Uxin Limited Q2 FY2025 earnings call

• Retail transaction volume up 154% YOY to 10,385 units, fifth consecutive quarter with Y/Y growth >140%. • Inventory turnover ~30 days, Net Promoter Score 65 for 5 consecutive quarters. • Wuhan superstore opened end of February performed well, with retail inventory starting at 250 units in March and expected to reach ~1,400 by September. • Continued to improve digital management systems using real transaction data. • Optimizing service workflows and refining talent development framework. • Opened Zhengzhou superstore, fourth large-scale superstore, serving Central China market.

In the second quarter of 2025, retail transaction volume reached 10,385 units, up 154% year-over-year. Retail revenue totaled RMB 610 million, up 87% year-over-year. Wholesale transaction volume was 1,221 units, down 19% year-over-year but up 70% quarter-over-quarter. Total revenue for the quarter was RMB 658 million, up 64% year-over-year. Gross margin was 5.2%, down from previous periods. Retail ASP was RMB 59,000, down from prior quarters due to inventory mix shift.

• Third quarter 2025: Retail transaction volume expected 13,500-14,000 units (+130% YOY), total revenue between RMB 830-860 million, gross margin to recover to ~7.5%. • Full year 2025: Anticipate retail transaction volume growth of approximately 130% YOY.

• Margin pressure from new car price wars and early-stage ramp-up of new superstores. • Potential challenges in replicating success across all new superstores uniformly.

Q: Congratulations on the company's strong sales momentum and continued high growth trajectory. With new superstores opening at such rapid pace, how do you balance short-term profitability pressures with your expansion needs? Will you need additional financing?

A: The rapid rollout of new superstores is strategically important. We focus on standardization and high-quality replication. New superstores typically require ~USD 8-10 million, and we plan to use measured incremental equity financing to support expansion over 2-3 years, confident in raising sufficient capital.

Q: The management mentioned earlier that the Wuhan superstore has ramped up very successfully much faster than Hefei and Xi'an. Could you share what differentiation measures were taken in Wuhan?

A: Three reasons: refined digital business management system from Xi'an and Hefei, which is mature and replicable; standardized business processes and established organizational/talent development systems; the digital systems benefited from a flywheel effect with real transaction data, adapting effectively to the Wuhan market.