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Uxin (UXIN.US) Financial Report: Quarterly Retail Volume Up 38.3% and Expected to Turn Profitable by the End of the Year

AInvestWednesday, Jul 31, 2024 4:50 am ET
1min read

According to Zhitong Finance, on July 31, 2023, Uxin Group (UXIN.US), a leading used car retailer in China, released its unaudited quarterly financial results for the period from January to March 2024. The report showed that in the traditional slow season of the Spring Festival holiday, Uxin Group's total revenue reached RMB3.2 billion, and both the total transaction volume and retail transaction volume increased year-on-year. Among them, the total transaction volume was 4,058 vehicles, up 12.5% YoY; the retail transaction volume was 3,124 vehicles, with a slight fluctuation in the same period, up 38.3% YoY. The group's operating efficiency and profitability continued to improve, with the gross margin rising to 6.6%, up from 4.8% in the previous quarter, and the adjusted EBITDA loss decreased to a historical low level.

At the same time, Uxin Group also released its annual report for the fiscal year ended March 2024. The gross margin of the group was 5.9%, up 500% YoY from 1.2% in the previous fiscal year; the adjusted EBITDA loss was RMB1.76 billion, down nearly 40% YoY.

The report showed that Uxin's offline super store + online national purchase model has been recognized by the government, capital and consumers. Uxin's super store has become the first brand in the used car industry recognized by consumers in its region. The net promoter score (NPS) has been maintained at around 60 points, the highest in the industry, for 10 consecutive quarters. The standardized, process-oriented and digital operation system has been basically matured in the past year, and the operation ability and operating efficiency are far higher than the industry average.

The report disclosed that in July this year, Uxin and Zhengzhou Aviation Zone reached a strategic cooperation, and signed a project to build a warehouse store in Zhengzhou. The two invested RMB1.7 billion to establish Uxin (Zhengzhou) Intelligent Remanufacturing Co., Ltd. to operate the project.

Founder, chairman and CEO of Uxin Group, DAI Kun said that the company will continue to promote a significant increase in sales, and expects the retail sales volume to grow by 150% YoY in the next fiscal year, and the company will achieve overall EBITDA profitability in the single quarter by the end of 2024. In addition to the Zhengzhou project, Uxin Group is also actively promoting the implementation of the super store in multiple cities, which will continue to promote the expansion and business growth of Uxin nationwide in the future. Uxin will continue to create long-term value for customers, lead the transformation and upgrading of the used car industry in China.

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