Renren Inc. (NYSE: RENN) announced its unaudited financial results for the six months ended June 30 recently.
The Beijing-based used car platform said in a statement that its total net revenues were $41.2 million, representing an 80.9% decrease from the last year. Net loss reached $16.6 million, the company added, in contrast to a net income of $67.7 million in the same period in 2019.
Renren said the Covid-19 influences the company's used-car dealership business.
Moreover, the company’s subsidiary Kaixin Auto Holdings (Nasdaq: KXIN) was announced that it entered into a binding term sheet with Haitaoche Limited in November.
Looking forward Rehren said it expects to generate revenues between $8 million to $12 million in the second half of 2020. And Kaixin Auto Holdings having decided to put a halt to its used-car dealership business operations, which is the reason cause the drop in the revenue.
The company used to operate China’s once-popular Facebook-like social network, renren.com, and has shifted to an auto business last year. It also has businesses outside of China, including the Trucker Path app and its SaaS business in the U.S.
On the day of the announcement, Renren closed at $4.77 on Thursday, down 7.19%. As of early Monday trading, the stock had risen, only to fall back to $4.77 per share in the first hour of trading.