Uxin Limited (UXIN) Q1 Earnings call transcript Sep 23, 2025

Uxin, a leading used car dealer in China, recently held its first quarter fiscal year 2025 earnings conference call, providing insights into the company's latest financial and operational performance. The call, led by Founder and CEO Dai Kun and CFO Feng Lin, highlighted Uxin's impressive growth trajectory, strategic initiatives, and financial outlook.

Company Performance and Market Conditions

Despite ongoing challenges in the used car market due to price competition in the new car sector, Uxin managed to achieve retail sales of 4,090 units in the first quarter, representing a 31% sequential increase and an impressive 142% year-over-year growth. The company's inventory turnover efficiency remained strong, with inventory turnover days at approximately 30 days. Uxin's customer satisfaction also reached new heights, with a Net Promoter Score of 65, further solidifying its competitive advantage in the market.

Growth Strategies and Future Plans

Uxin is focusing on several key areas to drive continued growth. First, the company is increasing its inventory levels, aiming to expand them by 2x to 3x by the end of 2024. This will provide a wider selection of vehicles to meet customer demand and drive sales growth. Second, Uxin is acquiring more vehicles directly from individual car owners, placing it at the forefront of the supply chain and securing better pricing margins. Third, the company is enhancing its penetration of value-added services, expanding its network of superstores, and reconditioning centers. This strategy will further improve profit gross margins and strengthen Uxin's competitive edge.

Financial Outlook and Capital Management

Uxin's financial results for the first quarter showed a retail transaction volume of 4,090 units, representing a significant increase year-over-year. The total retail vehicle sales revenue was RMB 325 million, reflecting a 74% year-over-year increase. Despite market disruptions, Uxin anticipates further growth, with retail transaction volume expected to reach between 5,800 to 6,000 units in the second quarter, and adjusted EBITDA loss expected to narrow significantly. The company has also secured financing agreements to support its inventory growth and expansion plans.

Conclusion

Uxin's strong performance and strategic initiatives demonstrate its resilience and adaptability in the face of market challenges. The company's focus on inventory expansion, direct acquisitions from individual car owners, and value-added services will further enhance its competitive advantage and drive sustainable growth. As Uxin continues to navigate the used car market, its ability to capitalize on market trends and maintain customer satisfaction will be key to its long-term success.