Uxin(US:UXIN)2022-03-29 15:34Financial Data and Key Metrics Changes - Total transaction volume increased by 111% year-over-year to 4,879 units in Q3 2022, and grew by 33% compared to the previous quarter [6] - Retail sales volume increased by 61.3% quarter-over-quarter, while overall sales volume increased by 33.4% quarter-over-quarter [14] - Revenue reached RMB 506.65 million, representing a quarter-over-quarter growth of 46.5% and a year-over-year growth of 56.9% [16] - Gross margin was stable at 4.1%, compared to 4.2% in the previous quarter [16] - Non-GAAP adjusted loss from continuing operations was RMB 68.6 million, compared to RMB 43.2 million in the previous quarter [17] Business Line Data and Key Metrics Changes - The newly opened Hefei IRC significantly boosted retail inventory capacity, allowing for enhanced sales and operational efficiency [14] - Approximately 25% of used cars in retail inventory were procured from customers in the quarter, indicating a focus on increasing vehicle sourcing from consumers [9] Market Data and Key Metrics Changes - The company experienced disruptions in operations due to COVID-19, particularly affecting the Xi'an IRC, but the Hefei IRC's performance helped mitigate some impacts [24] - The used car market in China continues to grow, with transaction volumes exceeding 70 million units and 1 trillion RMB in value [35] Company Strategy and Development Direction - The company is committed to refining and upgrading its products and services to drive high-quality sales growth through customer reputation [8] - The omni-channel sales model integrates online and offline sales, allowing for better risk diversification and minimizing COVID-19 impacts [24] - Future expansion plans include extending the IRC network and enhancing reconditioning capabilities to strengthen competitive advantages [31][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 and the Chinese New Year holiday but expressed confidence in overcoming these obstacles [12] - The company expects total revenues for Q4 2022 to be in the range of RMB 440 million to 460 million, reflecting a slowdown in revenue growth but continued retail sales volume increase [20] Other Important Information - The company received a $10 million capital injection from strategic investors and expects to receive an additional $12.5 million soon [16] - The average selling price of vehicles is expected to decrease to around RMB 100,000 to RMB 120,000 to cater to diverse customer needs [26] Q&A Session Summary Question: Impact of COVID-related lockdown on vehicle inventory and retail sales growth for 2022 - Management noted that operations were affected by COVID-19, but the Hefei IRC's performance helped mitigate impacts, and retail sales volumes are expected to achieve solid growth for the full year [24] Question: Details on inventory turnover and average selling price trends during 2021 - The overall inventory turnover is around six days, with the average selling price currently at RMB 140,000, expected to decrease in the future [26] Question: Future expansion plans and the development of the used car market - The company plans to invest in IRCs and reconditioning centers to enhance capabilities and reduce costs, while also focusing on an omni-channel sales model [36]