Page 1

优 信 UXIN GROUP Uxin Reports Unaudited Second Quarter of Fiscal Year 2022 Financial Results December 15 , 2021 BEIJING , Dec. 15 , 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 quarter ended September 30 , 2021 . Highlights for the Quarter Ended September 30 , 2021 • Transaction volume was 3,648 units for the three months ended September 30 , 2021 , compared with 3,011 units last quarter and 2,653 units in the same period last year . • Total revenues were RMB345.9 million ( US $ 53.7 million ) for the three months ended September 30 , 2021 , an increase of 24.5 % compared with RMB277.8 million last quarter and compared with RMB76.4 million in the same period last year . • Gross margin was 4.2 % for the three months ended September 30 , 2021 , compared with 4.0 % last quarter and negative 22.4 % in the same period last year . • Loss from continuing operations was RMB45.9 million ( US $ 7.1 million ) for the three months ended September 30 , 2021 , compared with RMB50.7 million last quarter and RMB162.6 million in the same period last year . • Non - GAAP adjusted loss from continuing operations was RMB43.2 million ( US $ 6.7 million ) for the three months ended September 30 , 2021 , compared with RMB44.6 million last quarter and RMB178.3 million in the same period last year . Mr. Kun Dai , Founder , Chairman and Chief Executive Officer of Uxin , commented , " We have gradually increased our inventory and selections since we received the first tranche of funding in early July this year , and our business is back on track to solid growth . After more than six months in operation , our streamlined operational processes at the Xi'an inspection and reconditioning center ( IRC ) have matured . This November , we launched our second IRC in Hefei , Anhui Province . The Hefei IRC is expected to see further improvements in terms of operation environment , inventory , branding and after - sales services . In addition , we ramped up investments in technology and equipment to further boost our refurbishment efficiency , while constantly lowering cost per unit . In terms of vehicle sourcing , we started to build an inventory of used EVs , including well - known Chinese and foreign EV brands . What is more , our sales net promoter score , or NPS , increased for the fourth consecutive quarter to 56 , reflecting our strong brand recognition and high satisfaction rates of our quality vehicles and service capabilities from our customers . Going forward , we remain committed to our current direction in terms of business development and operational enhancements of our regional IRCs . We will continue to strengthen our end - to - end infrastructure from vehicle sourcing , sales channels , delivery to after - sales services . We have come a long way and with this expertise , we are well positioned to bring the best - in - class car purchasing experience to our customers nationwide . " Mr. Feng Lin , Chief Financial Officer of Uxin , said : " In the quarter , our business progressed smoothly according to plan . Total vehicle sales volume increased by 21 % quarter - over - quarter , among which retail sales volume increased by 51 % . As a result , our total revenues increased by 25 % sequentially . Meanwhile , we continued to optimize our cost and expense structure to improve the capital efficiency of every business process , and boost our overall operational efficiency . In addition , we have received another US $ 27.5 million cash injection ahead of schedule , which is part of the US $ 50 million of the second tranche of our financing transaction . We expect to receive the remaining US $ 22.5 million for the second tranche over the next few months . The new capital will enable us to further increase our vehicle inventory and drive further growth in our business . " Financial Results for the Quarter Ended September 30 , 2021 Total revenues were RMB345.9 million ( US $ 53.7 million ) for the three months ended September 30 , 2021 , compared with RMB76.4 million in the same period last year . The increase was primarily due to increases in revenue recognized on a gross basis as a result of the Company selling used cars from its own inventory since September 2020 , an increase in transaction volume driven by further market penetration in existing markets as well as increasing brand loyalty by offering cars with great value and outstanding customer service . Retail vehicle sales revenue was RMB136.3 million ( US $ 21.2 million ) for the three months ended September 30 , 2021 , compared with RMB36.1 million in the same period last year . For the three months ended September 30 , 2021 , retail transaction volume was 1,027 units , an increase of 51.3 % from 679 units last quarter and an increase of 233.4 % from 308 units in the same period last year . Wholesale vehicle sales revenue was RMB201.3 million ( US $ 31.2 million ) for the three months ended September 30 , 2021 , compared with nil in the same period last year . Wholesale vehicle sales included sales of used vehicles acquired from individuals that did not meet the Company's retail standards to list and sell through its proprietary ecommerce platform , and therefore , sold through offline dealerships . Other revenue was RMB8.3 million ( US $ 1.3 million ) for the three months ended September 30 , 2021 , compared with RMB15.1 million in the same period last year . The decrease was mainly due to revenue declines from both the advertising and the vehicle transportation businesses . Cost of revenues was RMB331.3 million ( US $ 51.4 million ) for the three months ended September 30 , 2021 , compared with RMB93.5 million in the same period last year . The increase was primarily due to an increase in vehicle acquisition cost which was a newly added cost and included in cost of revenues beginning in September 2020 when the Company transitioned into an inventory - owning model . Gross margin was 4.2 % for the three months ended September 30 , 2021 , compared with negative 22.4 % in the same period last year . Due to the Company's transition into an inventory - owning model beginning in September 2020 , revenue recognition and the components of the Company's cost of revenues were significantly different in the three months ended September 30 , 2021 , compared with the same period last year , which has led to different margin profiles .