Uxin Limited Q4 FY2025 earnings call

• Retail transaction volume in Q3 2025 was 14,020 units, 134% y/y increase, sixth consecutive quarter above 130% y/y growth. Inventory turnover 30 days. NPS 67, sustaining 65+ for 6 quarters. Gross margin 7.5%, highest in 3 years.
• Superstore network expansion: Jinan Superstore commenced ops, 3 new superstores opened in 2025. Wuhan Superstore to reach ~1,800 retail units in Dec, market share near 10%; Zhengzhou to reach ~900 retail units in Dec, market share near 5%. Now 5 superstores in operation. Announced partnerships with local govts in Tianjin, Guangzhou, Yinchuan for new superstores, plan 4-6 more in 2026.
• Machine learning-based pricing system ensures competitive pricing. Fully integrated factory-logistics-retail model for end-to-end control.

Retail revenue in the third quarter totaled RMB 820 million, up 84% year-over-year. Wholesale transaction volume was 1,884 units, an 81% increase year-over-year. Total wholesale revenue for the quarter reached RMB 879 million, a 77% increase year-over-year. Gross margin for both segments was 7.5%, the highest in 3 years. Retail revenue contribution: RMB 820 million, wholesale revenue contribution: RMB 879 million.

• Fourth quarter retail transaction volume expected to exceed 18,500 units, >110% y/y growth. Full year 2025 retail transaction volume expected to surpass 50,000 units, >130% y/y growth. - Fourth quarter 2025 total revenue expected to exceed RMB 1.15 billion.

Q: Congratulations on the 3-year high in gross margin. How does management view the sustainability of this level, and what factors could drive further improvement?

A: Two main drivers: new car pricing stabilized and Wuhan Superstore profitability improved. Still room for expansion; policies reducing excessive competition, data-driven pricing reducing errors, value-added services penetration upside. Long-term target gross margin ~10%, Xi'an and Hefei stores approaching it.

Q: Following the opening of Zhengzhou, ramp-up seems faster than Wuhan. What initiatives drove this? Also, how long do you expect new superstores to take to reach stable operations?

A: Zhengzhou benefited from learnings in Wuhan on construction, inventory build, sales ramp-up. Larger transaction data improved pricing capability. Standard 3,000-vehicle capacity superstore expected to breakeven in ~9 months, reach planned capacity in 18-24 months for mature profitability.