UXIN — Uxin Limited

Uxin Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Retail Transaction Volume: 19,160 units, a 124% increase year-over-year and a 37% sequential increase.
• Total Retail Revenue: RMB 1.129 billion, up 104% year-over-year and 38% sequentially.
• Average Selling Price (ASP): Decreased to RMB 59,000 from RMB 65,000 year-over-year but slightly increased from RMB 58,000 in the previous quarter.
• Wholesale Transaction Volume: 2,474 units, a 180% year-over-year increase.
• Total Revenue: RMB 1.198 billion for Q4, representing a 101% year-over-year increase.
• Gross Margin: 6.8%, down from 7.5% in the previous quarter, attributed to new store ramp-up and market pressures.
• Adjusted EBITDA Loss: RMB 27.2 million for Q4; full year loss narrowed to RMB 57.9 million, improving by 28% year-over-year.

2. Strategic Updates and Business Highlights

• Uxin's retail transaction volume for the full year reached 51,110 units, marking a 135% increase.
• The company opened three new superstores in 2025 and plans to open 4-6 more in 2026, expanding its nationwide footprint.
• Uxin is leveraging its advanced reconditioning factory to ensure vehicle quality and enhance customer experience, aiming to redefine used car transactions in China.
• The company has achieved a Net Promoter Score of 67, indicating strong customer satisfaction and brand reputation.

3. Forward Guidance and Outlook

• For Q1 2026, Uxin expects retail transaction volume between 16,200 and 16,500 units, representing over 110% year-over-year growth.
• Total revenue for Q1 2026 is projected between RMB 1.05 billion and RMB 1.07 billion.
• For the full year 2026, Uxin anticipates over 100% growth in both retail transaction volume and revenue, supported by the expansion of existing and new superstores.

4. Bad News, Challenges, or Points of Concern

• Gross Margin Pressure: The decline in gross margin is attributed to competitive pricing strategies for new stores and promotional activities in the new car market.
• Increased Operating Expenses: Higher costs due to the ramp-up of new superstores, impacting profitability in the short term.
• Market Competition: Intense price competition in the new car market continues to challenge the used car sector.

5. Notable Q&A Insights

• Management indicated that new superstores typically take 6-9 months to reach mature store gross margin levels, and they expect overall gross margins to recover above 7% in 2026.
• ASP trends are stabilizing, with expectations for a slight increase due to improving market conditions and reduced competition.
• Customer acquisition for new superstores leverages Uxin's established brand recognition, targeted marketing, and partnerships with local governments and automotive platforms to drive traffic and sales.

This summary encapsulates Uxin's financial performance, strategic initiatives, future outlook, and challenges faced during the quarter, providing a balanced view of the company's current position and prospects.