Uxin Limited (NASDAQ: UXIN) has filed its annual FY2021 report on Form 20-F with SEC for the year ended March 31.
COVID-19 pandemic affected the used car market
The company stated in the report that the COVID-19 pandemic adversely affected its financial performance and operations. In addition, Uxin said that the pandemic had negatively impacted the used car industry, with disruptions affecting supply chains and infrastructure since January last year. As a result, used car markets and dealerships were shuttered, and the closure of roads affected the delivery and logistics of used cars across china.
Total revenue for the quarter ended March 31 was $29.9 million, with transactions volume of 1,719 units, down from 2.307 units the previous quarter. Uxin’s inspection and reconditioning center in Xi’an became operational on March 31, 2021. Usually, the quarter ending March 31, 2021, is traditionally the off-season in the used car market in China because of the Spring Festival holiday. Regardless of the drop units delivered from the previous quarter, the company saw its operating efficiencies continue to improve due to cost optimization and reduction.
Uxin reported revenue of $100.3 million in FY 2021
For the whole year, total revenue was $100.3 million because of the shift to the inventory owning model. Interestingly the company recognized the last and current-quarter revenue on a gross basis. Transaction volume was 10,566 units which was a drop from 83,037 units in the year before.
Uxin CEO, Chairman, and Founder Kun Dai said, “We are pleased to report another solid result for the quarter ended March 31, 2021 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 we aimed at growing the business at the most efficient cost level, despite lower sales volume and revenue in the quarter, the first time in our history that our quarterly operational loss has dropped below the RMB100 million mark.”