Uxin(UXIN)2024-11-25 15:08Financial Data and Key Metrics Changes - The quarterly retail transaction volume reached 6,005 units, representing a sequential increase of 47% and a year-over-year growth of 163% [7][19] - Total retail vehicle sales revenue was RMB440 million, reflecting a sequential increase of 37% and a year-over-year increase of 79% [20] - The average selling price of retail vehicles decreased from RMB109,000 to RMB74,000, but the increase in transaction volume offset the impact on overall revenue [20] - Total revenues for the third quarter were RMB497 million, representing a sequential increase of 24% and a year-over-year increase of 40% [21] - The gross profit margin improved to 7%, indicating an upward trend [22] - Adjusted EBITDA loss was RMB9.2 million, a reduction of 73% quarter-over-quarter and 80% year-over-year [23] Business Line Data and Key Metrics Changes - Retail transaction volume significantly increased, while wholesale transaction volume decreased to 1,041 units, a sequential decrease of 31% and a year-over-year decrease of 35% [21] - The company achieved adjusted EBITDA profitability at the superstore level this quarter, with a goal of company-wide adjusted EBITDA profitability in the upcoming December quarter [13] Market Data and Key Metrics Changes - Customer satisfaction remained high with a Net Promoter Score of 66%, indicating strong brand loyalty [9] - The company has achieved a market share exceeding 15% in cities where superstores are located, with plans to expand further [30] Company Strategy and Development Direction - The company is expanding its superstore model, with new stores planned in Zhengzhou and Wuhan, expected to open in 2025 [14][15] - The focus is on increasing inventory levels to meet consumer demand and enhancing value-added services to improve gross profit [11] - The company aims to standardize the used car transaction process, which has been recognized by government ministries [10] Management's Comments on Operating Environment and Future Outlook - Management noted a moderation in growth rates for both new and used car transactions in China, attributing it to economic fluctuations and price reductions in new cars [27][28] - Despite short-term challenges, management remains confident in the long-term prospects of China's used car market, expecting double-digit growth in transaction volumes [29] - The company plans to open several new superstores each year to drive sustained growth in sales volume [30] Other Important Information - The fiscal year has been adjusted to run from January 1 to December 31, aligning with common practices in the investment community [17] Q&A Session Summary Question: Outlook on China's used car market growth - Management acknowledged a slowdown in growth rates for used car transactions but remains confident in long-term prospects, expecting a rebound in volumes [27][29] Question: Timeline for new stores in Zhengzhou and Wuhan - The Wuhan store is expected to open in the first half of 2025, while the Zhengzhou store is anticipated to open in the second half of 2025, with breakeven expected within 6 to 12 months after opening [36][37] Question: Inventory management and turnover rates - The company plans inventory levels based on local car ownership and market share goals, maintaining a turnover rate of around 30 days even as inventory increases [41][48]