Uxin Limited Q4 FY2026 earnings call

• China's vehicle ownership has approached 370 million units, and the second - hand car transaction volume exceeded 20 million units in 2025, but is still below the level of mature markets. Consumers have higher requirements for product services and experiences. • Yuxin is redefining used car transactions through a modern retail approach, leveraging advanced self - operated reconditioning factories, offline super stores and online marketplace. • In 2025, retail sales reached 51,100 units, an increase of 135% year - on - year, and total revenue reached 3.2 billion yuan, an increase of 79% year - on - year. Opened three new super stores in Wuhan, Zhengzhou and Jinan. • Built pricing capability with large amounts of real transaction data, and an innovative factory - warehousing - retail integrated business model with each super store supported by a reconditioning factory. • Net promoter score reached 67, and customer satisfaction and reputation are at industry - leading levels.

In 2025, the company's retail transaction volume reached 51,110 units, an increase of 135% year - on - year, and total revenue was 3.24 billion yuan, an increase of 79% year - on - year. In the fourth quarter of 2025, retail transaction volume was 19,160 units, a 37% sequential increase and a 124% increase year - on - year. Retail revenue for the quarter was 1.129 billion yuan, a 38% sequential increase and a 104% increase year - on - year. Wholesale revenue for the quarter was 38.2 million yuan. Total revenue for the fourth quarter was 1.198 billion yuan, a 36% sequential increase and a 101% increase year - on - year.

• In 2026, plan to open 4 to 6 new super stores, and expect both full - year retail transaction volume and revenue to grow by more than 100%. • For the first quarter of 2026, expect retail transaction volume to be between 16,200 and 16,500 units, a year - on - year increase of over 110%, and total revenue to be between 1.05 billion yuan and 1.07 billion yuan.

• New car market price competition brought challenges to the used car industry's sales and profit. • Newly opened super stores have lower growth margins during the initial ramp - up stage. • Operating expenses increase due to the initial ramp - up of new super stores, such as investments in staffing and infrastructure.

Q: The company delivered another quarter of its growth in both sales volume and revenue. Amendment also provides some color on the changes in gross margins. As you plan to open 4 - 6 new superstars this year, how should we think about the growth margin going into 2026 and ASP? Could you recommend to share your latest view of the cost - pricing trends this year? Are you starting to see some signs of stabilization?

A: Growth margin declined sequentially in the fourth quarter mainly due to the ramp - up of newly opened superstores. Newly opened superstores adopted more competitive pricing strategy initially. It takes about six to nine months for new stores to reach the gross margin level of mature stores. ASP has increased sequentially for two consecutive quarters, and we expect it to show a stable to upward trend in 2026.

Q: How should we think about the customer acquisition channels for new superstars compared with your mature stores? Are there any key differences?

A: Customer acquisition for new super stores mainly comes from three channels: leveraging existing brand awareness and online traffic base, carrying out marketing and PR campaigns around new store openings and collaborating with local governments, and partnering with vertical automotive platforms and media. As new stores mature, natural traffic from good products, services and customer experience increases and customer acquisition cost decreases.

Q: From a long - term perspective, how does your company determine the opening space within the country? In the future, how many supermarkets will the country have the opportunity to set up?

A: As of the end of 2025, there were 5 super stores in operation. Plan to open 4 - 6 super stores in 2026 and have more than 10 stores in operation by the end of 2026. Expansion potential is based on vehicle ownership level in each city and target market share. There are many cities suitable for deploying Yuxin's large - scale used car super stores.