On the evening of November 25th, UXIN, a used car e-commerce platform, released its third quarter financial report before the US stock market, showing significant growth. However, due to the recognition that the used car market is slowing down, despite the expected EBITTDA profit by the end of the year and planned expansion, the company's stock price still opened high and closed low at $5.08, a sharp drop of 19.49%.
As of September 30th, the unaudited third quarter report shows that the trading volume of Youxin was 7046 units, a year-on-year increase of 81.4% and a month on month increase of 25.7%; The retail transaction volume reached a new high of 6005 units, a year-on-year increase of 162.6% and a month on month increase of 46.8%; The quarterly operating revenue was RMB 498 million, a year-on-year increase of 39.6% and a month on month increase of 23.9%. Retail revenue increased to RMB 444 million, a year-on-year growth of 78.5% and a month on month growth of 36.8%. Among them, retail automobile sales in the third quarter were RMB 444 million.
The gross profit for the third quarter was 34.86 million yuan, compared to 22.03 million yuan in the same period last year. Thanks to the growth in retail sales and the improvement of value-added services, Uxin's gross profit margin has further increased to 7.0%, an increase of 0.8 and 0.6 percentage points respectively from the same period last year and the previous quarter, setting a new high since transitioning to a self operated business model. The adjusted EBITDA loss was 9.2 million yuan, a year-on-year decrease of 80%, and an improvement of 72.8% compared to the previous quarter.
In the third quarter of 2024, Uxin's expenses amounted to 84.33 million yuan, including sales and marketing expenses of 56.06 million yuan, management expenses of 26.07 million yuan, and research and development expenses of 2.36 million yuan.
Uxin's operating loss for the third quarter of 2024 was 38.65 million yuan, with a net loss of 59.17 million yuan.
As of September 30, 2024, Uxin held cash and cash equivalents of RMB 29.1 million, compared to RMB 23.3 million as of March 31, 2024. As of September 30, 2024, Uxin's current liabilities exceeded its current assets by approximately RMB 403.6 million.
Despite acknowledging the current market slowdown, Uxin is confident in the long-term potential of China's used car market. The company has gained over 15% market share in its operating cities and is planning to open new super stores (hypermarkets) in Zhengzhou and Wuhan. Dai Kun, CEO of Uxin, believes that China's relatively low per capita car ownership indicates enormous market growth potential.
According to Lin Feng, CFO of Uxin, driven by continuous increase in sales, improvement in gross profit, and continuous optimization of expenses, Uxin has achieved EBITDA profitability at the store level. According to the performance guidance, the retail transaction volume is expected to reach approximately 7800-8100 units in the fourth quarter of 2024, and it is expected to achieve group level EBITDA profitability for the first time.
Lin Feng also stated that it is expected that the new super store will achieve a break even point within 6 to 12 months after its opening.
Uxin expects a retail transaction volume of 7800 to 8100 vehicles in the fourth quarter of fiscal year 2024, with a total revenue of RMB 560 million to RMB 580 million for the next quarter. The goal is to achieve a positive adjusted EBITDA in the fourth quarter of fiscal year 2024.
Uxin was founded in 2011, initially as a platform focused on second-hand car trading. With the changes in the market and the diversification of consumer demands, Uxin has gradually developed into a comprehensive second-hand car service platform. It not only provides vehicle trading services, but also covers a series of related services such as finance, insurance, and after-sales. Listed on NASDAQ in June 2018.
On April 6, 2021, Uxin Group's first used car super supermarket in China settled in Xi'an, covering an area of over 24000 square meters and having 13 warehouses, carrying functions such as warehousing, testing, preparation, shelving and photography, and store display. The store is linked with online channels to provide one-stop car purchasing services for citizens. Uxin Second hand Car Super Supermarket offers free home delivery to 12 cities around Xi'an and one click online shopping in over 200 cities nationwide. It is the largest single brand second-hand car "flagship store" in the northwest region.
On November 4, 2021, Uxin's second hypermarket landed in Hefei.
On July 8, 2024, Uxin reached a strategic cooperation agreement with Zhengzhou Airport Zone, with a planned total investment of 700 million yuan, to jointly build the Uxin Used Car Zhengzhou Warehouse style Factory Store project.
On November 20th, the latest news was that by the end of the year, the automotive ecological intelligent manufacturing industry base jointly built by Uxin Group and Wuhan Economic Development Zone will be put into operation in Junshan New City, mainly constructing second-hand car remanufacturing factories and one-stop warehousing supermarkets. The investment in the base will reach 600 million yuan, and it is expected that the first phase of the project will be put into trial operation in the first quarter of 2025. This production base is divided into two parts: a remanufacturing factory and a used car storage mall. It is also the first super used car trading complex in Wuhan that integrates used car maintenance and repair, storage, display, trading, transfer, and after-sales service.
Uxin is not the only choice in the second-hand car market, and other platforms such as Guazi Second hand Car and Renrenche are also fiercely competing. Each platform has its unique advantages and disadvantages. For example, Guazi used cars are known for their "person to person" trading model, while Renrenche emphasizes the transparency and authenticity of vehicle information. Consumers can choose the most suitable platform based on their own needs.
As of the close on November 25th, the market value of Uxin was $955 million.