Uxin Limited (“Uxin” or the “Company”) (Nasdaq: UXIN), a leading
e-commerce platform for buying and selling used cars in China,
today announced its unaudited financial results for the third
quarter ended December 31, 2022.
Highlights for the Quarter Ended
December 31, 2022
- Total revenues
were RMB470.5 million (US$68.2 million) for the three months ended
December 31, 2022, a decrease of 24.0% from RMB618.8 million in the
last quarter and a decrease of 7.1% from RMB506.6 million in the
same period last year.
- Transaction volume
was 4,897 units for the three months ended December 31, 2022, a
decrease of 19.1% from 6,050 units in the last quarter and an
increase of 0.7% from 4,865 units in the same period last
year.
- Retail transaction
volume was 2,928 units, a decrease of 5.8% from 3,109
units in the last quarter and an increase of 76.7% from 1,657 units
in the same period last year.
- Gross margin was
0.6% for the three months ended December 31, 2022, compared with
1.3% in the last quarter and 4.1% in the same period last
year.
- Loss from
operations was RMB96.5 million (US$14.0 million) for the
three months ended December 31, 2022, compared with RMB106.4
million in the last quarter and RMB72.8 million in the same period
last year.
- Non-GAAP adjusted loss from
operations was RMB85.6 million (US$12.4 million) for the
three months ended December 31, 2022, compared with RMB92.4 million
in the last quarter and RMB68.6 million in the same period last
year.
Mr. Kun Dai, Founder, Chairman and Chief
Executive Officer of Uxin, commented, “During the third quarter of
fiscal year 2023, which ended on December 31, 2022, we successfully
navigated a challenging operating environment characterized by
fluctuating COVID policies in China that heavily impacted the used
car market. Despite these challenges, we achieved a remarkable
76.7% year-over-year increase in retail sales, with 2,928 units
sold. Our Net Promoter Score also remained strong at 60, marking
the fourth consecutive quarter that we have received the highest
level of customer satisfaction in the industry. This further
underscores our solid reputation and growing brand recognition
among consumers, as we continue to enhance our customer service
capabilities. Notably, in December 2022, we completed the upgrade
and transformation of our Xi'an superstore. The new Xi’an
superstore will further contribute to our sales growth as our
inventory levels ramp up.”
Mr. Dai continued, “Following the swift easing
of COVID restrictions, we have observed a recovering economic
environment and an increase in consumer confidence in China.
Despite significant price volatility in the Chinese auto market
during the first three months of 2023, our sales efficiency
continued to improve, driven by our prudent pricing strategies and
well-acknowledged brand reputation. Our used car business has been
rigorously tested in harsh environments. As the market stabilizes
in April 2023, and our inventory as well as sales ramp up, we are
confident in achieving profitability on a single-store basis by the
end of the calendar year.”
Mr. Feng Lin, Chief Financial Officer of Uxin,
said: “Despite the volatile macro and market conditions, we
remained committed to prudent financial strategies that support
high-quality business growth. Over the past quarters, we have
dedicated massive efforts towards optimizing the unit economics of
our business. In addition to optimizing our inventory structure and
improving revenue streams, we also continued refining our business
and operation processes. As a result, we have significantly
lowered our costs per vehicle, laying a solid foundation for
achieving single-store profitability in the calendar year of 2023.
Furthermore, we have received the investment funds from our
investor as planned and have fully discharged all remaining debts
under the convertible notes. This will significantly improve our
balance sheet, allowing us to maintain a healthy financial
structure and focus our resources on future business development
opportunities.”
Financial Results for the Quarter Ended
December 31, 2022Total revenues were
RMB470.5 million (US$68.2 million) for the three months ended
December 31, 2022, a decrease of 24.0% from RMB618.8 million in the
last quarter and a decrease of 7.1% from RMB506.6 million in the
same period last year. The quarter-over-quarter decreases were
driven by the decline of total transaction volume due to the
nationwide COVID-19 pandemic resurgence during this quarter. The
year-over-year decreases were mainly due to decreased wholesale
vehicle sales revenue, partially offset by increased retail vehicle
sales revenue.
Retail vehicle sales revenue
was RMB328.9 million (US$47.7 million) for the three months ended
December 31, 2022, representing a decrease of 11.6% from RMB371.9
million in the last quarter and an increase of 41.2% from RMB233.0
million in the same period last year. For the three months ended
December 31, 2022, retail transaction volume was 2,928 units, a
decrease of 5.8% from 3,109 units last quarter and an increase of
76.7% from 1,657 units in the same period last year. The
quarter-over-quarter decreases were mainly driven by the decline of
retail transaction volume due to the nationwide COVID-19 pandemic
resurgence during this quarter. The year-over-year increases were
driven by the retail transaction volume growth as the Company
further improved its brand image by continuously increasing
word-of-mouth marketing through its Hefei and Xi’an IRCs, which
expanded Uxin’s customer base and boosted retail vehicle sales.
Wholesale vehicle sales revenue
was RMB132.1 million (US$19.1 million) for the three months ended
December 31, 2022, a decrease of 44.5% from RMB237.8 million in the
last quarter and a decrease of 50.3% from RMB265.9 million in the
same period last year. For the three months ended December 31,
2022, wholesale transaction volume was 1,969 units, representing a
decrease of 33.0% from 2,941 units last quarter and a decrease of
38.6% from 3,208 units in the same period last year. Wholesale
vehicle sales refer to vehicles purchased by the Company from
individuals that do not meet the Company’s retail standards and are
subsequently sold through online and offline channels. However,
with the Company's ongoing efforts to enhance inventory capacity
and reconditioning capabilities, an increasing number of acquired
vehicles are being reconditioned to meet retail standards, rather
than being sold through wholesale channels.
Other revenue was RMB9.5
million (US$1.4 million) for the three months ended December 31,
2022, compared with RMB9.1 million in the last quarter and RMB7.7
million in the same period last year.
Cost of revenues was RMB467.7
million (US$67.8 million) for the three months ended December 31,
2022, compared with RMB610.7 million in the last quarter and
RMB485.8 million in the same period last year.
Gross margin was 0.6% for the
three months ended December 31, 2022, compared with 1.3% in the
last quarter and 4.1% in the same period last year. In order to
better address dynamic customer preferences and improve inventory
turnover, the Company has continuously re-assessed its pricing
strategies to accelerate the sales of vehicles with a long sales
cycle caused by the COVID-induced disruptions. These efforts
resulted in lower of cost or market reserve adjustments which
decreased gross margin percentage from the comparable prior year
period.
Total operating expenses were
RMB103.8 million (US$15.1 million) for the three months ended
December 31, 2022. Total operating expenses excluding the impact of
share-based compensation were RMB92.8 million.
- Sales and marketing
expenses were RMB55.0 million (US$8.0 million) for the
three months ended December 31, 2022, a decrease of 14.4% from
RMB64.2 million in the last quarter and a decrease of 19.2% from
RMB68.0 million in the same period last year. The decreases were
mainly driven by the adoption of more cost-effective promotion
measures due to the COVID-19 pandemic.
- General and administrative
expenses were RMB39.0 million (US$5.7 million) for the
three months ended December 31, 2022, representing a decrease of
6.3% from RMB41.6 million in the last quarter and an increase of
5.3% from RMB37.0 million in the same period last year. The
quarter-over-quarter decrease as well as year-over-year increase
were mainly due to the impact of share-based compensation
expenses.
- Research and development
expenses were RMB9.4 million (US$1.4 million) for the
three months ended December 31, 2022, representing a decrease of
5.5% from RMB10.0 million in the last quarter and a decrease of
16.3% from RMB11.3 million in the same period last
year.
- Loss from
operations was RMB96.5 million (US$14.0 million) in the
three months ended December 31, 2022, compared with RMB106.4
million in the last quarter and RMB 72.8 million in the same period
last year.
Non-GAAP adjusted loss from
operations which excludes the impact of share-based
compensation was RMB85.6 million (US$12.4 million) in the three
months ended December 31, 2022, compared with RMB92.4 million in
the last quarter and RMB68.6 million in the same period last
year.
Fair value impact related to the senior
convertible preferred shares resulted in a gain of RMB1.5
million (US$0.2 million) for the three months ended December 31,
2022, compared with a loss of RMB11.5 million in the last quarter.
The impact was mainly due to the fair value change of the warrants
issued in relation to the senior convertible preferred shares
during the period. The fair value impact was a non-cash gain.
Net (loss)/income from
operations was net loss of RMB100.8 million (US$14.6
million) for the three months ended December 31, 2022, compared
with net loss of RMB116.5 million for the last quarter and net
income of RMB1,279.7 million for the same period last year.
Non-GAAP adjusted net loss from
operations was RMB91.4 million (US$13.2 million) for the
three months ended December 31, 2022, compared with RMB91.1 million
in the last quarter and RMB80.3 million in the same period last
year.
LiquidityThe Company has been
incurring losses from operations since inception. The Company
incurred losses from operations of RMB96.5 million (US$14.0
million) in three months ended December 31, 2022. Net current
liabilities amounted to RMB310.7 million (US$45.1 million) as of
December 31, 2022.
Given these financial results, the Company has
taken actions to improve its liquidity and cash position. A
definitive agreement was entered into among the Company, NIO
Capital and Joy Capital in January 2023 to extend the expiration
date of certain warrants from January 12, 2023 to January 12, 2024,
which entitled the warrants holders to subscribe to the Company’s
convertible preferred shares of up to US$165 million. In March
2023, the Company also entered into inventory-pledged financing
agreements with two reputable banks in the PRC with an aggregate
facility amount of RMB250 million, pursuant to which the banks will
finance the Company’s future purchases of used car inventories
within the facility amount. Furthermore, the Company obtained a
working capital facility of RMB50 million from China Merchants Bank
(“CMB”) on November 7, 2022, of which RMB20 million had been drawn
down in November 2022 whereas the remaining RMB30 million can be
utilized upon the Company’s request within 1 year from the date of
the facility agreement. The Company is also entitled to an
investment amount of US$100 million from NIO Capital for NIO
Capital’s subscription of the Company’s senior convertible
preferred shares, out of which US$18.4 million had been received by
March 31, 2023. In April 2023, the Company and NIO Capital entered
into additional agreements regarding the outstanding purchase
price. To date, NIO Capital has fulfilled its obligation in an
aggregate amount of US$80 million of the outstanding purchase price
and the Company is expected to receive the remaining US$20 million
balance no later than June 30, 2023, as originally scheduled.
Meanwhile, the Company also fulfilled all of its obligations under
long-term debts of US$61.6 million, including a current portion of
US$23.1 million and a non-current portion of US$38.5 million. With
such optimized capital structure in place, the Company continues
actively seeking for new external financing plans to further
improve its liquidity. In addition, the Company continues to
optimize its cost and expense structure to improve the capital
efficiency of its business process.
However, the Company’s business plan includes
several significant assumptions. These assumptions include
increasing demand for used cars over the next twelve months, and
the ability to control costs and outgoing cash flows. In addition,
the Company’s ability to continue seeking additional financing,
including but not limited to equity financing from exercise of the
warrants, may be subject to uncertainties. These conditions and
uncertainties cast substantial doubt on the Company’s ability to
meet its obligations as they become due over the next twelve
months, which would impact the Company’s ability to continue as a
going concern.
If the Company is successful in its business and
financing plan and the warrants holders would exercise to purchase
the Company’s senior convertible preferred shares, management
believes that the Company will have sufficient liquidity for at
least the next twelve months of operations.
Recent DevelopmentOn April 5,
2023, the Company announced that NIO Capital has fulfilled its
obligations to pay a portion of the remaining outstanding purchase
price for its subscription of senior convertible preferred shares
of the Company, based on further agreed-upon schedules. To date,
NIO Capital has fulfilled its obligations to pay a total of US$80
million of the purchase price. As previously disclosed, an
affiliate of NIO Capital entered into definitive agreements with
the Company in June 2022 to subscribe for senior convertible
preferred shares of the Company for an aggregate purchase price of
US$100 million, payable in multiple installments. The Company also
announced that it has fully performed its outstanding payment
obligations under certain convertible promissory note originally
issued in June 2019 and amended in June 2021, totaling an aggregate
of US$61.6 million.
Business OutlookThe three
months ended March 31, 2023, which coincided with the Chinese New
Year holiday season lasting until the Lantern Festival, is
traditionally a low season for used car transactions. Additionally,
a widespread reduction in new car prices across China’s auto
industry during the entire quarter caused potential buyers to
hesitate in their purchase decisions. In response, Uxin adopted a
prudent vehicle acquisition strategy from the beginning of 2023,
enabling the Company to maintain a healthy and stable inventory
structure while minimizing the impacts of price volatilities.
Although the Company's reduced inventory size may temporarily limit
sales performance in the fourth quarter of fiscal year
2023, Uxin expects its sales turnover efficiency to remain
stable, with an improved margin profile compared to the third
quarter of fiscal year 2023.
For the three months ended March 31, 2023, the
Company expects its retail transaction volume to be around 2,100
units and the average selling price (ASP) for retailed cars to be
around RMB117,000. The Company also expects its wholesale
transaction volume to be around 1,300 units with an expected ASP of
around RMB52,000. The Company estimates that its total revenues
including retail vehicle sales revenue, wholesale vehicle sales
revenue and value-add-services revenue to be within the range of
RMB310 million to RMB330 million. These forecasts reflect the
Company’s current and preliminary views on the market and
operational conditions, which are subject to changes.
Conference CallUxin’s
management team will host a conference call on Tuesday, April 11,
2023, at 8:00 A.M. U.S. Eastern Time (8:00 P.M. Beijing/Hong Kong
time on the same day) to discuss the financial results. In advance
of the conference call, all participants must use the following
link to complete the online registration process. Upon registering,
each participant will receive access details for this conference
including an event passcode, a unique access PIN, dial-in numbers,
and an e-mail with detailed instructions to join the conference
call.
Conference Call
Preregistration:https://s1.c-conf.com/diamondpass/10029809-wz0dil.html
A telephone replay of the call will be available
after the conclusion of the conference call until April 18, 2023.
The dial-in details for the replay are as follows:
U.S.: |
|
|
+1 646 254 3697 |
China: |
|
|
+61 2 8199 0299 |
Replay PIN: |
|
|
10029322 |
A live webcast and archive of the conference
call will be available on the Investor Relations section of Uxin’s
website at http://ir.xin.com.
About UxinUxin Limited (Nasdaq:
UXIN) is a leading e-commerce platform for buying and selling used
cars in China. 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.
Use of Non-GAAP Financial
Measures In evaluating the business, the Company considers
and uses certain non-GAAP measures, including adjusted loss from
operations and adjusted net loss from operations and adjusted net
loss from operations per share – basic and diluted, as supplemental
measures to review and assess its operating performance. The
presentation of the non-GAAP financial measure is not intended to
be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with U.S. GAAP.
The Company defines adjusted loss from operations as loss from
operations excluding share-based compensation. The Company defines
adjusted net loss from operations as net loss from operations
excluding share-based compensation and fair value impact of the
issuance of senior convertible preferred shares, including troubled
debt restructuring gain. The Company defines adjusted net loss from
operations per share – basic and diluted as net loss from
operations per share excluding impact of share-based compensation
and fair value impact of the issuance of senior convertible
preferred shares, also including troubled debt restructuring gain.
The Company presents the non-GAAP financial measures because they
are used by the management to evaluate the operating performance
and formulate business plans. Adjusted net loss from operations
enables management to assess the Company’s operating results
without considering the impact of share-based compensation and fair
value impact of the issuance of senior convertible preferred
shares, which is non-cash charges. The Company also believes that
the use of the non-GAAP measure facilitates investors' assessment
of its operating performance as this measure excludes certain
expenses that are not expected to result in cash payments.
Non-GAAP financial measures are not defined
under U.S. GAAP and are not presented in accordance with U.S. GAAP.
A non-GAAP financial measure has limitations as analytical tools.
One of the key limitations of using adjusted net loss from
operations is that it does not reflect all items of income and
expense that affect the Company’s operations. Share-based
compensation and fair value impact of the issuance of senior
convertible preferred shares have been and may continue to be
incurred in the business and is not reflected in the presentation
of adjusted net loss from operations, and adjusted net loss from
operations per share – basic and diluted. Further, non-GAAP
measures may differ from the non-GAAP information used by other
companies, including peer companies, and therefore their
comparability may be limited.
The Company compensates for these limitations by
reconciling the non-GAAP financial measures to the nearest U.S.
GAAP performance measures, all of which should be considered when
evaluating the Company’s performance. The Company encourages you to
review its financial information in its entirety and not rely on a
single financial measure.
Reconciliations of Uxin’s non-GAAP financial
measures to the most comparable U.S. GAAP measure are included at
the end of this press release.
Exchange Rate Information This
announcement contains translations of certain RMB amounts into U.S.
dollars (“US$”) at specified rates solely for the convenience of
the reader, except for those transaction amounts that were actually
settled in U.S. dollars. Unless otherwise stated, all translations
from RMB to US$ were made at the rate of RMB6.8972 to US$1.00,
representing the index rate as of December 30, 2022 set forth in
the H.10 statistical release of the Board of Governors of the
Federal Reserve System. The Company makes no representation that
the RMB or US$ amounts referred could be converted into US$ or RMB,
as the case may be, at any particular rate or at all.
Safe Harbor Statement This
announcement contains forward-looking statements. These statements
are made under the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “future,” “intends,” “plans,”
“believes,” “estimates” and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Uxin’s strategic and operational plans,
contain forward-looking statements. Uxin may also make written or
oral 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 made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about Uxin’s beliefs 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: impact of the COVID-19 pandemic, 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. Further information regarding
these and other risks is included in Uxin’s filings with the SEC.
All information provided in this press release and in the
attachments is as of the date of this press release, and Uxin does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
For investor and media enquiries, please
contact: Uxin Limited Investor
RelationsUxin LimitedPhone: +86 10 5691-6765Email:
ir@xin.com
The Blueshirt GroupMr. Jack
WangPhone: +86 166-0115-0429Email: Jack@blueshirtgroup.com
Uxin Limited |
Unaudited Consolidated Statements of
Comprehensive Loss |
(In
thousands except for number of shares and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, |
|
For the nine months ended December 31, |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Retail vehicle sales |
233,013 |
|
|
328,900 |
|
47,686 |
|
|
461,056 |
|
|
1,049,162 |
|
152,114 |
|
|
Wholesale vehicle sales |
265,919 |
|
|
132,054 |
|
19,146 |
|
|
643,800 |
|
|
633,828 |
|
91,896 |
|
|
Others |
7,709 |
|
|
9,549 |
|
1,384 |
|
|
25,516 |
|
|
32,465 |
|
4,707 |
|
|
Total revenues |
506,641 |
|
|
470,503 |
|
68,216 |
|
|
1,130,372 |
|
|
1,715,455 |
|
248,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
(485,805 |
) |
|
(467,676 |
) |
(67,807 |
) |
|
(1,083,773 |
) |
|
(1,697,813 |
) |
(246,160 |
) |
|
Gross profit |
20,836 |
|
|
2,827 |
|
409 |
|
|
46,599 |
|
|
17,642 |
|
2,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
(68,023 |
) |
|
(54,952 |
) |
(7,967 |
) |
|
(154,327 |
) |
|
(183,915 |
) |
(26,665 |
) |
|
General and
administrative |
(37,047 |
) |
|
(39,002 |
) |
(5,655 |
) |
|
(110,277 |
) |
|
(126,197 |
) |
(18,297 |
) |
|
Research and
development |
(11,269 |
) |
|
(9,433 |
) |
(1,368 |
) |
|
(27,762 |
) |
|
(28,375 |
) |
(4,114 |
) |
|
(Provision
for)/reversal of credit losses, net |
(3,688 |
) |
|
(433 |
) |
(63 |
) |
|
3,094 |
|
|
(760 |
) |
(110 |
) |
|
Total operating expenses |
(120,027 |
) |
|
(103,820 |
) |
(15,053 |
) |
|
(289,272 |
) |
|
(339,247 |
) |
(49,186 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other
operating income, net |
26,359 |
|
|
4,457 |
|
646 |
|
|
73,231 |
|
|
22,083 |
|
3,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
from operations |
(72,832 |
) |
|
(96,536 |
) |
(13,998 |
) |
|
(169,442 |
) |
|
(299,522 |
) |
(43,427 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
214 |
|
|
79 |
|
11 |
|
|
3,426 |
|
|
457 |
|
66 |
|
|
Interest
expenses |
(7,671 |
) |
|
(4,968 |
) |
(720 |
) |
|
(35,781 |
) |
|
(15,567 |
) |
(2,257 |
) |
|
Other
income |
869 |
|
|
940 |
|
136 |
|
|
4,378 |
|
|
16,181 |
|
2,346 |
|
|
Other
expenses |
(1,794 |
) |
|
(2,334 |
) |
(338 |
) |
|
(7,684 |
) |
|
(5,836 |
) |
(846 |
) |
|
Losses from
extinguishment of debt (i) |
- |
|
|
- |
|
- |
|
|
- |
|
|
(2,778 |
) |
(403 |
) |
|
Foreign
exchange (losses)/gains |
(3,430 |
) |
|
560 |
|
81 |
|
|
(8,652 |
) |
|
(2,579 |
) |
(374 |
) |
|
Fair value
impact of the issuance of senior convertible preferred shares
(ii) |
1,364,348 |
|
|
1,495 |
|
217 |
|
|
(290,601 |
) |
|
242,226 |
|
35,119 |
|
|
Income/(loss) before income tax expense |
1,279,704 |
|
|
(100,764 |
) |
(14,611 |
) |
|
(504,356 |
) |
|
(67,418 |
) |
(9,776 |
) |
|
Income tax
expense |
(22 |
) |
|
(76 |
) |
(11 |
) |
|
(22 |
) |
|
(285 |
) |
(41 |
) |
|
Equity in
losses of affiliates |
60 |
|
|
- |
|
- |
|
|
334 |
|
|
10,330 |
|
1,498 |
|
|
Net
income/(loss), net of tax |
1,279,742 |
|
|
(100,840 |
) |
(14,622 |
) |
|
(504,044 |
) |
|
(57,373 |
) |
(8,319 |
) |
|
Less: net
loss attributable to non-controlling interests shareholders |
- |
|
|
- |
|
- |
|
|
- |
|
|
(3 |
) |
- |
|
|
Net
income/(loss) attributable to UXIN LIMITED's ordinary
shareholders |
1,279,742 |
|
|
(100,840 |
) |
(14,622 |
) |
|
(504,044 |
) |
|
(57,370 |
) |
(8,319 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) |
1,279,742 |
|
|
(100,840 |
) |
(14,622 |
) |
|
(504,044 |
) |
|
(57,373 |
) |
(8,319 |
) |
|
Foreign
currency translation, net of tax nil |
51,084 |
|
|
9,854 |
|
1,429 |
|
|
65,483 |
|
|
(80,333 |
) |
(11,647 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income/(loss) |
1,330,826 |
|
|
(90,986 |
) |
(13,193 |
) |
|
(438,561 |
) |
|
(137,706 |
) |
(19,966 |
) |
|
Less: total
comprehensive loss attributable to non-controlling interests
shareholders |
- |
|
|
- |
|
- |
|
|
- |
|
|
(3 |
) |
- |
|
|
Total comprehensive income/(loss) attributable to UXIN
LIMITED's ordinary shareholders |
1,330,826 |
|
|
(90,986 |
) |
(13,193 |
) |
|
(438,561 |
) |
|
(137,703 |
) |
(19,966 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) attributable to UXIN LIMITED's ordinary
shareholders |
1,279,742 |
|
|
(100,840 |
) |
(14,622 |
) |
|
(504,044 |
) |
|
(57,370 |
) |
(8,319 |
) |
|
Weighted
average shares outstanding – basic |
1,188,344,202 |
|
|
1,415,417,989 |
|
1,415,417,989 |
|
|
1,161,855,136 |
|
|
1,273,202,916 |
|
1,273,202,916 |
|
|
Weighted
average shares outstanding – diluted |
1,497,381,204 |
|
|
1,415,417,989 |
|
1,415,417,989 |
|
|
1,391,609,921 |
|
|
1,273,202,916 |
|
1,273,202,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) per share for ordinary shareholders, basic |
1.08 |
|
|
(0.03 |
) |
- |
|
|
(0.43 |
) |
|
(0.02 |
) |
- |
|
|
Net Loss per
share for ordinary shareholders, diluted |
(0.06 |
) |
|
(0.03 |
) |
- |
|
|
(1.94 |
) |
|
(0.02 |
) |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) The loss on
extinguishment of debt is the result of additional shares to be
issued in conjunction with previously settled convertible
promissory notes and certain other historical transactions during
the period.(ii) In June 2021, we entered into a share subscription
agreement with NIO Capital and Joy Capital, respectively, for an
aggregate investment amount of up to US$315 million for the
subscription of senior convertible preferred shares. The first
closing in the amount of US$100 million was completed for the
issuance of 291,290,416 senior convertible preferred shares on July
12, 2021. On the same day, we also issued warrants to each of NIO
Capital and Joy Capital to purchase up to 240,314,593 senior
convertible preferred shares for an aggregate amount of US$165
million which was included in the aforementioned US$315 million.
The second closing in the amount of US$50 million is expected to be
received subject to customary closing conditions, out of which
US$27.5 million, US$10 million and US$7.5 million were received in
November 2021, in March and June 2022, respectively. For the
remaining US$5 million, on July 27, 2022, NIO Capital assigned its
rights and obligations to an independent third party, from whom we
received this remaining US$5 million. According to U.S. GAAP, all
proceeds received in the first closing was allocated to warrants.
Warrants and the second closing contract are recorded as warrant
liabilities and forward contract liabilities or assets at fair
value respectively with subsequent fair value change to be charged
into the profit and loss. Total fair value impact during the
reported quarter was RMB1.5 million (US$0.2 million). |
|
|
|
|
|
|
|
|
|
|
|
|
Uxin
Limited |
|
Unaudited
Consolidated Balance Sheets |
|
(In thousands except
for number of shares and per share data) |
|
|
|
|
|
|
|
|
As of March 31, |
|
As of December 31, |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
RMB |
US$ |
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
128,021 |
|
|
104,067 |
|
15,088 |
|
|
Restricted
cash |
8,276 |
|
|
1,801 |
|
261 |
|
|
Accounts
receivable, net |
832 |
|
|
1,670 |
|
243 |
|
|
Loans
recognized as a result of payments under guarantees, net of
provision for credit losses of RMB324,371 and RMB253,822 as of
March 31, 2022 and December 31, 2022, respectively (ii) |
54,888 |
|
|
4,050 |
|
587 |
|
|
Other
receivables, net of provision for credit losses of RMB30,251 and
RMB22,450as of March 31, 2022 and December 31, 2022, respectively
(ii) |
166,006 |
|
|
35,563 |
|
5,156 |
|
|
Inventory,
net |
426,257 |
|
|
275,573 |
|
39,954 |
|
|
Forward
contract assets (i) |
36 |
|
|
- |
|
- |
|
|
Prepaid
expenses and other current assets (ii) |
90,012 |
|
|
64,714 |
|
9,383 |
|
|
Total current assets |
874,328 |
|
|
487,438 |
|
70,672 |
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property,
equipment and software, net |
34,531 |
|
|
51,784 |
|
7,508 |
|
|
Long term
investments |
288,756 |
|
|
288,712 |
|
41,859 |
|
|
Other
non-current assets (ii) |
24,000 |
|
|
- |
|
- |
|
|
Right-of-use
assets, net |
29,584 |
|
|
14,419 |
|
2,091 |
|
|
Total non-current assets |
376,871 |
|
|
354,915 |
|
51,458 |
|
|
|
|
|
|
|
|
Total assets |
1,251,199 |
|
|
842,353 |
|
122,130 |
|
|
|
|
|
|
|
|
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’
DEFICIT |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts
payable |
92,534 |
|
|
79,215 |
|
11,485 |
|
|
Guarantee
liabilities |
179 |
|
|
3 |
|
- |
|
|
Warrant
liabilities (i) |
196,390 |
|
|
524 |
|
76 |
|
|
Other
payables and other current liabilities (ii)(iii) |
674,333 |
|
|
487,936 |
|
70,744 |
|
|
Short-term
borrowing |
- |
|
|
20,000 |
|
2,900 |
|
|
Current
portion of long-term borrowings |
233,000 |
|
|
- |
|
- |
|
|
Current
portion of long-term debt (ii) |
102,206 |
|
|
210,488 |
|
30,518 |
|
|
Total current liabilities |
1,298,642 |
|
|
798,166 |
|
115,723 |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Long-term
borrowings |
- |
|
|
293,000 |
|
42,481 |
|
|
Consideration payable to WeBank (iv) |
107,642 |
|
|
51,171 |
|
7,419 |
|
|
Operating
lease liabilities |
10,866 |
|
|
5,717 |
|
829 |
|
|
Long-term
debt (ii) |
817,648 |
|
|
268,137 |
|
38,876 |
|
|
Total non-current liabilities |
936,156 |
|
|
618,025 |
|
89,605 |
|
|
|
|
|
|
|
|
Total liabilities |
2,234,798 |
|
|
1,416,191 |
|
205,328 |
|
|
|
|
|
|
|
|
Mezzanine equity |
|
|
|
|
|
Senior
convertible preferred shares (US$0.0001 par value, 1,000,000,000
and 1,720,000,000 shares authorized as of March 31, 2022 and
December 31, 2022, respectively; 400,524,323 and 1,151,221,338
shares issued and outstanding as of March 31, 2022 and December 31,
2022, respectively) (i) |
526,484 |
|
|
642,623 |
|
93,172 |
|
|
Total Mezzanine equity |
526,484 |
|
|
642,623 |
|
93,172 |
|
|
|
|
|
|
|
|
Shareholders’ deficit |
|
|
|
|
|
Ordinary
shares |
782 |
|
|
805 |
|
117 |
|
|
Additional
paid-in capital |
14,254,109 |
|
|
14,685,414 |
|
2,129,185 |
|
|
Accumulated
other comprehensive income |
288,461 |
|
|
208,128 |
|
30,176 |
|
|
Accumulated
deficit |
(16,053,272 |
) |
|
(16,110,642 |
) |
(2,335,824 |
) |
|
Total Uxin’s shareholders’ deficit |
(1,509,920 |
) |
|
(1,216,295 |
) |
(176,346 |
) |
|
Non-controlling interests |
(163 |
) |
|
(166 |
) |
(24 |
) |
|
Total shareholders’ deficit |
(1,510,083 |
) |
|
(1,216,461 |
) |
(176,370 |
) |
|
|
|
|
|
|
|
Total liabilities, mezzanine equity and shareholders’
deficit |
1,251,199 |
|
|
842,353 |
|
122,130 |
|
|
|
|
|
|
|
|
|
|
(i) In June 2021, we entered into a share subscription agreement,
respectively, with NIO Capital and Joy Capital for an aggregate
investment amount of up to US$315 million for the subscription of
senior convertible preferred shares. The first closing in the
amount of US$100 million was completed for the issuance of
291,290,416 senior convertible preferred shares on July 12, 2021.
On the same day, we also issued warrants to each of NIO Capital and
Joy Capital to purchase up to 240,314,593 senior convertible
preferred shares for an aggregate amount of US$165 million which
was included in the aforementioned US$315 million. According to
U.S. GAAP, all proceeds received in the first closing was allocated
to warrants. Warrants and the second closing contract are recorded
as warrant liabilities and forward liabilities, respectively, with
subsequent fair value change to be charged into the profit and
loss. The second closing in the amount of US$50 million is expected
to be received subject to customary closing conditions, out of
which US$27.5 million, US$10 million and US$7.5 million were
received in November 2021, March and June 2022, respectively. For
the remaining US$5 million, on July 27, 2022, NIO Capital assigned
its rights and obligations to an independent third party, from whom
we received this remaining US$5 million. The corresponding fair
value was transferred from forward contract liabilities to
mezzanine equity on the same day.(ii) In June 2021, we entered into
a supplemental agreement with affiliates of 58.com, Warburg Pincus,
TPG and certain other investors who held a total of US$230.0
million convertible notes ("2024 Notes"). Pursuant to the
supplemental agreement, 30% of the outstanding 2024 Notes principal
amount will be converted into a total of 66,990,291 Class A
ordinary shares at a price of US$1.03 per Class A ordinary share
upon the first closing. On July 12, 2021, aforementioned conversion
was completed and related Class A ordinary shares were issued.
Remaining principal amount will be repaid by instalments by us from
July 2021 to June 2024 and recorded as current portion of long-term
debt and long-term debt. Besides, interest term was modified and
2024 Notes bear no interest from the original issuance date. On
July 18 and August 29, 2022, the Company issued 183,495,146 and
36,699,029 Class A ordinary shares with par value of US$0.0001 per
share to 58.com and ClearVue Uxin Holdings, Ltd. (“ClearVue”) in
exchange for the full release of the Company’s obligations under
the 2024 Notes issued to 58.com and ClearVue on June 10, 2019.
These shares were issued at a price equivalent to US$1.03 per ADS.
In connection with the foregoing transaction, we and 58.com have
mutually released the other party from claims arising out of
certain obligations under certain historical transactions,
primarily including 2B unreceived disposal consideration and
accrued advertising expenses. The related impact of RMB2.8 million
to our second quarter result was recognized in "losses from
extinguishment of debt".(iii) Pursuant to contractual payment
schedule contained in the supplemental agreements signed with one
of our suppliers, in order to settle all payables due to this
supplier, a total of RMB56.1 million will be waived after full
payment is made by us as long as we make payments on schedule. As
of December 31, 2022, a total of RMB96.1 million was recorded.
Currently, we made the payments on schedule.(iv) On July 23, 2020,
we entered into a supplemental agreement with WeBank to settle our
remaining guarantee liabilities associated with the
historically-facilitated loans for WeBank. Pursuant to the
supplemental agreement, we will pay an aggregate amount of RMB372
million to WeBank from 2020 to 2025 as guarantee settlement with a
maximum annual settlement amount of no more than RMB84 million.
Upon the signing of the supplemental agreement, we are also no
longer subject to guarantee obligations in relation to our
historically-facilitated loans for WeBank under the condition that
we make the instalment payments based on the agreed-upon schedule
set forth in the supplemental agreement. |
|
* Share-based compensation charges included are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, |
|
For the nine months ended December 31, |
|
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
Sales and
marketing |
- |
|
318 |
46 |
|
- |
|
1,108 |
161 |
|
General and
administrative |
4,282 |
|
10,306 |
1,494 |
|
13,166 |
|
34,258 |
4,967 |
|
Research and
development |
- |
|
348 |
50 |
|
- |
|
1,235 |
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Uxin
Limited |
Unaudited Reconciliations of GAAP And
Non-GAAP Results |
(In thousands except for number of shares and per
share data) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, |
|
For the nine months ended December 31, |
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
Loss from operations |
(72,832 |
) |
|
(96,536 |
) |
(13,998 |
) |
|
(169,442 |
) |
|
(299,522 |
) |
(43,427 |
) |
Add:
Share-based compensation expenses |
4,282 |
|
|
10,972 |
|
1,590 |
|
|
13,166 |
|
|
36,601 |
|
5,307 |
|
- Sales and marketing |
- |
|
|
318 |
|
46 |
|
|
- |
|
|
1,108 |
|
161 |
|
- General and administrative |
4,282 |
|
|
10,306 |
|
1,494 |
|
|
13,166 |
|
|
34,258 |
|
4,967 |
|
- Research and development |
- |
|
|
348 |
|
50 |
|
|
- |
|
|
1,235 |
|
179 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted loss from operations |
(68,550 |
) |
|
(85,564 |
) |
(12,408 |
) |
|
(156,276 |
) |
|
(262,921 |
) |
(38,120 |
) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, |
|
For the nine months ended December 31, |
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
Net
income/(loss) from operations |
1,279,742 |
|
|
(100,840 |
) |
(14,622 |
) |
|
(504,044 |
) |
|
(57,373 |
) |
(8,319 |
) |
|
|
|
|
|
|
|
|
|
|
Add:
Share-based compensation expenses |
4,282 |
|
|
10,972 |
|
1,590 |
|
|
13,166 |
|
|
36,601 |
|
5,307 |
|
- Sales and marketing |
- |
|
|
318 |
|
46 |
|
|
- |
|
|
1,108 |
|
161 |
|
- General and administrative |
4,282 |
|
|
10,306 |
|
1,494 |
|
|
13,166 |
|
|
34,258 |
|
4,967 |
|
- Research and development |
- |
|
|
348 |
|
50 |
|
|
- |
|
|
1,235 |
|
179 |
|
Fair
value impact of the issuance of senior convertible preferred
shares |
(1,364,348 |
) |
|
(1,495 |
) |
(217 |
) |
|
290,601 |
|
|
(242,226 |
) |
(35,119 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net loss from operations |
(80,324 |
) |
|
(91,363 |
) |
(13,249 |
) |
|
(200,277 |
) |
|
(262,998 |
) |
(38,131 |
) |
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) from operations per share – basic |
1.08 |
|
|
(0.03 |
) |
- |
|
|
(0.43 |
) |
|
(0.02 |
) |
- |
|
Net loss
from operations per share – diluted |
(0.06 |
) |
|
(0.03 |
) |
- |
|
|
(1.94 |
) |
|
(0.02 |
) |
- |
|
Non-GAAP
adjusted net loss from operations per share – basic |
(0.07 |
) |
|
(0.06 |
) |
(0.01 |
) |
|
(0.17 |
) |
|
(0.21 |
) |
(0.03 |
) |
Non-GAAP
adjusted net loss from operations per share – diluted |
(0.07 |
) |
|
(0.06 |
) |
(0.01 |
) |
|
(0.17 |
) |
|
(0.21 |
) |
(0.03 |
) |
Weighted
average shares outstanding – basic |
1,188,344,202 |
|
|
1,415,417,989 |
|
1,415,417,989 |
|
|
1,161,855,136 |
|
|
1,273,202,916 |
|
1,273,202,916 |
|
Weighted
average shares outstanding – diluted |
1,497,381,204 |
|
|
1,415,417,989 |
|
1,415,417,989 |
|
|
1,391,609,921 |
|
|
1,273,202,916 |
|
1,273,202,916 |
|
|
|
|
|
|
|
|
|
|
|
Note: The conversion
of Renminbi (RMB) into U.S. dollars (USD) is based on the certified
exchange rate of USD1.00 = RMB6.8972 as of December 30, 2022 set
forth in the H.10 statistical release of the Board of Governors of
the Federal Reserve System. |
|
|
|
|
|
|
|
|
|
|
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