Ladies and gentlemen, thank you for standing by, and welcome to Uxin's Earnings Conference Call for the quarter ended September 30, 2025. At this time all participants are in a listen-only mode; instructions for the question-and-answer session will be provided shortly. Today's conference call is being recorded. I would now like to turn the call over to your host. Please go ahead.

Thank you, operator. Hello, everyone. Welcome to Uxin's earnings conference call for the third quarter ended September 30, 2025. On the call with me today, we have D.K., our Founder and CEO; and John Lin, our CFO. D.K. will review business operations and company highlights, followed by John, who will discuss financials and guidance. 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. Now with that, I'll turn the call over to our CEO, D.K. Please go ahead, sir.

Hello, everyone. In the third quarter of 2025, we continue to build strong growth momentum. Retail transaction volume reached 14,020 units, representing a 134% year-over-year increase and marking the sixth consecutive quarter of year-over-year growth above 130%. Despite a significant expansion in inventory, our inventory turnover remained at around 30 days. Customer satisfaction also remained at an industry-leading level; our Net Promoter Score (NPS) was 67 this quarter, sustaining a level of 65 or above for 6 consecutive quarters. At the same time, profitability continued to improve with gross margin increasing to 7.5%, the highest level we have achieved in the past 3 years. The expansion of our superstore network has also continued to progress. Earlier this week, our Jinan Superstore officially commenced operations. Together with the Wuhan and Zhengzhou Superstores that opened earlier this year, we have now completed all 3 new superstore openings planned for 2025. Our Wuhan Superstore is expected to reach nearly 1,800 retail units in December with a local market share approaching 10%. Meanwhile, our Zhengzhou Superstore is already expected to achieve approximately 900 retail units in December with market share nearing 5%. With these additions, we now have 5 superstores in operation. In addition, we have announced strategic partnerships with local governments in Tianjin, Guangzhou, and Yinchuan to jointly invest in and operate new superstores. Each project is designed to support a capacity of more than 3,000 vehicles. We plan to open 4 to 6 additional superstores in 2026, marking a transition into a phase of accelerated nationwide expansion. We believe Uxin has established a clear path to scaling, driven by more precise pricing, higher customer satisfaction, and superior operating efficiency. Our machine learning-based pricing system ensures each vehicle is competitively priced in real time, and our fully integrated factory-logistics-retail model enables end-to-end control. For the fourth quarter, we expect retail transaction volume to exceed 18,500 units, representing year-over-year growth of more than 110%. For the full year 2025, we expect to surpass 50,000 units, reflecting growth of more than 130%. With that, I'll turn the call over to our CFO, John.

Thank you, D.K. In the third quarter, retail revenue totaled RMB 820 million, up 84% year-over-year. The Average Selling Price (ASP) for retail vehicles was RMB 58,000, compared to RMB 59,000 in the prior quarter and RMB 74,000 in the same period last year. While ASP declined as we shifted toward a more affordable inventory mix, the strong growth in transaction volume more than offset this. We expect ASP to remain relatively steady in the near term. Turning to our wholesale business, transaction volume was 1,884 units, an 81% increase year-over-year. Total revenue for the quarter reached RMB 879 million, representing a 77% increase year-over-year. Gross margin for the quarter was 7.5%, up from 7% a year ago and 5.2% in the prior quarter. This improvement was primarily attributable to the easing of price competition in the new car segment and the Wuhan Superstore moving beyond its start-up phase. Adjusted EBITDA loss narrowed significantly to RMB 5.3 million, a 43% reduction year-over-year. Looking ahead to the fourth quarter of 2025, total revenue is expected to exceed RMB 1.15 billion. We are now ready to begin the Q&A session.

Congratulations on the 3-year high in gross margin. How does management view the sustainability of this level, and what factors could drive further improvement?

There are two main drivers: first, new car pricing has stabilized; second, the profitability of the Wuhan Superstore has improved significantly. Looking ahead, we believe there is still substantial room for expansion. Policies aimed at reducing excessive competition should keep prices stable. Additionally, our data-driven pricing capabilities are reducing errors and loss-making vehicles. Finally, value-added services have significant penetration upside. Our long-term target gross margin is around 10%, and our existing Xi'an and Hefei stores are already approaching this.

Following the opening of Zhengzhou, ramp-up seems faster than Wuhan. What initiatives drove this? Also, how long do you expect new superstores to take to reach stable operations?

Zhengzhou benefited directly from what we learned in Wuhan regarding construction, inventory build, and sales ramp-up. Furthermore, our larger pool of transaction data has improved our pricing capability. For a standard new superstore with a 3,000-vehicle capacity, we expect it to reach breakeven in about 9 months. We expect inventory to reach planned capacity in 18 to 24 months, at which point profitability should reach a mature level.

Carvana recently surpassed $100 billion in market cap. Could you comment on the similarities and differences between their model and Uxin’s?

The biggest difference is the sales channel; Carvana is online-only, while Uxin uses offline superstores for over 70% of sales. In China, cars represent a larger share of household assets, so consumers prefer in-store experiences and test drives. Similarities include the own-inventory model with self-operated reconditioning and a focus on precise pricing for high turnover. Carvana sells 500,000 units annually; we sell 50,000. We are confident we can reach Carvana's current volume within 4 to 5 years by sustaining over 100% year-over-year growth.

This concludes our question-and-answer session. I would like to turn the conference back over for any closing remarks.

Thank you all for participating. We look forward to reporting to you soon.

The conference has now concluded. Thank you for attending. You may now disconnect.