Uxin Limited

In Q2, retail transaction volume reached 19,610 units, up 89% year over year and 19% sequentially. Retail vehicle sales revenue was RMB 1.08 billion, up 78% year over year and about 7% sequentially, while total revenue reached RMB 1.51 billion, up 75% year over year and 7% sequentially. Gross margin was negative 0.7%, versus 5.2% in the same period last year and 7% in the prior quarter. Adjusted EBITDA loss was RMB 120 million. For Q3, management expects retail transaction volume of 20,500 to 21,000 units, total revenue of RMB 1.16 billion to RMB 1.19 billion, and gross margin above 6%.

D.K. said 2026 may be the start of a new phase for China’s used-car industry, with the market shifting toward larger, more standardized and digital players. He emphasized that Uxin’s warehouse-style superstore model is proving out, with strong NPS, faster inventory turnover, and expanding superstore development in six cities. His tone was confident but cautious, repeatedly noting that market risks remain elevated and that the company will stay prudent on inventory and capital efficiency.

John Lin highlighted that pricing volatility in Q2 directly hurt the gross margin on existing inventory, prompting accelerated sell-through and inventory reset actions. He said the company’s ASP was RMB 55,000 versus RMB 59,000 a year ago and RMB 61,000 in Q1, but volume growth offset the pricing pressure. He also noted sales and marketing expense was broadly stable, adjusted EBITDA loss was RMB 120 million, and the company recently received $4 million from NIO Capital with the remaining $4 million expected to close, including an announced purchase price of $2.86 per ADS.

Analysts focused on why inventory turnover improved so sharply, what current used-car market conditions look like, and whether the CEO’s planned share purchases would proceed. Management said the faster turnover is being driven by AI-enabled pricing, better integrated operating systems, and a deliberate focus on reducing price risk, and stressed that around 20 days is a long-term target, not just a temporary defense. On the market, management said July and August remained weak but less chaotic than Q2, with no repeat of the sharp monthly price drops, and reiterated that industry consolidation should favor scaled, digital operators like Uxin.