Online Chinese used car dealer Uxin (NASDAQ:UXIN) jumped 25%, bouncing off its all-time low in the previous session. The company, once valued at over $2.5 billion, is still trading at a market capitalization under $300 million after the jump.
Shares of Uxin are down almost 60% since the start of 2020, and almost 90% since it's IPO in 2018. After hitting a low of $0.78 at Monday's close, the shares rebounded to close Tuesday at $0.98 per share.
Uxin said today it will announce quarterly results for its fiscal first quarter 2021 period ending June 30, 2020 next week. The company recently changed its fiscal year-end date from December 31 to March 31 after a change in its business model last year. Uxin sold its loan facilitation business, which has been a drag on revenue for what investors once identified as a growth company.
Uxin said that while it believes that auto financing helps facilitate the desire to buy a used car, the required loan guarantees as a facilitator put pressure on cash flow. The company says that with those liabilities behind it, "We have evolved from a financing-oriented platform to a transaction-centric online used car dealer."
In 2020, the company removed all historical loan guarantee obligations. With the transition period complete and the stock bouncing off its historical low, investors may be looking toward next week's earnings for some good news with the new business model for this once-promising online platform.