Uxin Ltd (UXIN) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Uxin earnings conference call for the quarter ended March 31, 2025. (Operator Instructions) Today's conference call is being recorded. If you have any objections, you may disconnect at this time.

女士們、先生們，感謝大家的支持，歡迎參加優信 2025 年 3 月 31 日止季度收益電話會議。（操作員指示）今天的電話會議正在錄音。如果您有任何異議，您可以立即斷開連接。

I would now like to turn the conference over to your host for today's conference call, Mr. Jack Wang. Please go ahead, Jack.

現在，我想將會議交給今天電話會議的主持人傑克王先生。請繼續，傑克。

Thank you, operator. Hello, everyone. Welcome to Uxin's earnings call for the first quarter ended March 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.

謝謝您，接線生。大家好。歡迎參加優信截至 2025 年 3 月 31 日的第一季財報電話會議。今天與我一起通話的有我們的創辦人兼執行長 DK 和我們的財務長 John Lin。DK 將回顧業務營運和公司亮點，隨後 John 將討論財務和指導。在接下來的問答環節中，他們都會回答您的問題。

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.

在我們繼續之前，我想提醒您，本次電話會議可能包含前瞻性陳述，這些陳述本質上受風險和不確定性的影響，可能導致實際結果與我們當前的預期不同。有關風險和不確定性的詳細討論，請參閱我們向美國證券交易委員會提交的文件。

And now with that, I will turn the call over to our CEO, DK. Please go ahead, sir.

現在，我將把電話轉給我們的執行長 DK。先生，請繼續。

(interpreted) Hello, everyone. I'm very pleased to connect with all of you again on our earnings call, and I want to thank you for joining us today. To facilitate better communication with both our domestic and international investors, I will be sharing our updates in both Chinese and English.

（譯）大家好。我很高興在我們的收益電話會議上再次與大家聯繫，並感謝大家今天的參加。為了更好地與國內外投資者溝通，我將用中文和英文分享我們的最新動態。

In the first quarter of 2025, we achieved a strong operational performance with retail transaction volume reaching 7,545 units, up 142% year over year. This result once again demonstrates the resilience of our business model and its significant growth potential.

2025年第一季度，我們取得了強勁的營運業績，零售交易量達到7,545套，較去年同期成長142%。這一結果再次證明了我們商業模式的韌性及其巨大的成長潛力。

Despite the typical seasonal slowdown during the Chinese New Year holiday, which impacted industry-wide activity for about two weeks, we maintained solid operational momentum. Our vehicle turnover remained high. Inventory management remains disciplined with turnover days capped around 30.

儘管農曆新年假期期間出現了典型的季節性放緩，對整個行業的活動產生了約兩週的影響，但我們仍然保持了穩健的營運勢頭。我們的車輛週轉率仍然很高。庫存管理保持嚴格，週轉天數限制在 30 天左右。

We also continued to deliver a best-in-class customer experience, achieving a net promoter score of 65, one of the highest in the industry. As our customer base continues to expand, we are seeing strong growing brand recognition and a strengthening of our competitive position.

我們也持續提供一流的客戶體驗，淨推薦值達到 65，是業界最高之一。隨著我們的客戶群不斷擴大，我們的品牌認知度不斷提升，競爭地位也不斷增強。

In our two core markets, Xi'an and Hefei, our local market share has now exceeded 15%. Both locations are showing robust growth and are well on track towards full operational maturity. This year, our priorities in these markets are to scale up inventory, drive further sales growth, and begin contributing positive cash flow to support the next phase of our business expansion.

在我們的兩個核心市場西安和合肥，我們的本地市佔率現已超過15%。兩個工廠均呈現強勁成長勢頭，並有望全面實現營運成熟。今年，我們在這些市場的首要任務是擴大庫存，進一步推動銷售成長，並開始貢獻正現金流，以支持我們業務擴張的下一階段。

We also made a meaningful progress in expanding our superstore network. Our new location in Wuhan began trial operations in February. With the population of 14 million and nearly 5 million registered vehicles, Wuhan is one of China's largest automotive hubs often referred to as the nation's Auto Valley. Compared to Xi'an and Hefei, the used car market in Wuhan is notably more active, making it a strategic choice for introducing our large-format used car retail model in Central China.

我們在擴大超市網路方面也取得了有意義的進展。我們在武漢的新工廠已於二月開始試營運。武漢擁有 1,400 萬人口和近 500 萬輛註冊車輛，是中國最大的汽車中心之一，常被稱為「中國汽車谷」。相較於西安、合肥，武漢二手車市場明顯活躍，是我們向華中地區引進大型二手車零售模式的策略選擇。

Leveraging the operational experience and insights we accumulated from our Xi'an and Hefei stores, our pricing engine has adapted smoothly to the Wuhan market. Accurate pricing allows us to stay competitive at both the sourcing and retail ads, accelerating our market penetration. Meanwhile, the standardized development of our reconditioning facilities and the continuous refinement of our staffing model, which we shaped over several years, have positioned the Wuhan store to scale efficiently from day one.

憑藉我們在西安和合肥門市累積的營運經驗和見解，我們的定價引擎已順利適應武漢市場。準確的定價使我們在採購和零售廣告方面保持競爭力，從而加速我們的市場滲透。同時，我們經過多年努力形成的修復設施的標準化建設和人員配置模式的不斷完善，使得武漢店從第一天起就能高效擴張。

We are encouraged by the strong initial customer response. Our high-quality vehicle inventory and professional customer service has been well received in the local market. Just over three months into trial operations, both sales and inventory at the Wuhan store have been ramping up steadily, with current retail volume already reaching approximately one-third of the combined sales of our two existing stores. Based on this momentum, we expect the Wuhan location to achieve profitability on an accelerated timeline compared to our previous stores.

最初客戶的強烈反應令我們感到鼓舞。我們高品質的車輛庫存和專業的客戶服務在當地市場廣受好評。試營運僅三個多月，武漢店的銷售和庫存就穩定提升，目前零售量已達到我們現有兩家店總銷量的約三分之一。基於這一勢頭，我們預計武漢門店將比我們之前的門市更快地實現盈利。

In the meantime, we are also making solid progress in establishing new superstores in additional major cities. We plan to open two to three new locations later this year, together with the continued growth at our existing stores. These expansions are expected to further drive our operational and financial performance. For the second quarter, we are on track to exceed 10,000 retail vehicle sales, which would represent more than 140% year-over-year growth.

同時，我們在更多主要城市開設新超市的進程也穩步推進。我們計劃在今年稍後開設兩到三家新店，同時繼續擴大現有門市的規模。預計這些擴張將進一步推動我們的營運和財務表現。第二季度，我們的汽車零售銷量預計將突破 10,000 輛，較去年同期成長超過 140%。

So with that, I'd like to turn the call over to our CFO to walk you through the financial results. John, please?

因此，我想將電話轉給我們的財務官，讓他向您介紹財務結果。請問約翰嗎？

(interpreted) Thank you, DK. Hello, everyone. Since we have both domestic and international investors participating today, we will continue to present the company's performance in both Chinese and English to better communicate with all of you.

（翻譯）謝謝你，DK。大家好。由於今天有國內外投資者參加，我們將繼續用中英文兩種方式介紹公司的業績，以便更好地與大家溝通。

So in the first quarter, our retail transaction volume was 7,545 units, representing a very strong 142% year-over-year increase. On a sequential basis, however, retail transaction volume declined 12%, which reflects the typical seasonal slowdown associated with the Chinese New Year holiday.

因此，第一季我們的零售交易量為 7,545 套，年增 142%。然而，與上一季相比，零售交易量下降了 12%，這反映了與中國新年假期相關的典型季節性放緩。

Retail revenue for the quarter was RMB470 million, representing a 73% increase year over year and a 16% decrease quarter over quarter. The average selling price or ASP for retail vehicles was RMB62,000 compared to RMB86,000 in the same period last year. While the ASP declined due to our strategic focus on more affordable inventory structure, the strong growth in transaction volume more than offset the pricing impact and sustained our overall revenue expansion.

本季零售收入為4.7億元人民幣，年增73%，季減16%。零售汽車的平均售價為 62,000 元，而去年同期為 86,000 元人民幣。雖然由於我們的策略重點是更實惠的庫存結構，導致平均售價下降，但交易量的強勁增長足以抵消定價的影響，並維持我們的整體收入成長。

Our current inventory structure is well aligned with the 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.

我們目前的庫存結構與主流消費需求非常吻合，我們相信價格現在已經穩定在合理水準。因此，我們預計短期內平均售價將保持相對穩定。

Now turning to our wholesale business. Our wholesale transaction volume was 719 units in the first quarter, down 23% year over year and 19% quarter-over-quarter. Total wholesale revenue was RMB22.5 million. Combining retail and wholesale, our total revenue for the quarter was RMB504 million, representing a 58% increase year over year and a 16% decline sequentially.

現在轉向我們的批發業務。我們第一季的批發交易量為719套，年減23%，季減19%。總批發收入為人民幣2250萬元。零售和批發業務合計，本季我們的總收入為 5.04 億元，年增 58%，季減 16%。

Gross margin for the quarter was 7%, up 40 basis points from 6.6% a year ago and consistent with the prior quarter. We've maintained the stable margins over the last three quarters. And given the healthy supply and demand dynamics in our key markets, we see meaningful potential for further margin expansion as we scale.

本季毛利率為 7%，較去年同期的 6.6% 上升 40 個基點，與上一季持平。過去三個季度我們保持了穩定的利潤率。鑑於我們主要市場的供需動態健康，我們看到隨著規模擴大，利潤率將有進一步擴大的巨大潛力。

We did see a modest increase in operating expenses this quarter primarily related to the initial ramp-up of our Wuhan Superstore, including investments in staffing and infrastructure. As a result, our adjusted EBITDA loss for the quarter was RMB8.9 million. However, this still represented a significant 78% reduction compared to the same period last year.

本季我們的營運費用確實略有增加，這主要與我們武漢超市的初期擴張有關，包括對人員和基礎設施的投資。因此，本季調整後的 EBITDA 虧損為 890 萬元。但與去年同期相比，仍大幅下降了 78%。

Looking ahead to the second quarter of 2025, we expect retail transaction volume to be in the range of 10,000 to 10,500 units, representing year-over-year growth of over 140%. Total revenue is expected to be between RMB630 million and RMB660 million.

展望 2025 年第二季度，我們預計零售交易量將在 10,000 至 10,500 套之間，年增超過 140%。預計總收入在人民幣6.3億元至人民幣6.6億元之間。

So that concludes our prepared remarks for today. Thank you, everyone. Operator, we are now ready to begin the Q&A session.

今天的準備發言到此結束。謝謝大家。接線員，我們現在可以開始問答環節了。

(Operator Instructions) Fei Dai, TF Securities.

(操作員指令) 戴飛，TF 證券。

(interpreted) Congratulations on the strong retail sales results and the positive outlook. We can see that the new car market in China has recently entered another round of price wars. Could you share how this is impacting your used car business? Thank you.

（翻譯）祝賀零售銷售業績強勁且前景樂觀。我們可以看到，近期國內新車市場又進入了新一輪的價格戰。您能否分享一下這對您的二手車業務有何影響？謝謝。

(interpreted) Thanks for the question. This is DK, and I'll answer that question. It's true that when the price gap between new and used vehicles narrows especially under the same brand, it can influence consumer purchasing behavior.

（翻譯）感謝您的提問。我是 DK，我來回答這個問題。確實，當新車和二手車之間的價格差距縮小時，尤其是同一品牌下的價格差距，會影響消費者的購買行為。

As such, the recent price competition in the new car market has created some pricing pressure on certain used vehicle segments. However, we've experienced similar cycles in the past. And over time, we've built a mature playbook to navigate these challenges and mitigate the impact.

因此，近期新車市場的價格競爭給某些二手車市場帶來了一定的價格壓力。然而，我們過去也經歷過類似的周期。隨著時間的推移，我們已經建立了成熟的策略來應對這些挑戰並減輕影響。

First, we respond swiftly through dynamic pricing to protect our inventory turnover. Our real-time pricing intelligence system continuously scans the broader market for price changes. Once shifts are detected, particularly in the new car segment, we promptly adjust pricing on relevant used car inventory to maintain competitiveness and accelerate sales. So this helps minimize any risk of inventory devaluation.

首先，我們透過動態定價迅速做出反應，以保護我們的庫存週轉率。我們的即時定價情報系統不斷掃描更廣泛的市場以了解價格變化。一旦發現變化，特別是在新車領域，我們會及時調整相關二手車庫存的價格，以保持競爭力並加速銷售。因此這有助於最大限度地降低庫存貶值的風險。

And second, we actively manage the structure of our inventory, nearly new vehicles typically both under three years old, are more sensitive to fluctuations in new car pricing. In response, we maintain a balance and diversify the inventory to -- inventory mix to reduce our exposure to these highly sensitive models during times of volatility.

其次，我們積極管理庫存結構，幾乎所有新車通常都在三年以下，對新車價格的波動更為敏感。作為回應，我們保持平衡並實現庫存多樣化——庫存組合以減少我們在波動時期對這些高度敏感模型的敞口。

Lastly, it's worth noting that this current round of price competition is largely concentrated in the EV -- in the segment. Given that most automakers are already operating with very tight margins, we believe this level of price cutting is not sustainable. In fact, we've seen recent policy signals and commentary from official media channels in China allocating against prolonged excessive discount.

最後，值得注意的是，本輪價格競爭主要集中在電動車領域。鑑於大多數汽車製造商的利潤率已經非常低，我們認為這種程度的降價是不可持續的。事實上，我們看到中國官方媒體最近發出的政策訊號和評論，都反對長期過度折價。

We view this pricing pressure as a short-term situation rather than the long-term structural shift. Overall, we believe the impact of current new car price war on our overall business remains manageable, and we are confident in our ability to achieve our growth objectives for the year.

我們認為這種定價壓力只是短期現象，而非長期結構性轉變。總體而言，我們認為當前新車價格戰對我們整體業務的影響仍在可控範圍內，我們有信心實現今年的成長目標。

Right, that's our answer to your question.

好的，這就是我們對您的問題的回答。

We received another question from Mr. Gary Dvorchak from Water Tower Research. We'll just take this opportunity to ask that as well. The question is, we saw data indicating that used EV transactions in China grew over 20% year over year in Q1 this year. Can you share how much NEVs currently represent in your business -- in your business mix and whether you have plans to increase your NEV exposure in the future?

我們收到了來自 Water Tower Research 的 Gary Dvorchak 先生的另一個問題。我們也想藉此機會問一下這個問題。問題是，我們看到的數據顯示，今年第一季中國二手電動車交易量年增超過20%。您能否分享 NEV 目前在您的業務中所佔的比例，以及您是否計劃在未來增加 NEV 的曝光率？

(interpreted) Yes. This is DK, and I will answer this question. You are right, China's EV market is growing rapidly in the new car segment, and EVs now account for over 50% of total sales. From a broader market perspective, NEVs currently represent about 9% of China's total vehicle population, which stands at around RMB350 million. This indicates that the NEV segment is still in the early stage of structural expansion with significant headroom for long-term growth.

（翻譯）是的。我是DK，我來回答這個問題。您說得對，中國的電動車市場在新車領域正在快速成長，電動車目前佔總銷量的 50% 以上。從更廣大的市場角度來看，目前新能源車約佔中國汽車總保有量的9%，保有量約3.5億元。這表明新能源汽車領域仍處於結構性擴張的早期階段，具有很大的長期成長空間。

We are actively tracking this trend in the used car space. According to the China Automobile Dealers Association, approximately 400,000 used NEVs were transacted nationwide from January through April up from more than -- up more than 30% year over year, accounting for roughly 7% of total used car transactions.

我們正在積極追蹤二手車領域的這一趨勢。根據中國汽車流通協會統計，今年1至4月，全國二手新能源汽車交易量約40萬輛，較去年同期成長逾30%，約佔二手車交易總量的7%。

At Uxin, NEVs accounted for approximately 9% of our retail unit sales from January through April of 2025, representing more than 100% year-over-year growth. This is above the national average and reflects both increasing demand and our ability to capture a meaningful share of this emerging segment.

在優信，2025 年 1 月至 4 月，新能源汽車約占我們零售量 9%，較去年同期成長超過 100%。這高於全國平均水平，反映了不斷增長的需求以及我們在這一新興領域佔據重要份額的能力。

With that said, we do not manage our inventory based on fuel type. Our sourcing inspection, reconditioning, pricing, and sales systems are well established and technology-driven. As long as a vehicle meets our quality standards, it will be listed in our inventory regardless of its powertrain type.

話雖如此，我們並沒有根據燃料類型來管理庫存。我們的採購檢驗、修復、定價和銷售系統完善且由技術驅動。只要車輛符合我們的品質標準，無論其動力系統類型如何，它都會列在我們的庫存中。

We fully embrace the structural evolution of China's auto market as the NEV market continues to expand its share within -- our business will naturally increase. We are well prepared to support this transaction and to support this transition and capture the long-term growth opportunities it will bring us. So that's the answer that we have for the question.

我們完全接受中國汽車市場的結構性演變，因為新能源汽車市場份額不斷擴大——我們的業務自然會增加。我們已做好充分準備來支持此次交易、支持此次轉型並抓住它將為我們帶來的長期成長機會。這就是我們對這個問題的答案。

This will conclude our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想將會議交還給管理階層，請他們發表結束語。

All right. Thank you all for joining us today. We look forward to speaking with you next quarter. Thank you.

好的。感謝大家今天的參與。我們期待下個季度與您交談。謝謝。

Thank you. Bye-bye.

謝謝。再見。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中的英文陳述是由現場翻譯人員宣讀的。翻譯由贊助此活動的公司提供。