BEIJING, Dec. 6, 2023 /PRNewswire/ -- Uxin Limited ("Uxin"
or the "Company") (Nasdaq: UXIN), China's leading used car retailer, announced
its financial results for the first and second quarters of fiscal
year 2024 on November 28, 2023.
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.
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
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