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 transition period from January
1 to March 31, 2020. On April 26, 2020, Uxin’s board of directors
approved a change of fiscal year end from December 31 to March 31.
The Company will also file a report on Form 20-F for the transition
period from January 1 to March 31, 2020 (the “Transition Period”)
with the Securities and Exchange Commission today.
Letter to ShareholdersSo far
this year, 2020 has presented just as many challenges for our
business as it has created exciting achievements, marking another
significant milestone for Uxin. In addition to the divestiture of
the loan facilitation business, we also successfully removed all
historical guarantee obligations, as we transferred XW Bank-related
loans to Golden Pacer and settled the remaining guarantee
liabilities associated with the historically-facilitated loans for
the other major financing partner of ours. These achievements have
enabled us to fully resolve our auto financing-related issues so we
can focus squarely on our streamlined 2C online used car
transaction business while driving sustainable growth for you, our
shareholders.
As a first mover in China’s used car market, we
believe that auto financing is a natural and convenient option to
facilitate the desire to buy a used car. Built on the foundation of
this belief and our expertise in the used car industry, we
initiated partnership with our financing partners under the
business model of loan facilitation, but we needed to provide
guarantees for all facilitated loans. As large as the market
opportunity is for used car financing, and as much as our
financing-related volume grew rapidly in recent years, these
guarantee liabilities have, in fact, put significant pressure on
our cashflow. We also experienced a tightening regulatory
environment for the overall financing industry and an overall
economic downturn, which only intensified the pressure we faced. As
we continue to operate in this environment, we believe that
well-funded banks and licensed financial institutions are better
positioned to play their role as a loan provider, while also taking
on the credit risk, given their strong skills in risk management
and capacity for higher risk tolerance.
With the drag of guarantee liabilities behind
us, Uxin ushers in a new phase of development. We have evolved from
a financing-oriented platform to a transaction-centric online used
car dealer who offers quality value-for-money used cars, premium
purchasing services and online one-stop convenience. These key
value propositions have reshaped our core customer base into a
group of consumers who are willing to pay for quality and premium
services. To further enhance customer experience, we upgraded our
used car transaction value chain and migrated every sales step
online. We developed a team of inventory selectors to discover the
highest quality cars that offer the best value for money from a
national pool of cars. Only these qualified cars are then eligible
to be inspected and listed on our platform. We are also in the
process of planning advanced refurbishments to further enhance car
quality. We replaced our offline sales team with an online
consulting team that delivers timely vehicle consulting services
and facilitates a seamless self-service purchasing experience. We
also enhanced the responsiveness and quality of our aftersales
services to ensure high customer satisfaction. Our differentiated
product and service offering is critical for alleviating customers’
concerns about buying used cars online. Our expanded value
proposition has strengthened the Uxin brand, built trust in our
service, improved the customer experience and increased NPS (net
promotion scores) among customers. We strongly believe that
creating meaningful customer value and earning customer trust are
key to establishing a stronger competitive advantage and barrier to
entry, and this is a core strategic goal that will allow Uxin to
drive sustainable long-term growth.
Equally as important, I want to highlight that
the transformation of our business and service model is not just
about cost savings, but rather about fundamentally optimizing our
overall cost structure, increasing long-term operational efficiency
and improving cashflow. Our focus on selecting “best value” used
cars effectively reduces inspector headcount, so we only need to
dedicate inspection resources to a smaller number of better
value-for-money cars. In addition, a simplified transaction
process, coupled with transparent pricing, lowers the reliance on
salespeople who used to meet customers in person to navigate the
complex process of buying a used car. As a result, our current
online sales team is only about one-tenth the size of the previous
offline team. With a fundamentally optimized cost structure in
place, we believe we have created a clear path to profitability and
thus are better positioned to create long-term value for our
shareholders. We are confident that the net effect will reinforce
our competitive advantages and further differentiate us from our
peers.
We believe that online purchasing of used cars
in China will continue to grow and we are excited about the
opportunities going forward. While focused on future growth, we are
also cognizant of the challenges we are facing. The first one
relates to how we can better serve customers who need financing
plans. When we provided loan facilitation services and took on the
credit risk, we had better control on loan approval rates,
approving efficiency and flexibility of financing options. Without
providing this service and providing guarantees, we now rely on
developing a best-in-class used car finance supermarket to meet
customers’ diversified needs. Given the current weakened economic
environment, banks and financial institutions all tend to take a
more conservative approach in carrying out financing business. As a
result, it will take some lead time before approval rates reach a
satisfactory level and more financing options are available in the
supermarket. We are actively working with our financing partners to
find the right balance between growing scale and managing risk.
The second challenge is that it takes time to
build Uxin as a trusted online dealer. On top of quality
value-for-money used cars, we must focus on providing the best
possible services to each of our customers. To achieve this
long-term goal, we will have to pass on selling those used cars
that have seemingly competitive pricing but are unable to meet our
quality requirements. Building reputation takes time, but a trusted
brand will create a more sustainable growth trajectory.
China’s used car market has great growth
potential, but customers have been underserved for quite a long
time. With a determination to become our customers’ most trusted
online car vendor, we aim to become the first company in the
industry who wholeheartedly creates meaningful and long-lasting
customer value. We will only sell a car to our customers that we
would also sell to our most loved friends and family. This is our
pledge and though we understand the challenge in taking this
approach, we firmly believe that it is the best way to achieve
sustainable success.
For almost a decade, Uxin has built a well-known
brand, focused on developing strong and integrated capabilities in
conducting professional and high-standard car inspections,
providing services across the supply chain and offering
well-rounded warranty programs and aftersales services. All have
been building blocks in bolstering the strategic online
transformation of our business and service model.
There is no better time than now to face our
challenges head-on and seize the opportunity before us. We believe
this approach underpins the long-term strategy that will elevate
Uxin to the next stage of growth and development, and we are
excited about our ability to create unique and optimal customer
value, and by so doing, also generate sustainable long-term value
for our shareholders.
Kun DaiChairman and Chief Executive Officer Uxin
Limited
Transition Period HighlightsThe
Company’s results for the Transition Period has been materially and
adversely affected by the COVID-19 pandemic. During this period,
the Company expedited its ongoing transformation of the entire used
car transaction process and migrated every sales step online.
- 2C transaction volume was 6,584 units for the
three months ended March 31, 2020, compared with 20,647 in the same
period last year.
- 2C GMV1 was RMB723 million for the three
months ended March 31, 2020, compared with RMB2,268 million in the
same period last year.
- Total revenues were RMB103.9 million (US$14.7
million) for the three months ended March 31, 2020, compared with
RMB335.8 million in the same period last year.
- 2C revenue was RMB88.5 million (US$12.5
million) for the three months ended March 31, 2020, compared with
RMB284.3 million in the same period last year.
- Gross margin was negative 6.6% for the three
months ended March 31, 2020, compared with a gross margin of 53.4%
in the same period last year.
- Loss from continuing operations was RMB2,186.0
million (US$308.7 million) for the three months ended March 31,
2020, compared with RMB295.0 million in the same period last year.
Loss from continuing operations primarily resulted from a
significant provision for credit losses of RMB1,939.6 million
recorded for the quarter.
- Non-GAAP adjusted loss from continuing
operations was RMB2,218.1 million (US$313.3 million) for
the three months ended March 31, 2020, compared with RMB245.5
million in the same period last year. On a non-GAAP basis, loss
from continuing operations was also materially impacted by a
significant provision for credit losses recorded for the
quarter.
- Net loss from continuing operations was
RMB2,034.4 million (US$287.3 million) for the three months ended
March 31, 2020, compared with RMB295.5 million in the same period
last year. Net loss from continuing operations primarily resulted
from a significant provision for credit losses of RMB1,939.6
million recorded for the quarter.
- Non-GAAP adjusted net loss from continuing
operations was RMB2,066.5 million (US$291.8 million) for
the three months ended March 31, 2020, compared with RMB246.0
million in the same period last year. On a non-GAAP basis, net loss
from continuing operations was also materially impacted by a
significant provision for credit losses recorded for the
quarter.
Transition Period Financial
ResultsTotal revenues were RMB103.9
million (US$14.7 million) for the three months ended March 31,
2020, compared with RMB335.8 million in the same period last year.
The decrease was primarily due to decreases in 2C transaction
volume and GMV as a result of the disruptions caused by the
COVID-19 pandemic to the Company’s business operations.
2C revenue was RMB88.5 million
(US$12.5 million) for the three months ended March 31, 2020,
compared with RMB284.3 million in the same period last year. 2C
online used car transaction volume was 6,584 units for the three
months ended March 31, 2020, compared with 20,647 units in the same
period last year; and corresponding 2C GMV was RMB723 million,
compared with RMB2,268 million in the same period last year.
- Commission revenue was RMB48.0 million (US$6.8
million) for the three months ended March 31, 2020, compared with
RMB148.8 million in the same period last year. The decrease was
primarily due to decreases in transaction volume and GMV.
Commission rate2 expanded to 6.6% for the three months ended March
31, 2020 from 6.3% in the previous quarter as a result of the
Company’s strong pricing power bolstered by its unique offerings of
nationwide selection of best value-for-money used cars as well as
quality transaction services to consumers.
- Value-added service revenue was RMB40.5
million (US$5.7 million) for the three months ended March 31, 2020,
compared with RMB135.5 million in the same period last year. The
decrease was primarily due to decreases in transaction volume and
GMV. VAS take rate3 slightly increased to 5.6% for the three months
ended March 31, 2020 from 5.5% in the previous quarter as a result
of our increasingly enhanced and diversified services.
Other revenue4 was RMB15.4
million (US$2.2 million) for the three months ended March 31, 2020,
compared with RMB51.5 million in the same period last year.
Cost of revenues was RMB110.7
million (US$15.6 million) for the three months ended March 31,
2020, representing a decrease of 29.2% from RMB156.4 million in the
same period last year. The decrease was primarily due to a decrease
in salaries and benefits for employees engaged in car inspection,
quality control, customer service and after-sales services due to
the adoption of a flexible work-load based staffing program, as
well as a decrease in fulfillment cost due to a decrease in
transaction volume.
Gross margin was negative 6.6%
for the three months ended March 31, 2020, compared with a gross
margin of 53.4% in the same period last year.
Total operating expenses were
RMB2,235.2 million (US$315.7 million) for the three months ended
March 31, 2020. Total operating expenses excluding the impact of
share-based compensation were RMB2,267.3 million.
- Sales and marketing expenses
decreased by 45.2% year-over-year to RMB189.5 million (US$26.8
million) for the three months ended March 31, 2020. The decrease
was mainly due to a decrease in salaries and benefits expenses.
Share-based compensation expenses associated with sales and
marketing expenses were nil during the quarter.
- General and administrative expenses decreased
by 13.8% year-over-year to RMB74.9 million (US$10.6 million) for
the three months ended March 31, 2020. The decrease was mainly due
to a decrease in salaries and benefits as well as share-based
compensation expenses. General and administrative expenses
excluding the impact of share-based compensation were RMB104.9
million.
- Research and development expenses decreased by
4.5% year-over-year to RMB31.2 million (US$4.4 million) for the
three months ended March 31, 2020. The decrease was primarily due
to a decrease in salaries and benefits expenses. Research and
development expenses excluding the impact of share-based
compensation were RMB33.3 million.
- Loss from guarantee liabilities was nil for
the three months ended March 31, 2020. The Company incurred
guarantee liabilities associated with the remaining guarantee
obligations from its historically-facilitated loans which were not
transferred to Golden Pacer. The Company adopted Accounting
Standards Update (ASU) 2016-13, “Financial Instruments - Credit
Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments” on January 1, 2020 under a modified retrospective
method. Before the adoption of ASC 326, gain or loss related to
guarantee liabilities accounted for the under the greater of the
amount determined based on ASC 460 and the amount determined under
ASC 450 was recorded as “gain or loss from guarantee liabilities”.
After the adoption of ASC 326, expected credit losses of contingent
guarantee liabilities shall be accounted for in addition to and
separately from the stand ready guarantee liabilities accounted for
under ASC 460, and the provision for contingent guarantee
liabilities is currently recorded within “provision for credit
losses”; and the gain released from the stand ready guarantee
liabilities accounted for under ASC 460 is currently recorded
within “other operating income”.
- Provision for credit losses was RMB1,939.6
million (US$273.9 million) for the three months ended March 31,
2020. Due to the impact of the COVID-19 pandemic, a significant
impairment of RMB1,039.4 million was incurred as a result of the
adversely-affected performance of the Company’s
historically-facilitated loans, mainly including loans recognized
as a result of payment under the guarantee. After the adoption of
ASC 326, a provision of RMB804.3 million for contingent guarantee
liabilities measured under the current expected credit losses model
is recorded within “provision for credit losses”.
Loss from continuing operations
was RMB2,186.0 million (US$308.7 million) for the three months
ended March 31, 2020, compared with RMB295.0 million in the same
period last year. Loss from continuing operations was primarily due
to a significant provision for credit losses of RMB1,939.6 million
recorded for the quarter.
Non-GAAP adjusted loss from continuing
operations which excludes the impact of share-based
compensation was RMB2,218.1 million (US$313.3 million) for the
three months ended March 31, 2020, compared with RMB245.5 million
in the same period last year. On a non-GAAP basis, loss from
continuing operations was also materially impacted by a significant
provision for credit losses recorded for the quarter.
Net loss from continuing
operations was RMB2,034.4 million (US$287.3 million) for
the three months ended March 31, 2020, compared with RMB295.5
million in the same period last year. Net loss from continuing
operations was primarily due to a significant provision for credit
losses of RMB1,939.6 million recorded for the quarter.
Non-GAAP adjusted net loss from
continuing operations which excludes the impact of
share-based compensation was RMB2,066.5 million (US$291.8 million)
for the three months ended March 31, 2020, compared with RMB246.0
million in the same period last year. On a non-GAAP basis, net loss
from continuing operations was also materially impacted by a
significant provision for credit losses recorded for the
quarter.
As of March 31, 2020, the Company had cash and
cash equivalents of RMB342.5 million (US$48.4 million). The Company
has been incurring losses from operations since inception. The
Company incurred net losses from continuing operation of RMB2,034.4
million for the three months ended March 31, 2020. Accumulated
deficit amounted to RMB15,488.8 million as of March 31, 2020. The
COVID-19 pandemic has caused a general slowdown in economic
activity, and the weakened consumer confidence and spending power
resulted in a relatively slow recovery in transaction volumes.
These factors have adversely affected the Company’s business,
results of operations, financial condition and cash flows. Although
China’s economy has been gradually recovering in the past few
months, and the used car market has been slowly picking up since
April 2020 as the industry’s infrastructure and supply chain
started to resume operations, it may continue to bring significant
challenges and uncertainties to the market given the fact that the
COVID-19 pandemic is still evolving and its full impact will still
depend on future developments. Therefore, the ultimate impact of
COVID-19 on the Company cannot be precisely determined at this
time. These conditions and uncertainties could cast substantial
doubt on the Company’s ability to continue as a going concern.
In response to the situation, the Company has
taken actions to improve its liquidity and cash position. As
disclosed in the section titled “Recent Update” below, the Company
entered into a supplemental agreement with one of its major
financing partners to settle its remaining guarantee liabilities
associated with the historically-facilitated loans with an agreed
amount by instalment payment over a period from 2020 to 2025, which
minimizes cash flow commitment in next few years. In addition, the
Company entered into agreements with one of its convertible note
holders to adjust the repayment plan for the convertible notes.
With these agreements in place, the Company’s liquidity and cash
position will be significantly improved. More importantly, the
Company has also proactively taken actions to fundamentally
optimize its overall cost structure by upgrading its business and
service model and implemented other cost control measures. For
example, the Company has streamlined overall operations by better
allocating inspection resources and deploying an online sales
consultant team to provide services more efficiently. Considering
all the actions mentioned above, which have alleviated the
substantial doubt of the Company’s ability to continue as a going
concern, the Company believes that its current cash and cash
equivalents, cash considerations received from recent divestiture
transactions and the anticipated cash flows from operations will be
sufficient to meet its anticipated working capital requirements for
the next 12 months.
Recent Update
- Settlement of Guarantee Liabilities Associated with
Historically-facilitated Loans On July 23, 2020, the
Company entered into a supplemental agreement with WeBank to settle
the Company’s remaining guarantee liabilities associated with the
historically-facilitated loans for WeBank. Pursuant to the
agreement, the Company will pay an aggregate amount of RMB372
million to WeBank from 2020 to 2025 in instalments based on an
agreed upon settlement schedule, pursuant to which, the settlement
amount for any single year will be no more than RMB84 million. Upon
the signing of the supplemental agreement, the Company is no longer
subject to guarantee obligations in relation to its
historically-facilitated loans for WeBank under the condition that
the Company makes the instalment payment based on the agreed
schedule.
- Amendment to the Company’s Convertible NotesOn
July 23, 2020, the Company entered into agreements with
PacificBridge Asset Management (“PacificBridge”) to amend the terms
of the convertible notes in an aggregate principal amount of US$50
million that were issued by the Company to the affiliate of
PacificBridge between July and November 2019. Pursuant to the
agreements, the parties have agreed that the conversion prices of
the original convertible notes will be adjusted down to a
discounted price of the Company’s volume weighted average price for
the last 30 trading days prior to the signing of the agreements,
and PacificBridge will convert all the convertible notes into the
Company’s Class A ordinary shares upon the signing of the
agreements. As of the date of this earnings release, PacificBridge
has converted all the convertible notes it held into 136,279,973
Class A ordinary shares of the Company at the discounted
price.
Business OutlookFor the three
months ended June 30, 2020, taking into account the overall impact
of the COVID-19 pandemic as well as business divestitures, Uxin
expects total revenues from continuing operations to be in the
range of RMB60 million to RMB65 million. This forecast reflects the
Company's current and preliminary views on the market and
operational conditions and is based upon the current situation and
uncertainties associated with the COVID-19 pandemic, which are
subject to change.
Conference CallThe Company’s
management will host an earnings conference call at 8:00 AM on July
24, 2020 U.S. Eastern Time (8:00 PM on July 24, 2020 Beijing/Hong
Kong time).
Due to the outbreak of COVID-19, operator
assisted conference calls are not available at the moment. All
participants must preregister online prior to the call to receive
the dial-in details.
Conference Call
PreregistrationParticipants can register for the
conference call by navigating to
http://apac.directeventreg.com/registration/event/5889109. Once
preregistration has been completed, participants will receive
dial-in numbers, an event passcode, and a unique registrant ID.
To join the conference, please dial the number
you receive, enter the event passcode followed by your unique
registrant ID, and you will be joined to the conference
instantly.
A telephone replay of the call will be available
after the conclusion of the conference call until July 31, 2020.
The dial-in details for the replay are as follows:
U.S.: |
+1 646 254
3697 |
International: |
+61 2 8199 0299 |
Conference ID: |
5889109 |
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 national online used car dealer in China. Uxin’s
mission is to enable people to buy the car of their choice online.
Uxin enables consumers to buy used cars online through its
innovative integrated online platform and offline service and
fulfilment networks, which takes care of each step of the
transaction process and covers the entire value chain. Its one-stop
online shopping mall provides consumers with a nationwide selection
of value-for-money used cars and various value-added products and
services as well as a full suite of offline supporting services to
fulfill these online transactions. Its extensive service network is
bolstered by its online sales consultant team and local agents,
covering over 250 prefecture-level cities throughout China. Its
comprehensive fulfillment network supports nationwide logistics and
delivery as well as title transfers between different cities across
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 RMB7.0808 to US$1.00,
representing the index rate as of the end of March 2020 stipulated
by the People’s Bank of China. The Company makes no representation
that the RMB or US$ 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 and media enquiries, please
contact: Nancy SongUxin Investor
RelationsTel: +86 10 5691-6765Email: ir@xin.com
Eric YuanChristensenTel: +86 10
5900 1548Email: uxin@christensenir.com
____________________________
1 GMV is gross merchandise value as measured by
gross selling price of used cars, excluding service fees
charged.
2 Commission rate is measured by 2C commission
revenue divided by 2C GMV.
3 VAS take rate is measured by 2C VAS revenue
divided by 2C GMV.
4 Other revenue mainly consists of the revenues
from salvage car business and other miscellaneous revenue
streams.
Uxin
Limited |
Unaudited
Consolidated Statements of Comprehensive Loss |
(In thousands except
for number of shares and per share data) |
|
|
|
|
|
|
For the three months ended March 31, |
|
2019 |
|
|
2020 |
|
|
RMB |
|
RMB |
US$ |
Revenues |
|
|
|
|
To
consumers (“2C”) |
|
|
|
|
- Commission revenue |
148,840 |
|
|
48,038 |
|
6,784 |
|
-
Value-added service revenue |
135,475 |
|
|
40,456 |
|
5,713 |
|
Others |
51,476 |
|
|
15,367 |
|
2,170 |
|
Total revenues |
335,791 |
|
|
103,861 |
|
14,667 |
|
|
|
|
|
|
Cost of
revenues |
(156,372 |
) |
|
(110,714 |
) |
(15,636 |
) |
Gross profit |
179,419 |
|
|
(6,853 |
) |
(969 |
) |
|
|
|
|
|
Operating expenses |
|
|
|
|
Sales and
marketing |
(345,673 |
) |
|
(189,503 |
) |
(26,763 |
) |
General and
administrative |
(86,970 |
) |
|
(74,926 |
) |
(10,582 |
) |
Research and
development |
(32,634 |
) |
|
(31,176 |
) |
(4,403 |
) |
Loss from
guarantee liabilities (i) |
(9,188 |
) |
|
- |
|
- |
|
Provision
for credit losses (i) |
- |
|
|
(1,939,570 |
) |
(273,920 |
) |
Total operating expenses |
(474,465 |
) |
|
(2,235,175 |
) |
(315,668 |
) |
|
|
|
|
|
Other
operating income |
- |
|
|
56,043 |
|
7,915 |
|
|
|
|
|
|
Loss
from continuing operations |
(295,046 |
) |
|
(2,185,985 |
) |
(308,722 |
) |
|
|
|
|
|
Interest
income |
1,990 |
|
|
3,081 |
|
435 |
|
Interest
expenses |
(26,493 |
) |
|
(29,029 |
) |
(4,100 |
) |
Other
income |
25,140 |
|
|
2,420 |
|
342 |
|
Other
expenses |
(4,751 |
) |
|
(10,118 |
) |
(1,429 |
) |
Foreign
exchange losses |
(779 |
) |
|
(388 |
) |
(55 |
) |
Gain from
disposal of subsidiaries |
- |
|
|
179,020 |
|
25,282 |
|
Loss
from continuing operations before income tax expense |
(299,939 |
) |
|
(2,040,999 |
) |
(288,247 |
) |
Income tax
expense |
(1,556 |
) |
|
(326 |
) |
(46 |
) |
Equity in
income of affiliates |
5,956 |
|
|
6,940 |
|
980 |
|
Net
loss from continuing operations, net of tax |
(295,539 |
) |
|
(2,034,385 |
) |
(287,313 |
) |
Less: net
loss attributable to non-controlling interests shareholders |
(445 |
) |
|
(5,383 |
) |
(760 |
) |
Net
loss from continuing operations, attributable to UXIN
LIMITED |
(295,094 |
) |
|
(2,029,002 |
) |
(286,553 |
) |
|
|
|
|
|
Discontinued operations |
|
|
|
|
Income/(loss) from discontinued operations before income tax |
22,977 |
|
|
(455,177 |
) |
(64,283 |
) |
Income tax
expense |
(12,422 |
) |
|
- |
|
- |
|
Net
income/(loss) from discontinued operations |
10,555 |
|
|
(455,177 |
) |
(64,283 |
) |
Net
income/(loss) from discontinued operations attributable to UXIN
LIMITED |
10,555 |
|
|
(455,177 |
) |
(64,283 |
) |
|
|
|
|
|
Net
loss |
(284,984 |
) |
|
(2,489,562 |
) |
(351,596 |
) |
Less: net
loss attributable to non-controlling interests shareholders |
(445 |
) |
|
(5,383 |
) |
(760 |
) |
Net
loss attributable to UXIN LIMITED |
(284,539 |
) |
|
(2,484,179 |
) |
(350,836 |
) |
|
|
|
|
|
Net
loss |
(284,984 |
) |
|
(2,489,562 |
) |
(351,596 |
) |
Foreign
currency translation |
6,027 |
|
|
40,028 |
|
5,653 |
|
|
|
|
|
|
Total comprehensive loss |
(278,957 |
) |
|
(2,449,534 |
) |
(345,943 |
) |
Less: total
comprehensive loss attributable to non-controlling interests
shareholders |
(445 |
) |
|
(3,927 |
) |
(555 |
) |
Total comprehensive loss attributable to UXIN
LIMITED |
(278,512 |
) |
|
(2,445,607 |
) |
(345,388 |
) |
|
|
|
|
|
Net
loss attributable to ordinary shareholders |
(284,539 |
) |
|
(2,484,179 |
) |
(350,836 |
) |
Weighted
average shares outstanding – basic |
881,704,014 |
|
|
888,460,868 |
|
888,460,868 |
|
Weighted
average shares outstanding – diluted |
881,704,014 |
|
|
888,460,868 |
|
888,460,868 |
|
|
|
|
|
|
(Loss)/earnings per share for ordinary shareholders, basic |
|
|
|
|
Continuing
operations |
(0.33 |
) |
|
(2.28 |
) |
(0.32 |
) |
Discontinued
operations |
0.01 |
|
|
(0.51 |
) |
(0.07 |
) |
|
|
|
|
|
(Loss)/earnings per share for ordinary shareholders, diluted |
|
|
|
Continuing
operations |
(0.33 |
) |
|
(2.28 |
) |
(0.32 |
) |
Discontinued
operations |
0.01 |
|
|
(0.51 |
) |
(0.07 |
) |
|
|
|
|
|
(i) We have adopted ASU No. 2016-13, Financial Instruments—Credit
Losses (Topic 326) (“ASU 2016-13”) effective January 1, 2020 using
the modified retrospective method. Before the adoption of ASU
2016-13, gain or loss related to guarantee liabilities accounted
for under ASC 460 was recorded as “gain or loss from guarantee
liabilities”. After the adoption of ASU 2016-13, the gain released
from the guarantee liabilities accounted for under ASC 460 is
recorded within “other operating income” and the relevant credit
losses of guarantee liabilities are recorded within “provision for
credit losses”. |
|
|
Uxin
Limited |
Unaudited
Consolidated Balance Sheets |
(In thousands except
for number of shares and per share data) |
|
|
|
|
|
|
As of December 31, |
|
As of March 31, |
|
2019 |
|
|
2020 |
|
RMB |
|
RMB |
US$ |
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
478,200 |
|
|
342,504 |
|
48,371 |
|
Restricted
cash |
706,988 |
|
|
454,931 |
|
64,249 |
|
Accounts
receivable, net |
44,605 |
|
|
6,397 |
|
903 |
|
Amounts due
from related parties |
51,590 |
|
|
28,070 |
|
3,964 |
|
Advance to
consumers on behalf of financing partners |
2,135 |
|
|
- |
|
- |
|
Loan
recognized as a result of payment under the guarantee, net of
provision for credit losses of RMB763,122 and RMB2,190,575 as
of December 31, 2019, and March 31, 2020, respectively |
1,580,464 |
|
|
404,174 |
|
57,080 |
|
Advance to
sellers, net |
288,550 |
|
|
132,526 |
|
18,716 |
|
Other
receivables, net of provision for credit losses of RMB6,119 and
RMB51,666 as of December 31, 2019, and March 31, 2020,
respectively |
440,056 |
|
|
287,753 |
|
40,639 |
|
Inventory |
13,792 |
|
|
10,314 |
|
1,458 |
|
Prepaid
expenses and other current assets |
158,908 |
|
|
137,148 |
|
19,369 |
|
Financial
lease receivables, net of provision for credit losses of RMB23,157
and RMB27,250 as of December 31, 2019, and March 31, 2020,
respectively |
121,820 |
|
|
15,048 |
|
2,125 |
|
Assets held
for sale |
230,051 |
|
|
- |
|
- |
|
Net assets
transferred (i) |
827,710 |
|
|
420,000 |
|
59,315 |
|
Total current assets |
4,944,869 |
|
|
2,238,865 |
|
316,189 |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
Property,
equipment and software, net |
110,114 |
|
|
87,558 |
|
12,366 |
|
Intangible
assets, net |
190 |
|
|
139 |
|
20 |
|
Goodwill |
9,541 |
|
|
9,541 |
|
1,347 |
|
Long term
investments |
272,936 |
|
|
276,762 |
|
39,086 |
|
Right-of-use
assets, net |
45,446 |
|
|
34,466 |
|
4,868 |
|
Total non-current assets |
438,227 |
|
|
408,466 |
|
57,687 |
|
|
|
|
|
|
Total assets |
5,383,096 |
|
|
2,647,331 |
|
373,876 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY/(DEFICIT) |
|
|
|
Current liabilities |
|
|
|
|
Short-term
borrowings and current portion of long-term borrowings |
263,425 |
|
|
119,069 |
|
16,816 |
|
Accounts
payable |
127,836 |
|
|
132,357 |
|
18,692 |
|
Guarantee
liabilities (ii) |
388,307 |
|
|
910,949 |
|
128,651 |
|
Deposit of
interests from consumers and payable to financing partners –
current |
42,199 |
|
|
25,968 |
|
3,667 |
|
Advance from
buyers collected on behalf of sellers |
147,923 |
|
|
110,493 |
|
15,605 |
|
Other
payables and accruals |
1,302,292 |
|
|
1,175,914 |
|
166,072 |
|
Deferred
revenue |
54,267 |
|
|
50,348 |
|
7,110 |
|
Convertible
notes, current |
324,644 |
|
|
375,449 |
|
53,024 |
|
Operating
lease liabilities, current |
32,892 |
|
|
32,842 |
|
4,638 |
|
Liabilities
held for sale (iii) |
310,029 |
|
|
143,009 |
|
20,197 |
|
Total current liabilities |
2,993,814 |
|
|
3,076,398 |
|
434,472 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Long-term
borrowings |
241,026 |
|
|
234,585 |
|
33,130 |
|
Deposit of
interests from consumers and payable to financing partners,
non-current |
265 |
|
|
- |
|
- |
|
Convertible
bonds, non-current |
1,672,796 |
|
|
1,679,130 |
|
237,138 |
|
Operating
lease liabilities, non-current |
10,075 |
|
|
1,865 |
|
263 |
|
Total non-current liabilities |
1,924,162 |
|
|
1,915,580 |
|
270,531 |
|
|
|
|
|
|
Total liabilities |
4,917,976 |
|
|
4,991,978 |
|
705,003 |
|
|
|
|
|
|
Shareholders’ equity/(deficit) |
|
|
|
|
Ordinary
shares |
581 |
|
|
581 |
|
82 |
|
Additional
paid-in capital |
13,069,560 |
|
|
13,036,989 |
|
1,841,175 |
|
Accumulated
other comprehensive income |
68,192 |
|
|
106,764 |
|
15,078 |
|
Accumulated
deficit |
(12,669,165 |
) |
|
(15,488,827 |
) |
(2,187,440 |
) |
Total Uxin’s shareholders’ equity/(deficit) |
469,168 |
|
|
(2,344,493 |
) |
(331,105 |
) |
Non-controlling interests |
(4,048 |
) |
|
(154 |
) |
(22 |
) |
Total shareholders’ equity/(deficit) |
465,120 |
|
|
(2,344,647 |
) |
(331,127 |
) |
|
|
|
|
|
Total liabilities and shareholders’
equity/(deficit) |
5,383,096 |
|
|
2,647,331 |
|
373,876 |
|
|
|
|
|
|
(i) Pursuant to the supplemental agreements entered into with
Golden Pacer in April 2020, net assets transferred refers to the
pre-transferred net assets of XW Bank. (ii) The guarantee
liabilities are in relation to the historically-facilitated loans
for WeBank and other financing partners, which were not transferred
to Golden Pacer. We have adopted ASU No. 2016-13, Financial
Instruments—Credit Losses (Topic 326) (“ASU 2016-13”) effective
January 1, 2020 using the modified retrospective method. Before the
adoption of ASU 2016-13, gain or loss related to guarantee
liabilities accounted for under ASC 460 was recorded as “gain or
loss from guarantee liabilities”. After the adoption of ASU
2016-13, the gain released from the guarantee liabilities accounted
for under ASC 460 is recorded within “other operating income” and
the relevant credit losses of guarantee liabilities are recorded
within “provision for credit losses”. (iii) Liabilities held for
sales were related with the divestiture of 2B business. |
|
|
|
- |
|
- |
|
* Share-based compensation charges from continuing operations
included are as follows: |
|
|
|
|
|
|
For the three months ended March 31, |
|
2019 |
|
2020 |
|
|
RMB |
|
RMB |
US$ |
Cost of revenue |
- |
|
- |
|
- |
|
Sales and
marketing |
- |
|
- |
|
- |
|
General and
administrative |
49,043 |
|
(29,925 |
) |
(4,226 |
) |
Research and
development |
520 |
|
(2,158 |
) |
(305 |
) |
|
|
|
|
|
|
|
|
|
|
Uxin
Limited |
Unaudited
Reconciliations of GAAP And Non-GAAP from Continuing Operation
Results |
(In thousands except
for number of shares and per share data) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended March 31, |
2019 |
|
|
2020 |
|
RMB |
|
RMB |
US$ |
Loss from continuing operations |
(295,046 |
) |
|
(2,185,985 |
) |
(308,722 |
) |
Add:
Share-based compensation expenses |
49,563 |
|
|
(32,083 |
) |
(4,531 |
) |
- Cost of revenue |
- |
|
|
- |
|
- |
|
- Sales and marketing |
- |
|
|
- |
|
- |
|
- General and administrative |
49,043 |
|
|
(29,925 |
) |
(4,226 |
) |
- Research and development |
520 |
|
|
(2,158 |
) |
(305 |
) |
|
|
|
|
|
Non-GAAP adjusted loss from continuing
operations |
(245,483 |
) |
|
(2,218,068 |
) |
(313,253 |
) |
|
|
|
|
|
|
For the three months ended March 31, |
2019 |
|
|
2020 |
|
|
|
|
|
Net
loss from continuing operations |
(295,539 |
) |
|
(2,034,385 |
) |
(287,313 |
) |
|
|
|
|
|
Add:
Share-based compensation expenses |
49,563 |
|
|
(32,083 |
) |
(4,531 |
) |
- Cost of revenue |
- |
|
|
- |
|
- |
|
- Sales and marketing |
- |
|
|
- |
|
- |
|
- General and administrative |
49,043 |
|
|
(29,925 |
) |
(4,226 |
) |
- Research and development |
520 |
|
|
(2,158 |
) |
(305 |
) |
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net loss from continuing
operations |
(245,976 |
) |
|
(2,066,468 |
) |
(291,844 |
) |
|
|
|
|
|
Non-GAAP
adjusted net loss from continuing operations per share – basic |
(0.28 |
) |
|
(2.33 |
) |
(0.33 |
) |
Non-GAAP
adjusted net loss from continuing operations per share –
diluted |
(0.28 |
) |
|
(2.33 |
) |
(0.33 |
) |
Weighted
average shares outstanding – basic |
881,704,014 |
|
|
888,460,868 |
|
888,460,868 |
|
Weighted
average shares outstanding – diluted |
881,704,014 |
|
|
888,460,868 |
|
888,460,868 |
|
|
|
|
|
|
Note: The conversion of Renminbi (RMB) into U.S. dollars (USD) is
based on the certified exchange rate of USD1.00 = RMB7.0808 as of
the end of March 2020 stipulated by the Board of Governors of the
Federal Reserve System. |
|
|
|
|
|
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