#China #Beijing #financial results #Uxin Limited #used cars

Uxin Limited's Stellar Financial Results for Q3 2024

Uxin Limited, recognized as China’s leading used car retailer, has recently disclosed its unaudited financial results for the quarter ending September 30, 2024. The company has shown remarkable growth in various key metrics, reflecting the strengthening demand in the used car market amidst a recovering economy.

Key Highlights

During the third quarter of 2024, Uxin reported a transaction volume of 7,046 units, marking a significant increase of 25.7% from the previous quarter and an 81.4% rise year-over-year. Retail transaction volumes reached 6,005 units, up 46.8% from the prior quarter and an astonishing 162.6% compared to the same period in the previous year. This surge is attributed to Uxin's innovative superstore model, which provides a compelling value proposition to customers.

Total revenues for this quarter climbed to RMB 497.2 million (approximately US$70.9 million), indicating a 23.9% increase from RMB 401.2 million in the previous quarter and a 39.6% rise from RMB 356.1 million year over year. The gross margin also improved to 7.0%, up from 6.4% in the last quarter and 6.2% in the same period last year, showcasing better cost management and revenue growth strategies.

Operational Insights

Uxin's CEO, Mr. Kun Dai, expressed enthusiasm regarding the company's performance, noting that the recent results reflect the effectiveness of their retail strategy. Customer satisfaction metrics, as determined by the Net Promoter Score (NPS), have escalated to 66, holding the highest industry rating for 11 consecutive quarters. Looking ahead, Uxin anticipates retail transaction volumes to fall between 7,800 and 8,100 units from October to December 2024, indicating an anticipated increase of over 150% year-over-year.

The expansion of Uxin's footprint into new regions is also noteworthy, with recent collaborations with the Zhengzhou Airport Economic Zone and Wuhan Municipal Government for new superstore openings. Both cities, with populations of around 5 million vehicles each, provide a robust platform for Uxin’s model of retail superstores, which is expected to further enhance sales performance in the upcoming years.

Financial Adjustments and Future Directions

The CFO, Mr. Feng Lin, highlighted a shift in Uxin's financial reporting practices, aligning the fiscal year with the calendar year (January 1 to December 31) to improve transparency and financial oversight. This adjustment positions Uxin to better communicate with investors and synchronizes with industry standards.

With total revenues in Q3 reflecting RMB 497 million, retail vehicle sales revenue surged to RMB 444 million, a 79% increase compared to last year. The operational losses narrowed significantly to RMB 38.6 million, indicating improved efficiency and reduced costs across the board. Furthermore, Uxin aims to reach positive adjusted EBITDA in the next quarter, marking a vital milestone in its journey towards profitability.

Conclusion

As Uxin Limited continues to evolve in a competitive market, its robust financial performance and proactive expansion strategies demonstrate its commitment to leveraging industry opportunities for sustained growth. With increasing transaction volumes, improving margins, and a clear vision for the future, Uxin is poised for a strong finish to 2024 and beyond, reinforcing its position as the foremost player in China's used car market.