Uxin Ltd (NASDAQ: UXIN) stock surged 15.20% on December 19th, 2018 (Source: Google finance) after the company a press release from the company detailing a successful start to its new marketplace on Alibaba ‘s online marketplace called Taobao.
Uxin facilitated more than 2,000 used-car transactions on the company’s new Uxin Taobao Marketplace store during the first 18 hours of Taobao’s Double 12 Shopping Festival. The news follows an announcement last week of Uxin’s collaboration with the Alibaba subsidiary . A partnership between the two companies would not only bring Uxin’s used car sales to the Taobao platform, but it would include post-transaction services, financing options, consumer protection policies, and a collaboration for an improved supply chain.
Meanwhile, Total revenues for the third quarter of 2018 increased by 59.6% to RMB863.7 million (US$125.5 million) from RMB541.1 million in the same period last year, primarily due to the increases in transaction volume, amount of loans facilitated and take rate. Revenue of the 2C business increased to RMB612.2 million in the three months ended September 30, 2018, representing growth of 108.7% from RMB293.3 million in the same period last year.
Gross margin was 64.7% in the third quarter of 2018, compared to 63.8% in the same period last year.
Loss from operations for the third quarter of 2018 was RMB542.7 million (US$78.9 million), compared to RMB523.0 million in the same period last year. Loss from operations excluding the impact of share-based compensation expenses of RMB77.0 million was RMB465.7 million.
Fair value change of derivative liabilities was nil for the third quarter of 2018, compared to a loss of RMB237.9 million for the third quarter of 2017. The impact of derivative liabilities would no longer exist going forward as the preferred shares were converted into ordinary shares at the time of IPO.
Net loss for the third quarter of 2018 was RMB594.0 million (US$86.3 million), compared to net loss of RMB765.9 million in the third quarter of 2017, primarily due to the decrease of loss from fair value change of derivative liabilities. As of September 30, 2018, the Company had cash and cash equivalents of RMB677.1 million (US$98.4 million), and restricted cash of RMB1,838.4 million (US$267.2 million).
In addition, the board of directors of the Company recently has approved the increase of the maximum number of shares available for issuance pursuant to all awards under its 2018 Amended and Restated Share Incentive Plan (the “2018 Plan”) by 14,297,163 Class A ordinary shares, representing 1.5% of the total number of outstanding ordinary shares on a fully-diluted basis.
For the fourth quarter of 2018, Uxin expects total revenues to be in the range of RMB1.02 billion to RMB1.06 billion.