Chinese business-to-business and business-to-consumer used auto marketplace Uxin (Nasdaq: XIN) saw revenues jump by 33% year-over-year in Q3 2019. The increase was driven by a 246% jump in b-to-c transaction revenue, to over $46 million U.S., as the company’s inter-regional logistics network, which was launched last year, continues to pay dividends.
According to a press release from the company, b-to-c transaction volume increased to 23,566 units in Q3, up 107.3% year-over-year. Likewise, b-to-b transaction volume decreased to 30,658 units, representing a year-over-year decline of 66.6%, as Uxin continues its “shift of strategic focus” towards its b-to-c. Net losses were cut to just over $38 million U.S., cut by over 40% from Q3 2018.
“As China’s leading online used car dealer, through our online virtual inventory system connecting over 20,000 used car suppliers across China, we are able to provide consumers with a wider selection of used cars and better prices by directly matching the diversified used car demand and nationwide supply in a highly efficient manner, no matter where the consumer lives or where the inventory is located,” said Kun Dai, CEO at Uxin. “This, coupled with our one-stop online purchasing experience and high-quality professional customer services, has increasingly reinforced our value propositions that differentiate us in the market and strengthened our monetization ability.”
Uxin also confirmed the divestiture of its financing facilitation business, which accounted for more than half of the company’s revenue, to financial technology platform Golden Pacer. Golden Pacer’s majority shareholder is classified giant 58.com (NYSE: WUBA), which made a $100 million U.S. investment in Uxin in late May.
In Sept., Uxin announced that COO William Peng has resigned “due to his pursuit of other career interests in the investment area.” Peng’s exit marks the second time that Uxin has shaken up its senior executives in just the past six months.
In Aug., Uxin’s plans to raise over 670 million RMB ($97 million U.S.) through a pair of asset-backed securities (ABS) were scuppered. Uxin first announced the plan to package up outstanding loans issued through its used auto financing and financial leasing businesses in late 2018, but a July 29 deadline for renewing the one of the ABS applications (valued at 300 million RMB) has now passed, while the second ABS — to be jointly issued with Huatai Securities and Tencent — has yet to materialize.