Uxin grows sales sharply but swings to a negative gross margin

Uxin ($UXIN) reported quarterly revenue of RMB1.151 billion, up 74.9%, as retail vehicle sales increased 88.8% to 19,610. The used-car retailer’s gross margin nevertheless fell to negative 0.7% from positive 5.2%. Its adjusted EBITDA loss widened to RMB119.8 million from RMB16.5 million, and the operating loss reached RMB151.9 million.

Management said new-car price cuts pressured used-vehicle values and prompted faster inventory clearance. For the following quarter, Uxin expects retail sales of 20,500–21,000 vehicles and a gross margin above 6%. That projected margin recovery has not yet been demonstrated in reported results. The update highlights a substantial increase in sales volume alongside deteriorating unit economics, rather than a straightforward improvement in operating performance.

Sources:

• Uxin — unaudited quarterly results