UXIN Ltd profits rise 60%

On September 30, 2019, the Company announced that it had entered into definitive agreements with Golden Pacer, a leading financial technology platform in China, to divest its loan facilitation related business, following the announcement made on July 12, 2019 that the Company entered into a binding term sheet with Golden Pacer relating to the divestiture. The transactions contemplated under the definitive agreements are subject to certain closing conditions and expected to close by the end of 2019. Pursuant to the agreements, Golden Pacer takes over the divested business starting from July 1, 2019. Discontinued operations related to the divestiture will be fully consolidated into and reflected on Golden Pacer’s income statement starting from the third quarter of 2019 to the closing date. Assets and liabilities related to the divested business prior to July 1, 2019 will be recorded as the assets and liabilities held for sale on the Company’s balance sheet until these assets and liabilities are transferred to Golden Pacer. The discussion below in this press release relates to the continuing operations only, unless indicated otherwise.

Third Quarter 2019 Operational Highlights

2C Transaction volume increased to 23,566 units in the third quarter of 2019, representing a year-over-year growth of 107.3%.
2B Transaction volume decreased to 30,658 units in the third quarter of 2019, representing a year-over-year decline of 66.6%, as a result of the Company’s continuing shift of strategic focus towards its 2C business.
2C GMV1 increased to RMB2,828 million in the third quarter of 2019, representing a year-over-year growth of 110.0%.
2B GMV decreased to RMB1,537 million in the third quarter of 2019, representing a year-over-year decline of 64.1%.

Third Quarter 2019 Financial Highlights

Total revenues were RMB461.4 million (US$65.2 million) in the third quarter of 2019, representing a year-over-year growth of 33.4%.
2C Revenue was RMB327.5 million (US$46.3 million) in the third quarter of 2019, representing a year-over-year growth of 246.9%.
2B Revenue was RMB71.7 million (US$10.1 million) in the third quarter of 2019, representing a year-over-year decline of 62.5%.
Gross profit was RMB254.8 million (US$36.0 million) in the third quarter of 2019, representing a year-over-year growth of 60.8%. Gross margin increased to 55.2% in the third quarter of 2019, compared to 45.8% in the same period last year.
Loss from continuing operations was RMB253.1 million (US$35.8 million) in the third quarter of 2019, a decrease from RMB489.8 million in the same period last year.
Non-GAAP adjusted loss from continuing operations was RMB254.3 million (US$36.0 million) in the third quarter of 2019, a decrease from RMB418.1 million in the same period last year.
Net loss from continuing operations was RMB267.2 million (US$37.8 million) in the third quarter of 2019, a decrease from RMB516.9 million in the same period last year.
Non-GAAP adjusted net loss from continuing operations was RMB268.4 million (US$37.9 million) in the third quarter of 2019, a decrease from RMB445.2 million in the same period last year. Non-GAAP adjusted net loss from continuing operations as a percentage of total revenues was 58.2% in the third quarter of 2019, a decrease from 128.7% in the same period last year.