Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Over the past year, the company's cash balance has remained relatively low. Could you update us on the current cash position and whether it is sufficient to support future business development, including the investment in new superstores? A: (Feng Lin, CFO) We have prioritized capital allocation to expand inventory levels, resulting in a low cash balance. However, we completed a $27.8 million financing agreement in March 2025, with $19 million already funded. This has significantly improved our cash position. Our financial resources are now deemed sufficient to support operations and new superstore investments, with phased capital expenditures and support from local governments and financial institutions.
Q: The company's stock price has increased notably over the past year. Could management share your views on the current stock performance? A: (Feng Lin, CFO) The increase reflects investor interest in China's used-car industry and confidence in Uxin's growth prospects. China's used-car market presents significant growth opportunities, and Uxin's differentiated superstore model is well-positioned to capitalize on this. We expect sustained high growth and are focused on executing our strategy and delivering operational excellence to create long-term shareholder value.
Q: Given the recent trade tensions between China and the US, how does management view the outlook for China's used-car market in 2025? Are there any major challenges anticipated? A: (Kun Dai, CEO) Trade tensions may impact the new car industry, but we expect minimal direct impact on the used-car market. The Chinese government has introduced measures to stimulate domestic demand, including expanding trade-in subsidies. We remain optimistic about the market outlook and expect to maintain over 100% growth in retail sales volume, outpacing industry averages.
Q: What are the company's plans for regional expansion and new superstore openings in 2025? A: (Kun Dai, CEO) We plan to open two to four new superstores in key regional markets, including Wuhan and Zhengzhou. Our Wuhan superstore began trial operations in February 2025, and Zhengzhou is on track to open in the second half of the year. We aim to achieve over 100% growth in retail transaction volume and deliver our first full-year positive adjusted EBITDA.
Q: How is Uxin leveraging digital technologies to enhance its operations? A: (Kun Dai, CEO) We are integrating large language models into our business processes to enhance efficiency in pricing, vehicle reconditioning, and customer acquisition. This digital transformation enables greater standardization and scalability, supporting the expansion of our superstore model and improving operational execution.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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