Uxin Limited

Retail transaction volume was 16,530 units, up 119% year over year. Retail vehicle sales revenue totaled RMB 1.01 billion, up 118% year over year and down 10% sequentially; total revenue was RMB 1.074 billion, up 113% year over year and down 10% sequentially. Wholesale transaction volume was 1,681 units, up 134% year over year, and wholesale revenue was RMB 27.9 million. Gross margin was 7.0%, up 0.2 percentage points from 6.8% in the prior quarter and consistent with 7.0% a year ago. Adjusted EBITDA loss was RMB 34.3 million, versus RMB 27.2 million in the prior quarter. For Q2 2026, management guided to retail transaction volume of 18,000 to 19,000 units, or 73% to 83% year-over-year growth, and total revenue of RMB 1.05 billion to RMB 1.1 billion.

The CEO framed the quarter as evidence that Uxin’s superstore model is still scaling strongly, even with the seasonal Lunar New Year slowdown. He emphasized the company’s network expansion, noting the Tianjin store launch and partnerships with local governments in Chongqing and Shijiazhuang, while saying the long-term industry shakeout should favor disciplined operators like Uxin. His tone was confident and strategic, but he acknowledged near-term industry volatility and said expansion will remain flexible and disciplined.

The CFO highlighted the hard numbers behind the quarter: 16,530 retail units, RMB 1.01 billion of retail revenue, RMB 1.074 billion of total revenue, 7.0% gross margin, and RMB 34.3 million adjusted EBITDA loss. He said retail ASP was RMB 61,000, roughly stable versus RMB 59,000 last quarter and RMB 62,000 a year ago. On outlook, he guided Q2 retail volume to 18,000-19,000 units and revenue to RMB 1.05 billion-RMB 1.1 billion, but cautioned gross margin will face more pressure in Q2 because of recent ICE used-car price declines; he expects improvement in Q3 as inventory tied to earlier volatility clears.

Analysts focused on two issues: why the second quarter is weakening and how much gross margin could be pressured. Management said April-May price cuts in new ICE vehicles and a 10%-15% drop in used-car prices since April are driving the Q2 slowdown and margin pressure, and added that if ICE prices keep falling, gross margin will stay under pressure. On store expansion, management said new superstores are ramping faster than earlier locations like Xi'an, citing Wuhan and Zhengzhou as examples, and reiterated the plan to open four to six new superstores in 2026, while keeping the option to slow openings and spend more conservatively if market conditions remain difficult. They also addressed mix trends, saying NEVs have not yet meaningfully increased their share in used cars because they are still less than 15% of China’s vehicle ownership.