Uxin Ltd. Q1 FY2025 earnings call

• Strong retail sales momentum: Retail sales for the quarter were 4,090 units, up 31% sequentially and 142% year-over-year. Inventory turnover days were approximately 30 days. • Improved customer satisfaction: Net Promoter Score reached 65, up from around 60 in previous quarters. • Key growth areas: Steadily increasing inventory levels, with expectation to increase inventory to 2-3 times年初规模 by end of 2024; increasing proportion of vehicles acquired from individual car owners (over 60% currently); enhancing value-added services like financing, insurance, etc. • Superstore network expansion: Reached a strategic partnership with Zhengzhou local government to establish a new superstore, and expecting 1-2 more strategic partnerships with local governments soon.

In the first quarter of fiscal year 2025 (April to June 2024), the superstore operations were a key segment. Retail sales were 4,090 units, representing a 31% sequential increase and 142% year-over-year growth. Retail vehicle sales revenue was RMB325 million. Wholesale transaction volume was 1,515 units with total wholesale vehicle sales revenue of RMB63.9 million. Total revenues for the quarter were RMB401 million. Retail sales revenue contributed approximately 81% of the total revenues, while wholesale contributed around 16%.

• Q2 2025 (July-September 2024) retail transaction volume expected to be between 5,800 to 6,000 units, representing over 40% sequential growth. Total revenues expected between RMB480 million and RMB500 million. • Adjusted EBITDA loss expected to narrow significantly to under RMB10 million in Q2. Confident in achieving positive adjusted EBITDA in Q3 (October-December 2024). • Secured a $7.5 million financing agreement with Dida, with primary focus on increasing inventory in the near term.

• Market disruptions due to aggressive pricing competition in the new car market which initially impacted the used car market. • Relatively low cash position as of June 30, though management has plans to address through financing and cost management.

Q: Can you elaborate on the specific factors driving the strong retail sales growth and do you think this growth rate is sustainable?

A: Three key factors: overall used car market recovery as new car price wars eased; matured operations leading to stronger presence and higher sales conversion rates; proactive inventory expansion. Growth rate is expected to remain strong with inventory increase and market recovery.

Q: The company's cash position as of June 30 is relatively low. Could you provide more detail on your financial management plans and how you will support future business growth?

A: Operating cash flow has improved. Secured $7.5 million financing from Dida. Primary focus on boosting inventory levels. Implemented cost saving initiatives. New superstores will be supported by local government investment and own capital. Confident in improving cash position.

Q: Can you share more about your recent observations on market conditions and how consumer demand for used cars has been evolving in the current economic environment?

A: New car price wars have been intense with sales growth for new cars in first half of 2024 at ~5% and popular models having price cuts up to 30%. Lower used car prices have opened broader market for consumers. Our integrated model meets consumer needs, with fast inventory turnover (30 days vs industry 55-60 days) and high customer satisfaction.