Uxin(US:UXIN)2025-09-29 13:00Financial Data and Key Metrics Changes - In Q2 2025, retail transaction volume reached 10,385 units, a 154% increase year over year and a 38% increase quarter over quarter, indicating strong growth in retail business [5][18] - Retail revenue totaled ¥610 million, up 87% year over year and 31% quarter over quarter, despite a decline in average selling price (ASP) to ¥59,000 from ¥62,000 in the prior quarter [19] - Gross margin for the quarter was 5.2%, down from 6.4% a year ago and 7% in the prior quarter, primarily due to price competition in the new car segment [22] - Adjusted EBITDA loss was ¥16.5 million, representing a 51% reduction year over year [24] Business Line Data and Key Metrics Changes - Wholesale transaction volume was 1,221 units, a 19% decrease year over year but a 70% increase quarter over quarter, with total wholesale revenue at RMB 29.9 million [21] - Total revenue for the quarter reached RMB 658 million, representing a 64% increase year over year and a 31% increase quarter over quarter [21] Market Data and Key Metrics Changes - The used car market in China has been affected by aggressive price competition in the new car segment, but recent government policies have moderated this competition [14] - The Wuhan superstore has shown significant margin improvement after six months of operation, with expectations for continued strong growth in retail transaction volume [14] Company Strategy and Development Direction - The company is focused on expanding its superstore model, with the recent opening of the Zhengzhou superstore, which is expected to strengthen market presence in Henan Province [13] - The company aims to enhance operational precision and efficiency through digital management systems and AI technology integration [10][11] - Future expansion plans target cities among the top 20 in China by vehicle ownership, indicating a strategic approach to market selection [46] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over 130% year-over-year growth in retail transaction volume for Q3 2025, with total revenue expected between RMB 830 million and RMB 860 million [25] - The company anticipates a recovery in gross margin to approximately 7.5% in the upcoming quarter [25] - Management emphasized the importance of balancing short-term profitability pressures with expansion needs, focusing on standardization and efficiency to mitigate early-stage losses [32] Other Important Information - The Wuhan superstore has ramped up operations successfully, benefiting from a refined digital management system and standardized business processes [38][42] - The company plans to rely on incremental equity financing to support rapid expansion over the next two to three years [34][35] Q&A Session Summary Question: How does the company balance short-term profitability pressures with expansion needs? Will additional financing be needed? - Management highlighted that each new superstore is carefully planned, and while there may be short-term profitability pressures, they focus on standardization and efficiency to reduce costs and accelerate breakeven [32][34] Question: What measures were taken in Wuhan to achieve rapid ramp-up compared to other locations? - Management attributed the success in Wuhan to a refined digital management system, standardized processes, and an experienced management team that accelerated production and sales execution [38][42] Question: How does management view the competitive landscape in Zhengzhou, and can success in Wuhan be replicated there? - Management acknowledged the intense competition in Zhengzhou but expressed confidence that their superstore model, with its broader selection and better value, can achieve strong results in the new market [44][46]