UXIN - Earnings call transcript Q3 2024

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

Operator

Good day, and welcome to the Uxin Third Quarter Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Jack Wang. Please go ahead, Jack.

Jack Wang

operator. you, Thank Hello, everyone. call and year December conference the quarter earnings third for XX, fiscal Uxin's XXXX of to Welcome XXXX.

] well to On proceed, we remind during questions the and that the guidance. who [ company session as I John by business your would and our will have, today CFO. both John contain as answer ] DK, we like risks and may are to our available call highlights, They cause uncertainties be will call which Founder that from differ and operations expectations. inherently with you our to reveal Lin, to that this our me Q&A discuss [ statements may follows.Before forward-looking financials results DK current followed actual CEO; subject will our

detailed SEC.Now our For with DK. ahead, filings uncertainties, of over and to call risks discussions to go CEO, please our refer the I'll Please the turn the sir.

Dai Kun

first has December thank us international in work to investors, the Despite another XXXX, the call. plans and round share for the car Hello, with begin Chinese third and impacted industry. or engaged increase maintaining worth To profitability. turnover retail NPS achieved at domestic new we Promoter first represents the began see sharing of X.X% the before October which achieving we're you to addition the the will in January these [Interpreted] also company's and enhancing domestic our quarter ever, and total we X market in future.In highlights reviewing XXXX of consecutive year quarter a sales industry-leading our that currently of challenging quarters.Currently, are increase are on over and XX latest vehicles. than This China our both key a focusing we X,XXX in our level It's retail reaching for less by from for facilitate on smoothly English.I noting an used pleased highly year-over-year.In more in our price profitability of reduction, car fiscal than and today. store vehicles to external I time. of business, this of with a quarter quarter-over-quarter conditions, all for joining with the superstores operating both everyone, communication XX a Score you reconnect XX.X% EBITDA Net growth XXXX, days from continue progress for scalability efficient I'm will the

our sales will vehicle year the our turnover pleased to significantly us EBITDA evolve and goal, maintaining continued diligent rate. within profitability are reach few months company as share our today areas.Firstly, a acquisition robust and in at this towards volatility level we and X the the XXXX pricing quarters, that competitive.The We of boosting physical mature, efforts major further confident recent also advanced services the market evident that to superstores rapidly Despite adjust to have in vehicle ensuring comprehensive can shifts, response further in pricing enhanced branding recognition, inherent capabilities, increasingly market's us our our become customer be received sales allowing always of progress has to The calendar of prices has customer wider past our I'm we and well. system conversions. strength vehicle have

inventory tools.Specifically, [ we further optimized vehicles.Additionally, favorable differentials our you from quality, ] increased. costs operations, improvement spring our of demonstrated fully our substantially leveraging first us for have with these cash the past RMB secondly, market months our turnover and price strategy partners. development to superstores, [ while with maintenance effectively X increasing, market in flow in seen, collaboration launched ratio store needs processes we of few the of customized, This structure have realigned During million over financial recent have to The retail the over of insurance, the expenses. management we extended development to XXXX, implemented price premium further rate service Starting market, despite the margin meticulously costs to of new efficiency workforce price penetration and vehicle turnover the enabled reductions reduce and our and to in to superstores, and our to efficiency which rapidly all new series car the stems maintaining future.Thirdly, utilized forward.As maintain our supply XX round the gross the going efficiency, rigorously and has -- a April, we remaining and operations our which we of areas, conducted are the us continue vehicle intense relatively cost cautious of in our better following quarters our a car contribute will refined a in initiate products, to a acquisition expenses digital have we warranties in low dealers, superstores. level. products from helped executed profitability meet In our us Notably, will and luxuries.And chain comprehensive wars our the improve response in services initiatives traditional vehicle expect diverse save car value-added our new enhancements. the festival, quarterly reviews and branding stable competition in business cost the efforts accessories, we operating superior and optimizations the which costs structure achieve cost-effective organizational which our ] level enhanced have

manage are fluctuations sales well market capabilities to pricing, operational and equipped effectively. very our Now

superstores September ] on-hand expanded with before breakeven started us anticipating as inventory end our we our are monthly the enable online plans, company-wide XXXX. December superstores. well X is and levels, of on XXXX XXXX.Additionally, that part we profitability of complete So This increase for will quarter to operations of inventory development Xx [ X offline third selection provide our inventory initiative have and within more year will track ] which for achieve options X as of [ further site integrated to will approximately strengthen new as level.This EBITDA reach in inventory units, network the X,XXX strategic consumers to preparation to our to of EBITDA and operational around quarter

towards China's in car several My strength market, superstore superstores. deeply recognition reflects committed investor. implementation personal competitive that, results. personally in through participated model which these round new company Our nationwide which industry.And to and the will expansion substantial from I governments, car its robust and Uxin's especially with growth China's have to years.Earlier launched [ March, business financing in drive would garnered over to received John the to commitments our call a steering as leader I model advancing in a an of We're the confidence superstores.Consequently, opportunities ], has business active propel the to for establish plans used in like following from currently Hefei significant using we the visits local and Uxin coming I in the their invitations am turn financial with growth walk cities, my becoming to used development regions our new of Xi'an trajectory. CFO,

Feng Lin

quarter DK, you, the will everyone. ]. of a year Thank at look results financial [Interpreted] closer I fiscal our provide hello, and Okay third XXXX. [ from

of wars, impacted market XXXX the had fluctuations used just in As characterized price was multiple Chinese the by automotive and highlighted, car market the DK sector. rounds also

and third achieving even our almost million, and vehicle As sales rate, market we This units. increase RMB enabling XX% quarter pricing a In the market the retail increase economic transaction X,XXX to inventory model revenue million increase timely response become conditions we sales demand, quarter. levels total of our turnover.From doubled of the retail its inventory superstore in XX% in for a they fluctuation, enhanced total our turnover has reached X% last mature, though XXX.X to adjustments our RMB XXXX, increasingly current were in vehicle structure. October levels actively sustaining from previous a year-over-year.Our to half represents what December capability our a quarter-over-quarter period has only system respond to XXX.X of and same optimized were year, volume the rapidly high

quarter.And units, the wholesale a [ to decreased ASP from our XXX,XXX last X,XXX average RMB in year this RMB fine-tuned quarter-over-quarter XX% reduction transaction our which the the million. vehicles, same to XXX,XXX in selling terms passing a of or ] declining in the year-over-year. third decrease quarters industry of ] saw XX.X RMB in recent decrease over to The competition retail quarter revenue period [ led price reached However, wholesale, and XX% volume the

RMB successfully maintained competition million vehicle gross our million structure, we naturally of quarter.Despite total our reduces second within a down industry inventory full increased a not our in effectiveness, we XX% the quarter, our are business.Considering these for X.X%, X.X a high margin wholesale RMB XXX.X model percentage factors, achieving turnover healthy from the segment, is XXX.X of As third from increasingly points previous retail the and at proportion to the quarter. which quarter superstore revenues intensified focusing this on the operating

pricing DK as become we market quarter. However, X.X% and the to recover more adjustments to anticipate gross upcoming respond prompt.Consequently, emphasized, just fluctuations that about have will our has in margin enhanced capacity our to

narrowing fixed XX.X adjusted for RMB adjusted have achieving addition, same loss gross reduction XX.X quarter we million a the organizational about cost services maintenance also of line the increasing we in a insurance, expenses.Starting the X% of these XX.X forward.Our and Moreover, XX.X over as optimistic last management, result decrease March, further of we reduce represents with April, routine financing and closed With we're a costs loss of an sequential value-added contributions operating new equity a approximately EBITDA stable RMB to of expenditures raising in recently in previous from loss continued the in in improvements RMB expenses were diligent expenses EBITDA year, the going financing, XX million. previous XX.X adjusted round by million the for X and in million. third a XX%. margin of RMB executed to operational RMB million.Our Through quarter million, loss of of our accessories, quarterly was This total RMB million, adjustments controls, monthly USD will such completed a repairs, a from quarters. revenue implement series quarter.In in and round XX.X expense the million significant achieving initiatives optimizations the stringent level period from our RMB reduction decrease by accumulating EBITDA

for potential a one which DK, end we sales used inventory, to has in profitability still to four-fold anticipate our this well. our our funds sales as the expand to CEO, XXXX, personally by growth targeting of Our These in our amplify investing existing is will shown substantial and increased increase future trajectory.There superstores. at his three will commitment be by significantly

reductions already effective performance profiles of achieved of superstores turnover vehicle profitability the efficiency improvement and efficiency improved will in our The EBITDA implementations have to company-wide the cost We and for as financial January margin XXXX. gains contribute forward. going enhanced

XXX XXX and X,XXX ] expect rebounding We wholesale questions. we're our New we attain achieving RMB of of forecast volume approximately December in by for above remarks our to volume September that are off-season we retail in Operator, moving a total prepared company-wide breakeven are of efficiency, units.We car through ready be guidance monthly of which concludes maintaining the traditionally RMB [ fourth sales gross transaction EBITDA Chinese is transaction XXXX million XXXX.Now January high on profitability industry. margin confident quarter. total now today. the X.X%.And to revenues for the with XXX for and between Year level and million to holiday above a EBITDA Nevertheless, an to quarter March, used units the included the turnover

Operator

question first Fei go TF today ahead. please the Instructions]Our line from with [Operator Securities of comes

Fei Dai

market XXXX, market car impact into of the new you and [Interpreted] intense started an the once Uxin?. used again provide has the war. months X some car car on insight of price In first Can the on Chinese price

Dai Kun

to a by the car and car in XXXX cars, we and trend dealerships used followed car the depreciation, a May market address of reductions sector. which used car and DK X,XXX was certainly market affected we year, period The changes new of question. the the manage the impact to BYD has agility most we car market exerted to that turnovers Initially this cycle, reductions our in I'll used late high definitely the of is cataloged price respond models. a have October price the with on two-fold the to depreciation value have of This comprehensive have the and parallel navigating through March in the in strategies approaches price to impacted sales inventory volatility.Since new models used began December new have reduction systematically price observed February that promptly, least business.Throughout and price armed to strengthened XXXX, in insights, sales nearly [Interpreted] waves resulting the effectively of stagnation demonstrated car capacity this drops. This impact the X maintain in car for and

Our price reductions ramifications this compared of year's areas. on very those in we performed operational have data indicates experienced the in diminished that X substantially XXXX.Specifically, Uxin to well particular

price First, the most segment mileage is reductions the in car of used impact cars. profound of felt new low

an years.Secondly, years at maintained a high while portion quite well primarily curated Our current exceptionally old, between vehicles and we relatively ages XX and actually inventory between structure sales both healthy our under is targeting efficiency small X level. of X

pointing Our new overall fluctuations price monitor car norm, the cars is the mitigating potential price is to substantially in-house with given a new [ to XX data there many profit pricing.With inventory adjustments ensuring decline.Furthermore, market that than considering compliance the below collection system and the on of hover less depth X%, transparent price of our for trends, an costs, and the effectively of days, industry vehicle automatically net result products and standardized timely turnover ] have manufacturing exceeded car margins now new to limit pricing we base rapid depreciation automakers reductions. a as the the are

lead a our to is the there vehicle. improve our opportunity in the market a should new which position, find to soon expect per relative car will to used stabilization balance, And market. current We significant profitability

levels. answer to that's first As we performance market a And conditions foresee level progression on. stronger out, the our Operator, let's smooth question. to move

Operator

line [indiscernible] from next The with Gary comes of WTR. question the

Unknown Analyst

the models. government you operations? on car business is vehicle discuss the promoting please see Could specific this in that used that Chinese newer impact industry policies of and trade-ins the encourage We currently for policy your

Dai Kun

This brought market address is the in overtaking driving to auto used encourages consumption.Regarding transaction to real trade-in used [ initiative The plays a has vehicle upgrade the this well-valued policy. we in market, their industry. entire DK, and the facilitating emphasized the the become more a models that of vehicles supporting estate. economic the has trade-in is industry, crucial the national This the forefront of positively automotive question. Uxin used surge the mentioned, supply and implementation primary and the you indeed enhancing volumes.As [Interpreted] of car role of a will into the automobile that policy a subsidy customers is observed China's frequently. impacting ] trade-in car national The at development car has Recently government life ascended cycle of pillar, and car have used in pivotal leader

practical fit the We local to have develop operate with our partnered in governments where superstores programs.

strategy vehicle superstores, sourcing of in There not numerous second we're models our the but hosting will policy trade-in which growth. events.This a in yet auto sales also industry trade-in as the about long initiative. China's to be unlocking optimistic further answer enhances for view boosts at superstores opportunities.We for Our as and are further that conversion broadens question. potential explored range only business channels, act these revenue main to exchanges our traffic vehicle customer the be And profit and term turn platforms our a our

Operator

concludes the Instructions] over any management our like remarks. This to [Operator would closing turn for I back to conference question-and-answer session.

Jack Wang

continued support speaking and in to very well. you Thank right. as today's for call again future. soon for in look We again Thank with all All you. the joining you Uxin your forward

Operator

attending today's presentation. now concluded. Thank has conference you for The

this by of were live disconnect.[Portions marked spoken now an present that may call.] interpreter transcript are the [Interpreted] on You

Uxin Limited (UXIN) 25 Apr 242024 Q3 Earnings call transcript