The Uxin Limited ("Uxin" or the "Company"), one of China's leading used car retailers (Nasdaq: UXIN), has announced its unaudited financial results for the first quarter ended June 30, 2023 in a press release today.
The highlights for the quarter ended June 30, 2023 are as follows:
The following are the financial results for the quarter ended June 30, 2023:
The company reported total revenues of RMB289.0 million (US$39.9 million) for the three months ended June 30, 2023, a decline of 15.9% from RMB343.8 million in the last quarter and a drop of 53.8% from RMB626.2 million in the same period last year. As a result of the decline in total transaction volume, the declines were mainly due to this decline.
The retail vehicle sales revenue for the year was RMB186 million.The amount of money is $8 million (US$25 million).For the three months ended June 30, 2023, there were $8 million in revenue (reflecting a decrease of 29 percent).There is a 1% reduction from RMB263.There was a decrease of 46.7% in the last quarter as compared to the previous quarter.From RMB348 to RMB448 there is a 4% increase.As compared to the same period last year, the number was 4 million. In the three months ended June 30, 2023, retail transaction volume was 1,687 units, a decrease of 25 percent from the same period last year.There were 2,259 units in the last quarter, a decrease of 29 units from the previous quarter.The number of units sold in the same period last year was 2,407, a decrease of 9%. There were several factors that contributed to the decrease in retail transaction volume, but most of them were market-related. From March 2023 onwards, China's aggressive pricing promotion in the new car market had a significant impact on the used car market, with customers showing stronger wait-and-see attitudes when it came to buying used cars in the country. The Company has maintained a prudent inventory procurement strategy and has not significantly increased its inventory over the past few years, which has limited the growth of its retail sales as a result. Additionally, as a result of proactive optimization of inventory structure, the retail average selling price (ASP) declined as a result of the proactive optimization
Additionally, as a result of proactive optimization of inventory structure, the retail average selling price (ASP) declined as a result of the proactive optimization
There was a revenue of RMB94 million from wholesale vehicle sales.There was a total amount of $6 million (US$13 million).As compared with RMB73 million reported for the three months ended June 30, 2023,.In the last quarter, the company generated RMB6 million and RMB264 million.Compared to the same period last year, the amount was $0 million. The wholesale transaction volume for the three months ended June 30, 2023 was 1,567 units, which represents a 16 percent increase over the same period last year.There was a decrease of 48 units compared to last quarter's 1,348 units, a decline of 2%.Compared to the same period last year, 3,068 units were sold, a decrease of 9%. In terms of volume, the quarter-over-quarter increase is mainly due to the natural increase in vehicle acquisitions and wholesale transactions after the Spring Festival, which is normally the period when vehicle sales are at their lowest.. As the Company continued to improve its inventory capacity and reconditioning capabilities, an increased number of vehicles acquired during the period were reconditioned to meet the Company's retail standards rather than being sold via wholesale channels, as compared to the same period last year.. Consequently, there was a decline in wholesale vehicle sales revenue as a result
Consequently, there was a decline in wholesale vehicle sales revenue as a result
During the three months ended June 30, 2023, the company's other revenue amounted to RMB7.6 million (US$1.0 million), compared with RMB6.5 million in the last quarter and RMB13.8 million in the same period last year.
The cost of revenues for the three months ended June 30, 2023 was RMB271.4 million (US$37.4 million), compared with RMB336.0 million in the last quarter, and RMB619.4 million in the same period last year.
There was a 6 percent gross margin for the quarter.Compared with the previous quarter, the quarterly growth rate for the three months ended June 30, 2023 was 1%.There was an increase of 3% in the last quarter, as well as an increase of 1%.The same period last year saw an increase of 1%. Several factors contributed to the increase in gross margin as a result of the combination of these factors. There has been an increase in the penetration rate of value-added services, which have high gross margins, in the marketplace. As a result of the improved inventory structure and vehicle pricing capabilities, both the sales margin and the sales turnover rate have increased as a result. As a result of Xi'an IRC's operation, the Company's reconditioning costs per retail vehicle have significantly decreased as a result of the Company's reconditioning capabilities being enhanced by Xi'an IRC. This further fuels the Company's resurgence in gross margins.
As a result of Xi'an IRC's operation, the Company's reconditioning costs per retail vehicle have significantly decreased as a result of the Company's reconditioning capabilities being enhanced by Xi'an IRC. This further fuels the Company's resurgence in gross margins.
As a result of the share-based compensation, the total operating expenses for the three months ended June 30, 2023 were RMB87.8 million (US$12.1 million). The total operating expenses excluding the impact of share-based compensation were RMB77.7 million.
In terms of other operating income, net, RMB7.0 million (US$1.0 million) was reported for the three months ended June 30, 2023, a decrease of 85.4% from RMB47.9 million in the same period last year. This decrease was primarily attributed to the decline in liability waiver gains.
The loss from operations for the three months ended June 30, 2023 was RMB63.2 million (US$8.7 million), compared with RMB57.4 million for the last quarter and RMB96.6 million during the same period last year.
As a result of the fair value impact on the senior convertible preferred shares for the three months ended June 30, 2023, the company suffered a loss of RMB36.9 million (US$5.1 million), compared with a gain of RMB0.5 million for the three months ended June 30, 2023. A non-cash loss was primarily a result of the fair value change that occurred in relation to warrants issued to support the senior convertible preferred shares during the period.
There were net (loss)/income from operations of RMB91.6 million (US$12.6 million) for the three months ended June 30, 2023, which compares to a net loss of RMB79.8 million (US$12.6 million) for the previous quarter and a net income of RMB160.0 million for the same period last year.
In terms of non-GAAP adjusted EBITDA for the three months ended June 30, 2023, the company lost RMB46.6 million (US$6.4 million) compared with RMB40.8 million in the previous quarter and RMB76.3 million for the same period last year.
Availability of liquidity
According to the Company's financial statements, the Company has incurred accumulated and recurring losses in its operations, as well as cash outflows from its operating activities. Furthermore, as of June 30, 2023, its current liabilities exceeded its current assets by approximately RMB272.6 million.
The Company's ability to continue as a going concern is dependent on management's ability to increase sales, achieve higher gross profit margin and control operating costs and expenses to reduce the cash that will be used in operating cash flows, and to seek financing arrangements, including but not limited to proceeds from the subscription of the Company's senior convertible preferred shares issued from exercise of the warrants, and funds from renewal of the existing borrowings and new facilities and equity financings. As a result of uncertainty regarding the execution of these business and financing plans, there is substantial doubt regarding the Company's ability to continue as a going concern in the future. As a result of these uncertainties, the accompanying unaudited financial information does not include any adjustments that are indicative of these uncertainties
As a result of these uncertainties, the accompanying unaudited financial information does not include any adjustments that are indicative of these uncertainties
Uxin: a brief introduction
With its advanced production processes, new retail experiences, and digital empowerment, Uxin is China's leading used car retailer and a pioneer in industry transformation. As a one-stop, hassle-free, and reliable vehicle dealer, 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.. Through our omni-channel strategy, we are able to leverage our leading online platform to serve customers across the nation and establish market leadership in selected regions through offline inspection and reconditioning centers through our innovative online platform.. We have developed strong management and operation capabilities as a result of leveraging our extensive industry data and continuous technology innovation throughout our more than ten years of operation.. Our commitment is to uphold our customer-centric approach as well as driving the healthy development of the used car industry forward in a way that benefits everyone
Our commitment is to uphold our customer-centric approach as well as driving the healthy development of the used car industry forward in a way that benefits everyone
The use of non-GAAP financial measures by the company
In assessing the business, the Company considers and uses certain non-GAAP measures, such as adjusted EBITDA per share and adjusted net loss from operations per share - basic and diluted, as supplemental measures for reviewing and assessing its operating performance.. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with Generally Accepted Accounting Principles (GAAP). Accounting principles (GAAP). The Company defines adjusted EBITDA as EBITDA that does not include share-based compensation, fair value impact of the issuance of senior convertible preferred shares, foreign exchange losses, other income/(expenses) and dividends from long-term investments.. In the Company's definition of adjusted net loss attributable to ordinary shareholders per share - basic and diluted - it is the net loss attributable to ordinary shareholders per share excluding the impact of share-based compensation, the fair value impact of the issuance of senior convertible preferred shares, and the deemed dividend to preferred shareholders resulting from the activation of a down round feature.. It is the intention of the company to present the non-GAAP financial measures because the non-GAAP financial measures are used by the management in evaluating the operating performance and formulating business plans. Moreover, the Company believes that the non-GAAP measures are useful for investors to assess the operational performance of the Company, since these measures do not include certain finance or non-cash items that the Company believes do not directly relate to its core business.. By excluding these items, we believe that we are able to more effectively evaluate our performance period-over-period and relative to our competitors by excluding these items for our analysis
By excluding these items, we believe that we are able to more effectively evaluate our performance period-over-period and relative to our competitors by excluding these items for our analysis
It is important to note that non-GAAP financial measures are not defined under U.S. GAAP. This information is not presented according to U.S. GAAP and is not based on GAAP. According to GAAP,. There are limitations to the use of non-GAAP financial measures as analytical tools. A major limitation of the use of adjusted EBITDA is that it does not reflect all items of income and expenses that have an impact on the Company's operations, which is a major disadvantage. There have been and will continue to be a variety of expenses and income incurred in the business, such as share-based compensation, fair value impact from the issuance of senior convertible preferred shares, as well as dividend from long-term investments.. Additionally, the non-GAAP measures may differ from the non-GAAP measures that are used by other companies, including peer companies, and therefore their comparability may be limited as a result
Additionally, the non-GAAP measures may differ from the non-GAAP measures that are used by other companies, including peer companies, and therefore their comparability may be limited as a result
It is the Company's responsibility to compensate for these limitations by reconciling the non-GAAP financial measure with the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. It is important that you review the Company's financial information in its entirety and do not rely on a single financial measure alone.
The following table provides a reconciliation of Uxin's non-GAAP financial measures to the most comparable U.S. GAAP measure at the end of this press release.
Information about the exchange rate 
In this announcement, certain RMB amounts have been translated into U.S. dollars. There is a conversion into dollars ("US$") at specified rates solely for the convenience of the reader, except for those transactions that were actually settled in U.S. dollars.. The dollar is. As a general rule of thumb, all translations from RMB to US$, unless otherwise stated, were made at a rate of RMB7 per US$.To convert 2513 into US dollars, click here.00, representing the index rate as of June 30, 2023, as stated in the HIP as of June 30, 2023.The Board of Governors of the Federal Reserve System has released its 10th statistical release. We make no representation that the RMB or US$ amounts referred to in this document can be converted into US$ or RMB, as the case may be, at any particular rate or at all in the future
We make no representation that the RMB or US$ amounts referred to in this document can be converted into US$ or RMB, as the case may be, at any particular rate or at all in the future
Statement of Safe Harbor
There are forward-looking statements in this announcement. The following statements have been made in accordance with the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995.. The forward-looking statements can be identified by the use of terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" or similar expressions.. This announcement contains forward-looking statements about, among other things, the business outlook and quotations from management in this announcement, as well as Uxin's strategic and operational plans for the future. It is also possible for Uxin to make forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials, and in oral statements that its officers, directors, or employees make to third parties.. A forward-looking statement refers to a statement that is not based on historical facts, such as a statement describing Uxin's beliefs and expectations. There are inherent risks and uncertainties associated with forward-looking statements. 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: Uxin's goal and strategies; its expansion plans; 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. Uxin's filings with the Securities and Exchange Commission provide additional information regarding these and other risks related to Uxin. The information contained in this press release and in the attachments to this press release is as of the date of this press release, and Uxin does not undertake any obligation to update any forward-looking statement, except where necessary under applicable law.
The information contained in this press release and in the attachments to this press release is as of the date of this press release, and Uxin does not undertake any obligation to update any forward-looking statement, except where necessary under applicable law.
The following contact information is for inquiries from investors and the media: Uxin Limited Investor RelationsUxin LimitedPhone: +86 10 5691-6765Email: ir@xin.com
Blueshirt GroupMr. Jack WangPhone: +86 166-0115-0429Email: Jack@blueshirtgroup.com Contact details: Blueshirt Group Mr. Jack Wang
The source of this information is Uxin Limited
The Uxin Limited ("Uxin" or the "Company") (Nasdaq: UXIN), a leading retailer of used cars in China, today announced its financial results for the first half of 2008.
It has been announced today that Uxin Limited ("Uxin" or the "Company") (Nasdaq: UXIN), China's leading used car retailer, has released its unaudited results for the third quarter ended March 31, 2017.
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