(Yicai Global) April 17 -- Shares of Uxin plunged 36 percent even as the Chinese used-car platform rebuffed a short-seller's allegations and conclusion that the Nasdaq-lted company "uninvestable.">/n/n/n/n/nThe company's shares [NASDAQ:UXIN] pulled back from a 52-week low of USD1.41 today to close at USD1.95 each.
Uxin accused Hong Kong-based research firm J Capital Research of suing a mleading report yesterday. Uxin believes the sharp decline in its stock price was directly related to the report's publication and strongly denied data fraud and a series of unfounded allegations, the Beijing-based company said in a statement today.
The Chinese firm said the report "contains errors of facts, mleading speculations and malicious interpretations of events." It went on to say that it "believes that the allegations in the report are completely without merit, and strongly condemns the publhing of false and mleading information."
J Capital Research analyst Anne Stevenson-Yang made a number of allegations against Uxin in the report. She claimed the firm exaggerated transaction volumes by 40 percent, had not dclosed debt to US investors, artificially elevated sold vehicle prices to hike loan values, counted third-party transactions as its own revenue using a special point of sales machine, and overstated inventory.
The report also accused Uxin founder Dai Kun of enriching himself through hidden insider selling before and after the company's initial public offering.
"Uxin so dhonest that we would not know how to attach a valuation," Stevenson-Yang wrote in the report. "We urge Uxin shareholders to race to the exits."
Firmly denying that it had falsified sales data, Uxin said Dai, who also chairman and chief executive, "also confirmed that he had never voluntarily sold any shares in Uxin as alleged in the report."
Uxin will provide fair and transparent dclosure to investors after carefully reviewing the report to rebut any false claims that attempt to undermine confidence in Uxin's business, management and operations, the statement added.
For the last quarter of 2018, Uxin's revenue surged almost 62 percent to USD165.6 million from a year earlier, according to the firm's latest quarterly report.