|Over a month ago|
Uxin signs supplemental agreements with Golden Pacer to divest loan business » 06:4404/2304/23/20
Uxin entered into…
Uxin entered into supplemental agreements with Golden Pacer, a financial technology platform in China, to modify and supplement certain terms and conditions in connection with the divestiture of Uxin's loan facilitation related business. The company had entered into a binding term sheet and definitive agreements with Golden Pacer relating to the divestiture. Due to a series of regulations in relation to loan facilitation, lending and debt collection promulgated by relevant authorities in 4Q19 as well as the outbreak of COVID-19 in January 2020, the delinquency rate as well as collection and repossession rate have been adversely affected. The company has divested its entire 2C intra-regional business to Golden Pacer, and ceased to provide loan facilitation related guarantee services in connection with its 2C cross-regional business since November 2019. In addition, the company has agreed to transfer the assets and liabilities in relation to the loans previously facilitated for XW Bank before the divestiture to Golden Pacer, completed in 4Q19. Accordingly, the company is no longer subject to guarantee obligations in relation to its historically-facilitated loans associated with XW Bank. Upon Golden Pacer's achievement of certain profitability-related performance targets for FY20 and FY21, the company is entitled to purchase a certain amount of preferred shares of Golden Pacer in 2020 and 2021, representing up to an aggregate of 18.4% of Golden Pacer's outstanding shares. In addition, the company will be entitled to receive 85% of net cash inflow generated by the divested and transferred assets and liabilities from Golden Pacer in relation to the historically-facilitated loans for XW Bank.
|Over a quarter ago|
Uxin to sell its B2B business to 58.com for $105M » 08:4903/2403/24/20
Uxin Limited announced…
Uxin Limited announced that it entered into definitive agreements with 58.com, China's largest online classifieds and an existing investor in Uxin, to sell its B2B business. Pursuant to the definitive agreements, the Company will sell its entire B2B online used car auction business and transfer corresponding assets and liabilities to an affiliate of 58.com for a total cash consideration of $105 million, which may be slightly adjusted subject to the review of the transferred assets following the completion of the transaction. The Company agrees not to engage in or acquire any B2B used car auction business following the completion of the transaction without prior consent from 58.com. The transactions contemplated under the definitive agreements are subject to customary closing conditions, and are currently expected to close by the first half of 2020.
Uxin takes active measures in response to Covid-19 » 05:5003/0203/02/20
Uxin outlined the active…
Uxin outlined the active measures it has taken to adapt its business and ensure business continuity in response to the evolving situation associated with the outbreak of COVID-19 in China. The used car sector in China has been severely affected by the outbreak of COVID-19 with disruptions impacting industry infrastructure and several key points along the supply chain. Despite the impact, the used car industry is gradually recovering though it will take some time before operations return to normal. In order to contain the outbreak, local governments have required people to work remotely and refrain from going outside, which has created considerable barriers to buying used cars. At the same time, local vehicle registration and management bureaus have yet to resume full operations which has created bottlenecks for used car title transfers. Logistics and delivery of used cars has also been challenging as roads and highways in some regions remain closed to general traffic. This has significantly hindered the fulfillment of used car transactions. Following the outbreak, Uxin has been carefully monitoring the situation and thoroughly analyzing the impact it will have on industry in order to adapt its business and ensure business continuity and long-term growth prospects. The company has implemented a series of measures to ensure the safety and health of its staff and business, including enacting a temporary work-load based staffing program company-wide and allowing staff to work remotely, securing its cashflow and financial position, and upgrading its purely online products and services to gradually begin growing transaction volumes again. The measures are widely understood and supported by staff and have already brought operating expenses under careful control. With all the measures in place, the company is also steadily pushing forward the closing of several ongoing transaction projects. Together with the management team and employees, the company has revealed common persistence and solidarity when facing current challenges.
Uxin appoints Zhitian Zhang as COO » 07:3202/1202/12/20
Uxin announced the…
Uxin announced the appointment of Zhitian Zhang, who previously served as President of Uxin's online used car transaction business, to COO, effective February 11, 2020. Zhang joined Uxin in April 2012 as General Manager of the Sales Management Center.
Uxin signs agreements with Boche to divest salvage car business » 06:0601/1601/16/20
Uxin entered into…
Uxin entered into definitive agreements with Beijing Hengtai Boche to divest its salvage car related business operated under the brand "Fairlubo". Pursuant to the definitive agreements, the company will divest its salvage car auction business to Boche in exchange for an aggregate amount of RMB330M in cash. The company agrees not to engage in the salvage car auction business for a period of five years. The transactions contemplated under the definitive agreements are subject to certain closing conditions, and are currently expected to close in the first half of 2020.
Uxin announces resignation of Chief Strategy Officer Wenbing Jing » 06:3212/0212/02/19
Uxin announced that…
Uxin announced that Wenbing Jing has resigned as the company's Chief Strategy Officer, effective December 1, for personal reasons. During his tenure with the company, Jing mainly oversaw the company's loan facilitation business, which is currently in the process of being divested as announced by the company in July, September and November.
GIC reports 5.01% passive stake in Uxin » 16:1010/2510/25/19
GIC disclosed a 5.01%…
GIC disclosed a 5.01% stake in Uxin, which represents over 42.0M shares. The filing does not allow for activism.
JPMorgan downgrades Uxin to Neutral on pushout of profitability » 10:4710/2310/23/19
JPMorgan analyst Alex Yao…
JPMorgan analyst Alex Yao earlier today downgraded Uxin to Neutral from Overweight with a price target of $2.30, down from $6. The stock in morning trading is down 2% to $2.68. The divestiture of Uxin's loan facilitation business, while reducing the company's financial risk exposure, will potentially delay its path to profitability by up to six quarters, Yao tells investors in a research note. Since the company's initial public offering, Uxin has been continuously reshaping its business structure, adds the analyst. Yao is concerned that Uxin will continue to face challenges and uncertainties given the "weak" market environment. He expects the share price to be under pressure in the near term.
Uxin downgraded to Neutral from Overweight at JPMorgan » 05:1910/2310/23/19
JPMorgan analyst Alex Yao…
JPMorgan analyst Alex Yao downgraded Uxin to Neutral from Overweight with a $2.30 price target.
Uxin to divest loan facilitation related business in cash and stock deal » 09:4809/3009/30/19
Uxin Limited announced it…
Uxin Limited announced it entered into definitive agreements with Golden Pacer, a financial technology platform in China, to divest its loan facilitation related business. Previously on July 12, the company announced that it had entered into a binding term sheet with Golden Pacer relating to the divestiture. Pursuant to the definitive agreements, the Company will divest its entire 2C intra-regional business to Golden Pacer, and cease to provide guarantee services in connection with its 2C cross-regional business going forward, and thus divest the corresponding assets and liabilities. In return, the company will receive an aggregate of $100M cash from Golden Pacer and certain preferred shares of Golden Pacer representing approximately 18.4% of the share capital of Golden Pacer on a fully diluted basis. The company will have the right to appoint one director on Golden Pacer's board of directors. The transactions contemplated under the definitive agreements are subject to certain closing conditions, and are currently expected to close by the end of 2019.The company's board of directors, acting upon the unanimous recommendation of its Audit Committee consisting of independent and disinterested directors, approved the definitive agreements and the transactions contemplated thereunder. The Audit Committee reviewed and considered the terms of the definitive agreements and the transactions with the assistance of its financial and legal advisors.