As Uxin Moves to Complete Loan Business Divestiture, Management Shaken Up

The auto marketplace announced the resignation of its CSO, who was in charge of the loan business that's being split off to Golden Pacer.

CapitalWatch Staff
    Dec 02, 2019 1:20 PM  PT
As Uxin Moves to Complete Loan Business Divestiture, Management Shaken Up
author: CapitalWatch Staff   

Uxin Ltd. (Nasdaq: UXIN) is going through yet another senior management change related to the divestiture of its loan facilitation business, according to its announcement on Monday.

The Chinese used car marketplace said in a statement today that its chief strategy officer, Wenbing Jing, who mainly supervised the loan facilitation operations, has left the company "for personal reasons."

That's another major shift in Uxin's management personnel since September, when its then-chief operating officer, William Peng, resigned in "pursuit of other career interests in the investment area."

The auto marketplace, which posted strong results for the third quarter last week, has been shifting away from facilitating loans at a time challenging for China's financing sector. In a deal first announced in July, the company has arranged to divest its 2C intra-regional business to Golden Pacer, a Chinese fintech platform.

Uxin will divest the corresponding assets and liabilities, in return getting $100 million and certain preferred shares of Golden Pacer, a stake of 18.4%, according to various official reports.

The deal is scheduled to close by the end of this year, Uxin said.

Last week, Uxin reported $65.2 million in revenue for the third quarter, up 33% year-over-year, and losses of $37.8 million.

The company faces class action lawsuits from a number of U.S. investors' rights litigators which claim that Uxin filed misleading registration documents during its IPO proceedings and caused damages to investors. After its debut in June 2018, the stock in Uxin has been trading near a third of its initial offering price of $9 per share.

On Monday, the stock in Uxin closed up nearly 3% on the day, at $2.56 per American depositary share.