Ladies and gentlemen, thank you for standing by, and welcome to Uxin's third quarter 2019 earnings conference call. At this time, all participants are in listen-only mode. After management 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 third quarter 2019 earnings conference call. Today, DK, our founder and CEO, and Zhen Zeng, our CFO, will discuss our financial results for the third quarter. Following the prepared remarks, DK and Zhen will be available to answer your questions. Before we start, I would like to remind you that our statements today will contain forward-looking statements that we make under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on the management's current knowledge and assumptions about future events that involve risks and uncertainties, which could cause actual results to differ materially from our expectations. 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 the company's filings with the SEC.
With that, I will now turn the call over to our CEO. DK, please.
Thank you, Nancy. Hello, everyone. Thank you for joining our third quarter 2019 earnings conference call. We are pleased to report a solid set of results for this quarter. Our total revenue increased by 33% year-over-year to RMB 461 million, exceeding the high end of our previous guidance. In particular, 2C revenue recorded another robust year-over-year growth of 247%. Even more encouragingly, our adjusted net loss narrowed notably by 40% year-over-year and 19% quarter-over-quarter to RMB 268 million, demonstrating the results from our strong commitment to control costs, enhance operating efficiency, and improve margin profile. Looking at our 2C business in further detail, we completed over 23,500 online used car transactions during the quarter, reflecting strong year-over-year growth of 107%.
As some cities and regions have adopted the new emission standards, China 6, starting from July, and don't allow car with lower emission standards to register locally. We did experience a certain impact from this policy change, which resulted in relatively flat quarter-over-quarter transaction volume. Despite the impact, we are very pleased that our unique value proposition and strong monetization ability helped to further increase our 2C take rate to 11.6 from 11.2 in the second quarter and 7% a year ago. This translated into per unit revenue of around RMB 14,000 for the third quarter, up from about RMB 13,000 in the second quarter. Looking ahead, the used car market is typically quite resilient. As more used car inventory meeting the new emission standard becomes available on the market, the sector will gradually digest the impact from policy change.
We are also confident that we will be able to deliver strong sequential and year-over-year growth for online transaction volume in the coming year-end peak season. Underpinned by our key customer value, we believe our monetization ability will also get strong along the way. On the franchising model front, we continued to penetrate into lower tier city by expanding the franchising network to over 1,200 stores. Our franchisee contribute over 35% of total 2C transaction volume for this quarter. Moving on to our 2B business. We recorded a transaction volume of over 30,000 used car from our B2B auction platform. Although the volume declined year-over-year as a result of the continuing shift of our strategic focus toward to our 2C business, we slightly increased our 2B take rate to 4.7% in this quarter from 4.5% in the prior year period.
Well-known as one of the most efficient channels for dealer to source their inventory, our B2B auction platform will continue to serve as part of our important product and the service offering to our dealer customers. Before Zeng provides a deeper overview of our so-called financial details, I'd also like to highlight the key area we have been and will continue to focus on in order to achieve sustainable growth over the long term. First, we are fully concentrated on executing our strategy of focusing on online used car transaction to drive our already leading position as an online used car dealer. We are focused to maximize our key value proposition for customers, which are a nationwide selection of used car, better price, a one-stop online purchasing experience, and high quality professional sales consultant services.
We believe this value differentiates us in the market and will enable us to stay ahead of the competition, which in turn will further enhance our ability to monetize online used car transactions. Second, we are committed to continuing to enhance operating efficiency. We have been, and will continue to streamline our business operations across the board. To highlight a few of our ongoing initiatives in these areas. In terms of inspection, we continue to improve the inspection-to-sales conversion, which is to sell more used car while keeping the number of car inspectors stable or even reduced to some extent. We have been continuously optimizing the inventory mix inspected and listed on our platform by selecting the inventory which meets our customers' preference and has desirable cost preference. For example, we focus more on inspect the car which meets our target price range and better cater to our customers' demographic.
We also prioritize the inspection on those which meet a certain price to performance criteria or freeze inspection on those which we already have quite enough [FTU] available for the moment. This makes our real-time inventory essentially get more exposure and become more marketable, which in turn saves our inspection results and effectively increase productivity. In terms of fulfillment, we are able to continuously enhance logistic planning as our transaction volume is growing on much larger scale than previously. With more used cars sold and delivered through our network, we have not only gained stronger bargaining power to get better terms when negotiating with the car shipping company, but also become better positioned to optimize the road plan to make sure each delivery trucks can be loaded as full as possible for car transportation. This has effectively lower our per unit delivery cost.
In terms of traffic acquisition, we continue to optimize our traffic acquisition channel mix by allocating more resources to this generating high quality and more cost-effective sales leads. With our enhanced sales productivity and expanded sales forces team in both our direct and franchising model, we are confident that we will gradually increase the leads-to-sales conversion going forward as we drive higher the transaction volume without having to invest more in traffic acquisition than our current level. All those efforts in cost control and efficiency measures contributed to the improved gross margin and narrow loss in the third quarter. With respect to the near term, as we continue to execute on these top priorities, we are confident that we will be able to drive top line growth, improve margin, and narrow loss as this year concluded.
With respect to the long term, we are committed to building the best destination for customer to buying used car online in China. We believe the growing traction from our target customers, coupled with our effort to effectively managing our business, will translate into our long-term sustainable growth and profitability in the coming years, which in turn will create long-term value to our shareholders. With that, I would like to turn the call over to our CFO to go over the financial. Zeng, please.
Okay. Thanks, DK. Hello, everyone. Thanks for joining us today. As DK highlighted, we are very pleased to report it a solid third quarter, during which our gross margins further improved and operating and net losses significantly narrowed. In addition to the cost control and efficiency efforts he mentioned, we have also streamlined our headquarter related operations, such as the administrative management and R&D processes by optimizing internal online business management system. Moving forward, prudent cost control and operating efficiency will be an ongoing focus area for us. We are confident that, coupled with our superior monetization ability, will help to further narrow our losses towards the end of this year. At the same time, we are confident that our business is well supported by our current cash position. First, divesting the loan facilitation related business will significantly lower our cash requirements.
Second, we believe our losses will continue to narrow as a result of our ongoing efforts in cost control and enhancing operating efficiency. Third, pursuant to the definitive agreement we enter into with Golden Pacer. The working capital associated with the divest loan facilitation business that we advance to certain financing partners on behalf of Golden Pacer during the third quarter will be returned back to us in due course when the transaction is closed. Fourth, we expect to receive an aggregate cash consideration of US $100 million after the closing of the transaction. All of this will contribute to our cash position and couple it with our continuous effort to enhance our monetization ability and operating efficiency. We believe we can build a more sustainable and profitable business over the long run. Now, let me walk you through our financial details for the third quarter.
Please note that the financial impact of the proposed divestiture has already been reflected in our third quarter results. All I 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 in our earnings release. In the third quarter, total revenues increased by 33% to RMB 461 million from RMB 346 million in the prior year period. The increase was primarily due to the increases in the To C transaction volume, GMV, commission rate, and the value-added take rate. Drilling down to our business pillars. In terms of our To C business, total To C revenue was RMB 328 million, representing an increase of 247% year-over-year from RMB 94 million in the prior year period.
Online used car transaction volume increased by 107% year-over-year to 23,566 units, and its corresponding GMV increased by 110% year-over-year to RMB 2,828 million. Moving on to more details. Commission revenue was RMB 176 million, representing an increase of 193% from RMB 60 million in the same period last year, primarily due to the increases in the transaction volume, GMV, and commission rate. Benefiting from our stronger value proposition to consumers, improved the user experience, and higher pricing power, the commission rate increased to 6.2% from 4.5% in the same period last year. Value-added service revenue was RMB 151 million, representing an increase of 342% from RMB 34 million in the same period last year, primarily due to the increases in the transaction volume, GMV, and the VAS take rate.
The VAS take rate increased to 5.4% from 2.5% in the same period last year, due to our higher pricing power brought by our optimized and diversified services. In terms of our To B business, To B transaction facilitation revenue was RMB 72 million, representing a decrease of 63% year-over-year. Our take rate for To B transaction facilitation slightly increased to 4.7% from 4.5% in the prior year period. Cost of revenues increased by 10% year-over-year to RMB 207 million. The increase was primarily due to the increases in the salaries and benefits of employees engaged in car inspection, quality control, customer service, and after-sales service, as well as the increase in the fulfillment cost, which was corresponding driven by the increase in the transaction volume. Gross profit increased by 61% to RMB 255 million from RMB 158 million in the prior year period.
Gross margin increased to 55% in this quarter compared to 46% in the prior year period, driven by better economy of scale and optimized cost structure. Total operating expenses was RMB 510 million. Non-GAAP operating expenses, excluding the impact of share-based compensation, were RMB 511 million. Sales and marketing expenses decreased by 26% year-over-year to RMB 330 million. This decline reflects our continuous efforts to enhance operating efficiency. Sales and marketing expenses, excluding the share-based compensation expenses of nil, as a percentage of total revenue decreased to 72% during the quarter from 130% in the prior year period. G&A expenses decreased by 24% to RMB 126 million. The decrease was primarily attributable to the decrease in our share-based compensation expenses. G&A expenses, excluding share-based compensation expenses, was RMB 126 million, representing 27% of the total revenues in the quarter, relatively flat compared to the prior year period.
R&D expenses increased by 58% to RMB 54 million. The increase was primarily due to the increase in the salary and the employee benefit expensesRMB expenses, excluding the impact of the share-based compensation expenses, was RMB 55 million, representing 12% of total revenues in the quarter, compared to 10% in the prior year period. Loss from continuing operations was RMB 253 million, a decrease from RMB 490 million in the prior year period. Non-GAAP loss from continuing operations, which exclude the impact of share-based compensation, was RMB 254 million, a decrease from RMB 418 million in the prior year period. Non-GAAP loss from continuing operations as a percentage of total revenues was 55%, a significant decrease from 121% in the prior year period. Net loss from continuing operations was RMB 267 million, a decrease from RMB 517 million in the prior year period.
The net loss was primarily due to the better economy of scale and greater operating leverage generated from our continuous efforts to streamline business operations and enhance operating efficiency. Non-GAAP net loss from continuing operations, which exclude the impact of share-based compensation, was RMB 268 million in the quarter, a decrease from RMB 445 million in the prior year period. Non-GAAP net loss from continuing operations as a percentage of the total revenue was 58%, decreasing significantly from 129% in the prior year period. Turning to our cash position. As of September 30th, 2019, we have cash and cash equivalents of RMB 627 million. Moving on to the guidance. Factoring the divestiture of our loan facilitation-related business to Golden Pacer, we expect the total revenue for the fourth quarter of 2019 to be in the range of RMB 540 million-RMB 560 million.
As we focused on cost control and efficiency measures to build a more sustainable and profitable business in the long run, we will also provide guidance on near-term operating profit expectations going forward. We expect the non-GAAP adjusted loss from continuing operations to be in the range of RMB 150 million-RMB 170 million for the fourth quarter of 2019. This forecast reflects the company's current and preliminary views on the market and operational conditions, which are subject to change. This concludes our prepared remarks.
Thank you, Mr. Zeng. Operator, we'd like to open the call for questions now. Thank you.
Ladies and gentlemen, if you wish to ask questions, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press the pound or hash key. The first question comes from the line of Eddy Wang from Morgan Stanley. Please ask the question.
Hi, DK, Michael, Nancy, I have two questions. The first is about ASP. We have witnessed that the ASP of the 2C business actually has been increased in the past three quarters. In the third quarter, I think the ASP has almost reached around RMB 120,000, which is almost the same level as the average ASP of a new car in China. How do you balance the ASP versus the transaction volume? What do you think the implied revenue per unit level in the near term and the long term? The second question is about the competition. Since we have achieved the narrow loss in this quarter, and our guidance also implies that a further narrow loss in the next quarter. I think the overall cross-regional transaction business model has been proven.
That's why I think some of the major competitors are actually also launch this cross-region transaction business. Have you viewed any direct competition from these competitors, the similar business? Do you think it still have a lot of room for us to gain share? Even if there's competition from the major competitors. Thank you.
好，谢谢Eddy。那这个问题我来回答，我是DK。这个还是我用中文回答，然后Nancy帮我翻译一下，好吗？先回答Eddy的第一个问题。我们现在的整个在交易平台上陈列的车辆，它的车价是从大约3万，一直到100万。在各个价位区间，其实我们都是有可售的商品的。那么最终的均价得到的这样一个结果，我觉得它是由两个原因导致的。第一个原因，就是今天在相对高价位一些的二手车，以及相对成色更新的二手车方面，客户本身对于服务的要求，对于保障的要求，对于选择丰富性的要求更高。所以这类别价位的消费者，对于选择优信平台更有倾向性。
Our platform will actually provide a very full price range for our cars from RMB 30,000 to up to RMB 1 million. Our current ASP is, like you said, is around RMB 120,000. I think mainly comes from two reasons. The first one is regarding to the relatively higher car price range, it's more with younger car age. These used cars more cater to the clientele who care more about the services or the after sales guarantees or wider selection of used cars.
对，第二，在这个部分的话，我还是想对比一下，包括在美国同样的大的连锁dealer，包括CarMax或者是Carvana。那CarMax的均价的话，大概在22,000美金，然后Carvana的均价大概在21,000美金。但是美国的二手车平均价格的话，大约是在1万美元，这个跟中国现在的情况也是比较相似的。那对于现在我们能够很好地将我们交易车辆的均价定位在当前的这个价位，我们实际上是觉得这是一件很欣喜的事情。因为对于同样交易的单车来说，成交一台5万块的车辆，和成交一台12万块的车辆，在检测、在物流和等等过程成本其实是类似的。但只要单车的交易价格能够更高，那么我们take rate所折算出来的单车净收入，就是一个更好的数字。那我也相信这应当是一个长期相对稳定的趋势。
If we look at the mature market in the U.S., like CarMax or Carvana. CarMax, their average selling price is about $22,000. Carvana, it's about $21,000. If we look at the overall market in the U.S., the average selling price is about only $10,000. This is quite similar to China's market condition. For us, we are very encouraged by our current ASP, because we can sell like RMB 5,000 used car or a RMB 120,000 used car. The cost incurred is quite similar regarding the inspection cost or delivery cost. Different car price equals to different per unit revenue we can earn if we charge the same take rate.
那么在整个对应的单车收入和整个交易量的这个问题上，我个人觉得其实这并不是一个绝对二选其一的关系，因为目前公司关心的是如何最大化我们的收入，以及对应这种收入的健康的盈利表现。
Yeah, in terms of the volume and car price, I think it's not the one way or the other. Our current focus is more to maximize our revenue scale and a healthy and sustainable profitability that comes along with this high-proximity revenue.
那么今天在这个季度和上个季度看到单车收入的提升，实际上我觉得是消费者对于全国购服务和价值的认可。那么我们在未来也不会以牺牲利润的形式来冲销量，而是要通过不断提升服务的能力，带动交易量的增长，同时带来可持续的盈利表现。
Yeah, our per unit revenue increase is actually an evidence of consumers recognition of our values brought by our online car transaction product offerings. We won't drive the volume by compromising per unit profitability. Instead, we will drive the volume growth as we continue to enhance our online used car transaction services. The more consumers naturally will be attracted to buy cars online from us. We believe this will help us to reach a sustainable profitability in the longer term.
好，那第二个问题关于竞争格局。我们确实也观察到，市场上我们最主要的竞争对手现在在像素级地模仿优信的在线交易模式。那我想首先这个也从侧面证明了我们在两年前选择这一模式的正确性。
Yeah. We do observe some peers in the market are copying our online used car transaction model at pixel level. This is actually a strong proof that we did the right thing two years ago to choose such business model.
我相信二手车在线交易是一个整个行业的大趋势。那么现在二手车在线交易的这个部分的市场还是一片蓝海。那我觉得市场容量是可以允许这个市场里存在除我们以外的另外一个第二名的参与者的。
We believe online used car transactions is definitely the future trend. We believe this market is still a blue ocean market, so it's large enough to have a second player.
当前全屋购业务模式的竞争是多元的。那么这个业务模式在未来实际上是进一步在考验公司的组织能力、经营管理的能力、服务客户的能力，还有我们整个供应链效率和稳定性的能力。那是一个多维度的竞争和对比。我们相信优信作为在线二手车交易的开创者，在过去两年时间里面，包括更早我们在业务过程中积累的丰富的行业经验，我们会保持住这个竞争优势，并最终赢得这场竞争。
Yeah. The competition in the online used car transaction area is actually multi-dimensional. It sets a very high bar for a company's ability to organize, operate and manage the business in a highly efficient manner. The ability to provide high quality customer services as well as to operate a highly efficient and stable supply chain. As the first mover in the market, we have accumulated massive know-how and expertise and build strong competitive advantages here. We are very confident to win this competition for sure. Thank you.
好，谢谢。谢谢Eddy。
谢谢。谢谢DK。谢谢。
Thank you. The next question comes from the line of Ronald Keung from Goldman Sachs. Please ask a question.
Thank you. Hi DK, Michael and Nancy. I have two questions and then I will translate it to Chinese. Firstly, it's on the industry. You mentioned the China V, China VI that has impacted sort of industry growth this year, not only new cars but also used cars. Do we see any signs of this bottoming or will this impact kind of drag on for a few more quarters before we see any potential uptick? Within the growth in this quarter, can you share just how the lower tier city growth has been versus higher tier city?
Just want to see how growth has been trending for these markets, particularly you mentioned about the strong volumes from the franchisees. My second question would be, given that the Golden Pacer restructuring is mostly behind us, can you share just how the current management team, DK and rest of the team, how are you spending your latest focus and time with the finance business now no longer with the group, what are we focusing on particularly in the cost side and in user experience?
Just want to hear how the management team is doing in the latest restructured entity。那我翻译一下。那第一个想听一下关于整个行业，的确国五、国六影响了今年的新车，也影响了二手车的这些增速。那想听一下我们对这个行业增速怎么看，就这个宏观加上这个国五、国六，我们这个增速会影响到可能这个季度，还有几个季度会有影响，还是我们看什么时候会见一个底，有一些好的恢复。那也想听一下我们在高线城市、低线城市的增速怎样，因为你刚才也说了，这些加盟的这些也增长得挺不错。那第二就是想知道我们现在Golden Pacer这个交易基本上快完成、快交割，那我们现在基本上没有金融板块了。那现在管理层大概最近的focus是在哪几个项目，还有就是我们对成本、用户体验这些是不是我们现在主要的一个focus。谢谢。
好，谢谢Ronald。那这个问题还是我来回答。那先说一下大的宏观市场。其实我们都感受到了，今年整个新车市场从去年开始就不好，那么今年的情况我们看到其实是更糟糕的。那么对二手车行业肯定也是带来了影响，今年二手车整体行业的增速也在下降。这个增速下降确实有两个原因：第一个原因就是在6月15号的时候，突然江浙地区，还有天津、河北，以及广东地区限制了国六，那么这个对我们在整体交易量上带来了有25%的业务的影响。
Yeah, we did see the new car market is declining and it's worsening now. The used car market also took some hit. For the used car market specifically, the growth rate is slowing mainly because of two reasons. One is, like you said, is a new emission standard adopted in a few regions like Zhejiang province or Hebei or Guangdong provinces. For us, it affected about 25% of our Q3 volume.
目前来看，第一这个类政策不会进一步扩散到其他省去。因为根据2016年3月份国务院的文件，在中国重点大气污染防治的城市，是可以来采取提高限制迁入的标准，但是其他的区域的话，是严格禁止提高限迁标准。
We won't expect the policy will be further adopted by other cities because back in 2016, the state government has already issued the regulation to lift the restriction on the car transported across regions.
那么对于这些限制迁入区域的交易量改善，我们认为可能还需要两到三个季度才能会有变化。主要的改善方式就是市场上符合国六标准的二手车会越来越多。
We will see the market will be digesting the policy changes and in the next two or three quarters, the market will be picking up. Mostly because there will be more used car inventories meeting the new emission standard will be available on the market.
第二个，今年整个大的市场上对二手车带来影响的是，我们看到今年从应该是第二季度的中旬开始，新车的价格一直在下降，部分新车价格下降的幅度还比较大，这个的话会对当前在市场上库存二手车的性价比带来影响。
The other factor is actually from the new car price declining side. From mid this Q2, we did see the automakers have been cutting their new car prices to boost sales. This will put some short-term pressure on the used car market because it affects the price to performance of the used cars.
那从目前来看的话，我们想新车价格持续下探应该是不会再过长地持续，因为现在很多车辆的价格已经降到了底线，所以我们相信这个影响要素在明年会变得更少。
We think the new car price cut has already reached the bottom to some extent. The impact from new car market will be minimizing over time over into next year.
所以低线城市的成交量在Q3和Q2基本上水平是保持一致的，因为我们现在整个业务的增长，在高线城市和低线城市都是在同比在推进。那么现在低线城市大约交易量占我们总体40%左右。
The transaction volume on our platform from the lower tier cities in Q3 was basically similar to our Q2 level, about 40% of our total volume. The growth rate between higher tier cities and the lower tier cities on our platform are also pretty similar.
好，那Ronald你的第二个问题是关于在近期管理层最集中于的几个用户体验和成本项目。我们现在有四个事情是从Q3开始也一直在做，那么Q4也会有更多的效果显现出来。第一个是我们加强数据应用，然后把这个应用做到我们对车辆的选品上面。其实可以看到，今年我们在整个检测数量比去年的检测数量是要略低的，那么在更低的检测数量的水平线上，我们的成交却还是依然在保持一个和去年同比的一个较快增长。这个在检测方面选品上的改善，会带来我们在检测上面的成本的节约。同时我们也越来越有能力在市场上提前帮助消费者选出来一些性价比更高、消费者更受欢迎的一些车。
Yeah. The first action we take is we leverage big data analytics to improve our inventory mix available on our platform. To target the most useful inventory, we can actually downsize the number of cars inspected. You can see this year we actually inspected less cars than last year, but the transaction volume is actually quite higher than last year's level. This will help us to reduce the per unit inspection cost, and we [Foreign language] also help consumers to better identify the better price-to-performance cars on our platform as well.
那第二个事情，我们在着力提高成交客户的交付满意率。这里面主要两件事，一个是及时性，我们要如期按约地交付。第二一个的话，是保证交付车况和客户在线选车时候的一致性。那么交付车况的一致性的管理在第三季度取得了比较好的进展。一方面，客户的满意率有所提高，更重要从我们节约成本的角度上来看，我们的退车率得到了一个非常有效的控制和下降。
Yes. The second action we take is we enhance the customer satisfaction in terms of the fulfillment, such as the timeliness of delivery and the consistency of the car's condition between consumer see the video inspection report online and the actual car they see when they receive the car. The increased satisfaction actually help us lower our car return rate effectively.
那第三个的话，因为消费者在线购车是一个全新的模式，那我们的专业顾问实际上在服务客户的过程之中，如何掌握通过对虚拟车源的介绍，能够赢得客户，这其实是个很重要的事情。所以我们在近期一直是结合产品，包括结合AI一起在提升我们的CRM系统。那么希望这个系统的提升能够更加准确地帮助客户去推荐车辆，帮助我们的销售建立一个更高效的销售服务系统，以及提升销售的专业水平。这些工作的话，能够有效地提高我们的线索转化率，也同时能够让客户体验到专业的服务。
Yes. Buying cars online is a very new way. Our sales consultants need to be fully prepared to convert the consumers to buy cars online. We also upgraded our CRM system by leveraging the AI technology, so we can better recommend the cars to our consumers. We also build up this very highly effective sales assistant system to enhance the professionalism of our sales rep. This will also enhance our customer satisfaction and the conversion rate as well.
那最后一个的话，就是在着力地提升我们的物流能力。那么在提升物流能力上面，我们首先是把原来的两段式物流改为了三段式，然后在三段式物流中大幅提高了干线物流的占比，那么现在干线物流的占比已经达到60%。那干线物流的占比提高，一方面可以降低平均单车每公里的运送成本，另外一个方面的话，可以有效地提升我们的物流的送达时效。
Yes. The fourth area is on logistics. We optimize our logistics planning by upgrading the former 2-part logistics to 3-part logistics. We increased the portion of the main route versus the brown route. Currently the main route accounts for about 60% of our total logistics business. It will effectively lower the per unit delivery cost and also increase the full load rate as well. Make sure the car can be delivered to the consumer doorstep as soon as possible in a timely manner.
好，谢谢Ronald。
感谢 DK。
Thank you. Once again, if you wish to ask questions, please press star one on your telephone and wait for your name to be announced. The next question comes from the line of Ashley Shi from Credit Suisse. Please ask your question.
哎，DK，曾总，你们好，谢谢你们接受我的提问。我这边主要有两个问题，一个是想问一下，我们在这个用户纯线上购车这方面的接受度怎么样？就是说如果没有线下看车的环节，有多少用户是愿意直接通过线上看车来买二手车的？第二个问题是想多了解一下就是cash这方面的问题。就比如说Golden Pacer这边，我们替他们付的一些deposit之类的，比如说在4Q他们会还多少回来？然后再加上US$100 million的proceeds，我们打算怎么用这些cash？然后我自己翻译一下。Thanks management for taking my questions. I have two questions. One is about users acceptance on online car purchase without seeing the cars offline. Is there any user metrics that could be shared?
Second question is on the cash position. How much receivables would we have from Golden Pacer in 4Q, given we have made some deposits on behalf of them? Also what's our plan on the use of the cash together with the $100 million proceeds from the transaction? Thank you.
好，谢谢。那我来回答第一个问题，然后曾珍回答第二个问题。的确，现在消费者还是在线下看实车买得多。因为在线购车这是一个对用户来说全新的一种购车方式，大家的习惯转移还需要一些时间。不过从过去的两个数字，从过去的七个季度来看，选择优信在线购车的用户确实是在不断增长，越来越多的，我觉得这是一个趋势。第二，其实从整个今年来看，已经有10万消费者选择我们通过在线来购买。这个量级也说明在线选择它是具有一定的普遍性的。
Yeah. It's true that there are many consumers go offline to check the car and buy the car. But buying cars online is a totally new experience for consumers. It will take some time for consumers to shape their shopping habits. But what we do see is there are increasing number of consumers buying cars online from Uxin. This year we are looking at 100,000 used online car transactions from our platform. We pose to the same number of consumers actually accepted this way of buying cars online.
我们相信在线购车一定是整个行业的大的趋势，因为在线购车的优势是线下买车不可比拟的。第一，消费者在线购买的车辆选择极大地多于他在线下。因为通过优信在线购车，我们没有门店等等一系列的固定成本，也能够给消费者带来一个更优的价格，包括我们能有效地发现区域差价。同时通过我们一站式的服务，客户的购买也非常便利。在线数字化对车辆的展示也可以给客户带来一个全透明的一个购车体验。
Yeah. Buying cars online is definitely the future trend. Buying cars online also have the non-comparable advantages over going offline. We can provide a much wider selection of used cars from nationwide. Because we don't have a fixed cost of the offline stores, we can offer better prices to consumers. We are able to also provide a one-stop solution online to consumers, which cannot be provided by the offline stores. The convenience we can deliver to the consumer also help us.
OK.
Okay. Thanks, Ashley. I'll address your second question. I more likely to give you the overall cash position of our current status. I think our business is well supported by our current cash position. First of all, divesting the loan facilitation business has significantly lower our cash requirements. We no longer need to put cash deposits as we receive cash with the financing partner or buy back the default loans. Both will lift the pressure on our working capital. Second is saying without the loan facilitation business and the listco, our bottom line will be a reasonable indicator of our cash flow performance. As we continue to take cost control measure and enhance efficiency, we believe we can keep narrowing the losses and minimizing the cash outflow in this sense. Address your question per the definitive agreements we enter into with Golden Pacer. This quarter we still advance some working capital associated with the divestiture. After the transaction is closed, the portion of the cash will be returned back to us in due course. Last, we also expect to receive an aggregated cash consideration of $100 million associated with the divestiture after the closing. Collectively, all of this will contribute to our cash position. Again, with our focus on enhancing monetization ability and operating efficiency, we believe all will contribute to our long term sustainable growth. Thank you, Ashley.
Thank you. You have reached the end of question answer session. I would now like to hand the conference back to Nancy for closing remarks.
Thank you everyone for joining today's call and for your continuous support for Uxin. We look forward to speaking to you again in the near future. Thank you.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.