Uxin Limited ADS 2027 Q2 Earnings Call

Hello, everyone. Welcome to Uxin's Earnings Conference Call for the second quarter ended June 30, 2026. On the call with me today, we have DK, our founder and CEO, and Feng 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. Now with that, I'll turn the call over to our CEO, DK. Please go ahead, sir. 大家好，很高兴再次通过电话会议的形式与各位投资者交流。感谢大家来参加我们的业绩电话会。今天我想先介绍一下本季度的经营情况，并分享我们针对市场变化所做的一些调整。 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.

2026年，汽车行业进入了淘汰赛。新车市场今年以来持续承压。二季度国内新车乘用车销量同比下降超过20%，其中燃油车降幅接近40%。相比之下，二手车市场需求表现出更强的韧性。二季度全国二手车交易量同比减量约1.4%。但新车，尤其是燃油车价格的快速下探，也持续向二手车市场传导，加速了行情的出清。上半年约有近3万家实体二手车商退出了行业，预计全年要退出5到6万家，整个二手车行业将淘汰超过20%。 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. 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.

二季度，优信业绩表现显著优于行业大盘。我们的零售销量达到19,610台，同比增长89%，环比增长19%。客户净推荐值NPS继续维持在68的行业最高水平。二季度的价格波动对我们的毛利造成了阶段性影响，我们也主动加快了库存调整和车辆出清。进入三季度以后，我们的单车盈利快速恢复，预计三季度整体毛利率将重新回到6%以上。 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%.

今年以来，我们也在持续推进业务数字化和系统化的升级。随着交易数据不断积累，我们的定价系统在定价准确率、车辆覆盖率和响应时效性方面都有了明显的提升，能够更加快速准确地应对市场变化。定价能力的提升也直接反映在了经营效率上。目前我们的整体周转率已经从过去的30天左右缩短到了20天左右。 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.

我们认为2026年会成为中国二手车行业模式迭代的起点。传统经营模式正在加速地退出，行业正在从过去相对分散、非标准化的经营方式，逐步向规模化、标准化和数字化的零售模式转变。未来两三年也将是中国二手车市场格局重新形成的关键阶段。 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.

在这个过程中，优信会继续保持领先地位。过去几年我们已经完成了超级卖场模式的验证，并在车辆定价、检测、整备、库存周转和客户服务等核心运营能力上持续积累优势。现在我们能够保持20天左右的高速库存周转，并拥有良好的单车盈利水平。现有卖场的销量和运营效率将会持续爬坡。新卖场包括银川、广州、无锡、重庆、石家庄和绍兴之类的六个项目正在建设。同时，我们也在稳步推进与更多城市新的合作，持续扩大优信仓储卖场在全国范围内的布局。 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. 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.

最后，我想分享一下我们三季度的经营展望。我们当前的周转和利润都回到了健康和良性的水平，但我们总体判断当前车市风险依旧存在且高企。因此我们整体会采用审慎的经营策略，将库存周转、单车盈利和资金效率放在更重要的位置。我们预计三季度零售销量将达到20,500台到21,000台之间，继续保持接近50%的同比增长。 Finally, I would like to share our outlook for the third quarter.