K Car Co Ltd (XKRX:381970) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic …

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Tue, February 10, 2026 at 4:00 PM GMT+9 4 min read

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This article first appeared on GuruFocus.

Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

K Car Co Ltd (XKRX:381970) achieved a 6% increase in full-year revenue, reaching 2 trillion CNY, with gross profit and operating profit increasing by 8% and 11.5% respectively, marking an all-time high.

The company's 'My Car' platform has surpassed 100,000 registered vehicles since its launch, indicating strong early traction and potential for long-term growth.

K Car Co Ltd expanded its market share to 12.7% despite a 2.2% decline in the global used car market, showcasing its competitive strength.

The company maintained a high inventory turnover rate of 11.1 times and a DIO of 33 days, reflecting efficient inventory management.

K Car Co Ltd plans to launch new C2C secure direct trading services and B2C consignment sales, aiming to expand its serviceable addressable market and enhance customer experience.

Negative Points

The global used car market experienced a 2.2% decline in registered vehicles due to financial market volatility and economic slowdown concerns.

The number of units sold in Q4 decreased by 1.3% year-over-year, attributed to fewer business days due to Korean Thanksgiving holidays.

Retail GPU declined in Q4 due to seasonality and model changes, impacting margins.

The company anticipates intensified competition in the used car market as institutionalized players expand and new entrants join.

Despite a rise in ASP, some demand remained sidelined due to high interest rates and economic uncertainty, leading to a slight decrease in the number of vehicles sold.

Q & A Highlights

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Q: What is the reason for the decrease in the number of registered vehicles in 2025, and how was K Car Co Ltd able to grow despite this? What is your outlook for the market in 2026? A: This is Yingkkong, the CEO. The decline in registered vehicles in 2025 was primarily due to high interest rates and constrained consumer sentiment. Despite this, K Car Co Ltd achieved growth above the market average due to our structural competitiveness, including our unique OMO sales structure and data-driven purchasing strategies. For 2026, we expect interest rates to stabilize, potentially leading to a partial recovery in demand, although competition is expected to intensify.

Q: Could you explain the “My Car” platform and its strategic implications? What are your future monetization directions? A: This is Hui Yi Chang, Head of Marketing. “My Car” is a strategic platform designed to extend customer touchpoints across the vehicle ownership lifecycle. It has surpassed 100,000 registered vehicles, indicating our evolution into a platform operator. It serves as an effective sourcing channel and enhances user engagement. We plan to provide more content related to car maintenance and partner with insurance companies and repair shops to offer real value to customers. While currently in the platform-building phase, we expect it to become a key strategic asset in the mid to long-term.

Story Continues  

Q: Considering the new plans for center openings and business expansion in 2026, what is the expected investment size and impact on costs? A: This is the CFO. We plan to make selective investments without compromising financial stability. New center openings are targeted for the second half of the year in regions with high demand. We will maintain consistent CapEx relative to revenue. New businesses will follow an asset-light structure, minimizing short-term cost impacts. These initiatives are expected to diversify revenue streams and improve returns on investment over time.

Q: Can you provide an update on the sale of K Car Capital and its potential impact on customer relationships? A: This is the CFO. We do not have any cross-holdings or equity interest in K Car Capital, so we cannot comment on the sale. Any partnership with financial companies is based on contractual terms, and changes in ownership will not affect our operations or customer relationships.

Q: Can you provide guidance on the expected performance for 2026? A: This is the CFO. We expect growth in both top-line and bottom-line in 2026, with contributions from new businesses. The launch of our C2C trading services will be capital-light and contribute to revenue growth. Initially, sales may grow faster than earnings, but we aim to establish the service and grow transaction size. In the mid to long-term, we expect improvements in earnings as new businesses scale.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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