China’s leading used car e-commerce platform, Uxin (NASDAQ: UXIN), is on the path to profitability according to its Q3 unaudited fiscal report, industry experts said.
The earnings reportshowed that during the reporting period, Uxin sold 221,309 used cars, up by 19.7% YoY. Although the Chinese economy has faced challenges in the third quarter, Uxin’s total revenue exceeded expectations to reach RMB863.7 million (USD125.5 million), an increase of 59.6% over the same period last year. Uxin continued to maintain high-speed growth due to scaling effects and improvements in its operating capacity.
So far Uxin has accumulated about RMB4.5 billion in liquidity including cash, short-term fixed deposits, and short-term receivables, sources close to the company said. From the third quarter results, Uxin’s overall business is becoming more and more robust. The company is on the path to profitability, with non-GAAP net loss expected to be reduced by 50% in the fourth quarter, according to industry experts.
Moreover, the revenue from Uxin’s 2C business was RMB612.2 million. In particular, 2C transaction revenue was RMB138.6 million, up by 165.3% YoY. Moreover, 2C loan revenue was RMB473.6 million, an increase of 96.4% YoY. Due to the strong driving force of 2C business, analysts predict that by the fourth quarter Uxin’s business income will have reached between RMB1.02 billion and RMB1.06 billion.
Though many used car e-commerce companies have faced cash flow problems, Uxin has found a business formula that has allowed it to steadily expand its business.
(Top photo from Uxin)