Uxin Limited

Ladies and gentlemen, thank you for standing by and welcome to Yosef's earnings conference call for the quarter ended December 31, 2020. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. And 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 over to your host for today's conference call, Eric Yuan. Please go ahead, sir.

Thank you, Operator. Hello, everyone. Welcome to YouQin's earnings conference call for the quarter ended December 2020. On the call today are DK, founder and CEO, and John Lin, CFO. DK will reveal 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&A session. 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 U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management current knowledge and assumptions about future events that involve known or unknown risks and uncertainties, which could cause actual results to deform materially from those in the forward-looking statements. Yuxin does not undertake any obligations to update any forelooking statement, except as required under the applicable law. For more information about potential risks and uncertainties, please refer to our findings with the SEC. With that, I will now turn the call over to our CEO, DK. Please go ahead, sir.

Thank you, Eric. Hello, everyone. Thank you for joining our earnings conference call today. We are pleased to report that we have completed our strategic transformation into an inventory-owning model in the quarter ended December 31, 2020. The majority of online used car transactions in December was sold from our own inventory. This successful transaction reflects our commitment and ongoing efforts to better serve our customers with our online products and services. Operating as a national wide online used car dealer with our own inventory, we now have much strong control and management over the entire services and supply chain. From the selection and quality of our used car inventory, to online car consulting for buyers and customer services, and our own delivery and after sale services national wide. Two strengths. our ability to provide a used car of high quality and valuable money. We are building our own inspection and reconditioning center, or IRC, where we can refurbish selected inventory to a like new condition. Our first IRC in Xi'an has been operating since March 2021. Through our new network of IRC, we can reflect facilitate in-house refurbishing for better control of quality and consistency so that the used car will sell meet our own quality excellent standards. We're also able to better serve the markets within the services reviews of each IRC location. Moreover, with this ongoing improvements to our product and the services offerings, we have been closely monitoring our net promoter score of NPS. We have seen our NPS increase to 42 during the report quarter. Up from 30 in the quarter ended September 30, 2020. And only 10 in the quarter ended June 30, 2020. The significant improvement in NPS is the recognition by our customers of our value proposition that we are providing even higher quality value for money used car and the best in class online car purchasing services. It also give us greater confidence that we have the right development strategy in place and are hiding in the right direction with our online business. The increasing NPS core has also strengthened our behalf that our word-on-mouth referral strategy will provide a formal foundation for further development and will generate solid and sustainable long-term growth, reinforce our brand and market position in China. China's USECOM market has huge growth potential, and the Chinese government continues to introduce preferential policies for the industry. The value add tax on used car sales has been cut to 0.5% from 2% in May 2020. The General Office of the State Council has recently required all regions to remove restriction on cross region transactions and the title transfer of used car. The government has also published its blueprint for the digital documentation of used car. Registration and other documentation will be completely digitized for online transmission and recognition. This will simplify the documentation process, reduce title transfer costs, and increase efficiency of cross-region used car transactions. Digital document will be in testing in design region in June, expand to major cities in September, and be adopted nationwide in first half of next year. As a leading online used car dealer in China, Yuxin believes this policy will create a more efficient and sustainable environment for the used car business in the long run. We will closely monitor government policies, improve vehicle quality, and develop services to a high level to contribute to the transaction of China used car industry. Last week, we entered into a strategic partnership with JD.com to launch our self-operated online store for used car transactions through JD's platform. Collaboration will provide customers with one-stop online used car purchasing solution, including used car inspection, purchasing, insurance, and after-sales services, and includes plan for joint development of data management, technology, inspection standards, and integrated supply chain in the used car business. We are committed to using big data and internet technology to empower the used car industry in order to raise industry standard and the level of services. We believe cooperation with GD.com will offer our customer a higher quality and a more reliable used car purchasing experience than exists in the market as present. As a result, We are very pleased with the progress we have made this quarter. We are also encouraged by the recognition of our success by two well-established Asia funds, and we have entered into a binding term sheet for a potential investment of up to $300 million. This investor has expressed a strong belief in the potential of China's used car market. They have acknowledged Yuxin's leading market position, strong branding, and capacity to provide high-quality cars and services to customers. We are glad that they also share the same respect for Yuxin's business model, growth strategy, and execution plans. The financing is proceeding as expected. We will work closely with these investors to transform China's used car industry and create long-term value for our customers. With that, I'd like to turn the call over to our CFO to walk you through the financial results. John, please.