Uxin(US:UXIN)2025-12-18 14:02Financial Data and Key Metrics Changes - Retail transaction volume reached 14,020 units, representing a 134% year-over-year increase and a 35% quarter-over-quarter increase, marking the sixth consecutive quarter of growth above 130% [4][13] - Retail revenue for the quarter totaled RMB 820 million, up 84% year-over-year and 35% quarter-over-quarter [14] - Gross margin improved to 7.5%, the highest level in the past three years, up 0.5 percentage points year-over-year and 2.3 percentage points quarter-over-quarter [16] - Adjusted EBITDA loss narrowed significantly to RMB 5.3 million, a 43% reduction year-over-year and a 68% reduction quarter-over-quarter [17] Business Line Data and Key Metrics Changes - Wholesale transaction volume was 1,884 units, representing an 81% year-over-year increase and a 54% quarter-over-quarter increase [15] - Total revenue combining retail and wholesale reached RMB 879 million, representing a 77% increase year-over-year and a 34% increase quarter-over-quarter [15] Market Data and Key Metrics Changes - The Wuhan superstore, which opened in February, is expected to reach nearly 1,800 retail units in December, with local market share approaching 10% [5] - The Zhengzhou superstore, opened in late September, is expected to achieve approximately 900 retail units in December, with market share nearing 5% [5] Company Strategy and Development Direction - The company is expanding its superstore network, having opened three new superstores in 2025, and plans to open four to six additional superstores in 2026 [7] - The company aims to scale its business model nationwide through improved pricing accuracy, customer satisfaction, and operational efficiency [8][9] - The long-term target gross margin is around 10%, with existing superstores already approaching this target [25] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained and rapid growth, expecting retail transaction volume to exceed 18,500 units in Q4 2025, representing over 110% year-over-year growth [10][18] - The company believes that stable market conditions will support continued growth, with expectations for total revenue to exceed RMB 1.15 billion in Q4 2025 [18] Other Important Information - The company has established strategic partnerships with local governments in Tianjin, Guangzhou, and Yinchuan to jointly invest in new used car superstores [7] Q&A Session Summary Question: Sustainability of the current gross margin level - Management indicated that the gross margin of 7.5% is supported by stabilized new car pricing and improved profitability at the Wuhan superstore, with expectations for further margin expansion due to reduced competition and improved pricing capabilities [21][22][23][25] Question: Performance of the Zhengzhou superstore compared to Wuhan - Management noted that the Zhengzhou superstore has achieved higher sales and profitability in a shorter time frame due to lessons learned from the Wuhan superstore and improved pricing capabilities [28][30][31] Question: Comparison with Carvana's model - Management highlighted differences in sales channels, with Uxin operating through both offline superstores and an online marketplace, while also noting similarities in inventory management and focus on customer satisfaction [32][33][34][36]