Uxin Limited Q3 FY2025 earnings call

• Third quarter saw continued strong growth momentum with retail transaction volume up 134% y - o - y. Inventory turnover remained at around 30 days. Customer satisfaction NPS was 67, sustaining above 65 for 6 consecutive quarters.
• Superstore network expansion progressed smoothly. Jinan Superstore commenced operations, and Wuhan and Zhengzhou Superstores opened as planned. Wuhan Superstore expected to reach nearly 1,800 retail units in December with local market share near 10%; Zhengzhou Superstore, 3 months old, expected to have ~900 retail units in December with market share near 5% and faster ramp - up than Wuhan.
• Announced strategic partnerships with local governments in Tianjin, Guangzhou and Yinchuan for new used car superstores. Plan to open 4 - 6 additional superstores in 2026.
• Core capabilities include: machine learning - based pricing system improving with expanded retail scale; large - scale superstores enhancing customer experience; fully integrated factory logistics retail operating model driving operational efficiency.

In the third quarter of 2025, retail transaction volume reached 14,020 units, a 134% year - over - year increase. Retail revenue for the quarter totaled RMB 820 million, accounting for approximately 93.3% of the total revenue. Wholesale transaction volume was 1,884 units, an 81% year - over - year increase. Total wholesale revenue was RMB 33.2 million, accounting for approximately 3.8% of the total revenue. Gross margin for the quarter was 7.5%, the highest level in the past 3 years.

• Fourth quarter: expect retail transaction volume to exceed 18,500 units, a year - over - year growth of over 110%; total revenue expected to exceed RMB 1.15 billion.
• Full year 2025: expect retail transaction volume to exceed 50,000 units, a year - over - year growth of over 130%.

Q: How does management view the sustainability of the current margin level and what factors could further drive margin improvement going forward?

A: This quarter's gross margin was 7.5%. Two main drivers of improvement: new car pricing stabilized and new Wuhan Superstore's profitability improved. Further margin expansion room: vehicle prices expected to remain stable or trend upward with industry policies; data - driven pricing capabilities continue to improve; value - added services have significant penetration upside. Long - term target gross margin is around 10%.

Q: Following the opening of the Zhengzhou Superstore, both sales and profitability ramp up seems to be faster than what we saw in Wuhan. Could management share what key initiatives drove this outperformance? And looking ahead, how long do you expect the newly opened superstores to take to reach stable operations?

A: Zhengzhou Superstore outperformed due to learning from Wuhan in construction, launch, inventory build and sales ramp - up, making organization and operating systems run more smoothly, and larger real transaction data pool improving pricing capability. Expect a new superstore with planned capacity of ~3,000 vehicles to reach breakeven in about 9 months and reach mature and stable level in 18 - 24 months.

Q: U.S. used car company, Carvana recently surpassed $100 billion market cap. Could management comment on the key similarities and difference between Carvana's model and Uxin's?

A: Differences: sales channel - Carvana sells online, Uxin operates through offline superstores and online marketplace with over 70% sales from offline. Similarities: both operate under own inventory model with large - scale reconditioning; focus on precise pricing; prioritize customer satisfaction. Uxin is confident of sustaining over 100% y - o - y sales growth in next several years and reaching Carvana's current sales volume within 4 - 5 years.