Shares of Uxin Limited (NASDAQ: UXIN), a leading used car retailer in China, plummeted 5.05% in Thursday's trading session, despite reporting strong year-over-year growth in its first-quarter results for 2025. The significant drop appears to be driven by investors' concerns over sequential declines in key metrics and ongoing profitability challenges.

While Uxin reported a 73% year-over-year increase in retail revenue to RMB466 million and a 141.5% surge in retail transaction volume to 7,545 units, the company experienced a sequential decrease of 11.8% in retail transaction volume from the previous quarter. Total revenues of RMB504.2 million also represented a 15.5% decline from the last quarter, which may have spooked some investors.

Despite improvements in gross margin and a narrowing net loss, Uxin still reported a net loss of RMB51.4 million for the quarter. The company's ongoing struggle to achieve profitability, combined with the sequential declines in key metrics, likely contributed to the negative market reaction. However, Uxin remains optimistic, projecting retail transaction volume to exceed 10,000 units in the second quarter, which would set a new record for the company.