Uxin Announces Entry into a Memorandum of Understanding for a Proposed Investment

Rhea-AI Summary

Uxin (Nasdaq: UXIN), China's leading used car retailer, has entered into a memorandum of understanding (MOU) with Pintu (Beijing) Information Technology Co., , a subsidiary of Dida Inc. (HKEX: 2559), for a proposed investment of US$7.5 million. The investor intends to subscribe for 1,543,845,204 Class A ordinary shares at a price of US$0.004858 per share (US$1.4575 per ADS). The deal is subject to definitive agreements and closing conditions.

Additionally, the investor has agreed to extend a loan of US$7.5 million to Uxin's wholly-owned subsidiary, Youxin (Anhui) Industrial Investment Co., This strategic move could potentially strengthen Uxin's financial position in the competitive Chinese used car market.

Positive

• Potential influx of US$7.5 million in capital through share subscription
• Additional US$7.5 million loan agreement with investor
• Strategic partnership with a subsidiary of Dida Inc., a Hong Kong-listed company

Negative

• Significant share dilution with issuance of 1,543,845,204 new Class A ordinary shares
• Low share subscription price of US$0.004858 per share

BEIJING, Sept. 13, 2024 /PRNewswire/ -- Uxin Limited ("Uxin" or the "Company", together with its subsidiaries, the "Group") (Nasdaq: UXIN), China's leading used car retailer, today announced that it has entered into a memorandum of understanding ("MOU") with Pintu (Beijing) Information Technology Co., Ltd. ( the "Investor"), an indirect wholly-owned subsidiary of Dida Inc. (HKEX: 2559), on September 12, 2024 with respect to a proposed investment in the Company by the Investor (the "Proposed Investment").

Pursuant to the MOU, the Investor intends 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 (or US$1.4575 per ADS). The Proposed Investment is subject to the parties' execution of definitive agreements and closing conditions to be stipulated therein.

In connection with the Proposed Investment, the Investor and the Youxin (Anhui) Industrial Investment Co., Ltd. ("Youxin Anhui") have entered into a Loan Agreement pursuant to which the Investor agrees to extend a loan in a principal amount of RMB equivalent of US$7.5 million to Youxin Anhui. Youxin Anhui is a wholly-owned subsidiary of the Company.

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.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements which 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 "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. Statements that are not historical facts, including statements about Uxin'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: the risk and uncertainties as to the timing of the entry into definitive agreements or consummation of the transactions; the risk that certain closing conditions of the transactions may not be satisfied on a timely basis, or at all; impact of the COVID-19 pandemic; Uxin's goal and strategies; its expansion plans and successful completion of certain financing transactions; 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.

For investor and media enquiries, please contact:

Uxin Limited Investor Relations
Uxin Limited
Phone: +86 10 5691-6765
Email: ir@xin.com

The Blueshirt Group
Mr. Jack Wang
Phone: +86 166-0115-0429
Email: Jack@blueshirtgroup.com

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SOURCE Uxin Limited

FAQ

What is the value of the proposed investment in Uxin (UXIN)?

The proposed investment in Uxin (UXIN) is valued at US$7.5 million.

How many new shares will Uxin (UXIN) issue for the proposed investment?

Uxin (UXIN) plans to issue 1,543,845,204 new Class A ordinary shares for the proposed investment.

What is the subscription price per share for the proposed investment in Uxin (UXIN)?

The subscription price for the proposed investment in Uxin (UXIN) is US$0.004858 per share, or US$1.4575 per ADS.

Who is the investor in the proposed investment for Uxin (UXIN)?

The investor is Pintu (Beijing) Information Technology Co., , an indirect wholly-owned subsidiary of Dida Inc. (HKEX: 2559).

What additional financial arrangement is part of the proposed investment in Uxin (UXIN)?

As part of the proposed investment, the investor has agreed to extend a loan of US$7.5 million to Uxin's wholly-owned subsidiary, Youxin (Anhui) Industrial Investment Co.,