Uxin(US:UXIN)2025-09-29 13:02Financial Data and Key Metrics Changes - Retail transaction volume reached 10,385 units, up 154% year over year and 38% quarter over quarter, indicating strong growth [4][14] - Retail revenue totaled ¥610 million, an increase of 87% year over year and 31% quarter over quarter, demonstrating robust revenue expansion despite a decline in average selling price (ASP) [15][16] - 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 [17] - Adjusted EBITDA loss was ¥16.5 million, representing a 51% reduction year over year, reflecting improved operational efficiency [18] Business Line Data and Key Metrics Changes - The wholesale transaction volume was 1,221 units, representing a 19% decrease year over year but a 70% increase quarter over quarter [16] - Total revenue combining retail and wholesale reached ¥658 million, a 64% increase year over year and 31% increase quarter over quarter [16] Market Data and Key Metrics Changes - The company opened its Zhengzhou superstore, which is expected to strengthen its market presence in Henan Province, a region with over 13 million residents and significant used car transaction activity [9][10] - The competitive environment in Zhengzhou is intense, with several dealers having advanced operating practices and large inventories [37] Company Strategy and Development Direction - The company is focused on expanding its superstore model, which has shown strong performance in cities like Wuhan, and aims to replicate this success in new locations [5][39] - The integration of AI technologies into business operations is being explored to enhance efficiency and scalability [8] - The company plans to rely on measured incremental equity financing to support rapid expansion over the next two to three years [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the retail transaction volume growth trajectory, expecting over 130% year-over-year growth in the third quarter [10][20] - The company anticipates a recovery in gross margin to approximately 7.5% in the upcoming quarter [20] - Management noted that the aggressive price competition in the new car segment has moderated, which is expected to positively impact the used car market [10] Other Important Information - The company has established a standardized management and operating system in its superstores, which facilitates rapid ramp-up and operational efficiency [5][7] - The Wuhan superstore has shown significant early success, with a smaller startup loss compared to other locations [6] Q&A Session Summary Question: How does the company balance short-term profitability pressures with expansion needs? Will additional financing be required? - Management emphasized that expansion is carefully planned and that they focus on raising standardization and efficiency to mitigate short-term profitability pressures. They plan to rely on incremental equity financing to support expansion [24][25][26][27] Question: What measures contributed to the rapid ramp-up of the Wuhan superstore? - Management highlighted the refined digital business management system, standardized business processes, and experienced management team as key factors in the successful ramp-up of the Wuhan superstore [30][32][35] Question: How does management view the competitive landscape in Zhengzhou and the potential for replicating success? - Management acknowledged the intense competition in Zhengzhou but expressed confidence in their superstore model's differentiation and the potential for strong results based on their mature business processes [37][39]