UXIN Q3 2025 Earnings Call Summary

Retail Transaction Volume: 14,020 units, up 134% year-over-year and 35% quarter-over-quarter.
Retail Revenue: RMB 820 million, an 84% increase year-over-year and 35% quarter-over-quarter.
Average Selling Price (ASP): RMB 58,000, down from RMB 59,000 in the previous quarter and RMB 74,000 a year ago, reflecting a shift to a more affordable inventory mix.
Wholesale Transaction Volume: 1,884 units, an 81% increase year-over-year and 54% quarter-over-quarter.
Total Revenue: RMB 879 million, a 77% increase year-over-year and 34% quarter-over-quarter.
Gross Margin: 7.5%, the highest in three years, up from 7% a year ago and 5.2% in the prior quarter.
Adjusted EBITDA Loss: Narrowed to RMB 5.3 million, a 43% reduction year-over-year and 68% quarter-over-quarter.

Superstore Expansion: Three new superstores opened in 2025 (Wuhan, Zhengzhou, and Jinan), with plans for 4 to 6 additional openings in 2026.
Customer Satisfaction: Net Promoter Score (NPS) maintained at 67, the highest in the industry for six consecutive quarters.
Partnerships: Strategic collaborations with local governments in Tianjin, Guangzhou, and Yinchuan to develop new superstores, each with a capacity of over 3,000 vehicles.
Operational Efficiency: Continued improvement in pricing accuracy through machine learning, supporting high inventory turnover of around 30 days.

Q4 2025 Expectations: Retail transaction volume projected to exceed 18,500 units (over 110% year-over-year growth), with total revenue expected to surpass RMB 1.15 billion.
Full Year 2025 Forecast: Anticipated retail transaction volume to exceed 50,000 units, reflecting over 130% year-over-year growth.

Declining ASP: The average selling price has decreased due to a shift towards more affordable inventory, which could impact perceived brand value.
Market Competition: Although gross margins have improved, the company faces ongoing competition in the used car market, particularly from new car pricing stabilization.
Operational Risks: The ramp-up period for new superstores remains a challenge, with expectations for breakeven around 9 months and full capacity in 18-24 months.

Sustainability of Gross Margin: Management expressed confidence in maintaining the current gross margin level, citing stabilization in new car pricing and improvements in pricing accuracy.
Zhengzhou Superstore Performance: The rapid sales and profitability growth of the Zhengzhou Superstore was attributed to lessons learned from the Wuhan Superstore, enhancing operational efficiency.
Comparison with Carvana: Management highlighted differences in sales channels (offline vs. online) and emphasized their commitment to customer satisfaction, with a goal to achieve similar sales volumes to Carvana in the next 4-5 years.

This summary encapsulates the key points from Uxin's Q3 2025 earnings call, providing a balanced view of the company's performance and outlook.

UXIN — Uxin Limited