Uxin(US:UXIN)2025-06-12 13:02Financial Data and Key Metrics Changes - In Q1 2025, the company achieved a retail transaction volume of 7,545 units, representing a 142% year-over-year increase, but a 12% decline sequentially due to seasonal slowdown [5][12] - Retail revenue for the quarter was RMB 470 million, a 73% increase year-over-year and a 16% decrease quarter-over-quarter [12] - 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 [13] - Total revenue for the quarter, combining retail and wholesale, was RMB 504 million, a 58% year-over-year increase and a 16% decline sequentially [14] - 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 [14] 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 [14] - 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 [15] Market Data and Key Metrics Changes - The company has expanded its market presence in Xi'an and Hefei, with local market share exceeding 15% [6] - The new store in Wuhan, a significant automotive hub, has shown strong initial customer response, with retail volume reaching approximately 1/3 of the combined sales of the two existing stores [9][10] Company Strategy and Development Direction - The company aims to scale up inventory and drive further sales growth in its core markets while contributing positive cash flow to support business expansion [7] - Plans to open two to three new superstore locations later this year are in place, alongside continued growth at existing stores [10][11] 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 [19][22] - The company is actively tracking the growth of the NEV segment, which currently represents about 9% of its retail unit sales, reflecting over 100% year-over-year growth [26][27] Other Important Information - The company has maintained a disciplined inventory management approach, with turnover days capped around 30 [6] - The net promoter score of 65 indicates a strong customer experience, one of the highest in the industry [6] 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, they have a mature strategy to navigate these challenges and maintain inventory turnover [19][20][22] Question: NEV transactions growth and future plans - Management confirmed that NEVs accounted for approximately 9% of retail unit sales, with plans to embrace the structural evolution of the auto market as EVs continue to expand [25][27]