Uxin(UXIN)2024-09-23 14:25Financial Data and Key Metrics - Retail sales for Q1 2025 reached 4,090 units, a 31% sequential increase and 142% year-over-year growth [4] - Total retail vehicle sales revenue was RMB325 million, a 74% year-over-year increase [10] - Average selling price (ASP) of retail vehicles decreased from RMB111,000 to RMB79,000 year-over-year [10] - Wholesale transaction volume was 1,515 units, a 3% year-over-year decline, with wholesale revenue of RMB63.9 million [11] - Gross margin remained stable at 6.4% [11] - Adjusted EBITDA loss was RMB33.9 million, a reduction of RMB5.9 million sequentially and RMB12.8 million year-over-year [11] Business Line Performance - Retail sales growth driven by increased inventory levels and improved market conditions [15] - Over 60% of vehicles acquired directly from private owners, enhancing supply chain efficiency and pricing margins [7] - Expansion of high-margin value-added services such as financing, insurance, and extended warranties [7] Market Performance - Nationwide used car sales increased by 6.4% year-over-year, indicating market recovery [9] - Inventory turnover days remained healthy at approximately 30 days, significantly faster than the industry average of 55-60 days [4][23] Strategic Direction and Industry Competition - Company plans to increase inventory levels by 2-3 times by the end of 2024 to meet growing consumer demand [6] - Strategic partnerships with local governments, including a new superstore in Zhengzhou, to expand market presence [8] - Focus on enhancing customer satisfaction, with Net Promoter Score (NPS) reaching 65, the highest in the industry for nine consecutive quarters [5] Management Commentary on Operating Environment and Future Outlook - Management expects retail transaction volume to reach 5,800-6,000 units in Q2 2025, representing over 40% sequential growth [12] - Adjusted EBITDA loss is anticipated to narrow to under RMB10 million in Q2 2025, with positive adjusted EBITDA expected in Q3 2025 [12] - Secured a $7.5 million financing agreement with Dida to support inventory expansion and future growth [12] Other Important Information - Company achieved a significant reduction in fixed monthly expenses compared to the same period last year [18] - New superstores in other regions will be supported by local government investment and internal capital [18] Q&A Session Summary Question: Factors driving strong retail sales growth and sustainability - Three key factors: recovery in the used car market, improved brand presence and service capabilities, and proactive inventory expansion [15] - Sales growth expected to remain strong, with inventory planned to increase by 1-2 times by year-end [16] Question: Financial management plans and cash position - Operating cash flow has improved, and new investments secured to enhance liquidity [17] - Primary focus on increasing retail inventory, with inventory levels steadily rising to fuel sales growth [17] - Additional financing plans in progress to support future business expansion [18] Question: Observations on market conditions and consumer demand for used cars - Price wars in the new car market have eased, leading to a rebound in used car demand [22] - Lower vehicle prices have opened up a broader market, with consumers increasingly viewing used cars as a high-value option [22]