UXIN - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to Uxin's Earnings Conference Call for the Fourth Quarter ended March 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 Mr. would turn over the your I Eric Yuan. Please go ahead, sir.

Eric Yuan

and ended Thank to you, XX, quarter Uxin's Welcome fiscal XXXX, March earnings conference XXXX. operator. call for Hello, the full everyone. year the

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

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

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

Kun Dai

both both in [Foreign and be international for Thank call prepared and joining with today you better Language] will communicate domestic everyone. today. members. Hello, our Chinese. earnings To conference remarks My English

Chinese quarter. and on car capital, market still In operational We Chinese used in of to delivered quarter are last working quarter the a the set for the ending March pleased report spite our New XX, the XXXX. performance targets to we another holiday solid domestic our constraints Year due slower

an pressing operations. Uxin you our returned into difficulties pressure a see we delivered capital to overcame our working a faced our XXXX XX, to sufficient ability growth has XXXX, as sustaining quarter This constraints, guidance for continue June successful some our trajectory, transformation model. on to the the significant many July inventory-only also From XXXX, of following challenge As financial Despite solid we for put achievements. concern. key ended and October can growing from

transformed of all, only model, platform-based critical challenge our head decision, inventory-only severe much the linear combined instead COVID-XX This and we by successfully pressure transformed business foundation and faced We stronger into the of operation. a was capital of model. being business on from and business an driven with a the of efficient enormous impact First constraints. our a on the a

believe a car customer satisfaction. improve the quality provide our customer customer-centric the satisfaction customer used value vehicles. continuously transaction, is better As inventory-only Under after-sales services. we model, we best-in-class company, enhance an customer transaction over In can -- creating and the to key of is control to key quality our vehicle to to the

acquired team value met added quality across veteran than used only strict monitoring better been XXXX. quarter Net to improving goal order implement have vehicle customer In inventory. Customers cars of our XX for Our standards our satisfaction, second of terms and in our or to our come Score ones we that China cities closely the since first. the were of in NPS, Promoter the money sales and more

vehicles holiday. New NPS Our same of quarter, happy and was XXXX. remained were have model. on negative inventory-owning in the efforts two the March XX previous direction deliveries vehicle monitor see Maintaining NPS reflected Chinese despite March recognition improved the the the XX consecutive stronger results. year put, to started ended It our heading high our committed the Year quarter to the We demonstrated premium just industry the for the score right in services. only business the quality quarters also with NPS impact impressive customer XX when that during an we some as in metric generated in in used are To June we past quarter at our perspective, this of our that

and financial half facilitation and the order will no of to of we sustained Moving our to structure operational based any boost operational feedback loss to and XXXX, guarantee organizational consistently business by divested process costs. our expect institutions risks. quarter-over-quarter purchasing in further customers' established second our to new necessary improvements the We the quarter provide efforts meet efficiency. longer we order financial to cooperation services We In which a conduct provide our accordingly the XXXX. [Foreign we auto loan further model After forward, RMB model needs, regular to down. Meanwhile, remaining products loan financing we made in our optimize our quarter, our more In next Language] credit following Language] liability we business In settled best-in-class industry. assessments the million. our in refining transformation. in undertake customers' adjusted than our with XX decreased step order car options the XX% our the our third-party narrow we're in operational experience loss to on year operational [Foreign to March business every also effort, of

believe in March customers. and our development. capital have set business first we our our that and operation models of in Our creating was to IRC on our the for models focus aligned us allowed still Reconditioning in was during long-term liquidity XXXX. or operational operational Center value cash Inspection such [Foreign we Language] resources Xi’an officially Even well tight, with time a developed are So refined far, when

business functions, IRC been vehicle our optimized our stronger our a in infrastructure we important Establishing over process the past including front service transformation. to end and part our of the In designed IRC relation to the supply business. As of range control exhibition. months, business allows has have warehousing to refurbishment, and of us the chain. management have six own IRC

leverage individual car we operating owners. from investment IRC. high-quality better increases, cars sourcing our of to Language] our and in used in to vehicles XXXX, of our driven sourcing expecting supply the very expanded chain March allowed are This [Foreign During vehicles enriched we of expertise channels with our the inventory for used empower beginning. us quarter by our As vehicles

also proprietary established channel only wholesalers is offline standards, so that Vehicle not standards inspection an We refurbished strict retail sold our that dealerships. be select platform. meet vehicles featured online to be through our wholesale to cars. used will premium do Those will requirements sell our on efficient met and online

penetration to financing, XX six while constrained, Recently, sales and premium close vehicle July same was have for wholesale We working The agreements of we months. tracked capital the enabled accelerate tranche. maintaining us acquisition of respect vehicles. rate have total the on working our our business up the remaining to and we the well used the addressed with pressing the additional the definitive cash While closed company. to business flow two the a into capital entered business secured for in a first and past game which funding are transaction that investors, were key million We to were who faced a for investment onboard changer we Uxin's Capital, Joy for share forward. Capital NIO financing US$XXX into glad prominent the strategies believe of tranche our is going issue

other direction temporary our business and were the that believe companies, Like and committed us stronger steadily remain will business we more forward, to we have and only model expand our network. current strategic encountered we going difficulties great to Going the resilient. make

our thank customers growth Uxin but the even over expand learn we our us will the achieve at innovative development. continuously their strength toughest times. focus times. decisions challenges their also work to we heart painful for for on that successes and entire and difficult benefit would our from We during team even experience the few believe spirit, years. I can continued like their thank for and trust I adjustments and to our long all would like of our attitude genuinely able will most customers positive support and our to strong term. the dedication, decisive many in run. would we a drive and long quality to in products in two factors, were thank we organic steer in understand a strategic the and only new continuously the the and trust model, the the transformation I like sustainable and will committed investors team. Uxin that We direction. our that management In sustained we Uxin's when right and response development services With We believe continued of customer-centric at supporting our to made place our our for resilience shareholders business

explore to lies potential IRCs. have the liquidity new chapter Language] unlock we we further forward, Going exciting to addressed Uxin will new that of believe we continue Now a ahead. [Foreign opportunities our the for issue,

used inventory our While and maintaining we cars. of will vehicle focus our With capacity on refurbishing and vehicles steadily boosting used and production we believe efficiency customer business on measures, our the comprehensive will our still increase. satisfaction, expanding quality our

will long who We over With return for in sustained shareholders CFO, through financial call investments will our efforts are to the term. turn like walk and would generate John, greater our confident John, I that the our that to results. please? the

John Lin

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

XXXX the fiscal data to with expenses fiscal sales the year but our directly recognition model, were D.K in for significant XXXX. fiscal total after profound than efficiency. the the and Also, As financial XXXX. year, in our inventory-owning we were just data changes for we shifted the operational was underwent prior also year first adjusted structure year the XXXX treatment were accordingly. improve fiscal some lower of the in fiscal vehicle the able the year speaking, dramatically comparable Uxin revenue cost mentioned, not and into the Therefore, accounting Overall

know a you tough in time. went we As all past through year, the

fiscal much loss the carefully XXXX. company reduce planned to took comparable operational the expenses. resolute, So, to year XXXX a costs lower fiscal but This actions year to led and in

vehicle If sales just the results at you in released, total quarter. lower fourth than our were quarter previous the the look

had Year the in Chinese holiday. New First, quarter, this we

was Chinese car for off season traditionally the So, used QX market.

was we benefit on and financials actions reflected our cash be the -- the further to continue But vigorously expand quarter. constraints. further Second, at our vehicle next our and reflected same our will in efforts the time, expenses were reduce inventory to those by cost restrained of

July loss led million. in and the decreased from note obligations. As below on time, and RMBXX reduced exempted the repayment about approximately RMBXXX This payable several agreements. the or repayment ordinary in $XX.X loss One of a into annual XXXX payables quarter, operational our thing by the our the new -- convertible closed to mention of million, or results efforts our is significantly fourth this fourth in converted our million. Also, of into want March holders quarter details and our has company I earnings million $XX result, to million that entered first At quarterly lower that on our volume The same XXth, dramatically history sales our have shares. time financial we These RMBXXX.X are financing. successfully the company dropped operational tranche the despite available first the waiver around our was Full improved cash XXst, position. release. ended revenue

numbers So, This last All than car in units units numbers. now I quarter. quarter. X,XXX Online was will this used stated. unless volume sold run RMB transaction otherwise through key was some lower X,XXX are

revenue the season used traditional RMBXXX while Total sales revenue As million. wholesale RMBXX a market. vehicle vehicle revenues earlier, in was Retail RMBXXX it off was car sales Chinese million. million, I the was were said

dealers. proprietary As this not vehicle to and drop in standards quarter. the our expenses in quarter. of down order million sales previous the was million operating to broke retail mainly you operations gross through lease we platform, we our RMBXXX revenues. was sell stream expenses the excluding stayed address resources and installments RMBXX with wholesale we to we The strategy to wholesale the to company. human our previous X.X% cars from focus cars compared sell turnover, and to decreased the labor need channels. of due million, model In continued online wholesale RMBXXX see, X.X% business If did paid on the revenue Gross by increase sell meet restructuring transformation. in sometimes more to our due our cash quality acquired to focused optimizing will choose the following under through accelerate can margin costs We quarter, a accordingly Total our on business cost Overall, quarter-over-quarter over management. margin the company's and were the development XX% the

also our We significantly expenses. reduced marketing

three non-GAAP our million benefit XXXX, quarter. XX, impact the compared efforts million was savings RMBXX run. will ahead, loss ended Looking previous adjusted the March with at The believe long share-based the we the our for which excludes financials from cost in months in the operations, ongoing compensation, of continuing RMBXXX

first below months Then As for March with RMBXXX loss RMBXXX million quarter earlier, loss I in was cash compared mentioned operation Net is quarter. is the continuing the ended this RMBXXX the from XX, million million. position. three the our about previous XXXX

had of million. the our ended XXXX. of March RMBXXX we for That and As XX, results XX, cash XXXX, three sums up March equivalents cash months

today. to subject Moving on preliminary expect operations remarks That three of RMBXXX less RMBXXX on than we XX, non-GAAP This the expected views the to in XXXX. market our revenues be is to our to concludes to be million. months conditions, from June current continuing our prepared total range ended adjusted guidance, Thanks. reflects our the The are and million and operational loss RMBXX change. which million for the forecast

Kun Dai

are we now. Thank questions take you. ready Operator, to

Operator

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

Eddy Wang

[Foreign two have Speech] questions. I

transaction regarding you do business second expect And or to even of First kind of accelerate China. is well the than I'm this what condition about we as sure as the terms market industry. markets when market see year, was of the second volume of the noticed We could recovery car question actually used car the the model. used car expected. that sales weaker the new that is in actually quarter in car not in My forward? competition the going used some

mentioned As we mainly business are that adopting inventory owning model. the now D.K

different you. how think will going will car So all different forward will business adopted model forward also in be market you -- think competition the And how a in the you do different car going And you platforms, by a among you this do used model car these the why you mainstream Thank platform? chance used think this this different do online model used choose or think for model that have China? model?

Kun Dai

in is trend Speech] [Foreign for the getting think the of terms we better Eddy, market, sure.

of On the existing size is the market one hand, growing. the

buyers have used cars and refurbished, of on sale ones. kept a the number the the is on more with level our car, the for careful value available money vehicles adaptive screening potential platforms is car interest and to from high in customers And quality the of of the for So select become stronger. increasing used approaching new particular, those cars. sold After the is of

July, the and is the which to the And allowed new While And buyers substantial economic the policy used be between their promotes value government reduced price much brings the this cheaper our cities. related for car are also past XXXX, saw registrations And whole on this VAT much more XXXX, digital earlier competitive, of development customers. the transaction. In few cars in the years. for more sector. transactions, transferred we favorable to towards in used year, who saw this the hand, And convenient. much past in the in in makes we are second policies of our different launch process the and sellers circulation market

So window policymaking. we welcoming the perspective from are time you. of Thank the of golden

Okay.

on to not So improve satisfied. platform of formally of profiles offer and make each in in The that sales know to of critical channels. on to clear our know take mind And better our development, we is need our We of of car products thing our after products and how terms our years We is to we a all advantage make competition, what XX customers market takes believe type to winner and spreads. market. focus how used of customers. want own we consistently car a China have now the the

rather consumers, So in our players like increase do than other allies overall as we and to of positive our transparency industry improve for more willing things view, treat competitors. are to if the them the the trust industry, actually

market think addition, as in competition level learn beneficial customer to from the and service participants and of product to we Such drives happens industry competition the keep the themselves. each the on Thanks, So Eddy. improving it quality. whole real other is

Eddy Wang

Language] [Foreign

Operator

next [Operator line [indiscernible]. Please comes question from question. Instructions] the of Your your ask

Unidentified Analyst

in To and your of Capital. How new will Uxin Joy question development English. NIO raised the you. this use Language] investment Capital repeat [Foreign recently promote my money Thank from business model? you to

Kun Dai

[Foreign Language] our new First consensus on of all, and have we investors strong strategies.

highly actually So pays great aligned is can in you particular, which customers, to our company, philosophy. with a business which is NIO consumer-facing attention see

So because things a our strategies the we new we as established value And propositions. on us. consensus quality NPS regard vehicle important and of user in business investors have needs, most and our for transformation with XXXX,

after investment, work quality our further and we our strategic on enhance to So and production will fronts vehicle control together efficiency. receiving key improve capabilities and the automation a digital

us In scale and Thank up capital addition, additional financing the allow inventory to our will you. also business. expand our

Unidentified Analyst

you. Thank

Operator

As no there further call. today's conference conclude this are will questions,

you. You disconnect your lines. may Thank now

Uxin Limited (UXIN) 30 Jul 212021 Q4 Earnings call transcript