JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Investment Advisors

Uxin IPO Preview: Warning Lights Flashing

Uxin (优信) IPO First Glance: Better-Off As an Auto Financing Company

Investment Advisors, JL Warren Capital

Junheng Li

Equity Bottom-Up

<p>On December 6<sup>th</sup>, <a href="https://www.smartkarma.com/entities/27144" target="_blank" data-smartkarma-citation="entities:27144:1">Uxin Ltd (UXIN US)</a> released a press release about a non-binding, non-exclusive partnership with <a href="https://www.smartkarma.com/entities/787" target="_blank" data-smartkarma-citation="entities:787:1">Alibaba Group Holding (BABA US)</a> Taobao to jointly establish an online used car shopping mall. The partnership is open-ended with no exclusivity. Post announcement, Uxin established a storefront on Taobao.  As of today,  Taobao has hundreds of used car dealers listing vehicles on its platform, with indistinguishable store fronts and entries. Practically, Taobao traffic has little to do with car buyers.  <a href="https://www.smartkarma.com/entities/12004" target="_blank" data-smartkarma-citation="entities:12004:1">Bitauto Holdings Ltd Adr (BITA US)</a> + <a href="https://www.smartkarma.com/entities/446" target="_blank" data-smartkarma-citation="entities:446:1">JD.com Inc (ADR) (JD US)</a>  trial and failure is a perfect reference point.  For low-frequency and high price goods such as homes and cars, offline traffic is far more valuable than online traffic, measured by conversation rate.  </p>

On December 6th, Uxin Ltd (UXIN US) released a press release about a non-binding, non-exclusive partnership with Alibaba Group Holding (BABA US) Taobao to jointly establish an online used car shopping mall. The partnership is open-ended with no exclusivity. Post announcement, Uxin established a storefront on Taobao.  As of today,  Taobao has hundreds of used car dealers listing vehicles on its platform, with indistinguishable store fronts and entries. Practically, Taobao traffic has little to do with car buyers.  Bitauto Holdings Ltd Adr (BITA US) + JD.com Inc (ADR) (JD US)  trial and failure is a perfect reference point.  For low-frequency and high price goods such as homes and cars, offline traffic is far more valuable than online traffic, measured by conversation rate.  

UXIN: Unusual Trading Activities Before IPO Lockup Presents SHORT Opportunity