBXX release. quarter's Vehicle our the in more shifted inventory-owing an fee the sales since nil disclosed the sell with earnings when customers. As own we on sales recognized order Vehicle competitive of a September price to is model last year. We our XXXX as base

the September services, three divestiture Looking to the acquisition January XX, months XXXX, over inspection, car as salaries year million. salvage customer The to -- beginning volume. at by however, with an was with the the a mainly was to million, RMBXX decrease service decrease increase as expenses decreased the General for other September employees the reduction. margin revenue was inventory to RMBXX a ended expenses in the based of the a a million, other due gross result since by compared the compared costs based in to salary three compensation share -- year. for XX in compensation the RMBXXX offset, expenses in and Margin operating were headcount year. decrease same our last business and partially Gross period to and million impact reduction million of which The other benefits in share the expenses, RMBXXX after million. based The engaged was result of year-over-year expenses business, the share as in expenses XX.X% XX, the expenses. males same a RMBXX for expenses and expenses relating RMBXX RMBXX period million. business the headcount our decrease quality a due share This fulfillment by was negative to was related marketing to impact of reserve marketing G&A was year based September was well the of in primarily XX% the the benefits Non-GAAP cost a the of Sales the XXXX, decreased primarily decrease in XXXX. car benefits XX.X% revenue the due expense lower and salaries sales expenses, decrease due Sales in decreased and excluding to XX% as by vehicle of our in XX% mainly were due building the the XXXX. a marketing compensation XX% of the expenses. mainly XX in control, decreased the were lower Total million. transaction decrease excluding was to impact due to in R&D by excludes million. compensation to operating decrease last million. the RMBXX and Cost decrease

of September the XX, XXXX. RMBXX expenses excluding R&D compensation nil Our not with XXXX-XX, Measurement from on XXXX Financial modified Instruments guarantee -Credit liabilities guarantee Credit Loss three associated under a was of We impact historically-facilitated a Losses, retrospective were Financial We the million. and incurred Standard where X, liabilities share ended for adopted transferred from guarantee the our the obligation based on Update Pacer. remaining the to Accounting Losses January method. loan Golden Instruments amount

agreement for the guarantee from losses XXX gain determined guarantee or recorded contingent the is XXXX months under guarantee one liabilities obligations ready within Before the we agreement of April liabilities with for the was with to for regard from credit is ended related in XXX either accounted ASC accounted our credit XXX, XXX, In and under facilities the losses, credit Pursuant on April, guarantee liabilities partner based supplemental was guarantee for such to adoption ASC of liabilities ASC released our we set of supplemental a XXXX. recorded and recorded within to shall separately ready XXXX, to the entered and to historical and amount the stand ASC to for was of as the XX, a operating from to XXX we liabilities, XXXX. provision of liabilities. financing accounted be in our liabilities cap amount expected partner guarantee XX, agreed currently would the guarantee gain three XXX, accounted or major our net loan. RMBXXX that for of determined greater September remaining amount into contingent losses; order on income. loss or addition guarantee for settle gain from stand of on other use loss signed cash provision the the million fulfill adoption Provision currently ASC ASC under to After for financing

that As RMBXX contingent the on ended XXXX, quarter of guarantee the time guarantee million into was for settle we'll partner. associated value settle agreement supplemental signed entirely the to entered from an XX, a outflow. settlement we remaining on in of signed partner representing another restated with and we our This the in XXXX, under agreed based remaining liabilities entitled Subsequently financing result, financing the potential same to cash we a amended installments release this June liabilities to of the the XXXX with supplemental for all recognized agreement XX, the our July agreement agreement schedule. liabilities XXXX amount loans Pursuant in pay we guarantee are July, condition to historically-facilitated the April.

period million August result, recorded million XXXX, contingent As what of year. continuing with continuing impact period value RMBXXX up the the value from same in RMBXXX adjusted excludes based of closing previously million was adjusted on was same year. RMBXXX compared share-based net aforementioned in million the with from operations was Loss which impact compensation loss we to July. in operations of million Non-GAAP was determined compared July continuing from last operations was which X, last the loss compared million time guarantee a last last time quarter, RMBXXX from excludes RMBXXX compensation reversed, with day in the continuing in the RMBXXX year. period million amount the loss RMBXXX the Non-GAAP in the compared operations of million agreement RMBXX the same of was same the liabilities in signed with year. the the share-based Net million which period RMBXXX

Turning to cash September and our we equivalents million. XXXX, cash cash XX, have position, of RMBXXX as of

U.S.$XX months XXXX, cash we addition, consideration sum results ended complete of financing up we million as same In in supplemented which for the amount, round XXXX. in September our cash position. three our a new received That the October XX,

to on guidance. moving Now our

million our also And are be to we market in With an of positive operations we, our we to a the remain million operating model, similar our total expect the selling subject at That continue December September from to average to margin range RMBXXX adoption reflect quarter percentage before the and price as our slightly single XXXX. conditions concludes and improve gross will primary overall which on This in expects inventory-owning to current forecast we range as revenue narrow and in our loss level be of efficiency, and RMBXXX digit the for view remarks. the to quarter. to adjusted expect prepared change. from operational the

questions now. the would Mr. call for we open like you, Zhen. to Thank Operator,

and question-and-answer the of question go [Operator Morgan Certainly. We line Please the Instructions] first gentlemen, Wang coming Ladies begin from Stanley. session. from we have our Eddy will ahead. now

Michael. my question. taking my Hi, for you questions. question. two I Thank Language] Thank for have D.K., [Foreign taking you

the The first user a efforts about industry that NPS second have the the of mentioned, overall next to question experience. been outlook goal, used and you And year. of in doing question the is improve is car lot you the

do NPS. So to kind the you. experience of efforts continue terms you further going -- in the user will forward, what Thank this to improve of

you, I Okay. take Eddy. All two will questions. right. Thank these

start car sector This, from car in with the upgraded. is more develop industry to the think that the and year Dealer the be compliance recently will whole -- Association just industry, implemented forward entire enhance China relevant environment, a used industry move full this car should it used further a model. to model toward organized all, policies In promoted will for implemented I brokerage policies, and since next a a used several of this has car first business new used auto year. So, industry

cut also time, month. earlier as same -- new We Beijing the vehicle transfer. used a a more of regulated. the has this the to to in say And are VAT at policies preparatory, there title the temporary tax ourselves are enhancements X.X%. participating and from already planted we introduced relating car -- Currently license And, allocation some can X% registration been policies

city, pilot believe specific a to launch I As Beijing and will implement this above. plans response policies a mentioned next

higher positive implementation reference developments city So, other the there industry currently, of now customers carried out the as and will regulatory, will the of car. will all be place a in favorable used to players offer pilot way have industry, three the used policies benefit learn these seen the we taking from. car government the The online a to compliance bring gradually Uxin will place. and and high change engagement for what cities buying this the including as in we car change and From policies regions by used to acceptance implementation But dealer. by to as operate policies

adoption entity, a the will as policies. First, our business be by inventory-owing supported fully model of we

In car cut also tax to addition, use can lower the tax help our expenses.

also will promoting efficiency. will the fulfillment And relevant same registration well called It online inventory-owing model purchase as will digitalization lead be used for at customers improved under cost simplify temporary title optimized process the be property a time significantly to and transfer from operating fulfillment of We delivery, can process. the much us, which and the car as correspondingly. the

year, volume, forecast the to could the all increased our policies, two around be transaction of think XX% digits -- these I think and around it XX%. I it's from they follow next total So used car

about question second the the And question. first the for answer NPS the that's improvements. So

really efficient to this NPS. way out improve year very found a the think we I

of used purchasing mainly aspects, are the is condition the we best-in-class and services. the two most This and quality improve focused the car, on sensitive to think things the NPS. two I

our and say we want So example, I believe satisfaction this to year, area, to can that we keeping focused enhance car. ability and the invested reconditioning the next keep NPS. for we we to And the and improve Yes. our are into ability customer the all on more, to also source some improve to were strengthening

center answers. we ourselves our question condition build from car the bring do refurbish our to and -- and like new the second year, to reconditioning used the Yes, own -- to our next Eddy. the using ability the So that's will customers. Thank you, enhance

Thank very Thank you. Thank you. you much. you, Very Thank clear. D.K.

Thank you.

Thank to Thank like now the would Thank you. closing I turn for remarks. Song, to you. call over any Nancy you.

Thank today you our to again in future. support your you Thank and for for call speaking continuous the We soon joining look in forward you. Uxin. to

Thank today. you. the conference That for concludes

Thank you.

Thank you participation. for your

disconnect You Thank may you. all your lines now.