Beijing Business Daily News (Reporter Liu Yang) On November 28th, used car retailer Uxin Group released an unaudited financial report, showing a total transaction volume of 3884 vehicles in the third quarter of this year, a month on month increase of 19.4%; The retail transaction volume was 2287 vehicles, a month on month increase of 35.6%; The total revenue was RMB 356 million, a month on month increase of 23.2%; The gross profit margin was 6.2%, a significant increase from 1.3% last year. Meanwhile, the adjusted EBITDA decreased by 47.1% year-on-year. Youxin Group stated, "Next year, the company can achieve overall EBITDA profitability."
According to Uxin Group, the overall second-hand car market has been full of challenges since the beginning of this year. However, Uxin Group's inventory turnover has continued to accelerate, the penetration rate of value-added services has steadily increased, and the cost of bicycles has decreased due to the refurbishment of remanufacturing factories, resulting in a significant improvement in gross profit margin in the third quarter. The financial report shows that the gross profit margin of Youxin Group increased by 4.9 percentage points year-on-year in the third quarter.
Meanwhile, the Youxin second-hand car online nationwide purchase+offline hypermarket model, which has completed the 0-1 phase, has been validated in the market. According to the financial report, the Xi'an store, which was relocated and upgraded in December last year, achieved EBITDA profit in September this year. The adjusted EBITDA of Youxin Group decreased by 47.1% year-on-year. With the increase in inventory leading to sales growth and increasing profitability, the company is confident in achieving large-scale profitability.
According to Lin Feng, the Chief Financial Officer of Uxin, in September this year, Uxin signed an agreement with the local government of Hefei. Hefei Construction Investment North City Industrial Investment will inject up to 1.5 billion yuan into Uxin's Hefei subsidiary in the next 10 years. The first phase of investment of approximately 150 million yuan has been basically completed. In addition, Youxin has obtained nearly RMB 300 million in credit lines from several well-known financial institutions, providing sufficient financial support for business growth and profit goals.
Dai Kun, founder, chairman, and CEO of Uxin, said that Uxin is getting closer to its profit target. The vehicle pricing system based on AI kernel has been completed, ensuring that the vehicle circulation cycle is within 45 days; Industry leading second-hand car remanufacturing factories greatly improve vehicle circulation speed and reduce maintenance costs; For seven consecutive quarters, the NPS (Net Customer Recommendation Index) has remained at the industry's highest level of around 60 points, bringing in a steady stream of natural customer traffic. "We plan to achieve store level EBITDA profitability by March next year and overall company EBITDA profitability by September," he said.