Shares of Uxin Limited (NASDAQ: UXIN), a leading used car retailer in China, plummeted 5.05% in Thursday's trading session following the release of its unaudited financial results for the quarter ended March 31, 2025. The significant drop reflects investors' concerns over the company's mixed performance and recent financing activities.

While Uxin reported a substantial year-over-year increase in retail vehicle transaction volume and revenue, there were several factors that likely contributed to the negative market reaction. The company's total revenues of RMB504.2 million (US$69.5 million) for Q1 2025 represented a 15.5% decrease from the previous quarter, despite showing a 58.0% increase year-over-year. Additionally, Uxin reported a net loss of RMB51.4 million (US$7.1 million) for the quarter.

The market's response may also be influenced by Uxin's recent financing activities and changes in its debt structure. The company disclosed that it had entered into share subscription agreements with investors, including NIO Capital, and made changes to its borrowing arrangements. While these moves aim to strengthen Uxin's financial position, they may have raised concerns about potential dilution and the company's ongoing capital needs.