Bitauto Holdings Limited (NYSE:BITA) Q1 2020 Earnings Conference Call - Final Transcript

Jun 12, 2020 • 08:00 am ET

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Bitauto Holdings Limited (NYSE:BITA) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello and thank you for standing by for Bitauto's First Quarter 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. After the management's prepared remarks, there will be a question-and-answer session. And today's conference is being recorded. If you have any objection, you may disconnect at this time.

I would now like to turn the meeting over to your host for today's conference.

Executive
Unidentified Speaker

Thank you. Welcome to Bitauto's first quarter 2020 earnings conference call. Speakers from the Company today are Mr. Andy Zhang, CEO; Mr. Xiaoke Liu, President; and Mr. Ming Xu, CFO.

After management's prepared remarks, Andy, Xiaoke, and Ming will be available to answer your questions. In addition, Mr. Jiang Dong and Mr. Nick Hu, President and Financial Controller of Yixin will be available to answer your questions related to Yixin.

Before we proceed, please note that discussions today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities and Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC, including registration statement on Form F1. Bitauto does not undertake any obligations to update any forward-looking statement except as required under applicable law.

This call will include discussions of certain unaudited non-GAAP financial measures. Please refer to our earnings release, which was issued earlier today for reconciliations of these unaudited non-GAAP measures to the most directly comparable unaudited GAAP measures.

As a reminder, this conference is being recorded. In addition, a live and archived webcast of the conference will available on our website.

I will now turn the call over to Andy Zhang, CEO of Bitauto.

Executive
Andy Xuan Zhang

Hello, everyone, and thank you for joining us for our first quarter 2020 earnings conference call. During the quarter, the COVID-19 outbreak significantly impacted economies in China and throughout the world, affecting most industries including the automobile sector. With the subsequent nationwide lockdown, new passenger vehicle sales for the first quarter of 2020 declined significantly year-over-year. While the difficult industry environment adversely impacted our advertising transaction businesses, we are however pleased that our key operational metrics maintained stable growth throughout.

According to QuestMobile, daily active users of Bitauto media app and the combined DAU of both the Bitauto media app and Auto Pricing app increased by 259% and 46% respectively, in April 2020 compared with October 2018, when we introduced the upgraded Bitauto app.

Despite the industry headwinds, our overall number of sales leads remained resilient, showing with only a slight 2.6% decline year-over-year for the quarter. And the proportion of our organic sales leads maintained an upward trajectory, reaching 73%.

As a result of ongoing improvement in the quantity and the quality of our sales leads, our subscription business continued to gain recognition from our dealer customers. As a result, our annual retention rate for paying subscribers achieved a