Uxin (UXIN) Q2 2026 Earnings Call Transcript

UXIN posted 75% revenue growth to RMB 1.51 billion in Q2 2026, driven by an 89% surge in retail transaction volume to 19,610 units. The used-car platform swung to a negative 0.7% gross margin as rapid new-car price declines pressured inventory values, a sharp reversal from prior quarters.

Management expects margins to recover above 6% in Q3 as the company completes an inventory reset. The firm is maintaining a 20-day inventory turnover target, supported by AI-driven pricing systems designed to adjust faster to falling vehicle values.

UXIN is expanding its physical footprint with six new superstore locations under development. The expansion comes as China's auto market faces deflation pressure from overcapacity and aggressive manufacturer discounting, particularly in the electric vehicle segment where price cuts have accelerated in recent months.

The margin compression highlights execution risk as the company scales: faster sales growth doesn't guarantee profitability when asset values decline faster than inventory turns. The Q3 guidance will test whether management's pricing algorithms can stabilize unit economics amid continued market volatility.