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Uxin Limited Reports Financial Results for Q1 2026

Uxin Limited, the foremost used car retailer in China, has recently announced its unaudited financial results for the first quarter ending March 31, 2026. This report unveils both the challenges and the significant year-over-year growth experienced by the company amid seasonal variations.

Transaction Volume Insights

For the quarter, Uxin recorded a total transaction volume of 18,211 units, representing a decrease of 15.8% from the previous quarter’s 21,634 units but showing a significant increase of 120.4% compared to the same period last year. The retail transaction volume specifically amounted to 16,530 units, reflecting a decline of 13.7% from the prior quarter but up 119.1% year-over-year.

Financial Performance Summary

Total revenues for the first quarter were reported at RMB 1,073.7 million (approximately USD 155.6 million), marking a decrease of 10.4% from the previous quarter but up 112.9% from RMB 504.2 million in Q1 of the previous year. The gross margin slightly improved to 7.0%, compared to 6.8% in the last quarter and stable against last year’s figure.

Despite these figures showing impressive growth, Uxin recorded a loss from operations amounting to RMB 66.6 million (USD 9.7 million) for the quarter, compared to RMB 58.7 million from the prior quarter, indicating the ongoing struggle to achieve profitability amidst rapid expansion.

Operational Insights

Kun Dai, the Founder and CEO of Uxin, noted that even with the seasonal challenges from the Chinese New Year holiday, the resilience seen in the retail transaction volume, which marked the eighth consecutive quarter of over 110% growth year-over-year, was a positive indicator of their operational strength. Stability in inventory turnover days at around 30 days and improvements in their net promoter score (NPS) to 68 further highlight the company’s commitment to maintaining customer satisfaction and brand reputation.

The launch of new superstores, including the Tianjin Superstore, indicates Uxin's strategy to ramp up their operations, aiming for over 100% year-over-year growth in retail transactions throughout 2026. CFO Feng Lin emphasized that the first quarter's revenue growth was primarily fueled by the continuing maturation of existing superstores and investments in new locations.

Recent Developments and Outlook

Uxin’s strategic endeavors include an investment agreement with Hebei Chengying, aimed at establishing a new subsidiary, and the announcement of a new superstore project in Chongqing. These initiatives reflect Uxin's commitment to enhancing its market presence in key regions including southwest China.

Looking ahead, Uxin anticipates retail transaction volumes to reach between 18,000 and 19,000 units for Q2 2026, further estimating total revenues ranging between RMB 1,050 million and RMB 1,100 million.

Despite facing liquidity challenges, with accumulated deficits and current liabilities exceeding current assets, Uxin remains optimistic. The planned equity and loan financings, alongside an anticipated increase in vehicle sales, aim to bolster financial stability.

Overall, while Uxin Limited faces operational challenges, its growth trajectory in the used car retail market showcases significant potential and resilience amidst the fluctuating economic landscape of China’s automotive industry.