Uxin(UXIN) - 2026 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q1 2025, the retail transaction volume reached 7,545 units, representing a 142% year-over-year increase, but a 12% decline sequentially due to seasonal slowdown [4][11] - Retail revenue for the quarter was RMB 470 million, a 73% increase year-over-year and a 16% decrease quarter-over-quarter [11] - The average selling price (ASP) for retail vehicles was RMB 62,000, down from RMB 86,000 in the same period last year, reflecting a strategic focus on more affordable inventory [12] - Total revenue for the quarter, combining retail and wholesale, was RMB 504 million, a 58% year-over-year increase and a 16% decline sequentially [13] - Gross margin for the quarter was 7%, up 40 basis points from 6.6% a year ago, indicating stable margins over the last three quarters [13] Business Line Data and Key Metrics Changes - The wholesale transaction volume was 719 units in Q1, down 23% year-over-year and 19% quarter-over-quarter [13] - The company expects retail transaction volume in Q2 2025 to be between 10,000 and 10,500 units, representing over 140% year-over-year growth [14] Market Data and Key Metrics Changes - In the two core markets, Xi'an and Hefei, local market share has exceeded 15%, with both locations showing robust growth [5] - The new superstore in Wuhan, which began trial operations in February, is expected to achieve profitability faster than previous stores due to strong initial customer response [8] Company Strategy and Development Direction - The company aims to scale up inventory, drive further sales growth, and begin contributing positive cash flow to support the next phase of business expansion in core markets [6] - Plans to open two to three new superstore locations later this year, alongside continued growth at existing stores, are expected to enhance operational and financial performance [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of price competition in the new car market on the used car business but believes the current pricing pressure is manageable and short-term [22] - The company is actively tracking the growth of the NEV segment, which currently represents about 9% of retail unit sales, with plans to increase exposure as the market expands [26][27] Other Important Information - The company has maintained a disciplined inventory management approach, with turnover days capped around 30 [5] - The net promoter score of 65 indicates a strong customer experience, one of the highest in the industry [5] Q&A Session Summary Question: Impact of new car price wars on used car business - Management noted that while price competition in the new car market creates some pressure on used vehicle pricing, the company has strategies in place to mitigate these impacts through dynamic pricing and inventory management [18][20][22] Question: NEV transactions growth and future plans - Management confirmed that NEVs accounted for approximately 9% of retail unit sales, reflecting over 100% year-over-year growth, and emphasized that the company does not manage inventory based on fuel type, allowing for flexibility in capturing market opportunities [25][26][27]