Ladies and gentlemen, thank you for standing by, and welcome to Uxin's earnings conference call for the fourth quarter and fiscal year ended March 31st, 2022. At this time, all participants are in listen only mode. After management's prepared remarks, there will be a Q&A 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 your host for today's conference call, Ms. Joyce Tang, Investor Relations Director of the company. Please go ahead, ma'am.
Thank you, operator. Hello, everyone. Welcome to Uxin's earnings conference call for the quarter ended March 31st, 2022. On the call today are DK, Founder and CEO, and John Lin, CFO. DK will review 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 that follows. Before we start, I would like to remind you that this call may contain forward-looking statements made under the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. These statements 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 SEC. With that, I will now turn the call over to our CEO, DK. Please go ahead.
Thanks, Joyce. [audio distortion]
Hello, everyone. Thank you for joining our earnings call today. To better communicate with both domestic and international investors, my prepared remarks today will still be in both English and Chinese.
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In the fourth quarter last year, I elaborated on our growth strategies and business model transformation in order to provide our customers a hassle-free used car purchase experience with massive high quality and value for money vehicle collections, as well as superior before and after sales services. Having successfully transitioning from a third party commission-based model to an inventory-owning model, we opened Xi'an IRC, our first vehicle inspection and reconditioning center, as well as a warehouse type super store.
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In the fiscal year 2022, we have continued in the same direction and remain committed to our mission of creating an industry leading used car buying experience with a customer-centric approach. Despite the various challenges we face, such as the repeated resurgence of COVID, we have made significant progress in core used car offering one-stop service, customer-centric experience, and social responsibility.
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In the fiscal year 2022, we achieved our business goals for the year. Total transaction volume for the year was 15,755 units, representing a 49% year-over-year growth. Total retail transaction volume for the year was 5,211 units, maintaining sequential growth momentum in every quarter of the year. Total revenues were RMB 1.64 billion, representing a 149% year-over-year growth. Our Xi'an IRC operations were disrupted by COVID countermeasures in the fourth quarter, which is also the traditional used car off-season due to the Spring Festival holidays. However, we achieved a higher retail transaction volume as a result of the sales ramp-up in our Hefei IRC. While we still occasionally face COVID-related challenges, we are committed to executing our development plan and sustaining our growth momentum.
上一个财年，我们在合肥落成了第二个优信的IRC，用专业技术和现代化工艺实现大规模整备翻新，打造高品质高性价比的二手车产品。目前在合肥已开业的IRC是优信与合肥市长丰县政府联合投资人民币25亿元共同打造的合肥二手车智能再制造工厂项目的第一阶段。合肥长丰项目是由优信与合肥市长丰县政府联合投资25亿人民币共同打造的。合肥积极开放的经济政策，发达的汽车产业，成熟的上下游供应链，将为优信再制造工厂提供巨大的助力。目前项目进展顺利，工厂完成投产后，将极大地提升整备效能，实现年产6到10万台的二手车再制造规模，为优信提供高质量且稳定的车源供给，支持业务长期健康的发展。
After building our first IRC in Xi'an, we opened our second IRC in Hefei in November 2021. This is the first phase of our Hefei IRC. The whole Hefei IRC is backed by our joint investment of RMB 2.4 billion with Hefei Changfeng County Government. Hefei is renowned for its booming auto industry with favorable policies, leading vehicle manufacturers as well as mature upstream and downstream supply chain. Consolidating these resources, we plan to leverage our expertise and state-of-the-art technologies to recondition vehicles at a super large scale. The design production capacity is expected to be between 6,000 and 100,000 units annually to ensure a stable and reliable supply of high quality and cost effective used cars.
The project is progressing well and the completion of the Hefei IRC will serve as a solid foundation for Uxin to gain customer trust and fuel its sustainable business growth in the long term.
在车源检测、整备等供应链关键环节的建设上，我们也不断打磨。在拓展车源的拓展上面，我们建立了多元化的出售渠道，包括消费者采购、拍卖平台、主机厂直营店及经销商网络。其中消费者采购作为重要的车源渠道，采购比例在第四季度达到了30%以上。向消费者直接采购有助于降低我们的采购成本，在销售端也可以更好地让利于消费者。
In the past fiscal year, we have heavily invested in the refinement of our used car supply chain, especially in vehicle acquisition, inspections and reconditioning. We have established acquisition channels to purchase used cars from individual consumers, auction platforms, auto manufacturers and car dealerships. Direct purchase from individual consumers accounted for 30% of our total acquired vehicles in the fourth quarter. The increasing proportion of such direct purchase allow us to further reduce our acquisition costs, which will ultimately enable us to offer more competitive pricing to our customers.
在车辆检测上，优信以获得国家专利的二手车检测系统查客为基础，不断优化检测流程和升级检测设备，保证公司在售车辆全部符合国标要求。在整备环节，我们不断改进整备流程和整备工艺，以打造标准化的生产车间，并建立了贯穿车源采购、检测、整备、上架出售及售后服务等一体化的信息系统。
As for vehicle inspection, we actively upgraded and optimized our inspection equipment and system powered by Check Auto. Check Auto is our national patent used car inspection system to ensure that our retail vehicles fulfill or surpass all national standards. On the reconditioning front, we further streamline workflows and introduce modern techniques. These initiatives help us improve vehicle quality with lower costs through economy of scale under our IRC operations. To maximize this end-to-end supply chain efficiency, we have developed an integrated information system covering the whole process from vehicle acquisition, inspection and reconditioning to sales and after sales services.
伴随着新能源汽车的高速发展，优信在新能源二手车领域也积极布局。我们现在已经覆盖了包括蔚来、理想、小鹏、比亚迪、特斯拉等多个主流新能源车品牌，并前瞻性地打造了新能源二手车的车源采购渠道，实现了检测整备及售后服务能力。同时，我们积极与新能源主机厂商、经销商和零部件供应商建立战略合作关系，共同推进新能源二手车的健康发展。
In anticipation of the rising era of new energy vehicles, Uxin is proactively expanding its business in this domain. Our used car offerings now have multiple mainstream NEV brands, including Tesla, NIO, XPeng, BYD and Li Auto. We have proactively building vehicle acquisition channels and developed inspection, reconditioning and service capabilities that is specially designed for used NEVs. Targeting on expanding existing service types, we are establishing strategic partnerships with NEV manufacturers, suppliers of spare parts as well as NEV dealerships. With solid strategy and operational initiatives, Uxin is well prepared for the opportunities in the rising NEV market.
为了让消费者更直观地感受我们的产品和服务，我们完成了从线上销售到仓储式加线上一体化的服务模式升级。2018年，优信在行业内率先推出全国购在线商城，打破二手车交易的地域限制，成为最成熟最高效的消费者异地一站式购车首选。我们建立了西安和合肥两个IRC，作为仓储式大卖场的载体，区域客户可以到仓选购。无论是在购买环境、车辆选择还是销售服务上，仓储式卖场都颠覆了传统二手车交易市场的购买体验。
Based on our in-depth understanding of customers' used car purchasing behaviors in China, we have upgraded our sales channels from online only to an omni-channel approach. In 2018, we launched the Uxin nationwide online shopping mall, making us the first to offer one-stop online cross-region purchase services in the used car industry in China. After four years of operations, we managed to achieve best-in-class cross-region online transaction capabilities and experiences for our customers. On top of our leading online model, we open IRCs in Hefei and Xi'an as the type of warehouse superstore. The IRCs enable regional customers to have a direct in-store experience through visiting, selecting, consulting, test driving and purchasing their favorite cars.
特别是合肥卖场，当前总面积近十万平米，为已知中国最大的单体经营二手车卖场，满仓零售车辆两千五百台，涵盖从国产、合资、豪华等五十二个品牌的各种车型。两个仓储式卖场开业后，广受当地消费者欢迎，市场占有率在当地遥遥领先，并仍然在爬升。线上线下结合销售是最适合中国国情的销售方式。用IRC提升区域市场的集客能力和口碑传播，更好解决了广大消费者对优信品牌的认知和信任，也更好促进了线上的销售转化。
Especially, the first phase of our Hefei IRC is currently the largest self-owned used car superstore in China. The IRC has a total floor area of nearly 100,000 square meters, and a capacity for 2,500 retail vehicles to compact mid-size and luxury models from 52 brands. Our Hefei and Xi'an IRCs, the warehouse superstores, have become famous and popular used car shopping destinations in their respective regions. Both stores have gained leading regional market shares and are still growing. The regional brand recognition and reputation among customers will further strengthen our credibility nationwide and boost our online sales.
过去一年，我们全心全意提升产品质量和服务水平，优信已经成为中国二手车购买最可信赖的品牌之一，消费者满意度不断提升。2022年的一到三月，客户净推荐值，即NPS为61分，连续六个季度提升，比去年同期提升45%。我们根据客户反馈进行及时总结，不断改进从销售到交付再到售后各个环节的客户体验，坚持以消费者的口碑建设来实现销量高质量的增长。
Our commitment to providing high quality vehicle products and superior customer service is paying off. We are now one of the most trusted used car brands in China. In the fourth quarter, our net promoter score, NPS, increased by 45% year-over-year to 61, making it the sixth consecutive quarter with NPS improvement. We vigorously analyze and respond to customers' feedbacks in all aspects, from sales to delivery and after sales services. We are encouraged by the NPS increase and will remain focused on its further improvement. Uxin believes that reputation among customers is the ultimate driver of sustainable and high quality business growth.
二手车行业是国家循环经济的重要组成部分，通过流通延长汽车的生命周期，物尽其用，对降低浪费、减少污染、提高社会资源使用率具有重要作用。优信作为行业领跑者，积极传播选择二手车，选择品质生活的绿色消费体验，倡导绿色低碳的生活方式，做行业节能减排的先锋者。今年，优信也首次发布了ESG报告，致力于把可持续发展理念与公司运营及业务开展结合深度的融合，助力二手车产业高质量绿色发展。
Used car industry is an integral component of China's circular economy. The healthy circulation of used cars effectively extend the vehicle lifestyle and maximize their residual values. It also plays a critical role in lowering production waste, reducing disposal pollutions and improving resources utilization. As an industry leader, Uxin takes the concept of environmental protection seriously, and acts as a pioneer in energy conservation and emission reduction. In July 2022, we re-released our inaugural ESG report. The report highlighted how we integrated sustainable development principles into our business planning, IRC design and construction, and daily operations. Uxin is determined to lead China's used car industry to evolve in the most socially responsible and green direction.
中国的二手车市场已迎来最好的发展时期，中国已成为全球最大的汽车存量市场。2021年，中国二手车交易量突破1,700万辆，交易额已达万亿规模，且仍有极大的增长空间。
China's used car market is experiencing its golden age of growth. It is reported that China has become the world's largest auto market, measured by vehicle units, by 2021. Building on that, China's used car market is already massive, with more than 17 million units sold in 2021. It also has tremendous growth potential compared to developed markets.
从2019年国家要求落实取消二手车限迁政策，到2020年二手车交易增值税由2%降至0.5%，再到2021年，全国三百多个城市全部推行汽车档案电子化。国家连年给予政策支持，促进二手车的消费和流通。特别是今年七月，由商务部等十七个部委联合出台的关于搞活汽车流通、扩大汽车消费若干措施的通知，从市场主体的登记政策、备案到二手车的会计处理、发票开具，再到车辆的跨区域流通、转移登记，几乎覆盖了二手车流通的全环节、各领域，更表明了国家为实现二手车交易全国统一大市场，推动二手车企业向规模化、规范化、品牌化的大经销商方向发展的政策导向。
The used car industry has become a key area of focus to state regulators, who have introduced multiple supporting policies in the past four years. Notably, in July 2022, the Ministry of Commerce, together with 15 other state departments, published an official notice to stimulate auto circulation and consumption. The notice included comprehensive measures to facilitate cross-region registration and filing, regulate accounting treatment and invoice issuance, and remove restrictions on used car business operations. In 2021, government policies required the digitalization of car documents, and more than 300 cities have implemented electronic title transfer and registration. In 2020, the used car transaction value-added tax was reduced from 2% to 0.5%. All these policies and initiatives demonstrated regulators' strong guidance to build a unified national market for used car transactions.
Additionally, the policies also focused on promoting strong brands, large scale, and compliance used car companies in the industry.
优信作为覆盖全国并深耕区域市场的大型二手车企业，深耕二手车行业十余载，今天已经发展成为一家新时代的二手车品牌经销商，受益于国家政策的支持，优信将在新的机遇中迎来高速成长的机会。
We have been deeply rooted in the industry for over 11 years as a used car e-commerce company with nationwide coverage and regional market penetration. We believe that Uxin as a well-branded, super large-scale, highly socially responsible company in the used car industry will fly well when the tailwind arrives.
我们新的财年已经开始，我们将重点关注以下三方面的工作。第一，持续提升品牌影响力和客户口碑，增加销量和市场渗透率，让更多的消费者体验到我们的产品和服务。第二，在现有基础上不断加强二手车产业全链路信息化管理建设，打造以单车为颗粒度的数字化工作系统，不断强化大数据定价系统、智能选品系统、智能车辆调配系统、供应链自动化管理系统，并继续打造流水线数字化的整备翻新模式。第三，继续提升业务的运营效率，控制成本，以中长期盈利为目标，持续改善我们的盈利情况。
In the new fiscal year 2023, Uxin will focus on the following three priorities. First, to significantly extend our brand recognition and credibility among customers, to boost sales and market shares. We aim to gain more customers by enabling them to experience our products and services. Second, to further upgrade the end-to-end supply chain information system, AI pricing system, intelligence inventory management system, et cetera, at an individual vehicle level. Third, to continuously optimize operational efficiency to control costs and expenses with the ultimate target of profitability in the mid to long term.
再次感谢消费者的信任，感谢团队和员工的共同努力。我们很幸运拥有长期主义的股东和投资者对我们的支持，我们将坚持高质量发展之路，为股东带来更可持续、值得期待的回报。
Once again, I would like to thank our customers for their trust and every member in our Uxin family for their hard work. I'm so grateful for the strong support from our shareholders and investors. We will stay committed and focused to shape the industry in the new era and deliver sustainable returns to our shareholders on our journey to high quality growth.
下面请我们的CFO John介绍本季度的财务情况。
With that, I'd like to turn the call over to our CFO to walk you through the financial results. John, please.
Okay, thanks, DK. Hello, everyone. Thank you all for joining us today. I will walk you through some key financial results in the quarter and into March 31st, 2022, as well as the full fiscal year 2022. During the fourth quarter, despite the COVID and off-season impacts DK shared earlier, our total revenues were RMB 505.7 million, pretty much the same level compared to the third quarter. Thanks to retail sales volume ramp up in the Hefei IRC. Specifically, our retail revenue was RMB 319 million, representing a 37% quarter-over-quarter growth and 156% year-over-year, driven by higher retail transactions. As for the overall fiscal year 2022, it was our first full year of operation under the inventory owning model.
Driven by our continued sales growth momentum, our total transaction volume was 15,755 units, representing a 49% year-over-year growth, and our total full year revenues were RMB 1.6 billion, representing a 150% year-over-year growth. When we look at the gross margin in the first quarter, as you can see in the first three quarters, our gross margin was stable at around 4%. However, in the fourth quarter, it fell to 0.2%. The reason was that we experienced the Tianjin IRC lockdown for more than one month due to COVID, and February was the traditional Chinese New Year off-season, so used car transactions were almost frozen for a month. We have to proactively restructure our inventories and accelerate the sales of the relatively long-aged vehicles through pricing adjustments.
The inventory management actions compressed our gross margin in the fourth quarter. As a result, the overall gross margin for fiscal year 2022 was 2.9%. We did observe, after the Chinese New Year, a clear upwards trend in our retail sales, and we do expect our gross margin to gradually return to a reasonable level in the following quarters. We continued our stringent expense management in the fourth quarter. The total operating expenses were RMB 119.4 million, relatively stable compared with the third quarter. As I repeated every time, the culture of reducing unnecessary spending is already one of the company's culture in Uxin. We have been proactively seeking opportunities to optimize organizations, increase operation efficiency, and promote cost-effective technology.
As a result, our fiscal year 2022 operating expenses were RMB 409 million, representing a 48% decrease year-over-year. Consequently, the non-GAAP adjusted loss from continuing operation was RMB 96.1 million in the fourth quarter compared with RMB 68.6 million in the third quarter. The full fiscal year non-GAAP adjusted loss from continuing operation was RMB 96.1 million. It was substantially narrowed by 56% compared with fiscal year 2021. Other than the financial results, I would like to share some of our recent development in financing and our liabilities restructuring. Last year, we announced the $315 million investment by NIO Capital and Joy Capital. By now, we have received $150 million from the investment.
The remaining $165 million is in the form of warrants. The investors still retain the right to exercise the warrants with a total amount of up to $165 million. On top of that, yesterday, we closed an additional $100 million follow-on investment from NIO Capital. In addition, we also recently completed the issuance of ordinary shares to 58.com in exchange for the full release of the company's $63 million obligations under the convertible notes issued to 58.com. We believe closing of these transactions allow us to substantially streamline our financial resources and devote more focus to execution of our long-term growth strategy. We plan to accelerate the pace of our expansion, strengthen our reconditioning capabilities, and further digitize our supply chain.
We are confident that our investment in these areas will enable us to provide customers with more vehicle selections and a better one-stop, hassle-free shopping experience. The detailed financial statements were published in our earnings release online, so I will not repeat the numbers here at this time. But I do want to emphasize one thing, that in the fourth quarter, similar to the past quarters, there was a fair value impact related to our financing transactions. The share price was $1.02 per ADS on March 31st, 2022, and on January 3rd, 2022, the share price was $1.57 per ADS. This resulted in a non-cash gain of RMB 476.8 million from fair value change of the warrant liabilities and forward liabilities on our balance sheet.
I would like to emphasize again that this fair value impact was a non-cash gain and not a result of our operations. In regard to the first quarter guidance in fiscal year 2023, we currently expect our total revenues to be in a range of RMB 600 million-RMB 620 million for the three months ending June 30th, 2022. Please note that this forecast reflects our current preliminary views on the market and operational conditions, which are subject to changes. This concludes our prepared remarks. Thanks, everyone. Operator, we are ready to receive the questions.
We will now begin the question and answer session. To ask a question, press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing keys. To withdraw your question, please press star then two. When asking a question, please state your question in Chinese first, then repeat them in English for the convenience of everyone on the call. At this time, we will pause momentarily to assemble our roster. Our first question will come from Karl Birkenfeld with American Trust Investment Services. You may now go ahead.
Good evening, gentlemen. Congratulations on your outstanding financial performance in light of the circumstances with COVID. I'm a managing director at American Trust, and I have a coverage in China. I have two questions. The first is, through our news media reports in the United States, we know that China continues to keep COVID zero policy that restricts travel and lockdown the potential risk areas. What's the economic outlook and consumer sentiment? Will this affect Uxin business going forward?
All right. Thank you, Karl. [audio distortion]
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The implementation of COVID control measures will still have an impact. Citywide lockdowns in particular will limit people's activities. We will certainly comply with all the government's COVID prevention policies.
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In terms of our financial results, the lockdown in Xi'an disrupted operation of our Xi'an IRC, which in turn affected our financial performance. The closure of our Xi'an IRC during the lockdown disrupted our overall sales, slowed our inventory turnover, and compressed our gross margin in the fourth quarter of this year.
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However, this impact is temporary. Since June, our business has fully recovered after China started to ease COVID restrictions and lifted Shanghai's lockdown. That's the answer to this question. Thank you.
Great. Thank you very much. The second question is, can you break down your vehicle acquisition by source? And what are the differences between these channels in terms of cost, average prices, and turnover?
Okay. [audio distortion]
Okay. [audio distortion]
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Our acquisition sources mainly include individual car owners, auction companies, and dealerships of new cars. These dealerships partner with us when their customers trade in their vehicles.
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Regarding the cost, our acquisition costs only consist of the vehicle's purchase price, and there are no other costs in the acquisition process. Also, there's no material difference in the average selling price and turnover between these acquisition sources.
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However, purchasing directly from individual car owners simplifies the acquisition process, so generating a higher gross margin. As such, we highly value individual car owners as an acquisition source, which contributed to over 30% of our total acquisitions compared to 15% the middle of the last year. We expect this percentage to continue climbing going forward. That's the answer to the question. Thank you.
Thank you.
Thank you very much.
Our next question will come from Faye Dai with Tianfeng Securities. You may now go ahead.
Faye 晚上好，我是天风证券的分析师 Faye。请问，2022 年来，公司对用户在购车时使用的线上平台做哪些优化？从用户购车到车辆送达，目前公司的布局是怎样的？与 2021 年相比，公司有哪些技术上的升级和优化呢？以及目前公司线上购车平台与行业里其他竞争对手相比有何优势？
Repeat my question in English. In 2022, what optimizations has the company made on the user side online platform? What is the company's current arrangement from purchase to delivery of the car? What technique, upgrading and optimizations and has been made this year compared to 2021? About the online car buying platform, what kind of competitive advantages or barriers does the company have? Thank you.
好的，谢谢Faye。那个我从几方面来答吧，先说这个在线购买的这个升级啊，其实主要是两大项啊，就是首先呢，这个今年我们升级了全线的系统，那么现在已经完全支持客户自助在线购买和在线下单了，就这个流程完全是无需我们销售人员进一步介入的。那么这样的话，客户可以更自主且更快更直接地来选择这个车辆并完成交易。
We implemented several upgrades to the online purchase of our vehicles. One of these upgrades is the complete self-service online order and purchase process for customers. The process does not require any salesman intervention and allows the customer to make a more independent and the right decision. They can then complete the transaction smoothly.
那么第二项的话呢，是针对车辆在线的披露做了这个重要的升级。那么现在可以看到每一台车辆都有了自己的具体的车况评级等级，那么这个评级等级是按照国家标准来执行的，以及它的这个打分。那么这些高标准化的车辆展示方式，让顾客更容易在线对一台车辆做出全面的评估，并做出交易决策。
Another example is the upgrade to the online display of our vehicle's detailed information. Now, customers can view each car with its specific condition and rating as well as the vehicle condition scores that we implemented under the national standard. The display of these indicators enable customers to make a more comprehensive assessment of the vehicles online to form a purchase decision.
好，那么第二个的话呢，是关于车辆配送的布局啊，那这里面主要是物流和交付。那么我们目前在全国二十个城市啊，就除了西安和合肥以外，二十个城市是在我们的区域交付网络的，那么这个在未来呢，城市也会逐步地拓宽和进一步地扩大。
In terms of the logistics and network, our delivery network now covers 20 cities. We also plan to gradually expand our network in the future.
第三个是优势。那么首先呢，我们的车辆品质更高啊，因为所有的车辆我们自持，然后呢这个都是符合优信高标准的准备翻新。那么现在呢，我们是全行业最低的退车率啊。那第二呢，这个多年打造健全的物流和配送及全国的手续体系，让我们的交付效率更高。通常我们的顾客从下单到接到车辆大概在七十二小时左右。那么第三，因为所有的车辆都是自营车辆啊，那所以对于客户的购买确定性会更高。
First, our vehicles have higher quality as we have the highest standard for the reconditioning, so we can have the lowest return rate in the industry. Secondly, after years of effort, we have built a robust system for vehicle delivery and local ownership registration. Our delivery efficiency is very high. Usually, our customers can receive their vehicles around 72 hours after they place the order. Thirdly, all of our vehicles are self-owned, so we have better control of the vehicles and the transaction. That answers your question, thank you.
好，谢谢。
Our next question will come from Ying Ying from China Securities . You may now go ahead.
高福领导好，我是中信建投证券分析师依依，我有几个问题想请教一下领导。问题是，现在可以看到电动汽车的销量已经赶上了汽油车，您能不能分享一下关于您在电动汽车这一块的一个扩张计划？然后我们售卖二手电动汽车的利润是否会跟燃油车有所不同？那现阶段我们已经有多少电动车这一块的存量？感谢领导。麻烦唐总帮忙翻译，谢谢。
Thank you, Ying Ying from China Securities . Given the electric vehicle sales have caught up with gasoline cars, can you share more about your expansion plans in this market? Are the margins different from gasoline cars? How many new energy vehicles do your customers have in your inventory.
好的，电动车现在是我们重点投入和准备的产品。由于电动车的工况结构和燃油车有很大区别，所以在过去的数个月的时间里面，我们对电动车的检测、电动车的准备维修上都有单独的团队体系在全力输出全新的标准。
NEV is the critical segment that we are focusing on and investing in. As you know, NEV and gasoline vehicles are built very differently. This is why in the past few months, we have established separate systems and teams for the testing and maintaining of used New Energy Vehicles.
那么现在总体来看，中国二手电动车的发展其实还是需要一段时间的，主要原因在于新能源二手车行业的发展，这个其实是和新能源二手车的保有量更相关。那么因为它新车卖了以后还需要一段时间才会变成二手车。那截止到2021年底，这个可以看一个数字，就中国乘用车的保有量是三亿，那么新能源汽车的保有量是八百万，那么新能源汽车在保有量市场里面的占比还不到3%。
From the market perspective, China's used EV market is in constant lag . The growth of the used EV market is directly tied to the overall ownership. At the end of 2021, China's passenger car ownership reached 300 million, while NEV ownership was around 8 million, or less than 3% of the total.
那从我们目前的库存的结构来看，新能源车占我们库存总比例大概是5%到6%。那么从业务上来看，我们经营的电动车呢，其实是很受顾客喜爱的，也已经在库存结构中看到新能源车呢有更好的销售趋势。此外，我们覆盖的品牌呢，这个当前主要是特斯拉、蔚来、小鹏、比亚迪和理想这类消费者更喜欢的主流新能源车品牌。
As of now, NEV accounting for 5%-6% of our inventory. From a business perspective, our NEV offerings are quite popular among customers. NEV in our inventory also have a stronger sales performance. Additionally, we mainly cover mainstream NEV brands. They are welcomed by consumers such as Tesla, NIO, XPeng, BYD and Li Auto.
横向地对比整个行业，那现在优信在新能源二手车的销售能力和售卖能力上都是行业内领先的。
Compared with the peers in the industry, we are leading the industry in both sales capacity and sales performance of New Energy used cars.
好的，谢谢。
Thank you for your question.
好，谢谢投资人的问题。
Thank you. We have reached the end of the question and answer session. I would like to hand the conference back over to Joyce for closing remarks.
Thank you for everyone joining our call today. We look forward to seeing you next time. Bye bye.
Okay, bye bye. Thank you everyone.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.