China-based used car e-commerce company Uxin’s (UXIN) financials for its last-reported quarter were unimpressive because the company underwent a business model transition. However, last month it announced a strategic partnership with JD.com (NASDAQ:JD). So, let’s find out if the stock now has the potential to advance in the near-term.Headquartered in Beijing, China, used car e-commerce platform operator Uxin Limited’s (NASDAQ:UXIN) shares hit a $9.87 high in December 2018. It has declined sharply since then and closed yesterday’s trading session at $2.80. The company announced on April 22 that it had forged a strategic partnership with JD.com, Inc. (JD) to launch a self-operated online store for used car transactions through JD’s platform. So far the move has failed to generate much investor enthusiasm.
The company has undertaken several transitions over the past few years—from selling its loan facilitation business to at one point focusing on cross-regional transactions—but none has yet boosted the business.
Also last month, UXIN announced that it had completed its strategic transformation into an inventory-owning model, which it began in its fiscal year 2021 third quarter, ended December 31. Nevertheless, its financials for the quarter were disappointing.