Uxin Limited (UXIN) Q2 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call indicates strong financial performance with a significant increase in transaction volume and revenue, improved gross profit margin, and reduced EBITDA losses. Despite competitive pressures and economic challenges, Uxin's strategic expansion with new superstores and long-term market optimism supports positive sentiment. The Q&A revealed confidence in market growth and strategic planning for inventory management, although some responses lacked clarity. The absence of a share repurchase program is neutral, but overall, the financial outlook and strategic initiatives suggest a positive stock price movement.
Key Financial Performance
Quarterly Retail Transaction Volume 6,005 units, representing a sequential increase of 47% and a year-over-year growth of 163%.
Total Retail Vehicle Sales Revenue RMB440 million, representing a sequential increase of 37% and a year-over-year increase of 79%.
Average Selling Price of Retail Vehicles Decreased from RMB109,000 in the same period last year to RMB74,000 this quarter.
Wholesale Transaction Volume 1,041 units, a sequential decrease of 31% and a year-over-year decrease of 35%.
Total Wholesale Vehicle Sales Revenue RMB37.8 million.
Total Revenues RMB497 million, representing a sequential increase of 24% and a year-over-year increase of 40%.
Gross Profit Margin 7%, an improvement from the previous quarter.
Adjusted EBITDA Loss RMB9.2 million, a reduction of 73% quarter-over-quarter and 80% reduction year-over-year.
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Operating Highlights
Gross Profit Margin: Gross profit margin expanded to 7%, marking a new high since transitioning to self-operated business.
Retail Transaction Volume: Quarterly retail transaction volume reached 6,005 units, representing a sequential increase of 47% and a year-over-year growth of 163%.
Sales Conversion Rate: Sales conversion rate of customers visiting stores exceeds 40%.
Net Promoter Score: Customer satisfaction remains at the highest level in the industry for 11 consecutive quarters with a Net Promoter Score of 66%.
New Superstores: Entered into agreements to open new superstores in Zhengzhou and Wuhan, expected to commence operations in 2025.
Market Share: Current market share in cities with superstores exceeds 15%, with plans to open several new superstores annually.
Inventory Turnover Days: Inventory turnover days maintained below 30 days, much lower than the industry average of 55-60 days.
Adjusted EBITDA Profitability: Achieved adjusted EBITDA profitability at the superstore level this quarter, on track for company-wide profitability in December.
Standardization Recognition: Named a corporate standard leader in China's used car industry by multiple government ministries.
Value-Added Services: Enhancing penetration of value-added services to contribute more to gross profit.
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Risk or Challenges
Market Growth Risks: The growth rate for both new and used car transactions in China has moderated, with used car transactions growing only about 5% year-over-year. This slowdown is attributed to fluctuations in the economic environment and price reductions in new cars, which have impacted consumer sentiment.
Inventory Management Challenges: The company is steadily increasing inventory levels to meet strong consumer demand, but there are concerns about balancing inventory levels with turnover rates. The management aims to maintain a 30-day inventory turnover rate even as inventory increases.
Regulatory and Competitive Pressures: The used car market in China is still in an early stage of development, and while the company has achieved significant growth, it faces competition from other used car companies and must navigate regulatory challenges.
Economic Factors: Fluctuations in the economic environment have suppressed consumer demand for cars, which poses a risk to future sales growth.
Operational Losses: The company anticipates normal operating losses during the first six months after opening new stores, which could impact financial performance in the short term.
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Guidance & Outlook
Retail Transaction Volume: Quarterly retail transaction volume reached 6,005 units, a sequential increase of 47% and a year-over-year growth of 163%.
Gross Profit Margin: Gross profit margin expanded to 7%, marking a new high since transitioning to a self-operated business.
Superstore Expansion: Entered into agreements for new superstores in Zhengzhou and Wuhan, expected to commence operations next year.
Customer Satisfaction: Customer satisfaction remains high with a Net Promoter Score of 66%.
Inventory Management: Steadily increasing inventory levels to meet strong consumer demand.
Adjusted EBITDA Profitability: Achieved adjusted EBITDA profitability at the superstore level this quarter.
Future Retail Transaction Volume: Anticipate retail transaction volume in the next quarter to be between 7,800 units and 8,100 units, representing a year-over-year increase of over 150%.
Revenue Projections: Total revenues projected to be between RMB560 million and RMB580 million for the fourth quarter.
Company-wide Adjusted EBITDA: Plan to achieve positive adjusted EBITDA for the company in the fourth quarter.
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Shareholder Return Plan
Adjusted EBITDA profitability: Achieved adjusted EBITDA profitability at the superstore level this quarter.
Future EBITDA expectations: Plan to achieve positive adjusted EBITDA for the company in the fourth quarter.
New store openings: New superstores in Zhengzhou and Wuhan expected to commence operations in 2025.
Inventory growth: Inventory levels have been steadily increasing, with a doubling from March to September.
Sales growth: Retail transaction volume reached 6,005 units, representing a year-over-year growth of 163%.
Revenue projections: Total revenues projected to be between RMB560 million and RMB580 million for the fourth quarter.
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Key Q&A
Q:Could you share whether the development of China's used car market is slowing down or not, the reasons behind the trend and your outlook for the market's future?
A:D.K. acknowledged a moderation in growth for both new and used car transactions in China, citing economic fluctuations and price reductions in new cars as contributing factors. However, he expressed confidence in the long-term prospects of the used car market, expecting double-digit growth in the coming years.
Q:Could you provide the timeline for the two new stores planned in Zhengzhou and Wuhan from construction to operating to achieving individual stores profitability?
A:John Lin stated that the Wuhan store is expected to open in the first half of 2025 and the Zhengzhou store in the second half of 2025. He mentioned that they expect these stores to reach breakeven within 6 to 12 months after opening.
Q:From a market demand perspective, how do you plan for upper limit of inventory levels in different cities? Will the 30-day turnover rate decrease as inventory increased?
A:D.K. explained that inventory planning is tied to local car ownership and targeted market share. He noted that they have been increasing inventory levels while maintaining a turnover rate of around 30 days, with sales growth outpacing inventory growth.
Q:Review of Unclear Management Responses
A:Management's response to the question about the impact of new stores on financial performance in 2025 lacked specific details regarding expected revenue or profit contributions.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
China car
DK
Foreign Language
Technology Ministry
Zhengzhou Wuhan
advantage
answer
base
capacity car
capital
car city
car ownership
car purchase
car transaction
city car
city vehicle
corporation agreement
decrease
demand
development
digit
expansion superstores
improvement
inventory capacity
level city
level market
limit inventory
line
market share
opening
ownership level
share city
store Zhengzhou
store month
superstores market
transaction process
trend
year
UXIN Transcript
Uxin Limited (UXIN) Q3 2025 Earnings Call Transcript
Positive12-18
The earnings call summary suggests strong growth in retail transaction volume and revenue, with improved profitability and gross margins. The Q&A section reinforced management's confidence in margin sustainability and expansion plans. While there are risks related to market conditions and strategic execution, the company's strategic partnerships and expansion plans are promising. The absence of unclear responses in the Q&A indicates transparency, and the optimistic guidance supports a positive sentiment. The overall sentiment leans positive, suggesting a likely stock price increase of 2% to 8% over the next two weeks.
Uxin Limited (UXIN) Q2 2025 Earnings Call Transcript
Positive9-29
The earnings call revealed strong retail transaction volume growth and revenue increase, despite challenges in the wholesale segment and ASP decline. The Q&A highlighted management's confidence in handling expansion and profitability pressures, with successful ramp-up of the Wuhan superstore and plans for further expansion. The positive sentiment is supported by strategic market presence and operational efficiencies, outweighing the short-term financial pressures and margin decline.
Uxin Limited (UXIN) First Quarter 2025 Earnings Call Transcript
Neutral6-12
Uxin Limited (UXIN) Q4 2024 Earnings Call Transcript
Positive4-30
Uxin's earnings call indicates strong performance with a significant increase in retail transaction volume and revenue, positive adjusted EBITDA, and improved financial position. The guidance for 2025 suggests continued growth. Despite macroeconomic headwinds and competitive pressures, management remains optimistic about the used-car market. The financing agreement further strengthens their position. However, concerns about regulatory dependencies and supply chain challenges persist. Overall, the positive financial metrics and optimistic guidance outweigh the risks, suggesting a positive stock price movement.
UXIN Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
