Ladies and gentlemen, thank you for standing by, and welcome to Uxin's earnings conference call for the quarter ended September 30, 2020. At this time, all participants are in a 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 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 September 30th, 2020. On the call today are D K, our founder and CEO, and Zhen Zeng, our CFO. D K will review business operations and company highlights, followed by Zhen, 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 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 differ materially from those in the forward-looking statement. 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. The September quarter marked our transition to an inventory-owned model. Now, we are pleased to report that we have successfully made the transition, which gives us better control over our order flow and the supply chain management with our online product and the service offering being continuously optimized. We are also very pleased with the progress we made in better serving our customer as a nationwide online used car dealer. Not only have we raised the bar in delivering enhanced customer experience, but we also validated our efforts by receiving improved customer satisfaction feedback during the quarter.
The completion of our shift to an inventory-owned model, coupled with our unique offering of an online used car buying experience, further strengthens our ability to maximize customer value through our dedicated approach, offering quarterly value-for-money used cars alongside best-in-class purchasing services. In fine-tuning our products and services, we focused on three initiatives during the September quarter in order to deliver better customer experience. First, we addressed used car quality by adopting stricter standards in selecting and inspecting cars, and improved the car conditions by introducing standard and well-rounded reconditioning services. In terms of car quality, by leveraging the massive used car data gathered from our historical car inspection and through our experience in progressing car insurance claims over the past three years, we have developed an extensive and deep understanding of car performance from certain makes and models in relation to manufacturing dates or mileage.
This data-driven know-how allow us to effectively exclude some type of cars with manufacturing defects or relatively high failure rates. In addition, we also raised the standards for inspecting cars to further ensure that the car's components are all in great shape. These standards enhance the quality of our overall used car inventory and allow us to gain great customer satisfaction and trust in Uxin. In terms of car condition, an additional step of refurbishment enhance the car's like-new condition, allow us to consistently offer customer a more attractive and greater value alternative to buying a new car. Second, with the use of a highly effective online communication tools and methods, we invested, conducted, and continued to refine the process of serving our customer online throughout the life cycle of our purchasing and driving of cars. Let me explain.
Once a customer place a purchase order with us, there will be dedicated service team assigned to this customer. The service team consists of an online sales consultant who is responsible for handling the purchase order and the online service consulting. Sorry, for handling all paperwork, all documents for title transfer and license plate registration, an auto financing specialist who is responsible for processing loan application related documentation if the customer finances car, and an after-sales manager who is responsible for responding to any after-sales inquiries, such as car maintenance or insurance claims after the customer drives away his car. As we standardize the way of delivering services at each key sales and after-sales point, we significantly increase the responsiveness of our service personnel and improve customer satisfaction as a result of our service delivery. Third, we shortened the waiting period between initial order and final delivery of the cars.
We further improved the entire fulfillment process, include optimization of logistic plan and car delivery, as well as execution of more timely title transfer. We are also introduce new policies that customers are entitled for certain terms if customer receive the car later than our promised delivery time. As a result of this enhancement, we saw our Net Promoter Score, our NPS, significantly increase to 30 for the reported quarter from only 10 from the June quarter. It worth mentioning as well that our NPS exceeded 45 in the month of September, indicating the increasing traction of our products and service, as well as growing customer loyalty. As we benefit from improved customer satisfaction and greater willingness to recommend Uxin to others, we are confident that we can secure around 1,400 deposit required purchase order this month.
Our dedication to offering quality value for money used car, and best-in-class purchasing services, which are also our key growth drivers, contributed markedly to satisfying the increased demand from a new group of customers who are more willing to pay a premium for a high-quality car and services. Catalyzed by these two drivers, the expansion of our customer base and the increase in transaction volume does present us with different growth paths. We believe this new customer group has the potential to consistently contribute to our long-term growth, and we are already starting to receive more purchase orders from customer referrals. Once we hit critical mass as our new customer base expands, we believe that customer trust and word-of-mouth referrals will translate into solid and sustainable long-term volume growth, further solidifying our brand and market position.
We are confident that this will provide a firm foundation for our further business development and for generating more long-term value for shareholders. With that, I'd like to turn the call over our CFO to walk you through the financial results. Zhen, please go ahead.
Okay. Thanks, D K. Hello, everyone. Thanks for joining us today. As we made the transition to an inventory-owning model, we continue to enhance our operational efficiency across the board. Our focus on handpicking used car now enable us to allocate our inspection resources to only specific qualified cars and helps to optimize inspection costs. In addition, we are also able to reduce sales and relevant administrative expenses as we streamline our sales process by migrating every sales step online. With a fundamentally optimized cost and expenses structure in place, we believe that we will achieve better operating leverage in the long term as we achieve a scale. Strength and trust in the Uxin brand and benefit from positive word-of-mouth referrals among customers. Let me walk you through our financial details for the quarter ending in September. Please note that the results I will discuss related to the continuing operations only.
All numbers are in RMB, all as otherwise stated. Also, please note that some numbers I refer to are non-GAAP number. You can find a reconciliation of these numbers at the bottom of our earnings release. In the three months in September 30th, 2020, total revenues were RMB 76 million, compared with RMB 397 million in the same period last year. The decrease was primarily due to the decreases in the B2C transaction volume and GMV as a result of our business model transformation. We operate our entire used car transaction process and migrate every sales step online. Beginning June 2020, we are now building our customer base by using online sales staff as opposed to an offline sales team. Our total B2C revenue was RMB 61 million, compared with RMB 334 million in the same period last year.
Our online used car transaction volume was 2,653 units, with a corresponding to-C GMV being RMB 293 million. This figure includes 308 units sold from our old inventory, with corresponding to-C GMV being RMB 36 million. In comparison, to-C used car transaction volume was 23,566 million unit, with the corresponding GMV being RMB 2,828 million the same period last year. Let's now look at the three revenue streams of our to-C business. Commission revenue was RMB 13 million, compared with RMB 176 million in the same period of last year, primarily due to the decrease in the transaction volume and GMV. Our commission rate decreased to 5.2% from the three months in September 30th, 2020, from 6.2% in the same period last year.
The decrease in the commission rate was mainly because we lowered the transaction fees across the board since August of 2020, so as to offer more competitive prices to the customers. Value-added service revenue was RMB 12 million, compared with RMB 158 million in the same period last year, primarily due to the decreases in transaction volume and the GMV. VAS take rate decreased to 4.7% from 5.6% in the same period last year as a result of our reduced service fee since August of 2020, in order to offer more competitive price to the customers. Vehicle sales revenue was RMB 36 million, compared with nil in the same period last year. Vehicle sales revenue is recognized on a gross base when we sell our own inventory. We shifted to an inventory-only model since September 2020, as we disclosed in the last quarter's earnings release. Looking at the other business.
Other revenue was RMB 15 million for the three months ended September 30, 2020, compared with RMB 62 million in the same period last year. The decrease was mainly due to the divestiture of our salvage car-related business in January 2020. Cost of our revenues decreased by 45% year-over-year to RMB 93 million. The decrease was primarily due to a decrease in salaries and benefits for the employees engaged in the car inspection, quality control, customer service, and after-sales services, as well as a decrease in the fulfillment cost due to the lower transaction volume. This was partially offset, however, by an increase in the vehicle acquisition cost relating to our beginning to building the inventory since September 2020. Gross margin was - 22.4% for the three months ended September 30, 2020, compared with a gross margin of 56.9% in the same period last year. Total operating expenses was RMB 319 million.
Non-GAAP operating expenses, which exclude the impact of share-based compensation, were RMB 334 million. Sales and marketing expenses decreased by 74% year-over-year to RMB 76 million. The decrease was mainly due to the decrease in the salaries and benefits expenses as a result of the headcount reduction and the lower marketing expenses. Sales and marketing expenses excluding the impact of share-based compensation were RMB 76 million. G&A expenses decreased by 18% to RMB 56 million. The decrease was mainly due to a reserve in the share-based compensation expenses. G&A expenses excluding the impact of our share-based compensation were RMB 71 million. R&D expenses decreased by 45% to RMB 19 million. The decrease was primarily due to a decrease in the salary and benefits expenses as a result of the headcount reduction. Our R&D expenses excluding the impact of the share-based compensation were RMB 20 million.
Loss from guarantee liabilities was nil for the three months in September 30th, 2020. We incurred guarantee liabilities associated with the remaining guarantee obligation from our historical facilities loan and were now transferred to Golden Pacer. We adopt Accounting Standards Update 2016-13, Financial Instruments-Credit Loss, measurements of the credit loss of financial instruments on January 1st, 2020, under a modified retrospective method. Before the adoption of ASC 326, the gain or loss accounted for that related to guarantee liabilities was greater of either of the amounts determined based on ASC 460 or the amount determined under ASC 450, and was recorded as a gain or loss from the guarantee liabilities. After the adoption of ASC 326, expected credit loss of the contingent guarantee liabilities shall be accounted for in addition to and separately from the stand-ready guarantee liabilities accounted for under ASC 460.
The provision for the contingent guarantee liabilities is currently recorded within provision for credit losses. The gain released from the standard ready guarantee liability accounted for under ASC 460 is currently recorded within the other operating income. Provision for credit losses net was RMB 168 million for the three months end September 30, 2020. In order to settle our remaining guarantee liabilities, on April 23rd, 2020, we enter into a supplemental agreement with one of our major financing partner with regards to our historical facilities loan. Pursuant to the supplemental agreement we signed in April, such financing partner agreed to set a cap on amount of cash we will use to fulfill our guarantee obligations from 2020 - 2022.
As a result, a release of contingent guarantee liabilities of RMB 86 million was recognized for the quarter end, June 30th, 2020, representing the time value of the potential cash outflow. Subsequently, on July 23rd, 2020, we enter into another supplemental agreement with the same financing partner to entirely settle our remaining guarantee liabilities associated with the historical facilitated loans for such financing partner. This supplemental agreement amended and restates the agreement we signed in April. Pursuant to the agreement we signed in July, we are entitled to settle all our remaining guarantee liabilities under the condition that we pay the settlement amount in installments from 2020 - 2025, based on an agreed schedule. As a result, the aforementioned previously recorded time value of the contingent guarantee liabilities in the amount of RMB 84 million was reserved.
Based on the time value determined as to August the 8th, 2020, which was the closing day of the supplemental agreement we signed in July. Loss from continuing operation was RMB 163 million, compared with RMB 188 million in the same period last year. Non-GAAP adjusted loss from continuing operations, which excludes the impact of share-based compensation, was RMB 178 million, compared with the RMB 190 million in the same period last year. Net loss from continuing operations was RMB 259 million, compared with RMB 202 million in the same period last year. Non-GAAP adjusted net loss from continuing operations, which excluded the impact of share-based compensation, was RMB 275 million in the quarter, compared with RMB 204 million in the same period last year. Turning to our cash position. As of September 30, 2020, we have cash and cash equivalents of RMB 219 million.
In addition, as we complete a new round financing of RMB 25 million in October 2020, we received the cash consideration in the same amount, which supplemented our cash position. That sum up our results for three months ending September 30, 2020. Now, moving on to our guidance. With the adoption of our inventory owning model, we expect our average selling price to remaining at similar level as before, We expect our total revenue to be in a range of RMB 275 million-RMB 290 million. The gross margin to be positive and in a single-digit percentage range for the December quarter 2020. As we continue to improve overall operating efficiency, we also expect our adjusted loss from operations to narrow slightly from the September quarter. This forecast reflects our current and primarily view on the market and operational conditions, which are subject to change. That concludes our prepared remarks.
Thank you, Mr. Zhen. Operator, we'd like to open the call for questions now.
Certainly. Ladies and gentlemen, we will now begin the question and answer session. To ask a question, you may press star one on the telephone and wait for a name to be announced. To cancel a request, you may press the pound or hash key. Once again to ask a question, please press star one on telephone. We have our first question coming from the line of Eddy Wang from Morgan Stanley. Please go ahead.
Hi, D K, Zhen, Nancy. Thank you for taking my question.
[Non-English content]Thank you for taking my question.
I have two questions. The first question is about the outlook of the used car industry in next year. The second question is that you mentioned you have been doing a lot of efforts to improve overall NPS score, and the user experience. Going forward, what kind of the efforts will continue to do to further improve the user experience in terms of the NPS? Thank you.
Okay. Thank you, Eddy. All right. I will take those two questions. First, about industry. Just recently, China Automobile Dealers Association has promoted and implemented several used car policies, finally this year. In this industry environment, I think it will be a new start for the used car industry next year that the whole sector should move forward in full compliance with relevant used car policies further implemented and upgraded. This will enhance the entire industry to develop from a used car brokerage model toward to a more organized business model. We are participating as more regulated. Currently, used car VAT tax has already been cut from 2% of sales to 0.5%. At the same time, there are also some enhancements in policies relating to vehicle temporary registration, the registration, and the title transfer. We can say Beijing introduced a new license plate allocation policies earlier this month.
As a pilot city, I believe Beijing will launch and implement specific plans next year as a response to this policy's method above. There will be a favorable government policies in place, and specific implementation carried out by pilot city as a reference for other cities and regions to learn from. The developments in regulatory compliance and the implementation of policies will bring positive change to the used car industry, including higher engagement of industry players and customers' high acceptance of buying used car. This change will gradually to taking place. From what we have seen currently, all these three policies will benefit Uxin as we now operate as an online used car dealer. First, as a business entity, our adoption of inventory own model will be fully supported by the policies.
In addition, the used car tax cut can also help to lower our tax expenses when we are operating under the inventory own model. For promoting of vehicle temporary registration and digitalization of the title transfer process, it will significantly simplify the fulfillment process as customers purchase used car online from us, which will lead a much improved delivery efficiency. At the same time, relevant fulfillment cost can also be optimized correspondingly. I think follow all these policies, I think next year, the used car, the total transaction volume could be increased. From our forecast, it's around the two digits, around 10%-15%. That's the answer for the first question. The second question about the NPS improvement. I think this year we really found some very efficiency way to improve the NPS.
I think we are mainly focused on the two aspects, quality and the condition of used car, and best-in-class purchasing services. These two things is the most sensitive to improve the NPS. Next year we are keeping to enhance all our ability and the source invest into these two areas. We believe that we can keep to improve the customer satisfaction and also improve the NPS. Yeah. I want to say some more. For example, we focused on strengthening our ability to reconditioning the car. Next year we will build our own reconditioning center to enhance our refurbish ability from Uxin ourselves, and to bring the like-new condition the used car to our customers. Yeah. That's the second question, the answers. Thank you, Eddy.
Thank you. Thank you, DK. Thank you. Very clear. Thank you very much.
Thank you.
Thank you. Thank you. I would now like to turn the call over to Nancy Song for any closing remarks. Thank you.
Thank you again for joining our call today and for your continuous support in Uxin. We look forward to speaking to you soon in the future. Thank you.
Thank you. That concludes our conference for today.
Thank you.
Thank you for your participation. You may all disconnect your lines now. Thank you.