SCHEDULE: Uxin Major Shareholder Reduces Stake

Abundant Grace Investment Limited, a significant shareholder in Uxin Limited, has reduced its beneficial ownership through recent share transfers and distributions.

Summary

• Abundant Grace Investment Limited (Grace) directly holds 18,830,582,710 Class A Ordinary Shares of Uxin Limited, representing 29.5% of the class.
• NBNW Investment Limited (NBNW) and Bin Li are deemed beneficial owners of 12,922,464,866 Class A Ordinary Shares (20.3% of the class), as NBNW holds 68.6% of Grace's voting rights and Bin Li indirectly controls NBNW.
• On October 8, 2025, Grace transferred 924,000,000 Class A Ordinary Shares to a third-party buyer for US$7,700,000, at a price of US$0.0083 per share.
• On August 22, 2025, Grace transferred a total of 2,133,333,300 Class A Ordinary Shares across five separate transactions to third-party buyers for a total consideration of US$15,999,901, with each transaction priced at US$0.0075 per share.
• On August 25, 2025, Grace made a distribution of 882,310,965 Class A Ordinary Shares to one of its shareholders for zero consideration.
• The percentage ownership calculations are based on 63,726,805,736 Class A Ordinary Shares outstanding as of August 31, 2025.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the significant reduction in beneficial ownership by a major shareholder, Abundant Grace Investment Limited, through multiple share sales and a distribution. The low transaction prices further reinforce a negative outlook.

Negatives

• A significant shareholder, Abundant Grace Investment Limited, has substantially reduced its stake in Uxin Limited through multiple share sales and a distribution.
• The share transfers occurred at very low prices (US$0.0075 and US$0.0083 per share), potentially indicating a low valuation or lack of confidence from the selling party.
• The distribution of shares for zero consideration suggests an internal transfer within the shareholder's group, which does not bring new capital to the company.

Risks

• The divestment by a major shareholder could be perceived negatively by the market, potentially leading to downward pressure on Uxin Limited's share price.
• The low transaction prices for the share sales may signal a lack of liquidity or a distressed valuation for the company's shares.
• Continued selling by significant shareholders could erode investor confidence and market stability for Uxin Limited.

Future Outlook

The filing does not contain any explicit forward-looking statements or guidance from Uxin Limited's management.

Industry Context

This filing primarily details changes in beneficial ownership by a major shareholder and does not provide information directly related to broader industry trends or Uxin Limited's competitive position within its sector. However, significant divestment by a major shareholder can be interpreted as a negative signal regarding the company's prospects within its industry.

Related Party Transactions

• On August 25, 2025, Grace made a distribution of 882,310,965 Class A Ordinary Shares to a shareholder of Grace for zero consideration, which represents an internal transfer within the reporting person's group.

Stakeholder Impact

• Shareholders may interpret the significant divestment by a major beneficial owner as a negative signal, potentially leading to decreased investor confidence and downward pressure on the share price.
• The low transaction prices for the share sales could impact market perception of Uxin Limited's valuation.

Key Dates

Recommendation

The significant reduction in beneficial ownership by Abundant Grace Investment Limited, a major shareholder controlled by Bin Li, through multiple share sales and a distribution, suggests a lack of confidence or strategic shift. The low transaction prices further reinforce a negative outlook, making a 'sell' recommendation appropriate for investors.

Keywords

Uxin Limited, Schedule 13D, beneficial ownership, share transfer, stock sale, Abundant Grace Investment Limited, NBNW Investment Limited, Bin Li, Class A ordinary shares, SEC filing