Uxin Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Retail Transaction Volume: 16,530 units, up 119% year-over-year.

Retail Vehicle Sales Revenue: RMB 1.01 billion, up 118% year-over-year, down 10% sequentially.

Average Selling Price (ASP): RMB 61,000, stable compared to previous quarters.

Wholesale Transaction Volume: 1,681 units, up 134% year-over-year, down 32% sequentially.

Total Revenue: RMB 1.074 billion, up 113% year-over-year, down 10% sequentially.

Gross Margin: 7%, stable compared to previous year and quarter.

Adjusted EBITDA Loss: RMB 34.3 million, increased from RMB 27.2 million in the previous quarter.

2Strategic Updates and Business Highlights

Uxin opened its first superstore in North China (Tianjin) in March, bringing total superstores to six.

Strategic partnerships with local governments in Chongqing and Shijiazhuang to expand superstore operations.

Continued strong customer satisfaction with a net promoter score of 68.

The company emphasized its superstore model's resilience and adaptability during market fluctuations.

3Forward Guidance and Outlook

For Q2 2026, Uxin expects retail transaction volume to exceed 18,000 units, maintaining a year-over-year growth target of over 100% for the full year.

Total revenue for Q2 is projected between RMB 1.05 billion and RMB 1.1 billion.

4Bad News, Challenges, or Points of Concern

The Chinese automotive market is experiencing a slowdown, with new vehicle sales down 20% year-over-year in early 2026, impacting used car prices.

Used car prices for mainstream ICE vehicles have dropped by 10%-15%, creating short-term pressure on profitability.

Uxin anticipates greater pressure on gross margins in Q2 due to market volatility and pricing adjustments.

The company remains cautious about operations, prioritizing inventory turnover over short-term margin optimization.

5Notable Q&A Insights

Management explained the expected decline in sales volume in Q2 due to significant drops in ICE vehicle sales starting in April.

The ramp-up period for new superstores has improved, with new locations achieving higher sales volumes faster than earlier stores.

Uxin plans to open 4-6 new superstores in 2026 despite market volatility, emphasizing a flexible approach to expansion based on market conditions.

The discussion highlighted that the current pricing adjustments in the used car market are seen as a necessary reset towards more sustainable values, potentially benefiting long-term market dynamics.