Uxin Q2 2027 Earnings Report

Uxin EPS Results

• Actual EPS: -$0.11
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Uxin Revenue Results

• Actual Revenue: $169.44 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Uxin Announcement Details

• Quarter: Q2 2027
• Date: 9/24/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, September 24, 2026
• Conference Call Time: 8:00AM ET

Uxin (NASDAQ:UXIN) Limited (NASDAQ: UXIN) is a China-based used automobile retailer and e-commerce company. The company operates an online platform that connects consumers with used vehicles and supports the purchase and sale of cars through digital tools and related transaction services.

Uxin’s business activities have included vehicle sourcing, inspection and reconditioning, pricing information, online listings, sales assistance, and vehicle delivery. The company has also offered services designed to support used-car transactions, such as financing and other automotive-related solutions, subject to applicable regulations and market conditions.

Founded in 2015, Uxin initially developed as an online used-car marketplace before expanding toward an integrated retail model. Its operations have focused primarily on the Chinese market, with services intended to facilitate used-vehicle transactions across different regions of the country. Dai Kun, the company’s founder, has served as Uxin’s chief executive officer.

Uxin Q2 2027 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Uxin’s Q2 retail volume rose 89% year over year to 19,610 vehicles, while revenue increased 75% to RMB1.151 billion. Management expects Q3 volume of 20,500–21,000 vehicles, revenue of RMB1.16–1.19 billion, and nearly 50% year-over-year growth.
• Positive Sentiment: Management said inventory turnover has improved to approximately 20 days, supported by AI-driven pricing and integrated operating systems. Uxin views this as a long-term operating target that can reduce price-risk exposure and improve capital efficiency.
• Negative Sentiment: Rapid used-car price declines, particularly for internal-combustion vehicles, drove Q2 gross margin to negative 0.7% from 7% in the prior quarter and contributed to a RMB120 million adjusted EBITDA loss. Management expects gross margin to recover above 6% in Q3 as inventory is reset, but acknowledged that market risks remain elevated.
• Negative Sentiment: Industry conditions remain weak, with July and August used-car transactions down 6% and 11% year over year, respectively. Management expects continued consolidation, estimating that 50,000–60,000 used-car dealerships could exit the market in 2026, although it believes this may benefit scaled and digital operators such as Uxin.
• Positive Sentiment: NIO Capital has funded an additional $4 million and confirmed plans to complete its remaining $4 million investment at $2.86 per ADS. Separately, the CEO established a Rule 10b5-1 plan to purchase up to $5 million of ADS at no more than $2.85 per ADS, with purchases eligible to begin September 28.

Presentation

[Operator]

Ladies and gentlemen, thank you for standing by, and welcome to Uxin Earnings Conference Call for the Quarter Ended June 30th, 2026. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a Q&A session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time.

[Operator]

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

[Ally Wang, Investor Relations at Uxin]

Thank you, operator. Hello, everyone. Welcome to Uxin's earnings conference call for the second quarter ended June 30th, 2026. 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. 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.

[Ally Wang, Investor Relations at Uxin]

Now with that, I'll turn the call over to our CEO, DK. Please go ahead, sir.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Hello, everyone, and thank you for joining Uxin's earnings conference call today. It is a pleasure to reconnect with our investors through this call, and we appreciate your continued interest and support. I would like to begin with an overview of our operating performance this quarter, and then discuss some of the adjustments we have made in response to changing market conditions.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

2026 has become a year of accelerated consolidation for China's automotive industry. The new car market has remained under pressure since the beginning of the year. In the second quarter, new passenger vehicle sales in China declined by more than 20% year-over-year, with internal combustion engine, or ICE, car sales down nearly 40%. By comparison, demand in the used car market has shown greater resilience, with nationwide used car transactions declining by only about 1.4% year-over-year in the second quarter. However, the rapid decline in new car prices, particularly for ICE cars, continued to flow through to the used car market, accelerating industry consolidation.

[Ally Wang, Investor Relations at Uxin]

Nearly 30,000 brick-and-mortar used car dealerships exited the market during the first half of the year, and we expect 50,000-60,000 dealerships to exit for the full year, representing more than 20% of the industry.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Uxin significantly outperformed the broader market in the second quarter. Our retail transaction volume reached 19,610 units, up 89% year-over-year and 19% sequentially. Our Net Promoter Score, or NPS, remained at 68, continuing to rank among the highest in the industry. Price volatility during the second quarter had a temporary impact on our growth margin, and we proactively accelerated inventory adjustments and sell-through. Since the beginning of the third quarter, our per unit profitability has recovered rapidly, and we expect our overall growth margin to recover to above 6%.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Since the beginning of this year, we have also continued to advance the digitalization of our business while systematically upgrading our operations. As we accumulate more transaction data, our pricing system has improved significantly in pricing accuracy, coverage, and response time, enabling us to respond to market changes more quickly and accurately. These improvements in our pricing capabilities are also reflected in our operating efficiency. Our overall inventory turnover has now shortened from approximately 30 days to approximately 20 days.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

We believe 2026 could mark the beginning of a new phase in the evolution of China's used car industry. Traditional operating models are rapidly losing ground, while the industry is gradually shifting from a fragmented and non-standardized model toward a more scaled, standardized, and digitalized retail model. We believe the next two to three years will be a critical period for the reshaping of China's used car market.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Throughout this transition, Uxin will continue to maintain its leading position. Over the past several years, we have validated our super store model and continued to strengthen our core operating capabilities across vehicle pricing, inspection and reconditioning, inventory turnover, and customer service. Today, we are able to maintain a rapid inventory turnover of approximately 20 days while achieving healthy per unit profitability. Sales volumes and operating efficiency at our existing super stores will continue to ramp up, while six new super stores in Yinchuan, Guangzhou, Wuxi, Chongqing, Shijiazhuang, and Shaoxing are currently under development.

[Ally Wang, Investor Relations at Uxin]

At the same time, we are steadily advancing discussions with additional cities on new partnerships as we continue to expand our warehouse-style super store network nationwide.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Finally, I would like to share our outlook for the third quarter. Our inventory turnover and profitability have both returned to healthy levels. However, we believe risks in the automotive market remain elevated. We are therefore maintaining a prudent operating approach, placing greater emphasis on inventory turnover, per unit profitability, and capital efficiency. For the third quarter, we expect retail transaction volume to reach between 20,500 and 21,000 units, representing year-over-year growth of nearly 50%.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

With that, I will turn the call over to our CFO to walk you through the financial results. John, please.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Thank you, DK. Hello everyone, I will now walk you through our financial performance.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

In the second quarter, our retail transaction volume reached 19,610 units, up 89% year-over-year and 19% sequentially. Despite continued pressure across the broader automotive market, we maintained inventory turnover of approximately 30 days and delivered business growth well above industry levels.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Retail vehicle sales revenue totaled RMB 1.08 billion, up 78% year-over-year and approximately 7% sequentially. The average selling price, or ASP, of our retail vehicles was RMB 55,000, compared with RMB 59,000 in the same period last year and RMB 61,000 last quarter. While lower market prices resulted in a decline in ASP, the rapid growth in sales volume offset this impact. Our current price range covers the car buying needs of the vast majority of mainstream consumers. As price volatility in the automotive market gradually eases, we do not expect ASP to decline significantly from current levels and expect it to remain relatively stable overall.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Turning to our wholesale business. Our wholesale transaction volume was 2,289 units in the second quarter, up 88% year-over-year and 36% sequentially. Total wholesale revenue was RMB 37.4 million. Combining both retail and wholesale, total revenue for the quarter reached RMB 1.151 billion, up 75% year-over-year and 7% sequentially.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

During the second quarter, auto prices, particularly prices for new ICE cars, underwent a rapid adjustment over a relatively short period, which had a direct impact on the gross margin of our existing inventory. We also proactively accelerated the sell through of cars affected by these price fluctuations. As a result, our gross margin fluctuated significantly during the quarter, reaching negative 0.7%, compared with 5.2% in the same period last year and 7% in the previous quarter.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

With the earlier inventory reset now largely complete and inventory turnover further accelerating, we have achieved a more stable and efficient balance between procurement and sales. Since the beginning of the third quarter, our per unit profitability has recovered significantly, and we expect our overall gross margin to recover to above 6% in the third quarter.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Turning to expenses. We continue to maintain strict cost discipline. Despite the continued expansion of our business and superstore network, our sales and marketing expenses remained broadly stable during the quarter. Adjusted EBITDA loss was RMB 120 million, primarily reflecting the temporary impact of the lower growth margin.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Moving to our outlook for the third quarter. We are accelerating inventory turnover while maintaining a prudent inventory procurement strategy. We expect retail transaction volume to be between 20,500 and 21,000 units, with total revenue between RMB 1.16 billion and RMB 1.19 billion, and gross margin recovering to above 6%. As our gross margin recovers and operating efficiency improves, we expect our profitability to improve further.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Finally, I would like to provide an update on our financing. We recently received $4 million in investment proceeds from NIO Capital, and the closing of the remaining $4 million investment is proceeding as planned. NIO Capital has confirmed that it will proceed with the remaining investment at $2.86 per ADS. Meanwhile, Joy Capital is also actively advancing the overseas direct investment or ODI filing process for its investment in the company.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

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

[Operator]

We will now begin the question and answer session.

[Ally Wang, Investor Relations at Uxin]

[Non-English content] We received three questions from investors. The first question is, Uxin has further shortened its inventory turnover from approximately 30 days to around 20 days. Could management discuss how you have been able to achieve such rapid turnover? Is this primarily the result of proactively reducing inventory in response to the current market environment, or is this an operating level you expect to maintain over the long term?

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Thank you for the question. There are several factors behind our ability to shorten inventory turnover from approximately 30 days to around 20 days. First, we have been applying AI across our operations. A range of technology capabilities we have developed and upgraded are gradually being deployed across key areas such as pricing, price adjustments and risk alerts. The accuracy, coverage and response speed of our pricing capabilities have continued to improve, and we are already seeing a meaningful improvement in inventory turnover efficiency.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Second, we have further integrated our end-to-end operating systems. We continue to upgrade our core systems across inspection and reconditioning, inventory management and CRM, using technology to improve our assessment of car conditions, market demand, and customer needs, and to increase the efficiency of car matching and transactions. As these different parts of our operations become more closely connected, the overall efficiency from procurement through sales has also improved.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

The longer a used car remains in inventory, the greater the price risk we assume. Faster turnover significantly reduces our risk exposure and helps limit inventory impairment losses when the market fluctuates. Therefore, when viewed across a full operating cycle, faster turnover does not come at the expense of per unit profitability. Instead, it helps us achieve more stable and healthier overall per unit profitability. At the same time, faster turnover allows the same amount of inventory capital and the same workforce to support a larger sales volume. As workforce and capital efficiency continue to improve, we also expect to unlock greater operating leverage.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

For us, inventory turnover of around 20 days is not a short-term defensive strategy. It is a core operating target that we intend to maintain over the long term.

[John Lin, CFO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Thank you. That is my answer.

[Ally Wang, Investor Relations at Uxin]

[Non-English content] The second question is, the automotive market experienced a significant adjustment in the second quarter. Could management share what you have been seeing recently in terms of used car market conditions and the competitive landscape? How do you view the industry outlook for the remainder of 2026?

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Thank you for the question. Based on recent market performance, overall auto consumption remains relatively weak. Nationwide passenger vehicle retail sales declined by more than 20% year-over-year in both July and August, with ICE car retail sales down approximately 40%. This pressure has also carried over into the used car market. Nationwide used car transactions declined by 6% year-over-year in July and by 11% in August.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

On pricing, we believe the most severe adjustment occurred in the second quarter. New car prices, particularly prices for ICE cars, declined rapidly over a relatively short period, which had a significant impact on used car prices. Since the beginning of the third quarter, the market has remained under some pressure, but we have not seen the kind of sharp monthly declines that occurred in the second quarter. Overall market conditions are gradually stabilizing.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

At the same time, industry consolidation is continuing. Nearly 30,000 brick-and-mortar used car dealerships exited the market in the first half of this year, and we expect 50,000-60,000 dealerships to exit the market for the full year, representing more than 20% of the industry. We believe this market adjustment will accelerate the reshaping of the industry, with market share becoming increasingly concentrated among companies with scale, standardized operations, and digital capabilities.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

For Uxin, this also creates an opportunity to gain market share. We have maintained a relatively prudent approach to inventory procurement in the third quarter while shortening inventory turnover to around 20 days. At the same time, we expect our retail transaction volume to continue growing by nearly 50% year-over-year, significantly outperforming the broader industry.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

The fourth quarter is typically a peak season for the used car market. Our current view is that market volatility is unlikely to be as severe as it was in the second quarter, although risks remain. We will therefore adjust our inventory levels prudently based on market conditions. If prices stabilize further, we will accelerate inventory procurement; if volatility persists, we will continue to maintain rapid inventory turnover and drive sales growth through fast turnover and greater capital efficiency to reduce the impact of price fluctuations.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

That's my answer.

[Ally Wang, Investor Relations at Uxin]

[Non-English content] The third question is: the company previously announced a plan by the CEO to purchase additional company shares. Could management provide an update on the execution of this plan?

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

Thank you for the question. Over the past few years, we have validated our warehouse style superstore model and begun expanding our footprint nationwide. Our sales volume, operating efficiency, and core capabilities have all continued to improve. I believe the company is moving in the right direction. Given the recent performance of our share price I decided to use my own funds to purchase additional Uxin shares in the open market as a tangible demonstration of my confidence in the company's long-term value.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

As previously announced, an entity controlled by me established a Rule 10b5-1 trading plan on June 30th to purchase up to $5 million of the company's ADS at a price of no more than $2.85 per ADS. Following the required 90-day cooling-off period, purchases under the plan will be eligible to begin on September 28th.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

The timing and pace of purchases will be determined in accordance with the pre-established trading plan and will strictly comply with Rule 10b5-1 and other applicable securities trading rules. The actual amount that can be purchased on any given day will also be subject to factors such as the recent trading volume of the company's ADS. As a result, the purchases will be carried out gradually over time.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

I remain highly confident in the company's long-term development. Through these purchases, I also hope to further align my personal interests with the long-term interests of the company and all of our shareholders.

[Kun Dai, Founder and CEO at Uxin]

[Non-English content]

[Ally Wang, Investor Relations at Uxin]

That's my answer. Thank you.

[Operator]

This concludes our question and answer session. I would like to turn the conference back over to Ally Wang for any closing remarks.

[Ally Wang, Investor Relations at Uxin]

Thank you again for joining today's call and for your continued support in Uxin. We look forward to speaking to you again soon.

[Operator]

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

Participants

Executives

• Ally Wang, Investor Relations
• Kun Dai, Founder and CEO
• John Lin, CFO