Uxin Limited completed a $50 million equity offering on December 26 2025, issuing 5,246,589,717 Class A ordinary shares at a subscription price of US$0.00953 per share, equivalent to US$2.859 per American Depositary Share. The deal was split between affiliates of NIO Capital, which contributed US$20 million, and Prestige Shine Group, which contributed US$30 million, providing a 25 percent discount to the company’s then‑trading ADR price.
The proceeds will be directed toward the launch of four to six new superstores in 2026 and to strengthen Uxin’s balance sheet. The company’s current ratio of 0.69—below its historical average of 0.87—signals liquidity pressure that the equity raise is designed to alleviate. By injecting fresh capital, Uxin aims to support its capital‑intensive omni‑channel strategy while maintaining sufficient working capital for inventory build‑out and operational expansion.
Uxin’s expansion strategy has accelerated in recent quarters, with Q2 2025 revenue up 64 percent year‑over‑year to US$2.65 billion and a gross margin of 5.2 percent. However, margin compression has intensified due to pricing pressure and scaling costs associated with rapid superstore roll‑outs. The new capital will help offset these headwinds, allowing the company to sustain growth momentum without resorting to debt financing.
The investment from NIO Capital, an entity focused on energy, automobiles, and deep technology, and from Prestige Shine Group, signals continued confidence from existing investors. Their follow‑on participation underscores the perceived value of Uxin’s long‑term growth prospects and the strategic fit of its superstore model within the broader automotive retail ecosystem.
The market reacted positively to the announcement, with Uxin’s ADRs trading in a favorable range in pre‑market activity. The positive sentiment reflects investor approval of the company’s ability to secure capital for expansion and to address liquidity concerns.
Kun Dai, Uxin’s Founder, Chairman and CEO, said, “We are delighted to receive continued support from our investors. Their follow‑on investment underscores our long‑term investors’ strong recognition and confidence in the Company’s strategic direction, business model, and operational progress. The proceeds will provide sufficient capital to support the launch of four to six new superstores in 2026, while also strengthening our balance sheet and further enhancing our overall financial resilience.”
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