NASDAQ:UXIN Uxin Q2 2025 Earnings Report $4.71 -0.22 (-4.54%) Closing price 04/25/2025 03:58 PM EasternExtended Trading$4.70 -0.01 (-0.23%) As of 04/25/2025 04:05 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings History Uxin EPS ResultsActual EPS-$0.04Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AUxin Revenue ResultsActual RevenueN/AExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AUxin Announcement DetailsQuarterQ2 2025Date11/25/2024TimeBefore Market OpensConference Call DateMonday, November 25, 2024Conference Call Time8:00AM ETUpcoming EarningsUxin's Q3 2025 earnings is scheduled for Wednesday, April 30, 2025, with a conference call scheduled on Thursday, May 1, 2025 at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Earnings HistoryCompany ProfilePowered by Uxin Q2 2025 Earnings Call TranscriptProvided by QuartrNovember 25, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good day, and welcome to the Uxin Third Quarter 20 24 Earnings Conference Call. All participants will be in a listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Jack Wong. Please go ahead. Speaker 100:00:36Thank you, operator. Hello, everyone. Welcome to Uxin's earnings conference call for the Q3 ended September 30, 2024. On the call today with me, we have D. K, our Founder and CEO and Zhang Lin, our CFO. Speaker 100:00:50DK will review business operations and company highlights followed by John, who will discuss financials and guidance. They will both be available to answer your questions during the Q and A session that follows. Before we proceed, I would like to remind you that this call may contain forward looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our filings with the SEC. Now with that, I will turn the call over to our CEO, D. Speaker 100:01:23K. Please go ahead, sir. Hello, everyone. Thank you for joining us today. I'm pleased to reconnect with you all on this call. Speaker 100:01:48Before we start, I'll be sharing as before, we will be sharing our company's latest progress in both English and Chinese to accommodate our domestic and international investors. We're excited to report another quarter of high quality growth. From July to September 2024, our quarterly retail transaction volume reached 6,005 units, representing a sequential increase of 47% and a year over year growth of 163%. Our vehicle sales efficiency remains robust with inventory turnover days maintained below 30 days, much lower than the Chinese industry average of 55 to 60 days. Our gross profit margin also expanded to 7%, marking a new high since we transitioned to our self operated business. Speaker 100:03:14We anticipate that retail transaction volume in the next quarter will be 7,800 units to 8,100 units representing a year over year increase of over 150%. Customer satisfaction with purchasing vehicles from Yuxin has remained at the highest level in the industry for 11 consecutive quarters with our net promoter score rising to 66 this quarter. By leveraging advanced intelligent reconditioning factories to produce high quality used cars, a comprehensive and reliable sales service system and the application of full stack digital technology, our super store model offers significant advantages over traditional car dealerships. The sales conversion rate of customers visiting our stores exceeds 40%. As our base of transacting customers continues to grow, our positive reputation is reaching potential customers more rapidly, further consolidating our competitive advantage in regional markets. Speaker 100:05:32Importantly, used car transactions have traditionally been considered non standard processes. However, our efforts and achievements in standardizing the entire transaction process from inspection and reconditioning to sales, delivery and after sales services has been increasingly recognized by the industry. Earlier this month, we were honored to be named a corporate standard leader in China's used car industry by 8 government ministries, including the State Administration for Market Regulation, the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the Ministry of Finance and the People's Bank of China. We will continue to elevate our product and service standards, beating the high quality development of China's used car industry. We are also actively executing various business initiatives. Speaker 100:07:09First, we are steadily increasing our inventory levels to meet the strong consumer demand for car purchases. At the same time, by leveraging the one stop transaction service environment of our offline Sprint stores, we are enhancing the penetration of value added services to contribute more to our gross profit. 2nd, we're gradually supplementing and optimizing our Sprint store staffing to accommodate the demands of our expanding business scale. Additionally, as our existing customer base grows, we're further improving our service network by deploying additional maintenance service outlets in other areas of the cities where our superstores are located. This allows us to be physically closer to our customers meeting their daily vehicle maintenance and servicing needs. Speaker 100:08:18Driven by continuous sales growth, ongoing improvements in gross profit margins and consistent expense optimization, we have achieved adjusted EBITDA profitability at the superstore level this quarter. We remain on track to achieve our goal of company wide adjusted EBITDA profitability in the upcoming December quarter. Building on our proven superstore model, the expansion of our new super stores is progressing smoothly. Following our cooperation agreement with the Zhengzhou Airport Economic Zone, we're pleased to announce that we have entered into another cooperation agreement with the city of Wuhan. Wuhan is a major city in Central China with a population of 14,000,000 and a vehicle ownership of 4,000,000. Speaker 100:09:50Additionally, Wuhan has a well developed automotive industry value chain that is known as China's Auto Valley, offering massive potential for business development. Our superstores in Zhengzhou and Wuhan are expected to commence operations next year. Furthermore, we are in discussions with several other cities. The expansion of new superstores will significantly enhance Yixin's market presence in new regions, driving future sales growth and financial performance. Speaker 200:10:27John, please. Speaker 100:10:30And that concludes my remarks for today. And now I would like our CFO, John, to provide a closer look at our financials. John, please go ahead. Speaker 200:10:38Okay. Speaker 100:11:02Thank you, D. K. Hello, everyone. We will deliver our remarks in both Chinese and English to communicate better with you. And first, I would like to know that to better align with the common practice in the investment community, we have adjusted our fiscal year this quarter. Speaker 100:11:20Our fiscal year now runs from January 1 to December 31 each year instead of the previous period from April 1 to March 21. For the period from July to September 2024, which is now the Q3 of fiscal year 2024, we once again delivered very strong growth. Transaction volume increased significantly on top of last quarter's record high. Quarterly retail transaction volume reached 6,005 units, representing a sequential growth of 47% and a substantial year over year growth of 163%. This quarter total retail vehicle sales revenue was RMB440 1,000,000 representing a sequential increase of 37% and a year over year increase of 79%. Speaker 100:12:54The average selling price of retail vehicles decreased from RMB109000 in the same period last year to RMB74000 this quarter. The strong increase in transaction volume had offset the impact of lower vehicle prices on overall revenue. As for the wholesale segment, our 3rd quarter wholesale transaction volume was 10 41 units, a sequential decrease of 31% and a year over year decrease of 35% with total wholesale vehicle sales revenue of RMB37.8 million. Combining retail and wholesale, total revenues for the 3rd quarter were RMB497 1,000,000, representing a sequential increase of 24% and a year over year increase of 40%. And this quarter, our gross profit margin was 7%, an improvement from the previous quarter. Speaker 100:14:32Importantly, our gross margin is on an upward trend. And with the market recovering and higher penetration of value added services, we anticipate significant room for further improvement. And while our performance and operational efficiency have improved substantially, we continue to enforce strict cost and expense control. This quarter, our adjusted EBITDA loss was RMB9.2 million, a reduction of 73% quarter over quarter and 80% reduction year over year. Looking ahead to the Q4 of 2024, our retail transaction volume is expected to continue its growth trend reaching 7,800 units to 8,100 units with total revenues projected to be between RMB560 1,000,000 and RMB580 1,000,000. Speaker 100:16:05We also plan to achieve positive adjusted EBITDA for the company in the 4th quarter. And that concludes our prepared remarks for today. Thank you, everyone. Operator, we're now ready to begin the Q and A session. Operator00:16:28Thank you. We will now begin the question and answer session. The first question today comes from Gary Zworychak with Water Tower Research. Please go Speaker 200:17:20ahead. Hi, everyone. So we've seen that in previous years, China's used card transaction volumes grew by double digits annually. But now in recent months, the growth rate has significantly slowed. I think the year over year growth is like around 5% from January to September. Speaker 200:17:39So could you share whether the development of China's used car market is slowing down or not the reasons behind the trend and your outlook for the market's future? Speaker 100:17:54All right. Thanks, Gary. Let me translate that question first. Okay. Thanks for the question. Speaker 100:18:56Yes, thanks for the questions. This is D. K. And this year we have observed a moderation in the growth rate for both new and used car transactions in China. And specifically the production and sales of new cars have increased by approximately 2% year over year, while used car transactions have grown by about 5%. Speaker 100:19:15The primary factors contributing to the slowdown include fluctuations in the economic environment, which have somewhat suppressed consumer demand for cars. And additionally, the used car market faced headwinds due to price reductions in new cars during the first half of the year, which impacted consumer sentiment towards purchasing used vehicles. However, despite these short term challenges, we remain highly confident in the long term prospect of Chinese used car market. First, China's per capita car ownership is still less than 1 third of that of the United States and the overall car ownership in the country continues to rise. And second, the Chinese used car market is still in a very early stage of development. Speaker 100:20:27We expect it will maintain double digit transaction volume growth in the coming years. In fact, since the second half of this year, we've already begun to see a rebound in used car transaction volumes. So for us, we've achieved around 150 percent year over year growth in retail transaction volume over the past few quarters. While our market share in the two cities where our current superstores are located has exceeded 15%. Our nationwide market share remains relatively low because we're currently focusing on deepening our presence through our offline superstore model in these cities. Speaker 100:21:38And this indicates significant headroom for growth. In the coming years, we plan to open several new superstores every year, which will drive sustained growth in our sales volume. And we believe that our sales growth rate will significantly up pace back of the overall market. And that's our answer to the question. Operator, we can move on to the next. Speaker 100:22:03Thank you. Operator00:22:07The next question comes from Fei Dai with TF Securities. Please go ahead. Speaker 300:22:36It's encouraging to see the company expanding with Neustar. Could you provide the timeline for the 2 new stores planted in Zhengzhou and Wuhan from construction to operating to achieving individual stores profitability? Also, what impact will this have on the company's financial performance in 2025? Thank you. Speaker 100:23:46Hi, this is John and I will address your questions. Both of our new stores are progressing as planned. The Wuhan store is expected to open in the first half of twenty twenty five, while the Zhengzhou store is anticipated to open in the second half of 2025. And now building on the experience of experience and refinement from our superstore models in Xi'an and Hefei, we are fully we've already fully validated this concept and accumulated valuable operational know how. So as a result, we expect these new stores to reach breakeven within 6 to 12 months after opening. Speaker 100:24:58Regarding the impact on our financial performance, this will largely depend on the rollout schedule of the new locations. Prior to opening, we will need to invest operating capital primarily for purchasing equipment for reconditioning facilities and acquiring vehicles. This investment will be phased in gradually as our inventory levels grow. So the initial capital requirement for each new store won't be substantial. We also anticipate a normal level of operating losses during the 1st 6 months after store opens. Speaker 100:25:32But starting around the 6th month, we expect the impact on our income statement to begin turning positive. So that's our answer to your first question. Speaker 300:26:19Translated in English, over the past few quarters, the company has consistently mentioned increasing inventory with inventory assets growing by about 13% each quarter. I have two questions. The first is from a market demand perspective, how do you plan the upper limit of inventory levels in different cities? The second is, will the 30 day turnover rate decrease as inventory increase? And how does the company plan to balance inventory levels and the turnover efficiencies? Speaker 300:27:00Thank you. Speaker 100:27:26And this is P. K. And I will address that question. Our approach to planning inventory levels in different cities is closely tied to the local car ownership levels and our targeted market share in those regions. For example, in a city with approximately 500,000 registered vehicles and considering that new cars typically enter the used car market after about 7 years, the annual used car transaction volume in the city will be around 70,000 units and this translates to approximately 4,000 units per month. Speaker 100:28:38In our existing markets like Xi'an and Hefei, we have achieved a market share exceeding 15% with an ultimate goal of surpassing 20%. To put this into perspective and also to highlight our competitive advantage and effective business model, The leading used car companies in the U. S. Generally attain around a 3% market share only. So based on these metrics, in cities with 500,000 vehicles capturing 20% of the monthly used car transaction, which will be around 1200 units, supports the operation of a superstore with an inventory capacity of approximately 1,000 cars. Speaker 100:29:23In larger cities such as Zhengzhou and Wuhan where car ownership is around 5,000,000, our superstores can effectively manage inventory capacities of around 10,000 cars. So when entering a new city, we first established an inventory plan that aligns with the city's car ownership levels and our market share objectives. We then progressively scale our inventory in line with sales growth, which helps us enhance market penetration while efficiently managing resources. Since March of this year, we have been steadily increasing our inventory levels. By the end of September, our inventory was approximately double that of March end levels. Speaker 100:31:04Notably, our monthly sales have more than doubled during the same period, meaning sales growth has outpaced inventory growth. So we've actually achieved an acceleration in inventory turnover rather than a decrease. This is due to several factors. First, the market has been recovering with strong demand driving higher sales volumes. And second, we as we expand our scale, consumers benefit from a wider selection of vehicles available in our superstores. Speaker 100:31:37The increased variety enhances our brand attractiveness, effectively making our stores the preferred destination for used car purchases. As a result, more customers are drawn to our brand, improving sales efficiency. Currently, the inventory levels at our 2 existing superstores have not yet reached their planned limits. So we aim to maintain an inventory turnover rate of around 30 days even as we continue to increase inventory. And that's our answer to your second question. Operator00:32:17This concludes our question and answer session. I would like to turn the conference back over to the company for any closing remarks. Speaker 100:32:25All right. Thank you again for joining today's call and for your continued support in Uxin. We look forward to speaking with you next quarter. Thank you. Speaker 200:32:35Appreciate it, Zijian. Thank you.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallUxin Q2 202500:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K) Uxin Earnings HeadlinesUxin to Report Fourth Quarter and Full Year 2024 Financial Results on April 30, 2025April 23 at 5:00 AM | prnewswire.comUxin Limited (NASDAQ:UXIN) Sees Significant Increase in Short InterestApril 21, 2025 | americanbankingnews.comM.A.G.A. is Finished – This Could be even BetterYou’ve no doubt heard Trump’s rally cry: Make America Great Again. But recently the President made a big change. Make America Wealthy Again (M.A.W.A).April 26, 2025 | Paradigm Press (Ad)Asian Equities Traded in the US as American Depositary Receipts Surge in Thursday TradingApril 17, 2025 | msn.comDida Inc. Completes Share Subscription in Uxin LimitedApril 9, 2025 | tipranks.comAsian Equities Traded in the US as American Depositary Receipts Rebound Strongly in Tuesday TradingApril 8, 2025 | msn.comSee More Uxin Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Uxin? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Uxin and other key companies, straight to your email. Email Address About UxinUxin (NASDAQ:UXIN), an investment holding company, engages in the retail sale of vehicles in China. The company operates an e-commerce platform for buying and selling used cars. It also offers used-car acquisition, inspection, reconditioning, warehousing, pre-sales and after-sales, and various car-related value-added products and services, as well as warranty and repair, delivery, and title transfers and vehicle registration services. 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There are 4 speakers on the call. Operator00:00:00Good day, and welcome to the Uxin Third Quarter 20 24 Earnings Conference Call. All participants will be in a listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Jack Wong. Please go ahead. Speaker 100:00:36Thank you, operator. Hello, everyone. Welcome to Uxin's earnings conference call for the Q3 ended September 30, 2024. On the call today with me, we have D. K, our Founder and CEO and Zhang Lin, our CFO. Speaker 100:00:50DK will review business operations and company highlights followed by John, who will discuss financials and guidance. They will both be available to answer your questions during the Q and A session that follows. Before we proceed, I would like to remind you that this call may contain forward looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our filings with the SEC. Now with that, I will turn the call over to our CEO, D. Speaker 100:01:23K. Please go ahead, sir. Hello, everyone. Thank you for joining us today. I'm pleased to reconnect with you all on this call. Speaker 100:01:48Before we start, I'll be sharing as before, we will be sharing our company's latest progress in both English and Chinese to accommodate our domestic and international investors. We're excited to report another quarter of high quality growth. From July to September 2024, our quarterly retail transaction volume reached 6,005 units, representing a sequential increase of 47% and a year over year growth of 163%. Our vehicle sales efficiency remains robust with inventory turnover days maintained below 30 days, much lower than the Chinese industry average of 55 to 60 days. Our gross profit margin also expanded to 7%, marking a new high since we transitioned to our self operated business. Speaker 100:03:14We anticipate that retail transaction volume in the next quarter will be 7,800 units to 8,100 units representing a year over year increase of over 150%. Customer satisfaction with purchasing vehicles from Yuxin has remained at the highest level in the industry for 11 consecutive quarters with our net promoter score rising to 66 this quarter. By leveraging advanced intelligent reconditioning factories to produce high quality used cars, a comprehensive and reliable sales service system and the application of full stack digital technology, our super store model offers significant advantages over traditional car dealerships. The sales conversion rate of customers visiting our stores exceeds 40%. As our base of transacting customers continues to grow, our positive reputation is reaching potential customers more rapidly, further consolidating our competitive advantage in regional markets. Speaker 100:05:32Importantly, used car transactions have traditionally been considered non standard processes. However, our efforts and achievements in standardizing the entire transaction process from inspection and reconditioning to sales, delivery and after sales services has been increasingly recognized by the industry. Earlier this month, we were honored to be named a corporate standard leader in China's used car industry by 8 government ministries, including the State Administration for Market Regulation, the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the Ministry of Finance and the People's Bank of China. We will continue to elevate our product and service standards, beating the high quality development of China's used car industry. We are also actively executing various business initiatives. Speaker 100:07:09First, we are steadily increasing our inventory levels to meet the strong consumer demand for car purchases. At the same time, by leveraging the one stop transaction service environment of our offline Sprint stores, we are enhancing the penetration of value added services to contribute more to our gross profit. 2nd, we're gradually supplementing and optimizing our Sprint store staffing to accommodate the demands of our expanding business scale. Additionally, as our existing customer base grows, we're further improving our service network by deploying additional maintenance service outlets in other areas of the cities where our superstores are located. This allows us to be physically closer to our customers meeting their daily vehicle maintenance and servicing needs. Speaker 100:08:18Driven by continuous sales growth, ongoing improvements in gross profit margins and consistent expense optimization, we have achieved adjusted EBITDA profitability at the superstore level this quarter. We remain on track to achieve our goal of company wide adjusted EBITDA profitability in the upcoming December quarter. Building on our proven superstore model, the expansion of our new super stores is progressing smoothly. Following our cooperation agreement with the Zhengzhou Airport Economic Zone, we're pleased to announce that we have entered into another cooperation agreement with the city of Wuhan. Wuhan is a major city in Central China with a population of 14,000,000 and a vehicle ownership of 4,000,000. Speaker 100:09:50Additionally, Wuhan has a well developed automotive industry value chain that is known as China's Auto Valley, offering massive potential for business development. Our superstores in Zhengzhou and Wuhan are expected to commence operations next year. Furthermore, we are in discussions with several other cities. The expansion of new superstores will significantly enhance Yixin's market presence in new regions, driving future sales growth and financial performance. Speaker 200:10:27John, please. Speaker 100:10:30And that concludes my remarks for today. And now I would like our CFO, John, to provide a closer look at our financials. John, please go ahead. Speaker 200:10:38Okay. Speaker 100:11:02Thank you, D. K. Hello, everyone. We will deliver our remarks in both Chinese and English to communicate better with you. And first, I would like to know that to better align with the common practice in the investment community, we have adjusted our fiscal year this quarter. Speaker 100:11:20Our fiscal year now runs from January 1 to December 31 each year instead of the previous period from April 1 to March 21. For the period from July to September 2024, which is now the Q3 of fiscal year 2024, we once again delivered very strong growth. Transaction volume increased significantly on top of last quarter's record high. Quarterly retail transaction volume reached 6,005 units, representing a sequential growth of 47% and a substantial year over year growth of 163%. This quarter total retail vehicle sales revenue was RMB440 1,000,000 representing a sequential increase of 37% and a year over year increase of 79%. Speaker 100:12:54The average selling price of retail vehicles decreased from RMB109000 in the same period last year to RMB74000 this quarter. The strong increase in transaction volume had offset the impact of lower vehicle prices on overall revenue. As for the wholesale segment, our 3rd quarter wholesale transaction volume was 10 41 units, a sequential decrease of 31% and a year over year decrease of 35% with total wholesale vehicle sales revenue of RMB37.8 million. Combining retail and wholesale, total revenues for the 3rd quarter were RMB497 1,000,000, representing a sequential increase of 24% and a year over year increase of 40%. And this quarter, our gross profit margin was 7%, an improvement from the previous quarter. Speaker 100:14:32Importantly, our gross margin is on an upward trend. And with the market recovering and higher penetration of value added services, we anticipate significant room for further improvement. And while our performance and operational efficiency have improved substantially, we continue to enforce strict cost and expense control. This quarter, our adjusted EBITDA loss was RMB9.2 million, a reduction of 73% quarter over quarter and 80% reduction year over year. Looking ahead to the Q4 of 2024, our retail transaction volume is expected to continue its growth trend reaching 7,800 units to 8,100 units with total revenues projected to be between RMB560 1,000,000 and RMB580 1,000,000. Speaker 100:16:05We also plan to achieve positive adjusted EBITDA for the company in the 4th quarter. And that concludes our prepared remarks for today. Thank you, everyone. Operator, we're now ready to begin the Q and A session. Operator00:16:28Thank you. We will now begin the question and answer session. The first question today comes from Gary Zworychak with Water Tower Research. Please go Speaker 200:17:20ahead. Hi, everyone. So we've seen that in previous years, China's used card transaction volumes grew by double digits annually. But now in recent months, the growth rate has significantly slowed. I think the year over year growth is like around 5% from January to September. Speaker 200:17:39So could you share whether the development of China's used car market is slowing down or not the reasons behind the trend and your outlook for the market's future? Speaker 100:17:54All right. Thanks, Gary. Let me translate that question first. Okay. Thanks for the question. Speaker 100:18:56Yes, thanks for the questions. This is D. K. And this year we have observed a moderation in the growth rate for both new and used car transactions in China. And specifically the production and sales of new cars have increased by approximately 2% year over year, while used car transactions have grown by about 5%. Speaker 100:19:15The primary factors contributing to the slowdown include fluctuations in the economic environment, which have somewhat suppressed consumer demand for cars. And additionally, the used car market faced headwinds due to price reductions in new cars during the first half of the year, which impacted consumer sentiment towards purchasing used vehicles. However, despite these short term challenges, we remain highly confident in the long term prospect of Chinese used car market. First, China's per capita car ownership is still less than 1 third of that of the United States and the overall car ownership in the country continues to rise. And second, the Chinese used car market is still in a very early stage of development. Speaker 100:20:27We expect it will maintain double digit transaction volume growth in the coming years. In fact, since the second half of this year, we've already begun to see a rebound in used car transaction volumes. So for us, we've achieved around 150 percent year over year growth in retail transaction volume over the past few quarters. While our market share in the two cities where our current superstores are located has exceeded 15%. Our nationwide market share remains relatively low because we're currently focusing on deepening our presence through our offline superstore model in these cities. Speaker 100:21:38And this indicates significant headroom for growth. In the coming years, we plan to open several new superstores every year, which will drive sustained growth in our sales volume. And we believe that our sales growth rate will significantly up pace back of the overall market. And that's our answer to the question. Operator, we can move on to the next. Speaker 100:22:03Thank you. Operator00:22:07The next question comes from Fei Dai with TF Securities. Please go ahead. Speaker 300:22:36It's encouraging to see the company expanding with Neustar. Could you provide the timeline for the 2 new stores planted in Zhengzhou and Wuhan from construction to operating to achieving individual stores profitability? Also, what impact will this have on the company's financial performance in 2025? Thank you. Speaker 100:23:46Hi, this is John and I will address your questions. Both of our new stores are progressing as planned. The Wuhan store is expected to open in the first half of twenty twenty five, while the Zhengzhou store is anticipated to open in the second half of 2025. And now building on the experience of experience and refinement from our superstore models in Xi'an and Hefei, we are fully we've already fully validated this concept and accumulated valuable operational know how. So as a result, we expect these new stores to reach breakeven within 6 to 12 months after opening. Speaker 100:24:58Regarding the impact on our financial performance, this will largely depend on the rollout schedule of the new locations. Prior to opening, we will need to invest operating capital primarily for purchasing equipment for reconditioning facilities and acquiring vehicles. This investment will be phased in gradually as our inventory levels grow. So the initial capital requirement for each new store won't be substantial. We also anticipate a normal level of operating losses during the 1st 6 months after store opens. Speaker 100:25:32But starting around the 6th month, we expect the impact on our income statement to begin turning positive. So that's our answer to your first question. Speaker 300:26:19Translated in English, over the past few quarters, the company has consistently mentioned increasing inventory with inventory assets growing by about 13% each quarter. I have two questions. The first is from a market demand perspective, how do you plan the upper limit of inventory levels in different cities? The second is, will the 30 day turnover rate decrease as inventory increase? And how does the company plan to balance inventory levels and the turnover efficiencies? Speaker 300:27:00Thank you. Speaker 100:27:26And this is P. K. And I will address that question. Our approach to planning inventory levels in different cities is closely tied to the local car ownership levels and our targeted market share in those regions. For example, in a city with approximately 500,000 registered vehicles and considering that new cars typically enter the used car market after about 7 years, the annual used car transaction volume in the city will be around 70,000 units and this translates to approximately 4,000 units per month. Speaker 100:28:38In our existing markets like Xi'an and Hefei, we have achieved a market share exceeding 15% with an ultimate goal of surpassing 20%. To put this into perspective and also to highlight our competitive advantage and effective business model, The leading used car companies in the U. S. Generally attain around a 3% market share only. So based on these metrics, in cities with 500,000 vehicles capturing 20% of the monthly used car transaction, which will be around 1200 units, supports the operation of a superstore with an inventory capacity of approximately 1,000 cars. Speaker 100:29:23In larger cities such as Zhengzhou and Wuhan where car ownership is around 5,000,000, our superstores can effectively manage inventory capacities of around 10,000 cars. So when entering a new city, we first established an inventory plan that aligns with the city's car ownership levels and our market share objectives. We then progressively scale our inventory in line with sales growth, which helps us enhance market penetration while efficiently managing resources. Since March of this year, we have been steadily increasing our inventory levels. By the end of September, our inventory was approximately double that of March end levels. Speaker 100:31:04Notably, our monthly sales have more than doubled during the same period, meaning sales growth has outpaced inventory growth. So we've actually achieved an acceleration in inventory turnover rather than a decrease. This is due to several factors. First, the market has been recovering with strong demand driving higher sales volumes. And second, we as we expand our scale, consumers benefit from a wider selection of vehicles available in our superstores. Speaker 100:31:37The increased variety enhances our brand attractiveness, effectively making our stores the preferred destination for used car purchases. As a result, more customers are drawn to our brand, improving sales efficiency. Currently, the inventory levels at our 2 existing superstores have not yet reached their planned limits. So we aim to maintain an inventory turnover rate of around 30 days even as we continue to increase inventory. And that's our answer to your second question. Operator00:32:17This concludes our question and answer session. I would like to turn the conference back over to the company for any closing remarks. Speaker 100:32:25All right. Thank you again for joining today's call and for your continued support in Uxin. We look forward to speaking with you next quarter. Thank you. Speaker 200:32:35Appreciate it, Zijian. Thank you.Read morePowered by