BEIJING, Nov. 28, 2023 /PRNewswire/ -- Uxin Limited
("Uxin" or the "Company") (Nasdaq: UXIN), China's leading used car retailer, today
announced its financial results for the first and second quarters
of fiscal year 2024.
Despite challenging economic conditions and a competitive used
car market in China, Uxin achieved
robust growth from the first to the second quarter of fiscal year
2024. The Company's retail transaction volume for the second
quarter reached 2,287 units, a 35.6% sequential increase from the
first quarter, significantly outpacing the industry's 5% sequential
transaction volume growth. Additionally, the Company's flagship
Changfeng superstore, a joint venture with the Hefei local government, commenced its trial
operations. Encompassing a vast area of 450,000 square meters, the
Changfeng superstore features the world's most advanced used car
reconditioning factory and the largest warehouse-style used car
retail superstore, with a capacity to showcase up to 10,000
vehicles. This flagship store is expected to drive sustained
business growth for Uxin in the coming years.
Over the past two years, Uxin's superstore business model
has proven successful. The Company has effectively maintained the
turnover days of its inventory below 45, while expanding its gross
margin to 6.2% in the second quarter from 1.3% in the same period
last year. In the second quarter, the Company also narrowed its
overall adjusted EBITDA loss by almost half year-over-year, with
the Xi'an superstore achieving
positive EBITDA in September. Alongside significant improvements in
profitability, Uxin's customer net promoter score (NPS) has
maintained around 60, leading the industry for seven consecutive
quarters.
Mr. Kun Dai, Founder, Chairman,
and CEO of Uxin, outlined the Company's roadmap to overall
profitability in the earning press release. He highlighted that the
Xi'an superstore, relocated and
upgraded in December 2022, achieved
positive EBITDA in September 2023
after 10 months of operation. The Changfeng superstore in
Hefei City, which began trial operations in September 2023, is expected to reach positive
EBITDA by March 2024 or earlier.
Leveraging the scalable profitability of its superstores, combined
with Uxin's ongoing efforts in cost control and optimization, the
Company targets to achieve overall adjusted EBITDA profitability by
September 2024 or earlier.
Mr. Feng Lin, CFO of Uxin,
expressed confidence in the Company's trajectory towards
high-quality, sustainable development. He emphasized the Company's
strong financial position as a cornerstone for future business
growth and profitability objectives. In September 2023, Uxin entered into an equity
investment agreement with the investment platform of the local
government of Hefei City. As part
of this agreement, the Hefei
government platform will invest up to RMB1.5
billion in Uxin's Hefei
subsidiary over the next decade, with an initial tranche of
approximately RMB150 million
essentially completed. In addition, the Company has successfully
made arrangements with its investors to finalize the delivery of
approximately USD30 million from
previous financing transactions by the end of this year.
About Uxin
Uxin is China's leading used
car retailer, pioneering industry transformation with advanced
production, new retail experiences, and digital empowerment. We
offer high-quality and value-for-money vehicles as well as superior
after-sales services through a reliable, one-stop, and hassle-free
transaction experience. Under our omni-channel strategy, we are
able to leverage our pioneering online platform to serve customers
nationwide and establish market leadership in selected regions
through offline inspection and reconditioning centers. Leveraging
our extensive industry data and continuous technology innovation
throughout more than ten years of operation, we have established
strong used car management and operation capabilities. We are
committed to upholding our customer-centric approach and driving
the healthy development of the used car industry.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking" statements which are made pursuant to the "safe
harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "aims,"
"future," "intends," "plans," "believes," "estimates," "likely to,"
and similar statements. Statements that are not historical facts,
including statements about Uxin's beliefs, plans, and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the risk and uncertainties as to the timing of the entry
into definitive agreements or consummation of the transactions; the
risk that certain closing conditions of the transactions may not be
satisfied on a timely basis, or at all; impact of the COVID-19
pandemic; Uxin's goal and strategies; its expansion plans and
successful completion of certain financing transactions; its future
business development, financial condition and results of
operations; Uxin's expectations regarding demand for, and market
acceptance of, its services; its ability to provide differentiated
and superior customer experience, maintain and enhance customer
trust in its platform, and assess and mitigate various risks,
including credit; its expectations regarding maintaining and
expanding its relationships with business partners, including
financing partners; trends and competition in China's used car e-commerce industry; the laws
and regulations relating to Uxin's industry; the general economic
and business conditions; and assumptions underlying or related to
any of the foregoing.
For investor and media enquiries, please contact:
Uxin Limited Investor Relations
Email: ir@xin.com
The Blueshirt Group
Jack Wang
Phone: +86 166-0115-0429
Email: Jack@blueshirtgroup.com
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SOURCE Uxin Limited