Uxin Limited (NASDAQ:UXIN) Q3 2019 Earnings Conference Call - Final Transcript

Nov 27, 2019 • 08:00 am ET


Uxin Limited (NASDAQ:UXIN) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to Uxin's Third Quarter 2019 Earnings Conference Call. [Operator Instructions] After management prepared remarks there will be a Q&A session. [Operator Instructions]

I would now like to turn the call over to Nancy Song, Investor Relations Director of Uxin. Please go ahead.

Nancy Song

Thank you, operator. Hello, everyone. Welcome to Uxin's third quarter 2019 earnings conference call. Today D.K. our Founder and CEO and Zhen Zeng, our CFO will discuss our financial results for the third quarter. Following the prepared remarks, D.K. and Zhen will be available to answer your questions. Before we start, I would like to remind you that our statements today will contain forward-looking statements that we make under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on the management's current knowledge and assumptions about future events that involve risks and uncertainties, which could cause actual results to differ materially from our expectations. Uxin does not undertake any obligations to update any forward-looking statement, except as required under applicable law. For more information about the potential risks and uncertainties, please refer to the Company's filings with the SEC.

With that, I will now turn the call over to our CEO. D.K, please.

Kun Dai

Thank you, Nancy. Hello everyone, thank you for joining our third quarter 2019 earnings conference call. We are pleased to report a solid set of results for this quarter. Our total revenue increased by 33% year-over-year to RMB461 million, exceeding the high end of our previous year [Phonetic] guidance. In particular 2Q revenue recorded another robust year-over-year growth of 247%. And even more encouragingly our adjusted net loss narrowed notable by 40% year-over-year and 19% quarter-over-quarter to RMB268 million, demonstrating the results from our strong commitment to control costs, enhance operating efficiency and improve margin profile.

Looking at our 2C business in further detail, we completed over 23,500 online used car transactions during the quarter, reflecting strong year-over-year growth of 107%. As some cities and regions have adopted the new emission standards China Six starting from July and don't allow car with lower emission standards to register locally, we did experience certain impact from this policy change, which resulted in relatively flat quarter-over-quarter transaction volume. Despite the impact, we are very pleased that our unique value proposition and the strong monetization ability helped to further increase our 2C take rate to 11.6% from 11.2% in the second quarter and 7% a year ago.

This translated into per unit revenue of around RMB14,000 for the third quarter, up from about RMB13,000 in the second quarter. Looking ahead, the used car market is typically quite resilient. As more used car inventory meeting the new emission standard becomes available on the market. The sector will gradually digest the impact from policy change. We are also confident that we will be able to deliver strong sequential and year-over-year growth for online transaction volume in the coming year-end peak season. Underpinned by