Uxin Limited (“Uxin” or the “Company”) (Nasdaq: UXIN), a leading
national online used car dealer in China, today announced its
unaudited financial results for the second quarter ended June 30,
2019.
Divestiture of Loan Facilitation
BusinessOn July 12, 2019, the Company announced that it
had entered into a binding term sheet with Golden Pacer, a leading
financial technology platform in China, to divest its loan
facilitation related business. Pursuant to the term sheet, the
Company will divest its entire 2C intra-regional business and cease
to provide guarantee services in connection with its 2C
cross-regional business going forward, and thus divest the
corresponding assets and liabilities. As a result of the proposed
divestiture, the Company will be significantly relieved of the
guarantee obligations in relation to the existing loan balance of
RMB33.2 billion (US$4.8 billion) as of June 30, 2019 for the used
car loans previously facilitated by Uxin. In accordance with the
applicable accounting standards, assets of RMB3,878.9 million
(US$564.2 million) (mainly including restricted cash, loan
recognized as a result of payment under the guarantee, and advance
to consumers on behalf of financing partners) and liabilities of
RMB941.4 million (US$136.9 million) (including guarantee
liabilities, deposit of interests from consumers and payable to
financing partners, short-term borrowings, and long-term
borrowings) were reclassified as assets/liabilities held for sale
on the Company’s consolidated balance sheet as of June 30, 2019;
and results of operations related to the divested business were
reported as net (loss)/income from operations of discontinued
operations. Revenue of discontinued operations and its
corresponding cost of revenues and operating expenses for the
second quarter of 2019 were RMB463.6 million (US$67.4 million),
RMB89.4 million (US$13.0 million) and RMB378.1 million (US$55.0
million), respectively. Unless indicated otherwise, the discussion
below in this press release relates to continuing operations only.
The transactions contemplated under the term sheet are subject to
certain closing conditions and are currently expected to close by
the end of 2019.
As a result of the proposed divestiture, the
Company’s 2C business now solely consists of online used car
transactions (previously recorded as “2C cross-regional
transactions”), and the revenue streams of the 2C business include
(i) commission revenue, which represents certain percentage of car
sales price charged to consumers, and (ii) value-added service
(“VAS”) revenue, which represents revenue generated from consumers
through the offering of value-added services for its online used
car transactions such as financing product referral, insurance
product referral and warranties. The Company maintains its strong
ability to monetize its 2C online used car transactions as
before.
Second Quarter 2019 Operational
Highlights
- 2C Transaction volume increased to 24,585
units in the second quarter of 2019, representing year-over-year
growth of 500.4%.
- 2B Transaction volume decreased to 39,576
units in the second quarter of 2019, representing year-over-year
decline of 57.1%, due to the Company’s change of approach in
serving consumers with car-selling needs, as well as dealers’
growing appetite for retail transactions through Uxin’s 2C
platform.
- 2C GMV1 increased to RMB2,864 million in the
second quarter of 2019, representing year-over-year growth of
481.5%.
- 2B GMV decreased to RMB1,858 million in the
second quarter of 2019, representing year-over-year decline of
59.1%.
Second Quarter 2019 Financial
Highlights
- 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%.
- Gross profit was RMB234.3 million (US$34.1
million) in the second quarter of 2019, representing year-over-year
growth of 101.2%. Gross margin increased to 53.4%
in the second quarter of 2019, compared to 42.0% in the same period
last year.
- Loss from continuing operations was RMB342.3
million (US$49.8 million) in the second quarter of 2019, a decrease
from RMB1,257.6 million in the same period last year.
- Non-GAAP adjusted loss from continuing
operations was RMB315.2 million (US$45.9 million) in the
second quarter of 2019, a decrease from RMB397.8 million in the
same period last year.
- Net loss from continuing operations was
RMB359.9 million (US$52.4 million) in the second quarter of 2019,
compared to net income from continuing operations of RMB285.1
million in the same period last year.
- Non-GAAP adjusted net loss from continuing
operations was RMB332.9 million (US$48.4 million) in the
second quarter of 2019, a decrease from RMB399.4 million in the
same period last year. 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.”
Second Quarter 2019 Financial
ResultsTotal revenues increased to
RMB439.2 million (US$63.9 million) in the second quarter of 2019,
representing an increase of 58.3% from RMB277.5 million in the same
period last year, primarily due to the increases in 2C transaction
volume, GMV, commission rate2 and VAS take rate3.
2C Business: Revenue of 2C
business was RMB322.5 million (US$46.9 million) in the second
quarter of 2019, representing a substantial increase of 11 times
from RMB27.5 million in the same period last year. The 2C
transaction volume, or online used car transaction volume,
increased by 500.4% year-over-year to 24,585 units in the second
quarter of 2019, and its corresponding GMV increased by 481.5%
year-over-year to RMB2,864 million.
- Commission revenue was RMB178.9 million
(US$26.0 million) in the second quarter of 2019, representing a
substantial increase of 892.6% from RMB18.0 million in the same
period last year, primarily due to the increases in the transaction
volume, GMV and commission rate. Benefiting from enhanced service,
improved user experience and higher pricing power, commission rate
increased to 6.2% during the quarter from 3.7% in the same period
last year.
- Value-added service revenue was RMB143.6
million (US$20.9 million) in the second quarter of 2019,
representing a substantial increase of 14 times from RMB9.5 million
in the same period last year, primarily due to the increases in the
transaction volume, GMV and VAS take rate. The VAS take rate
increased to 5.0% in the second quarter of 2019 from 1.9% in the
same period last year, driven by optimized services, which result
in higher pricing power and higher percentage of 2C online used car
transactions that are successfully referred with VAS.
2B Business:
- 2B transaction facilitation revenue was
RMB68.4 million (US$9.9 million) in the second quarter of 2019,
representing a decrease of 57.5% from the same period last year,
due to the decline in transaction volume. 2B transaction volume
decreased by 57.1% year-over-year to 39,576 units in the second
quarter of 2019, due to the Company’s change of approach in serving
consumers with car-selling needs starting from the third quarter of
2018, as well as dealers’ growing appetite for retail transactions
through the Company’s 2C platform. 2B GMV decreased to RMB1,858
million in the second quarter of 2019, representing a
year-over-year decrease of 59.1%. The take rate for 2B transaction
facilitation4 slightly increased to 3.7% in the second quarter of
2019 from 3.5% in the same period last year.
Cost of revenues increased to
RMB204.9 million (US$29.8 million) in the second quarter of 2019,
representing an increase of 27.2% from RMB161.0 million in the same
period last year, primarily due to the increase in fulfillment
cost, which was correspondingly driven by the increase in the
transaction volume, as well as the increase in salaries and
benefits of employees engaged in car inspection, quality control,
customer service and after-sales service.
Gross profit increased to
RMB234.3million (US$34.1 million) in the second quarter of 2019,
representing an increase of 101.2% from RMB116.5 million in the
same period last year. Gross margin increased to
53.4% in the second quarter of 2019 from 42.0% in the same period
last year, driven by better economies of scale.
Total operating expenses were
RMB576.6 million (US$83.9 million) in the second quarter of 2019.
Total operating expenses excluding share-based compensation
expenses were RMB549.6 million.
- Sales and marketing expenses
decreased by 13.6% year-over-year to RMB346.7 million (US$50.4
million) in the second quarter of 2019. The decrease mainly
reflects the Company’s continuous efforts to enhance operating
efficiency. Sales and marketing expenses, excluding share-based
compensation expenses of nil, as a percentage of total revenues
decreased to 78.9% during the quarter from 144.5% in the same
period last year.
- General and administrative expenses decreased
by 81.3% year-over-year to RMB173.8 million (US$25.3 million) in
the second quarter of 2019. The decrease was mainly due to the
decrease in share-based compensation expenses. The general and
administrative expenses, excluding share-based compensation
expenses of RMB26.8 million, were RMB147.0 million, which
represented 33.5% of total revenues, slightly increasing from 30.7%
in the same period last year.
- Research and development expenses increased by
28.5% year-over-year to RMB56.1 million (US$8.2 million) in the
second quarter of 2019. The increase was primarily due to the
increase in salaries and benefits expenses. The research and
development expenses, excluding share-based compensation expenses
of RMB0.3 million, were RMB55.8 million, which represented 12.7% of
total revenues, compared to 10.2% in the same period last
year.
Loss from continuing operations
was RMB342.3 million (US$49.8 million) in the second quarter of
2019, a decrease from RMB1,257.6 million in the same period last
year.
Non-GAAP adjusted loss from continuing
operations, which excludes share-based compensation
expenses of RMB27.1 million, was RMB315.2 million (US$45.9 million)
in the second quarter of 2019, a decrease from RMB397.8 million in
the same period last year.
Fair value change of derivative
liabilities was nil in the second quarter of 2019,
compared to a gain of RMB1,544.2 million in the same period last
year. The impact of derivative liabilities no longer exists as the
preferred shares were converted into ordinary shares at the time of
IPO.
Net loss from continuing
operations was RMB359.9 million (US$52.4 million) in the
second quarter of 2019, compared to net income from continuing
operations of RMB285.1 million in the same period last year. The
change was mainly due to the fair value change of derivative
liabilities, which no longer existed in the second quarter of 2019,
while the Company recorded a gain from fair value change of
derivative liabilities in the same period last year.
Non-GAAP adjusted net loss from
continuing operations, which excludes share-based
compensation expenses of RMB27.1 million and fair value change of
derivative liabilities in the amount of nil, was RMB332.9 million
(US$48.4 million) in the second quarter of 2019, a decrease from
RMB399.4 million in the same period last year.
As of June 30, 2019, the Company had cash and
cash equivalents of RMB782.9 million (US$113.9 million).
Recent Updates
- Discontinuation of New Car Loan Facilitation
Business
Starting from the second quarter of 2019, the
Company gradually discontinued the loan facilitation services for
new cars, which historically contributed an immaterial portion to
total revenues.
Business OutlookTaking into
account the divestiture of the Company’s loan facilitation related
business to Golden Pacer as described under “Divestiture of Loan
Facilitation Business” above, Uxin expects total revenues for the
third quarter of 2019 to be in the range of RMB440 million to
RMB460 million. This forecast reflects the Company's current and
preliminary views on the market and operational conditions, which
are subject to change.
Conference CallThe Company’s
management will host an earnings conference call at 8:00 AM on
September 23, 2019 U.S. Eastern Time (8:00 PM on September 23, 2019
Beijing/Hong Kong time).
Dial-in details for the earnings conference call
are as follows:
| U.S.: |
+1 866 519
4004 or +1 845 675 0437 |
| International: |
+65 6713 5090 |
| Mainland China: |
400 620 8038 or 800 819 0121 |
| Hong Kong: |
800 906 601 or +852 3018 6771 |
| Conference ID: |
1087869 |
Additionally, a live and archived webcast of the
conference call will be available on the Company’s investor
relations website at http://ir.xin.com.
A replay of the conference call will be
accessible approximately one hour after the conclusion of the live
call until October 8, 2019, by dialing the following telephone
numbers:
| U.S.: |
+1 646 254
3697 |
| International: |
+61 2 8199 0299 |
| Conference ID: |
1087869 |
About UxinUxin Limited (Nasdaq:
UXIN) is a leading national online used car dealer in China. Uxin’s
mission is to enable people to buy the car of their choice, no
matter where they are located or what their budget is. Uxin enables
consumers to buy used cars through an innovative integrated online
platform and offline service and fulfilment networks, which address
each step of the transaction and cover the entire value chain. Its
online presence is bolstered by an offline network of more than
1,300 service centers in over 250 prefecture-level cities
throughout China.
Use of Non-GAAP Financial
Measures In evaluating the business, the Company considers
and uses a non-GAAP measure, adjusted loss from operations,
adjusted net loss and adjusted net loss per share, as a
supplemental measure 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
excluding share-based compensation. The Company defines adjusted
net loss as net (loss)/income excluding share-based compensation
and fair value change of derivative liabilities. The Company
presents the non-GAAP financial measure because it is used by the
management to evaluate the operating performance and formulate
business plans. Adjusted net loss enables the management to assess
the Company’s operating results without considering the impact of
share-based compensation and fair value change of derivative
liabilities, which are non-cash charges. The Company also believes
that the use of the non-GAAP measure facilitates investors'
assessment of its operating performance.
The non-GAAP financial measure is not defined
under U.S. GAAP and is not presented in accordance with
U.S. GAAP. The non-GAAP financial measure has limitations as
analytical tools. One of the key limitations of using adjusted net
loss is that it does not reflect all items of income and expense
that affect the Company’s operations. Share-based compensation and
fair value change of derivative liabilities have been and may
continue to be incurred in the business and is not reflected in the
presentation of adjusted net loss. Further, the non-GAAP measure
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 measure to the nearest
U.S. GAAP performance measure, 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 RMB6.8747 to US$1.00,
representing the index rate as of the end of June 2019 stipulated
by the People’s Bank of China. The Company makes no representation
that the RMB or US$ 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: 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 enquiries, please
contact: Nancy SongUxin Investor RelationsTel: +86 10
5691-6765Email: ir@xin.com
1 GMV is gross merchandise value as measured by
gross selling price of used cars, excluding service fees charged.2
The commission rate is measured by 2C commission revenue divided by
2C GMV.3 The VAS take rate is measured by 2C VAS revenue divided by
2C GMV.4 The take rate for 2B transaction facilitation is measured
by 2B transaction facilitation revenue divided by 2B GMV.
| |
|
|
|
|
|
|
|
|
|
|
| Uxin
Limited |
|
| Unaudited
Consolidated Statements of Comprehensive
Income/(Loss) |
|
| (In thousands except
for number of shares and per share data) |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
For the three months ended June 30, |
|
For the six months ended June 30, |
|
| |
2018 |
|
2019 |
|
2018 |
|
2019 |
|
| |
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
| To
consumers (“2C”) |
|
|
|
|
|
|
|
|
|
|
|
- Commission revenue |
18,023 |
|
|
178,901 |
|
26,023 |
|
|
20,360 |
|
|
327,741 |
|
47,673 |
|
|
|
- Value-added service revenue |
9,518 |
|
|
143,583 |
|
20,886 |
|
|
12,185 |
|
|
261,884 |
|
38,094 |
|
|
| To
businesses (“2B”) |
|
|
|
|
|
|
|
|
|
|
|
- Transaction facilitation revenue |
160,703 |
|
|
68,360 |
|
9,944 |
|
|
269,748 |
|
|
137,916 |
|
20,061 |
|
|
| Others |
89,210 |
|
|
48,343 |
|
7,032 |
|
|
175,512 |
|
|
99,819 |
|
14,520 |
|
|
|
Total revenues |
277,454 |
|
|
439,187 |
|
63,885 |
|
|
477,805 |
|
|
827,360 |
|
120,348 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Cost of
revenue |
(161,004 |
) |
|
(204,864 |
) |
(29,800 |
) |
|
(294,743 |
) |
|
(389,341 |
) |
(56,634 |
) |
|
|
Gross profit |
116,450 |
|
|
234,323 |
|
34,085 |
|
|
183,062 |
|
|
438,019 |
|
63,714 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| Sales and
marketing |
(401,360 |
) |
|
(346,703 |
) |
(50,432 |
) |
|
(819,236 |
) |
|
(754,874 |
) |
(109,805 |
) |
|
| General and
administrative |
(929,038 |
) |
|
(173,843 |
) |
(25,287 |
) |
|
(992,330 |
) |
|
(304,349 |
) |
(44,271 |
) |
|
| Research and
development |
(43,665 |
) |
|
(56,094 |
) |
(8,160 |
) |
|
(68,252 |
) |
|
(102,629 |
) |
(14,929 |
) |
|
|
Total operating expenses |
(1,374,063 |
) |
|
(576,640 |
) |
(83,879 |
) |
|
(1,879,818 |
) |
|
(1,161,852 |
) |
(169,005 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
| Loss
from continuing operations |
(1,257,613 |
) |
|
(342,317 |
) |
(49,794 |
) |
|
(1,696,756 |
) |
|
(723,833 |
) |
(105,291 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
| Interest
income |
4,962 |
|
|
3,988 |
|
580 |
|
|
15,315 |
|
|
2,408 |
|
350 |
|
|
| Interest
expenses |
(5,681 |
) |
|
(26,440 |
) |
(3,846 |
) |
|
(10,226 |
) |
|
(52,933 |
) |
(7,700 |
) |
|
| Other
income |
4,368 |
|
|
5,853 |
|
851 |
|
|
5,934 |
|
|
30,993 |
|
4,508 |
|
|
| Other
expenses |
(7,365 |
) |
|
(5,425 |
) |
(789 |
) |
|
(11,557 |
) |
|
(10,176 |
) |
(1,480 |
) |
|
| Foreign
exchange gains/(losses) |
2,058 |
|
|
76 |
|
11 |
|
|
3,283 |
|
|
(703 |
) |
(102 |
) |
|
| Fair value
change of derivative liabilities |
1,544,205 |
|
|
- |
|
- |
|
|
1,185,090 |
|
|
- |
|
- |
|
|
| Gain from
disposal of investment* |
- |
|
|
28,257 |
|
4,110 |
|
|
- |
|
|
28,257 |
|
4,110 |
|
|
| Impairment
of long-term investment** |
- |
|
|
(37,775 |
) |
(5,495 |
) |
|
- |
|
|
(37,775 |
) |
(5,495 |
) |
|
|
Income/(Loss) from continuing operations before income tax
expense |
284,934 |
|
|
(373,783 |
) |
(54,372 |
) |
|
(508,917 |
) |
|
(763,762 |
) |
(111,100 |
) |
|
| Income tax
credit/(expense) |
125 |
|
|
5,632 |
|
819 |
|
|
(827 |
) |
|
4,075 |
|
593 |
|
|
| Equity in
gains of affiliates |
- |
|
|
8,207 |
|
1,194 |
|
|
- |
|
|
14,163 |
|
2,060 |
|
|
| Net
income/(loss) from continuing operations, net of tax |
285,059 |
|
|
(359,944 |
) |
(52,359 |
) |
|
(509,744 |
) |
|
(745,524 |
) |
(108,447 |
) |
|
| Less: net
loss attributable to non-controlling interests shareholders |
(6,006 |
) |
|
(346 |
) |
(50 |
) |
|
(13,740 |
) |
|
(791 |
) |
(115 |
) |
|
| Net
income/(loss) from continuing operations, attributable to UXIN
LIMITED |
291,065 |
|
|
(359,598 |
) |
(52,309 |
) |
|
(496,004 |
) |
|
(744,733 |
) |
(108,332 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income from discontinued operations before income tax |
(72,855 |
) |
|
(5,791 |
) |
(842 |
) |
|
(115,421 |
) |
|
107,227 |
|
15,597 |
|
|
| Income tax
expense |
(2,488 |
) |
|
(268 |
) |
(39 |
) |
|
(4,557 |
) |
|
(12,689 |
) |
(1,846 |
) |
|
| Net
(loss)/income from discontinued operations |
(75,343 |
) |
|
(6,059 |
) |
(881 |
) |
|
(119,978 |
) |
|
94,538 |
|
13,751 |
|
|
| Net
(loss)/income from discontinued operations attributable to UXIN
Limited |
(75,343 |
) |
|
(6,059 |
) |
(881 |
) |
|
(119,978 |
) |
|
94,538 |
|
13,751 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Net
income/(loss) |
209,716 |
|
|
(366,003 |
) |
(53,240 |
) |
|
(629,722 |
) |
|
(650,986 |
) |
(94,696 |
) |
|
| Less: net
loss attributable to non-controlling interests shareholders |
(6,006 |
) |
|
(346 |
) |
(50 |
) |
|
(13,740 |
) |
|
(791 |
) |
(115 |
) |
|
| Net
income/(loss) attributable to UXIN LIMITED |
215,722 |
|
|
(365,657 |
) |
(53,190 |
) |
|
(615,982 |
) |
|
(650,195 |
) |
(94,581 |
) |
|
| Accretion on
redeemable preferred shares |
(161,412 |
) |
|
- |
|
- |
|
|
(318,951 |
) |
|
- |
|
- |
|
|
| Deemed
dividend to preferred shareholders |
- |
|
|
- |
|
- |
|
|
(544,773 |
) |
|
- |
|
- |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Net
income/(loss) attributable to ordinary shareholders |
54,310 |
|
|
(365,657 |
) |
(53,190 |
) |
|
(1,479,706 |
) |
|
(650,195 |
) |
(94,581 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net
income/(loss) |
209,716 |
|
|
(366,003 |
) |
(53,240 |
) |
|
(629,722 |
) |
|
(650,986 |
) |
(94,696 |
) |
|
| Foreign
currency translation |
97,643 |
|
|
(12,859 |
) |
(1,870 |
) |
|
109,778 |
|
|
(6,832 |
) |
(994 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income/(loss) |
307,359 |
|
|
(378,862 |
) |
(55,110 |
) |
|
(519,944 |
) |
|
(657,818 |
) |
(95,690 |
) |
|
| Less: total
comprehensive loss attributable to non-controlling interests
shareholders |
(6,006 |
) |
|
(346 |
) |
(50 |
) |
|
(13,740 |
) |
|
(791 |
) |
(115 |
) |
|
|
Total comprehensive income/(loss) attributable to Uxin’s
shareholders |
313,365 |
|
|
(378,516 |
) |
(55,060 |
) |
|
(506,204 |
) |
|
(657,027 |
) |
(95,575 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net
income/(loss) attributable to ordinary shareholders |
54,310 |
|
|
(365,657 |
) |
(53,190 |
) |
|
(1,479,706 |
) |
|
(650,195 |
) |
(94,581 |
) |
|
| Weighted
average shares outstanding – basic |
100,856,242 |
|
|
882,761,118 |
|
882,761,118 |
|
|
75,229,919 |
|
|
882,252,863 |
|
882,252,863 |
|
|
| Weighted
average shares outstanding – diluted |
840,459,078 |
|
|
882,761,118 |
|
882,761,118 |
|
|
75,229,919 |
|
|
882,252,863 |
|
882,252,863 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share for ordinary shareholders, basic |
|
|
|
|
|
|
|
|
|
|
| Continuing
operations |
1.29 |
|
|
(0.41 |
) |
(0.06 |
) |
|
(18.07 |
) |
|
(0.84 |
) |
(0.12 |
) |
|
| Discontinued
operations |
(0.75 |
) |
|
(0.01 |
) |
0.00 |
|
|
(1.59 |
) |
|
0.11 |
|
0.02 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share for ordinary shareholders, diluted |
|
|
|
|
|
|
|
|
|
| Continuing
operations |
(1.54 |
) |
|
(0.41 |
) |
(0.06 |
) |
|
(18.07 |
) |
|
(0.84 |
) |
(0.12 |
) |
|
| Discontinued
operations |
(0.75 |
) |
|
(0.01 |
) |
0.00 |
|
|
(1.59 |
) |
|
0.10 |
|
0.02 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
| * Gain from disposal
of investment was recognized upon the disposal of equity interests
in ClearVue during Q2 of 2019. |
| ** The impairment of
long-term investment was recorded in Q2, after the Company was
informed by Orange Inc. of their proposed liquidation. Orange Inc.
is a technology company that the Company invested in 2017 and
classified as available-for-sale debt security investment. Orange
Inc. is currently in process of the liquidation. |
| |
|
|
|
|
|
|
| Uxin
Limited |
|
|
| Unaudited
Consolidated Balance Sheets |
|
|
| (In thousands except
for number of shares and per share data) |
|
|
| |
|
|
|
|
|
|
| |
As of December 31, |
|
As of June 30, |
|
|
| |
2018 |
|
2019 |
|
|
|
RMB |
|
RMB |
US$ |
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
800,997 |
|
|
782,916 |
|
113,884 |
|
|
|
| Restricted
cash |
23,498 |
|
|
14,852 |
|
2,160 |
|
|
|
| Accounts
receivable |
51,610 |
|
|
55,032 |
|
8,008 |
|
|
|
| Short-term
investments |
596,078 |
|
|
- |
|
- |
|
|
|
| Advance to
sellers |
692,714 |
|
|
651,655 |
|
94,790 |
|
|
|
| Other
receivables, net |
204,454 |
|
|
202,978 |
|
29,525 |
|
|
|
|
Inventory |
19,380 |
|
|
16,151 |
|
2,349 |
|
|
|
| Prepaid
expenses and other current assets |
316,386 |
|
|
329,442 |
|
47,921 |
|
|
|
| Financial
lease receivables, net |
294,511 |
|
|
190,322 |
|
27,684 |
|
|
|
| Assets held
for sale, current |
3,669,006 |
|
|
3,878,908 |
|
564,229 |
|
|
|
|
Total current assets |
6,668,634 |
|
|
6,122,256 |
|
890,550 |
|
|
|
| |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
| Property,
equipment and software, net |
199,271 |
|
|
158,402 |
|
23,041 |
|
|
|
| Intangible
assets, net |
21,179 |
|
|
17,065 |
|
2,482 |
|
|
|
|
Goodwill |
110,424 |
|
|
110,424 |
|
16,062 |
|
|
|
| Long term
investments |
349,882 |
|
|
261,303 |
|
38,009 |
|
|
|
| Operating
lease right-of-use assets, net* |
- |
|
|
220,998 |
|
32,147 |
|
|
|
|
Total non-current assets |
680,756 |
|
|
768,192 |
|
111,741 |
|
|
|
| |
|
|
|
|
|
|
|
Total assets |
7,349,390 |
|
|
6,890,448 |
|
1,002,291 |
|
|
|
| |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
| Short-term
borrowings |
325,562 |
|
|
253,541 |
|
36,880 |
|
|
|
| Accounts
payable |
156,320 |
|
|
161,776 |
|
23,532 |
|
|
|
| Advance from
buyers collected on behalf of sellers |
375,803 |
|
|
248,126 |
|
36,093 |
|
|
|
| Other
payables and accruals |
1,197,300 |
|
|
1,330,591 |
|
193,549 |
|
|
|
| Deferred
revenue |
115,160 |
|
|
65,413 |
|
9,515 |
|
|
|
| Convertible
bonds** |
1,188,192 |
|
|
1,581,181 |
|
230,000 |
|
|
|
| Operating
lease liability, current* |
- |
|
|
154,316 |
|
22,447 |
|
|
|
| Liabilities
held for sale |
1,486,651 |
|
|
941,415 |
|
136,939 |
|
|
|
|
Total current liabilities |
4,844,988 |
|
|
4,736,359 |
|
688,955 |
|
|
|
| |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
| Long-term
borrowings |
128,000 |
|
|
293,000 |
|
42,620 |
|
|
|
| Deferred tax
liabilities |
4,759 |
|
|
3,879 |
|
564 |
|
|
|
| Operating
lease liability, non-current* |
- |
|
|
60,228 |
|
8,761 |
|
|
|
|
Total non-current liabilities |
132,759 |
|
|
357,107 |
|
51,945 |
|
|
|
| |
|
|
|
|
|
|
|
Total liabilities |
4,977,747 |
|
|
5,093,466 |
|
740,900 |
|
|
|
| |
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
|
| Ordinary
shares |
575 |
|
|
577 |
|
84 |
|
|
|
| Additional
paid-in capital |
12,967,986 |
|
|
13,051,138 |
|
1,898,430 |
|
|
|
| Accumulated
other comprehensive income |
86,061 |
|
|
79,229 |
|
11,525 |
|
|
|
| Accumulated
deficit |
(10,680,489 |
) |
|
(11,330,682 |
) |
(1,648,171 |
) |
|
|
|
Total Uxin’s shareholders’ equity |
2,374,133 |
|
|
1,800,262 |
|
261,868 |
|
|
|
|
Non-controlling interests |
(2,490 |
) |
|
(3,280 |
) |
(477 |
) |
|
|
|
Total shareholders' equity |
2,371,643 |
|
|
1,796,982 |
|
261,391 |
|
|
|
| |
|
|
|
|
|
|
|
Total liabilities and shareholders’equity |
7,349,390 |
|
|
6,890,448 |
|
1,002,291 |
|
|
|
| |
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
| * The Company adopted
ASC 842 using the additional transition method with an effective
date of January 1, 2019 for leases that existed on that date. Prior
period results continue to be presented under ASC 840 based on the
accounting standards originally in effect for such periods. No
cumulative effect adjustment to the opening balance of retained
earnings was required. |
|
| |
| ** The Company entered
into a convertible note purchase agreement with affiliates of
58.com, Warburg Pincus, TPG and certain other investors on May 28,
2019, pursuant to which the Company issued and sold convertible
notes in an aggregate principal amount of US$230 million in June
2019. The Company also repaid the convertible notes in an aggregate
principal amount of US$175 million held by CNCB (Hong Kong)
Investment Limited (an affiliate of China CITIC Bank) and Golden
Fortune Company Limited (whose investment manager is ICBC Asset
Management (Global) Company Limited) shortly before they became due
at the end of June 2019. |
|
| |
| |
|
|
|
|
|
|
|
|
|
|
* Share-based compensation charges from continuing operations
included are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
| |
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
| Cost of
revenue |
153 |
|
- |
- |
|
153 |
|
- |
- |
|
| Sales and
marketing |
544 |
|
- |
- |
|
544 |
|
- |
- |
|
| General and
administrative |
843,808 |
|
26,767 |
3,894 |
|
846,139 |
|
75,809 |
11,027 |
|
| Research and
development |
15,259 |
|
309 |
45 |
|
15,259 |
|
829 |
121 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Uxin
Limited |
|
| Unaudited
Reconciliations of GAAP And Non-GAAP from Continuting Operation
Results |
|
| (In
thousands except for number of shares and per share
data) |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
|
Loss from continuing operations |
(1,257,613 |
) |
|
(342,317 |
) |
(49,794 |
) |
|
(1,696,756 |
) |
|
(723,833 |
) |
(105,291 |
) |
|
| Add:
Share-based compensation expenses |
859,764 |
|
|
27,076 |
|
3,939 |
|
|
862,095 |
|
|
76,638 |
|
11,148 |
|
|
|
- Cost of revenue |
153 |
|
|
- |
|
- |
|
|
153 |
|
|
- |
|
- |
|
|
|
- Sales and marketing |
544 |
|
|
- |
|
- |
|
|
544 |
|
|
- |
|
- |
|
|
|
- General and administrative |
843,808 |
|
|
26,767 |
|
3,894 |
|
|
846,139 |
|
|
75,809 |
|
11,027 |
|
|
|
- Research and development |
15,259 |
|
|
309 |
|
45 |
|
|
15,259 |
|
|
829 |
|
121 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted loss from continuing
operations |
(397,849 |
) |
|
(315,241 |
) |
(45,855 |
) |
|
(834,661 |
) |
|
(647,195 |
) |
(94,143 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
| |
|
|
|
|
|
|
|
|
|
| Net
income/(loss) from continuing operations |
285,059 |
|
|
(359,944 |
) |
(52,359 |
) |
|
(509,744 |
) |
|
(745,524 |
) |
(108,447 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
| Add:
Share-based compensation expenses |
859,764 |
|
|
27,076 |
|
3,939 |
|
|
862,095 |
|
|
76,638 |
|
11,148 |
|
|
|
- Cost of revenue |
153 |
|
|
- |
|
- |
|
|
153 |
|
|
- |
|
- |
|
|
|
- Sales and marketing |
544 |
|
|
- |
|
- |
|
|
544 |
|
|
- |
|
- |
|
|
|
- General and administrative |
843,808 |
|
|
26,767 |
|
3,894 |
|
|
846,139 |
|
|
75,809 |
|
11,027 |
|
|
|
- Research and development |
15,259 |
|
|
309 |
|
45 |
|
|
15,259 |
|
|
829 |
|
121 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Fair
value change of derivative liabilities |
(1,544,205 |
) |
|
- |
|
- |
|
|
(1,185,090 |
) |
|
- |
|
- |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net loss from continuing
operations |
(399,382 |
) |
|
(332,868 |
) |
(48,420 |
) |
|
(832,739 |
) |
|
(668,886 |
) |
(97,299 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP
adjusted net loss from continuing operations per share – basic |
(3.96 |
) |
|
(0.38 |
) |
(0.05 |
) |
|
(11.07 |
) |
|
(0.76 |
) |
(0.11 |
) |
|
| Non-GAAP
adjusted net loss from continuing operations per share –
diluted |
(3.96 |
) |
|
(0.38 |
) |
(0.05 |
) |
|
(11.07 |
) |
|
(0.76 |
) |
(0.11 |
) |
|
| Weighted
average shares outstanding – basic |
100,856,242 |
|
|
882,761,118 |
|
882,761,118 |
|
|
75,229,919 |
|
|
882,252,863 |
|
882,252,863 |
|
|
| Weighted
average shares outstanding – diluted |
100,856,242 |
|
|
882,761,118 |
|
882,761,118 |
|
|
75,229,919 |
|
|
882,252,863 |
|
882,252,863 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Note: The conversion
of Renminbi (RMB) into U.S. dollars (USD) is based on the certified
exchange rate of USD1.00 = RMB6.8747 as of the end of June 2019
stipulated by the People’s Bank of China. |
|
| |
|
|
|
|
|
|
|
|
|
|
Uxin (NASDAQ:UXIN)
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