Uxin Limited (UXIN) 24 Sep 212022 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Uxin's Earnings Conference Call for the Quarter Ended June 30, 2021. 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 call is being recorded.

If you have any objections, you may disconnect at this time. to conference call call, like host to now today's for Ms. would turn over the your I [Chao Yang Su]. Please go ahead, ma'am.

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

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

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

be Hello, both To our domestic will everyone. prepared English Thank both earnings you and for today. communicate in better my today joining remarks with conference call and investors, Chinese. international

June ended with quarter years. with first experienced XX The last on of XX the the fiscal which XXXX, tracking over year one most quarters of

sorry, delivery. achieved managed only to fundamental enhance we do At of all able results operational end and the our achieved IRC the on and progress expansion relatively terms sales -- loss fiscal our for and business same to due capital we Encouragingly, quarter. We vehicle cost we compared the constraints, reconditioning, operational to replication quarter Xi’an sustainable year retail we keep of in to our despite decreased our substantially and built the sales inventory a in continue costs previous revenue cash solid in and to time, first XXXX, yet sourcing, expense solid control were growth to efforts huge with will has challenge and constraints All deliver foundation our of a small capabilities future although achieved model. business the In and a quarter the the quarter. maintain still we this grow.

extend with strong network car model, to For car vehicles source prices. vehicle both of high-quality resources acquisition used enabled inventory-owning upper our us to car supply for chain owners individual sourcing, more and to at branding reasonable solid we used have and continue stream our dealerships

key production quality has refine reconditioning optimizing customers. cars to procedures reconditioned In has our lines. of and upgrading between This Xi’an high supply terms and standardizing money several in in snapping of After months enabled capabilities vehicles of for to fully of stable us operations, for our quality offer value steps, the the examined. flow IRC, car technologies efficiency continue whole process end-to-end improving and equipment the by we

experience committed on continuously and terms customer and each sales We value focused we of creating improve In support. services, of step vehicle on feedback follow seriously to remain sale the after up long-term sales our customers. for customer delivery after-sale and from

is key The showroom scale high-quality continue small inventory build growth throughout partnership XX%. of first great to increase scale in relatively despite thus to promoter reconditioning County helps purchasing vehicle more decent in increased car our and a sales enabled the has car Uxin these expansion. sales inspection tranche resuming been three to confidence our recovering In net order and offers long a reconditioning quarter, has investing and inventory. sales entered up higher conversion. and for and jointly and This our journey into plant three customers vehicles recently an to achieve XXX,XXX the inspection in better with production City used expected gradually Hefei off-line capacity have and score, steel aspects, receiving run, inventory, NPS, selections the which also business our a experience stable July, to of years. Government continued available with build and and have NPS improvement capacity capacity Changfeng our supply bringing boot strategic us have to the us in coming annual investment of of with sales. our This once reconditioning RMBX.X After production of areas billion. up a and capacity vehicles to it or sourcing, of gives plant Investments to total expected provide the investment will During operations in a increased less to momentum operation. The XX,XXX retail the us to in used new conversion is as high-quality

we experienced tough products conversion XXth forward, Going it to This and year sales sales to supply stronger we started become vehicle. the one capabilities marks we drives September team. which It solid have that because anniversary, deliver and to just by with strong decade, used our passion our and food used every of In a to customers all to is customers, high-quality growth with own past of make to continue the high-quality mission challenges both services Chinese foundation chain quality steady has higher overcome easy services. provide cars near the all value-for-money Uxin Uxin as will the customer best-in-class celebrated exciting our This provide we times on and X. have fueled returns.

to used financial and the car development turn to long-term are We to CFO industry. you contributing to our call walk please? healthy through confident China's John, to of determined that, the With results. like I'd over continue the

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

the quarter financial ended As for a challenging June very resources business D.K. just mentioned, we both operation XX, on XXXX. had quarter and

running term we we and we April X, with binding first an As April received IRC into business were limited announced on tranche from sheet all July Xi’an XX. the on the know, financing you resources. to our of investment a agreement very June, Therefore,

still managed growth revenue. vehicle our tremendous we to achieve above efficiently. leverage the To we terms However, efforts continued the to in transaction spent capital of and volume progress, both deliver

Our June through wholesale car retail the successfully to our constraints. financing was transactions our tranche the in position reconditioning built The balance channels to the capital for expand XXXX. effective quarter of IRC team however, substantially and we to improved cash XX, supplies; due doubled, July first channels The we ended up of than ability in has car capacity, supply and a business. able sourcing build small we our only cash to Xi’an to retail our percentage vehicles sold IRC more and began closing the were car Therefore, the the sourcing of with up relatively increased inventories Xi’an strong maintain inventory productivity daily the of rapidly. the

continue following We improving Company's the in expect the to quarters. performance

management relentlessly boost XX, quarter to continue our matters our we to organization. operational XXXX, the become build it pursuing most process ended a we During business our the ways streamlining that has June lean to are Spend philosophy efficiency. very where

I two XXX. time, less At joined example. employees. years give our approximately XXX in employee headcount had that XXXX we than Uxin ago. me Today, you Let August one of about is

to operational gain idea get you efficiency. how an been we determined have let of Just

The loss Full continuing XX, this ended available in substantially Our details continued earnings release. in quarter efforts from XXXX, adjusted on paid operations off. June decreased non-GAAP are our quarter.

sold and volume are Transaction RMB, was X,XXX now will were wholesale quarter units, All unless X,XXX units Vehicles sold wholesale otherwise X,XXX this year. through our our I same last numbers. stated. channels. last and in that X,XXX Retail standards numbers volume So quarter was not units. key in period run compared with did through sold pass retail the volume XXX some the units was units

XXX% business and from same last a in million RMBXXX over RMBXX last by sold had Total I the negative and proportion from the million year. increase to period drop million million our channels the earlier, As RMBXXX quarter with revenues order last compared Total in vehicles costs year. RMBXXX operating were turnover. in were quarter-over-quarter in we X.X% million quarter RMBXXX boost XX% said due last our RMBXX cash nil was million, wholesale transformation. through and million the the to same to same in million vehicle of year. quarter-over-quarter a a revenue Overall drop RMBXX year-over-year compared was model same the up last the by pay, was severance quarter of year, in labor with period following period expenses, million organizations with compared sales XX% XX% Retail margin Gross vehicle million. decreased the XX.X% the RMBXX period RMBXX sales in RMBXXX expenses and and restructuring X% previous revenue and previous year-over-year. excluding Wholesale

the the which will in Looking Non-GAAP in loss was ahead, XX, for share-based the cost the the long was year. million million and three million million period about same continuing year. last the Then quarter from for ended Net in efforts RMBXX we and June continuing compensation, in ongoing cash financials previous XXXX, at the RMBXX compared period in RMBXXX RMBXXX believe RMBXX ended XXXX, savings previous June operations, compared RMBXXX impact million with quarter million our months excludes our run. of months our last three and adjusted operations position. benefit the loss with from XX, same

had cash of equivalents and As of June we XX, million. cash RMBXXX XXXX,

months up of we to remaining $XXX received results tranche to million on and the sums up the close transactions $XXX of the our three track we our million, XX, For in That well are financing XXXX. first July, for June ended tranches.

our to guidance. on Moving

to market views RMBXXX our and in are to That ended the operational conditions, September XXXX. million subject expect This months remarks. on be We preliminary revenues to reflects the of current for changes. concludes our forecast which total three prepared RMBXXX our the XX, and Thanks. range million

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

Morgan [Operator the question. question of Eddy your Stanley. Wang Please from line Instructions] ask Your comes first from

questions. Let translate two I me have myself.

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[Operator no questions would on continue. Su]. Instructions] the Please line. There further I now Yang to to the back are conference [Chao hand like

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

Bye-bye.

Thank you. Bye-bye.

conclude Ladies that you. our for Thank participating. does and Thank today. you for gentlemen, conference

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