Shares of Uxin stock, a leading used car eCommerce platform in China, continued to fall today in the pre-market trading session even after the announcement of the unaudited financial results for the quarter ended on December 31, 2020. UXIN stock price saw a downtrend of 1.97% to drop at $1.99 a share as of this writing. UXIN stock was gloomy in the previous trading session and went down by 6.02% at closing. Let’s analyze the recently announced financial results of UXIN stock.
Uxin Financial Results:
Revenue of the Uxin stock for the three months ended December 31, 2020, were reduced to RMB322.9 million from RMB466.4 million in the same period of the previous year while the last quarter revenues were RMB76.4 million for Uxin stock. The revenue was recognized on a gross basis due to inventory owning model transformation by Uxin Limited.
The gross margin for the reported quarter was 2.9% as compared with 59.2% in the same quarter of last year and negative 22.4% in the last quarter. The significant decline in the gross profit as compared to the same period of the prior year is due to Uxin’s transformation into the inventory owning model. Uxin expects a rise in gross margin in the future.
Non-GAAP adjusted loss from continuing operations reduced to RMB162.5 million from RMB178.3 million in the last quarter and RMB576.5 million in the same quarter of the previous year.
Net loss for the UXIN stock was RMB172.9 million for the reported quarter as compared with RMB966.7 million in the same tenure of the previous year and RMB258.9 million in the last quarter.
Uxin Limited completed its transformation to inventory owning model and sold 99% of the transaction volume from its own inventory in the last three months of 2020 and started the work on building its first inspection and reconditioning center (IRC) in Xi’an.
Investors are responding to the unaudited financial results announced by the Uxin stock. It seems that the financial results were down as compared to the same period of the previous year, but the positive side is that Uxin Limited has completed its transformation to the inventory owning model. The management is pleased with the efforts of the staff and optimistic to serve its customers in a better way in the future.