Ever since Uxin, a Chinese-based digital used car platform, launched their initial public offer over a year ago it has been a problematic time for the company.
The company already announced one major change in its business model at the end of last year, saying it would downplay its "2B" dealer-focused, auction-based business by removing certain services like inspections, a move that has since led to a sharp decline in revenue from that segment.
In July, Uxin said it was divesting its loan facilitation business in a deal with Golden Pacer, a Chinese financial technology platform. As a result of that move, Uxin's second-quarter results were delayed by a month as the company has had to adjust its financial statements. When the report finally came out on Monday, it became clear that Uxin's business had taken a step back in a sense, as revenue had fallen due to the divestitures, which will include its entire intra-regional business, which had been the greatest source of its revenue.
Investors were unhappy with the results, sending the stock down 15.6%. Let's take a closer look at the numbers from the quarter past.
|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|
It was a busy quarter as the Golden Pacer transaction rendered any financial comparison from the previous year almost moot. Presenting its financial results on an organic basis (meaning it strips out the effect of the divestitures), overall revenue actually jumped 58.3%, keeping pace with its revenue growth from the earlier quarter.
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