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

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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.

Uxin (Nasdaq: UXIN), il principale rivenditore di auto usate in Cina, ha firmato un memorandum d'intesa (MOU) con Pintu (Beijing) Information Technology Co., una sussidiaria di Dida Inc. (HKEX: 2559), per un progetto di investimento di 7,5 milioni di dollari. L'investitore intende sottoscrivere 1.543.845.204 azioni ordinarie di Classe A a un prezzo di 0,004858 dollari per azione (1,4575 dollari per ADS). Il contratto è soggetto ad accordi definitivi e condizioni di chiusura.

Inoltre, l'investitore ha concordato di estendere un prestito di 7,5 milioni di dollari a Youxin (Anhui) Industrial Investment Co., interamente controllata da Uxin. Questa mossa strategica potrebbe potenzialmente rafforzare la posizione finanziaria di Uxin nel competitivo mercato cinese delle auto usate.

Uxin (Nasdaq: UXIN), el principal minorista de autos usados en China, ha firmado un memorando de entendimiento (MOU) con Pintu (Beijing) Information Technology Co., una subsidiaria de Dida Inc. (HKEX: 2559), para una inversión propuesta de 7,5 millones de dólares. El inversor tiene la intención de suscribir 1.543.845.204 acciones ordinarias de Clase A a un precio de 0,004858 dólares por acción (1,4575 dólares por ADS). El acuerdo está sujeto a acuerdos definitivos y condiciones de cierre.

Además, el inversor ha acordado extender un préstamo de 7,5 millones de dólares a la subsidiaria de propiedad total de Uxin, Youxin (Anhui) Industrial Investment Co. Este movimiento estratégico podría potencialmente fortalecer la posición financiera de Uxin en el competitivo mercado chino de autos usados.

Uxin (Nasdaq: UXIN)은 중국의 주요 중고차 소매업체로, Dida Inc. (HKEX: 2559)의 자회사인 Pintu (Beijing) Information Technology Co.와 양해각서 (MOU)를 체결하며 7.5백만 달러의 투자를 제안했습니다. 투자자는 1,543,845,204주 A급 보통주를 주당 0.004858달러(ADS당 1.4575달러)의 가격으로 인수할 예정입니다. 이 거래는 최종 계약 및 종료 조건에 따라 달라집니다.

추가로, 투자자는 Uxin의 전액 소유 자회사인 Youxin (Anhui) Industrial Investment Co.에 7.5백만 달러의 대출을 연장하기로 동의했습니다. 이 전략적 움직임은 경쟁이 치열한 중국 중고차 시장에서 Uxin의 재무 상태를 강화할 수 있는 잠재력을 지닙니다.

Uxin (Nasdaq: UXIN), le principal détaillant de voitures d'occasion en Chine, a signé un mémorandum d'accord (MOU) avec Pintu (Beijing) Information Technology Co., une filiale de Dida Inc. (HKEX: 2559), pour un investissement proposé de 7,5 millions de dollars. L'investisseur a l'intention de souscrire 1.543.845.204 actions ordinaires de classe A à un prix de 0,004858 $ par action (1,4575 $ par ADS). L'accord est soumis à des conventions définitives et des conditions de clôture.

De plus, l'investisseur a accepté d'accorder un prêt de 7,5 millions de dollars à Youxin (Anhui) Industrial Investment Co., une filiale à 100 % d'Uxin. Ce mouvement stratégique pourrait potentiellement renforcer la position financière d'Uxin sur le marché concurrentiel des voitures d'occasion en Chine.

Uxin (Nasdaq: UXIN), Chinas führender Händler für Gebrauchtwagen, hat ein Memorandum of Understanding (MOU) mit Pintu (Beijing) Information Technology Co., einer Tochtergesellschaft von Dida Inc. (HKEX: 2559), über eine vorgeschlagene Investition von 7,5 Millionen US-Dollar unterzeichnet. Der Investor plant, 1.543.845.204 Stammaktien der Klasse A zu einem Preis von 0,004858 US-Dollar pro Aktie (1,4575 US-Dollar pro ADS) zu abonnieren. Der Deal unterliegt endgültigen Vereinbarungen und Abschlussbedingungen.

Darüber hinaus hat der Investor zugestimmt, ein Darlehen in Höhe von 7,5 Millionen US-Dollar an Uxins hundertprozentige Tochtergesellschaft, Youxin (Anhui) Industrial Investment Co., zu gewähren. Dieser strategische Schritt könnte Uxins finanzielle Position im wettbewerbsintensiven chinesischen Gebrauchtwagenmarkt potenziell stärken.

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

Insights

This US$7.5 million investment in Uxin, China's leading used car retailer, could provide a much-needed capital injection. However, the significant share dilution at US$0.004858 per share raises concerns. This price represents a substantial discount to current market rates, potentially signaling financial distress.

The simultaneous US$7.5 million loan to Youxin Anhui, Uxin's subsidiary, suggests urgent liquidity needs. While this dual transaction structure might offer short-term relief, it doesn't address underlying business challenges. Investors should closely monitor Uxin's ability to leverage this capital for sustainable growth and improved financial health.

This investment by Dida Inc., a major player in China's shared mobility sector, into Uxin, a leading used car retailer, hints at potential synergies in the evolving Chinese automotive market. The deal could signify a strategic move towards integrating ride-sharing and used car sales platforms, potentially reshaping consumer behavior in urban mobility.

However, the modest investment size of US$7.5 million suggests a cautious approach, possibly due to uncertainties in China's economic outlook and regulatory environment. Investors should watch for any follow-up collaborations or larger investments that could indicate a more significant shift in the used car and mobility services landscape.

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

Cision View original content:https://www.prnewswire.com/news-releases/uxin-announces-entry-into-a-memorandum-of-understanding-for-a-proposed-investment-302247560.html

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.,

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