Ladies and gentlemen, thank you for standing by and welcome to Uxin’s Earnings Conference Call for the Quarter Ended June 30, 2020. And at this time, all participants are in listen-only mode. And after management’s prepared remarks, there will be a question-and-answer session. 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 Nancy Song, Investor Relations Director of Uxin. Please go ahead.

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 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 U.S. Private Securities Litigation Reform Act of 1995. These statements are made 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.

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 the 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 ourselves of the historical guarantee liability. With this business change in place, the financial impact of divesting the loan facilitation business, certainly its financial guarantees and divesting the B2B business was and will continue to be reflected in our financial statements for the quarter ended June and September 30, 2020. Along with this business divestiture, we have shifted our business strategy from market business teams to a core focus and shifted our growth strategy from being a financing-driven to one that’s in used – used in car quality and service oriented. Under the previously – previous financing-driven approach, where we experienced rapid transaction volume growth, we were also weighed down by a significant underlying credit risk and cost constraints on flow, because we have to take all the guarantee liabilities and buyback as a default loan when it’s delinquent assets meet certain criteria. Now, with this data behind us, we are entering into a new phase of development as a transaction oriented online used car dealer, where our focus is squarely on offering high-quality value-for-money used cars and the premium purchasing services. We believe that continuously enhanced used car quality and the purchasing services is the best way to maximize customer value and gain more customer trust and word-of-mouth referrals. Although it takes time to build a reputation and grow at scale with this used car and service-oriented approach. We believe that this is the key to maintaining our long-term competitive advantages and achieving sustainable growth.…

Okay. Thanks, D.K. Hello, everyone. Thanks for joining us today. As DK mentioned in the completing the online transformation of our transaction process, we have also restructured our cost and expenses to adapt to the new business and the service model. We now have a streamlined inventory sourcing and car inspection team, online sales consultant team and back-office support teams. In addition, higher customer satisfaction and more word-of-mouth referrals also translate into more organic traffic and lower need for external traffic acquisition. All these factors will enhance our long-term operational efficiency as we achieve greater scale over time. Thanks to the tax cost that was implemented in China since May this year, the used car dealers now only need to pay 0.5% off of a used car sales. This means we now have a more accommodative fiscal environment in which to operate as the actual dealer. We will work with our financial institutions in the form of inventory financing to selectively building our own inventory, so that it will allow us to adequately manage our cash flow. Accessing used cars at more attractive acquisition costs by moving up, the supply chain will not only reinforce our control over inventory, but also help us to potentially drive margin expansion over the long run. We believe this revamped inventory strategy will better position us to generate long-term value for our shareholders, while maximizing the customer value and experience. Now, let me walk you through our financial details for the quarter ending in June. Please note that the results I will discuss related to continuing operations only. All numbers are in RMB unless otherwise stated. Also please note that some numbers I refer to are non-GAAP numbers. You can find a reconciliation of these numbers at the bottom of our earnings release. In…

Thank you, Mr. Zhen. Operator, we would like to open the call for questions now.

Thank you. [Operator Instructions] We have our first question from the line of Eddy Wang of Morgan Stanley. Please go ahead.

Hi. This is Michael. Thank you for taking my question. Let me translate myself. So my question is about, the long-term outlook of the used car industry in China, especially for the next few years. So – and under that background, I think what’s the advantage of the inventory taking business model we will adopt, yes, just want to hear your thoughts on that? Thank you.

In the past 1 or 2 years upgrading product quality and services is a keynote in every consumer-facing industry and sector and high-quality production and satisfaction services are the foundation of selling more customers and building reputation. Under this environment, where individuals are highly connected with each other and the information exchange is highly effective building reputation and gaining word of mouth referrals is key to our company’s long-term sustainable growth and this is also very true in the used car industry, after over a decade of development, we are their last industry senders and honestly, the industry – the used car industry unfortunately had a less than satisfactory reputation. We believe being honest and sincere when servicing customers offering them high-quality used cars and premium services is the best way to transform the entire industry and achieve a healthy and long-term growth for the overall sector. Yes. So in the past 1 or 2 years, more and more consumers are turning away from new cars and chose to buy used cars. This is not simply because they cannot afford buying a new car, but more about they have now have a more regular consumption philosophy. They want to spend less on a used car, but get a like-new condition, which is almost as good as a new car. With this trend more and more used car dealers will come up willing to offer high-quality used cars and premium services. And in turn with this benefit, more and more consumers will also chose to buy used cars as well and affected by the soft macro economy, overall, used car industry will see a very slow growth rate here, but looking at next 1 year or 2, we are expecting it will gradually recover to a double-digit growth. We decided to…

Thank you.

Thank you. I would now like to hand the conference back to Ms. Nancy Song for closing remarks. Please go ahead.

Thank you again for joining our call today and for your continued support in Uxin. We are looking forward to speaking with you again in the future. Thank you.