Uxin Stock Skyrockets 83% on Retail Shift and Strong Earnings

Barchart · 09/27 19:32

Shares of Uxin Ltd. (NASDAQ: UXIN), China’s leading online used-car dealer, surged dramatically following the release of its fiscal first-quarter 2025 results, which revealed substantial improvements in revenue and a narrowing of losses. The company’s shift in focus to retail transactions, alongside strategic operational adjustments, has fueled optimism among investors that Uxin is poised to achieve profitability by year’s end.

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Q1 Revenue Soars as Retail Strategy Takes Hold

Uxin’s revenue for the fiscal year Q1 2025, jumped by 39% year-over-year to RMB $401.2 million (USD $55.2 million). This robust growth was driven by a 72% increase in transaction volume, with the company selling 5,605 units, up from 3,254 units in the same quarter of the previous year. A significant portion of this growth came from retail sales, which accounted for 4,090 units, marking a 142% year-on-year increase.

The company’s CEO, Kun Dai, highlighted the success of its retail strategy, stating:

“Our vehicle turnover efficiency remains healthy, with inventory turnover days around 30. Alongside our robust sales growth, customer satisfaction has also improved as our Net Promoter Score reached 65 during the quarter, the highest level in the industry.”

Narrowing Losses and Path to Profitability

Uxin’s operational improvements were not limited to sales volume. The company also reported a significant reduction in its adjusted EBITDA loss, narrowing it from RMB $46.6 million (USD $6.6 million) in the same period last year to RMB $33.9 million (USD $4.8 million) this quarter. Uxin expects to reduce its losses further in the upcoming quarter, projecting an EBITDA loss of less than RMB $10 million (USD $1.4 million), with profitability anticipated in the December quarter.

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CFO John Lin expressed optimism for continued improvement, noting:

“With the market gradually recovering and the increased penetration of our value-added services, we anticipate further room for gross margin improvement going forward.”

Despite the strong sales performance, the company faced challenges, including a drop in the average selling price (ASP) of retail vehicles, which fell from RMB $111,000 (USD $15,830) to RMB $79,000 (USD $11,266) year-on-year. This decline was offset by the surge in transaction volume, allowing Uxin to maintain solid revenue growth. However, the company’s gross margin remained relatively flat at 6.4%, up slightly from 6.1% a year ago.

Outlook: Expansion and Future Growth

Looking ahead, Uxin expects continued momentum, forecasting retail sales to reach up to 6,000 units in the next quarter, representing a 40% increase from the previous quarter. The company’s strategic expansion of its superstore network, particularly through new partnerships in cities like Zhengzhou, is expected to further bolster its market position and drive additional growth.

As Uxin continues to capitalize on China’s recovering used-car market and refine its retail model, the company is positioned for a potential financial turnaround. If it achieves its goal of reaching EBITDA profitability by the end of the year, Uxin may solidify its status as a key player in China’s automotive retail sector.

UXIN Stock Price Action & Chart

Uxin Ltd. (NASDAQ: UXIN) continued its impressive turnaround today as shares of UXIN stock broke out in epic fashion, rising 83.75% to close the day at $5.20 per share.

Crucially, UXIN stock blew past and closed above its previous high mark of $3.63.

To provide further confirmation of the validity of the breakout, today’s UXIN stock trading volume was 46,548,891, a whopping 1,233% increase over its average volume of 3,492,219.

Over the past month, UXIN stock has risen 222.98%.

YTD, UXIN stock is down -26.76%.

Uxin Ltd., ticker symbol UXIN six-month candlestick stock chart.
Uxin Ltd. (NASDAQ: UXIN) six-month interactive stock chart. (Source: Barchart) – Click chart to enlarge

View Uxin Ltd. Interactive Stock Chart on Barchart

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