This article only represents the author's own views.

Uxin Ltd. (UXIN.US) certainly has an interesting long-term story to tell, as it seeks to become an equivalent of U.S. giants Carvana (CVNA.US) and Carmax (KMX.US) in China’s vast but highly fragmented used car market. The company’s latest set of results showed its superstore business model has delivered some initial success. But in the shorter-term, the company is also facing headwinds from a rapidly dwindling cash pile that could slow or even halt its transformation if a carefully choreographed financing plan doesn’t develop on schedule.

Like many of its peers in China’s auto industry, Uxin struggled last year under strict Covid-control measures that included lockdowns of entire cities to keep the virus in check. China finally abandoned its “zero Covid” strategy about a month ago, but not before wreaking havoc on its many consumer-facing sectors as outbreaks grew in October and November.