Uxin Limited (“Uxin” or the “Company”) (Nasdaq: UXIN), the largest
used car e-commerce platform in China, today announced its
financial results unaudited for the fourth quarter and full year
ended December 31, 2018.
Fourth Quarter 2018 Operational
Highlights
- Transaction volume for the 2C business
increased to 168,395 units in the fourth quarter of 2018,
representing year-on-year growth of 93.6%.
- Transaction volume for the 2B business
decreased to 72,081 units in the fourth quarter of 2018,
representing year-on-year decline of 37.1%, 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.
- GMV for the 2C business increased to RMB13,058
million in the fourth quarter of 2018, representing year-on-year
growth of 73.7%.
- GMV for the 2B business decreased to RMB3,349
million in the fourth quarter of 2018, representing year-on-year
decline of 40.2%.
- Loan facilitation continues to be an important
component of Uxin’s transaction services. Uxin facilitated
financing for 79,738 used car transactions on its platform in the
fourth quarter of 2018.
- M3+ delinquency rate by balance1 was 1.41% as
of December 31, 2018, improved from 1.43% as of September 30,
2018.
Fourth Quarter 2018 Financial
Highlights
- Total revenues in the fourth quarter were
RMB1,136.7 million (US$165.6 million), representing year-on-year
growth of 61.6%.º 2C transaction facilitation
revenue in the fourth quarter was RMB317.5 million
(US$46.3 million), representing year-on-year growth of
263.2%.º 2C loan facilitation revenue in the
fourth quarter was RMB619.8 million (US$90.3 million), representing
year-on-year growth of 81.3%.º 2B transaction facilitation
revenue in the fourth quarter was RMB145.7 million
(US$21.2 million), representing year-on-year decline of 16.4%.
- Gross profit was RMB783.3 million (US$114.1
million) in the fourth quarter of 2018. Gross margin increased to
68.9% in the fourth quarter of 2018, compared to 64.9% in the same
period last year.
- Loss from operations in the fourth quarter of
2018 was RMB266.0 million (US$38.8 million), compared to RMB483.1
million in the same period last year.
- Non-GAAP adjusted loss from operations in the
fourth quarter was RMB193.7 million (US$28.2 million), compared to
RMB454.9 million in the same period last year.
- Net loss in the fourth quarter was RMB314.6
million (US$45.8 million), compared to a net loss of RMB901.6
million in the same period last year. Net loss as a percentage of
total revenues was 27.7% in the fourth quarter of 2018, decreased
from 128.2% in the same period last year.
- Non-GAAP adjusted net loss in the fourth
quarter was RMB242.2 million (US$35.3 million), compared to
RMB488.7 million in the same period last year. Non-GAAP adjusted
net loss as a percentage of total revenues was 21.3% in the fourth
quarter of 2018, decreased from 69.5% in the same period last
year.
Full Year 2018 Operational
Highlights
- Transaction volume for the 2C business
increased to 494,826 units in the full year 2018, representing
year-on-year growth of 74.3%.
- Transaction volume for the 2B business
decreased to 319,672 units in the full year 2018, representing
year-on-year decline of 8.8%, 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.
- GMV for the 2C business increased to RMB39,809
million in the full year 2018, representing year-on-year growth of
53.0%.
- GMV for the 2B business decreased to RMB15,253
million in the full year 2018, representing year-on-year decline of
12.2%.
- Loan facilitation continues to be an important
component of Uxin’s transaction services. Uxin facilitated
financing for 228,082 used car transactions on its platform in the
full year 2018.
- M3+ delinquency rate by balance was 1.41% as
of December 31, 2018, compared to 1.37% as of December 31,
2017.
Full Year 2018 Financial
Highlights
- Total revenues in the full year 2018 were
RMB3,315.4 million (US$483.1 million), representing year-on-year
growth of 69.9%.º 2C transaction facilitation
revenue in the full year 2018 was RMB645.3 million
(US$94.0 million), representing year-on-year growth of
180.3%.º 2C loan facilitation revenue in the full
year 2018 was RMB1,774.1 million (US$258.5 million), representing
year-on-year growth of 87.8%.º 2B transaction facilitation
revenue in the full year 2018 was RMB606.6 million
(US$88.4 million), representing year-on-year growth of 16.8%.
- Gross profit was RMB2,176.5 million (US$317.1
million) in the full year 2018. Gross margin increased to 65.6% in
the full year 2018, compared to 61.7% in the prior year.
- Loss from operations in the full year 2018 was
RMB2,565.9 million (US$373.9 million), compared to RMB1,823.2
million in the prior year.
- Non-GAAP adjusted loss from operations in the
full year 2018 was RMB1,513.9 million (US$220.6 million), compared
to RMB1,657.3 million in the prior year.
- Net loss in the full year 2018 was RMB1,538.3
million (US$224.1 million), compared to a net loss of RMB2,747.8
million in the prior year. Net loss as a percentage of total
revenues was 46.4% in the full year 2018, decreased from 140.8% in
the prior year.
- Non-GAAP adjusted net loss in the full year
2018 was RMB1,671.3 million (US$243.5 million), compared to
RMB1,696.1 million in the prior year. Non-GAAP adjusted net loss as
a percentage of total revenues was 50.4% in the full year 2018,
decreased from 86.9% in the prior year.
Mr. Kun Dai, Founder, Chairman and Chief
Executive Officer of Uxin, said, “We are pleased to end the year
with another set of strong results, with total revenues in the
fourth quarter exceeding the high-end of previous guidance. We
continued to attract consumers through Uxin’s unique value
proposition of a broad selection of used cars, digital transparency
and a one-stop solution. We facilitated over 160,000 used car
transactions on our 2C platform in the fourth quarter, representing
a year-on-year increase of 93.6%. More importantly, we experienced
an exponential growth in cross-regional transactions, with
transaction volume exceeding 10,000 used cars in December alone,
and over 22,000 in the fourth quarter. This reflects the
revolutionary impact of our business model on China’s used car
supply chain, as well as growing appreciation of Uxin’s brand and
services.”
Mr. Dai added, “Looking into 2019, we will
continue to increase our focus on the 2C business. From a
commercial perspective, we see much greater growth potential in the
2C business, especially in terms of cross-regional transactions. We
have identified a number of strategic initiatives to strengthen our
capabilities on this front. For example, we will adopt a franchise
model to complement our self-operated service centers, in order to
better penetrate lower-tier cities and expand coverage of our
offline network. Regarding our 2B business, while it may decline as
a proportion of total revenues as a result of our strategic shift
to the 2C business, it will continue to serve as an important arm
of our group, as it enables us to strengthen our relationships with
dealers and enhance the stickiness to our platform, thus
facilitating the growth of our 2C business. As we implement these
initiatives and continue to enhance our value proposition, we are
confident that we will solidify our position as China’s largest
used car e-commerce platform.”
Mr. Zhen Zeng, Chief Financial Officer of Uxin,
said, “Our strong execution across all business lines helped us
conclude the year on a strong footing. Total revenues increased by
61.6% year-on-year to RMB1.1 billion in the fourth quarter,
primarily driven by the robust growth of our 2C business, which
increased by 118.3% year-on-year. We also expanded our gross margin
to 68.9% in the fourth quarter from 64.9% in the same period last
year, reflecting the ongoing optimization of our business model and
effective cost control measures. Moreover, we continued to gain
operating leverage during the fourth quarter as we benefited from
greater scale and operating efficiency. In particular, we made
strong progress optimizing sales and marketing with related
expenses declining to 60.6% as a percentage of revenues in the
fourth quarter, compared to 87.5% in the prior quarter, and 98.7%
in the same period last year. Going forward, we will continue to
focus on driving the growth of our 2C business while increasing
operating efficiency to build a sustainable business and generate
long-term value for our shareholders.”
Fourth Quarter 2018 Financial
Results
Total revenues in the fourth
quarter of 2018 increased by 61.6% to RMB1,136.7 million (US$165.6
million) from RMB703.4 million in the same period last year,
primarily due to the increases in 2C transaction volume,
transaction facilitation take rate2 and amount of loans
facilitated.
2C Business: Revenue of the 2C
business increased to RMB937.3 million (US$136.6 million) in the
fourth quarter of 2018, representing growth of 118.3% from RMB429.3
million in the same period last year.
- 2C transaction facilitation revenue was RMB317.5 million
(US$46.3 million) in the fourth quarter of 2018, representing an
increase of 263.2% from RMB87.4 million in the same period last
year, primarily due to the increases in the transaction volume and
GMV of used cars sold through the 2C business. The transaction
volume for the 2C business increased to 168,395 units in the fourth
quarter of 2018, representing year-on-year growth of 93.6%. The GMV
for the 2C business increased to RMB13,058 million in the fourth
quarter of 2018, representing year-on-year growth of 73.7%. As a
result of the Company’s greater efforts to facilitate
cross-regional transactions and higher pricing power generated from
enhanced service and user experience, the take rate for 2C
transaction facilitation reached 2.4% during the quarter, compared
to 1.2% in the same period last year. As the main driver, the take
rate for cross-regional transactions exceeded 5% during the
quarter.
- 2C loan facilitation revenue increased to RMB619.8 million
(US$90.3 million) in the fourth quarter of 2018, representing an
increase of 81.3% from RMB341.9 million in the same period last
year, primarily due to the increases in the transaction volume and
amount of loans facilitated. The attach rate3 of the loan
facilitation services slightly increased to 47.4% in the fourth
quarter of 2018, mainly driven by the increasing volume of
cross-regional transactions. The average service fee rate for used
car loan facilitation, as measured by the used car loan
facilitation revenue divided by the total amount of used car loans
facilitated, was 7.0% in the fourth quarter of 2018, compared to
7.4% in the same period last year.
2B Business:
- 2B transaction facilitation revenue was RMB145.7 million
(US$21.2 million) in the fourth quarter of 2018, representing a
decrease of 16.4% from the same period last year, due to the
decline in transaction volume. The transaction volume for the 2B
business decreased to 72,081 units in the fourth quarter of 2018,
due to the Company’s change of approach in serving consumers with
car-selling needs as disclosed in the earnings release for the
second quarter of 2018, as well as dealers’ growing appetite for
retail transactions through the Company’s 2C platform. The GMV for
the 2B business decreased to RMB3,349 million in the fourth
quarter, representing year-on-year decrease of 40.2%. The take rate
for 2B transaction facilitation increased to 4.3% in the fourth
quarter, compared to 3.1% in the same period last year, as a result
of Uxin’s increasing pricing power.
Cost of revenues increased by
43.1% year-on-year to RMB353.3 million (US$51.5 million) in the
fourth quarter of 2018, primarily due to the increases in costs of
fulfillment, title transfer and registration which were
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 margin was 68.9% in the
fourth quarter of 2018, compared to 64.9% in the same period last
year.
Total operating expenses were
RMB1,049.4 million (US$152.9 million) in the fourth quarter of
2018. Total operating expenses excluding share-based compensation
expenses were RMB977.0 million.
- Sales and marketing expenses
slightly decreased by 0.8% year-on-year to RMB688.9 million
(US$100.4 million) in the fourth quarter of 2018. The well-managed
sales and marketing expenses reflects the Company’s continuous
efforts of enhancing operating efficiency and focus on conversion.
Sales and marketing expenses excluding share-based compensation
expenses as a percentage of total revenues was 60.6% during the
quarter, compared to 98.7% in the same period last year.
- General and administrative expenses increased
by 79.4% year-on-year to RMB272.1 million (US$39.6 million) in the
fourth quarter of 2018. The increase was mainly due to the
increases in salaries and benefits expenses, share-based
compensation expenses and professional service fees. The general
and administrative expenses, excluding share-based compensation
expenses of RMB71.6 million, were RMB200.5 million which
represented 17.6% of total revenues, compared to 17.6% in the same
period last year.
- Research and development expenses increased by
23.3% year-on-year to RMB96.6 million (US$14.1 million) in the
fourth quarter of 2018. The increase was primarily due to the
increase in salaries and benefits expenses. The research and
development expenses, excluding share-based compensation expenses
of RMB0.8 million, were RMB95.8 million which represented 8.4% of
total revenues, compared to 11.1% in the same period last
year.
Gains/Loss from guarantee
liability resulted in a gain of RMB8.2 million (US$1.2
million) in the fourth quarter of 2018. The gain was the result of
improved delinquency rate compared to that as of the third quarter
of 2018.
Loss from operations in the
fourth quarter of 2018 was RMB266.0 million (US$38.8 million),
compared to RMB483.1 million in the same period last year. Non-GAAP
adjusted loss from operations was RMB193.7 million (US$28.2
million) in the fourth quarter of 2018.
Fair value change of derivative
liabilities was nil in the fourth quarter of 2018,
compared to a loss of RMB384.7 million in the same period last
year. The impact of derivative liabilities would no longer exist
going forward as the preferred shares were converted into ordinary
shares at the time of IPO.
Net loss in the fourth quarter
of 2018 was RMB314.6 million (US$45.8 million), compared to a net
loss of RMB901.6 million in the same period last year. The narrowed
net loss was primarily due to greater operating leverage and
decrease of loss from fair value change of derivative
liabilities.
Non-GAAP adjusted net loss,
which excludes share-based compensation expenses of RMB72.4
million, was RMB242.2 million (US$35.3 million) in the fourth
quarter of 2018, compared to RMB488.7 million in the same period
last year.
As of December 31, 2018, the Company had cash
and cash equivalents of RMB801.0 million (US$116.7 million),
short-term investment in the form of time deposit and other
investment products of RMB596.1 million (US$86.9 million), and
restricted cash of RMB2,013.0 million (US$293.3 million).
Full Year 2018 Financial
Results
Total revenues in the full year
2018 increased by 69.9% to RMB3,315.4 million (US$483.1 million)
from RMB1,951.4 million in the prior year, primarily due to the
increases in transaction volume, take rate and amount of loans
facilitated.
2C Business: Revenue of the 2C
business increased to RMB2,419.4 million (US$352.5 million) in the
full year 2018, representing growth of 106.0% from RMB1,174.7
million in the prior year.
- 2C transaction facilitation revenue was RMB645.3 million
(US$94.0 million) in the full year 2018, representing an increase
of 180.3% from RMB230.3 million in the prior year, primarily due to
the increases in the transaction volume and GMV of used cars sold
through the 2C business. The transaction volume for the 2C business
increased to 494,826 units in the full year 2018, representing
year-on-year growth of 74.3%. The GMV for the 2C business increased
to RMB39,809 million in the full year 2018, representing
year-on-year growth of 53.0%. As a result of the Company’s greater
efforts to facilitate cross-regional transactions and higher
pricing power generated from enhanced service and user experience,
the take rate for 2C transaction facilitation increased to 1.6% in
the full year 2018, compared to 0.9% in the prior year.
- 2C loan facilitation revenue increased to RMB1,774.1 million
(US$258.5 million) in the full year 2018, representing an increase
of 87.8% from RMB944.4 million in the prior year, primarily due to
the increases in the transaction volume and amount of loans
facilitated. The attach rate of the loan facilitation services
slightly increased to 46.1% in the full year 2018, mainly driven by
the increasing volume of cross-regional transactions. The average
service fee rate for used car loan facilitation was 7.0% in the
full year 2018, compared to 6.2% in the prior year.
2B Business:
- 2B transaction facilitation revenue was RMB606.6 million
(US$88.4 million) in the full year 2018, representing an increase
of 16.8% from the prior year, due to the increase in take rate. The
transaction volume for the 2B business decreased to 319,672 units
in the full year 2018, due to the Company’s change of approach in
serving consumers with car-selling needs as disclosed in the
earnings release for the second quarter of 2018, as well as
dealers’ growing appetite for retail transactions through the
Company’s 2C platform. Despite the impact of the change in business
approach, B2B business experienced 8.9% year-on-year growth in
terms of number of transactions in the full year 2018. The GMV for
the 2B business decreased to RMB15,253 million in the full year
2018, representing year-on-year decrease of 12.2%. Excluding the
impact of the change in business approach, B2B business experienced
6.0% year-on-year growth in terms of GMV. The take rate for 2B
transaction facilitation increased to 4.0% in the full year 2018,
compared to 3.0% in the prior year, as a result of Uxin’s
increasing pricing power.
Cost of revenues increased by
52.3% year-on-year to RMB1,139.0 million (US$166.0 million) in the
full year 2018, primarily due to the increases in salaries and
benefits of employees engaged in car inspection, quality control,
customer service and after-sale service, as well as costs of
fulfillment, title transfer and registration which were
correspondingly driven by the increase in the transaction
volume.
Gross margin was 65.6% in the
full year 2018, compared to 61.7% in the prior year.
Total operating expenses were
RMB4,742.4 million (US$691.0 million) in the full year 2018. Total
operating expenses excluding share-based compensation expenses were
RMB3,690.5 million.
- Sales and marketing expenses increased by
22.0% year-on-year to RMB2,687.0 million (US$391.5 million) in the
full year 2018. The increase was primarily due to the increase in
salaries and benefits expenses. Sales and marketing expenses
excluding share-based compensation expenses as a percentage of
total revenues was 81.0% in the full year 2018, compared to 112.9%
in the prior year.
- General and administrative expenses increased
by 187.4% year-on-year to RMB1,724.1 million (US$251.2 million) in
the full year 2018. The increase was mainly due to the increases in
share-based compensation expenses and salaries and benefits
expenses. The general and administrative expenses, excluding
share-based compensation expenses of RMB1,033.5 million, were
RMB690.6 million which represented 20.8% of total revenues,
compared to 22.2% in the prior year.
- Research and development expenses increased by
45.8% year-on-year to RMB329.4 million (US$48.0 million) in the
full year 2018. The increase was primarily due to the increases in
salaries and benefits expenses, share-based compensation expenses
and rental expenses. The research and development expenses,
excluding share-based compensation expenses of RMB18.0 million,
were RMB311.4 million which represented 9.4% of total revenues,
compared to 11.6% in the prior year.
Gains/Loss from guarantee
liability resulted in a loss of RMB1.9 million (US$0.3
million) in the full year 2018. The loss was due to the slight
increase in delinquency rate as of the first quarter of 2018
compared to that as of the prior year.
Loss from operations in the
full year 2018 was RMB2,565.9 million (US$373.9 million), compared
to RMB1,823.2 million in the prior year. Non-GAAP adjusted loss
from operations was RMB1,513.9 million (US$220.6 million) in the
full year 2018.
Fair value change of derivative
liabilities was a gain of RMB1,185.1 million (US$172.7
million) in the full year 2018, compared to a loss of RMB885.8
million in the prior year.
Net loss in the full year 2018
was RMB1,538.3 million (US$224.1 million), compared to a net loss
of RMB2,747.8 million in the prior year. The narrowed net loss was
primarily due to the increase of revenues and gain from fair value
change of derivative liabilities.
Non-GAAP adjusted net loss,
which excludes share-based compensation expenses of RMB1,052.0
million and gain form fair value change of derivative liabilities
of RMB1,185.1 million, was RMB1,671.3 million (US$243.5 million) in
the full year 2018, compared to RMB1,696.1 million in the prior
year.
Recent UpdateWith the Company’s
great efforts in executing 2C business initiatives, cross-regional
transactions experienced exponential growth towards the end of
2018, and started to contribute an increasingly significant portion
of transaction volume as well as revenues.
Business Outlook
For the first quarter of 2019, Uxin expects
total revenues to be in the range of RMB900 million to RMB950
million. This forecast reflects the Company's current and
preliminary views on the market and operational conditions, which
are subject to change.
1M3+ delinquency rate is
defined as the outstanding principal balance of used car loans that
were 90 or more calendar days past due as a percentage of the sum
of total outstanding principal balance of the used car loans
facilitated through the Company’s 2C business (including the
principal of loans it paid financing partners under its guarantee
to financing partners) as of a specific date.2Take
rate is measured by the revenue of the 2C/2B used car
business divided by the GMV of the 2C/2B business.
3The attach rate of used car loan facilitation
services in the 2C business was measured by the number of used car
loans facilitated divided by the total number of 2C used car
transactions.
Conference Call
The Company’s management will host an earnings
conference call at 8:00 AM on March 14, 2019 U.S. Eastern Time
(8:00 PM on March 14, 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: |
5079833 |
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 March 29, 2019, by dialing the following telephone
numbers:
U.S.: |
+1 646 254 3697 |
International: |
+61 2 8199 0299 |
Conference ID: |
5079833 |
About UxinUxin Limited (Nasdaq:
UXIN) is the largest used car e-commerce platform 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 and dealers to buy and sell cars through an innovative
integrated online and offline platform that addresses each step of
the transaction and covers the entire value chain. Its online
presence is bolstered by an offline network of more than 670
service centers in over 270 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 RMB6.8632 to US$1.00,
representing the index rate as of the end of December 2018
stipulated by the People’s Bank of China. The Company makes no
representation that the RMB or US$ 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
For media enquiries, please
contact:
Yi-Ke HongBrunswick GroupTel: +86 10
5960-8600Email: uxin@brunswickgroup.com
Uxin Limited Unaudited
Consolidated Statements of Comprehensive Loss(In thousands
except for number of shares and per share data)
|
|
Three months ended |
|
Year ended |
|
December 31, 2017 |
December 31, 2018 |
|
December 31, 2017 |
December 31,2018 |
|
|
RMB’000 |
|
RMB’000 |
|
USD’000 |
|
|
RMB’000 |
|
RMB’000 |
|
USD’000 |
|
Revenues: |
|
|
|
|
|
|
|
|
2C
Transaction facilitation revenue |
|
87,410 |
|
317,493 |
|
46,260 |
|
|
230,250 |
|
645,335 |
|
94,028 |
|
2C Loan
facilitation revenue |
|
341,939 |
|
619,827 |
|
90,312 |
|
|
944,406 |
|
1,774,065 |
|
258,489 |
|
2B
Transaction facilitation revenue |
|
174,233 |
|
145,659 |
|
21,223 |
|
|
519,276 |
|
606,599 |
|
88,384 |
|
Others |
|
99,851 |
|
53,683 |
|
7,822 |
|
|
257,440 |
|
289,450 |
|
42,174 |
|
Total revenues |
|
703,433 |
|
1,136,662 |
|
165,617 |
|
|
1,951,372 |
|
3,315,449 |
|
483,075 |
|
Operating cost and expenses: |
|
|
|
|
|
|
|
|
Cost of
revenue |
|
(246,983 |
) |
(353,335 |
) |
(51,483 |
) |
|
(747,788 |
) |
(1,138,995 |
) |
(165,957 |
) |
Sales
and marketing |
|
(694,499 |
) |
(688,930 |
) |
(100,380 |
) |
|
(2,203,139 |
) |
(2,686,956 |
) |
(391,502 |
) |
General
and administrative |
|
(151,695 |
) |
(272,077 |
) |
(39,643 |
) |
|
(599,905 |
) |
(1,724,060 |
) |
(251,204 |
) |
Research
and development |
|
(78,345 |
) |
(96,585 |
) |
(14,073 |
) |
|
(226,010 |
) |
(329,430 |
) |
(47,999 |
) |
(Losses)/gains from guarantee liability |
|
(15,053 |
) |
8,230 |
|
1,199 |
|
|
2,284 |
|
(1,931 |
) |
(281 |
) |
Total operating cost and expenses |
|
(1,186,575 |
) |
(1,402,697 |
) |
(204,380 |
) |
|
(3,774,558 |
) |
(5,881,372 |
) |
(856,943 |
) |
Loss from operations |
|
(483,142 |
) |
(266,035 |
) |
(38,763 |
) |
|
(1,823,186 |
) |
(2,565,923 |
) |
(373,868 |
) |
Interest
expenses |
|
(34,191 |
) |
(35,357 |
) |
(5,151 |
) |
|
(30,183 |
) |
(120,453 |
) |
(17,550 |
) |
Other
expenses |
|
(1,433 |
) |
(10,911 |
) |
(1,590 |
) |
|
(12,112 |
) |
(16,813 |
) |
(2,450 |
) |
Foreign
exchange gains/(losses) |
|
130 |
|
(710 |
) |
(103 |
) |
|
477 |
|
(8,232 |
) |
(1,199 |
) |
Fair
value change of derivative liabilities |
|
(384,674 |
) |
- |
|
- |
|
|
(885,821 |
) |
1,185,090 |
|
172,673 |
|
Loss before income tax expense |
|
(903,310 |
) |
(313,013 |
) |
(45,607 |
) |
|
(2,750,825 |
) |
(1,526,331 |
) |
(222,394 |
) |
Income
tax credit/(expense) |
|
1,703 |
|
(4,183 |
) |
(609 |
) |
|
(570 |
) |
(14,585 |
) |
(2,125 |
) |
Equity
in gains of affiliates |
|
- |
|
2,631 |
|
383 |
|
|
3,597 |
|
2,631 |
|
383 |
|
Net loss |
|
(901,607 |
) |
(314,565 |
) |
(45,833 |
) |
|
(2,747,798 |
) |
(1,538,285 |
) |
(224,136 |
) |
Less:
net loss attributable to non-controlling interests
shareholders |
|
(3,275 |
) |
(552 |
) |
(80 |
) |
|
(25,202 |
) |
(15,771 |
) |
(2,298 |
) |
Net loss attributable to UXIN LIMITED |
|
(898,332 |
) |
(314,013 |
) |
(45,753 |
) |
|
(2,722,596 |
) |
(1,522,514 |
) |
(221,838 |
) |
Accretion on redeemable preferred shares |
|
(142,485 |
) |
- |
|
- |
|
|
(555,824 |
) |
(318,951 |
) |
(46,473 |
) |
Deemed
dividend to preferred shareholders |
|
(347,557 |
) |
- |
|
- |
|
|
(587,564 |
) |
(544,773 |
) |
(79,376 |
) |
Deemed
dividend from preferred shareholders |
|
33,976 |
|
- |
|
- |
|
|
92,779 |
|
- |
|
- |
|
Net loss attributable to ordinary
shareholders |
|
(1,354,398 |
) |
(314,013 |
) |
(45,753 |
) |
|
(3,773,205 |
) |
(2,386,238 |
) |
(347,687 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
(901,607 |
) |
(314,565 |
) |
(45,833 |
) |
|
(2,747,798 |
) |
(1,538,285 |
) |
(224,136 |
) |
Foreign
currency translation |
|
18,346 |
|
9,069 |
|
1,321 |
|
|
43,406 |
|
4,818 |
|
702 |
|
Total comprehensive loss |
|
(883,261 |
) |
(305,496 |
) |
(44,512 |
) |
|
(2,704,392 |
) |
(1,533,467 |
) |
(223,434 |
) |
Less:
total comprehensive loss attributable to non-controlling interests
shareholders |
|
(3,462 |
) |
(2,009 |
) |
(293 |
) |
|
(27,861 |
) |
(22,359 |
) |
(3,258 |
) |
Total comprehensive loss attributable to Uxin’s
shareholders |
|
(879,799 |
) |
(303,487 |
) |
(44,219 |
) |
|
(2,676,531 |
) |
(1,511,108 |
) |
(220,176 |
) |
|
|
|
|
|
|
|
|
Net loss
attributable to ordinary shareholders |
|
(1,354,398 |
) |
(314,013 |
) |
(45,753 |
) |
|
(3,773,205 |
) |
(2,386,238 |
) |
(347,687 |
) |
Weighted
average shares outstanding-basic |
|
49,318,860 |
|
877,898,987 |
|
877,898,987 |
|
|
49,318,860 |
|
477,848,763 |
|
477,848,763 |
|
Weighted
average shares outstanding-diluted |
|
49,318,860 |
|
877,898,987 |
|
877,898,987 |
|
|
49,318,860 |
|
477,848,763 |
|
477,848,763 |
|
Net loss
per share-basic |
|
(27.46 |
) |
(0.36 |
) |
(0.05 |
) |
|
(76.51 |
) |
(4.99 |
) |
(0.73 |
) |
Net loss
per share-diluted |
|
(27.46 |
) |
(0.36 |
) |
(0.05 |
) |
|
(76.51 |
) |
(4.99 |
) |
(0.73 |
) |
* Share-based compensation charges included are as
follows:
|
Three months ended |
|
Year ended |
|
December 31, 2017 |
December 31, 2018 |
|
December 31, 2017 |
December 31,2018 |
|
RMB’000 |
RMB’000 |
USD’000 |
|
RMB’000 |
RMB’000 |
USD’000 |
|
|
|
|
|
|
|
|
Cost of
revenue |
- |
- |
- |
|
- |
158 |
23 |
Sales
and marketing |
- |
7 |
1 |
|
- |
411 |
60 |
General
and administrative |
28,217 |
71,576 |
10,429 |
|
165,873 |
1,033,498 |
150,585 |
Research
and development |
- |
789 |
115 |
|
- |
17,965 |
2,618 |
|
|
|
|
|
|
|
|
Uxin LimitedUnaudited
Consolidated Balance Sheets (In thousands except for
number of shares and per share data)
|
As of |
|
As of |
|
December 31, |
|
December 31, |
|
2017 |
|
2018 |
|
RMB |
|
RMB |
|
USD |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and
cash equivalents |
291,973 |
|
|
800,997 |
|
|
116,709 |
|
Restricted cash |
1,617,230 |
|
|
2,013,030 |
|
|
293,308 |
|
Accounts
receivable |
40,155 |
|
|
51,610 |
|
|
7,520 |
|
Short-term investments |
1,000 |
|
|
596,078 |
|
|
86,851 |
|
Amounts
due from related parties |
608,291 |
|
|
- |
|
|
- |
|
Advance
to consumers on behalf of financing partners |
827,417 |
|
|
521,908 |
|
|
76,044 |
|
Loan
recognized as a result of payment under the guarantee, net |
252,555 |
|
|
553,688 |
|
|
80,675 |
|
Advance
to sellers |
246,287 |
|
|
692,714 |
|
|
100,932 |
|
Other
receivables, net |
251,649 |
|
|
707,404 |
|
|
103,072 |
|
Inventory |
77,941 |
|
|
19,380 |
|
|
2,823 |
|
Prepaid
expenses and other current assets |
249,769 |
|
|
417,314 |
|
|
60,805 |
|
Financial lease receivables, net |
438,693 |
|
|
294,511 |
|
|
42,912 |
|
Total current assets |
4,902,960 |
|
|
6,668,634 |
|
|
971,651 |
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
Property, equipment and software, net |
156,625 |
|
|
199,271 |
|
|
29,035 |
|
Intangible assets, net |
9,949 |
|
|
21,179 |
|
|
3,086 |
|
Goodwill |
75,849 |
|
|
110,424 |
|
|
16,089 |
|
Long
term investments |
40,628 |
|
|
349,882 |
|
|
50,979 |
|
Other
non-current assets |
112,902 |
|
|
- |
|
|
- |
|
Total non-current assets |
395,953 |
|
|
680,756 |
|
|
99,189 |
|
|
|
|
|
|
|
TOTAL ASSETS |
5,298,913 |
|
|
7,349,390 |
|
|
1,070,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS’
(DEFICIT)/EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Short-term borrowings |
426,783 |
|
|
624,588 |
|
|
91,005 |
|
Accounts
payable |
65,694 |
|
|
156,320 |
|
|
22,777 |
|
|
|
|
|
|
|
Guarantee liabilities |
173,907 |
|
|
321,255 |
|
|
46,808 |
|
Deposit
of interests from consumers and payable to financing
partners—current |
732,273 |
|
|
482,827 |
|
|
70,350 |
|
Advance
from buyers collected on behalf of sellers |
226,891 |
|
|
375,803 |
|
|
54,756 |
|
Other
payables and accruals |
927,389 |
|
|
1,197,300 |
|
|
174,452 |
|
Deferred
revenue |
27,598 |
|
|
115,160 |
|
|
16,779 |
|
Other
current liabilities |
163,355 |
|
|
- |
|
|
- |
|
Derivative liabilities |
1,596,424 |
|
|
- |
|
|
- |
|
Convertible bonds |
- |
|
|
1,188,192 |
|
|
173,125 |
|
|
|
|
|
|
|
Total current liabilities |
4,340,314 |
|
|
4,461,445 |
|
|
650,052 |
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
Long-term borrowings |
374,104 |
|
|
481,801 |
|
|
70,201 |
|
Deposit
of interests from consumers and payable to financing
partners—non-current |
343,823 |
|
|
29,742 |
|
|
4,334 |
|
Deferred
tax liabilities |
1,653 |
|
|
4,759 |
|
|
693 |
|
|
|
|
|
|
|
Total non-current liabilities |
719,580 |
|
|
516,302 |
|
|
75,228 |
|
|
|
|
|
|
|
Total liabilities |
5,059,894 |
|
|
4,977,747 |
|
|
725,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine equity |
|
|
|
|
|
|
|
|
|
|
|
Series
A |
94,411 |
|
|
- |
|
|
- |
|
Series
A-1 |
69,193 |
|
|
- |
|
|
- |
|
Series
B |
180,294 |
|
|
- |
|
|
- |
|
Series
C |
408,559 |
|
|
- |
|
|
- |
|
Series
D |
1,703,667 |
|
|
- |
|
|
- |
|
Series
E |
1,146,351 |
|
|
- |
|
|
- |
|
Series
F |
1,563,657 |
|
|
- |
|
|
- |
|
Series
G |
3,214,932 |
|
|
- |
|
|
- |
|
Redeemable non-controlling interests |
39,580 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
Total mezzanine equity |
8,420,644 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
Shareholders’ (deficit)/equity: |
|
|
|
|
|
Ordinary
shares |
30 |
|
|
575 |
|
|
84 |
|
Additional paid-in capital |
- |
|
|
12,967,986 |
|
|
1,889,496 |
|
Accumulated other comprehensive income |
76,607 |
|
|
86,061 |
|
|
12,539 |
|
Accumulated deficit |
(8,207,801 |
) |
|
(10,680,489 |
) |
|
(1,556,197 |
) |
|
|
|
|
|
|
Total Uxin’s shareholders’ (deficit)/equity |
(8,131,164 |
) |
|
2,374,133 |
|
|
345,922 |
|
Non-controlling interests |
(50,461 |
) |
|
(2,490 |
) |
|
(362 |
) |
Total shareholders' (deficit)/equity |
(8,181,625 |
) |
|
2,371,643 |
|
|
345,560 |
|
|
|
|
|
|
|
TOTAL LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS’
(DEFICIT)/EQUITY |
5,298,913 |
|
|
7,349,390 |
|
|
1,070,840 |
|
|
|
|
|
|
|
Uxin Limited
Unaudited Reconciliations of GAAP And
Non-GAAP Results (In thousands except for number of shares
and per share data)
|
Three months ended |
|
Year ended |
|
December 31, 2017 |
December 31, 2018 |
|
December 31, 2017 |
December 31,2018 |
|
RMB’000 |
|
RMB’000 |
|
USD’000 |
|
|
RMB’000 |
|
RMB’000 |
|
USD’000 |
|
|
|
|
|
|
|
|
|
Loss from operations |
(483,142 |
) |
(266,035 |
) |
(38,763 |
) |
|
(1,823,186 |
) |
(2,565,923 |
) |
(373,868 |
) |
Add: Share-based compensation expenses |
|
|
|
|
|
|
|
- Cost of revenue |
- |
|
- |
|
- |
|
|
- |
|
158 |
|
23 |
|
- Sales and marketing |
- |
|
7 |
|
1 |
|
|
- |
|
411 |
|
60 |
|
- General and administrative |
28,217 |
|
71,576 |
|
10,429 |
|
|
165,873 |
|
1,033,498 |
|
150,585 |
|
- Research and development |
- |
|
789 |
|
115 |
|
|
- |
|
17,965 |
|
2,618 |
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted loss from operations |
(454,925 |
) |
(193,663 |
) |
(28,218 |
) |
|
(1,657,313 |
) |
(1,513,891 |
) |
(220,582 |
) |
|
Three months ended |
|
Year ended |
|
December 31, 2017 |
December 31, 2018 |
|
December 31, 2017 |
December 31,2018 |
|
RMB’000 |
|
RMB’000 |
|
USD’000 |
|
|
RMB’000 |
|
RMB’000 |
|
USD’000 |
|
|
|
|
|
|
|
|
|
Net loss |
(901,607 |
) |
(314,565 |
) |
(45,833 |
) |
|
(2,747,798 |
) |
(1,538,285 |
) |
(224,136 |
) |
|
|
|
|
|
|
|
|
Add: Share-based compensation expenses |
|
|
|
|
|
|
|
-
Cost of revenue |
- |
|
- |
|
- |
|
|
- |
|
158 |
|
23 |
|
-
Sales and marketing |
- |
|
7 |
|
1 |
|
|
- |
|
411 |
|
60 |
|
-
General and administrative |
28,217 |
|
71,576 |
|
10,429 |
|
|
165,873 |
|
1,033,498 |
|
150,585 |
|
-
Research and development |
- |
|
789 |
|
115 |
|
|
- |
|
17,965 |
|
2,618 |
|
|
|
|
|
|
|
|
|
Fair value change of derivative liabilities |
384,674 |
|
- |
|
- |
|
|
885,821 |
|
(1,185,090 |
) |
(172,673 |
) |
|
|
|
|
|
|
|
|
Non-GAAP adjusted net loss |
(488,716 |
) |
(242,193 |
) |
(35,288 |
) |
|
(1,696,104 |
) |
(1,671,343 |
) |
(243,523 |
) |
|
|
|
|
|
|
|
|
Non-GAAP
adjusted net loss per share—basic |
(9.84 |
) |
(0.27 |
) |
(0.04 |
) |
|
(33.83 |
) |
(3.45 |
) |
(0.50 |
) |
Non-GAAP
adjusted net loss per share—diluted |
(9.84 |
) |
(0.27 |
) |
(0.04 |
) |
|
(33.83 |
) |
(3.45 |
) |
(0.50 |
) |
Weighted
average shares outstanding—basic |
49,318,860 |
|
877,898,987 |
|
877,898,987 |
|
|
49,318,860 |
477,848,763 |
|
477,848,763 |
|
Weighted
average shares outstanding—diluted |
49,318,860 |
|
877,898,987 |
|
877,898,987 |
|
|
49,318,860 |
477,848,763 |
|
477,848,763 |
|
Note: The conversion of Renminbi (RMB) into U.S. dollars (USD) is
based on the certified exchange rate of USD1.00=RMB6.8632 as of the
end of December 2018 stipulated by the People’s Bank of China.
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