From multi-point flowering to single-engine driving, Uxin just lived.
Editor’s note: This article comes from “ Future Car Daily ” (WeChat public account ID: auto-time), author: Jiaoman Ting.
Head picture source: WeChat public account “Youxin Used Car Official WeChat”
Author | Jiao Manting
Edit | Wu Yan
Under the cold of the epidemic, Youxin chose to sell its own B2B business.
In the evening of March 24th, the 58 city announced that it had signed an agreement with Youxin Group to acquire the assets related to the Youxinbao business for US $ 105 million, which is about RMB 744 million. 58 The same city told the Future Auto Daily (ID: auto-time) that the capital-level process is currently being completed and no clear business actions have been made.
58 Tongcheng CEO Yao Jinbo said that used car auctions are a key link in the circulation and value discovery of used cars. 58 Tongcheng ’s absorption of used car auctions can improve the efficiency of car sales, shorten the car sales cycle, and increase the inflow of car sources in the used car market . Next, the 58 city will continue to improve the service ability of Youxinpai in the B-end market, not only helping car dealers sell cars, but also helping them to collect cars through online auctions.
Youxin will focus on the main business of “National Purchase”. Dai Xin, founder, chairman and CEO of Uxin Group, said that after the divestiture, Uxin will focus more on B2C business and provide consumers with a better experience in online car purchase services. In addition, abundant cash flow will also Contribute to the long-term sustainable development of the company.
Acquired by US $ 105 million, Yao Jinbo picked up a big deal?
Yao Jinbo’s ambition to enter second-hand cars has a long history.
In March 2016, Guazi used car financing of US $ 204.5 million was completed, and 58 of its investors are among its investors. Two years later, 58City changed its low-key style in the automotive field and launched a brand advertisement for 58City’s “Affordable Used Car Platform”.
Yao Jinbo also declared “redefining the 58 Group” in 2018, marching into the real estate and automotive sectors, Especially to be a used car platform. “I am very convinced that the endgame after 3-5 years will be good. For example, 20% of (used) car transactions are facilitated by sunflower seeds, but the other 80% are still completed by small and medium car dealers. Someone must serve them. We hope Play this role yourself. “
For Yao Jinbo, the flow advantage is the 58-city moat. “The service fee can be charged by the flow, which makes the 58 city enter the second-hand car track without a heavy warehouse line.” Fair price of used car online trading platform in September 2018. Data show that 58 used car sources in the same city reached tens of millions. After deduplication, car sources accounted for 48.17%, ranking first, followed by online cars. Source accounted for 18.23%.
But in the auction business of key links in the circulation and value discovery of used cars, 58 cities have always been absent before. The acquisition of Youxinpao, which has been in development for 9 years and surpassed Che Yipao at the peak, is logical for Yao Jinbo who wants to make up for the closed loop.
Head picture source: Huibo Investment Research
Youxin, which currently has a market value of only US $ 411 million, has a valuation before the listing of US $ 3.2 billion and a market value of US $ 2.8 billion at the beginning of the listing. And $ 105 million seems to be a piece of cake for 58 cities. According to the financial report data, 58 cities in the same city realized revenue of 15.58 billion yuan in 2019, an increase of 18.6% year-on-year; net profit attributable to ordinary shareholders increased by 314.5% year-on-year to 8.28 billion yuan, equivalent to US $ 1.19 billion, and US $ 105 million was only one year of net income. About one tenth of the profit.
However, the difficulties encountered by Youxin in the development of 2B business, 58 also need to face the future in the same city.
Wang Liang, an analyst of the used car industry, told Future Auto Daily (ID: auto-time) that although the profit is high, the B2B business Youxinpai has a problem of weak control of used car dealers. These car dealers are more geographically distributed. Most of the people who make money and want to make their own orders.
Better arm survival, a relative optimal solution for the life and death of Youxin
The stripped Youxin Beat is not a Youxin cash cow. The financial report shows that in the first three quarters of 2019, the revenue of Youxin 2B business continued to decline, being 1.851 billion yuan, 68 million yuan, and 71.7 million yuan, respectively, accounting for 7% of the total revenue., 16%, and 16%.
In Dai Yan’s eyes, the national purchase business that Youxin is currently pushing is the “ideal gold mine”. Dai said that since the launch of the “National Purchase” business in 2018, the average price of bicycles has reached 120,000 yuan, far exceeding the average domestic used car transaction price of 63,000 yuan. In the first three quarters of 2019, Youxin’s 2C business revenue was 284 million yuan, 323 million yuan, and 151 million yuan, an increase of 54 times, 48 times, and 11 times year-on-year, accounting for 88%, 73%, and 71% of total revenue, respectively. %.
At the moment of life and death, Youxin, desperately throwing out the B-side business, only wants to get back blood as soon as possible. After all, the cold winter in the car market plus the impact of the epidemic, Youxin’s current situation can hardly be optimistic.
“Don’t think about it, you just have no money. Although the online car purchase was launched after the Spring Festival, our department only sold 70 or 80 orders a day, and we can get more than 300 orders before the New Year.” Buyers told Future Car Daily. Youxin confirmed to the Future Automobile Daily (ID: auto-time): “Many consumers have limited car purchase demand, and the transaction volume of the country’s purchase business has been affected. It is now gradually recovering.”
On February 28, Youxin announced in its internal letter that it would adjust the salary of its employees. The average employee’s salary fell by 20% -30%, and the executive’s salary was reduced by more than 40%. This regulation lasted for three months and was temporarily implemented until May 31 this year.
Because it has not formed a mature business model and continues to rely on burning money to occupy the market, Uxin Group has already fallen into a quagmire of losses. From 2016 to 2018, Uxin’s three-year net loss totaled over 5.676 billion yuan. In the third quarter of 2019, Uxin had a net loss of 267.2 million yuan, and a cumulative loss of 1.013 billion yuan in the previous nine months.
Behind the high losses is the heavy debt repayment pressure. The financial report shows that in the first and second quarters of 2019, the asset-liability ratio of Youxin Group was as high as 69.77% and 73.92%, respectively. As of September 30, 2019, Uxin’s long-term debt accumulated over 2 billion yuan, cash and cash equivalents were 627 million yuan, and cash flow was tight.
In 2019, Youxin has been in a state of self-rescue with a broken arm. In July 2019, Youxin sold its loan assistance business to Golden Pacer, a subsidiary of 58 Finance, and received $ 100 million in cash. In January 2020, Youxin sold its accident car auction business to Boche.com for 330 million yuan, and promised to stop engaging in accident car auction business within 5 years. This means that the cumulative return of blood for 3 times of broken arms for Youxin is about 1.8 billion yuan.
Youxin, which is backing the war on the C-end business, needs time to check when it will be profitable in the spring.
