On November 14th news, yesterday, the 58 city life service platform (NYSE:WUBA) announced by the end of September 30, 2017, the third quarter unaudited financial report. Results showed that the 58 city third quarter revenues of 2 billion 722 million 500 thousand yuan ($410 million 200 thousand), an increase of 33.3% yuan, 2 billion 650 million yuan more than the company expected limit.
That night, the 58 city chairman and CEO Yao Jinbo, 58 city CFO Zhou Hao attended the conference and interpretation of Q3 results and answer analyst questions, comments on the 58 city in the quarter business highlights.
In a conference call, Yao Jinbo summarized several factors of the third quarter of steady growth, from 58 city platform to further strengthen ecological construction and improve operational efficiency have made steady progress. Through strict control of audit standards, strengthen the content of precision and quality, strengthen communication and enhance the efficiency of platform stickiness, 58 city platform to achieve the ecological construction of the continuous strengthening and optimization.
Yao Jinbo said that the next focus of 58 city is still to strengthen the platform construction and improve operational efficiency,
At the earnings meeting, Yao Jinbo defined the 58 towns as "the same town"
Yao Jinbo also answered the analyst for the user around this year, transaction volume and the rapid growth of small programs. On the one hand, the 58 city will open up through their own resources and around to form a joint force; on the other hand, around together exploration and investment in the Tencent Tencent, how to better docking the ecological resources to get the user. Stop in November 12th 2nd anniversary, Bush announced in 2017 total number of users exceeded 100 million, trading volume reached 21 billion 64 million yuan. In September this year, in the retail field,
For the current second-hand car market in full swing, Yao Jinbo pointed out that China will become the largest second-hand car market to play the role of.58 used car neutral platform second-hand car market opening in the next few years, to provide various services for all the corresponding car dealer. He said
The following is the earnings conference call record:
Citigroup analyst: please introduce the business of the 58 towns, what is the overall development strategy at present?
Yao Jinbo: 58 with the town is 58 city gradually to the rural market penetration of a product. We believe that the future of rural Chinese has broad prospects, live here more than half of them from Chinese, information opaque line under the circumstances, skip PC, traditional Internet, direct access to the mobile Internet era. In the past, the 58 city faces the urban market mainly, and in the future, the 58 towns are specifically aimed at the rural market.
At present there are about 40 thousand China Township, our objective is to penetrate into the next year the 30 thousand towns, basically every town, we can find the corresponding operating partner, he can be in 58 with the town of products inside the revenue, and help us develop and organize information users. From the current development point of view, 58 of the town from 0 to 1 million active users (DAU) users, only about half a year. We believe that next year we expect to grow another 10 times, from about 3000 towns that are now covered, to 30 thousand townships across the country.
The number of people in rural areas of China is huge. They, like the urban population, also need a variety of second-hand business, renting, looking for work and other life services. Therefore, we can replicate the path and experience of 58 in the city, including products can be copied to the rural areas. So, we have the confidence to do the 58 towns well.
Citigroup analyst: please share the development strategy in the user side? How to see the competition between walking and idle fish?
Yao Jinbo: look now is one of the most important secondary trading platform China, and growth prospects, regardless of user data or average daily trading volume growth has exceeded our expectations. On the one hand, the 58 city will open up through their own resources and around to form a joint force; on the other hand, will also be around with the investment in the Tencent Tencent to explore, how to better docking the ecological resources to obtain user.
We know that Facebook has opened a Market Place channel, which has climbed to the most important position of FacebookAPP. When the Market Place transactions in the Chinese market are active, we also hope to move around in the Tencent system docking enough traffic and resources support.
Chinese has reached the moment of the outbreak of secondary trading products, competition in the industry, and around Ali's idle fish location is not exactly the same, we believe that there are a lot of users closely connected by Tencent WeChat account, user habits and turn around the business, future development will be in very promising, and have the advantage of location.
UBS analyst: recent second-hand car market has a large influx of funds, there are a lot of competitors in the market, I know the 58 city used car business is not perpendicular to the C2C business, but in the market will continue to face the competitive situation, 58 city used car business which will machine and layout in the market?
Yao Jinbo: the used car sector is indeed a very competitive field, many companies have absorbed hundreds of millions of dollars in this market. In recent years, China has become the world's largest new car sales market, the industry generally believe that China will become the world's largest second-hand car market in the next few years.
58 city in addition to its own operation similar to Auto Trader such second-hand car open platform, but also melon seeds used car important shareholder. Melon is a main C2C second-hand car trading service provider, we are very pleased to be able to become the company's shareholders, but also see it will become dominant in the pattern of the game player.
At the same time, we will also make 58 city second-hand car and melon second-hand car business differentiated development. Let 58 city become a service for all car dealers, small and medium-sized business platform, which is consistent with the 58 city has been positioning. We believe that the future is like the seeds of Chinese second-hand car trading service providers, there will also be many entities in small and medium-sized businesses, including 4S stores, also needs the Internet platform to provide services for them.
We want to play the role of neutral platform used car open, need to provide all services for small and medium-sized car manufacturers, such as we do in the maintenance inspection service vehicle. We hope to provide the best platform for the Chinese users, covering the industry's largest vehicle platform. According to the data that we see, the 58 city is China the largest flow of second-hand car platform, at the same time, in 2018 58 city will continue to increase in product innovation mode, 58 city used car into Chinese Auto Trader.
UBS analyst: Recently, a lot of social electricity providers in small programs and other applications on the growth of very fast, round in this area what are the opportunities?
Yao Jinbo: we're going deep into how to better integrate the ecology of the Tencent, including the deep connection of small programs. I believe that given the time, they will explore the best path. Moreover, the Tencent is very supportive of us to do this kind of exploration, but also to the tilt of resources. If you explore the corresponding path, that will let it plug in again take off wings.
Analyst: my question is about the growth of 58 city traffic growth from what aspects?
Yao Jinbo: 58 city to provide users with basic needs to meet the needs of life services. So, with the known time and cumulative users over the years, 58 city traffic has been steadily increasing in daily access to the mobile Internet era is to keep more than 30% annual growth. We believe that the next year with our investment in the product, including content, ecological construction, line connection and so on, the growth will continue, and we also extend to the town with the town through the 58 opening of the second front.