Chinese Used Car Retailer Uxin Aims For Achieving Overall Profitability By 2024: Details

Used car retailer Uxin Ltd UXIN reported financial results for the first and second quarters of fiscal year 2024.

The company's second-quarter FY24 sales declined 42.5% year-on-year to RMB356.1 million ($48.8 million). The company's adjusted loss per ADS for the quarter was $(0.01).

The transaction volume for the quarter was 3,884 units, a 35.8% decline Y/Y. Retail transaction volume was 2,287 units, a decrease of 26.4% Y/Y.

The gross margin for the quarter was 6.2% versus 1.3% last year due to accelerated sales turnover, value-added service revenue, and decreasing per-vehicle costs driven by advanced factory production.

The operating loss for the quarter was RMB(66.4) million or $(9.1) million versus RMB(106.4) million Y/Y.

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The company held RMB17.6 million in cash and equivalents as of September 30, 2023.

The company also reported Q1 revenue of RMB289.0 million ($39.9 million), down by 53.8% Y/Y. The adjusted loss per ADS for the quarter was $(0.01).

Kun Dai, Founder, Chair, and CEO, commented, "In addition, our Hefei flagship factory store, jointly established with Hefei City, started trial operation in September. With a total construction area of 450,000 square meters, it is equipped with the world's most advanced used car remanufacturing factory and the world's largest used car retail superstore, capable of accommodating up to 10,000 retail vehicles."

"We aim to achieve EBITDA profitability at all superstore level by March 2024 and achiever whole company EBITDA profitability by September 2024."

Outlook: Uxin sees Q3 revenue of RMB 410 million to RMB 430 million. The stock has lost 61.2% YTD.

Price Action: UXIN shares traded higher by 2.15% at $1.19 premarket on the last check Tuesday.