Page 1

优 信 UXIN GROUP Uxin Reports Fourth Quarter and Fiscal Year 2021 Financial Results July 30 , 2021 BEIJING , July 30 , 2021 ( GLOBE NEWSWIRE ) -- Uxin Limited ( " Uxin " or the " Company " ) ( Nasdaq : UXIN ) , a leading nationwide online used car dealer in China , today announced its unaudited financial results for the fourth quarter and fiscal year ended March 31 , 2021 . Uxin Fiscal Year Ended March 31 , 2021 Annual Letter to Shareholders Dear Shareholders , On behalf of Uxin Limited , I would like to express my sincere appreciation for your longstanding trust and support . In this annual shareholder letter , I am pleased to provide updates on our business performance and some of our achievements over the past twelve months . Uxin turned 10 years old in 2021 , which is also a year of great significance for our company . In a challenging business environment reshaped by the COVID - 19 pandemic , we completed a series of upgrades and adjustments to our business model . We remained true to our original mission and committed our efforts to creating long - term value for our customers by providing high quality and value - for - money used vehicles , and a full suite of car purchasing services . We are pleased to record another solid performance for the quarter ended March 31 , 2021. We delivered on our operational target set in the quarter ended December 31 , 2020 , despite a slower quarter in the Chinese domestic used car market due to the Chinese New Year holiday and constraints on our working capital . As you can see from our guidance for the quarter ended June 30 , 2021 , Uxin has returned to a solid growth trajectory following our successful transformation into an inventory - owning model . In the past year , we faced the challenge of sustaining sufficient working capital for our operations . This also put significant pressures on our ability to continue as a going concern . Together , we overcame the pressing financial constraints and delivered some key achievements . First of all , we have transformed our business into an inventory - owning model . The transformation into an inventory - owning model has enabled us to substantially enhance the quality of the vehicles we offer to our customers as we apply very strict inspection standards . This was a critical decision driven by the enormous pressure on our business from the combined impact of COVID - 19 and severe capital constraints . We faced the challenges head on and successfully transformed the business with a stronger foundation of a much leaner and efficient operation . As a customer - centric company , we believe the key to creating customer value is to continuously improve on customer satisfaction . In a used car transaction , the key to customer satisfaction is to enhance vehicle quality and provide best - in - class after - sales services . Under an inventory - owning model , we can have better control over the quality of our vehicles . Since September 2020 , our veteran team have acquired used cars in more than 40 cities across China , and only the ones that met our strict standards in terms of quality and value for money were added to our vehicle inventory . Customers come first . In order to better implement our goal of improving customer satisfaction , we have been closely monitoring our sales net promoter score , or NPS , since the second quarter of 2020. Our committed efforts in the past year have generated some impressive results . We were happy to see that our NPS remained at 42 in the quarter ended March 31,2021 , the same as the previous quarter despite of the negative impact on vehicle deliveries during the Chinese New Year holiday . To put the much improved score in perspective , our NPS was only 10 when we just started to monitor this metric in the quarter ended June 30 , 2020. Maintaining an industry high NPS of 42 for two consecutive quarters reflects the strong customer recognition of our premium quality used vehicles and services . It also demonstrates that we are heading in the right direction with our inventory - owning business model . Moving forward , we will conduct regular assessments and necessary improvements to our products and services based on customers ' feedback , in order to provide the best - in - class car - purchasing experience in the industry . After more than a year of effort , we divested our loan facilitation business and settled our remaining guarantee liabilities in July 2020. In order to meet our customers ' financing need , we established new cooperation with financial institutions to provide third - party auto loan financing options which we no longer undertake any credit risks . We also made sustained efforts to enhance our operational cost management and adjusted our organizational structure accordingly following our business model transformation . Meanwhile , we constantly refined every step in our business process in order to further boost our operational efficiency . In the first quarter of 2021 , non - GAAP adjusted loss from continuing operations decreased by 40 % to RMB98 million compared with the quarter ended December 31 , 2020. In the next quarter , we expect our operational loss to further narrow down . So far , we have developed a set of refined operational models that we believe are well aligned with our business development . Even when our cash liquidity was tight , such operational models still allowed us to focus our resources and capital on creating long - term value for our customers . Our first inspection and reconditioning center ( IRC ) in Xi'an was officially in operation in March 2021. As an important infrastructure part of our business transformation , IRC has been designed to service a range of functions including vehicle refurbishment , warehousing and exhibition . Establishing our own IRC allows us to have stronger control and management over the front end of our supply chain . In the past six months , we have optimized our business processes in relation to the IRC business . As our inventory of used vehicles increases , we are expecting better operating leverage driven by our investment in IRC . During the quarter ended March 31 , 2021 , we expanded our sourcing of vehicles to individual car owners . This enriched our channels for sourcing high - quality vehicles , and allowed us to empower the supply chain with our expertise in used cars from the very beginning . We also established strict inspection standards , so only select premium vehicles that met our online retail requirements will be refurbished and featured on our proprietary online platform . Those that do not meet our standards to list and sell through our e - commerce platform will be sold to wholesalers through offline dealerships . Vehicle wholesale is an efficient channel to sell used cars . When our working capital was constrained , the wholesale vehicle sales business enabled