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Uxin Limited
6/12/2025
Ladies and gentlemen, thank you for standing by, and welcome to the Uxon's Earnings Conference Call for the quarter-ended March 31st of 2025. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the conference over to your host for today's conference call, Mr. Jack Wayne. Please go ahead, Jack.
Thank you, operator. Hello, everyone. Welcome to Yuxin's earnings call for the first quarter ended March 31st, 2025. On the call with me today, we have DK, our founder and CEO, and John Lin, our CFO. DK will reveal business operations and company highlights, followed by John, who will discuss financials and guidance. They will both be available to answer your questions during the Q&A session that follows. before we proceed i would like to remind you that this call may contain forward-looking statements which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations for detailed discussions of the risks and uncertainties please refer to our filings with the sec and now with that i will turn the call over to our ceo dk please go ahead sir
Hello, everyone. I'm very pleased to connect with all of you again on our earnings call.
And I want to thank you for joining us today. To facilitate a better communication with both our domestic and international investors, I will be sharing our updates in both Chinese and English.
In the first quarter of 2025, we achieved very good business progress. The sales volume of the quarter reached 7,545 units, which increased by 142% in the same period last year, again verifying that the business model has strong resilience and potential for growth. Even though the spring holiday period has probably lasted about half a month, we still maintain a high-speed vehicle rotation and a good storage structure in the cross-year environment. The vehicle's storage rotation speed is maintained at about 30 days.
In the first quarter of 2025, we achieved a strong operational performance with retail transaction volume reaching 7,545 units, up 142% year-over-year. This result, once again, demonstrates the resilience of our business model and its significant growth potential. Despite the typical seasonal slowdown during the Chinese New Year holiday, which impacted industry-wide activity for about two weeks, we maintained solid operational momentum. Our vehicle turnover remained high, and inventory management remained disciplined, with turnover days capped around 30. We also continued to deliver a best-in-class customer experience, achieving a net promoter score of 65, one of the highest in the industry. As our customer base continues to expand, we are seeing a growing brand recognition and a strengthening of our competitive position.
We have more than 15% market share in Xi'an and Hefei. In our two core markets, Xi'an and Hefei, our local market share has now exceeded 15%.
Both locations are showing robust growth and are well on track towards full operational maturity. This year, our priorities in these markets are to scale up inventory, drive further sales growth, and begin contributing positive cash flow to support the next phase of our business expansion.
新卖场的拓展也非常顺利。 武汉卖场已于今年2月份投入市营业。 武汉拥有1400万人口和将近500万台的汽车爆料。 汽车产业链非常发达,是中国的车股。 We also made meaningful progress in expanding our Superstore network.
Our new location in Wuhan began trial operations in February. With a population of 14 million and nearly 5 million registered vehicles, Wuhan is one of China's largest automotive hubs, often referred to as the nation's auto valley. Compared to Xi'an and Hefei, the used car market in Wuhan is notably more active, making it a strategic choice for introducing our large format used car retail model in central China.
With the accumulation of real-time operation data of Xi'an and Hefei, our price system is more flexible to adapt to the Wuhan market. Accurate pricing helps us to have competitiveness in both car sales and car sales, and can cut into the local market faster. In addition, the standardization of the entire factory, the management optimization of the personnel system, have also gradually formed in the past few years of operation, and have set a solid foundation for the new market to quickly enter the growth track.
Leveraging the operational experience and data insights we accumulated from our Xi'an and Hefei stores, our pricing engine has adapted smoothly to the Wuhan market. Accurate pricing allows us to stay competitive at both the sourcing and retail ends, accelerating our market penetration. Meanwhile, the standardized development of our reconditioning facilities and the continuous refinement of our staffing model, which we shaped over several years, have positioned the Wuhan store to scale efficiently from day one.
高品质的产品和专业的服务受到当地消费者的喜欢和认可。 武汉卖场是营业的这三个多月来,销量和库存持续爬升。 We are encouraged by the strong initial customer response.
Our high-quality vehicle inventory and professional customer service have been well received in the local market. Just over three months into trial operations, both sales and inventory at the Wuhan store have been ramping up steadily, with current retail volume already reaching approximately one-third of the combined sales of our two existing stores. Based on this momentum, we expect the Wuhan location to achieve profitability on an accelerated timeline compared to our previous stores.
In the meantime, we are also making solid progress in establishing new super stores in additional major cities.
We plan to open two to three new locations later this year. Together with the continued growth at our existing stores, these expansions are expected to further drive our operational and financial performance. For the second quarter, we're on track to exceed 10,000 retail vehicle sales, which would represent more than 140% year-over-year growth.
So with that, I'd like to turn the call over to our CFO to walk you through the financial results.
John, please.
Okay.
Thank you, DK. Hello, everyone. Since we have both domestic and international investors participating today, we will continue to present the company's performance in both Chinese and English to better communicate with all of you.
本季度我们的零售销量是7545台, 同去年同期相比增长非常的强劲, 同位增长142%, 受到春节假期的影响的环比下降12%, 这是一个非常正常的下滑,季节性的影响。
So in the first quarter, our retail transaction volume was 7,545 units, representing a very strong 142% year-over-year increase. On a sequential basis, however, retail transaction volume declined 12%, which reflects the typical seasonal slowdown associated with the Chinese New Year holiday.
本季度的零售收入总额是4.7亿人民币,同比增长73%,环比下降16%。 The average price of car sales is 8.6 million yuan from the same period last year, down to 6.2 million yuan this quarter. The increase in sales greatly minimizes the impact of car price decline on income. Our car storage satisfies the needs of most consumers. The average price of our single car is at a relatively reasonable level. We expect that ASP will continue to remain stable.
Retail revenue for the quarter was 470 million RMB, representing a 73% increase year-over-year and a 16% decrease quarter-over-quarter. The average selling price, or ASP, for retail vehicles was 62,000 RMB compared to 86,000 RMB in the same period last year. While the ASP declined due to our strategic focus on more affordable inventory structure, The strong growth in transaction volume more than offset the pricing impact and sustained our overall revenue expansion. Our current inventory structure is well aligned with the mainstream consumer demand, and we believe pricing has now stabilized at a rational level. As such, we expect ASP to remain relatively steady in the near term.
车辆批售方面,一季度的批售销量是719台, 同比下降23%,环比下降19% The total income of wholesale is 22,500,000 yuan. The total income of wholesale and wholesale in the first quarter is 5.04 billion yuan, which is 58% increase and 16% decrease.
Turning to our wholesale business, our wholesale transaction volume was 719 units in the first quarter, down 23% year-over-year and 19% quarter-over-quarter. Total wholesale revenue was 22.5 million RMB, Combining retail and wholesale, our total revenue for the quarter was 504 million RMB, representing a 58% increase year-over-year and a 16% decline sequentially.
本季度的毛利率是7%,较去年同期的6.6%,增长了0.4个百分点。 The course margin for the quarter was 7%, up 40 basis points from 6.6% a year ago, and consistent with the prior quarter.
We've maintained the stable margins over the last three quarters and given the healthy supply and demand and dynamics in our key markets, we see meaningful potential for further margin expansion as we scale.
Wuhan Xinmai factory has increased some expenses in terms of business and personnel preparation. This quarter, the EBITDA loss after adjustment is 8.9 million yuan, which is 78% less than before.
We did see a modest increase in operating expenses this quarter, primarily related to the initial ramp-up of our Wuhan Superstore, including investments in staffing and infrastructure. As a result, our adjusted EBITDA loss for the quarter was 8.9 million RMB. However, this still represented a significant 78% reduction compared to the same period last year.
Regarding the performance of the second quarter of 2025, we expect retail sales
We expect retail transaction volume to be in the range of 10,000 to 10,500 units, representing year-over-year growth of over 140%. Total revenue is expected to be between 630 million RMB
and 616 million RMB.
So that concludes our prepared remarks for today. Thank you, everyone. Operator, we are now ready to begin the Q&A session.
Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. And at this time, we'll pause momentarily to assemble our roster. And the first question will come from Fei Dai with TF Securities. Please go ahead.
Hello, Mr. Director. I'm Dai Fei, an engineer from Tianfeng Electronics Group. First of all, congratulations to the company. Congratulations on the strong retail sales results and the positive outlook. We can see that the new car market in China has recently entered another round of price wars. Could you share how this is impacting your used car business?
Thank you. 谢谢戴飞的提问,我来回答这个问题。 在同一品牌下,新轴车价下差在缩小的时候, 会对消费者的购买决策产生扰动。 Thanks for the question, Fei.
This is DK, and I'll answer that question. It's true that when the price gap between new and used vehicles narrows, especially under the same brand, it can influence consumer purchasing behavior. As such, the recent price competition in the new car market has created some pricing pressure on certain used vehicle segments. However, we've experienced similar cycles in the past, and over time, we've built a mature playbook to navigate these challenges and mitigate the impact.
First of all, it is through timely adjustment to ensure the speed of storage cycle. Our price radar can actually scan the whole network of vehicle price data. Once it detects changes in the deep car market, we can quickly adjust the price of the vehicle's storage for the corresponding brand. Ensure that the storage vehicle has sufficient price competitiveness. Fast sale to avoid significant stock price drop losses.
First, we respond swiftly through dynamic pricing to protect our inventory turnover. Our real-time pricing intelligence system continuously scans the broader market for price changes. Once shifts are detected, particularly in the new car segment, we promptly adjust pricing on relevant used car inventory to maintain competitiveness and accelerate sales. So this helps minimize any risk of inventory devaluation.
Second, we actively manage the structure of our inventory.
Nearly new vehicles, typically those under three years old, are more sensitive to fluctuations in new car pricing. In response, we maintain a balance and diversify the inventory mix to reduce our exposure to these highly sensitive models during times of volatility.
最后这一轮价格战主要集中在新能源车领域, 但现在大部分主机厂的经济水平就比较低了, 因此持续性的内卷不是一个良性的发展方式。 Lastly, it's worth noting that this current round of price competition is largely concentrated in the NEV segment.
Given that most automakers are already operating with very tight margins, We believe this level of price cutting is not sustainable. In fact, we've seen recent policy signals and commentary from official media channels in China advocating against prolonged excessive discounts. We view this pricing pressure as a short-term situation rather than a long-term structural shift. Overall, we believe the impact of current new car price war on our overall business remains manageable, and we are confident in our ability to achieve our growth objectives for the year. All right, that's our answer to your question. And I'll bring it up. Yeah, operator, hold on. We received another question from Mr. Gary Dvorak from Water Tower Research. We'll just take this opportunity to ask that as well. The question is, we saw data indicating that used NEV transactions in China grew over 20% year over year in Q1 this year. Can you share how much NEV is currently representing in your business mix and whether you have plans to increase your NEV exposure in the future? OK.
对,中国新能源汽车发展的浪潮确实处于加速状态,新车交易中新能源汽车的占比超过了50%,但是从存量的车辆上来看,全国3.5亿汽车保有量中新能源汽车的占比规模目前大概在109左右,还处于这个市场保有量的早期增长阶段。
Yes, this is DK, and I'll answer this question. You are right, China's NEV market is growing rapidly. In the new car segment, NEVs now account for over 50% of total sales. From a broader market perspective, NEVs currently represent about 9% of China's total vehicle population, which stands at around 350 million. This indicates that the NEV segment is still in the early stage of structural expansion with significant headroom for long-term growth.
我们也在持续跟踪新能源二手交易的数据 二手交易数据 根据汽车流动协会的最新统计 1到4月份新能源汽车二手车的交易大概在40万辆左右 约占中国二手车交易总量的7% 那么同比去年的增长了30% 那在公司的二手车零售业务中 1到4月份新能源的占比大概在109左右 较去年同期新能源零售量的增速超过100% 比全国二手车的大盘比例要高
We are actively tracking this trend in the used car space. According to the China Automobile Dealers Association, approximately 400,000 used NEVs were transacted nationwide from January through April, up more than 30% over a year, accounting for roughly 7% of total used car transactions. Ayushin NEVs accounted for approximately 9% of our retail unit sales from January through April of 2025, representing more than 100% year-over-year growth. This is above the national average and reflects both increasing demand and our ability to capture a meaningful share of this emerging segment.
During the vehicle procurement process, we have not seen any obvious effects on new energy vehicles. Our procurement, inspection, preparation, sales, and sales system have been perfected. Thank you.
With that said, we do not manage our inventory based on fuel type. Our sourcing, inspection, reconditioning, pricing, and sales systems are well established and technology driven. As long as a vehicle meets our quality standards, it will be listed in our inventory, regardless of its powertrain type. We fully embrace the structural evolution of China's auto market. As the EV market continues to expand, its share within our business will naturally increase. We are well prepared to support this transition and capture the long-term growth opportunities it will bring us. So that's the answer that we have for the question.
This will conclude our question and answer session. I would like to turn the conference back over to management for any closing remarks.
All right. Thank you all for joining us today. We look forward to speaking with you next quarter. Thank you.
Okay. Thank you. Bye-bye.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.