Uxin(UXIN) - 2026 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q4 2025, retail transaction volume reached 19,160 units, a 37% sequential increase and a 124% year-over-year increase, significantly outperforming the overall China used car market which grew approximately 6% year-over-year [18][19] - Total retail revenue for Q4 was CNY 1.129 billion, up 38% sequentially and 104% year-over-year, while average selling price (ASP) for retail vehicles decreased from CNY 65,000 to CNY 59,000 year-over-year but increased slightly from CNY 58,000 in the previous quarter [20] - Full year 2025 retail transaction volume totaled 51,110 units, a 135% year-over-year increase, with total revenue reaching CNY 3.24 billion, a 79% increase year-over-year [24] Business Line Data and Key Metrics Changes - The company opened three new superstores in 2025, establishing a scalable operating system, with mature superstores in Xi'an and Hefei achieving over 20% market share [8][24] - On the wholesale side, 2,474 units were sold in Q4, up 31% sequentially and 180% year-over-year, with wholesale revenue for the quarter at CNY 38.2 million [21] Market Data and Key Metrics Changes - China's vehicle ownership has approached 370 million units, with used car transaction volume exceeding 20 million units in 2025, accounting for approximately 5.5% of total vehicle ownership [4][5] - The company expects that as the percentage of used car transactions rises towards the 10%-15% level typical in mature markets, annual used car transaction volume could reach 35 million-50 million units [4] Company Strategy and Development Direction - Uxin is redefining used car transactions through a modern retail approach, leveraging self-operated reconditioning factories and a one-stop purchasing experience [6][10] - The company plans to open four to six additional superstores in 2026, aiming for over 100% year-over-year growth in both retail transaction volume and revenues [13][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the modernization of China's used car industry is just beginning, with Uxin positioned to benefit from significant market opportunities [14] - The company expects retail ASP to show a stable to upward trend in 2026, supported by more stable new car pricing and anticipated growth in retail transaction volume [38] Other Important Information - The gross margin for Q4 was 6.8%, down from 7.5% in the previous quarter, primarily due to the ramp-up of newly opened superstores and promotional activities in the new car market [22] - Adjusted EBITDA loss for the full year was CNY 57.9 million, narrowing by 28% year-over-year, with SG&A and R&D expenses improving to 13.9% of total revenue [27][28] Q&A Session Summary Question: How should we think about gross margin growth into 2026 and ASP? - Management indicated that gross margin declined due to the ramp-up of new superstores but has begun to recover, expecting it to return above 7% [35] - ASP is expected to exceed CNY 61,000 in Q1 2026, with a stable to upward trend anticipated for the year [37][38] Question: What are the customer acquisition channels for new superstores? - Customer acquisition for new superstores comes from brand recognition, marketing campaigns, and partnerships with local governments and automotive platforms [42][46] Question: What is the long-term store expansion potential across China? - Management expressed confidence in long-term expansion potential, estimating over 200 cities in China could support Uxin superstores, with a goal of having more than 10 stores operational by the end of 2026 [52][54]