WEB NEWS Comments & Business Outlook
BEIJING, March 24, 2020 /PRNewswire / -- 58.com Inc. (NYSE: WUBA) ("58.com" or the "Company"), China's largest online classifieds marketplace, today announced that it entered into definitive agreements with Uxin Limited ("Uxin") (Nasdaq: UXIN), a leading national online used car dealer in China, to purchase certain assets and liabilities related to Uxin's B2B online used car auction business for a total cash consideration of US$105 million. The transactions contemplated under the definitive agreements are subject to customary closing conditions, and are currently expected to close by the first half of 2020.
Mr. Michael Jinbo Yao, Chairman and CEO of 58.com, commented, "The purchase of Uxin's B2B used car auction platform marks another important step in the roll out of our new "all in service" strategy. Uxin's auction business directly complements our used car business. We are already a leading B2C player in the industry that generates significant consumer traffic to used car dealers in China. With the addition of Uxin's B2B auction platform, we can expand the options we can offer dealers. Once the deal is closed, both teams will quickly join forces and provide more diversified services and integrated solutions to our customers and build a more effective used car trading ecosystem."
Comments & Business Outlook
BEIJING, March 02, 2020 (GLOBE NEWSWIRE ) -- Uxin Limited (“Uxin” or the “Company”) (Nasdaq: UXIN), a leading national online used car dealer in China, today outlined the active measures it has taken to adapt its business and ensure business continuity in response to the evolving situation associated with the outbreak of COVID-19 in China.
The used car sector in China has been severely affected by the outbreak of COVID-19 with disruptions impacting industry infrastructure and several key points along the supply chain. Despite the impact, the used car industry is gradually recovering though it will take some time before operations return to normal. In order to contain the outbreak, local governments have required people to work remotely and refrain from going outside, which has created considerable barriers to buying used cars. At the same time, local vehicle registration and management bureaus have yet to resume full operations which has created bottlenecks for used car title transfers. Logistics and delivery of used cars has also been challenging as roads and highways in some regions remain closed to general traffic. This has significantly hindered the fulfillment of used car transactions.
Following the outbreak, Uxin has been carefully monitoring the situation and thoroughly analyzing the impact it will have on industry in order to adapt its business and ensure business continuity and long-term growth prospects. The Company has implemented a series of measures to ensure the safety and health of its staff and business, including enacting a temporary work-load based staffing program company-wide and allowing staff to work remotely, securing its cashflow and financial position, and upgrading its purely online products and services to gradually begin growing transaction volumes again. The measures are widely understood and supported by staff and have already brought operating expenses under careful control. With all the measures in place, the Company is also steadily pushing forward the closing of several ongoing transaction projects. Together with the management team and employees, the Company has revealed common persistence and solidarity when facing current challenges.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, commented, “We continue to closely monitor the outbreak and evaluate its impact on our business. The outbreak combined with a softening macro environment and challenging market conditions will put short-term pressure on our operations during the first quarter of 2020 and may also weigh on the second quarter to some extent. Regardless of the current situation which we believe will be temporary, the used car market in China continues to present enormous growth opportunities. Buying used cars online will be an unstoppable trend in the future. As a leading national online used car dealer in China, we are committed to innovating the way in which online used car transactions take place and enabling consumers to buy used cars online from a nationwide selection of inventory no matter where they live. Temporary challenges created by the outbreak have also created unprecedented opportunities for us to further expand our online used car transaction business. We believe used car transactions will rebound in the coming quarters as the effects of the outbreak fade, especially when we consider the suppressed demand for used cars that it has created. We are confident that we are ideally positioned to capture growth opportunities once the market rebounds by focusing entirely on upgrading our products and services to accommodate purely-online transactions. This will not only lay a solid foundation for our long-term growth, but also generate long-term value for our shareholders.”
Comments & Business Outlook
BEIJING, Jan. 16, 2020 (GLOBE NEWSWIRE ) -- Uxin Limited (“Uxin” or the “Company”) (UXIN), a leading national online used car dealer in China, today announced that it entered into definitive agreements with Beijing Hengtai Boche Auction Co. Ltd. ("Boche") to divest its salvage car related business operated under the brand “Fairlubo”. Pursuant to the definitive agreements, the Company will divest its salvage car auction business to Boche in exchange for an aggregate amount of RMB330 million in cash. The Company agrees not to engage in the salvage car auction business for a period of five years. The transactions contemplated under the definitive agreements are subject to certain closing conditions, and are currently expected to close in the first half of 2020.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “We are very happy to enter into the transaction with Boche. Fairlubo and Boche are two leading salvage car auction platforms in China, and the consolidation of their businesses will solidify their market leadership and help enhance the development of China’s overall salvage car sector. This divestiture will further streamline our business operations and allow us to further increase our focus on our 2C online used car transaction business. As the first mover in China to enable consumers to purchase used cars online, we have accumulated deep experience and knowhow throughout the entire service value chain. Going forward, enhancing customer service quality will continue to be our top priority. We are confident we will become consumers’ top destination for online used car purchases in China and we believe our focus on improving customer experience will eventually set us apart in the market.”
Comments & Business Outlook
Third Quarter 2019 Financial Results
Total revenueswere RMB461.4 million (US$65.2 million) in the third quarter of 2019, representing a year-over-year growth of 33.4%.
Non-GAAP adjusted net loss from continuing operationswas RMB268.4 million (US$37.9 million) in the third quarter of 2019, a decrease from RMB445.2 million in the same period last year. Non-GAAP adjusted net loss from continuing operations as a percentage of total revenues was 58.2% in the third quarter of 2019, a decrease from 128.7% in the same period last year.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “We are pleased to deliver a solid set of results for the third quarter with our total 2C revenue significantly increasing by 247% and non-GAAP adjusted net loss from continuing operations notably narrowing by 40% year-over-year. While transaction volume was relatively flat compared to the second quarter due to a short-term impact from the early adoption of new emission standard China Six in some cities, we recorded over 23,500 online used car transactions in the third quarter, achieving a 107% year-over-year increase. Moreover, our unique value propositions powered by our online products and services and our strong monetization ability enabled us to further increase the total 2C take rate from 11.2% in the second quarter to 11.6% in the third quarter, equivalent to per-unit revenue of approximately RMB14,000. Given that the used car sector typically shows resilience when it gradually digests the impact from policy changes as more used car inventory meeting the new emission standard becomes increasingly available on the market, we are confident that we will continue our strong growth trajectory for online transaction volume in the coming year-end peak season.”
Mr. Dai added, “As China’s leading online used car dealer, through our online virtual inventory system connecting over 20,000 used car suppliers across China, we are able to provide consumers with a wider selection of used cars and better prices by directly matching the diversified used car demand and nationwide supply in a highly efficient manner, no matter where the consumer lives or where the inventory is located. This, coupled with our one-stop online purchasing experience and high-quality professional customer services, has increasingly reinforced our value propositions that differentiate us in the market and strengthened our monetization ability. As we are committed to building the best destination for consumers to buy used cars online in China, we believe the growing traction from our target clientele will translate into expanded topline and improved margins over the long term.”
Mr. Zhen Zeng, Chief Financial Officer of Uxin, said, “In the third quarter, our total revenues increased by 33% year-over-year to RMB461 million, particularly driven by a 247% year-over-year growth of our 2C revenue. Our solid results were also marked by an improving margin profile as a result of our proactive and effective cost management. In particular, as we continued to enhance inspection-to-sales conversion and optimize logistics planning, gross margin further increased to 55% in the quarter from 46% in the prior-year period and 53% in the previous quarter. In addition, our non-GAAP adjusted net loss from continuing operations narrowed significantly by 40% year-over-year and 19% quarter-over-quarter to RMB268 million in the quarter, which is a strong testament to our efforts to further streamline our business operations and enhance efficiency. Looking ahead, prudent cost control and operating efficiency will continue to be one of our key focuses. We believe that our improving ability to monetize online used car transactions and continuing optimization in our operations and cost structure will position us well for driving topline growth, improving margins, and narrowing losses as the year concludes.”
Mr. Zeng added, “Looking forward, we are confident that our business is well supported by our current cash position. First, divesting the loan facilitation related business has significantly lowered our cash requirement. Second, we believe our losses will continue to narrow as a result of our ongoing efforts in cost control and enhancing operating efficiency. Third, pursuant to the definitive agreements we entered into with Golden Pacer, the working capital associated with the divested loan facilitation business we advanced to certain financing partners on behalf of Golden Pacer during the third quarter will be returned back to us in due course when the transaction is closed. Fourth, we expect to receive an aggregate cash consideration of US$100 million after the closing of the transaction. All of this will contribute to our cash position, and coupled with our continuous efforts to enhance our monetization ability and operating efficiency, we believe we can build a more sustainable and profitable business over the long run.”
Business Outlook
As the Company is focused on cost control and efficiency measures to build a more sustainable and profitable business in the long run, Uxin will also provide guidance on near-term operating profit expectations going forward. The Company expects non-GAAP adjusted loss from continuing operations to be in the range of RMB150 million to RMB170 million for the fourth quarter of 2019.
Comments & Business Outlook
BEIJING, Sept. 30, 2019 (GLOBE NEWSWIRE ) -- Uxin Limited (“Uxin” or the “Company”) (UXIN), a leading national online used car dealer in China, today announced it entered into definitive agreements with Golden Pacer, a leading financial technology platform in China, to divest its loan facilitation related business. Previously on July 12, 2019, the Company announced that it had entered into a binding term sheet with Golden Pacer relating to the divestiture.
Pursuant to the definitive agreements, the Company will divest its entire 2C intra-regional business to Golden Pacer, and cease to provide guarantee services in connection with its 2C cross-regional business (which is currently referred as “2C online used car transaction business”) going forward, and thus divest the corresponding assets and liabilities. In return, the Company will receive an aggregate of US$100 million cash from Golden Pacer and certain preferred shares of Golden Pacer representing approximately 18.4% of the share capital of Golden Pacer on a fully diluted basis. The Company will have the right to appoint one director on Golden Pacer’s board of directors. The transactions contemplated under the definitive agreements are subject to certain closing conditions, and are currently expected to close by the end of 2019.
The Company’s board of directors, acting upon the unanimous recommendation of its Audit Committee consisting of independent and disinterested directors, approved the definitive agreements and the transactions contemplated thereunder. The Audit Committee reviewed and considered the terms of the definitive agreements and the transactions with the assistance of its financial and legal advisors.
Comments & Business Outlook
Second Quarter 2019 Financial Results
Total revenues were RMB439.2 million (US$63.9 million) in the second quarter of 2019, representing year-over-year growth of 58.3%.
2C Revenue was RMB322.5 million (US$46.9 million) in the second quarter of 2019, representing year-over-year growth of 11 times.
2B Revenue was RMB68.4 million (US$9.9 million) in the second quarter of 2019, representing year-over-year decline of 57.5%.
Non-GAAP adjusted net loss from continuing operations as a percentage of total revenues was 75.8% in the second quarter of 2019, a decrease from 143.9% in the same period last year.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “We are pleased to report another set of strong results for the second quarter with total 2C revenue increasing by 11 times year-over-year. We continued to see robust momentum in our online used car transaction volume with a 500% year-over-year increase to over 24,500 used cars in the quarter. This not only reflects the growing traction of our one-stop online used-car-buying product and service offerings, but also demonstrates consumers’ increasing acceptance of buying used cars online from us without actually seeing the car in person when they make the purchase decision.”
Mr. Dai added, “The proposed transaction with Golden Pacer enables us to entirely concentrate on fulfilling online used car transactions. With our 2C business model evolving into a pure play and through our innovative used car supply chain, we are better positioned to capture the market opportunities brought by the accelerating trend of buying used cars online. As a national online used car dealer, we will further boost our four core values and competitive advantages for consumers. First, a nationwide selection of used cars, which allows us to make a much wider selection of qualified inventory available on our platform than what local markets can provide. Second, online standardization for unstandardized products, such as standardized video inspection reports and VR display for used cars, which creates higher transparency on car conditions and thus gives consumers greater peace of mind buying used cars online. Third, a one-stop online purchasing experience, which means we recommend value-added services to best meet consumers’ various needs. Last but not least, national service and fulfillment networks, which make online purchase of used cars as convenient as buying any other standardized product online. Looking ahead, as we continue to enhance our value proposition to consumers and further execute the strategy of concentrating on online used car transaction business, we believe we can further increase our market share and build a more sustainable business over the long term.”
Mr. Zhen Zeng, Chief Financial Officer of Uxin, said, “With the financial impact of the proposed transaction reflected in our second quarter results, we are particularly glad to report that our 2C business maintained strong growth on an apple-to-apple basis. Thanks to our control of the entire shopping process and our comprehensive product and service offerings, we were able to maintain our strong ability to monetize online used car transactions and recorded a total 2C take rate of 11.2% per unit, equivalent to per-unit revenue of over RMB13,000, in the quarter. We are confident that we can build up the scale in the top-line on a more solid and sustainable basis as we fully focus on expanding our 2C online used car transaction business. Thanks to greater economies of scale, our gross margin improved to 53% from 42% in the same period last year. Despite the temporary impact of the proposed divestiture, we believe our gross margin will further improve over time as we continue to optimize cost structure and achieve better economies of scale. In terms of operating expenses, we have streamlined business operations to improve employee productivity. As we continue to take prudent measures in cost and expense management, we believe our fast-growing online used car transaction volume will bring us greater economies of scale and higher operating leverage. Combined with our more-focused business model and aligned operations and all the measures in place and being executed, we are confident that we will be able to achieve profitability as soon as possible in the coming years.”
Business Outlook
Deal Flow
BEIJING, July 12, 2019 (GLOBE NEWSWIRE ) -- Uxin Limited (“Uxin” or the “Company”) (UXIN), the largest used car e-commerce platform in China, today announced that it has entered into convertible note purchase agreements with PacificBridge Asset Management (“PacificBridge”), pursuant to which Uxin will issue and sell convertible notes in an aggregate principal amount of US$50 million to investment funds managed by PacificBridge through a private placement. The private placement is subject to multiple closings with certain customary closing conditions and is expected to be fully completed in the second half of 2019.
The convertible notes will mature in 12 months or 15 months, bearing interest at the rates of 10% or 11% per annum from the issuance date, respectively, depending on the maturity date. Each note will be convertible into Class A ordinary shares of the Company at a conversion price of US$1.663 per share (equivalent to US$4.989 per ADS) at the holder’s option after a 180-day period after the issuance.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “We are pleased to welcome PacificBridge as our new investor. This new private placement will bolster our initiatives to optimize the online used car purchasing experience and better position us to extend our leadership in China’s used car e-commerce sector. As we continue to refine our platform and make our full suite of product and service offerings – from standardized inspections, online inventory, nationwide offline service and fulfillment network, to comprehensive aftersales services – available to more consumers across multiple city tiers in China, we are confident that Uxin will increasingly be recognized as the ‘go-to’ platform to buy used cars online.”
Joint Venture
BEIJING, China, July 12, 2019 (GLOBE NEWSWIRE ) -- Uxin Limited (“Uxin” or the “Company”) (UXIN), the largest used car e-commerce platform in China, today announced that it has entered into a binding term sheet with Golden Pacer, a leading financial technology platform in China. Pursuant to the term sheet, Uxin will divest its loan facilitation related business to Golden Pacer in exchange for an aggregate of US$100 million cash and a certain number of shares of Golden Pacer. In addition, Uxin and Golden Pacer will also enter into a series of business cooperation arrangements. After the divestiture and through the business cooperation, Uxin will provide inspection and valuation services to Golden Pacer’s used car financing transactions, and Golden Pacer will provide certain loan facilitation services for Uxin’s online used car transactions, including providing a guarantee in the event of default. Uxin and Golden Pacer will work together with third-party financing partners to achieve that Uxin will no longer bear any guarantee liabilities or credit risks for used car loans facilitated after the transaction.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “Going online to purchase used cars is an unstoppable trend in China’s used car market, where we see tremendous growth potential in the coming years. With our ground-breaking cross-regional transaction services, we have already made buying used cars online a reality. Going forward, facilitating online used car transactions will continue to be our primary focus. By maintaining the high growth of transaction volume and continuing to optimize cost structure and operational efficiency, we are confident that we are on track to achieving profitability.”
Mr. Dai added, “After the divestiture and through the business cooperation with Golden Pacer, we will be able to focus all of our resources on online used car transactions, which embody the key nature of used car e-commerce, and continuously optimize our product and service offerings, improve professional standards, and enhance the used car purchasing experience for consumers. At the same time, consumers will continue to enjoy high-quality financing services from a dedicated financing solution provider through the divestiture and our business cooperation with Golden Pacer.”
The parties expect to enter into definitive transaction agreements and close the transaction as soon as practicable in the second half of 2019. The execution of the definitive transaction agreements and the closing of the transaction are subject to certain approvals and conditions.
Comments & Business Outlook
First Quarter 2019 Financial Results
Total revenues were RMB1,003.9 million (US$149.1 million) in the first quarter of 2019, representing year-over-year growth of 54.6%.
Non-GAAP adjusted net loss was RMB231.3 million (US$34.3 million) in the first quarter of 2019, compared to RMB478.0 million in the same period last year. Non-GAAP adjusted net loss as a percentage of total revenues was 23.0% in the first quarter of 2019, a decrease from 73.6% in the same period last year.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “We are excited to start the year by delivering another strong quarter of growth with total revenues exceeding the high end of our guidance. More encouragingly, our 2C cross-regional business continued the robust growth momentum from the peak season in the fourth quarter, and recorded transaction volume of over 20,000 used cars in the first quarter, an increase of almost 50 times from the same period last year. The cross-regional business is playing an increasingly integral role in driving the overall growth of our 2C business and, in the first quarter of 2019, cross-regional transactions contributed 26% of total 2C transaction volume and 32% of total 2C revenues, with both percentages being only 1% in the same period last year.”
Mr. Dai added, “Over the past several years, we have continuously evolved Uxin’s business model to better meet consumer demand and have experienced rapid growth in both transaction volume and revenues. As we continue to expand our business, we will increase our focus on achieving more sustainable growth by implementing the following three initiatives. First, we will continue shifting our resources to the cross-regional business, where we see great market opportunities. In addition to targeting this significant growth potential, our strategic focus on cross-regional transactions will enable us to generate greater revenue and take us one step closer to profitability. Second, we will continue to improve our operational efficiency by taking a more rigorous approach to cost control and expense management. Third, we will adopt more stringent risk-control procedures and concentrate our resources on used car assets with better risk profiles. This will ensure that we build an even stronger foundation and improve cashflow. With our commitment to executing these strategic initiatives and continuing to enhance our value proposition, we are confident that we can extend our market leadership in China’s used car e-commerce sector and build a sustainable business over the long term.”
Mr. Zhen Zeng, Chief Financial Officer of Uxin, said, “We are pleased to see another quarter of rapid growth in our 2C business with the corresponding revenue increasing by 94% to RMB883 million in the first quarter. The growth of our cross-regional business far outpaced the overall 2C business, with related revenue increasing by 54 times year-over-year to RMB284 million. Moreover, benefiting from greater economies of scale and more effective cost control, gross margin improved to 70% from 66% in the same period a year ago. In addition, we continued to gain operating leverage during the quarter, which enabled us to cut adjusted net loss by over 50% year-over-year to RMB231 million, and significantly reduce adjusted net loss as a percentage of total revenues to 23% from 74% in the same period last year. Looking ahead, we will take more prudent measures to control costs and manage expenses, maximize the impact of every dollar we spend and continue to optimize operational efficiency. We are confident that this will drive sustainable growth, better position us to achieve profitability and create long-term value for our shareholders.”
Business Outlook
Taking into account the effects of these measures, Uxin expects total revenues for the second quarter of 2019 to be in the range of RMB900 million to RMB950 million. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.
1 M3+ delinquency rate is defined as the outstanding principal balance of used car loans that were 90 or more calendar days past due as a percentage of the sum of total outstanding principal balance of the used car loans facilitated through the Company’s 2C business (including the principal of loans it paid financing partners under its guarantee to financing partners) as of a specific date.
Comments & Business Outlook
BEIJING, May 28, 2019 /PRNewswire / -- 58.com Inc. (NYSE: WUBA) ("58.com" or the "Company"), China's largest online market place for classifieds, today announced that it, together with Warburg Pincus, TPG and certain other investors, entered into definitive agreements with Uxin Limited ("Uxin") (Nasdaq: UXIN), a leading used car e-commerce platform in China, pursuant to which 58.com will purchase convertible notes issued by Uxin for a principal amount of US$100 million (out of a total aggregate amount of US$230 million from all co-investors) through a private placement. The convertible notes will bear interest at a rate of 3.75% per annum from the issuance date and mature in five years thereafter. Each note will be convertible into Class A ordinary shares of Uxin at a conversion price of US$1.03 per share (equal to US$3.09 per ADS), subject to certain adjustments, at the holder's option after a 180-day period.
The transaction is subject to customary closing conditions and is expected to close by June 2019. Upon closing, 58.com will have the right to nominate one director to Uxin's board of directors and will strategically cooperate with Uxin to optimize and strengthen traffic and inventory acquisition, used-car inspections, big data analysis and SaaS development.
Mr. Michael Yao, Chairman and Chief Executive Officer of 58.com, commented "We see enormous growth potential in China's used car market and believe that the volume of used-car transactions will overtake that of new cars in the years ahead. The user experience for selling and buying used cars locally or across regions in China is evolving and improving through continued innovation and investment. 58 Used Car, a leading online used car platform for consumers and businesses that is part of our multi-content category classifieds platform, will benefit from Uxin's tremendous offline transaction-related expertise. Uxin's cross-regional transaction business has been generating strong growth momentum over the last several quarters. We believe this investment will create strong synergies for both companies and help optimize and strengthen traffic and inventory acquisition, used-car inspections, big data analysis and SaaS development. By jointly integrating our online and offline services, we will be ideally positioned to significantly enhance the user experience for purchasing used cars and drive greater efficiency in this growing market."
Deal Flow
BEIJING, China, May 29, 2019 (GLOBE NEWSWIRE ) -- Uxin Limited (“Uxin” or the “Company”) (UXIN), the largest used car e-commerce platform in China, today announced that it has entered into a convertible note purchase agreement with affiliates of 58.com, Warburg Pincus, TPG and certain other investors, pursuant to which Uxin will issue and sell convertible notes in an aggregate principal amount of US$230 million to the investors through a private placement. The private placement is subject to customary closing conditions and is expected to close by June 2019.
The convertible notes will bear interest at a rate of 3.75% per annum from the issuance date and mature in five years. Each note will be convertible into Class A ordinary shares of the Company at a conversion price of US$1.03 per share (equivalent to US$3.09 per ADS) at the holder’s option after a 180-day period. Upon closing of the transaction, each of 58.com, Warburg Pincus and TPG will have the right to nominate one director to the Company’s board of directors, and the Company and 58.com will enter into strategic cooperation in the areas including traffic and inventory acquisition, used-car inspections, big data analysis and SaaS.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “We are very pleased to welcome 58.com as our new strategic investor, and receive continued support from our pre-IPO investors who value Uxin’s long-term strategy and growth. We will also form an in-depth strategic partnership with 58.com, particularly in the areas of traffic and inventory acquisition, used-car inspections, big data analysis and SaaS.”
Mr. Michael Yao, Chairman and Chief Executive Officer of 58.com, commented “We see enormous growth potential in China’s used car market and believe that the volume of used-car transactions will overtake that of new cars in the years ahead. The user experience for selling and buying used cars locally or across regions in China is evolving and improving through continued innovation and investment. 58 Used Car, a leading online used car platform for consumers and businesses that is part of our multi-content category classifieds platform, will benefit from Uxin’s tremendous offline transaction-related expertise. Uxin’s cross-regional transaction business has been generating strong growth momentum over the last several quarters. We believe this investment will create strong synergies for both companies and help optimize and strengthen traffic and inventory acquisition, used-car inspections, big data analysis and SaaS development. By jointly integrating our online and offline services, we will be ideally positioned to significantly enhance the user experience for purchasing used cars and drive greater efficiency in this growing market.”
Mr. Julian Cheng, Managing Director, Co-head of China at Warburg Pincus, said, “There is huge potential in China’s used car sector. As a leading player, Uxin has been a pioneer in digitizing the used car industry through its revolutionary business model. Warburg Pincus will continue to support Uxin’s growth strategy, as we remain confident in the company’s vision and capability to create long-term value.”
Mr. Chang Sun, Managing Partner of TPG China, said, “We are very pleased to participate in this round of financing for Uxin and continue to support the development of its innovative cross-regional business. We believe Uxin will increase its market share and further expand its leadership in China’s used car market through its highly efficient one-stop service model.”
Mr. Dai added, “With this new funding, we will continue to enhance our ability to carry out cross-regional used car transactions, empowered by our industry-leading super supply chain. Looking ahead, with our full suite of service offerings from standardized inspections, online inventory display, nationwide offline service and fulfillment network, to our comprehensive aftersales services, we are confident that we will further solidify our leadership position in China’s used car e-commerce sector.”
Comments & Business Outlook
Fourth Quarter 2018 Financial Results
Total revenues in the fourth quarter were RMB1,136.7 million (US$165.6 million), representing year-on-year growth of 61.6%.
Non-GAAP adjusted net loss in the fourth quarter was RMB242.2 million (US$35.3 million), compared to RMB488.7 million in the same period last year. Non-GAAP adjusted net loss as a percentage of total revenues was 21.3% in the fourth quarter of 2018, decreased from 69.5% in the same period last year.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “We are pleased to end the year with another set of strong results, with total revenues in the fourth quarter exceeding the high-end of previous guidance. We continued to attract consumers through Uxin’s unique value proposition of a broad selection of used cars, digital transparency and a one-stop solution. We facilitated over 160,000 used car transactions on our 2C platform in the fourth quarter, representing a year-on-year increase of 93.6%. More importantly, we experienced an exponential growth in cross-regional transactions, with transaction volume exceeding 10,000 used cars in December alone, and over 22,000 in the fourth quarter. This reflects the revolutionary impact of our business model on China’s used car supply chain, as well as growing appreciation of Uxin’s brand and services.”
Mr. Dai added, “Looking into 2019, we will continue to increase our focus on the 2C business. From a commercial perspective, we see much greater growth potential in the 2C business, especially in terms of cross-regional transactions. We have identified a number of strategic initiatives to strengthen our capabilities on this front. For example, we will adopt a franchise model to complement our self-operated service centers, in order to better penetrate lower-tier cities and expand coverage of our offline network. Regarding our 2B business, while it may decline as a proportion of total revenues as a result of our strategic shift to the 2C business, it will continue to serve as an important arm of our group, as it enables us to strengthen our relationships with dealers and enhance the stickiness to our platform, thus facilitating the growth of our 2C business. As we implement these initiatives and continue to enhance our value proposition, we are confident that we will solidify our position as China’s largest used car e-commerce platform.”
Mr. Zhen Zeng, Chief Financial Officer of Uxin, said, “Our strong execution across all business lines helped us conclude the year on a strong footing. Total revenues increased by 61.6% year-on-year to RMB1.1 billion in the fourth quarter, primarily driven by the robust growth of our 2C business, which increased by 118.3% year-on-year. We also expanded our gross margin to 68.9% in the fourth quarter from 64.9% in the same period last year, reflecting the ongoing optimization of our business model and effective cost control measures. Moreover, we continued to gain operating leverage during the fourth quarter as we benefited from greater scale and operating efficiency. In particular, we made strong progress optimizing sales and marketing with related expenses declining to 60.6% as a percentage of revenues in the fourth quarter, compared to 87.5% in the prior quarter, and 98.7% in the same period last year. Going forward, we will continue to focus on driving the growth of our 2C business while increasing operating efficiency to build a sustainable business and generate long-term value for our shareholders.”
Business Outlook
For the first quarter of 2019, Uxin expects total revenues to be in the range of RMB900 million to RMB950 million. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.
Joint Venture
HANGZHOU, China, Dec. 06, 2018 (GLOBE NEWSWIRE ) -- Uxin Limited (“Uxin” or the “Company”) (Nasdaq: UXIN), the largest used car e-commerce platform in China, and Taobao, China’s massive and fast-growing consumer community, operated by Alibaba Group Holding Limited (“Alibaba Group”) (NYSE: BABA), entered into a strategic partnership to foster further growth and expand service opportunities for used car e-commerce in China. The two companies will collaborate in the areas of B2C and B2B used car transactions, integrated supply chain, and used car loan facilitation, to bring innovative online used car purchasing services to consumers across China.
Under the terms of the agreement, Uxin and Taobao will jointly establish an online used car shopping mall on Taobao Marketplace. At the initial stage, the two companies will provide a full suite of used car product and service offerings ranging from intelligent listing, displaying and matching, to one-stop transaction solutions. For example, in addition to the standard inspection report that evaluates 315 check points of a used car listing, the two companies will also provide videos and VR car viewing experience so that consumers can gain a comprehensive understanding of the car’s condition. With Uxin’s more than 290,000 used car selection on its platform and cross-regional transaction facilitation capabilities, Taobao users will now be able to purchase used cars from anywhere in China, anytime. Users will also be able to enjoy a full range of financing and post-transaction services, with superior consumer protection policies provided by both Taobao and Uxin.
Through this partnership, Uxin will further extend its leadership by integrating its nationwide supply chain of cross-regional transaction services and infrastructure with Taobao’s platform. The two companies also intend to collaborate on the enhancement of advanced data analysis in areas including intelligent used car recommendation and user behavior analysis, as more used car transactions are facilitated on Taobao. With Alibaba’s strong data and credit expertise, this partnership could also provide Uxin with abundant opportunities for further collaboration in used car loan facilitation, such as enhancing risk profiling and management capabilities.
“As China’s largest used car e-commerce platform which pioneers in facilitating cross-regional transactions, Uxin’s platform shares many similarities with Taobao, which presents many areas for potential synergies,” said Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin. “We are honored to work with Taobao to provide Chinese consumers with integrated used car transaction services.”
“Over the past few years, consumers have become increasingly receptive to buying used cars as a cost-effective alternative to new vehicles. This is particularly the case for consumers in lower-tier cities. With extremely limited used car selection in most cities, there is rapidly growing demand for an online platform that expands access to used cars from across the country. By combining Uxin’s unique ability to support cross-regional used car transactions with Taobao’s massive e-commerce traffic and superior data capabilities, we are confident that we can take the used car purchasing experience to the next level,” added Kun Dai.
“We are excited to cooperate with Uxin to explore new retail opportunities in the used car vertical,” said Fan Jiang, President of Taobao. “With unparalleled understanding and expertise in China’s used car industry, Uxin has transformed the used car supply chain over the past seven years. By effectively tackling challenges throughout the used car transaction value chain, such as providing a wide selection of high-quality used cars, standardized used car inspections, value-added services and used car logistics, Uxin has created a close loop of efficient and professional used car transaction services. We are confident that Uxin will become an integral part of Alibaba’s ecosystem. Through the combination of Uxin’s nationwide supply chain and Alibaba’s massive traffic, our partnership will bring significant benefits to both used car consumers and business customers.”
Comments & Business Outlook
Third Quarter 2018 Financial Results
Total revenues were RMB863.7 million (US$125.5 million), representing year-on-year growth of 59.6%.
Non-GAAP adjusted net loss was RMB517.0 million (US$75.2 million), compared to RMB390.4 million in the same period last year. Non-GAAP adjusted net loss as a percentage of total revenues was 59.9% in the third quarter of 2018, decreased from 72.1% in the same period last year. Non-GAAP adjusted net loss primarily excludes the impact of fair value change of derivative liabilities and share-based compensation.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “We are pleased to report another strong performance for the third quarter of 2018. Our relentless focus on providing a broad selection of cars, digital transparency and a one-stop solution continued to translate into outstanding user experience and growing demand for our services from both consumers and dealers.”
Mr. Dai added, “Our marketplace approach and nationwide service network enabled us to make more than 290,000 cars available to consumers on the Uxin platform as of September 30, 2018. Our unique ability to facilitate cross-regional transactions is creating an unprecedented selection of used cars for consumers. In addition, the Uxin platform optimizes prices for consumers by driving transaction efficiency and mitigating information asymmetry. With our determination to enhance value propositions for our users, we believe we can expand our market leadership in China’s underserved used car market.”
Mr. Zhen Zeng, Chief Financial Officer of Uxin, said, “We achieved robust revenue growth in the third quarter of 2018, driven by 108.7% year-on-year growth of our 2C business. In addition, we continued to improve operating efficiency, particularly in our sales and marketing efforts. With Uxin’s growing brand awareness and higher conversion rate, our sales and marketing expenses as a percentage of total revenues decreased to 87.5%, compared to 100.0% in the same period last year and 91.6% in the second quarter of 2018. Looking forward, we are confident that our focus on growing our 2C platform and improving operating efficiency will enable us to build a sustainable business over the long term.”
Business Outlook
For the fourth quarter of 2018, Uxin expects total revenues to be in the range of RMB1.02 billion to RMB1.06 billion. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.
Comments & Business Outlook
BEIJING, Sept. 12, 2018 (GLOBE NEWSWIRE ) -- Uxin Limited (“Uxin” or the “Company”) (UXIN), the largest used car e-commerce platform in China, today announced that it has introduced significant upgrades to its warranty program for Uxin Certified vehicles. The enhanced coverage gives greater confidence to consumers that purchase eligible used vehicles on Uxin’s market leading 2C platform.
Every vehicle on Uxin’s platform is vetted through a more than 300-point vehicle inspection program, which provides an accurate assessment of the vehicle’s condition. Vehicles that have not been involved in major accidents and meet Uxin’s stringent quality standards receive the Uxin Certified accreditation and the industry-leading warranty.
“Buying a used car comes down to a matter of trust, and Uxin is committed to leveraging technology to bridge the trust gap between consumers and dealers,” said Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin. “This enhanced warranty directly addresses this challenge and gives consumers peace of mind and the confidence to buy used vehicles on our platform.”
“With our proprietary car inspection technology and industry-leading warranty program, we continue to optimize consumers’ used car buying experience and minimize transaction friction. These transformative initiatives are bringing used car e-commerce to even more consumers as well as stimulating the growth of the entire used car industry. We will continue to leverage our digital and AI capabilities to bring more innovative products and services to market and solve the pain points that are key to unlocking growth potential,” added Mr. Dai.
The enhanced warranty program offers industry-leading coverage for buyers of Uxin Certified used vehicles on Uxin’s 2C platform. The key features of the enhanced warranty program include:
Warranty scope has been expanded to cover 15 major components of the car. In addition to previously covered items such as the engine and the gear box, the new warranty also covers the differential system, the transfer case system, the lubrication system, the electronic control system and the safety system.
Comments & Business Outlook
Second Quarter of 2018 Financial Results
Total revenues for the second quarter of 2018 increased by 79.6% to RMB665.7 million (US$100.6 million) from RMB370.7 million in the same period last year, primarily due to the increases in transaction volume, amount of loans facilitated and take rate2.
Non-GAAP adjusted net loss, which excludes the impact of share-based compensation of RMB900.4 million, comprised of expenses of RMB274.7 million recognized from the options granted to management and employees, the issuance of restricted shares of RMB620.4 million, the reclassification and re-designation of class A and class B ordinary shares of RMB5.3 million, and fair value change of derivative liabilities in the amount of RMB1,544.2 million, was RMB434.1 million (US$65.6 million), compared to RMB386.7 million in the same period last year.
Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, said, “We are pleased to report a strong performance for our first quarter as a public company. Our innovative integrated online and offline business model, superior transaction experience, proprietary technology, and big data insights continued to enhance the value propositions to our users and drive robust demand for our services.”
Mr. Dai added, “As we continue to improve user experience and optimize our operating efficiency, we will implement a series of strategic measures in the second half of 2018. We will continue to invest in cutting-edge technology, such as virtual reality-enabled functions, which we believe will provide our users with more transparency and a better online used car shopping experience. Separately, we historically provided inspection and other complementary services that enabled consumers to sell used cars through our 2B business. Starting in the second half of 2018, we will take an alternative approach that connects these consumers with quality dealers on our platform without us providing inspection and other services directly. Due to this change to our service approach, we will no longer record the corresponding GMV, which has historically made an immaterial contribution to our overall business. Our B2B auction business remains unchanged. The e-commerce market for used cars is still in its infancy in China. We are excited about the tremendous opportunities ahead, and we will continue to optimize our model and provide more value-added services to our users.”
Mr. Michael Zeng, Chief Financial Officer of Uxin, said, “Strong growth in the volume of transactions and amount of loans facilitated drove robust top-line growth during the second quarter, as more users were attracted to Uxin’s e-commerce platform. We also continued to see operating leverage given the larger scale and improved efficiency. Looking ahead, with the capital raised through our recent IPO, we are well positioned to invest in our network, technology and user experience and cement our position as the leading player in China’s used car e-commerce industry.”
Business Outlook
For the third quarter of 2018, Uxin expects total revenues to be in the range of RMB810 million to RMB850 million. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.
Research
China IPO - Uxin Limited (NASDAQ:UXIN) , a leading online used-car marketplace in China, priced its IPO at $9.00, which is below its previous expected range between $10.5 and $12.5. The IPO is raising an aggregate of $225 million. At first glance, the company is losing a substantial amount of money. It will begin trading today under the symbol UXIN.
Notable Share Transactions
BEIJING, June 27, 2018 (GLOBE NEWSWIRE) -- Uxin Limited ("Uxin" or the "Company"), the largest used car e-commerce platform in China, today announced the pricing of its initial public offering ("IPO") of 25 million American depositary shares ("ADSs"), each representing three ordinary shares, at a price to the public of $9 per ADS. Concurrent with the private placement of $175 million of convertible bonds, the total amount raised is $400 million, assuming the underwriters do not exercise their option to purchase additional ADSs. Uxin has granted the underwriters a 30-day option to purchase up to an additional 3.75 million ADSs to cover over-allotments.
The ADSs are expected to begin trading on the NASDAQ Stock Market on June 27, 2018 under the ticker symbol "UXIN." The offering is expected to close on July 2, 2018, subject to customary closing conditions.
Morgan Stanley & Co. International plc, Goldman Sachs (Asia) L.L.C., J.P. Morgan Securities LLC, China International Capital Corporation Hong Kong Securities Limited, and China Renaissance Securities (Hong Kong) Limited are acting as joint book-running managers of this offering and as the representatives of the underwriters.
The offering of the securities is being made only by means of a prospectus forming a part of the effective registration statement. When available, copies of the final prospectus related to this offering may be obtained from any of the following sources:
Morgan Stanley & Co. International plc: 180 Varick Street, New York, NY, 10014, Room 214, 2nd Floor
