Uxin(UXIN) - 2026 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In 2025, retail transaction volume reached 51,110 units, up 135% year-over-year, marking the second consecutive year of over 130% growth [7] - Total revenues for 2025 were CNY 3.24 billion, representing a 79% increase year-over-year [7][25] - Gross margin for the fourth quarter was 6.8%, down 0.7 percentage points from the previous quarter [22] - Adjusted EBITDA loss for the full year was CNY 57.9 million, narrowing by 28% year-over-year [28] Business Line Data and Key Metrics Changes - Retail revenue for the fourth quarter was CNY 1.129 billion, up 38% sequentially and 104% year-over-year [20] - Wholesale revenue for the fourth quarter was CNY 38.2 million, with wholesale transaction volume reaching 2,474 units, up 31% sequentially and 180% year-over-year [21] - The company opened three new superstores in 2025, with mature superstores achieving over 20% market share in their respective cities [8] Market Data and Key Metrics Changes - In 2025, used car transaction volume in China exceeded 20 million units, accounting for approximately 5.5% of total vehicle ownership [4] - The national average transaction price of used cars has started to recover since the fourth quarter of last year, with expectations for retail ASP to exceed CNY 61,000 in the first quarter of 2026 [39] Company Strategy and Development Direction - Uxin is redefining used car transactions through a modern retail approach, leveraging advanced self-operated reconditioning factories and a one-stop purchasing experience [6] - 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][31] - Uxin aims to address consumer pain points in the used car industry, focusing on transparency, fair pricing, and reliable after-sales support [5] Management's Comments on Operating Environment and Future Outlook - Management noted that the modernization of China's used car industry has just begun, with significant market opportunities ahead [14] - The company expects retail transaction volume to grow by over 110% year-over-year in the first quarter of 2026, despite the seasonally soft period due to the Chinese New Year [29] - Management anticipates that more stable new car pricing will support used car prices in 2026 [40] Other Important Information - Uxin's Net Promoter Score has reached 67, indicating high customer satisfaction and brand reputation [12] - The company has established a scalable operating system that can be replicated across regions, enhancing its growth potential [8] Q&A Session Summary Question: Gross margin outlook and ASP trends for 2026 - Management indicated that gross margin is expected to recover and return to above 7% as new superstores mature, with ASP expected to show a stable to upward trend in 2026 [36][40] Question: Customer acquisition channels for new superstores - Customer acquisition for new superstores leverages brand recognition, marketing campaigns, and partnerships with local governments and automotive platforms [42][45] Question: 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 [53][55]