Uxin (UXIN) Q4 2025 earnings call transcript

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, DK. Please go ahead, sir.

and share the past year's progress and our future. 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.

The current vehicle power supply has been 3.7 million. The large storage base is still allowing the vehicle to release the vehicle's drive. In 2025, the two-car transportation supply chain has first reached 2,000 million cars. The total cost of the vehicle's drive is at 5.5% of the total cost. If it is a 10-15% of the supply chain, it is only the same as the current transportation supply chain. The two-car transportation supply chain has been expected to reach 3,500 million to 5,000 million cars per year.

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, loose charge 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 the 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's demand is increasingly higher than the product, service and experience. The demand is increasingly higher than the demand for the product. It's not longer in the situation of a car can buy, but it's increasingly more important. It's more important to the car's transparent, price-friendly, experience-to-end and safety. We believe that in a 100,000-year-old and still in the early development of the industry, who can really solve these problems, will have the opportunity to enable the growth and change to the Chinese car industry.

fair pricing, professional service, and reliable after-sales 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.

and ensure the quality of the car is a safe and safe. And through the market and market market, provide a perfect fit of the car and a safe and safe. It makes the two cars become a simple and transparent, and worth it.

and comprehensive after-sales support through our offline superstore and online marketplace. As a result, buying and selling used cars could become as simple, transparent, and trustworthy as purchasing standardized retail products.

In 2025, although the new car market has been continued to continue to continue to continue to continue to grow. It has been a challenge for the market for the two-wheel drive. but the company's business has continued to continue to grow. The sales sales were at 5,100,000, the increase in 135% the increase in the 2 years over 130% the total revenue was at 32.4 million, the increase in 79% the same time, the sales sales were at 30 days.

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.

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 Jijinan, superstores further improved upon Wuhan's performance.

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.

Second, we have built an innovative, integrative factory warehousing retail business model. Each of our superstores 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.

We are also able to build a trust in customers' trust. stores carry inventory of more than 2,000 vehicles and serves as a landmark used car retail destination in its local market. Landmark super stores 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 super stores. 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.

We clearly see that Yosin 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.

I will share the information on the CEO of John. Next, we will show the situation on the CEO of John. Please.

With that, I'd like to turn the call over to our CEO to walk you through the financial results. John, please.

Okay. Thank you, DK. Hello. I'm very happy to have a chance to share the situation on the CEO of John.

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.

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,降至本季度的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。 Our current vehicle storage is filling out the total number of customers' needs. The average price of the price is at a relatively stable rate. We expect ASP to be stable.

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. The current market is 6.68%. 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 Timan in December. and newly opened superstores typically operate at lower growth margins during the 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 in 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. The growth margin for the full year was 6 remaining stable compared with last year Despite lower margins during the early ramp stages of newly opened superstores this continued improvement and profitability from our mature superstores enabled us to maintain stable margins while expanding rapidly.

For the expenses, the sales and development of the company is 4.5 million. The expenses are 13.9% of the year. The last year's 24.3% increased. This shows that we have been in the financial management and financial management of the financial management.

Turning to expenses, SG&A and R&B 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% and 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.

Regarding the year-to-date year-to-date year-to-date year-to-date year-to-date year-to-date year-to-date year-to-date year-to-date year-to-date year-to-date year-to-date year-to-date year-to-date year. The traditional market is expected to increase over 100% of the market. The total revenue is expected to be 10.5 million to 10.7 million.

1,200, 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. I will repeat the DKA about the whole year. In 2020, we have 46 new market markets. With the increase of market market and supply of market markets, and the new market market. We are very confident that the sales sales and sales are over 100% of the year.

in both retail transaction volume and revenues in 2026. This concludes our prepared remarks today. Operator, we're ready for questions.

Okay, I'll answer this question. Thank you for the question. Let me take this one. Okay, I'm John. The company's capital has been increased by three years. The main reason is the new market was the new market. On November 27th, it was the new market. On November 27th, it was the new market. The new market was the new market. We want to make customers open market market From a rate of price Our price of rate is higher We are getting low market market At the same time The price of sales is higher And the cost of sales The cost of sales We also have a time to increase At the price of sales The price of sales and sales And the price of sales We expect the price of sales We're going to need a 6 to 9 months To get to get the price of sales And the reason The reason is that the new market market market market market has a more obvious trend.

So, the market market market has a different level of new market market market. This will also affect the two-wheel drive. The growth margin has been sequentially in the fourth quarter, mainly due to the ramp-up of newly opened super stores. 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 opened superstars in Zhengzhou and Jinai. Overall growth margin has begun to recover compared to the fourth quarter of 2025, and we expect it to return to above 7%. Okay, about the cost of the stock market price. ASP的问题 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 我们从实际的经营中 也能看到这个趋势 我们看到25年四季度和26年一季度 两个季度的零售ASP 都在持续的提升 25年的四季度零售ASP是5.9万元 那将三季度列有提升 That we see in the year 26 years of ASP, we see that in 6.1 million dollars, 4-year-old will be higher.

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. 此外受到原材料成本的提升 购置税补贴也在退坡 国家的各种消费补贴的退坡 和各种反内卷职业的影响 我们预期26年 整个新车市场的价格体系 相较过去三年会更稳定一些 新车价格的稳定 对二手车价格会形成支撑 我们预期26年 公司零售车辆的销售均价ASP In addition, to the 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, 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 growth. That's my answer.

Let me address your question. Customer acquisition for new superstores mainly comes from three channels. First,YuSing 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 YuSing used car app in that market. This is a key difference compared with many regional dealers. In other words, during the initial ramp-up phase of a new superstore, 我们可以利用我们的新品牌知识 和网友的通知识 来重新进行和重新进行用者 带来第一次的用者 进行新市场 第二呢 我们会围绕新店的开业 集中开展一系列的宣传和公文传播 除了新媒体平台的进入营销以外 公司目前新开卖场 都与地方政府形成合作 地方政府通常会提供一些 相关的宣传资源和本地传播支持 这类资源对于新卖场 在当地快速提升认知度 触达潜在客户 也会起到积极的作用 第二 我们经常会发展一系列 的市场和商业的行业 在新的超市开展 除了在新的超市开展 除了在新的超市开展 我们也会合作专业 在新的超市开展 新的超市开展 经常会提供商业 第三,我们也会与汽车行业垂类媒体进行合作, 承接第三方平台的流量和线索。 因为优性车辆的品质和价格都竞争力, 在第三方平台上也能够获得不错的曝光和转化效果。 第三,我们也与 vertical automotive platforms和媒体 来捡取转移动和 leads 从第三个股票的频道 根据我们的质量和价格的质量 我们可以在这些平台的规矩和交流 随着新卖场在本地经营时间的拉长 卖场所在城市逐渐形成购车目的地效应 自主到店客户会逐渐增加 同时在一定规模的交易量基础之上 客户满意度和口碑逐渐沉淀 老客户转接受流量也会逐渐提升 进一步促进销售转化 形成一个货客的正循环 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 总体而言 新卖场不断成熟的过程中 基于好的产品和服务 好的客户体验而产生的自然流量占比 是持续上升的 货客成本也在持续下降 好 谢谢 这是我的回答 谢谢 谢谢 谢谢 谢谢 谢谢 谢谢 谢谢 希望公司越来越好 感谢这次提问机会 管理层好 我是招商社会的分析师李欣欣 那恭喜公司业务的超高速增长 并且再次恭喜公司 已经进入到全国复制扩张的新阶段 那我的问题是想请教一下管理层 就是从长期视角来看 公司是如何判断在全国范围内的开店空间 那未来的话全国大概有机会布局多少家超级卖场 那接下来我自己翻译一下 Congratulations on entering a new phase of nationwide expansion From a long-term perspective Cruid management shows some color on your store expansion potential Across China and how many shop stores 你认为你能够通过时间的转发?

好,谢谢欣欣你的问题 这个问题我来回答,我是DK 2025年底,公司已经有五个在运营卖场 今年3月份我们又新开了天津卖场 我们预计2026年总体将新开四到六个卖场 目标是在2026年底拥有十个以上的卖场 谢谢你问我,让我来讲这个 我们对全国范围内的开店空间是非常有信心的 核心还是由于中国二手车市场本身的空间足够大 今天中国汽车保护量已经超过3.5亿台 在这个庞大的存量基础之上 适合布局优性超级大卖场 超级二手车卖场的城市 确实非常多 我们对开店空间的判断 主要基于不同城市的汽车保护量规模 以及目标市场的市占率来测算的 我们很信心 在中国的长期购物股市场增长 主要是因为用车市场的压力 中国的车航移动已超过350万件。 还有这些大型的大型, 有很多国家很好用在于心的大型用车航移动。 我们的设计性的宣传性能量是主要的, 我们的预算是在各国家的车航移动, 我们的预算是我们的预算市场。 一个比较宽泛的计算是一个汽车保有量在50万左右的城市 我们认为可以匹配1000台库存规模的优性卖场 因为这样的城市如果未来二手车交易吸出率达到10%到15% 那么每年就应该有5万台到8万台二手车的交易量 按照目前优性老卖场已经做到20%以上的实战率 优星卖场可以实现1万台以上的年交易量对应1000台的库存规模 按照这个逻辑 今天中国有30个以上的城市 汽车报量超过300万台 可以支撑5000台规模的卖场 有70个以上的城市 包裹量超过100万台 可以支撑2000台以上的卖场 有100个以上的城市 汽车包裹量超过50万台 可以支撑1000台以上的卖场 所以长期来看 我们在全国范围内 可展业的城市超过200个 足以支撑300万台以上的年零售销量 谢谢 这是我的回答 请问您,请问您,您的顺客支持您的顺客 500,000, which can support super stores 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.