Uxin Stock Falls On Q4 Earnings, Dwindling Transaction Volume

Uxin Ltd UXIN reported fourth-quarter FY21 revenue growth of 88.6% year-on-year to $29.9 million.
The transaction volume was lower by 74% Y/Y to 1,719 units, down 49% sequentially.
Revenue from the sale of used cars from its September inventory drove the growth partially offset by the decrease in retail transaction volume and GMV due to its business model transformation.
Revenue for Retail vehicle sales was $19.0 million, Wholesale vehicles were $7.8 million, and Other was $3.1 million.
The company posted a positive 4.6% gross margin following the adoption of the inventory-owning model and different revenue and cost recognition.
Uxin clocked an EPS loss of $(0.02) and ended Q4 with $35.7 million in cash and equivalents.
The company posted another solid performance for the quarter despite a slower quarter in the Chinese domestic used car market due to the Chinese New Year holiday and working capital constraints.
Outlook: Uxin sees Q1 revenue of RMB260 million - RMB280 million.
Price action: UXIN shares traded lower by 4.11% at $3.62 on the last check Friday.

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