Question · Q3 2025
Dai Wenjie with SWS Research inquired about the sustainability of Uxin's current gross margin level, which reached a three-year high of 7.5% this quarter, and what factors could further drive future margin improvements.
Answer
John Lin, CFO of Uxin, explained that the 7.5% gross margin is a new high driven by stabilized new car pricing and improved profitability at existing Xi'an and Hefei superstores (exceeding 8%), as well as the ramp-up of the Wuhan superstore. He highlighted future drivers including continued stable vehicle prices, enhanced data-driven pricing accuracy, and increased penetration of high-margin value-added services, targeting a long-term gross margin of around 10%.
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