ATRenew : RERE 1Q25 Earnings Call Transcript Corrected vf

Published: 2025-05-21 00:54:04 ET RERE

Published on 05/21/2025 at 00:54

Kerry Chen, Founder, Chairman, CEO Rex Chen, CFO

Jeremy Ji, Director of Corporate Development, Investor Relations

Joyce Ju, BofA Securities Jiao Wan, CICC

Michael Kim, Zacks

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to

ATRenew Inc.'s first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks. Please note today's event is being recorded.

I will now turn the call over to the first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the Company. Please go ahead, Sir.

Thank you. Hello, everyone, and welcome to ATRenew's first quarter 2025 earnings conference call. Speaking first today is Kerry Chen, our Founder, Chairman, and CEO, and he will be followed by Rex Chen, our CFO. After that, we'll open the call to questions from the analysts.

The first quarter 2025 financial results were released earlier today. The earnings press release and investor slides accompanying this call are now available at our IR website: ir.atrenew.com. There will also be a transcript following this call for your convenience.

For today's agenda, Kerry will share his thoughts of our quarterly performance and business strategy, followed by Rex, who will address the financial highlights. Both Kerry and Rex will participate during the Q&A session.

Please note our Safe Harbor statements. Some of the information you will hear during our discussion today will consist of forward-looking statements, and I refer you to our Safe Harbor statements in the earnings press release. Any forward-looking statements that management makes on this call are based on assumptions as of today, and that ATRenew does not take any obligations to upgrade our assumptions on these statements.

Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press release which contains a reconciliation of non-GAAP measures to GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB and all comparisons are on a year-over-year basis.

I'd now like to turn the call over to Kerry for business and strategy updates.

(Speaking Mandarin)各位投资者和分析师，大家好，欢迎参加万物新生集团 2025 年第一季度业绩电话会，我们很高兴与各位更新 2025 年的开局战绩与业务动态，并回应各位对集团发展近况的关注。

(Translated) Hello everyone, and thank you for joining ATRenew's First Quarter 2025 earnings conference call. We're excited to share the update of our performance and business developments, and to address your questions about the Company's recent progress.

首先，在经营业绩层面，一季度总收入再次超出区间指引高端，同比增长 27.5%至 46.53 亿元。在利润达成方面，non-GAAP 经营利润同比增长 39.5%至 1.1 亿元，non-GAAP 经营利润率为 2.4%， 较去年一季度同期实现了健康提升。

Firstly, in terms of operating results, total net revenues for the first quarter once again exceeded the high end of our guidance range, increasing 27.5% year-over-year to RMB 4,653.5 million. On the profitability side, our non-GAAP operating income increased by 39.5% year-over-year to over RMB 110 million. Non-GAAP operating margin reached 2.4%, indicating healthy progress compared to the first quarter of last year.

整体收入的快速健康增长，主要得益于我们 1P 业务实现了加速增长。我们持续投入 1P 自营业务与回收的交付能力建设、巩固一手货源获取与爱回收品牌的用户心智，并逐步实现更高比例的 toC 严选零售。我会就这三点 1P 业务的增长驱动力进行进一步的说明。

The strong and stable growth of total revenue was primarily driven by the accelerated growth of our 1P business. We continued to invest in our 1P business and recycling fulfillment capabilities, enhance supply access and strengthen AHS Recycle brand recognition among consumers to further improve the penetration of our 1PtoC retail sales in our sales mix. Let me provide more color for the three key drivers of the 1P business.

首先，一季度，1P 产品收入取得同比增长 28.8%，如果扣除四季度电话会上提到的苹果官方回收和海外业务去年一季度的高收入基数影响，产品收入同比增长超过 50%，超出我们对大盘业务的业绩预期。

Firstly, in the first quarter, 1P business revenue grew by 28.8% year-over-year. Excluding the high-base impact from Apple's official trade-in program and overseas business as mentioned during the fourth-quarter earnings call, product revenue in the first quarter increased by over 50% year-over-year, exceeding our expectations.

趋势上，受益于手机数码品类国家补贴的发放、以及京东场景的用户换新需求拉动，爱回收的 C2B 手机数码回收额同比增长也超过了 50%。我们继续践行"更多从 C 端消费者收、更多向C 端销售"的发展策略。能力方面，我们继续夯实线下服务能力的建设，同比去年一季度末净新增 458 间爱回收门店；上门团队所支持交付范围也更加扩大、交付也更加及时--共同助推 C2B 回收用户满意度相关的多个指标向好提升，让借助国补体验以旧换新的用户同样拥有好的体验。 In terms of trends, supported by the national subsidies for smartphones and digital products, as well as, increased demand for user upgrades in the scenario of our strategic partner JD.com's platform, our C2B consumer electronics recycling value grew by over 50% year-over-year.

We are committed to advancing strategies on direct engagement with consumers at the front of recycling and retailing. On the capability side, we continue to enhance offline fulfillment capabilities, achieving a net addition of 458 AHS stores year-on-year by the end of March, 2025, and broadening our

door-to-door fulfillment coverage with more prompt service. The effort improves multiple metrics indicating C2B recycling customer satisfaction, and ensures a high-quality experience for trade-in users via national subsidies.

在京东战略合作方面，我们持续发挥与京东长期共建的独特供应链优势，保持着行业领先的用户体验和交付能力，进一步加强以旧换新的交付响应，降低了用户参与国补的门槛。通过协作以旧换新，我们和京东帮助用户以"又好又便宜"的方式抵扣新品购买成本，有效激发用户的消费需 求，并抓住更多优质的二手手机 3C 产品货源，实现二手回收渗透率的提升。作为结果，一季度以旧换新业绩增长继续领跑京东大盘。我们将继续努力提升以旧换新供应链能力和服务能力的建设，以进一步扩大在二手手机 3C 货源端的获取能力和份额。

In terms of our strategic partnership with JD.com, we've strengthened the long-term co-developed supply chain, delivering best-in-class user experience and efficient fulfillment. By optimizing the trade-in process, we've reduced barriers to national subsidies, enabling customers to trade in used devices for new ones in a "better and cheaper" way. This not only stimulates demand but also improves supplies of high-quality pre-owned consumer electronics to boost recycling penetration.

As a result, the growth of the trade-in segment continues to outpace. Looking ahead, we'll continue to enhance our trade-in supply chain and services to expand our market share in the pre-owned consumer electronics industry.

同时，我们加码爱回收品牌能力的建设，通过创新的新媒体内容营销和环保达人互动，鼓励用户体验爱回收更加丰富的服务选项，支持爱回收现有渠道实现更快速的回收业绩增长。通过爱回收品牌，我们提出"返航新生"环保倡议，并实现二者的全面连结打通，鼓励更多消费品牌参与互 动，促进更多用户对爱回收品牌价值的认可，提升用户对爱回收品牌的感知和使用爱回收服务的频次。在今年四月的"世界地球日"期间，"爱回收"与"返航新生"携手 12 个国内一线的消费品牌，推出以二手手机回收和循环经济为主题的营销活动，于线上和线下渠道促进用户参与二手回收。 At the same time, we have strengthened AHS Recycle's brand presence through new media channels with creative marketing and influencer partnerships, encouraging users to experience AHS Recycle's wide range of recycling services and accelerating the growth of our recycling channels.

We've launched the "REVIVE" environmental protection initiative under the AHS Recycle brand and fully integrated it with our existing initiatives. This encourages more consumer brands to collaborate with us, enhancing user recognition of AHS Recycle's value proposition and increasing engagement with our services.

In April, while celebrating the "Earth Day", we collaborated with 12 leading domestic consumer brands to promote initiatives focused on recycling and the circular economy, through joint campaigns across online and offline channels.

在一季度，我们继续发挥成熟的端到端供应链能力，加强自营商品的 toC 零售，一季度 1PtoC 收入同比增长 73.5%，1P 收入的 toC 占比进一步提升至 33%。其中，我们看到"以销定修"项目在自有的合规翻新整备能力基础上，放大发挥 toC 零售效能，为拍拍、爱回收严选、零售合作渠道的用户提供价格更好、售后放心的产品，GMV 环比呈现健康提升。同时，爱回收门店官网的零售能力持续发展，收入同比增长超过 160%，让更多严选好货唾手可得。

By continuously leveraging our mature, end-to-end supply chain, we enhanced our direct-to-consumer retail operations under the 1P business. In the first quarter, 1PtoC revenue grew by 73.5% year-over-year. Retail revenue accounted for 33% of 1P revenue, representing an upward trend. Backed by our refurbishment capabilities, we've seen the pilot program of on-demand refurbishment effectively leverage retail capabilities, creating strong synergies with our in-house compliant refurbishment

operations. This approach allows us to offer competitively priced, quality-assured 1P refurbished products to users across Paipai, AHS Selection and other retail partner channels. As a result, GMV has shown a healthy upward trend quarter-over-quarter. Additionally, the retail capability of AHS Recycle's official store network continued to expand, with revenue growing by over 160% year-over-year. This amplified our product accessibility to consumers.

单独看苹果官方以旧换新业务，如此前的业绩电话会沟通，由于有历史价格策略产生的高基数影响，该业务板块一季度收入同比有所下降，但得益于我们的操盘能力与效率提升，苹果业务的利润率水平显著改善。海外收入方面，我们主动进行业务规模的调整，利润率水平同样在一季度实现了显著的优化。

Looking specifically at the Apple official trade-in business, as mentioned in previous earnings calls, revenue declined year-over-year in the first quarter due to the high base driven by early-stage pricing strategies. However, benefiting from our management capabilities and operational efficiencies, the margin in this segment improved significantly. For overseas revenues, as we adjusted our business scale, there was a notable improvement in margin as well.

平台业务方面，今年以来，除了看到线上线下用户对于以旧换新的接受度显著提升，行业商家的需求也在发生一些积极的变化。为此，我们的 B2B、B2C、多品类回收业务进行了服务能力升级，通过领先的体验提升用户粘性。

Regarding our marketplace businesses, we've seen a marked rise in trade-in service acceptance among both online and offline users, alongside positive shifts in merchant demands. In response, we've enhanced our B2B, B2C, and multi-category recycling services to deliver best-in-class user experience, thereby boosting user loyalty.

我们不断加强拍机堂的行业基础设施能力，提升对商家的服务。截至一季度末，拍机堂的累计注册商家数量突破 100 万，交易商家数量呈现显著的双位数的同比增长。收费率更高的入仓质检收

入占比提升，带动拍机堂平台成色机收费率同比提升 24 个基点。这些印证了拍机堂作为行业基础设施、作为二手手机 3C 交易所的定位被全国商家更广泛地认可。

We've strengthened our industry capabilities as fundamental infrastructure and enhanced services for merchants. As of the end of the first quarter, the number of registered merchants in PJT exceeded 1 million, with a double-digit year-over-year increase in active trading merchants.

The proportion of higher-fee opt services, i.e., ship-in quality inspection services, grew, raising PJT Marketplace's take rate for second-hand consumer electronics transactions by 24 basis points. This reflects PJT's growing nationwide prominence as an essential infrastructure within the industry and as a leading exchange for second-hand electronic products.

拍机堂引领二手销售方式的创新，增加更多样的线上线下出货方式。今年 3 月，我们在深圳华强北开幕了拍机堂全国首家线下旗舰店，引领二手 3C 行业的透明化升级。该店占地 1200 平方米现场陈列近万台经专业检测的二手手机。拍机堂旗舰店采用了仓储前置模式的"仓卖一体"模式，通过构建"看- 验- 采"一体化的场景，比传统销售渠道缩短 3-5 天调货周期，帮助B 端商家降低囤货成本与物流等待周期；通过现场看货，还有利于降低售后争议。

我们将继续探索更多行业商家的赋能，向本地及全国商家货源开放，进一步夯实线下的选购丰富度。

PJT is pioneering the innovation of second-hand sales models by expanding diverse online and offline sales channels for merchants. In March, we launched our first offline flagship store in Shenzhen's Huaqiangbei, driving transparency in the pre-owned consumer electronics industry. The 1,200-square-meter store displays nearly 10,000 second-hand phones that have undergone professional inspection.

The flagship store operates under a "warehouse-to-retail model" seamlessly integrating storage and sales functions. By offering an all-in-one "browse-inspect-purchase" experience, it significantly reduces the traditional 3 to 5 days' of restocking cycle, helping merchants reduce inventory costs and minimize logistics delays. On-site procurement also reduces after-sales disputes.

We will continue to empower more industry merchants, open up our local and national merchant resources to enrich the offline product selection.

此外，我们近期在自营城市测试开设取证仓，简化商家的入仓质检流程，以更低的成本经营位于城市交易中心的小仓，距离商家更近，商家服务也更加便捷。同时，我们探索直播平台的主播达人合作，开放拍机堂 1P 和 3P 货盘和供应链，由二手手机 3C 行业的主播达人帮助C 端用户在拍机堂上淘到高性价比的机器，打造"代淘"模式，补充从拍机堂到 C 端消费者的服务闭环。未来，我们将进一步探索、开放更多平台能力给到行业商家，增加优质商品的销售机会，助力区域中心城市的二手手机 3C 的商品集散和合规发展。

In addition, we recently began piloting compact authentication warehouses within our self-operated city to streamline the quality inspection process for merchants. These compact warehouses, located closer to major trading hubs, allow us to operate at lower costs while offering more convenient and accessible services to merchants.

At the same time, we are exploring collaborations with influencers on live-streaming platforms. We opened our 1P and 3P inventory and supply chain on the PJT Marketplace to those influencers,

which enables them to help users find high-quality and cost-effective devices, creating the "specialty buyer" model and enhancing the service loop between PJT and consumers.

Moving forward, we will open up more platform capabilities to merchants to boost quality product sales and promote distribution capabilities and compliant growth of pre-owned consumer electronics across regional centers.

拍拍为更多二手行业的中小商家提供寄卖转型，通过扩大招商、增加平台货品的在售规模，强化商家后台建设，优化商家体验和定价水平，综合提高货品的动销率，同时加强完善售后检测和服务策略，以提升流量和用户的购买体验。规模上，拍拍寄卖全品类一季度的销售额同比增加 2.2倍，我们将探索把寄卖商品打通到更多的自营销售场景中，为中小商家提供更加丰富的零售通 路。

As part of the ongoing transformation of the Paipai consignment business, we are focused on better serving small merchants in the second-hand industry. This includes expanding merchants to increase the variety and volume of available products, strengthening backend systems to improve greater accuracy in pricing and the overall merchant experience, while driving higher product turnover. In terms of scale, sales across all categories in the Paipai consignment business grew by 2.2 times year-over-year in the first quarter. Looking ahead, we plan to further integrate consignment products into more of our self-operated distribution channels, providing small and medium-sized merchants with broader access to retail opportunities.

在多品类回收服务发展方面，一季度多品类的回收交易 GMV 和收入均实现了接近 200%的同比增长，增长势头依然强劲。其中，收费率较低的黄金回收的业绩增速较快；奢侈品回收方面，收费率实现了小幅度的提升。综合影响下，多品类回收的综合收费率同比稳定。在用户体验方面，我们从多品类回收前的咨询体验、价格体验、交付体验等多方面持续优化 SOP 和内部能力，用户体验与满意度得到了有效的改善。

Throughout the development of multi-category recycling services, both gross transaction value and revenue nearly tripled year-over-year in the first quarter. Gold recycling saw faster growth, while the recycling service [take rate] for luxury goods increased slightly. As a result of these combined factors,

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ATRenew Inc. published this content on May 21, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 21, 2025 at 04:53 UTC.