Uxin Ltd (UXIN) Q4 2025 Earnings Call Transcript

Ladies and gentlemen, thank you for standing by, and welcome to Yuxin's Earnings Conference Call for the quarter-ended December 31, 2025. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a Q&A session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the call over to your host for today's conference call, Ms. Ali Wong. Please go ahead, Ali.

Thank you, Operator. Hello, everyone. Welcome to Yuxin's earnings conference call for the fourth quarter and full year ended December 31, 2025. On the call with me today, we have DK, our founder and CEO, and John Lin, our CFO. DK will review business operations and company highlights, followed by John, who will discuss financials and guidance. They will both be available to answer your questions during the Q&A session that follows. Before we proceed, I would like to remind you that this call may contain forward-looking statements which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our filings with the SEC. Now, with that, I'll turn the call over to our CEO, BK. Please go ahead, sir. good day to everyone and thank you for your continued interest and support it's a pleasure to welcome you on our earnings call today to better communicate with our domestic and international investors i will be discussing our performance over the last year as well as

providing insights into our prospects in both chinese and english Thank you.

China's vehicle ownership has approached 370 million units, forming a large and growing base that continues to unlock significant potential for vehicle recirculation. In 2025, used car transaction volume in China exceeded 20 million units for the first time, accounting for approximately 5.5% of total vehicle ownership, well below the 10% to 15% level, typically seen in more mature markets. As this percentage rises toward that level, annual use car transaction volume could reach 35 million to 50 million units based on current vehicle ownership alone. The consumer expectations for products, services, and overall experience in the use car industry continue to rise. We have observed that they are no longer satisfied with availability alone and increasingly value transparency in vehicle conditions, fair pricing, professional service, and reliable after-save support. We believe that in this trillion RMB market, which remains at an early stage of development, those who can systematically address these pain points will be well positioned to lead the transformation and upgrading of China's used car industry. 让买卖二手车变得像购买标准化零售商品一样简单透明,值得信赖。 As a result, buying and selling used cars could become as simple, transparent, and trustworthy as purchasing standardized retail products. 总收入达到32.4亿元,同比增长79%. 在库存和销量持续爬坡的同时, 车辆的周转天数始终维持在30天左右。 In 2025, despite continued intense price competition in the new car market, which created challenges for the used car industry, our business maintained strong growth momentum. Our full-year retail transaction volume reached 51,110 units, up 135% year-over-year, marking the second consecutive year of more than 130% growth. Total revenues reached 3.24 billion RMB, representing a 79% increase year-over-year. Meanwhile, as both inventory and sales continue to scale up, our inventory turnover days for vehicles available for sale remain stable at approximately 30 days.

Thank you very much.

During the year, we also began large-scale replication and nationwide expansion of our superstore model. Building on our existing superstores in Hefei and Xi'an, we opened three new superstores in Wuhan, Zhengzhou, and Jinan, establishing a scalable operating system that can be replicated across regions. Our mature superstores in Xi'an and Hefei continued to ramp up, each achieving over 20% market share in their respective cities. Wuhan, as the first replicated superstore after our model had been validated, delivered stronger sales growth and profitability than our earlier superstores at the same stage. Zhengzhou and Jinan superstores further improved upon Wuhan's performance.

Thank you.

These achievements are supported by core capabilities that we have built over time and continue to strengthen. First, our pricing capability continues to evolve. We have accumulated the industry's largest set of real transaction data from our self-operated used car sales. And this data continues to grow, roughly doubling each year. This enables our pricing model to become increasingly precise. Our digital systems respond rapidly to market changes, allowing us to maintain real-time pricing competitiveness on both sourcing and sales. As a result, we are well positioned to navigate industry volatility and systematically improve vehicle-level profitability, while sustaining high inventory turnover efficiency. Let's see.

As for the new car dealers, the two-wheel shop owners provide financial, insurance, insurance, maintenance, maintenance, and maintenance. These are all-in-law-of-the-use cars. Compared to the only-in-law-of-the-use cars, our income is more豐富 and the profitability of the market is more powerful.

Second, we have built an innovative integrated factory warehousing retail business model. Each of our super stores is supported by a used car reconditioning factory, forming China's largest, most advanced, and most efficient supply system for high-quality used vehicles. We have established scalable advantages over traditional dealers in quality control, reconditioning efficiency, and cost optimization. Leveraging the reconditioning capabilities at our self-operated factories, we have expanded the used car service value chain and are able to provide full-life cycle vehicle services, including financing, insurance, extended warranties, accessories and repair and maintenance services similar to those offered by new car dealers Compared with traditional used car dealers that primarily offer financing services our revenue streams are more diversified with greater potential for profitability improvement With the same, our超级卖场規模 is over 2,000台以上 It is the center of the two-way car dealers in the region

地标级卖场更有助于建立客户的信任 我们的人员服务 货架陈列和体验设计 让消费者在进入优心卖场时 能够更直观地感受到专业 透明和值得信赖的二手交易体验 当前我们的NPS已经达到67 客户满意度和口碑持续保持行业领先水平 卖场的成交转化率 好口碑带来的自然流量获客能力 都较传统二手车商有显著的优势 Meanwhile, most of our superstores carry inventory of more than 2,000 vehicles and serves as a landmark used car retail destination in its local market.

Landmark superstores help build customer trust. Through our in-store service, vehicle display, and experience design, customers can enjoy a professional, transparent, and trustworthy retail experience at our superstores. Our net promoter score has reached 67, and customer satisfaction and brand reputation remain at industry-leading levels.

We believe that our sales conversion efficiency, together with our ability to generate organic traffic through a strong word-of-mouth, provides us with significant advantages over traditional used car dealers. 展望2026年,我们将继续拉升现有五个卖场的库存和销售水平,并计划于2026年新开四至六个超级卖场,进一步完善全国范围内的超级卖场网络。 基于上述经营计划,我们预计2026年的全年零售销量实现百分之百以上的增长,同时我们的收入也会实现百分之百以上的增长。

We clearly see that Houston is advancing rapidly along a validated and continuously strengthening development path. Looking ahead to 2026, we will continue to increase inventory and sales across our existing five superstores, and we plan to open four to six additional superstores during the year, further strengthening our nationwide network. Based on these plans, we expect both our full-year retail transaction volume in 2026 and revenue to grow by more than 100%. The modernization of China's used car industry has only just begun, and Yuxing is positioned to benefit from a significant market opportunity. We also recognize that truly sustainable growth is not simply about speed, but it's built on the coordinated improvement of scalability, operational efficiency, and customer value. We will remain focused on delivering better products and more professional services to our customers, while driving higher standards for solutions across the industry and creating long-term value for our shareholders. Once again, thank you for your trust and support. With that, I'd like to turn the call over to our CFO to walk you through the financial results.

Thank you, DK. I'm very happy to have a chance to share with you the company's business.

Thank you. Thank you, DK, and hello everyone. I will now share an update on our financial performance. We delivered another quarter of strong results in the fourth quarter of 2025. retail transaction volume reached 19,160 units representing a 37% sequential increase and a 124% increase year-over-year significantly outperforming the overall China used car market which reported a year-over-year growth rate of approximately 6% during the same period This demonstrates that our retail business remains firmly on a path of rapid growth 本季度的零售收入总额是11.29亿元 环比增长38% 同比增长104% 零售车辆的平均售价ASP由去年同期的6.5万元 掉至本季度的5.9万元 销量的大幅增长 抵消了车价下降对收入水平的影响 但是相较于三季度上季度的5.8万元 四季度的ASP略微上涨 The total retail revenue for the quarter was 1.1 to 9 billion RMB, up 38% sequentially and 104% year-over-year. Our average selling price or ASP for retail vehicles decreased from 65,000 RMB in the same quarter last year to 59,000 RMB this quarter, but slightly increased from 58,000 RMB in the last quarter. While ASP declined as we shifted toward a more affordable inventory mix, the strong growth in transaction volume largely offset the pricing impact and supported overall revenue extension. Our current inventory structure is well aligned with mainstream consumer demand, and we believe pricing has now stabilized at a rational level. As such, we expect ASP to remain relatively steady in the near term. On the wholesale side, we sold 2,474 units in the fourth quarter. up 31% sequentially and 180% year-over-year. Wholesale revenue for the quarter was 38.2 million RMB. Combining retail and wholesale operations, total revenue for the fourth quarter was 1.198 billion RMB, representing a 36% sequential increase and a 101% year-over-year increase. 本季度的毛利率是6.8% 相较上个季度的7.5% 下降0.7个百分点 这主要是由于今年四季度新车市场采取了一系列的促销动作 影响了二手车行业的利润水平 同时我们9月新开了郑州卖场 12月新开了济南卖场 新卖场的前军营阶段的毛利率较低 Our gross margin for the fourth quarter was 6.8%, down 0.7 percentage points from 7.5% in the last quarter. This was primarily due to promotional activities in the new car market during the fourth quarter, which put pressure on profitability across the used car industry. In addition, we opened a new superstore in Zhengzhou in September and another in Tianan in December. and newly opened superstores typically operate at lower growth margins during their early stages of ramp-up. Operating expenses also increased during the quarter primarily due to the initial ramp-up of our new superstores including investments and staffing and infrastructure As a result, our adjusted EBITDA loss was 27.2 million RMB. Turning to our full year 2025 results, retail transaction volume totaled 51,110 units, representing a 135% year-over-year increase. Full-year retail revenue was 3.021 billion RMB, up 19% year-over-year. Total revenue reached 3.24 billion RMB, an increase of 79% year-over-year. In 2025, we opened three new superstores in Wuhan, Zhengzhou, and Zinan, marking a new phase of rapid nationwide replication and expansion.

These new super stores have ramped up more quickly than our earlier locations, continuing to drive growth in both our sales volume and overall financial performance. 前年的毛利率是6.7% 与24年基本持平 尽管新卖场的初期运营阶段的毛利水平小低 但由于老卖场毛利贡献的持续提升 使我们在快速扩张的同时 依然可以保持毛利率的稳定 The gross margin for the full year was 6.7%, remaining stable compared with last year.

Despite lower margins during the early ramp-up stages of newly opened superstores, this continued improvement in profitability from our mature superstores enabled us to maintain stable margins while expanding rapidly.

For the expenses, the sales, management and research expenses are 4.5 million.

The expenses are 13.9% 较去年的24.3%大幅下降 证明我们在费用的控制和经营杠杆上的释放有了较大的改善 Turning to expenses, SDNA and R&D expenses totaled 450 million RMB Representing 13.9% of total revenue A significant improvement from 24.3% last year Reflecting meaningful progress in cost control and operating leverage Adjusted EBITDA loss for the full year was 57.9 million RMB, narrowing by 28% year over year. Adjusted EBITDA margin was minus 1.8%, an improvement of 2.7 percentage points from last year. We have disclosed additional details regarding our full-year financial performance and our recently published fourth quarter and annual results. So I will not repeat all the figures here. 关于2026年一季度的业绩展望 尽管每一年的一季度都受到春节的长假期影响 是二手车行业的传统战季 我们的零售销量预计认为在16200台到16500台 同比增长超过100亿 总收入预计在10.5亿到10.7亿人民币 Turning to our outlook for the first quarter of 2026, while the first quarter is traditionally a seasonally soft period for the used car industry due to the Chinese New Year holiday, we expect retail transaction volume to be between 16,200 and 16,500 units, representing year-over-year growth of over 110%. Total revenue is expected to be between 1.05 billion RMB and 1.07 billion RMB. Lastly, to reiterate BK's comments on our full-year outlook, In 2026, we plan to open four to six new super stores, with sales volume and inventory continuing to ramp up at our existing super stores. Along with new store openings, we are confident in achieving over 100% year-over-year growth in both retail transaction volume and revenues in 2026. This concludes our prepared remarks today. Operator, we're ready for questions.

We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. The first question today comes from Dai Wenjie with SWS. Please go ahead.

Okay, thank you. Thank you for the government. And I'm Dai Wenjie. My first question is the company delivered another quarter of its broad room in both sales volume and revenue. Her management also provides some color on the changes in growth margin. So as you plan to open to four to six new superstars in this year, how should we think about the growth margin flowing into 2026年 on ASP? Could the management share your latest view of the cost pricing trends this year? Are you starting to see some signs of stabilization? Thank you.

Let me translate this question first. Thank you for the question. Let me take this one.

同时增值服务的渗透率 金融保险等这些服务的渗透率 也需要一定时间的提升 随着我们在卖场所在区域的市占率 品牌和口碑的提升 我们预期新卖场 大概需要6到9个月的时间 来达到老卖场的毛利水平 还有一个原因是 在25年的12月份的时候 新车市场销售其实有着 比较明显的一个下滑趋势 So,经销商普遍采取了不同力度的新车的促销

这个对二手车的毛利也会有一定的影响 Growth margin declines sequentially in the fourth quarter mainly due to the ramp-up of newly opened superstores We opened our Zhengzhou Superstore in September and our Jinan Superstore in December During the initial ramp-up phase we adopted a more competitive pricing strategy to drive traffic and establish market presence resulting in a narrower spread between sourcing costs and selling prices compared to our mature stores. In addition, the penetration of value-added services also takes time to ramp up. As our market share and brand recognition improve in these markets, it generally takes around six to nine months for new stores to reach the gross margin level of our mature stores. At the same time, our new car market experienced a slowdown in sales last December, and dealers stepped up promotional activities, which put pressure on used car margin. According to our operating data for the first quarter of 2026, we have already seen meaningful improvement in the growth margins of our newly open super-stores in Zhengzhou and Zinan. Overall growth margin has begun to recover compared to the fourth quarter of 2025, and we expect it to return to above 7%.

Okay, 关于零售均价ASG的问题, 那根据汽车流通协会的统计, 中国二手车的交易均价从去年四季度已经开始回升 那我们从实际的经营中也能看到这个趋势 我们看到二五年四季度和二六年一季度 两个季度的零售ASP都在持续的提升 二五年的四季度零售ASP是5.9万元 那将三季度没有提升 那我们看到预期二六年一季度的ASP regarding ASP according to data from the China Automobile Dealers Association the national average transaction price of used cars

has started to recover since the fourth quarter of last year we're seeing a similar trend in our own operating data our retail ASP increased sequentially for two consecutive quarters reaching 59,000 RMB in the fourth quarter of 2025 and we expected to exceed 61,000 RMB in the first quarter of 2026. In addition, due to factors such as rising raw material costs, the phase out of purchase tax incentives and government subsidies, as well as regulatory guidance aimed at reducing excessive price competition, we expect new car pricing to become more stable in 2026 compared with the past three years. More stable new car pricing will also support used car prices. As a result, we expect our retail AFP to show a stable to upward trend in 2026 compared with 2025. Given that we expect retail transaction volume to grow by over 100% year over year in 2026, revenue growth is expected to outpace transaction volume That's my answer. Thank you.

The next question comes from Fei Dai with TF Securities. Please go ahead.

I have a question on customer acquisition. How should we think about the customer acquisition channels for new superstars compared with your mature stores. Are there any key differences?

In the beginning of the year of the year, we were given the company's knowledge of its own company and the network of the internet and the network of the internet and the network of the internet and the network of the internet.

Thank you for the question. Let me address your question. Customer acquisition for new superstores mainly comes from three channels. First, Yuxing is a well-recognized brand in China's used car market. As a result, whenever we enter a new city, we already have a certain level of traffic accumulation on the Yuxing used car app. In other words, during the initial ramp-up phase of a new superstore, we are able to leverage our existing brand awareness and online traffic base to reactivate and re-engage existing users, bringing in the first batch of users and leads into the new market. Second, we typically carry out a series of marketing and PR campaigns around new superstore opening. In addition to targeted marketing on digital platform, we also collaborate with local governments when launching new superstore. Local governments often provide promotional resources and local media support, which helps us quickly build awareness and reach potential customers in the new market. Third, we also partner with vertical automotive platforms and media to capture traffic and leads from third-party channels. Given the competitiveness of our vehicle quality and pricing, we are able to achieve strong exposure and conversion on these platforms. As the new stores continue to operate and mature in local markets, The cities where our secret stores are located gradually become destination markets for car purchases, and walk-in traffic increases over time. At the same time, as transaction volume scales up, customer satisfaction and brand reputation continue to build, and referrals from existing customers also increase, further improving conversion and creating a positive customer acquisition cycle. Overall, as new superstores continue to mature, the proportion of traffic generated by our strong product offering, service quality, and customer experience continues to increase, and our customer acquisition costs continue to decline.

Thank you, this is my answer.

That's my answer. Thank you.

Thank you, John.

The next question comes from Xin Xing Li with China Merchant Securities. Please go ahead.

In the future, the world will probably have a chance to set up a number of the超级 markets. Now, let me say it again. Congratulations on entering a new phase of nationwide expansion. From a long-term perspective, could management share some color on your store expansion potential across China, and how many shop stores you think you can ultimately roll out over time?

Thank you for your question. This question I will answer.

Thank you for the question. Let me take this one. As of the end of 2025, we had five super stores in operation. In March this year, we opened a new super store in Tianjin.

We expect to open 4 to 6 super stores in 2026 With a goal of having more than 10 stores in operation by the end of 2026 We are very confident in the開店 in the entire world The key is because of the space of the market in China's two-way market market Today, the gas supply has been超过 3.5 a台 In this huge storage system, the city of this huge storage system is very much We are very confident in our long-term store expansion potential across China,

primarily because of the sheer size of the used car market. China's vehicle ownership has already exceeded 350 million units, and on top of this large space, there are many cities that are well suited for deploying using large-scale used car superstores. Our assessment of store expansion potential is mainly based on the level of vehicle ownership in each city, as well as our target market share. At a high level, for a city with vehicle ownership of 500,000, we believe it can support a using superstore with around 1,000 units of inventory. Assuming 10% to 15% of vehicle ownership is transacted as used cars annually. Such a city would generate annual used car transactions of approximately 50,000 to 80,000 units. Based on the over 20% market share that our mature stores have already achieved, a used superstore could achieve annual sales of over 10,000 units, which corresponds to an inventory level of around 1,000 units. This is my answer. in China with vehicle ownership exceeding 3 million, which can support superstores with over 5,000 units of inventory. There are more than 70 cities with vehicle ownership exceeding 1 million, which can support superstores with over 2,000 units of inventory. In addition, there are more than 100 cities with vehicle ownership exceeding 500,000, which can support super-source with over 1,000 units of inventory. In the long run, we believe there are more than 200 cities across China where we can potentially operate, supporting annual retail transaction volume of over 3 million units. Thank you. That was my answer.

This concludes our question and answer session. I would like to turn the conference back over to Management for any closing remarks.

Thank you all for participating on today's conference call. We look forward to reporting to you soon.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.