Total revenues for the fiscal year were 3.3 billion RMB ($483 million U.S.) — up 69.9 percent year-over-year. The company’s financing facilitation business, which links buyers with third-party loan providers, continued to lead with way, with “to-c” loan facilitation revenue reaching close to 1.8 billion RMB ($259 million U.S.) — up 87.8 percent year-over-year. “To-c” transaction facilitation revenue was 645 million RMB ($94.0 million U.S.) — up 180 percent.
The company’s “to-b” business transactions fell by 8.8 percent year-over-year, although revenue from these transactions was still up by 17 percent. Uxin is currently facing a class action lawsuit relating to the unexpected downturn in its “to-b” business, brought by investors in the company’s IPO on the Nasdaq in June.
Founder, chairman and CEO Kun Dai added that the company expects to lean further on its “to-c” business in the future as part of an ongoing “strategic shift.” He added that b-to-b will continue to “serve as an important arm of our group”. The company expects to launch franchising operations in 2019, he said.
Kun also noted that the company saw “exponential growth in cross-regional transactions, with transaction volume exceeding 10,000 used cars in December alone, and over 22,000 in the fourth quarter.”
More than 100 Uxin customers united to raise concerns over the company’s lending practices just after Christmas. Their complaints varied from the company failing to properly inform them that they were undertaking financial leasing contracts rather than auto loans (which means they did not formally own the cars), to falsifying or misrepresenting the amount of the down-payments in the final contract.
Uxin announced a partnership with Taobao in December. The companies will cooperate to establish an online used car shopping mall with features including VR car viewing.