Uxin partners with CATL subsidiary for used car battery swaps

BEIJING - Uxin Limited (NASDAQ:UXIN), a prominent used car retailer in China with a market capitalization of $793 million and showing revenue growth of 11.56% in the last twelve months, has announced a strategic partnership with Times Electric Service, a subsidiary of battery manufacturer Contemporary Amperex Technology Co., Limited (CATL). According to InvestingPro analysis, the company's stock has shown significant volatility, with an impressive 85% gain over the past six months despite broader challenges. The collaboration is set to enhance the adoption of battery swapping for used new energy vehicles (NEVs), aiming to improve the consumer transaction experience in this market segment.

The partnership will see Uxin apply its comprehensive services in the used car industry, including vehicle selection, inspection, and sales, to the emerging market of pre-owned NEVs. Times Electric Service will contribute its standardized battery swapping technology to the venture. Together, they plan to establish a trading system for used cars that will operate on a "vehicle-battery separation" model.

The companies will develop an online platform and a battery marketplace specifically for used cars that are compatible with battery swapping. They will also provide inspection and certification services for these vehicles. The initiative includes the construction of a battery swapping network, the exploration of new business models, and the promotion of standardized technology in the sector. While UXIN's innovative approach is promising, InvestingPro data reveals current challenges, including weak gross profit margins of 6.22% and short-term liquidity concerns. For detailed analysis and 8 additional key insights about UXIN, subscribers can access the comprehensive Pro Research Report.

Uxin's Founder, Chairman, and CEO, Mr. Kun Dai, expressed enthusiasm for the partnership, stating it aligns with their commitment to a professional and transparent customer experience. He emphasized the potential long-term value for customers and shareholders.

Uxin, known for its omni-channel strategy, leverages online platforms and offline centers to offer a comprehensive vehicle transaction experience. The company boasts a decade of operational experience and a customer-centric approach.

Times Electric Service, backed by CATL's resources, focuses on new energy operation services and aims to contribute to sustainable development.

The press release includes forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995, highlighting plans and expectations for the partnership. However, these statements come with inherent risks and uncertainties which could affect the actual outcomes.

This partnership represents a strategic move in the used car market, especially within the NEV sector, which is gaining momentum in China. The collaboration is based on a press release statement and aims to create a more diversified and convenient market for consumers interested in pre-owned new energy vehicles. For investors seeking deeper insights into UXIN's financial health and growth potential, InvestingPro offers comprehensive analysis, including exclusive ProTips and advanced metrics that help identify investment opportunities in the evolving Chinese automotive market.

In other recent news, Uxin Ltd., a prominent used car e-commerce platform in China, has reported significant growth in its third-quarter financial results for 2024. The company experienced a 47% sequential increase in retail transaction volume, reaching 6,005 units, and a year-over-year growth of 163%. Total (EPA:TTEF) revenues rose to RMB497.1 million, marking a 24% increase from the previous quarter and a 40% increase from the same period last year. The firm also achieved a record gross profit margin of 7% and a substantial reduction in adjusted EBITDA loss, which decreased by 73% quarter-over-quarter.

Despite current slowdowns, Uxin expressed confidence in the long-term potential of China's used car market. The company has secured over 15% market share in its operational cities and plans to open new superstores in Zhengzhou and Wuhan are in progress. In the Q3 earnings call, CEO D.K. and CFO John highlighted their confidence in the Chinese used car market's long-term prospects and discussed the strategic approach to planning inventory levels based on local car ownership and targeted market share.

Looking ahead, Uxin forecasts a retail transaction volume of 7,800 to 8,100 units for Q4 2024 and projects total revenues of RMB560-580 million for the next quarter. The company is also aiming for positive adjusted EBITDA in Q4 2024. These recent developments reflect Uxin's adaptability and ambition in a challenging market environment.

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