Uxin Q1 Net Loss Narrows; Revenue Up 58%

Uxin Ltd., a used car retailer, reported a narrower net loss in Q1, with a net loss attributable to ordinary shareholders of RMB 53.07 million ($7.31 million), compared to RMB 1.93 million last year. Revenue increased 58% to RMB 504.23 million ($69.45 million). The company expects its retail transaction volume to range between 10,000 units and 10,500 units and total revenues to range between RMB630 million and RMB660 million for Q2. Uxin's stock is up 13.76% in pre-market trading.

Uxin Limited (NASDAQ: UXIN), a leading used car retailer in China, reported mixed financial results for the first quarter of 2025. Despite facing seasonal challenges, the company demonstrated significant year-over-year improvements in several key metrics.

Transaction volume for the quarter ended March 31, 2025, reached 8,264 units, down 12.4% quarter-over-quarter (QoQ) but up 103.6% year-over-year (YoY). Total revenues were RMB 504.2 million (US$ 69.5 million), decreasing 15.5% QoQ but increasing 58.0% YoY. The company maintained a 7.0% gross margin and reduced its operating loss to RMB 35.3 million (US$ 4.9 million). Retail transaction volume was 7,545 units, showing strong YoY growth of 141.5% despite seasonal impact from the Chinese New Year holiday. The company's new Wuhan superstore began operations, and management expects Q2 2025 retail transaction volume to exceed 10,000 units. Non-GAAP adjusted EBITDA showed a loss of RMB 8.9 million, improving 78% YoY. The company faces liquidity challenges with current liabilities exceeding assets by RMB 373.5 million but maintains confidence in meeting obligations through planned financings and operational improvements [1].

Uxin's Q1 2025 results present a mixed financial picture with significant YoY improvements alongside some QoQ challenges. The company delivered retail transaction volume of 7,545 units, representing an impressive 141.5% YoY growth despite declining 11.8% QoQ due to the Chinese New Year holiday impact. Revenue reached RMB 504.2 million (US$ 69.5 million), increasing 58.0% YoY but decreasing 15.5% QoQ. The gross margin held steady at 7.0%, showing a slight improvement from 6.6% in the same period last year, reflecting enhanced value-added services penetration. Notably, Uxin has significantly narrowed its losses. Operating loss decreased to RMB 35.3 million (US$ 4.9 million) from RMB 109.8 million in the prior year, while non-GAAP adjusted EBITDA loss improved dramatically to RMB 8.9 million (US$ 1.2 million) from a RMB 39.7 million loss YoY—a 78% reduction. This suggests the company's cost management strategies are bearing fruit. However, liquidity remains a concern. As of March 31, 2025, current liabilities exceeded current assets by approximately RMB 373.5 million, and the company has an accumulated deficit of RMB 19.6 billion. Management indicates they're addressing this through planned equity and debt financings alongside operational improvements [2].

The outlook is optimistic, with management projecting retail transaction volume to exceed 10,000 units in Q2 2025 and total revenues between RMB 630-660 million. The new Wuhan superstore represents a strategic expansion that should contribute to future growth despite initial setup costs affecting recent results. While Uxin is making substantial progress toward profitability, the significant debt position and negative working capital require careful monitoring. The company's ability to execute on planned financings will be critical to its long-term sustainability [3].

Uxin Limited's stock is up 13.76% in pre-market trading following the announcement. Despite the mixed financial results, investors remain optimistic about the company's growth prospects and strategic initiatives. The company's ability to navigate seasonal challenges and improve operational efficiency is a positive sign for its long-term viability [4].

References:
[1] https://www.stocktitan.net/news/UXIN/uxin-reports-unaudited-financial-results-for-the-quarter-ended-march-2hvy9ia6uhyi.html
[2] https://www.tipranks.com/news/company-announcements/uxin-reports-strong-q1-2025-results-amid-seasonal-challenges
[3] https://www.gurufocus.com/news/2912701/uxin-to-report-first-quarter-2025-financial-results-on-june-12-2025--uxin-stock-news
[4] https://www.marketscreener.com/quote/stock/UXIN-LIMITED-44403618/news/Uxin-Reports-Unaudited-Financial-Results-for-the-Quarter-Ended-March-31-2025-50222997/