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][13] - Retail revenue totaled RMB 610 million, an increase of 87% year-over-year and 31% quarter-over-quarter [14] - 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 [16] - Adjusted EBITDA loss was RMB 16.5 million, a 51% reduction year-over-year [17] - For the third quarter, retail transaction volume is expected to be between 13,500 and 14,000 units, with total revenue projected between RMB 830 million and RMB 860 million [18] Business Line Data and Key Metrics Changes - Retail revenue growth was driven by a shift towards a more affordable inventory mix, with the average selling price (ASP) for retail vehicles at RMB 59,000, down from RMB 62,000 in the prior quarter [14] - Wholesale transaction volume was 1,221 units, representing a 19% decrease year-over-year but a 70% increase quarter-over-quarter [15] 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 [10] - The Zhengzhou superstore opened in a major transportation hub with a population of over 13 million, enhancing market presence in Henan Province [9] Company Strategy and Development Direction - The company is focused on expanding its superstore model, with the recent opening of the Zhengzhou superstore being part of a strategic plan to strengthen market presence [9][10] - The integration of AI technologies into business operations is being explored to enhance efficiency and scalability [8] - The company emphasizes careful planning for new store openings to balance profitability pressures with expansion needs [22] Management's Comments on Operating Environment and Future Outlook - Management expects retail transaction volume to maintain strong growth, projecting over 120% year-over-year growth for the third quarter and approximately 130% for the full year 2025 [10][18] - The company is confident in its ability to raise sufficient capital to support its expansion plans, given its consistent growth and early signs of recovery in capital markets [25] Other Important Information - The Wuhan superstore has shown rapid growth and operational maturity, with a significant reduction in startup losses compared to other locations [6][10] - The company has established a standardized management and operating system to facilitate the rapid ramp-up of new locations [5][7] Q&A Session Summary Question: How does the company balance short-term profitability pressures with expansion needs? - Management emphasized that expansion is carefully planned and that they focus on raising standardization and efficiency to mitigate early-stage cost pressures [22][24] Question: What measures were taken in Wuhan to achieve faster ramp-up compared to other locations? - The CEO highlighted the maturity of the digital management system and standardized business processes as key factors in the successful ramp-up of the Wuhan superstore [27][30] Question: How does management view the competitive landscape in Zhengzhou? - Management acknowledged the intense competition but expressed confidence in their differentiated superstore model and the ability to replicate success from Wuhan [32][35]