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BEIJING, Nov. 25, 2024 /PRNewswire/ -- Uxin Limited ("Uxin" or the "Company") (Nasdaq: UXIN), China's leading used car retailer, today announced its unaudited financial results for the quarter ended September 30, 2024. Highlights for the Quarter Ended September 30, 2024 Transaction volume was 7,046 units for the three months ended September 30, 2024, an increase of 25.7% from 5,605 units in the last quarter and an increase of 81.4% from 3,884 units in the same period last year. Retail transaction volume was 6,005 units, an increase of 46.8% from 4,090 units in the last quarter and an increase of 162.6% from 2,287 units in the same period last year. Total revenues were RMB497.2 million (US$70.9 million) for the three months ended September 30, 2024, an increase of 23.9% from RMB401.2 million in the last quarter and an increase of 39.6% from RMB356.1 million in the same period last year. Gross margin was 7.0% for the three months ended September 30, 2024, compared with 6.4% in the last quarter and 6.2% in the same period last year. Loss from operations was RMB38.6 million (US$5.5 million) for the three months ended September 30, 2024, compared with RMB62.5 million in the last quarter and RMB66.4 million in the same period last year. Non-GAAP adjusted EBITDA[1] was a loss of RMB9.2million (US$1.3 million), compared with a loss of RMB33.9 million in the last quarter and a loss of RMB45.9 million in the same period last year. Mr. Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin, commented, "We are excited to report another record-breaking quarter. From July to September 2024, our retail transaction volume reached 6,005 units, marking a 47% sequential increase and a 163% year-over-year growth. Our superstore model has proven to be successful, showcasing strong competitiveness and significant growth potential. Customer satisfaction, measured by NPS, has risen to 66, maintaining the highest level in the industry for 11 consecutive quarters. Looking ahead, we will continue to enhance our inventory levels, expand value-added services, and optimize our service network. We anticipate retail transaction volume to be within the range of 7,800 units to 8,100 units from October to December, representing over a 150% year-over-year increase." Mr. Dai continued, "Additionally, our expansion into new regions is progressing smoothly. Following our partnership agreement with the Zhengzhou Airport Economic Zone, we are pleased to announce a new collaboration with the Wuhan Municipal Government. Both Zhengzhou and Wuhan are provincial capital cities with about 5 million vehicles each, offering excellent conditions for operating used car superstores. The new superstores in these two cities will continuously drive sales growth and enhance our performance in the coming years." Mr. Feng Lin, Chief Financial Officer of Uxin, said: "To better align with customary practices and to synchronize the financial reporting cycles of our parent company and Chinese subsidiary, we have adjusted our fiscal year. After this change, our fiscal year will coincide with the calendar year, running from January 1 to December 31, instead of the previous period from April 1 to March 31. This change aims to make our financial disclosures more accessible and understandable for our investors. Building on this alignment, we delivered robust financial results in the quarter. Total revenues were RMB497 million, with retail vehicle sales revenue reaching RMB444 million, a year-over-year increase of 79%. Our gross margin further improved to 7% compared to the previous quarter. Adjusted EBITDA loss narrowed to RMB 9.2 million, representing an 80% reduction year-over-year. Looking ahead, we are on track to achieve our first positive quarterly EBITDA in the upcoming quarter, a significant milestone in our financial performance. With these strong results, the company is now firmly positioned for sustainable, long-term growth." [1]This is a non-GAAP measure. We believe non-GAAP measures help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See our Financial Supplement, filed as Exhibit 99.1 to our Current Report on Form 6-K on November 25, 2024 with the SEC, "Unaudited Reconciliations of GAAP And Non-GAAP Results" for a reconciliation and additional information on non-GAAP measures. Financial Results for the Quarter Ended September 30, 2024 Total revenues were RMB497.2 million (US$70.9 million) for the three months ended September 30, 2024, an increase of 23.9% from RMB401.2 million in the last quarter and an increase of 39.6% from RMB356.1 million in the same period last year. The increases were mainly due to the increase of retail vehicle sales revenue. Retail vehicle sales revenue was RMB444.4 million (US$63.3 million) for the three months ended September 30, 2024, representing an increase of 36.8% from RMB325.0 million in the last quarter and an increase of 78.5% from RMB248.9 million in the same period last year. For the three months ended September 30, 2024, retail transaction volume was 6,005 units, an increase of 46.8% from 4,090 units in the last quarter and an increase of 162.6% from 2,287 units in the same period last year. The increases in retail vehicle sales revenue were mainly due to the increase of retail transaction volume. By offering superior products and services, the Company's superstores have built strong customer trust and established Uxin as the leading brand in regional markets, leading to a high in-store customer conversion rate. Additionally, as the overall used car market began to recover starting from mid-year, the Company proactively expanded the inventory size while maintained an inventory turnover rate much faster than the industry average. Wholesale vehicle sales revenue was RMB37.8 million (US$5.4 million) for the three months ended September 30, 2024, a decrease of 40.8% from RMB63.9 million in the last quarter and a decrease of 61.9% from RMB99.3 million in the same period last year. For the three months ended September 30, 2024, wholesale transaction volume was 1,041 units, representing a decrease of 31.3% from 1,515 units in the last quarter and a decrease of 34.8% from 1,597 units in the same period last year. Wholesale vehicle sales refer to vehicles purchased by the Company from individuals that do not meet the Company's retail standards and are subsequently sold through online and offline channels. The decreases were mainly due to improved inventory capacity and reconditioning capabilities, and an increased number of acquired vehicles were reconditioned to meet the Company's retail standards, rather than being sold through wholesale channels. Other revenue was RMB15.0 million (US$2.1 million) for the three months ended September 30, 2024, compared with RMB12.3 million in the last quarter and RMB7.9 million in the same period last year. Cost of revenues was RMB462.4 million (US$65.9 million) for the three months ended September 30, 2024, compared with RMB375.6 million in the last quarter and RMB334.0 million in the same period last year. Gross margin was 7.0% for the three months ended September 30, 2024, compared with 6.4% in the last quarter and 6.2% in the same period last year. Firstly, the Company is increasing the proportion of vehicles acquired directly from individual car owners intending to sell their existing cars, which on average are more profitable compared to other vehicle supply channels. Secondly, the Company is focusing on enhancing the penetration of high-margin value-added services, which will further improve its gross profit margin. Total operating expenses were RMB84.3 million (US$12.0 million) for the three months ended September 30, 2024. Sales and marketing expenses were RMB56.1 million (US$8.0 million) for the three months ended September 30, 2024, a decrease of 5.5% from RMB59.4 million in the last quarter and an increase of 15.7% from RMB48.4 million in the same period last year. Compared with the same period last year, in addition to the increased salaries for the sales teams, the year-over-year increase was also attributed to the increase in right-of-use assets depreciation expenses as a result of relocation to the Company's Hefei Superstore in September 2023. General and administrative expenses were RMB26.1 million (US$3.7 million) for the three months ended September 30, 2024, representing a decrease of 7.3% from RMB28.1 million in the last quarter and a decrease of 25.7% from RMB35.1 million in the same period last year. Due to the execution of multiple rounds of cost-saving and efficiency-enhancing initiatives, salaries and benefits expenses for personnel performing general and administrative functions decreased accordingly. Research and development expenses were RMB2.4 million (US$0.3 million) for the three months ended September 30, 2024, representing a decrease of 30.1% from RMB3.4 million in the last quarter and a decrease of 74.4% from RMB9.2 million in the same period last year. The decreases mainly resulted from less IT service acquired by the Company's research and development functions and decrease in salaries and benefits expenses of employees engaged in these functions. Other operating income, net was RMB10.8 million (US$1.5 million) for the three months ended September 30, 2024, compared with RMB2.8 million for the last quarter and RMB3.2 million in the same period last year. The increases were mainly due to proceeds from government award. Loss from operations was RMB38.6 million (US$5.5 million) in the three months ended September 30, 2024, compared with RMB62.5 million for the last quarter and RMB66.4 million in the same period last year. Interest expenses were RMB24.1 million (US$3.4 million) for the three months ended September 30, 2024, representing an increase of 5.4% from RMB22.9 million in the last quarter and an increase of 212.5% from RMB7.7 million in the same period last year. The year-over-year increase was mainly due to the increase of interest expenses on finance lease liabilities relating to the lease of Changfeng Superstore in September, 2023. Net loss from operations was RMB59.2 million (US$8.4 million) for the three months ended September 30, 2024, compared with a net loss of RMB49.8 million for the last quarter and net loss of RMB57.1 million for the same period last year. Non-GAAP adjusted EBITDA was a loss of RMB9.2 million (US$1.3 million) for the three months ended September 30, 2024, compared with a loss of RMB33.9 million in the last quarter and a loss of RMB45.9 million in the same period last year. Liquidity As of September 30, 2024, the Company had cash and cash equivalents of RMB29.1 million, compared to RMB23.3 million as of March 31, 2024. The Company has incurred accumulated and recurring losses from operations, and cash outflows from operating activities. In addition, the Company's current liabilities exceeded its current assets by approximately RMB403.6 million as of September 30, 2024. The Company's ability to continue as a going concern is dependent on management's ability to increase sales, achieve higher gross profit margin and control operating costs and expenses to reduce the cash that will be used in operating cash flows, and to enter into financing arrangements, including but not limited to renewal of the existing borrowings and obtaining new debt and equity financings. There is uncertainty regarding the implementation of these business and financing plans, which raises substantial doubt about the Company's ability to continue as a going concern. The accompanying unaudited financial information does not include any adjustment that is reflective of these uncertainties. Recent Development Equity Investment Agreement with Wuhan Junshan Urban Asset Operation Co., Ltd. On October 16, 2024, the Company, through its wholly-owned subsidiary Uxin (Anhui) Industrial Investment Co., Ltd. ("Uxin Anhui"), entered into an equity investment agreement with Wuhan Junshan Urban Asset Operation Co., Ltd. ("Wuhan Junshan"), a company indirectly controlled by Wuhan City Economic & Technological Development Zone, to establish a subsidiary of the Company. Uxin Anhui will contribute RMB66.7 million and Wuhan Junshan will contribute RMB33.3 million, representing approximately 66.7% and 33.3% of the subsidiary's total registered capital, respectively. Share Subscription Agreement with Lightwind Global Limited On November 4, 2024, Uxin announced that, in connection with the memorandum of understanding previously announced on September 13, 2024, the Company has entered into a share subscription agreement ("Share Subscription Agreement") with Lightwind Global Limited (the "Investor"), an indirect wholly-owned subsidiary of Dida Inc. (HKEX: 2559). Pursuant to the Share Subscription Agreement, the Company agreed to issue and sell, and the Investor agreed to subscribe for 1,543,845,204 Class A ordinary shares of the Company for an aggregate subscription amount of US$7.5 million, based on a subscription price of US$0.004858 per share. The completion of transaction is subject to the closing conditions set forth in the Share Subscription Agreement. Change in Fiscal Year On November 22, 2024, the Company's Board of Directors has approved a change in the Company's fiscal year end from March 31 to December 31. The primary purpose of this change is to streamline the Company's financial reporting with global standards and align with industry practices, enhancing comparability with peers. This adjustment also allows the Company to better synchronize operational planning and reporting cycles with market trends and customer demands, ensuring more effective communication with stakeholders and investors. The Company will file a transition report on Form 20-F to cover the transition period from April 1, 2024 to December 31, 2024 in due course as required under applicable regulations. Business Outlook For the three months ending December 31, 2024, the Company expects its retail transaction volume to be within the range of 7,800 units to 8,100 units. The Company estimates that its total revenues including retail vehicle sales revenue, wholesale vehicle sales revenue and other revenue to be within the range of RMB560 million to RMB580 million. The Company expects its Non-GAAP adjusted EBITDA to be positive. These forecasts reflect the Company's current and preliminary views on the market and operational conditions, which are subject to changes. Conference Call Uxin's management team will host a conference call on Monday, November 25, 2024, at 8:00 A.M. U.S. Eastern Time (9:00 P.M. Beijing/Hong Kong time on the same day) to discuss the financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this conference including an event passcode, a unique access PIN, dial-in numbers, and an e-mail with detailed instructions to join the conference call. Conference Call Preregistration: https://dpregister.com/sreg/10194615/fe03e343b8 A telephone replay of the call will be available after the conclusion of the conference call until December 2, 2024. The dial-in details for the replay are as follows: U.S.: +1 877 344 7529 International: +1 412 317 0088 Replay PIN: 4912684 A live webcast and archive of the conference call will be available on the Investor Relations section of Uxin's website at http://ir.xin.com. About Uxin Uxin is China's leading used car retailer, pioneering industry transformation with advanced production, new retail experiences, and digital empowerment. We offer high-quality and value-for-money vehicles as well as superior after-sales services through a reliable, one-stop, and hassle-free transaction experience. Under our omni-channel strategy, we are able to leverage our pioneering online platform to serve customers nationwide and establish market leadership in selected regions through offline inspection and reconditioning centers. Leveraging our extensive industry data and continuous technology innovation throughout more than ten years of operation, we have established strong used car management and operation capabilities. We are committed to upholding our customer-centric approach and driving the healthy development of the used car industry. Use of Non-GAAP Financial Measures In evaluating the business, the Company considers and uses certain non-GAAP measures, including Adjusted EBITDA and adjusted net loss from operations per share – basic and diluted, as supplemental measures to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines Adjusted EBITDA as EBITDA excluding share-based compensation, fair value impact of the issuance of senior convertible preferred shares, foreign exchange (losses)/gains, other income/(expenses), equity in income of affiliates and dividend from long-term investment, net gain from extinguishment of debt. The Company defines adjusted net loss attributable to ordinary shareholders per share – basic and diluted as net loss attributable to ordinary shareholders per share excluding impact of share-based compensation, fair value impact of the issuance of senior convertible preferred shares, deemed dividend to preferred shareholders due to triggering of a down round feature and accretion on redeemable non-controlling interests. The Company presents the non-GAAP financial measures because they are used by the management to evaluate the operating performance and formulate business plans. The Company also believes that the use of the non-GAAP measures facilitates investors' assessment of its operating performance as this measure excludes certain finance or non-cash items that the Company does not believe directly reflect its core operations. The Company believes that excluding these items enables us to evaluate our performance period-over-period more effectively and relative to our competitors. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using Adjusted EBITDA is that it does not reflect all items of income and expenses that affect the Company's operations. Share-based compensation, foreign exchange (losses)/gains and other income/(expenses) have been and may continue to be incurred in the business. Further, the non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure. Reconciliations of Uxin's non-GAAP financial measures to the most comparable U.S. GAAP measure are included at the end of this press release. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader, except for those transaction amounts that were actually settled in U.S. dollars. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.0176 to US$1.00, representing the index rate as of September 30, 2024 set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Uxin's strategic and operational plans, contain forward-looking statements. Uxin may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Uxin's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: impact of the COVID-19 pandemic, Uxin's goal and strategies; its expansion plans; its future business development, financial condition and results of operations; Uxin's expectations regarding demand for, and market acceptance of, its services; its ability to provide differentiated and superior customer experience, maintain and enhance customer trust in its platform, and assess and mitigate various risks, including credit; its expectations regarding maintaining and expanding its relationships with business partners, including financing partners; trends and competition in China's used car e-commerce industry; the laws and regulations relating to Uxin's industry; the general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Uxin's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Uxin does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media enquiries, please contact: Uxin Limited Investor RelationsUxin LimitedEmail: ir@xin.com The Blueshirt GroupMr. Jack WangPhone: +86 166-0115-0429Email: Jack@blueshirtgroup.co Uxin Limited Unaudited Consolidated Statements of Comprehensive Loss (In thousands except for number of shares and per share data) For the three months ended September 30, For the six months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ Revenues Retail vehicle sales 248,910 444,399 63,326 435,759 769,366 109,634 Wholesale vehicle sales 99,335 37,826 5,390 193,982 101,723 14,495 Others 7,822 14,995 2,137 15,348 27,315 3,892 Total revenues 356,067 497,220 70,853 645,089 898,404 128,021 Cost of revenues (334,033) (462,360) (65,886) (605,414) (837,959) (119,408) Gross profit 22,034 34,860 4,967 39,675 60,445 8,613 Operating expenses Sales and marketing (48,443) (56,060) (7,988) (94,991) (115,413) (16,446) General and administrative (35,116) (26,074) (3,716) (68,219) (54,194) (7,723) Research and development (9,219) (2,361) (336) (18,080) (5,741) (818) Reversal of credit losses, net 1,141 162 23 1,837 162 23 Total operating expenses (91,637) (84,333) (12,017) (179,453) (175,186) (24,964) Other operating income, net 3,214 10,824 1,542 10,199 13,607 1,939 Loss from operations (66,389) (38,649) (5,508) (129,579) (101,134) (14,412) Interest income 45 10 1 146 26 4 Interest expenses (7,710) (24,095) (3,434) (12,829) (46,953) (6,691) Other income 11,435 1,498 213 13,802 2,131 304 Other expenses (378) (1,331) (190) (650) (2,131) (304) Net gain from extinguishment of debt - - - - 35,222 5,019 Foreign exchange gains 964 969 138 539 1,448 206 Fair value impact of the issuance of senior convertiblepreferred shares 5,017 - - (31,852) - - Loss before income tax expense (57,016) (61,598) (8,780) (160,423) (111,391) (15,874) Income tax expense (108) - - (273) (38) (5) Equity in income of affiliates, net of tax - 2,429 346 - 2,429 346 Dividend from long-term investment - - - 11,970 - - Net loss, net of tax (57,124) (59,169) (8,434) (148,726) (109,000) (15,533) Add: net loss/(profit) attribute to redeemable non-controlling interests and non-controlling interestsshareholders 19 (1,668) (238) 21 (3,309) (472) Net loss attributable to UXIN LIMITED (57,105) (60,837) (8,672) (148,705) (112,309) (16,005) Deemed dividend to preferred shareholders due totriggering of a down round feature (278,800) - - (278,800) - - Net loss attributable to ordinary shareholders (335,905) (60,837) (8,672) (427,505) (112,309) (16,005) Net loss (57,124) (59,169) (8,434) (148,726) (109,000) (15,533) Foreign currency translation, net of tax nil 292 (6,763) (964) 3,606 (7,979) (1,137) Total comprehensive loss (56,832) (65,932) (9,398) (145,120) (116,979) (16,670) Add: net loss/(profit) attribute to redeemable non-controlling interests and non-controlling interestsshareholders 19 (1,668) (238) 21 (3,309) (472) Total comprehensive loss attributable to UXINLIMITED (56,813) (67,600) (9,636) (145,099) (120,288) (17,142) Net loss attributable to ordinary shareholders (335,905) (60,837) (8,672) (427,505) (112,309) (16,005) Weighted average shares outstanding – basic 1,428,081,692 56,418,967,059 56,418,967,059 1,425,861,229 56,415,815,208 56,415,815,208 Weighted average shares outstanding – diluted 1,428,081,692 56,418,967,059 56,418,967,059 1,425,861,229 56,415,815,208 56,415,815,208 Net loss per share for ordinary shareholders, basic (0.24) (0.00) (0.00) (0.30) (0.00) (0.00) Net loss per share for ordinary shareholders, diluted (0.24) (0.00) (0.00) (0.30) (0.00) (0.00) Uxin Limited Unaudited Consolidated Balance Sheets (In thousands except for number of shares and per share data) As of March 31, As of September 30, 2024 2024 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 23,339 29,094 4,146 Restricted cash 594 674 96 Accounts receivable, net 2,089 2,976 424 Loans recognized as a result of payments underguarantees, net of provision for credit losses ofRMB7,995 and RMB7,833 as of March 31, 2024 andSeptember 30, 2024, respectively - - - Other receivables, net of provision for credit losses ofRMB22,739 and RMB22,739 as of March 31, 2024 andSeptember 30, 2024, respectively 18,080 17,601 2,508 Inventory, net 110,494 182,818 26,051 Prepaid expenses and other current assets 71,787 88,258 12,577 Total current assets 226,383 321,421 45,802 Non-current assets Property, equipment and software, net 74,243 69,017 9,835 Long-term investments (i) 279,300 - - Other non-current assets 268 - - Finance lease right-of-use assets, net 1,339,537 1,353,638 192,892 Operating lease right-of-use assets, net 168,418 160,243 22,834 Total non-current assets 1,861,766 1,582,898 225,561 Total assets 2,088,149 1,904,319 271,363 LIABILITIES, MEZZANINE EQUITY ANDSHAREHOLDERS' DEFICIT Current liabilities Accounts payable 80,745 82,751 11,792 Other payables and other current liabilities 370,802 316,484 45,100 Current portion of operating lease liabilities 12,310 11,402 1,625 Current portion of finance lease liabilities 51,160 182,964 26,072 Short-term borrowing from third parties 71,181 129,423 18,443 Short-term borrowing from related party 7,000 2,000 285 Current portion of long-term debt (i) 291,950 - - Total current liabilities 885,148 725,024 103,317 Non-current liabilities Long-term borrowings from related party (iii) - 52,555 7,489 Consideration payable to WeBank (ii) - 34,608 4,932 Finance lease liabilities 1,191,246 1,123,092 160,039 Operating lease liabilities 154,846 149,846 21,353 Total non-current liabilities 1,346,092 1,360,101 193,813 Total liabilities 2,231,240 2,085,125 297,130 Mezzanine equity Redeemable non-controlling interests 149,991 153,308 21,846 Total Mezzanine equity 149,991 153,308 21,846 Shareholders' deficit Ordinary shares 39,806 39,816 5,674 Additional paid-in capital 18,928,837 18,960,679 2,701,875 Subscription receivable from shareholders (107,879) (60,467) (8,616) Accumulated other comprehensive income 225,090 217,111 30,938 Accumulated deficit (19,378,705) (19,491,014) (2,777,450) Total Uxin's shareholders' deficit (292,851) (333,875) (47,579) Non-controlling interests (231) (239) (34) Total shareholders' deficit (293,082) (334,114) (47,613) Total liabilities, mezzanine equity and shareholders'deficit 2,088,149 1,904,319 271,363 (i) Long-term borrowing outstanding as of March 31, 2024 was pledged with the equity interest the Group holds in aninvestment. The long-term borrowing will be due in December 2024. In December 2023, the Group entered into a supplementary agreement with theborrower, mutually agreed that if the Group successfully disposes the investment pledged and pays the borrower cash proceeds of RMB240.0million, the remaining principal and interests will be waived. In conjunction with the sale of investment transaction, the Group also entered into afinancial advisory agreement and a supplement agreement in which the Group will incur the advisory expense of RMB36.9 million upon thesuccessful completion of the sale of investment. However, if the sale of investment transaction fails, the Group is still obligated to repay all theprincipal and interests under the original borrowing agreement. Given the uncertainty of the sale of investment, the Group did not account for theextinguishment of the borrowing as a result of a troubled debt restructuring until the completion of the sale of investment and settlement of theborrowing in April 2024. As of the settlement date, the investment was disposed at a consideration of RMB271.3 million, whereas the Group stillentitled a cash dividend of RMB8.0 million from the investee that was subsequently received in July 2024. Accordingly, the Group derecognized theinvestment with a carrying value of RMB279.3 million with no gains/losses from the disposal recognized. Concurrently, the Group also repaid theborrower RMB240.0 million and incurred the advisory expense of RMB36.9 million. Accordingly, the Group recognized the net gain fromextinguishment of debt amounting to RMB35.2 million for the quarter ended June 30, 2024, which is the difference between the total amount ofborrowing of RMB312.1 million derecognized (including principal of RMB292.0 million and interests of RMB20.1 million)and the aggregate amount of RMB240.0 million repaid and the advisory expense of RMB36.9 million.(ii) On June 21, 2024, the Company entered into another supplemental agreement with WeBank which revised and extendedthe repayment schedule of RMB30.0 million each due on June 30, 2024 and December 31, 2024 respectively to the monthlyrepayments of RMB2.5 million for each month from December 2024 to November 2026. As of September 30, 2024, theGroup classified the payables to Webank amounting to RMB34.6 million repayable after twelve months from September 30, 2024 as "Considerationpayable to WeBank" in non-current liabilities.(iii) On September 12, 2024, the Company's Anhui subsidiary ("Uxin Anhui") entered into a loan agreement with Pintu (Beijing) informationTechnology Co., Ltd. ("Pintu Beijing"), pursuant to which Pintu Beijing agreed to extend loan to Uxin Anhui in a principal amount of the RMBequivalent of US$7.5 million for a term of 18 months from the drawdown date unless other repayment schedule is negotiated and mutually agreed byUxin Anhui and Pintu Beijing. The interest rate is 5.35% per annum within 12 months after the drawdown date, and 8% per annum after 12 monthsuntil the loan is repaid in full. The loan is guaranteed by Uxin's Shaanxi subsidiary pursuant to a guarantee agreement entered on the same date. OnSeptember 13, 2024, Uxin Anhui made the drawdown of this loan, and the total RMB amount received was RMB53.4 million, which was classified as"Long-term borrowings from related party" in non-current liabilities. * Share-based compensation charges included are as follows: For the three months ended September 30, For the six months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ Sales and marketing 661 — — 993 136 19 General and administrative 12,243 13,992 1,994 21,668 25,776 3,673 Research and development 885 — — 1,279 128 18 Uxin Limited Unaudited Reconciliations of GAAP And Non-GAAP Results (In thousands except for number of shares and per share data) For the three months ended September 30, For the six months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ Net loss, net of tax (57,124) (59,169) (8,434) (148,726) (109,000) (15,533) Add: Income tax expense 108 - - 273 38 5 Interest income (45) (10) (1) (146) (26) (4) Interest expenses 7,710 24,095 3,434 12,829 46,953 6,691 Depreciation 6,684 15,479 2,206 13,097 32,056 4,568 EBITDA (42,667) (19,605) (2,795) (122,673) (29,979) (4,273) Add: Share-based compensation expenses 13,789 13,992 1,994 23,940 26,040 3,710 - Sales and marketing 661 - - 993 136 19 - General and administrative 12,243 13,992 1,994 21,668 25,776 3,673 - Research and development 885 - - 1,279 128 18 Other income (11,435) (1,498) (213) (13,802) (2,131) (304) Other expenses 378 1,331 190 650 2,131 304 Foreign exchange gains (964) (969) (138) (539) (1,448) (206) Equity in income of affiliates, net of tax - (2,429) (346) - (2,429) (346) Dividend from long-term investment - - - (11,970) - - Net gain from extinguishment of debt - - - - (35,222) (5,019) Fair value impact of the issuance of seniorconvertible preferred shares (5,017) - - 31,852 - - Non-GAAP adjusted EBITDA (45,916) (9,178) (1,308) (92,542) (43,038) (6,134) For the three months ended September 30, For the six months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ Net loss attributable to ordinary shareholders (335,905) (60,837) (8,672) (427,505) (112,309) (16,005) Add: Share-based compensation expenses 13,789 13,992 1,994 23,940 26,040 3,710 - Sales and marketing 661 - - 993 136 19 - General and administrative 12,243 13,992 1,994 21,668 25,776 3,673 - Research and development 885 - - 1,279 128 18 Fair value impact of the issuance of seniorconvertible preferred shares (5,017) - - 31,852 - - Add: accretion on redeemable non-controllinginterests - 1,668 238 - 3,318 473 Deemed dividend to preferred shareholders dueto triggering of a down round feature 278,800 - - 278,800 - - Non-GAAP adjusted net loss attributable toordinary shareholders (48,333) (45,177) (6,440) (92,913) (82,951) (11,822) Net loss per share for ordinary shareholders - basic (0.24) (0.00) (0.00) (0.30) (0.00) (0.00) Net loss per share for ordinary shareholders – diluted (0.24) (0.00) (0.00) (0.30) (0.00) (0.00) Non-GAAP adjusted net loss to ordinary shareholdersper share – basic and diluted (0.03) (0.00) (0.00) (0.07) (0.00) (0.00) Weighted average shares outstanding – basic 1,428,081,692 56,418,967,059 56,418,967,059 1,425,861,229 56,415,815,208 56,415,815,208 Weighted average shares outstanding – diluted 1,428,081,692 56,418,967,059 56,418,967,059 1,425,861,229 56,415,815,208 56,415,815,208 Note: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00 = RMB7.0176 as of September 30, 2024 set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System.
CRM Bot and Voice Control deliver GenAI-powered assistance in Vault CRM SINGAPORE, Nov. 25, 2024 /PRNewswire/ -- Veeva Systems (NYSE: VEEV) today announced Vault CRM Bot and Vault CRM Voice Control, two new GenAI capabilities in Vault CRM. Unveiled at Veeva Commercial Summit Europe, CRM Bot and Voice Control join a host of new innovations coming to Vault CRM next year. With these new capabilities, companies can deploy AI that will have immediate value by boosting field productivity. CRM Bot embeds the large language model (LLM) of your choice into Vault CRM to enable a wide range of context-driven tasks including pre-call planning, suggested actions, recommended content, and context-specific learning. Planned for availability in late 2025, CRM Bot is included in Vault CRM for no additional charge and requires the Vault Direct Data API. AI-powered Voice Control brings the human voice as a user interface into Vault CRM by leveraging Apple Intelligence for hands-free operation of CRM via spoken commands. Planned for availability in late 2025, Voice Control is included in Vault CRM for no additional charge and requires Apple Intelligence and compatible devices. Delivering AI within its products – like CRM Bot and Voice Control – is part of Veeva's overall strategy to help enable AI for the life sciences industry. Veeva also provides the Vault Direct Data API for high-speed access to data needed for AI and the Veeva AI Partner Program that enables customers and partners to more easily build AI applications that integrate seamlessly with Vault applications. "Vault CRM Bot and Vault CRM Voice Control bring the latest advances in generative AI into Vault CRM for more effective, productive reps," said Arno Sosna, general manager of CRM products at Veeva. "Our product focus is to leverage AI for clear use cases with high impact and ensure smoother more effective deployments of advanced technologies." Veeva customers and life sciences industry professionals can learn about these innovations and more in the Vault CRM Product Roadmap session replay in Veeva Connect starting November 25. About Veeva SystemsVeeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world's largest biopharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit veeva.com. Veeva Forward-looking StatementsThis release contains forward-looking statements regarding Veeva's products and services and the expected results or benefits from use of our products and services. These statements are based on our current expectations. Actual results could differ materially from those provided in this release and we have no obligation to update such statements. There are numerous risks that have the potential to negatively impact our results, including the risks and uncertainties disclosed in our filing on Form 10-Q for the period ended July 31, 2024, which you can find here (a summary of risks which may impact our business can be found on pages 36 and 37), and in our subsequent SEC filings, which you can access at sec.gov.
SHANGHAI, Nov. 22, 2024 /PRNewswire/ -- ZKH Group Limited ("ZKH" or the "Company") (NYSE: ZKH), a leading maintenance, repair and operations ("MRO") procurement service platform in China, today announced its unaudited financial results for the third quarter ended September 30, 2024. Third Quarter 2024 Operational and Financial Highlights in thousand RMB, except for number of customers, percentage and basis points ("bps") Third Quarter 2023 2024 Change GMV[1] 2,894,140 2,685,996 -7.2 % GMV by Platform ZKH Platform 2,619,417 2,422,649 -7.5 % GBB Platform 274,723 263,347 -4.1 % GMV by Business Model Product Sales (1P) 2,180,729 2,228,234 2.2 % Marketplace (3P)[2] 713,411 457,762 -35.8 % Number of Customers[3] 40,963 47,876 16.9 % ZKH Platform 30,096 36,132 20.1 % GBB Platform 10,867 11,744 8.1 % Net Revenues 2,265,001 2,280,690 0.7 % Gross Profit 369,414 388,406 5.1 % % of Net Revenues 16.3 % 17.0 % 72.1bps Operating Loss (121,434) (105,355) -13.2 % % of Net Revenues -5.4 % -4.6 % 74.2bps Non-GAAP EBITDA[4] (76,092) (62,812) -17.5 % % of Net Revenues -3.4 % -2.8 % 60.5bps Net Loss (97,686) (81,751) -16.3 % % of Net Revenues -4.3 % -3.6 % 72.8bps Non-GAAP Adjusted Net Loss[5] (98,674) (66,178) -32.9 % % of Net Revenues -4.4 % -2.9 % 145.5bps Mr. Eric Long Chen, Chairman and Chief Executive Officer of ZKH, stated, "We achieved solid operational and financial performance amid evolving market conditions in the MRO industry during the third quarter. Our ongoing optimization efforts enhanced our overall business quality, resulting in narrowed loss margins in the quarter. Additionally, our initiatives to strengthen our product capabilities enabled us to offer products with greater value-for-money, evidenced by the expanding proportion of GMV contributed by private-label products. Going forward, we will remain dedicated to doing what is right for our business's long-term success and creating value for all our stakeholders." Mr. Max Chun Chiu Lai, Chief Financial Officer of ZKH, added, "In the third quarter, we continued to drive our strategic focus across the business, delivering a solid set of results bolstered by a year-over-year increase in customer numbers and robust demand from leading, well-managed manufacturing enterprises. In addition, we continued to advance along the path to profitability year over year, evidenced by a 72.1 basis point increase in gross margin and a 145.5 basis points improvement in adjusted net loss margin. Notably, our cash position further strengthened as we generated net cash of RMB160.5 million from operating activities in the third quarter of 2024, in contrast to net cash used in operating activities in the prior year period. Looking ahead, our demonstrated execution and narrowed loss margins position us to relentlessly pursue business growth, propelling us toward achieving our long-term vision." [1] GMV is the total transaction value of orders placed on the Company's platform and shipped to customers, excluding taxes, net of the returned amount. [2] The proportion of GMV generated by the marketplace model was 24.7% and 17.0% for the third quarter of 2023 and 2024, respectively. [3] Customers are customers that transacted with the Company during the reporting period, mainly comprised of enterprise customers in various industries. [4] Non-GAAP EBITDA is defined as net loss before interest expenses, income tax expenses/(benefits) and depreciation and amortization expenses. [5] Non-GAAP adjusted net loss is defined as net loss excluding share-based compensation expenses. Third Quarter 2024 Financial Results Net Revenues. Net revenues were RMB2,280.7 million (US$325.0 million), representing a slight increase of 0.7% from RMB2,265.0 million in the same period of 2023, mainly due to an increase in the number of customers, partially offset by the effect of business optimizations. in thousand RMB, except for percentage Third Quarter 2023 2024 Change Net Revenues 2,265,001 2,280,690 0.7 % Net Product Revenues 2,163,403 2,207,277 2.0 % From ZKH Platform 1,891,631 1,943,742 2.8 % From GBB Platform 271,772 263,535 -3.0 % Net Service Revenues 79,887 57,666 -27.8 % Other Revenues 21,711 15,747 -27.5 % Net Product Revenues. Net product revenues were RMB2,207.3 million (US$314.5 million), representing a slight increase of 2.0% from RMB2,163.4 million in the same period of 2023, primarily due to an increase in the number of customers, partially offset by the effect of business optimizations. Net Service Revenues. Net service revenues were RMB57.7 million (US$8.2 million), a decrease of 27.8% from RMB79.9 million in the same period of 2023, primarily due to a lower proportion of GMV generated by the marketplace model on the ZKH platform. Other Revenues. Other revenues were RMB15.7 million (US$2.2 million), a decrease of 27.5% from RMB21.7 million in the same period of 2023, mainly due to lower revenues from operating lease services for certain types of machinery and equipment. Cost of Revenues. Cost of revenues was RMB1,892.3 million (US$269.7 million), representing a decrease of 0.2% from RMB1,895.6 million in the same period of 2023. The decrease was lower than the growth in net product revenues, mainly due to the effectiveness of the Company's measures to reduce overall product procurement costs. Gross Profit and Gross Margin. Gross profit was RMB388.4 million (US$55.3 million), an increase of 5.1% from RMB369.4 million in the same period of 2023. Gross margin was 17.0%, compared with 16.3% in the same period of 2023. The increase in gross margin was driven by a higher gross margin of the product sales model (1P) and the increased take rate of the marketplace model (3P)[6] on the ZKH platform, partially offset by a lower gross margin on the GBB platform. in thousand RMB, except for percentage and basis points ("bps") Third Quarter 2023 2024 Change Gross Profit 369,414 388,406 5.1 % % of Net Revenues 16.3 % 17.0 % 72.1bps Under Product Sales (1P) ZKH Platform 262,830 311,947 18.7 % % of Net Product Revenues from ZKH Platform 13.9 % 16.0 % 215.4bps GBB Platform 15,656 14,522 -7.2 % % of Net Product Revenues from GBB Platform 5.8 % 5.5 % -25.0bps Under Marketplace (3P) 79,887 57,666 -27.8 % % of Net Service Revenues 100.0 % 100.0 % - Others 11,041 4,271 -61.3 % % of Other Revenues 50.9 % 27.1 % -2,373.2bps [6] Take rate of the marketplace model was 12.6% and 11.2% for the third quarter of 2024 and 2023, respectively. Take rate of the marketplace model represents gross profit from the marketplace model divided by GMV from the marketplace model. Operating Expenses. Operating expenses were RMB493.8 million (US$70.4 million), an increase of 0.6% from RMB490.8 million in the same period of 2023. Operating expenses as a percentage of net revenues were 21.6%, compared with 21.7% in the same period of 2023. Fulfillment Expenses. Fulfillment expenses were RMB100.2 million (US$14.3 million), a decrease of 11.8% from RMB113.6 million in the same period of 2023. The decrease was primarily attributable to lower employee benefit costs, warehouse rental costs, and distribution expenses. Fulfillment expenses as a percentage of net revenues were 4.4%, compared with 5.0% in the same period of 2023. Sales and Marketing Expenses. Sales and marketing expenses were RMB168.2 million (US$24.0 million), a decrease of 7.7% from RMB182.3 million in the same period of 2023. The decrease was primarily attributable to lower marketing and promotion expenses and travel expenses. Sales and marketing expenses as a percentage of net revenues were 7.4%, compared with 8.0% in the same period of 2023. Research and Development Expenses. Research and development expenses were RMB49.8 million (US$7.1 million), an increase of 12.2% from RMB44.4 million in the same period of 2023. The increase was primarily attributable to higher employee benefit costs and expenses related to technology and information services. Research and development expenses as a percentage of net revenues were 2.2%, compared with 2.0% in the same period of 2023. General and Administrative Expenses. General and administrative expenses were RMB175.6 million (US$25.0 million), an increase of 16.6% from RMB150.7 million in the same period of 2023. The increase was primarily attributable to higher share-based compensation expenses and the allowance for credit losses, which were partially offset by decreased employee benefit costs and travel expenses. General and administrative expenses as a percentage of net revenues were 7.7%, compared with 6.7% in the same period of 2023. Loss from Operations. Loss from operations was RMB105.4 million (US$15.0 million), compared with RMB121.4 million in the same period of 2023. Operating loss margin was 4.6%, compared with 5.4% in the same period of 2023. Non-GAAP EBITDA. Non-GAAP EBITDA was negative RMB62.8 million (US$9.0 million), compared with negative RMB76.1 million in the same period of 2023. Non-GAAP EBITDA margin was negative 2.8%, compared with negative 3.4% in the same period of 2023. Net Loss. Net loss was RMB81.8 million (US$11.7 million), compared with RMB97.7 million in the same period of 2023. Net loss margin was 3.6%, compared with 4.3% in the same period of 2023. Non-GAAP Adjusted Net Loss. Non-GAAP adjusted net loss was RMB66.2 million (US$9.4 million), compared with RMB98.7 million in the same period of 2023. Non-GAAP adjusted net loss margin was 2.9%, compared with 4.4% in the same period of 2023. Basic and Diluted Net Loss per ADS[7] and Non-GAAP Adjusted Basic and Diluted Net Loss per ADS[8]. Basic and diluted net loss per ADS were RMB0.50 (US$0.07), compared with RMB5.33 in the same period of 2023. Non-GAAP adjusted basic and diluted net loss per ADS were RMB0.40(US$0.06), compared with RMB2.61 in the same period of 2023. [7] ADSs are American depositary shares, each of which represents thirty-five (35) Class A ordinary shares of the Company. [8] Non-GAAP adjusted basic and diluted net loss per ADS is a non-GAAP financial measure, which is calculated by dividing non-GAAP adjusted net loss attributable to the Company's ordinary shareholders by the weighted average number of ADSs. Balance Sheet and Cash Flow As of September 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB2.06 billion (US$294.2 million), compared with RMB2.12 billion as of December 31, 2023. Net cash generated from operating activities was RMB160.5 million (US$22.9 million) in the third quarter of 2024, compared with net cash used in operating activities of RMB9.0 million in the same period of 2023. Exchange Rate This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB7.0176 to US$1.00, the exchange rate in effect as of September 30, 2024, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all. Conference Call Information The Company's management will hold a conference call on Friday, November 22, 2024, at 7:00 A.M. U.S. Eastern Time or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the third quarter of 2024. United States (toll free): +1-888-317-6003 International: +1-412-317-6061 Mainland China (toll free): 400-120-6115 Hong Kong (toll free): 800-963-976 Hong Kong: +852-5808-1995 Access Code: 9045994 The replay will be accessible through November 29, 2024, by dialing the following numbers: United States: +1-877-344-7529 International: +1-412-317-0088 Replay Access Code: 9322507 A live and archived webcast of the conference call will also be available on the Company's investor relations website at https://ir.zkh.com. About ZKH Group Limited ZKH Group Limited (NYSE: ZKH) is a leading MRO procurement service platform in China, dedicated to propelling the MRO industry's digital transformation to drive cost reduction and efficiency improvement industry-wide. Leveraging its outstanding product selection and recommendation capabilities, ZKH provides digitalized, one-stop MRO procurement solutions that enable its customers to transparently and efficiently access a wide selection of quality products at competitive prices. The Company also facilitates timely and reliable product delivery with professional fulfillment services. By catering specifically to the needs of MRO suppliers and customers through its unmatched digital infrastructure, the Company empowers all participants in the value chain to achieve more. For more information, please visit: https://ir.zkh.com. Use of Non-GAAP Financial Measures This press release contains the following non-GAAP financial measures: non-GAAP adjusted net loss, non-GAAP adjusted net loss per ADS, basic and diluted, and non-GAAP EBITDA. The non-GAAP financial measures should not be considered in isolation from or construed as alternatives to their most directly comparable financial measures prepared in accordance with accounting principles generally accepted in the United States of America. Investors are encouraged to review the historical non-GAAP financial measures in reconciliation to their most directly comparable GAAP financial measures. The Company defines non-GAAP adjusted net loss for a specific period as net loss in the same period excluding share-based compensation expenses. The Company defines non-GAAP EBITDA as net loss before interest expenses, income tax expenses/(benefits) and depreciation and amortization expenses. Non-GAAP adjusted net loss per ADS is calculated by dividing adjusted net loss attributable to the Company's ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods and then multiplied by 35. The Company presents these non-GAAP financial measures because they are used by the management to evaluate the Company's operating performance and formulate business plans. The Company believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in net loss and certain expenses that are not expected to result in future cash payments or that are non-recurring in nature. The Company also believes that the use of these non-GAAP financial measures facilitates investors' assessment of its operating performance, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by the management in financial and operational decision making. The non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations. They may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider the non-GAAP financial measures as substitutes for, or superior to, their most directly comparable financial measures prepared in accordance with GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" set forth at the end of this press release. Safe Harbor Statement This press release contains forward-looking statements. These statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expects," "anticipates," "aim," "estimates," "intends," "plans," "believes," "is/are likely to," "potential," "continue," and similar statements. Among other things, the quotations from management in this press release and ZKH's strategic and operational plans contain forward-looking statements. ZKH may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press release and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ZKH's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ZKH's mission, goals and strategies; ZKH's future business development, financial condition and results of operations; the expected changes in its revenues, expenses or expenditures; the expected growth of the MRO procurement service industry in China and globally; changes in customer or product mix; ZKH's expectations regarding the prospects of its business model and the demand for and market acceptance of its products and services; ZKH's expectations regarding its relationships with customers, suppliers, and service providers on its platform; competition in the Company's industry; government policies and regulations relating to ZKH's industry; general economic and business conditions in China and globally; the outcome of any current and future legal or administrative proceedings; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ZKH's filings with the SEC. All information provided herein is as of the date of this announcement, and ZKH undertakes no obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: In China: ZKH Group LimitedIR DepartmentE-mail: IR@zkh.com Piacente Financial CommunicationsHui FanTel: +86-10-6508-0677E-mail: zkh@thepiacentegroup.com In the United States: Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050E-mail: zkh@thepiacentegroup.com ZKH GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except share, ADS, per share and per ADS data) As of December 31, As of September 30, 2023 2024 RMB RMB US$ Assets Current assets: Cash and cash equivalents 1,090,621 1,460,075 208,059 Restricted cash 159,751 78,964 11,252 Short-term investments 874,210 525,402 74,869 Accounts receivable (net of allowance for credit losses of RMB107,032 and RMB154,088 as of December 31, 2023 and September 30, 2024, respectively) 3,639,794 3,166,588 451,235 Notes receivable 352,997 247,092 35,210 Inventories 668,984 656,906 93,608 Prepayments and other current assets 168,117 182,031 25,941 Total current assets 6,954,474 6,317,058 900,174 Non-current assets: Property and equipment, net 145,288 177,170 25,247 Land use right 11,033 10,864 1,548 Operating lease right-of-use assets, net 224,930 189,530 27,008 Intangible assets, net 20,096 16,160 2,303 Goodwill 30,807 30,807 4,390 Total non-current assets 432,154 424,531 60,496 Total assets 7,386,628 6,741,589 960,670 Liabilities Current liabilities: Short-term borrowings 585,000 495,000 70,537 Accounts and notes payable 2,883,370 2,522,559 359,462 Operating lease liabilities 91,230 82,122 11,702 Advance from customers 19,907 32,419 4,620 Accrued expenses and other current liabilities 448,225 360,356 51,350 Total current liabilities 4,027,732 3,492,456 497,671 Non-current liabilities: Long-term borrowings - 26,046 3,712 Non-current operating lease liabilities 146,970 116,501 16,601 Other non-current liabilities 507 25,947 3,697 Total non-current liabilities 147,477 168,494 24,010 Total liabilities 4,175,209 3,660,950 521,681 ZKH Group Limited shareholders' equity: Ordinary shares (USD0.0000001 par value; 500,000,000,000 and 500,000,000,000 shares authorized; 5,621,490,964 and 5,654,400,589 shares issued and outstanding as of December 31, 2023 and September 30, 2024, respectively) 4 4 1 Additional paid-in capital 8,139,349 8,288,905 1,181,160 Statutory reserves 6,013 6,013 857 Accumulated other comprehensive loss (25,154) (46,805) (6,670) Accumulated deficit (4,908,793) (5,147,734) (733,546) Treasury stock - (19,744) (2,813) Total ZKH Group Limited shareholders' equity 3,211,419 3,080,639 438,989 Non-controlling interests - - - Total shareholders' equity 3,211,419 3,080,639 438,989 Total liabilities and shareholders' equity 7,386,628 6,741,589 960,670 ZKH GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS (All amounts in thousands, except share, ADS, per share and per ADS data) For the three months ended For the nine months ended September 30, 2023 September 30, 2024 September 30, 2023 September 30, 2024 RMB RMB US$ RMB RMB US$ Net revenues Net product revenues 2,163,403 2,207,277 314,534 6,016,617 6,146,017 875,800 Net service revenues 79,887 57,666 8,217 208,820 193,481 27,571 Other revenues 21,711 15,747 2,244 51,777 51,597 7,353 Total net revenues 2,265,001 2,280,690 324,995 6,277,214 6,391,095 910,724 Cost of revenues (1,895,587) (1,892,284) (269,648) (5,241,931) (5,285,622) (753,195) Operating expenses Fulfillment (113,554) (100,176) (14,275) (331,136) (296,621) (42,268) Sales and marketing (182,269) (168,161) (23,963) (530,765) (489,963) (69,819) Research and development (44,356) (49,785) (7,094) (138,074) (128,052) (18,247) General and administrative (150,669) (175,639) (25,028) (427,253) (497,019) (70,825) Loss from operations (121,434) (105,355) (15,013) (391,945) (306,182) (43,630) Interest and investment income 13,868 17,279 2,462 43,285 49,779 7,093 Interest expense (5,187) (4,967) (708) (12,787) (16,184) (2,306) Others, net 15,141 11,883 1,693 36,573 34,391 4,901 Loss before income tax (97,612) (81,160) (11,566) (324,874) (238,196) (33,942) Income tax expenses (74) (591) (84) (255) (745) (106) Net loss (97,686) (81,751) (11,650) (325,129) (238,941) (34,048) Less: net loss attributable to non- controlling interests (587) - - (349) - - Less: net loss attributable to redeemable non-controlling interests - - - (193) - - Net loss attributable to ZKH Group Limited (97,099) (81,751) (11,650) (324,587) (238,941) (34,048) Accretion on preferred shares to redemption value (104,397) - - (580,200) - - Net loss attributable to ZKH Group Limited's ordinary shareholders (201,496) (81,751) (11,650) (904,787) (238,941) (34,048) Net loss (97,686) (81,751) (11,650) (325,129) (238,941) (34,048) Other comprehensive loss/(income): Foreign currency translation adjustments 10,607 34,122 4,862 (49,613) 21,651 3,085 Total comprehensive loss (87,079) (47,629) (6,788) (374,742) (217,290) (30,963) Less: comprehensive loss attributable to non-controlling interests (587) - - (349) - - Less: comprehensive loss attributable to redeemable non-controlling interests - - - (193) - - Comprehensive loss attributable to ZKH Group Limited (86,492) (47,629) (6,788) (374,200) (217,290) (30,963) Accretion on Preferred Shares to redemption value (104,397) - - (580,200) - - Total comprehensive loss attributable to ZKH Group Limited's ordinary shareholders (190,889) (47,629) (6,788) (954,400) (217,290) (30,963) Net loss per ordinary share attributable to ordinary shareholders Basic and diluted (0.15) (0.01) (0.00) (0.68) (0.04) (0.01) Weighted average number of shares Basic and diluted 1,322,404,244 5,743,094,981 5,743,094,981 1,322,404,244 5,744,351,364 5,744,351,364 Net loss per ADS attributable to ordinary shareholders Basic and diluted (5.33) (0.50) (0.07) (23.95) (1.46) (0.21) Weighted average number of ADS (35 Class A ordinary shares equal to 1 ADS) Basic and diluted 37,782,978 164,088,428 164,088,428 37,782,978 164,124,325 164,124,325 ZKH GROUP LIMITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except share, ADS, per share and per ADS data) For the three months ended For the nine months ended September 30, 2023 September 30, 2024 September 30, 2023 September 30, 2024 RMB RMB US$ RMB RMB US$ Net loss (97,686) (81,751) (11,650) (325,129) (238,941) (34,048) Income tax expenses 74 591 84 255 745 9 Interest expenses 5,187 4,967 708 12,787 16,184 2,306 Depreciation and amortization expenses 16,333 13,381 1,907 56,919 42,084 5,997 Non-GAAP EBITDA (76,092) (62,812) (8,951) (255,168) (179,928) (25,736) For the three months ended For the nine months ended September 30, 2023 September 30, 2024 September 30, 2023 September 30, 2024 RMB RMB US$ RMB RMB US$ Net loss (97,686) (81,751) (11,650) (325,129) (238,941) (34,048) Add: Share-based compensation expenses (988) 15,573 2,219 10,084 94,447 13,459 Non-GAAP adjusted net loss (98,674) (66,178) (9,431) (315,045) (144,494) (20,589) Non-GAAP adjusted net loss attributable to ordinary shareholders per share Basic and diluted (0.07) (0.01) (0.00) (0.24) (0.03) (0.00) Weighted average number of ordinary shares Basic and diluted 1,322,404,244 5,743,094,981 5,743,094,981 1,322,404,244 5,744,351,364 5,744,351,364 Non-GAAP adjusted net loss attributable to ordinary shareholders per ADS Basic and diluted (2.61) (0.40) (0.06) (8.34) (0.88) (0.13) Weighted average number of ADS (35 Class A ordinary shares equal to 1 ADS) Basic and diluted 37,782,978 164,088,428 164,088,428 37,782,978 164,124,325 164,124,325
– Kura to receive a $330 million upfront payment and up to $1.2 billion in total milestone payments, including $420 million in near-term milestone payments and opt-in right for solid tumors – – Companies to jointly develop and commercialize ziftomenib; 50/50 profit share in the U.S.; Kura to lead U.S. development and commercial activities and book sales; Kyowa Kirin has exclusive commercialization rights outside the U.S. – – Companies to jointly pursue broad development program targeting acute leukemias, including frontline indications, combinations with targeted therapies and post-transplant maintenance setting – – Kura anticipates collaboration funding along with current cash balance to support AML program advances through commercialization in frontline combination therapy – SAN DIEGO and TOKYO, Nov. 21, 2024 /PRNewswire/ -- Kura Oncology, Inc. (Nasdaq: KURA) and Kyowa Kirin Co., Ltd. (TSE: 4151) today announced they have entered into a global strategic collaboration to develop and commercialize ziftomenib, Kura's selective oral menin inhibitor, being investigated for the treatment of patients with acute myeloid leukemia (AML) and other hematologic malignancies. Under the terms of the agreement, Kura will receive an upfront payment of $330 million and expects to receive up to $420 million in near-term milestone payments, including a payment upon the launch of ziftomenib in the monotherapy relapsed/refractory (R/R) setting. In addition, Kura is eligible to receive additional development, regulatory and commercial milestone payments of $741 million, totaling up to $1.161 billion in payments for milestones and the opt-in for solid tumor indications. In the U.S., Kura will lead development, regulatory and commercial strategy and be responsible for manufacturing ziftomenib. The companies will jointly perform commercialization activities in accordance with a co-created U.S. territory commercialization plan and will share equally in any potential profits and losses. Outside the U.S., Kyowa Kirin will lead development, regulatory and commercial strategy and is responsible for commercializing ziftomenib. Kura will be eligible to receive tiered double-digit royalties on net product sales. As a Japan based global specialty pharmaceutical company, Kyowa Kirin aims to create treatments with life-changing value that bring smiles to people living with disease. The company will leverage its hemato-oncology experience and capabilities, and its deep commitment to partnerships, to successfully bring ziftomenib to market globally. "We believe that ziftomenib is a very promising investigational treatment for genetically defined AML patients," said Yasuo Fujii, MBA, Chief Strategy Officer, Managing Executive Officer of Kyowa Kirin. "The addition of ziftomenib will complement Kyowa Kirin's existing hemato-oncology portfolio and pipeline and expand our clinical development efforts into combination therapies designed to generate improved outcomes for cancer patients. We look forward to collaborating closely with the team at Kura and adding ziftomenib to our portfolio of oncology candidates as part of our commitment to bringing new, advanced treatment options to patients and the clinical community around the world." Ziftomenib is the first and only investigational therapy to receive breakthrough designation from the U.S. Food and Drug Administration (FDA) for the treatment of R/R NPM1-mutant AML, a mutation that is associated with poor outcomes[i],[ii],[iii]. Enrollment in a Phase 2 registration-directed trial of ziftomenib in R/R NPM1-mutant AML has been completed and the companies anticipate submission of a New Drug Application (NDA) in 2025. Kura is also conducting a series of clinical trials to evaluate ziftomenib in combination with current standards of care in newly diagnosed and R/R NPM1-mutant and KMT2A-rearranged AML. Kura expects to initiate registrational Phase 3 frontline studies in both the fit and unfit frontline AML patient populations in 2025. "This collaboration is an important step toward fulfilling Kura's commitment to realizing the promise of precision medicines for the treatment of cancer, and it substantially advances our goal of building a sustainable, fully integrated biopharmaceutical company," said Troy Wilson, Ph.D., J.D., President and Chief Executive Officer of Kura Oncology. "Kyowa Kirin is a wonderful partner for Kura, bringing the expertise and scale of a global pharmaceutical company. On behalf of our leadership team and board of directors, we are thrilled to be working with Kyowa Kirin to realize the potential of ziftomenib as a transformational therapy for AML patients." Importantly," Dr. Wilson continued, "we believe the upfront and anticipated milestone payments from this collaboration combined with our current cash position should provide sufficient funding to support the ziftomenib program to commercialization in the frontline setting, which we believe is a market opportunity of up to $3 billion annually in the U.S. alone." Additional Details About the Collaboration Following regulatory approval, Kura will book sales and take the lead role in U.S. commercial strategy development and both parties will share in commercialization activities. Profits and losses from the commercialization activities will be shared equally in the U.S. Outside the U.S., Kyowa Kirin will lead and perform commercialization activities, book sales and be responsible for the conduct and funding of commercialization of ziftomenib, and Kura is eligible to receive tiered double-digit royalties on net product sales. As part of the strategic collaboration, the companies will share responsibility for the conduct of clinical trials delineated within an agreed-upon global development plan. For the global development plan, Kura will fund the development costs until the end of 2028, and from 2029 onwards, both companies will share the costs at a 50:50 ratio. The companies will share equally the funding of future trials in the U.S. The agreement includes plans to launch multiple Phase 2 and Phase 3 studies of ziftomenib in AML and other hematologic malignancies over the next several years. Development and commercialization activities under the collaboration will be managed through a shared governance structure. Under the Agreement, Kyowa Kirin has an option to participate in the development and commercialization of ziftomenib in gastrointestinal stromal tumors (GIST) and other solid tumor indications upon opt-in after receipt of clinical data from the ongoing proof-of-concept study evaluating ziftomenib and imatinib in patients with advanced GIST not successfully treated with imatinib. If Kyowa Kirin exercises its option, Kura is eligible for upfront and milestone payments totaling $228 million and the parties' roles and responsibilities follow the same structure as the collaboration in AML and other heme malignancies. Excluded from the collaboration are Kura's ongoing efforts to advance multiple, next-generation menin inhibitor drug candidates targeting certain oncology indications, as well as diabetes and other metabolic diseases. Kura was advised in the transaction by BofA Securities and represented by Cooley LLP. Conference Call Kura will host a webcast and conference call featuring management from both companies at 5:30 pm ET today, November 20, 2024. The live call may be accessed by dialing (800) 715-9871 for domestic callers and (646) 307-1963 for international callers and entering the conference ID: 6978447. A live webcast will be available here and in the Investors section of Kura's website, with an archived replay available shortly after the event. About Ziftomenib Ziftomenib is a selective and oral menin inhibitor currently in development for the treatment of genetically defined AML patients with high unmet need. In April 2024, ziftomenib received Breakthrough Therapy Designation (BTD) by the FDA for the treatment of R/R NPM1-mutant AML based on data from Kura's ongoing KOMET-001 clinical trial. Additional information about clinical trials for ziftomenib can be found at kuraoncology.com/clinical-trials/#ziftomenib. About Kura Oncology Kura Oncology is a clinical-stage biopharmaceutical company committed to realizing the promise of precision medicines for the treatment of cancer. The Company's pipeline consists of small molecule drug candidates that target cancer signaling pathways. Ziftomenib, a once-daily, oral drug candidate targeting the menin-KMT2A protein-protein interaction, has received BTD for the treatment of R/R NPM1-mutant AML. Kura has completed enrollment in a Phase 2 registration-directed trial of ziftomenib in R/R NPM1-mutant AML (KOMET-001). The Company is also conducting a series of clinical trials to evaluate ziftomenib in combination with current standards of care in newly diagnosed and R/R NPM1-mutant and KMT2A-rearranged AML. Kura is evaluating KO-2806, a next-generation farnesyl transferase inhibitor (FTI), in a Phase 1 dose-escalation trial as a monotherapy and in combination with targeted therapies (FIT-001). Tipifarnib, a potent and selective FTI, is currently in a Phase 1/2 trial in combination with alpelisib for patients with PIK3CA-dependent head and neck squamous cell carcinoma (KURRENT-HN). For additional information, please visit Kura's website at www.kuraoncology.com and follow us on X and LinkedIn. About Kyowa Kirin Kyowa Kirin aims to discover and deliver novel medicines and treatments with life-changing value. As a Japan-based Global Specialty Pharmaceutical Company, Kyowa Kirin has invested in drug discovery and biotechnology innovation for more than 70 years and is currently working to engineer the next generation of antibodies and cell and gene therapies with the potential to help patients with high unmet medical needs, such as bone & mineral, intractable hematological diseases/hematology and rare diseases. A shared commitment to Kyowa Kirin's values, to sustainable growth, and to making people smile unites Kyowa Kirin across the globe. You can learn more about the business of Kyowa Kirin at www.kyowakirin.com. Kura Forward-Looking Statements This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include statements regarding, among other things, Kura's potential receipt of milestone payments and tiered double-digit royalties under the collaboration; the pursuit of a broad ziftomenib development program including frontline indications, combinations with targeted therapies and post-transplant maintenance setting; Kura's ability to fund its AML program to commercialization in frontline combinations through the collaboration plus its current cash balance; the efficacy, safety and therapeutic potential of ziftomenib, potential benefits of combining ziftomenib with appropriate standards of care, and progress and expected timing of the ziftomenib program and clinical trials, including the timing of submission of an NDA and initiation of registrational Phase 3 frontline studies; the market opportunity of ziftomenib in the frontline setting; plans to launch multiple Phase 2 and Phase 3 studies of ziftomenib in AML and other hematologic malignancies over the next several years; and Kura's potential receipt of additional upfront and milestone payments If KKC exercises its option. Factors that may cause actual results to differ materially include the risk that compounds that appeared promising in early research or clinical trials do not demonstrate safety and/or efficacy in later preclinical studies or clinical trials, the risk that Kura may not obtain approval to market its product candidates, uncertainties associated with performing clinical trials, regulatory filings, applications and other interactions with regulatory bodies, risks associated with reliance on third parties to successfully conduct clinical trials, the risks associated with reliance on outside financing to meet capital requirements, the risk that the collaboration is unsuccessful, and other risks associated with the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics, and in the endeavor of building a business around such drugs. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "promise," "potential," "expects," "plans," "anticipates," "intends," "continues," "designed," "goal," or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties the Company faces, please refer to the Company's periodic and other filings with the Securities and Exchange Commission (SEC), including the Company's Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 7, 2024, which are available at www.sec.gov. Such forward-looking statements are current only as of the date they are made, and Kura assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. i Burrows F et al. Poster presented at: AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics: Discovery, Biology, and Clinical Applications; October 26-30, 2017; Philadelphia, PAii Issa GC et al. Blood Adv. 2023;7(6):933-942. doi:10.1182/bloodadvances.2022008316iii Ostronoff F et al. J Clin Oncol. 2015;33(10):1157-1164. doi:10.1200/JCO.2014.58.0571
BEIJING, Nov. 20, 2024 /PRNewswire/ -- Cheche Group Inc. (NASDAQ: CCG) ("Cheche" or the "Company"), China's leading auto insurance technology platform, today announced it will host a conference call to discuss third quarter 2024 results on Tuesday, November 26, 2024, at 8:00 a.m. EST. The earnings release and related investor deck will be available prior to the event in the "Quarterly Results" section under "Financials", while the live webcast will be available in the "Events" section under the "News & Events" header on the investor relations website at ir.chechegroup.com. The dial-in numbers for the conference call will be as follows: Participant (toll-free): 1-888-346-8982 Participant (international): 1-412-902-4272 Hong Kong LT: 852-301-84992 Hong Kong Toll Free: 800-905945 Mainland China Toll-Free: 852-301-84992 Please dial in 10 to 15 minutes before the scheduled start time and request Cheche's third quarter earnings call. The Company intends to make the webcast replay available for one year. About Cheche Group Inc. Established in 2014 and headquartered in Beijing, China, Cheche is a leading auto insurance technology platform with a nationwide network of around 108 branches licensed to distribute insurance policies across 25 provinces, autonomous regions, and municipalities in China. Capitalizing on its leading position in auto insurance transaction services, Cheche has evolved into a comprehensive, data-driven technology platform that offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions in China. Learn more at https://www.chechegroup.com/en. Cheche Group Inc.: IR@chechegroup.com Crocker Coulsoncrocker.coulson@aummedia.org(646) 652-7185
SHANGHAI, Nov. 20, 2024 /PRNewswire/ -- ATRenew Inc. ("ATRenew" or the "Company") (NYSE: RERE), a leading technology-driven pre-owned consumer electronics transactions and services platform in China, today announced its unaudited financial results for the three months ended September 30, 2024. Third Quarter 2024 Highlights Total net revenues grew by 24.4% to RMB4,051.2 million (US$577.3 million) from RMB3,256.8 million in the third quarter of 2023. Income from operations was RMB24.9 million (US$3.5 million), compared to a loss from operations of RMB28.1 million in the third quarter of 2023. Adjusted income from operations (non-GAAP)[1] was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the third quarter of 2023. Number of consumer products transacted[2] was 9.1 million compared to 8.2 million in the third quarter of 2023. Mr. Kerry Xuefeng Chen, Founder, Chairman, and Chief Executive Officer of ATRenew, commented, "We are delighted to report that our total net revenues reached RMB4.05 billion in the third quarter of 2024, representing a robust year-over-year growth of 24.4%. We are particularly encouraged by the widespread adoption of our consumer electronics trade-in services, which provide consumers with a seamless experience and competitive pricing. Our AHS stores maintain their industry-leading position, serving as the preferred destination for users to recycle reusable consumer products and purchase quality-assured, value-for-money pre-owned electronic devices." Mr. Rex Chen, Chief Financial Officer of ATRenew, added, "The third quarter marked another milestone in our path to enhanced profitability, as we achieved positive GAAP income from operations and our non-GAAP income from operations exceeded RMB100 million for the first time. These results reflect our successful initiatives to optimize operating expenses and the diminishing impact of amortization expenses from historical acquisitions. We also demonstrated our commitment to shareholder returns by repurchasing over US$12 million of our shares during the quarter. Looking ahead, we remain focused on driving operational efficiency and delivering sustainable value to our users and shareholders." [1]. See "Reconciliations of GAAP and Non-GAAP Results" for more information. [2]. "Number of consumer products transacted" represents the number of consumer products distributed to merchants and consumers through transactions on the Company's PJT Marketplace, Paipai Marketplace and other channels the Company operates in a given period, prior to returns and cancellations, excluding the number of consumer products collected through AHS Recycle; a single consumer product may be counted more than once according to the number of times it is transacted on PJT Marketplace, Paipai Marketplace and other channels the Company operates through the distribution process to end consumer. Third Quarter 2024 Financial Results REVENUE Total net revenues increased by 24.4% to RMB4,051.2 million (US$577.3 million) from RMB3,256.8 million in the same period of 2023. Net product revenues increased by 25.6% to RMB3,672.2 million (US$523.3 million) from RMB2,924.0 million in the same period of 2023. The increase was primarily attributable to an increase in the sales of pre-owned consumer electronics both through the Company's online and offline channels. Net service revenues increased by 13.9% to RMB379.0 million (US$54.0 million), compared to RMB332.8 million in the same period of 2023. This increase was primarily due to an increase in the service revenue generated from PJT Marketplace and multi-category recycling business. OPERATING COSTS AND EXPENSES Operating costs and expenses were RMB4,028.1 million (US$574.0 million), compared to RMB3,307.5 million in the same period of 2023, representing an increase of 21.8%. Merchandise costs were RMB3,242.8 million (US$462.1 million), compared to RMB2,611.0 million in the same period of 2023, representing an increase of 24.2%. This was primarily due to the growth in product sales. Fulfillment expenses were RMB347.3 million (US$49.5 million), compared to RMB287.7 million in the same period of 2023, representing an increase of 20.7%. The increase was primarily due to (i) an increase in personnel costs and logistics expenses as the Company conducted more recycling and transaction activities compared with the same period of 2023, and (ii) an increase in operation center related expenses as the Company expanded its store networks in the third quarter of 2024. Selling and marketing expenses were RMB315.3 million (US$44.9 million), compared to RMB299.5 million in the same period of 2023, representing an increase of 5.3%. The increase was primarily due to (i) an increase in advertising expenses and promotional campaign related expenses, and (ii) an increase in share-based compensation expenses. The increase was partially offset by a decrease in amortization of intangible assets and deferred cost resulting from assets and business acquisitions as the maturity of some intangible assets and deferred cost in the third quarter of 2023. General and administrative expenses were RMB69.3 million (US$9.9 million), compared to RMB69.8 million in the same period of 2023, representing a decrease of 0.7%, primarily due to a decrease in share-based compensation expenses. The decrease was partially offset by an increase in other personnel cost. Technology and content expenses were RMB53.4 million (US$7.6 million), compared to RMB39.4 million in the same period of 2023, representing an increase of 35.5%. The increase was primarily due to an increase in personnel costs in connection with the ongoing maintenance of the Company's operation centers and system. INCOME (LOSS) FROM OPERATIONS Income from operations was RMB24.9 million (US$3.5 million), compared to a loss from operations of RMB28.1 million in the same period of 2023. Adjusted income from operations (non-GAAP) was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the same period of 2023. NET INCOME (LOSS) Net income was RMB17.9 million (US$2.6 million), compared to a net loss of RMB44.2 million in the same period of 2023. Adjusted net income (non-GAAP) was RMB90.1 million (US$12.8 million), compared to RMB47.6 million in the same period of 2023. BASIC AND DILUTED NET INCOME PER ORDINARY SHARE Basic and diluted net income per ordinary share were RMB0.11 (US$0.02), compared to basic and diluted net loss of RMB0.27 in the same period of 2023. Adjusted basic and diluted net income per ordinary share (non-GAAP) were RMB0.56 (US$0.08) and RMB0.55 (US$0.08), compared to RMB0.30 and RMB0.29 in the same period of 2023. CASH AND CASH EQUIVALENTS, RESTRICTED CASH, SHORT-TERM INVESTMENTS AND FUNDS RECEIVABLE FROM THIRD PARTY PAYMENT SERVICE PROVIDERS Cash and cash equivalents, restricted cash, short-term investments and funds receivable from third party payment service providers were RMB2,350.5 million (US$334.9 million) as of September 30, 2024, as compared to RMB2,854.4 million as of December 31, 2023. Business Outlook For the fourth quarter of 2024, the Company currently expects its total revenues to be between RMB4,740.0 million and RMB4,840.0 million, representing an increase of 22.4% to 24.9% year-over-year. This forecast only reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change. Recent Development On August 29, 2024, ATRenew announced an improvement in its Environmental, Social and Governance (ESG) score as assessed by S&P Global's Corporate Sustainability Assessment in 2024, placing it in the 93rd percentile among its global RTS retailing industry peers. This is primarily attributable to ATRenew's commitment to ESG, particularly greater transparency in its climate strategy, human capital management, and business ethics. During the third quarter of 2024, ATRenew repurchased a total of approximately 4.9 million ADSs for approximately US$12.1 million under its current share repurchase program which authorizes the Company to repurchase up to US$50 million worth of its shares (including ADSs) through June 27, 2025. As of September 30, 2024, the Company had repurchased a total of approximately 8.2 million ADSs for approximately US$20.1 million under this share repurchase program. Conference Call Information The Company's management will hold a conference call on Wednesday, November 20, 2024 at 07:00 A.M. Eastern Time (or 08:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers: International: 1-412-317-6061 United States Toll Free: 1-888-317-6003 Mainland China Toll Free: 4001-206115 Hong Kong Toll Free: 800-963976 Access Code: 3668505 The replay will be accessible through November 27, 2024 by dialing the following numbers: International: 1-412-317-0088 United States Toll Free: 1-877-344-7529 Access Code: 3972162 A live and archived webcast of the conference call will also be available at the Company's investor relations website at ir.atrenew.com. About ATRenew Inc. Headquartered in Shanghai, ATRenew Inc. operates a leading technology-driven pre-owned consumer electronics transactions and services platform in China under the brand ATRenew. Since its inception in 2011, ATRenew has been on a mission to give a second life to all idle goods, addressing the environmental impact of pre-owned consumer electronics by facilitating recycling and trade-in services, and distributing the devices to prolong their lifecycle. ATRenew's open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. Through its end-to-end coverage of the entire value chain and its proprietary inspection, grading, and pricing technologies, ATRenew sets the standard for China's pre-owned consumer electronics industry. ATRenew is a participant in the United Nations Global Compact, and adheres to its principles-based approach to responsible business. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024. Use of Non-GAAP Financial Measures The Company also uses certain non-GAAP financial measures in evaluating its business. For example, the Company uses adjusted income from operations, adjusted net income and adjusted net income per ordinary share as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Adjusted income from operations is loss from operations excluding the share-based compensation expenses and amortization of intangible assets and deferred cost resulting from assets and business acquisitions. Adjusted net income is net loss excluding the share-based compensation expenses and amortization of intangible assets and deferred cost resulting from assets and business acquisitions and tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions. Adjusted net income per ordinary share is adjusted net income attributable to ordinary shareholders divided by weighted average number of shares used in calculating net loss per ordinary share. The Company presents non-GAAP financial measures because they are used by the Company's management to evaluate the Company's financial and operating performance and formulate business plans. The Company believes that adjusted income from operations and adjusted net income help identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that are included in loss from operations and net loss. The Company also believes that the use of non-GAAP financial measures facilitates investors' assessment of the Company's operating performance. The Company believes that adjusted income from operations and adjusted net income provide useful information about the Company's operating results, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company's operations. The share-based compensation expenses, amortization of intangible assets and deferred cost resulting from assets and business acquisitions and tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions have been and may continue to be incurred in the Company's business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, potentially limiting the comparability of their financial results to the Company's. In light of the foregoing limitations, the non-GAAP financial measures for the period should not be considered in isolation from or as an alternative to income from operations, net income, and net income attributable to ordinary shareholders per share, or other financial measures prepared in accordance with U.S. GAAP. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company's performance. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, "Reconciliations of GAAP and Non-GAAP Results." Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. ATRenew may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ATRenew's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ATRenew's strategies; ATRenew's future business development, financial condition and results of operations; ATRenew's ability to maintain its relationship with major strategic investors; its ability to facilitate pre-owned consumer electronics transactions and provide relevant services; its ability to maintain and enhance the recognition and reputation of its brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ATRenew's filings with the SEC. All information provided in this press release is as of the date of this press release, and ATRenew does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Investor Relations Contact In China:ATRenew Inc.Investor RelationsEmail: ir@atrenew.com In the United States:ICR LLC.Email: atrenew@icrinc.com Tel: +1-212-537-0461 ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share and otherwise noted) As of December 31, As of September 30, 2023 2024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,978,696 1,347,338 191,994 Restricted cash 210,000 132,000 18,810 Short-term investments 410,547 630,123 89,792 Amount due from related parties, net 89,592 218,771 31,175 Inventories 1,017,155 678,026 96,618 Funds receivable from third party payment service providers 253,107 241,047 34,349 Prepayments and other receivables, net 567,622 754,617 107,532 Total current assets 4,526,719 4,001,922 570,270 Non-current assets: Long-term investments 467,095 558,221 79,546 Property and equipment, net 148,223 159,236 22,691 Intangible assets, net 270,631 100,496 14,321 Other non-current assets 80,411 149,115 21,249 Total non-current assets 966,360 967,068 137,807 TOTAL ASSETS 5,493,079 4,968,990 708,077 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings 349,931 307,291 43,789 Accounts payable 532,293 105,314 15,007 Contract liabilities 119,715 81,571 11,624 Accrued expenses and other current liabilities 465,123 478,145 68,135 Accrued payroll and welfare 146,371 148,945 21,224 Amount due to related parties 78,032 116,255 16,566 Total current liabilities 1,691,465 1,237,521 176,345 Non-current liabilities: Operating lease liabilities, non-current 22,495 80,366 11,452 Deferred tax liabilities 67,658 42,099 5,999 Total non-current liabilities 90,153 122,465 17,451 TOTAL LIABILITIES 1,781,618 1,359,986 193,796 TOTAL SHAREHOLDERS' EQUITY 3,711,461 3,609,004 514,281 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5,493,079 4,968,990 708,077 ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE INCOME (LOSS) (Amounts in thousands, except share and per share and otherwise noted) Three months ended September 30, Nine months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ Net revenues Net product revenues 2,923,970 3,672,239 523,290 8,135,824 10,383,813 1,479,682 Net service revenues 332,787 378,999 54,007 956,386 1,095,264 156,074 Operating (expenses) income (1)(2) Merchandise costs (2,611,018) (3,242,843) (462,101) (7,188,902) (9,181,300) (1,308,325) Fulfillment expenses (287,704) (347,270) (49,486) (822,913) (985,325) (140,408) Selling and marketing expenses (299,491) (315,293) (44,929) (933,835) (990,607) (141,160) General and administrative expenses (69,826) (69,302) (9,875) (203,794) (215,671) (30,733) Technology and content expenses (39,430) (53,396) (7,609) (131,905) (153,391) (21,858) Other operating income, net 22,640 1,751 250 32,512 23,082 3,289 Income (loss) from operations (28,072) 24,885 3,547 (156,627) (24,135) (3,439) Interest expense (2,186) (3,615) (515) (5,498) (12,332) (1,757) Interest income 11,083 8,686 1,238 24,658 20,611 2,937 Other (loss) income, net (4,428) 47 7 (6,719) (41,305) (5,886) Income (loss) before income taxes and share of loss in equity method investments (23,603) 30,003 4,277 (144,186) (57,161) (8,145) Income tax benefits 10,047 5,949 848 33,607 24,536 3,496 Share of loss in equity method investments (30,632) (18,069) (2,575) (48,449) (53,028) (7,556) Net income (loss) (44,188) 17,883 2,550 (159,028) (85,653) (12,205) Net income (loss) per ordinary share: Basic (0.27) 0.11 0.02 (0.99) (0.53) (0.08) Diluted (0.27) 0.11 0.02 (0.99) (0.53) (0.08) Weighted average number of shares used in calculating net income (loss) per ordinary share Basic 161,338,983 161,405,774 161,405,774 161,393,190 162,011,110 162,011,110 Diluted 161,338,983 164,258,720 164,258,720 161,393,190 162,011,110 162,011,110 Net income (loss) (44,188) 17,883 2,550 (159,028) (85,653) (12,205) Foreign currency translation adjustments (5,676) (7,093) (1,011) 15,897 (7,183) (1,024) Total comprehensive income (loss) (49,864) 10,790 1,539 (143,131) (92,836) (13,229) ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (CONTINUED) (Amounts in thousands, except share and per share and otherwise noted) Three months ended September 30, Nine months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (1) Includes share-based compensation expenses as follows: Fulfillment expenses (5,362) (3,021) (430) (17,910) (15,992) (2,279) Selling and marketing expenses (5,165) (12,220) (1,741) (13,266) (56,792) (8,093) General and administrative expenses (19,239) (13,854) (1,974) (56,182) (45,924) (6,544) Technology and content expenses (5,218) (3,657) (521) (15,649) (13,611) (1,940) (2) Includes amortization of intangible assets and deferred cost resulting from assets and business acquisitions as follows: Selling and marketing expenses (66,412) (46,263) (6,592) (222,337) (169,154) (24,104) Technology and content expenses (482) (130) (19) (1,446) (981) (140) Reconciliations of GAAP and Non-GAAP Results (Amounts in thousands, except share and per share and otherwise noted) Three months ended September 30, Nine months ended September 30, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ Income (loss) from operations (28,072) 24,885 3,547 (156,627) (24,135) (3,439) Add: Share-based compensation expenses 34,984 32,752 4,666 103,007 132,319 18,856 Amortization of intangible assets and deferred cost resulting from assets and business acquisitions 66,894 46,393 6,611 223,783 170,135 24,244 Adjusted income from operations (non-GAAP) 73,806 104,030 14,824 170,163 278,319 39,661 Net income (loss) (44,188) 17,883 2,550 (159,028) (85,653) (12,205) Add: Share-based compensation expenses 34,984 32,752 4,666 103,007 132,319 18,856 Amortization of intangible assets and deferred cost resulting from assets and business acquisitions 66,894 46,393 6,611 223,783 170,135 24,244 Less: Tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions (10,047) (6,972) (994) (33,607) (25,559) (3,642) Adjusted net income (non-GAAP) 47,643 90,056 12,833 134,155 191,242 27,253 Adjusted net income per ordinary share (non-GAAP): Basic 0.30 0.56 0.08 0.83 1.18 0.17 Diluted 0.29 0.55 0.08 0.80 1.16 0.17 Weighted average number of shares used in calculating net income per ordinary share Basic 161,338,983 161,405,774 161,405,774 161,393,190 162,011,110 162,011,110 Diluted 166,112,358 164,258,720 164,258,720 167,609,332 165,040,389 165,040,389
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