Uxin Ltd. (Nasdaq: UXIN) reported declined revenues for the year-end quarter, sending its shares down 2% by midday Thursday.
The Chinese used car dealer said in a statement today that in the three months through December its revenue was $49.5 million, down 31% year-over-year. Net loss narrowed to $26.5 million, or 2 cents per share, compared with $149.37 million a year ago.
However, Uxin highlighted the end of its transition, expected to turn the company's woes around.
“We are pleased to report that we have completed our strategic transformation into an inventory-owning model in the quarter ended December 31, 2020. This successful transition reflects our commitment and ongoing efforts to better serve our customers with our online products and services,” Kun Dai, the founder, chairman and chief executive officer of Uxin said in a statement.
Recently, Uxin announced a partnership with JD.com to launch a self-operated online store for used car transactions through JD’s platform. Under the deal, the partners will provide consumers with one-stop online used car purchase solutions including used car inspection, purchasing, insurance, and after sales services, and includes plans for joint development of data management, technology, inspection standards, and integrated supply chains in the used car business.
While China’s economy gradually recovered during the second half of 2020 and the used car market has been slowly picking up since April 2020, the Covid-19 pandemic is still evolving and its impact may continue to create significant challenges and uncertainties, Uxin added.
In July 2020, the company entered into a modified supplemental agreement with a financing partner to settle its remaining guarantee liabilities associated with historically facilitated loans in response to the current economic situation.
Looking ahead, Uxin said it expects to generate revenues in the range of 190 million yuan to 200 million yuan for the three months ended March 31, 2021. That will be a significant improvement from 104 million yuan in revenues reported for the same period of 2020.
Shares of Uxin were trading at $2.89 apiece as of midday.