On December 15, Uxin Group, a domestic used car online dealer, released its unaudited financial report for the second quarter of fiscal 2022.
Judging from the stock price performance after the release of the second quarterly report, Uxin gained more than 30% of the stock price increase before the market. Obviously, the capital market seems to be more optimistic about Uxin's performance. Uxin is gradually getting rid of the contradictions around itself - embracing the outlet of new energy used cars and strengthening the construction of the whole process system of used car transactions.
But in this period of change in which new energy vehicles are rising and traditional fossil fuel vehicles are gradually withdrawing, Uxin still needs to think about what the correct answer is in the future.
Sales revenue has doubled, and the loss dilemma has been solved
The used car market is breaking the ice and picking up.
According to the data released by the China Automobile Dealers Association, from January to November 2021, a total of 15.9669 million used cars were traded nationwide, an increase of 26.38% year-on-year. Although the repeated impact of the epidemic has caused a certain impact on the second-hand car market, on the whole, the overall trend of the market is good.
As a result, what we can see is a significant increase in Uxin's used car trading volume.
From the sales side, as of September 30, 2021, Uxin's used car trading volume was 3648 units, compared with 3011 units in the previous quarter, up 21.2% month-on-month; compared with the same period last year, the increase reached 37.5%.
In a way, this is the best clarification that Uxin Used Car should respond to the misunderstanding of the outside world that it is a "financial company". The rapid growth of transaction volume has brought about the opening of an upward channel for revenue.
On the revenue side, Uxin's total revenue in the second quarter was RMB346 million, up 24.5% from RMB278 million in the previous quarter and up 352.7% from the same period last year.
At the same time, the long-standing loss problem that has haunted Uxin's head has been further narrowed. Uxin's net profit for the quarter was 4.2%, compared to -22.4% in the same period last year. After five years of consecutive losses, the re-improvement of this quarter's financial situation has undoubtedly given the capital market and Uxin itself a shot in the arm.
On the whole, Uxin has basically got rid of the decline in continuous losses, and the re-improvement of this quarter's revenue situation also marks that Uxin is gradually on the right track.
Uxin "into the spring"?
Since last quarter, Uxin's business structure has begun to change.
Uxin Auto's retail sales revenue for the quarter was RMB136.3 million, compared to RMB36.1 million in the same period last year, and its wholesale sales revenue was RMB201.3 million, compared to zero in the same period last year.
The changes in the business situation can be seen that the structural reform of Uxin's used car business has achieved remarkable results. Being able to achieve such significant growth is obviously inextricably linked to Uxin's emphasis on the construction of supply chain channels.
It is reported that Uxin has opened the second used car IRC-Uxin used car Hefei hypermarket in Hefei, Anhui Province, covering a total area of nearly 100,000 square meters, providing used car services such as automobile warehousing, testing, renovation, sales and after-sales service. This also means that Uxin's "store-based" strategy has taken a step forward.
Similar to all e-commerce platforms, used car e-commerce platforms need to have strong control over the supply chain, and the key factor affecting used car sales is the quality of used cars.
To this end, Uxin chose the solution idea of "store-based", and through the self-built inventory system, centralized control of used car sources, testing and sales to get rid of the problems of poor user experience and low quality of used cars due to outsourcing.
Since last year, Uxin has introduced the NPS index (Customer Net Recommendation Index) into the company's assessment goals, and proposed to "create word-of-mouth sales". In this quarter, the Uxin NPS index reached 56 points, breaking a record high, and also reflected the consumer side's recognition of the Uxin store model.
At the same time, the used car market seems to be ushering in a new period of opportunity.
In March, the government work report pointed out that it will "steadily increase the consumption of commodities such as automobiles and home appliances" while removing unreasonable restrictions on second-hand car transactions. In June, the relevant state departments said that they would promote the cancellation of the second-hand car relocation policy to promote the development of the second-hand car industry; in July, relevant policies were introduced again to encourage the construction of a circular economy system, including second-hand car trading, and promote the development of the resource circular economy; in December, the registration of second-hand car off-site transactions was fully implemented nationwide, and off-site car purchases no longer required to go back and forth between the two places.
The favorable policies of many policies provide new growth ideas for the domestic second-hand car market. For Uxin, as a second-hand car e-commerce platform that has been holding high the "national purchase", it is obviously particularly important.
In addition, Uxin is also focusing on the layout of the new energy used car market.
In the past two years, the penetration rate of domestic new energy vehicles has been greatly improved, and the market share has continued to expand. According to the statistical analysis of the China Association of Automobile Manufacturers, from January to November 2021, the production and sales of new energy vehicles in China continued to reach a new high, with a cumulative output of more than 3 million vehicles and sales of nearly 3 million vehicles. The market penetration rate of new energy vehicles reached 17.8% in November, higher than that of the previous month, of which the market penetration rate of new energy passenger cars reached 19.5%.
With the gradual replacement of traditional fuel vehicles by new energy vehicles, the new energy used car trading market is in a period of rising opportunities. According to the "2020 Used Car Auction Big Data" report previously released by Tiantian Auction, the turnover volume of new energy used cars in 2020 is called doubling in 2019; in August 2021, the volume of new energy used cars increased by 119%.
According to public information, Uxin is accelerating its layout in the new energy second-hand car market, including the establishment of a new energy vehicle source collection, testing and renovation system. In the long run, the replacement of fuel vehicles by new energy vehicles will be an established fact, and Uxin, which runs the new energy used car track, will be expected to seize the market opportunity.
Similar to many industries, the Matthew effect in various industries is becoming more prominent after the epidemic. After finally getting rid of the burden of losses, Uxin, which is back on the starting line, will face the tiger's eye of competitors. I believe that in the next fierce battle, Uxin, which can turn the tables from the dilemma, will also go all the way.