Uxin Limited (“Uxin” or the “Company”) (Nasdaq: UXIN), a leading
nationwide online used car dealer in China, today announced its
unaudited financial results for the quarter ended September 30,
2020.
Highlights for the Quarter Ended September
30, 2020
- 2C transaction volume
(completed with the use of online sales) was 2,653 units
for the three months ended September 30, 2020, compared with 1,702
units in the prior quarter ended June 30, 2020. 2C transaction
volume (completed with the use of offline sales) was 23,566 units
in the same period last year.
- 2C
GMV1 was RMB293 million for the three
months ended September 30, 2020, compared with RMB2,828 million in
the same period last year.
- Total revenues
were RMB76.4 million (US$11.2 million) for the three months ended
September 30, 2020, compared with RMB396.6 million in the same
period last year.• 2C revenue was RMB61.3
million (US$9.0 million) for the three months ended September 30,
2020, compared with RMB334.3 million in the same period last
year.
- Gross margin was
negative 22.4% for the three months ended September 30, 2020,
compared with a gross margin of 56.9% in the same period last
year.
- Loss from continuing
operations was RMB162.6 million (US$23.9 million) for the
three months ended September 30, 2020, compared with RMB188.4
million in the same period last year.
- Non-GAAP adjusted loss from
continuing operations was RMB178.3 million (US$26.3
million) for the three months ended September 30, 2020, compared
with RMB189.6 million in the same period last year.
- Net loss from continuing
operations was RMB258.9 million (US$38.1 million) for the
three months ended September 30, 2020, compared with RMB202.3
million in the same period last year.
- Non-GAAP adjusted net loss
from continuing operations was RMB274.6 million (US$40.4
million) for the three months ended September 30, 2020, compared
with RMB203.5 million in the same period last year.
Mr. Kun Dai, Founder, Chairman and Chief
Executive Officer of Uxin, commented, “We are pleased with the
progress we made in better serving our customers as a nationwide
online used car dealer. Not only have we raised the bar in
delivering enhanced customer experience, but we also validated our
efforts by receiving improved customer satisfaction feedback during
the quarter. We started to shift to an “inventory-owning” model in
September 2020 and we are happy to report that we have successfully
made the transition. The completion of our business model upgrade
gives us better control over order flow and supply chain
management, and this further strengthens our ability to maximize
customer value through our dedicated approach: offering quality
value-for-money used cars alongside best-in-class purchasing
services.”
Mr. Dai added, “In fine-tuning our product and
service offerings, we focused on three initiatives during the
quarter ended September 30, 2020 to deliver better customer
experience – adopting stricter standards for the quality and
condition of our used cars, providing enhanced on-demand service
delivery, and shortening the waiting period between initial
ordering and final delivery of cars. As a result, we saw our net
promoter score (or NPS) significantly increase to 30 for the
reported quarter from only 10 for the quarter ended June 30, 2020.
It’s worth mentioning as well that our NPS exceeded 45 in the month
of September, demonstrating increasing traction of our products and
services as well as growing customer loyalty. As we benefit from
the improved customer satisfaction and greater willingness to
recommend Uxin to others, we are confident that we can secure
around 1,400 deposit-required purchase orders in December 2020. Our
dedication to offering quality value-for-money used cars and
best-in-class purchasing services, which are also our key growth
drivers, contributes markedly to satisfying the increasing demand
from a new group of customers who are more willing to pay a premium
for high-quality cars and services. Although the expansion of our
customer base and increase in transaction volume, catalyzed by
these two drivers, presents us with a different growth trajectory,
we believe this customer type has the potential to consistently
contribute to our long-term growth as we are already starting to
receive more purchase orders from customer referrals. Once we hit
critical mass as our new customer base expands, we believe that
customer trust and word-of-mouth referrals will translate into
solid and sustainable long-term volume growth, further solidifying
our brand and market position. This will provide a firm foundation
for our future business development and for generating more
long-term value for shareholders.”
Mr. Zhen Zeng, Chief Financial Officer of Uxin,
said, “As we made the transition to an “inventory-owning” model, we
continue to enhance operational efficiency across the board. Our
focus on handpicking used cars now enables us to allocate our
inspection resources to only specific qualified cars and helps to
optimize inspection costs. In addition, we have been able to reduce
sales and relevant administrative expenses as we streamlined our
sales process by migrating every sales step online. With a
fundamentally optimized cost and expense structure in place, we
believe that we will achieve better operating leverage in the long
term as we achieve scale, strengthen trust in the Uxin brand and
benefit from positive word-of-mouth referrals among customers.”
Financial Results for the Quarter Ended
September 30, 2020Total revenues were
RMB76.4 million (US$11.2 million) for the three months ended
September 30, 2020, compared with RMB396.6 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 Company’s business
model transformation and partially offset by the revenue recognized
on a gross basis as a result of the Company’s selling of its own
used car inventory. Uxin has upgraded its entire used car
transaction process and migrated every sales step online since June
2020, as it began to build its customer base with the use of online
sales staff as opposed to an offline sales team.
2C revenue was RMB61.3 million
(US$9.0 million) for the three months ended September 30, 2020,
compared with RMB334.3 million in the same period last year. For
the three months ended September 30, 2020, 2C used car transaction
volume completed by online sales was 2,653 units (corresponding 2C
GMV was RMB293 million) which includes 308 units sold from the
Company’s owned inventory (corresponding 2C GMV was RMB36 million).
In comparison, 2C used car transaction volume completed by offline
sales was 23,566 units (corresponding GMV was RMB2,828 million) in
the same period last year.
- Commission revenue
was RMB13.2 million (US$1.9 million) for the three months ended
September 30, 2020, compared with RMB176.2 million in the same
period last year. The decrease was primarily due to decreases in
transaction volume and GMV. Commission rate2 decreased to 5.2% for
the three months ended September 30, 2020 from 6.2% in the same
period last year. The decrease in commission rate was primarily due
to the Company’s lowering of transaction fees since August 2020 in
order to offer more competitive prices to customers.
- Value-added service
revenue was RMB12.0 million (US$1.8 million) for the three
months ended September 30, 2020, compared with RMB158.2 million in
the same period last year. The decrease was primarily due to
decreases in transaction volume and GMV. VAS take rate3 decreased
to 4.7% for the three months ended September 30, 2020 from 5.6% in
the same period last year as a result of the Company’s reduced
service fees since August 2020 in order to offer more competitive
prices to customers.
- Vehicle sales
revenue was RMB36.1 million (US$5.3 million) for the three
months ended September 30, 2020, compared with nil in the same
period last year. Vehicle sales revenue is recognized on a gross
basis when the Company sells its own inventory. Uxin shifted to an
“inventory-owning” model since September 2020 as disclosed in the
earnings release of the first quarter of fiscal year 2021.
Other revenue4
was RMB15.1 million (US$2.2 million) for the three months ended
September 30, 2020, compared with RMB62.2 million in the same
period last year. The decrease was mainly due to the divestiture of
the Company’s salvage car related business in January 2020.
Cost of revenues was RMB93.5
million (US$13.8 million) for the three months ended September 30,
2020, representing a decrease of 45.3% from RMB170.9 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, as well
as a decrease in fulfillment cost due to lower transaction volume;
but was partially offset by an increase in vehicle acquisition
costs relating to the Company’s building of its own inventory since
September 2020.
Gross margin was negative 22.4%
for the three months ended September 30, 2020, compared with a
gross margin of 56.9% in the same period last year.
Total operating expenses were
RMB318.5 million (US$46.9 million) for the three months ended
September 30, 2020. Total operating expenses excluding the impact
of share-based compensation were RMB334.2 million.
- Sales and marketing
expenses decreased by 74.0% year-over-year to RMB75.5
million (US$11.1 million) for the three months ended September 30,
2020. The decrease was mainly due to a decrease in salaries and
benefits expenses as a result of headcount reduction as well as a
decrease in marketing expenses. Sales and marketing expenses
excluding the impact of share-based compensation were RMB75.5
million.
- General and administrative
expenses decreased by 18.1% year-over-year to RMB55.9
million (US$8.2 million) for the three months ended September 30,
2020. The decrease was mainly due to a reverse in share-based
compensation expenses as a result of forfeitures incurred by the
termination of employment. General and administrative expenses
excluding the impact of share-based compensation were
RMB70.5million.
- Research and development
expenses decreased by 45.0% year-over-year to RMB19.1
million (US$2.8 million) for the three months ended September 30,
2020. The decrease was primarily due to a decrease in salaries and
benefits expenses as a result of headcount reduction. Research and
development expenses excluding the impact of share-based
compensation were RMB20.0 million.
- Loss from guarantee
liabilities was nil for the three months ended September
30, 2020. The Company incurred guarantee liabilities associated
with the remaining guarantee obligations from its
historically-facilitated loans that 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 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, net was RMB168.1 million (US$24.8 million) for the
three months ended September 30, 2020. In order to settle the
Company’s remaining guarantee liabilities, the Company entered into
a supplemental agreement on April 23, 2020 (the “April Agreement”)
with one of its major financing partners with regards to the
Company’s historically-facilitated loans. Pursuant to the April
Agreement, such financing partner agreed to set a cap on the amount
of cash the Company would use to fulfil its guarantee obligations
from 2020 to 2022. As a result, a release of contingent guarantee
liabilities of RMB86.0 million was recognized for the quarter ended
June 30, 2020 representing the time value of potential cash
outflow. Subsequently on July 23, 2020, the Company entered into
another supplemental agreement (the “July Agreement”), which
amended and restated the April Agreement, with the aforementioned
financing partner to entirely settle its remaining guarantee
liabilities associated with the historically-facilitated loans for
this financing partner. Pursuant to the July Agreement, the Company
is entitled to settle all its remaining guarantee liabilities under
the condition that the Company pays the settlement amount in
instalments from 2020 to 2025 based on an agreed schedule. As a
result, the aforementioned previously recorded time value of the
contingent guarantee liabilities in the amount of RMB83.7 million
was reversed, based on the time value determined up to August 8,
2020, which was the closing day of the July Agreement.
Loss from continuing operations
was RMB162.6 million (US$23.9 million) for the three months ended
September 30, 2020, compared with RMB188.4 million in the same
period last year.
Non-GAAP adjusted loss from continuing
operations which excludes the impact of share-based
compensation was RMB178.3 million (US$26.3 million) for the three
months ended September 30, 2020, compared with RMB189.6 million in
the same period last year.
Net loss from continuing
operations was RMB258.9 million (US$38.1 million) for the
three months ended September 30, 2020, compared with RMB202.3
million in the same period last year.
Non-GAAP adjusted net loss from
continuing operations which excludes the impact of
share-based compensation was RMB274.6 million (US$40.4 million) for
the three months ended September 30, 2020, compared with RMB203.5
million in the same period last year.
As of September 30, 2020, the Company had cash
and cash equivalents of RMB219.3 million (US$32.3 million).
LiquidityThe COVID-19 pandemic
has caused a general slowdown in economic activity, and weakened
consumer confidence and spending power resulted in a relatively
slow recovery in transaction volumes. These factors have materially
and adversely affected the Company’s business, results of
operations, financial condition and cash flows. Although China’s
economy has been gradually recovering 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, the
impact of the pandemic may continue to create significant
challenges and uncertainties for the market environment as the
COVID-19 pandemic is still evolving and its full impact will still
depend on future developments.
In response to the current economic situation,
the Company has taken actions to improve its liquidity and cash
position. As disclosed in the earnings release for the quarter
ended June 30, 2020, the Company entered into a final supplemental
agreement in July 2020 with a financing partner to settle its
remaining guarantee liabilities associated with
historically-facilitated loans. Under the final supplemental
agreement, the Company is able to settle its obligations by making
installment payments through 2025, which will limit the Company’s
cash outflow commitments over the next few years to a set amount
and relieve the Company of any relevant guarantee liabilities after
the full amount is paid. The Company also entered into agreements
with one of its convertible note holders in July 2020 to convert
the notes into the Company’s Class A ordinary shares, and thereby
eliminate the obligation to repay the notes in cash. In addition,
the Company entered into definitive agreements in October 2020 with
two investors to issue and sell in an aggregate of 84,692,839 Class
A ordinary shares for an aggregate consideration of approximately
US$25,000,000. Pursuant to the agreements, the proceeds were
received in October 2020. With these agreements in place, the
Company’s immediate liquidity position has been significantly
improved. Looking forward, the Company will continue to negotiate
with alternative financing partners who can provide more choices
for financing solutions for the Company’s customers when buying a
car. The Company is also actively working on several other
financing projects to further improve liquidity and its cash
position. The Company has also controlled its cash outflows by
bringing down overall costs and expenses through the upgrade of its
used car transaction process and migration of its entire sales
process online, as well as streamlining its business
operations.
However, the continuing impact of the COVID-19
pandemic continues to create significant challenges and
uncertainties for the market environment, which could continue to
negatively impact the demand for used cars. Also, the Company’s
business plan includes several significant assumptions. These
assumptions include the increasing demand for used cars over the
next twelve months, the successful implementation of the Company’s
program to build a used car inventory, the ability to successfully
negotiate with financing partners and the ability to control costs
and outgoing cash flows. These significant assumptions reflect the
Company’s current judgement and are subject to uncertainties. In
addition, the financing projects that the Company is working on are
subject to certain uncertainties. These conditions and
uncertainties cast substantial doubt on the Company’s ability to
pay obligations as they become due over the next twelve months,
which would impact the Company’s ability to continue as a going
concern. Taking into consideration the ongoing evolution of the
COVID-19 pandemic, if the Company is successful in executing the
aforementioned business plan and its ongoing financing projects,
management believes that the Company will have sufficient liquidity
for at least the next twelve months of operations.
Recent UpdateOn October 6,
2020, the Company separately entered into definitive agreements
with two investors, pursuant to which Uxin issued and sold an
aggregate of 84,692,839 Class A ordinary shares to these investors
through private placements for an aggregate purchase price of
approximately US$25,000,000 (the “Private Placements”). The Private
Placements were closed in October 2020.
Business OutlookWith the
adoption of an “inventory-owning” model, Uxin expects its total
revenues to be in the range of RMB275 million to RMB290 million for
the three months ended December 31, 2020. 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
December 17, 2020 U.S. Eastern Time (9:00 PM on December 17, 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/1058883. 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 December 24,
2020. The dial-in details for the replay are as follows:
U.S.: |
+1 646 254
3697 |
International: |
+61 2 8199 0299 |
Conference ID: |
1058883 |
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 nationwide online used car dealer in China. With
its offerings of high-quality used cars and best-in-class
purchasing services, Uxin’s mission is to enable people to buy the
car of their choice online. Uxin’s one-stop online shopping mall
provides consumers with a nationwide selection of value-for-money
used cars, various value-added products and services as well as
comprehensive aftersales services. Its online sales consultants
offer professional consulting to facilitate a convenient and
efficient car purchase for consumers in a timely fashion. Its
comprehensive fulfillment network supports nationwide logistics and
delivery as well as title transfers between different cities across
China so as to fulfill these online transactions.
Use of Non-GAAP Financial
Measures In evaluating the business, the Company considers
and uses a non-GAAP measure, adjusted loss from continuing
operations, adjusted net (loss)/income from continuing operations
and adjusted net (loss)/earnings from continuing operations 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 continuing
operations excluding share-based compensation. The Company defines
adjusted net (loss)/income from continuing operations as net
(loss)/income from continuing operations excluding share-based
compensation. 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)/income from continuing operations enables management to
assess the Company’s operating results without considering the
impact of share-based compensation, 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.
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)/income from continuing operations is that it does not
reflect all items of income and expense that affect the Company’s
operations. Share-based compensation has 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 RMB6.7896 to US$1.00,
representing the index rate as of September 30, 2020 set forth in
the H.10 statistical release of the Board of Governors of the
Federal Reserve System. The Company makes no representation that
the RMB or US$ 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: 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 commission revenue divided by
non-inventory 2C GMV.3 VAS take rate is measured by VAS revenue
divided by non-inventory 2C GMV.4 Other revenue mainly consists of
revenue streams from advertising and the selling of sales leads in
relation to consumers who want to sell their existing cars.
|
Uxin Limited |
Unaudited Consolidated Statements of Comprehensive
Loss |
(In thousands except for number of shares and per share data) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, |
|
For the six months ended September 30, |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
Revenues |
|
|
|
|
|
|
|
|
|
To consumers (“2C”) |
|
|
|
|
|
|
|
|
|
- Commission revenue |
176,169 |
|
|
13,221 |
|
1,947 |
|
|
355,070 |
|
|
41,803 |
|
6,157 |
|
- Value-added service revenue |
158,165 |
|
|
11,971 |
|
1,763 |
|
|
320,219 |
|
|
35,102 |
|
5,170 |
|
- Vehicle sales revenue |
- |
|
|
36,108 |
|
5,318 |
|
|
- |
|
|
36,108 |
|
5,318 |
|
Others |
62,243 |
|
|
15,065 |
|
2,219 |
|
|
110,586 |
|
|
25,580 |
|
3,768 |
|
Total revenues |
396,577 |
|
|
76,365 |
|
11,247 |
|
|
785,875 |
|
|
138,593 |
|
20,413 |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
(170,891 |
) |
|
(93,484 |
) |
(13,769 |
) |
|
(342,584 |
) |
|
(173,396 |
) |
(25,538 |
) |
Gross profit/(loss) |
225,686 |
|
|
(17,119 |
) |
(2,522 |
) |
|
443,291 |
|
|
(34,803 |
) |
(5,125 |
) |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
Sales and marketing |
(290,650 |
) |
|
(75,526 |
) |
(11,124 |
) |
|
(584,314 |
) |
|
(191,276 |
) |
(28,172 |
) |
General and administrative |
(68,196 |
) |
|
(55,851 |
) |
(8,226 |
) |
|
(190,565 |
) |
|
(142,749 |
) |
(21,025 |
) |
Research and development |
(34,673 |
) |
|
(19,068 |
) |
(2,808 |
) |
|
(66,570 |
) |
|
(41,873 |
) |
(6,167 |
) |
Loss from guarantee liabilities |
(22,463 |
) |
|
- |
|
- |
|
|
(15,316 |
) |
|
- |
|
- |
|
Provision for credit losses, net |
- |
|
|
(168,078 |
) |
(24,755 |
) |
|
- |
|
|
(94,056 |
) |
(13,853 |
) |
Total operating expenses |
(415,982 |
) |
|
(318,523 |
) |
(46,913 |
) |
|
(856,765 |
) |
|
(469,954 |
) |
(69,217 |
) |
|
|
|
|
|
|
|
|
|
|
Other operating income (i) |
1,915 |
|
|
173,044 |
|
25,487 |
|
|
1,915 |
|
|
213,796 |
|
31,489 |
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations |
(188,381 |
) |
|
(162,598 |
) |
(23,948 |
) |
|
(411,559 |
) |
|
(290,961 |
) |
(42,853 |
) |
|
|
|
|
|
|
|
|
|
|
Interest income |
7,177 |
|
|
42,704 |
|
6,290 |
|
|
11,165 |
|
|
43,840 |
|
6,457 |
|
Interest expenses |
(29,796 |
) |
|
(23,916 |
) |
(3,522 |
) |
|
(56,236 |
) |
|
(52,885 |
) |
(7,789 |
) |
Other income |
9,760 |
|
|
3,102 |
|
457 |
|
|
15,613 |
|
|
4,999 |
|
736 |
|
Other expenses |
(16,458 |
) |
|
(1,668 |
) |
(246 |
) |
|
(21,883 |
) |
|
(5,765 |
) |
(849 |
) |
Foreign exchange gains/(losses) |
4,942 |
|
|
(200 |
) |
(29 |
) |
|
5,018 |
|
|
74 |
|
11 |
|
Gain from disposal of investment |
- |
|
|
- |
|
- |
|
|
28,257 |
|
|
- |
|
- |
|
Inducement charge (ii) |
- |
|
|
(121,056 |
) |
(17,830 |
) |
|
- |
|
|
(121,056 |
) |
(17,830 |
) |
Impairment of long-term investment |
- |
|
|
- |
|
- |
|
|
(37,775 |
) |
|
- |
|
- |
|
Loss from continuing operations before income tax
expense |
(212,756 |
) |
|
(263,632 |
) |
(38,828 |
) |
|
(467,400 |
) |
|
(421,754 |
) |
(62,117 |
) |
Income tax credit/(expense) |
516 |
|
|
- |
|
- |
|
|
6,148 |
|
|
(32 |
) |
(5 |
) |
Equity in income of affiliates |
9,942 |
|
|
4,728 |
|
696 |
|
|
18,149 |
|
|
10,482 |
|
1,544 |
|
Net loss from continuing operations, net of
tax |
(202,298 |
) |
|
(258,904 |
) |
(38,132 |
) |
|
(443,103 |
) |
|
(411,304 |
) |
(60,578 |
) |
Less: net loss attributable to non-controlling interests
shareholders |
(332 |
) |
|
(2 |
) |
- |
|
|
(678 |
) |
|
(7 |
) |
(1 |
) |
Net loss from continuing operations, attributable to UXIN
LIMITED |
(201,966 |
) |
|
(258,902 |
) |
(38,132 |
) |
|
(442,425 |
) |
|
(411,297 |
) |
(60,577 |
) |
|
|
|
|
|
|
|
|
|
|
Discontinued operations |
|
|
|
|
|
|
|
|
|
Net (loss)/income from discontinued operations before income tax
(including a net disposal gain of RMB721,211 for the three months
ended September 30, 2020) |
(169,983 |
) |
|
- |
|
- |
|
|
(294,913 |
) |
|
295,744 |
|
43,558 |
|
Income tax expense |
(132 |
) |
|
- |
|
- |
|
|
(400 |
) |
|
- |
|
- |
|
Net (loss)/income from discontinued
operations |
(170,115 |
) |
|
- |
|
- |
|
|
(295,313 |
) |
|
295,744 |
|
43,558 |
|
Net (loss)/income from discontinued operations attributable
to UXIN LIMITED |
(170,115 |
) |
|
- |
|
- |
|
|
(295,313 |
) |
|
295,744 |
|
43,558 |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
(372,413 |
) |
|
(258,904 |
) |
(38,132 |
) |
|
(738,416 |
) |
|
(115,560 |
) |
(17,020 |
) |
Less: net loss attributable to non-controlling interests
shareholders |
(332 |
) |
|
(2 |
) |
- |
|
|
(678 |
) |
|
(7 |
) |
(1 |
) |
Net loss attributable to UXIN LIMITED |
(372,081 |
) |
|
(258,902 |
) |
(38,132 |
) |
|
(737,738 |
) |
|
(115,553 |
) |
(17,019 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to ordinary
shareholders |
(372,081 |
) |
|
(258,902 |
) |
(38,132 |
) |
|
(737,738 |
) |
|
(115,553 |
) |
(17,019 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss |
(372,413 |
) |
|
(258,904 |
) |
(38,132 |
) |
|
(738,416 |
) |
|
(115,560 |
) |
(17,020 |
) |
Foreign currency translation |
(32,381 |
) |
|
63,095 |
|
9,293 |
|
|
(45,240 |
) |
|
64,782 |
|
9,541 |
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss |
(404,794 |
) |
|
(195,809 |
) |
(28,839 |
) |
|
(783,656 |
) |
|
(50,778 |
) |
(7,479 |
) |
Less: total comprehensive loss attributable to non-controlling
interests shareholders |
(332 |
) |
|
(2 |
) |
- |
|
|
(678 |
) |
|
(7 |
) |
(1 |
) |
Total comprehensive loss attributable to UXIN
LIMITED |
(404,462 |
) |
|
(195,807 |
) |
(28,839 |
) |
|
(782,978 |
) |
|
(50,771 |
) |
(7,478 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to ordinary
shareholders |
(372,081 |
) |
|
(258,902 |
) |
(38,132 |
) |
|
(737,738 |
) |
|
(115,553 |
) |
(17,019 |
) |
Weighted average shares outstanding – basic |
882,780,751 |
|
|
997,548,971 |
|
997,548,971 |
|
|
882,775,049 |
|
|
997,541,095 |
|
997,541,095 |
|
Weighted average shares outstanding – diluted |
882,780,751 |
|
|
997,548,971 |
|
997,548,971 |
|
|
882,775,049 |
|
|
1,225,268,425 |
|
1,225,268,425 |
|
|
|
|
|
|
|
|
|
|
|
(Loss)/earnings per share for ordinary shareholders, basic |
|
|
|
|
|
|
|
|
|
Continuing operations |
(0.23 |
) |
|
(0.26 |
) |
(0.04 |
) |
|
(0.50 |
) |
|
(0.41 |
) |
(0.06 |
) |
Discontinued operations |
(0.19 |
) |
|
- |
|
- |
|
|
(0.33 |
) |
|
0.30 |
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
(Loss)/earnings per share for ordinary shareholders, diluted |
|
|
|
|
|
|
|
|
Continuing operations |
(0.23 |
) |
|
(0.26 |
) |
(0.04 |
) |
|
(0.50 |
) |
|
(0.41 |
) |
(0.06 |
) |
Discontinued operations |
(0.19 |
) |
|
- |
|
- |
|
|
(0.33 |
) |
|
0.27 |
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
(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”. As a result of the aforementioned July Agreement we
entered into with WeBank, all guarantee liabilities associated with
the historically-facilitated loans for WeBank accounted for under
ASC 460 were released and therefore a released gain of RMB168.6
million was recorded on August 8, 2020.(ii) On July 23, 2020, we
entered into agreements with PacificBridge to amend the terms of
the convertible notes in an aggregate principal amount of US$50
million that we issued to PacificBridge between July and November
2019. We recorded an inducement charge of RMB121.1 million due to
the amended conversion price at which PacificBridge converted all
the convertible notes into 136,279,973 Class A ordinary
shares. |
|
Uxin Limited |
Unaudited Consolidated Balance Sheets |
(In thousands except for number of shares and per share data) |
|
|
|
|
|
|
As of March 31, |
|
As of September 30, |
|
2020 |
|
2020 |
RMB |
|
RMB |
US$ |
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
342,504 |
|
|
219,318 |
|
32,302 |
|
Restricted cash |
454,931 |
|
|
40,119 |
|
5,909 |
|
Accounts receivable, net |
6,397 |
|
|
5,168 |
|
760 |
|
Amounts due from related parties, net of provision for credit
losses of nil and RMB259 as of March 31, 2020, and September 30,
2020, respectively (i) |
28,070 |
|
|
151,136 |
|
22,260 |
|
Loan recognized as a result of payment under the guarantee, net of
provision for credit losses of RMB2,190,575 and RMB2,045,898 as of
March 31, 2020, and September 30, 2020, respectively |
404,174 |
|
|
317,102 |
|
46,704 |
|
Advance to sellers, net |
132,526 |
|
|
45,768 |
|
6,741 |
|
Other receivables, net of provision for credit losses of RMB51,666
and RMB45,412 as of March 31, 2020 and September 30, 2020,
respectively |
287,753 |
|
|
135,819 |
|
20,004 |
|
Inventory |
10,314 |
|
|
32,176 |
|
4,739 |
|
Prepaid expenses and other current assets |
137,148 |
|
|
125,346 |
|
18,461 |
|
Financial lease receivables, net of provision for credit losses of
RMB27,250 and RMB27,197 as of March 31, 2020, and September 30,
2020, respectively |
15,048 |
|
|
- |
|
- |
|
Net assets transferred (ii) |
420,000 |
|
|
- |
|
- |
|
Total current assets |
2,238,865 |
|
|
1,071,952 |
|
157,880 |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
Property, equipment and software, net |
87,558 |
|
|
56,083 |
|
8,260 |
|
Intangible assets, net |
139 |
|
|
62 |
|
9 |
|
Goodwill |
9,541 |
|
|
- |
|
- |
|
Long term investments |
276,762 |
|
|
283,253 |
|
41,719 |
|
Other non-current assets (iii) |
- |
|
|
42,000 |
|
6,186 |
|
Right-of-use assets, net (iv) |
34,466 |
|
|
56,371 |
|
8,303 |
|
Total non-current assets |
408,466 |
|
|
437,769 |
|
64,477 |
|
|
|
|
|
|
Total assets |
2,647,331 |
|
|
1,509,721 |
|
222,357 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
|
|
Current liabilities |
|
|
|
|
Short-term borrowings and current portion of long-term
borrowings |
119,069 |
|
|
25,655 |
|
3,779 |
|
Accounts payable |
132,357 |
|
|
113,962 |
|
16,785 |
|
Guarantee liabilities |
910,949 |
|
|
8,147 |
|
1,200 |
|
Deposit of interests from consumers and payable to financing
partners |
25,968 |
|
|
128 |
|
19 |
|
Advance from buyers collected on behalf of sellers |
110,493 |
|
|
65,221 |
|
9,606 |
|
Other payables and accruals |
1,175,914 |
|
|
868,189 |
|
127,870 |
|
Deferred revenue |
50,348 |
|
|
43,012 |
|
6,335 |
|
Convertible notes, current (v) |
375,449 |
|
|
- |
|
- |
|
Amounts due to related parties (vi) |
- |
|
|
37,736 |
|
5,558 |
|
Operating lease liabilities, current |
32,842 |
|
|
14,313 |
|
2,108 |
|
Consideration payment to WeBank, current (vii) |
- |
|
|
59,757 |
|
8,801 |
|
Liabilities held for sale (viii) |
143,009 |
|
|
- |
|
- |
|
Total current liabilities |
3,076,398 |
|
|
1,236,120 |
|
182,061 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Long-term borrowings |
234,585 |
|
|
233,000 |
|
34,317 |
|
Convertible bonds, non-current |
1,679,130 |
|
|
1,643,405 |
|
242,047 |
|
Operating lease liabilities, non-current (iv) |
1,865 |
|
|
41,618 |
|
6,130 |
|
Consideration payment to WeBank, non-current (vii) |
- |
|
|
263,586 |
|
38,822 |
|
Total non-current liabilities |
1,915,580 |
|
|
2,181,609 |
|
321,316 |
|
|
|
|
|
|
Total liabilities |
4,991,978 |
|
|
3,417,729 |
|
503,377 |
|
|
|
|
|
|
Shareholders’ deficit |
|
|
|
|
Ordinary shares |
581 |
|
|
675 |
|
99 |
|
Additional paid-in capital |
13,036,989 |
|
|
13,524,312 |
|
1,991,916 |
|
Accumulated other comprehensive income |
106,764 |
|
|
171,546 |
|
25,266 |
|
Accumulated deficit |
(15,488,827 |
) |
|
(15,604,380 |
) |
(2,298,277 |
) |
Total Uxin’s shareholders’ deficit |
(2,344,493 |
) |
|
(1,907,847 |
) |
(280,996 |
) |
Non-controlling interests |
(154 |
) |
|
(161 |
) |
(24 |
) |
Total shareholders’ deficit |
(2,344,647 |
) |
|
(1,908,008 |
) |
(281,020 |
) |
|
|
|
|
|
Total liabilities and shareholders’ deficit |
2,647,331 |
|
|
1,509,721 |
|
222,357 |
|
|
|
|
|
|
|
|
|
(i) Amounts due from related parties mainly represented the
consideration receivables from 58.com due to the divestiture of B2B
online used car auction business in April 2020.(ii) Pursuant to the
supplemental agreements we entered into with Golden Pacer to divest
our loan facilitation related business in April 2020, net assets
transferred referred to the pre-transferred net assets of XW Bank
as of March 31, 2020. The transaction was completed in April
2020.(iii) Other non-current assets represented our prepayment for
financial solution advisory services. We entered into a long-term
strategic cooperation agreement with Golden Pacer separately in
April 2020, and an aggregate amount of RMB60.0 million as
prepayment was made in exchange for a 5-year financial solution
advisory services from Golden Pacer.(iv) It mainly represented a
5-year lease agreement for our headquarters office building in
Beijing signed in late April 2020.(v) All short-term convertible
notes were converted into 136,279,973 Class A ordinary shares on
July 23, 2020.(vi) Amounts due to related parties mainly
represented the advertising and marketing expenses payable to
58.com.(vii) 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 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 no
longer subject to guarantee obligations in relation to our
historically-facilitated loans for WeBank under the condition that
we make the instalments based on the agreed-upon schedule set forth
in the supplemental agreement.(viii) Liabilities held for sales
were related to the divestiture of our B2B online used car auction
business. The divestiture was completed in April 2020. |
|
|
|
|
|
* Share-based compensation charges from continuing operations
included are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, |
|
For the six months ended September 30, |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
Cost of revenue |
- |
|
|
7 |
|
1 |
|
|
- |
|
|
2,149 |
|
317 |
|
Sales and marketing |
- |
|
|
(10 |
) |
(1 |
) |
|
- |
|
|
5,046 |
|
743 |
|
General and administrative |
37 |
|
|
(14,682 |
) |
(2,162 |
) |
|
26,804 |
|
|
(25,434 |
) |
(3,746 |
) |
Research and development |
(1,239 |
) |
|
(970 |
) |
(143 |
) |
|
(930 |
) |
|
(2,091 |
) |
(308 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30, |
|
For the six months ended September 30, |
2019 |
|
2020 |
|
2019 |
|
2020 |
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
Loss from continuing operations |
(188,381 |
) |
|
(162,598 |
) |
(23,948 |
) |
|
(411,559 |
) |
|
(290,961 |
) |
(42,853 |
) |
Add: Share-based compensation expenses |
(1,202 |
) |
|
(15,655 |
) |
(2,305 |
) |
|
25,874 |
|
|
(20,330 |
) |
(2,994 |
) |
- Cost of revenue |
- |
|
|
7 |
|
1 |
|
|
- |
|
|
2,149 |
|
317 |
|
- Sales and marketing |
- |
|
|
(10 |
) |
(1 |
) |
|
- |
|
|
5,046 |
|
743 |
|
- General and administrative |
37 |
|
|
(14,682 |
) |
(2,162 |
) |
|
26,804 |
|
|
(25,434 |
) |
(3,746 |
) |
- Research and development |
(1,239 |
) |
|
(970 |
) |
(143 |
) |
|
(930 |
) |
|
(2,091 |
) |
(308 |
) |
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted loss from continuing
operations |
(189,583 |
) |
|
(178,253 |
) |
(26,253 |
) |
|
(385,685 |
) |
|
(311,291 |
) |
(45,847 |
) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, |
|
For the six months ended September 30, |
2019 |
|
2020 |
|
2019 |
|
2020 |
|
|
|
|
|
|
|
|
|
Net loss from continuing operations |
(202,298 |
) |
|
(258,904 |
) |
(38,132 |
) |
|
(443,103 |
) |
|
(411,304 |
) |
(60,578 |
) |
|
|
|
|
|
|
|
|
|
|
Add: Share-based compensation expenses |
(1,202 |
) |
|
(15,655 |
) |
(2,305 |
) |
|
25,874 |
|
|
(20,330 |
) |
(2,994 |
) |
- Cost of revenue |
- |
|
|
7 |
|
1 |
|
|
- |
|
|
2,149 |
|
317 |
|
- Sales and marketing |
- |
|
|
(10 |
) |
(1 |
) |
|
- |
|
|
5,046 |
|
743 |
|
- General and administrative |
37 |
|
|
(14,682 |
) |
(2,162 |
) |
|
26,804 |
|
|
(25,434 |
) |
(3,746 |
) |
- Research and development |
(1,239 |
) |
|
(970 |
) |
(143 |
) |
|
(930 |
) |
|
(2,091 |
) |
(308 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net loss from continuing
operations |
(203,500 |
) |
|
(274,559 |
) |
(40,437 |
) |
|
(417,229 |
) |
|
(431,634 |
) |
(63,572 |
) |
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net loss from continuing operations per share –
basic |
(0.23 |
) |
|
(0.28 |
) |
(0.04 |
) |
|
(0.47 |
) |
|
(0.43 |
) |
(0.06 |
) |
Non-GAAP adjusted net loss from continuing operations per share –
diluted |
(0.23 |
) |
|
(0.28 |
) |
(0.04 |
) |
|
(0.47 |
) |
|
(0.43 |
) |
(0.06 |
) |
Weighted average shares outstanding – basic |
882,780,751 |
|
|
997,548,971 |
|
997,548,971 |
|
|
882,775,049 |
|
|
997,541,095 |
|
997,541,095 |
|
Weighted average shares outstanding – diluted |
882,780,751 |
|
|
997,548,971 |
|
997,548,971 |
|
|
882,775,049 |
|
|
1,225,268,425 |
|
1,225,268,425 |
|
|
|
|
|
|
|
|
|
|
|
Note: The conversion of Renminbi (RMB) into U.S. dollars (USD) is
based on the certified exchange rate of USD1.00 = RMB6.7896 as of
September 30, 2020 set forth in the H.10 statistical release of the
Board of Governors of the Federal Reserve System. |
|
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|
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