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    UXIN
    Earnings call· Mar 2026(Q1 FY26)

    Uxin Q1 FY26 earnings call UXIN

    Jun 16, 2026 Source

    Executive summary

    Uxin Q1 FY26 — Strong Retail Volume Growth Amidst Market Volatility

    Uxin delivered robust retail transaction volume growth in Q1 FY26, driven by its scalable superstore model and expanding network. Despite significant market volatility and price adjustments in China's auto market, the company maintained strong inventory turnover and customer satisfaction. Management remains confident in its long-term expansion strategy, aiming for continued volume growth while navigating short-term margin pressures and expecting stabilization in the coming quarters.

    Highlights

    5

    • Retail transaction volume reached 16,530 units, representing a 119% year-over-year increase.

    • Achieved eighth consecutive quarter with retail transaction volume growth exceeding 110% year-over-year.

    • Maintained inventory turnover at approximately 30 days, demonstrating strong operational discipline.

    • Net Promoter Score improved to 68%, remaining above 65% and ranking among the highest in the industry.

    • Opened the Tianjin Superstore in March, expanding the nationwide network to six superstores and strengthening regional coverage.

    Concerns

    4

    • China's new vehicle sales declined by 20% year-over-year during the first five months of 2026.

    • Mainstream used ICE vehicle prices declined by 10% to 15% within 1-2 months starting April, creating profitability pressure.

    • Gross margin is expected to face greater pressure in Q2 FY26 due to rapid price adjustments in the new car market.

    • Adjusted EBITDA loss increased to RMB 34.3 million in Q1 FY26, up from RMB 27.2 million in the prior quarter.

    Guidance & targets

    4
    CategoryTargetConfidence
    Q2 FY26 Retail transaction volume
    between 18,000 and 19,000 units
    high materiality
    High
    Q2 FY26 Total revenue
    between RMB 1.05 billion and RMB 1.1 billion
    high materiality
    High
    Full-year 2026 retail transaction volume growth
    more than 100% year-over-year growth
    high materiality
    High
    New superstore openings
    4 to 6 new superstores
    medium materiality
    High

    Operational metrics

    21
    Net Promoter Score
    68%further improved
    Q1 FY26

    Remained above 65%, continuing to rank among the highest in the industry.

    China new vehicle sales growth
    -20%YoY decline
    First 5 months of 2026

    Cumulative new vehicle sales.

    China new ICE vehicle sales growth
    -35%YoY decline
    April and May 2026

    Facing even greater pressure.

    Used ICE vehicle price decline
    10% to 15%
    Starting April 2026

    Prices of mainstream used ICE vehicles.

    China used car market transaction volume growth
    +2%YoY increase
    First 5 months of 2026

    Achieved a modest increase, significantly outperforming the new vehicle market.

    Superstore count
    6
    Q1 FY26

    With the opening of the Tianjin Superstore, Uxin now operates six superstores nationwide.

    Retail vehicle sales revenue
    RMB 1.01 billion+118% YoY, -10% QoQ
    Q1 FY26

    Significant increase driven by retail transaction volume.

    Retail vehicle ASP
    RMB 61,000vs RMB 59,000 in Q4 FY25, vs RMB 62,000 in Q1 FY25
    Q1 FY26

    Remaining generally stable.

    Wholesale revenue
    RMB 27.9 million
    Q1 FY26

    Total wholesale revenue.

    Total revenue
    RMB 1.074 billion+113% YoY, -10% QoQ
    Q1 FY26

    Combining both retail and wholesale business.

    Adjusted EBITDA loss
    RMB 34.3 millionvs RMB 27.2 million in Q4 FY25
    Q1 FY26

    Sequential increase primarily attributable to seasonal impact of Chinese New Year holiday on sales volume and upfront investments in new superstores.

    Xi'an Superstore monthly retail transaction volume
    2,700
    Last year (approx. FY25)

    Representing roughly 25% local market share and has achieved profitability at the store level.

    Xi'an Superstore local market share
    25%
    Last year (approx. FY25)

    Local market share for the Xi'an Superstore.

    Wuhan Superstore ramp-up to 1,000 units/month
    6
    Since opening March 2025

    Time taken for Wuhan superstore to exceed 1,000 monthly retail transaction units.

    Zhengzhou Superstore ramp-up to 1,000 units/month
    4
    Since opening September 2025

    Time taken for Zhengzhou superstore to surpass 1,000 monthly retail transaction units.

    China passenger vehicle sales growth
    -22%YoY decline
    May

    Overall passenger vehicle sales.

    China ICE vehicle sales growth
    -39%YoY decline
    May

    Within passenger vehicle sales.

    China NEV sales growth
    -7.5%YoY decline
    May

    Within passenger vehicle sales, less severe decline than ICE vehicles.

    China NEV retail penetration
    60%
    May

    NEV retail penetration exceeded 60% in May.

    China NEV share of total vehicle ownership
    <15%
    Current

    NEVs still account for less than 15% of total vehicle ownership in China.

    Residual value of 3-year-old used vehicle
    58% to 60%down 10 percentage points from 68% to 72%
    Current

    Measured against current new vehicle prices, bringing it closer to levels seen in mature markets.

    Industry KPIs

    5
    MetricValueDetails
    Store count growth6units
    Gross margin drivers7%%
    Retail units sold retail gpu16,530units
    Wholesale units wholesale gpu1,681units
    Inventory position markdown riskapproximately 30days

    Deals & partnerships

    1
    Municipal government of Tianjin, Shojajanpartnership

    Strategic partnerships to jointly invest in and operate used car superstores.

    Risks & headwinds

    3
    China auto market slowdown and price adjustmentsSince the beginning of 2026

    New vehicle sales declined by 20% year-over-year during the first 5 months; prices of mainstream used ICE vehicles declined by 10% to 15% within 1 to 2 months starting April.

    Mitigation: Disciplined inventory turnover, stringent quality control, superior customer service, flexibility in new store openings, prioritizing cash efficiency and inventory turnover.

    Short-term pressure on profitability and gross marginQ2 FY26

    Declining vehicle prices have created short-term pressure on profitability; gross margin will face greater pressure in the second quarter.

    Mitigation: Prioritizing healthy inventory turnover over short-term gross margin optimization; expectation of stabilization and improvement in Q3 as new car prices stabilize and inventory clears.

    Upfront investments in new superstores impacting profitabilityQ1 FY26 and early stages of new superstores

    Adjusted EBITDA loss increased by roughly RMB 25 million YoY, primarily due to new superstores ramping up and upfront staffing investments.

    Mitigation: Monitoring sales ramp-up, gross margins, inventory turnover, and store-level EBITDA to ensure high-quality and sustainable expansion.

    Q&A highlights

    4

    What is the reason for the decline in used car prices in Q2, and how will this affect gross margin?

    John Lin explained that a 35% drop in new ICE vehicle sales in April/May led to a 10-15% decline in used car prices. Gross margin will face pressure in Q2 as the company prioritizes inventory turnover. However, new car prices have stabilized in early June, and gross margin is expected to improve meaningfully in Q3, potentially returning to normal levels.

    “As a result, gross margin will face greater pressure in the second quarter... However, based on what we have seen since early June, new car prices have generally stabilized... we expect gross margin to improve meaningfully in the third quarter and potentially return to normal levels.”

    asked by Bin Wang · answered by Feng Lin

    2 min read5 chapters

    Detailed Narrative

    01

    China's Auto Market Dynamics and Used Car Resilience

    The Chinese auto market experienced a significant slowdown in early 2026, with cumulative new vehicle sales declining 20% year-over-year in the first five months. New internal combustion engine (ICE) vehicle sales were particularly impacted, falling over 35% in April and May. This led to rapid price adjustments in the used car market, with mainstream used ICE vehicle prices dropping 10-15% within 1-2 months. Despite these challenges, China's used car market achieved a modest 2% increase in transaction volume during the first five months, significantly outperforming the new vehicle market.

    02

    Superstore Model Validation and Scalability

    Uxin's superstore model, characterized by disciplined inventory turnover, stringent quality control, and superior customer service, is proving resilient during market adjustments. The Xi'an Superstore, which opened in December 2022, has achieved profitability and a 25% local market share. Newer superstores in Wuhan and Zhengzhou demonstrate significantly shorter ramp-up periods, reaching 1,000 monthly retail transactions in 6 and 4 months respectively, highlighting the model's increasing scalability and replicability across diverse markets.

    03

    Strategic Expansion and Network Growth

    The Tianjin Superstore, Uxin's first project in North China, officially commenced operations in March 2026, bringing the total number of nationwide superstores to six. The company has also announced strategic partnerships with local governments in Chongqing, Sidedrong, Intra, Wuxi, and Guangzhou for future superstore investments. This ongoing expansion is designed to strengthen Uxin's service coverage, regional synergies, and brand influence, reinforcing its leadership in China's used car retail market.

    04

    Gross Margin Outlook and Stabilization Efforts

    Gross margin remained relatively stable at 7% in Q1 FY26, with the larger sales contribution from mature superstores offsetting lower initial margins from new locations. However, Q2 is expected to face greater pressure due to the rapid price adjustments in the new car market impact🌐ing used car prices. Management anticipates a meaningful improvement in gross margin in Q3, potentially returning to normal levels, as new car prices stabilize and existing inventory affected by earlier volatility is cleared.

    05

    Used Car Residual Values and Market Maturity

    While new energy vehicle (NEV) retail penetration exceeded 60% in May, NEVs still account for less than 15% of total vehicle ownership, limiting their share in the used car market. The used car market is primarily driven by pricing, and current adjustments represent a 'one-time📎 reset' in residual values for ICE vehicles. The residual value of a 3-year-old used vehicle in China has declined from 68-72% to 58-60% of new vehicle prices, aligning with levels seen in more mature markets like the US and Europe.

    AI-generated summary of the company’s earnings call. Not investment advice.