Uxin Ltd. Reports Strong Q1 Earnings Growth Despite Industry Challenges
The leading Chinese used car retailer reported a 38.8% increase in revenue and a 142% surge in retail vehicle sales during the first quarter.
China’s leading used car retailer, Uxin Ltd. (NASDAQ: UXIN), posted significant gains in its Q1 fiscal year 2025 earnings, driven by an uptick in retail vehicle sales and strategic expansion efforts. The company reported a notable 142% year-over-year increase in retail vehicle sales, selling 4,090 units during the quarter, up from 1,687 units in the same period last year. Uxin’s revenue surged 38.8% over the previous year to RMB 401.2 million (US$55.2 million), largely attributed to increased retail transaction volume.
Despite an overall reduction in the average selling price per vehicle, which fell from RMB 111,000 to RMB 79,000, Uxin’s sales growth remained robust. Retail vehicle sales revenue hit RMB 325 million, a 74% increase from the previous year. This reflects Uxin’s ability to capitalize on market trends by optimizing inventory and enhancing customer experience.
Operational Efficiency and Expansion
“Our vehicle turnover efficiency remains healthy, with inventory turnover days around 30,” said Kun Dai, Uxin’s CEO. “Our integrated online and offline model continues to demonstrate its strong competitiveness and growth potential.”
Dai also highlighted the company’s focus on expanding its network of superstores, with new partnerships, including one in Zhengzhou, poised to boost Uxin’s market presence and future sales.
Uxin’s first-quarter results also underscore improvements in operational efficiency. The company reduced its adjusted EBITDA loss to RMB 33.9 million, a 27% year-over-year improvement, signaling progress in controlling costs while scaling up operations.
“We expect to further narrow our adjusted EBITDA loss to under RMB 10 million next quarter and remain confident in achieving EBITDA profitability by December 2024,” added Feng Lin, Uxin’s CFO.
Future Outlook and Financial Strategy
While Uxin’s gross margin remained stable at 6.4%, the company’s commitment to growth is evident in its plans to triple inventory by the end of 2024. The company’s outlook for the next quarter is optimistic, projecting a retail transaction volume between 5,800 and 6,000 units, with revenues expected to range between RMB 480 million and RMB 500 million.
However, Uxin faces challenges in managing start-up costs for new superstores, which have impacted profitability. Nevertheless, the company’s recent US$7.5 million financing agreement is expected to support inventory expansion and maintain momentum in the coming quarters.
Conclusion: A Path to Growth
In summary, Uxin Ltd. is navigating the complexities of the used car market with a clear focus on scaling operations and improving financial performance. While challenges remain, particularly in terms of profitability, the company’s strategic initiatives and market positioning put it on a path toward sustained growth. As Dai affirmed, “Customer satisfaction has improved, as our Net Promoter Score reached 65, the highest level in the industry.”
UXIN Stock Price Action & Chart
Shares of Uxin Ltd. (NASDAQ: UXIN) stock closed Friday up 7% at $1.58 per share.
YTD, UXIN stock is down 78%.
However, Uxin’s excellent Q1 earnings, strong close to Friday’s trading session and bullish technicals make UXIN a stock that investors should keep an eye on this morning as it could be poised for a big move.
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