Collectively, these elements have fueled our gross margin resurgence in vehicle sales. Our high-margin value-added services, including the finance, insurance, repair, and other value-added services have seen a continuously increasing penetration rates. Revenue generated from these services per retail vehicle has surged by above 30% compared to six months ago, making another key driver for our gross growth. Our cutting-edge large-scale reconditioning facilities empower us to offer a comprehensive suite of value-added services to our used car buyers, similar to what new car flash shops offer, but with a distinct cost advantage. This Uxin superstore, a large showroom model apart from traditional used car marketplaces and small used car dealerships.
We are heartened by the market enhancements in our gross margin, which bolsters our confidence in obtaining EBITDA profitability for our superstores this year. As we start scaling up our inventory, achieving profitability from our large-scale sales, it’s just a matter of time. We’re committed to achieving EBITDA profit from our two major superstores in Hefei and Xi’an within 2023. And that’s our answer to your question.
Kun Dai: Operator, can we move on.
Operator: The next question comes from Kai Kang of Citi. Please go ahead.
Kai Kang: Do you think that [indiscernible] trying to expand into the used car business, will intensify completion and post challenges to Uxin and compared to those leadership sales in used car sector, where are Uxin’s stand? Thank you.
Kun Dai: So thank you for the question. The transformation and industry upgrade in China’s used car market is well underway. We generally welcome all responsible participants committed to fostering trust with consumers and elevating the industry standard. Going forward, in China’s used car landscape, those retailers who emphasize product quality, customer experience, integrity and compliance will undoubtedly be at the forefront. And collectively, we have the potential to steer the industry towards stronger growth and broader expansions. So it’s my belief that the used car sector is not winner takes all market. Each retail model can find its niche and flourish. To draw from a mature market analogy, consider the U.S. where CarMax is leading used car retailer and captures less than 3% of the market share, whereas branded dealerships represent around 40%.
It’s not about — competition. Each player taps into their strength, catering to a specific brand or pricing segment, thereby nurturing their customer base and establishing mutual respect within the market. So compared to our U.S. peers, both we and new car dealerships in China still have significant growth potential in capturing market share. And in comparison to new car dealerships, building into the used car arena, our unique selling proposition is the contrast between our extensive superstores and more niche specialty stores. So operating under a warehouse style superstore model, we emphasize volume and turnover. We pride ourselves on the vast array of choices available to customers with thousands of vehicles under a single window. Moreover, we possess the industry’s most advanced larger-scale used car reconditioning factories.
With a streamlined reconditioning process and cutting-edge digital management, we offer a cost-effective solution without compromising on vehicle quality. When comparing vehicle types and pricing with new car dealerships, we believe our portfolio is both compelling and competitively priced. And that essentially sums it up. Thank you for the question.
Kai Kang: Thank you.
Operator: That concludes our call today. I will now hand the call back to management for any closing remarks.
Jack Wang: Alright. Thank you. Thank you again for this call and for your continued support for Uxin. We look forward to speaking to you again very soon in the future. Thank you. Bye-bye.
Kun Dai: Bye-bye. Thank you.
