China’s Uxin reported Q4 2018 results
Uxin (UXIN), China’s largest used car e-commerce platform, announced its fourth-quarter earnings results on March 14 before the market opened. It was the company’s third quarterly report since its ADS (American Depositary Share) was listed on NASDAQ in June 2018. Before we explore other key highlights of Uxin’s earnings event, let’s take a quick look at its December 2018 quarter losses and investors’ reaction.
Investors’ negative reaction
In the fourth quarter of 2018, Uxin’s adjusted net loss improved to 242.2 million Chinese yuan (or $35.3 million) from 483.1 million yuan in the fourth quarter of 2017. In the third quarter of 2018, the company reported a much wider adjusted net loss of 517.0 million Chinese yuan, or $75.2 million.
For 2018, Uxin reported an adjusted net loss of 1,671.3 million yuan or $243.5 million, which reflected only a minor improvement from its adjusted net loss of 1,696.1 million yuan in 2017. Investors’ expectations of a curator improvement in the company’s bottom line could be one of the factors that triggered a sell-off in its stock after the earnings release.
On March 14, NIO (NIO), Kandi (KNDI), Baidu (BIDU), Tencent Holdings (TCEHY), Tencent Music (TME), Alibaba (BABA), and JD.com (JD), other Chinese companies (MCHI), fell by 7.7%, 3.4%, 0.3%, 0.3%, 1.2%, 0.2%, and 0.9%, respectively.
In this series, we will take a look at key highlights of Uxin’s fourth quarter of 2018 earnings report. We’ll also explore the company’s first-quarter guidance. Towards the end of the series, we’ll learn about Wall Street analysts’ ratings on Uxin after its fourth-quarter results.
We’ll begin by looking at Uxin’s fourth-quarter revenues.