Uxin Group Reports Strong Growth in Second-Hand Car Retail Business in Q3 FY 2024
Beijing-based second-hand car retailer Uxin Group (NASDAQ: UXIN) unveiled its unaudited quarterly financial results for the third quarter of fiscal year 2024 (October-December 2023) on April 25. Despite a looming new car market price cuts in China, Uxin Group managed to maintain a robust growth trajectory in its second-hand car retail business.
According to a report by DoNews, Uxin Group recorded a retail transaction volume of 3,081 units in the quarter, marking a month-on-month increase of 34.7% and a year-on-year growth of 5.2%. The total revenue for the period stood at RMB 410.5 million, showing a month-on-month increase of 15.3%. Moreover, the gross profit margin witnessed a significant improvement, soaring to 4.8% from 0.6% in the same period last year, with adjusted EBITDA losses shrinking by 43% year-on-year.
Uxin’s unique offline superstores and online nationwide shopping models have garnered widespread consumer recognition. With a laser focus on operational efficiency, the company’s average sales cycle of vehicles within 30 days far outstrips the industry average.
The quarterly report further revealed that Uxin has embarked on a strategic inventory expansion plan. By the end of 2024, the number of vehicles available for sale in existing stores is set to reach 3-4 times the current level, with plans for new store openings progressing smoothly. The company anticipates a sales and revenue surge of over 200% in fiscal year 2025 (April 2024-March 2025).
Founder, chairman, and CEO of Uxin, Dai Kun, expressed unwavering confidence in the growth prospects of China’s used car industry, the operational efficiency advantages of Uxin’s hypermarket model, and the current growth momentum of the company. Having achieved store-level profitability in January 2024, Uxin envisions reaching company-wide single-month EBITDA profitability by September 2024 and single-quarter EBITDA profitability from October to December 2024 in the third quarter of fiscal year 2025.
Earlier, Uxin completed a fresh round of financing, with Dai Kun himself participating in the additional share issuance and subscription. The company remains committed to driving long-term, high-quality performance growth under the leadership of Dai Kun.