The stock of Uxin Limited (UXIN) gained in the pre-market after the company announced their unaudited financial results of the 2nd quarter for the fiscal year 2022. The stock valued at around $1.82 in the pre-market at the time of this writing. This is a gain of more than 8.33% from the previously closed value. At the end of the last trading session the stock closed at $1.68. The volume of the stock traded in the last trading session was around 1.56 million shares.
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Financial Highlights of the 2nd quarter ended on 30th September, 2021:
- The no of units sold in the 2nd quarter were higher than the 1st quarter of the fiscal year 2022 and the same quarter of last year. This year the no of units sold was 3,648 as compared to the 1ar quarter’s 3,011. In the same quarter of last year they sold around 2,653.
- The revenue of the 2nd quarter increased by 24.5% if compared to the 1st quarter of fiscal year 2022. The revenue of the 2nd quarter was RMB345.9 million or US$53.7 million. The revenue of the 1st quarter was RMB277.8 million. The revenue of the same quarter of the last year was RMB76.4 million.
- The gross margin also saw a slight gain in the 2nd quarter. It increased to 4.2% from the 1st quarter’s 4.0%. The gross margin was -22.4% in the 2nd quarter of last year.
- The loss from continuing operations in the 2nd quarter was reported to be RMB45.9 million or US$7.1 million. In the 1st quarter and 2nd quarter of last year it was RMB 50.7 million and RMB162.6 million respectively.
- The non-GAAP loss from continuing operations in the 2nd quarter was reported to be RMB43.2 million or US$6.7 million. In the 1st quarter and 2nd quarter of last year it was RMB44.6 million and RMB178.3 million respectively.
Effect on the stock:
After announcing their unaudited results for the 2nd quarter of fiscal year 2022 the company’s stock increased in the pre-market. Investors were looking forward to the improved numbers and business expansion strategies and new inflow of funding. That will make them to enhance their operations.
Conclusion:
The company is following a business expansion strategy and increasing their business. in such strategy the companies might observe a low gross margin or net income/loss. But it helps them to expand in the market and increase their market share and number of customers. The company has forecasted that they are expecting revenue of RMB480 to RMB500 for the three quarters ending on 31st December, 2021.
