Toward the end of 2018, the company had announced they would be changing the way they did business. Uxin said then that they would reduce the focus on their dealer-centric auction business and halt services like car inspections. That change has led to a steep decrease in revenue from that industry.
This past summer, Uxin announced the company would divest from their loan business after a deal with the Chinese financial platform, Golden Pacer. This change led to a delay in Uxin's second-quarter financial information as they made the proper changes.
That financial report is now out and the numbers reveal that Uxin isn't doing too well. As revenue continues to fall the company's investors weren't happy and sent the stock down by over 15%.
|Metric||Q2 2019||Q2 2018||Change (Decline)|
|Revenue||$63.9 million||$100.6 million||(36.4%)|
|Net income from continuing operations (loss)||($49.8 million)||($197.1 million)||N/A|
|Diluted earnings per share||($0.06)||($0.24)||N/A|
This past quarter wasn't quiet for Uxin. Their partnership with Golden Pacer didn't yield the positive financial result that Uxin probably hoped for. However, if their numbers aren't all doom and gloom. Revenue, when looked at organically and without divestments, is actually up by 58.3% which is the same amount as the quarter before. And the company's consumer-facing auction business saw a 500% increase which brought it up to a total of $46.4 million.
Uxin's management emphasized their cross-region efforts that was only just getting going a year ago, which helped the company increase its revenue.
The company also recently announced that their COO, William Peng, would be leaving his position and that CEO Kun Dai would begin conducting business operations.
Dai discussed the changes saying: "We continued to see robust momentum in our online used-car transaction volume with a 500% year-over-year increase to over 24,500 used cars in the quarter. This not only reflects the growing traction of our one-stop online used-car-buying product and service offerings but also demonstrates consumers' increasing acceptance of buying used cars online from us without actually seeing the car in person when they make the purchase decision."
He added: "The proposed transaction with Golden Pacer enables us to entirely concentrate on fulfilling online used-car transactions. With our 2C business model evolving into a pure play and through our innovative used car supply chain, we are better positioned to capture the market opportunities brought by the accelerating trend of buying used cars online."
The company's financial outlook believes that they will make around $61-64 million during the next quarter, which would be similar numbers to the second quarter's. This is down from last year's third quarter, which saw around $125 million in revenue.
Uxin is confident with their choices and changes and believes they will lead to more profits.
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