Uxin sees 'malicious interpretations of events' in J Capital Research report
Uxin issued a statement in response to yesterday's trading activity. Uxin said, "The Company believes the unusual stock trading activities were caused by a report published by J Capital Research on April 16, 2019, which contains errors of facts, misleading speculations and malicious interpretations of events. Uxin believes that the allegations in the report are completely without merit, and strongly condemns the publishing of false and misleading information. The Company firmly denies the baseless allegations that it has falsified any sales data. Kun Dai, the Founder, Chairman and Chief Executive Officer of Uxin, also confirmed that he had never voluntarily sold any shares in Uxin as alleged in the report. The Company is carefully reviewing the report and will provide additional information on the allegations as appropriate. Uxin is committed to providing fair and transparent disclosure to investors and to rebutting any false claims that attempt to undermine confidence in Uxin's business, management and operations." Shares of Uxin closed yesterday down 36%, or $1.10, to $1.95. J Capital Research, as reported yesterday morning by The Fly, claimed the company, among other things, exaggerates the volume of auto sales its processes by as much as 40% and has financial statements that "show a staggering level of debt that puts the company at risk of collapse."