Uxin Limited (NASDAQ:UXIN) Q1 2021 Earnings Conference Call - Final Transcript

Sep 08, 2020 • 08:00 am ET


Uxin Limited (NASDAQ:UXIN) Q1 2021 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to Uxin's Earnings Conference Call for the Quarter-Ended June 30 of 2020. [Operator Instructions] Today's conference call is being recorded. If you have any objections you may disconnect at this time.

I would now like to turn the call 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 earnings conference call for the quarter ended June 30, 2020. On the call today are D.K., our Founder and CEO; and Zhen Zeng, our CFO. D.K. will review business operations and the Company highlights followed by Zhen who will discuss financials and the guidance. They both will be available to answer your questions during the Q&A session that follows.

Before we start, I would like to remind you that this call may contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are made -- are based on management's current knowledge and assumptions about future events that involve known or unknown risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. Uxin does not undertake any obligations to update any forward-looking statements except as required under applicable law. For more information about the potential risks and uncertainties, please refer to our filings with the SEC.

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

Kun Dai

Thank you, Nancy. Hello, everyone. Thank you for joining our earnings conference call today. In the most recent two quarters, the impact of coronavirus pandemic continued to create challenges for overall economic. Given the current macro environment, we are glad that we successfully completed the divestiture of our loan facilitation business and relieved ourself of the historical guarantee liabilities.With this business changes in place, the financial impact of the divesting the loan facilitation business, happening as financial guarantees and divesting the B2B business was there and will continue to be reflected in our financial statements for the quarter ended June and the September 30, 2020. Along with this business divestitures, we have shifted our business strategy from multi-businesses teams to our core focus and shifted our growth strategy from being finance -- financing-driven to one that in used car quality and service oriented.

Under the previous financing-driven approach, we experienced a rapid transaction volume growth. We were also weighed down by a significant underlying credit risk and constrains on flow because we had to take all the guarantee liabilities and buyback the default loan when this delinquency assets meet a certain criteria.Now with this drive behind we entered into a new phase of development as a transaction-orientated online used-car dealer where our focus is finally on all in high quality value for money used cars and the premium purchasing services. We believe that continuously enhanced used car quality and purchasing services is the best way to maximize customer value and gain