Uxin criticized the allegations made in a report from J Capital which they claim has "errors of facts, misleading information and malicious interpretations." The company also refutes that they have undisclosed or inaccurate sales figures and they added that Kun Dai, the company's CEO, hasn't sold any Uxin stock in order to raise money for the company or for his own personal use.
The company saw their stock prices tumble shortly after the J Capital Research released their report which included allegations of misconduct like hiding a "staggering level of debt" from investors, increasing loan values, creating false revenue growth figures, and lying about their transaction volumes. J Capital says Uxin is boosting their sales volume by nearly 40% above what it actually is and states that Uxin CEO is taking $280 million from the company.
J Capital Research ended by calling Uxin a "dishonest" company that is built upon plots to falsify data and sales and warned all investors to avoid Uxin at all costs.
After J Capital released their report, Uxin stock fell 36%, however after Uxin's strong denial their stock has sprung back up nearly the same amount.
Uxin started up in 2011 and currently claims to be the biggest used vehicle platform in all of China. Currently they run 670 service centers in over 270 cities within the country and allows dealers and customers to trade in new and used cars.