Ladies and gentlemen, thank you for standing by, and welcome to Uxin's earnings conference call for the quarter ended June 30 of 2020. At this time, all participants are in listen only mode, and after management's prepared remarks, there'll 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 30th, 2020. On the call today are DK, our founder and CEO, and Zhen Zeng , our CFO. DK 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, DK. 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 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, settling 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 multi-business schemes to a core focus, and shifted our growth strategy from being financing-driven to one that is used car quality and service-oriented.
Under the previous financing-driven approach, where we experienced rapid transaction volume growth, we were also weighted down by a significant underlying credit risk and contingencies on cash flow because we had to take all the guarantee liabilities and buy back the default loan when these delinquency assets meet certain criteria. Now with this drag behind us, we enter 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 premium purchasing services. We believe that continuously enhancing 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. In order to create the best value and experience across the entire value chain for our customers, we upgrade our used car transaction process and migrate every sales step online. In transforming our business, we have upgraded the key points throughout our service process.
We build a group of inventory selectors to curate a value for money used car from across the country, ensure that the highest standards of car quality are met by careful inspection, simplify our pricing structure to facilitate the customer's purchasing decisions, offer professional consultings and purchasing services in a timely fashion from our online sales consultants, work with more financing partners to offer diversified used car finance product and improve overall loan approval rate for our customer, provide a well-rounded warranty program and after-sale services, and make the entire purchasing process more convenient and efficient for our customers. All these efforts have translated into better customer satisfaction and greater trust in our Uxin brand, evidenced by our increased Net Promoter score among our customers.
To further enhance the customer experience, we will reinforce our role as China's leading online used car dealer and begin to build our own inventory of used cars this month. This will help us better control our supply chain for used car and deliver higher transaction certainty to our customers. As we move up the supply chain and assess used car at more favorable acquisition price, we will have a greater flexibility in offering more competitive pricing to our customers. Further building Uxin as a trusted and go-to online destination for buying a used car. In contrast to the local offline dealers' traditional way of acquiring inventory based only on individual experience and user case, our inventory advantage comes from our strong data and analytics capability.
We will take a more scientific and systematic approach to procure used cars by analyzing the extensive user behavior, used car, and the transactional data aggregated on our platform over the years. We will selectively build our inventory based on our proprietary assessment of customer preference. A car's value for money performance, as well as real-time market dynamics and trends. In addition, we will offer refurbishment as a new service by reconditioning our car to a like-new condition before handing it over to our customers. This will be another key step in ensuring the best overall purchasing experience, as the reconditioning can further enhance a car's value for money performance. We believe that our data-driven and quality-focused inventory strategy will further enhance customer satisfaction, while enabling our team to achieve a faster inventory turnover.
This will be another significant milestone for us in solidifying our position as China's leading nationwide online dealer, and offering high quality, value for money used car and premium services. With that, I'd like to turn the call over to our CFO to walk you through the financial results. Zhen, please.
Okay, thanks, DK. Hello, everyone. Thanks for joining us today. As DK mentioned, in completing the online transformation of our transaction process, we have also restructured our costs and expenses to adapt to the new business and service model. We now have a streamlined inventory sourcing and a car inspection team, online sales consultation team, and a back office support team. In addition, higher customer satisfaction and more word-of-mouth referrals also translate into more organic traffic and a 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 cut that was implemented in China since May this year, used car dealers now only need to pay 0.5% off of used car sales. This means we now have a more adaptive, stable fiscal environment in which to operate as an actual dealer.
We will work with financial institutions in the form of inventory financing to selectively building our own inventory, that it will allow us to adequately manage our cash flow. Assessing 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 market 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. 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. Please note that some numbers I refer to are non-GAAP numbers.
You can find the reconciliation of these numbers at the bottom of our earnings release. In the three months end June 30th, 2020, total revenue was RMB 62 million, compared with the RMB 389 million in the same period last year. The decrease was primarily due to the decrease in the C2C transaction volume and GMV as a result of economic downturn caused by the COVID-19 pandemic, as well as the lead time that we need to fully ramp up this upgraded transaction process. Our total C2C revenue was RMB 52 million, compared with the RMB 341 million in the same period last year. Online used car transaction volume is 3,887 units for the three months end June 30th, 2020, and its corresponding GMV was RMB 426 million.
Looking at the two revenue stream of other C2C business, commission revenue was RMB 29 million, compared with the RMB 179 million in the same period last year, primarily due to the decreases in the transaction volume and GMV. Our commission rate expanded slightly to 6.7% from 6.2% in the same period last year, as a result of our continuous effort to offer a nationwide selection of best value for money used cars, as well as the quality transaction services to the customer. Value-Added Service revenue was RMB 23 million, compared with the RMB 162 million in the same period last year, primarily due to the decreases in the transaction volume and VAS decreased slightly to 5.4% from 5.7% in the same period last year as a result of pricing adjustment during the COVID-19 period.
Looking at other business, other revenue was RMB 11 million for the three months ending June 30th, 2020, compared with RMB 48 million in the same period last year. The decrease was mainly due to the divestiture of the company's salvage car-related business in the January 2020. Cost of other revenues decreased by 53% year-over-year to RMB 80 million. The decrease was primarily due to the decrease in salaries and benefits from employees engaged in car inspection, quality control, customer service, and after-sales services, as well as the decrease in the fulfillment costs due to a decrease in the transaction volume. Gross margin was - 28.4% for the three months ending June 30th, 2020, compared with the gross margin of 55.9% in the same period last year. Total operating expenses was RMB 151 million. Non-GAAP operating expenses, which excluded the impact of share-based compensation, was RMB 156 million.
Sales and marketing expenses decreased by 61% year-over-year to RMB 116 million. The decrease was mainly due to a decrease in the salaries and benefits expenses as a result of the adoption of the flexible workload-based staffing program and some termination of the employee contracts resulting from our business model upgrade, as well as the decrease in the traffic acquisition cost. Sales and marketing expenses, excluding the impact of our share-based compensation, were RMB 111 million. G&A expenses decreased by 29% to RMB 87 million.
The decrease was mainly due to a decrease in the salaries and benefits as a result of adoption of a flexible workload-based staffing program and some termination of employee contracts resulting from our business model upgrade, as well as the decrease in the share-based compensation expenses, and partially offset by the severance cost as a result of the some termination of the employee contracts and a goodwill impairment of RMB 9.5 million recorded in the reported quarter. G&A expenses excluding the impact of share-based compensation was RMB 98 million. R&D expenses decreased by 29% to RMB 23 million. The decrease was primarily due to a decrease in the salary and benefits expenses as a result of adoption of the flexible workload-based staffing program and some termination of employee contracts resulting from our business model upgrade. R&D expenses excluding the impact of our share-based compensation was RMB 24 million.
Gains from the guarantee liability was nil for the three months ending June 30th, 2020. We incurred the guarantee liability associated with the remaining guarantee obligations from its historical facilitated loans and that were now transferred to Golden Pacer. We adopted Accounting Standards Update 2016-13, Financial Instruments, Credit Losses, measurement of the credit loss on financial instrument on January 1st, 2020. Under modified retrospective method before the adoption of ASC 326, gain or loss related to guarantee liability accounted for under the greater of amount determined on ASC 450, and the amount determined under ASC 450 was reported as the gain or loss from guarantee liability. After the adoption of ASC 326, with respect to the credit losses from a contingent guarantee liability shall be accounted for in addition to and separately from the stand-ready guarantee liabilities accounted for under ASC 450.
The provision for the contingent guarantee liability is currently recorded within provision for credit losses. The release from the stand-ready guarantee liability accounted for under ASC 450 is currently recorded within other operating income. Provision of credit losses net was RMB 74 million for the three months ending June 30th, 2020. The reversal of the provision for credit losses were primarily due to the release of guarantee liability of RMB 86 million as a result of a supplemental agreement reached between us and one of our major financing partner in April 2020 with regards to our historical facilitated loans. Pursuant to this supplemental agreement, this financing partner agreed to set a cap on the amount of cash we would need to fulfill its guarantee liability with this financing partner from 2020 to 2022.
Loss from continuing operations was RMB 128 million, compared with RMB 223 million in the same period last year. Non-GAAP adjusted the loss from continuing operations, which excludes the impact of a share-based compensation, was RMB 133 million, compared with RMB 196 million in the same period last year. Net loss from continuing operation were RMB 152 million, compared with RMB 241 million in the same period last year. Non-GAAP adjusted the net loss from continuing operations, which excludes the impact of a share-based compensation, were RMB 157 million in the quarter, compared with RMB 214 million in the same period last year. Turning to our capitalization. As of June 30th, 2020, we have a cash and cash equivalent of RMB 241 million. That's some of our results for the three months ending June 30, 2020. Moving on to our guidance.
Starting this month, September 2020, we will build our own used car inventory. Have started to select the value for money used cars in the market, procure these cars and arrange for the reconditioning and refurbishment to operate them to a like-new condition before selling them to our customers. We are currently assessing relevant revenue recognition in accordance with ASC 606 for selling our own inventory for this three months in September 30th, 2020. Taking into account the continuous impact of the COVID-19 pandemic, upgrades and progress of our business model and the completed business divestiture , excluding the revenue to be recognized under selling our own inventory starting from September 2020. We expect our total revenue from continuing operations to be in the range of RMB 33 million-RMB 35 million, which includes the commission revenue, value-added service revenue, and other revenue.
If taking into consideration part of the revenue to be recognized under selling our own inventory, for which a portion of the revenue generated in September 2020 may be recognized on a gross base, we expect our total revenue from continuing operation for the three months ending September 30, 2020, to raise to a range of RMB 65 million- RMB 70 million. This forecast reflects our current and preliminary view on the market operational conditions and is based upon the current situation and uncertainties associated with the COVID-19 pandemic, which are subject to change. This forecast is also based on our preliminary accounting assessment of such inventory owning business model, which may be subject to refinement and resolution. That concludes our prepared remarks.
Thank you, Mr. Zhen. Operator, we'd like to open the call for questions now.
Sure. Thank you. Ladies and gentlemen, we'll now begin the question and answer session. For your questions, please press star and the number one on your telephones and wait for your name to be announced. To cancel the request, it is the pound or hash key. Once again, to ask a question, please press star and the number one on your telephone keypad. Once again, if you have questions, please press star and the number one and wait for your name to be announced. Once again, for your questions, please press star and the number one and wait for your name to be announced. To cancel the request, it is the pound or hash key. We have our first question from the line of Eddy Wang of Morgan Stanley. Please go ahead.
Hi, DK, Michael, and Nancy. Thank you for taking my question. [Non-English content] Let me translate myself. My question is about the long-term outlook of the used car industry in China, especially for the next few years. Under that background, I think, what's the advantage of the inventory-taking business model we will adopt? Just want to hear your thoughts on that. Thank you.
[Non-English content ]
In the past one or two years, upgrading product quality and services is a keynote in every consumer-facing industry and sector. High quality products and satisfactory services are the foundation of gaining 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 a company's long-term sustainable growth. This is also very true in the used car industry. After over a decade of development, where there lacked industry standards and honesty, 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.
[Non-English content ]
In the past one or two years, more and more consumers are turning away from new cars and choose to buy a used car. This is not simply because they cannot afford buying a new car, but more about they now have a more rational 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. In turn, with this benefit, more and more consumers will also choose to buy used cars as well. Affected by the soft macroeconomy, overall used car industry will see a very slow growth this year. Looking at next one year or two, we are expecting it will gradually recover to a double-digit growth.
[Non-English content ]
We decided to build our own inventory of used cars now. It's actually encouraged and driven by our quality focus and customer referral strategy. We believe offering high quality value for money used cars and premium purchasing services will win us higher customer satisfaction and reputation as well. More customer trust and word-of-mouth referrals will not only increase our car sales, but also improve our ability to drive long-term market expansion as a result of the quality premium our customers are willing to pay us.
[Non-English content ]
We started to build our inventory now, because we think we have three core advantages. The first one is about the digitalization and intelligent data analytics. Both our historical transactions and current transactions actually exist all in digital form. So do our customer behaviors and their preferences aggregated on our platform. So this enables us to well manage the supply and demand as well as the selling prices with totally different decision-making capabilities from the traditional used car dealers. Our current digital capabilities allow us accurately predict the monthly sales of certain car makes and model, even to predict the turnover of a specific model. This perfectly guides us to selecting cars and build our own inventory.
[Non-English content ]
The second is about our capability to realize purely online used cars production and services. Currently, in China's used car market, we are actually the only one who is able to sell cars completely from online. Our customers can easily make the purchase decision after reading our used cars digital profile online. In addition, our customers are able to make these decisions without the need to be assisted by offline sales staff throughout the entire process. Our fulfillment capability covers over 300 cities and counties combined across China. Our customers can receive their car that meet or even beyond their expectations within days after they make the purchase online. Our pure online way of selling used cars significantly strengthen our ability of matching cars with consumers on a nationwide level, which also ensures a higher chance of faster turnover.
[Non-English content ]
The third one is about our advantages in the cost structure. Our cost structure is actually fundamentally different from that of traditional offline dealers. Unlike them, we don't need to have the expensive offline physical showrooms, and we don't need a large offline sales team either. Such advantages actually enable us to grow into a national online used car dealer with strong operational efficiency and the potential to grow at scale.
[Non-English content ]
Look at the macro environment. Now is actually a good timing for us to take this approach, given the current used car taxation creates a more favorable environment for us to build the inventory. Since May of this year, the used car tax cut in China allows dealer only need to pay 0.5% of used car sales as a tax compared with 2% previously. With this tax rate, our overall tax expenses won't increase much as compared with before. In addition, for the cars that we procure upfront, the car titles are actually with us. We are able to work with financial institutions on inventory financing. When everything ramps up, the macro environment is actually also support our decision.
[Non-English content ], Eddy, [Non-English content ]
Thank you, Eddy.
[Non-English content ]
Thank you . Now I'd 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 look forward to speaking with you again soon in the future. Thank you.