Core Viewpoint - ATRenew Inc. reported strong financial results for Q4 and full year 2024, with significant revenue growth and improved profitability, driven by increased consumer demand for trade-in and recycling services in the pre-owned consumer electronics market in China [1][3][4]. Financial Performance - Q4 2024 total net revenues increased by 25.2% to RMB4,849.3 million (US$664.4 million) from RMB3,873.6 million in Q4 2023 [4][6]. - Full year 2024 total net revenues grew by 25.9% to RMB16,328.4 million (US$2,237.0 million) from RMB12,965.8 million in 2023 [12][17]. - Adjusted income from operations for Q4 2024 was RMB131.4 million (US$18.0 million), a 61.0% increase from RMB81.6 million in Q4 2023 [9][10]. - Full year adjusted income from operations was RMB409.7 million (US$56.1 million), up 62.8% from RMB251.7 million in 2023 [17]. Operational Highlights - The number of consumer products transacted in Q4 2024 was 9.4 million, compared to 8.5 million in Q4 2023 [6]. - For the full year 2024, the number of consumer products transacted reached 35.3 million, up from 32.3 million in 2023 [6][12]. - The company expanded its network to 1,861 AHS stores, enhancing its ability to meet growing consumer demand for trade-in and recycling services [3]. Cost and Expenses - Operating costs and expenses for Q4 2024 were RMB4,826.6 million (US$661.2 million), an increase of 23.9% from RMB3,894.0 million in Q4 2023 [5][6]. - Full year operating costs and expenses increased by 24.1% to RMB16,352.9 million (US$2,240.3 million) from RMB13,175.4 million in 2023 [13][17]. Profitability Metrics - Q4 2024 net income was RMB77.4 million (US$10.6 million), a significant increase of 2,664.3% from RMB2.8 million in Q4 2023 [10]. - Full year net loss was reduced to RMB8.2 million (US$1.1 million) from RMB156.3 million in 2023 [18]. - Basic and diluted net income per ordinary share for Q4 2024 were RMB0.48 (US$0.07), compared to RMB0.02 in Q4 2023 [11]. Business Outlook - For Q1 2025, ATRenew expects total revenues to be between RMB4,550.0 million and RMB4,650.0 million, representing a year-over-year increase of 24.6% to 27.4% [21]. - The company aims to enhance its service capabilities and strengthen brand awareness to seize emerging opportunities in the circular economy [3][23]. Recent Developments - ATRenew was recognized by the United Nations Global Compact for its commitment to sustainable development practices [22]. - The company repurchased approximately 2.1 million ADSs for about US$5.8 million under its share repurchase program [23].

Core Viewpoint - ATRenew Inc. plans to release its unaudited financial results for Q4 and full year 2024 on March 11, 2025, before the U.S. market opens [1] Company Overview - ATRenew Inc. is a leading technology-driven platform for pre-owned consumer electronics transactions and services in China, headquartered in Shanghai [3] - The company was founded in 2011 and aims to give a second life to idle goods, addressing environmental impacts through recycling and trade-in services [3] - ATRenew integrates C2B, B2B, and B2C capabilities, providing end-to-end coverage of the value chain with proprietary inspection, grading, and pricing technologies [3] - The company is a participant in the United Nations Global Compact, adhering to principles of responsible business [3] Earnings Conference Call - The management will hold an earnings conference call on March 11, 2025, at 08:00 A.M. Eastern Time to discuss the financial results [2] - Listeners can access the call through various international and toll-free numbers, with a replay available until March 18, 2025 [2]

Core Points - ATRenew Inc. has been recognized by the United Nations Global Compact's "Forward Faster" campaign for its commitment to ESG practices and its role in China's circular economy [1][2][3] - The campaign celebrates the 20th anniversary of the ESG concept and selected ATRenew from 75 candidates based on its exemplary ESG performance [2] - ATRenew's CEO emphasized the importance of sustainable development and the company's mission to extend the lifecycle of consumer electronics through recycling and trade-in services [3][4] Company Overview - ATRenew operates a technology-driven platform for pre-owned consumer electronics transactions and services in China, founded in 2011 [5] - The company aims to address the environmental impact of pre-owned electronics by facilitating recycling and trade-in services [5] - ATRenew integrates C2B, B2B, and B2C capabilities, setting standards in the pre-owned consumer electronics industry through proprietary technologies [5]

Core Viewpoint - ATRenew Inc. operates in the circular economy sector, focusing on the reuse and recycling of pre-owned electronics through its trading platform, and has experienced a nearly 20% increase in stock price over the past five days [1] Company Summary - ATRenew Inc. is listed on NYSE under the ticker RERE and is involved in the circular economy, specifically targeting the electronics recycling market [1] - The company's trading platform facilitates the reuse and recycling of pre-owned electronics, aligning with sustainability trends [1] Stock Performance - The stock price of ATRenew Inc. has surged nearly 20% in the last five days, indicating positive market sentiment and potential investor interest [1]

Core Insights - The article discusses the search for value investment opportunities, particularly focusing on bargain stocks of large companies listed on US stock exchanges, including those from other countries [1]. Group 1 - The analyst has several years of investing experience and is primarily interested in large companies that are undervalued [1]. - The focus is not limited to American companies, indicating a broader investment strategy that includes international firms [1].

Investment Rating - The report assigns a rating of "Buy" with target price estimates of 15/10/6 for the years 2023/2024/2025 respectively [1]. Core Insights - The company achieved a significant milestone in Q3 2024 by reporting a GAAP operating profit for the first time, with revenue reaching 4.051 billion yuan, a year-over-year increase of 24.4% and a quarter-over-quarter increase of 7.27% [1]. - Non-GAAP net profit for Q3 2024 was reported at 178.8 million yuan, reflecting an impressive year-over-year growth of 89% [1]. - The company is benefiting from the growing trend of second-hand trading, with a notable performance through the JD.com channel, where total recovery amounts from trade-ins and exchanges increased by over 40% year-over-year [1]. Summary by Sections Financial Performance - Q3 2024 revenue was 4.051 billion yuan, with operating profit at 24.89 million yuan, marking a year-over-year increase of 41% [1]. - The overall gross margin was reported at 19.95%, a slight increase of 0.13 percentage points year-over-year [1]. Business Segments - The 3P business segment generated revenue of 380 million yuan, showing a year-over-year growth of 13.89% [1]. - The company’s high-margin business is expanding, with the monetization rate of the 3P business increasing by 25.59% year-over-year, accounting for approximately 90.64% of total revenue [1]. Market Trends - The report highlights the increasing consumer adoption of trade-in programs, with the "Double Eleven" shopping festival seeing a 246% year-over-year growth in trade-in transactions through JD.com [1]. - The company is transitioning towards a more selective retail model, with sales of second-hand goods through various channels showing a year-over-year growth of 114.6% [1]. Shareholder Returns - The company has been actively repurchasing shares, with a total repurchase amount reaching 23.5 billion yuan as of September 30, 2024 [1]. - The report indicates that the company is focusing on enhancing its service capabilities and expanding its store network to improve customer experience [1].

Financial Data and Key Metrics Changes - The total gross income for the third quarter reached RMB 40.5 billion, reflecting a year-over-year growth of 24.4% [2][10] - Total revenue for the third quarter was RMB 4.05 billion, with product revenue increasing by 25.6% year-over-year [2][10] - Non-GAAP operating income was RMB 1.04 billion, representing a 40.9% increase year-over-year, with a non-GAAP operating margin of 2.6% [6][14] - The company reported its first GAAP operating income of RMB 24.9 million [7][14] Business Line Data and Key Metrics Changes - The core recycling business revenue in mainland China grew by over 30% year-over-year, significantly outpacing the overall market growth [2][3] - Revenue from the multi-category recycling business increased by 270% year-over-year, generating over RMB 30 million in service revenue [5][19] - The trading services through JD.com saw a year-over-year increase of 246% during the Double 11 promotion [4][17] Market Data and Key Metrics Changes - The second-hand consumer electronics industry in China is growing at approximately 10% year-over-year [7][8] - The value of goods collected through JD.com via regular recycling and trading services increased by over 40% year-over-year [4][17] - The acceptance of second-hand goods is rising, with direct-to-consumer sales through various channels growing significantly [6][22] Company Strategy and Development Direction - The company aims to enhance service capabilities and user experience in both online and physical stores to build brand trust and secure recycling resources [2][3] - There is a focus on expanding the multi-category recycling services to meet growing consumer demand, particularly in luxury goods and high-value items [19][20] - The long-term strategy emphasizes strengthening supply chain advantages and consumer trust in the AHS Recycle brand [8][9] Management Comments on Operating Environment and Future Outlook - Management noted that consumer spending is slowing down, but the company is adapting by opening new physical stores to meet demand for idle goods [3][4] - The company expects total revenues for the fourth quarter of 2024 to be between RMB 4,740 million and RMB 4,840 million, indicating a year-over-year increase of 22.4% to 24.9% [15] - There is optimism regarding the growth of the trading business, with expectations for increased consumer adoption of trade-in services [17][18] Other Important Information - The company has initiated an ESG campaign in collaboration with leading consumer brands to promote eco-friendly recycling practices [9] - As of September 30, 2024, the company had cash and cash equivalents totaling $2.4 billion, indicating a strong cash position despite a decrease from the previous quarter [15] Q&A Session Summary Question: How are trading subsidies driving business growth? - Management highlighted that collaboration with JD.com has led to significant growth in recycling and trading business, with trading services doubling year-over-year [16][17] Question: What is the progress of the multi-category recycling business? - The multi-category recycling business has seen a 270% increase in recycling volume, generating substantial service revenue and enhancing store-level operating profit [19][20] Question: What are the expectations for pre-owned smartphone transactions? - Management noted that while direct subsidies for smartphones are lacking, the company's cross-category trading capabilities are effectively capturing consumer demand [21][22]

3Q24 INVESTOR PRESENTATION November 2024 Safe Harbor 1 Forward-looking Statements This presentation has been prepared by ATRenew Inc. (the "Company") solely for informational purposes. This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's current expectations and projections with respect to, among other things, our financial condition, results of operations, plans, objectiv ...

实现GAAP层面全面盈利。 本文为IPO早知道原创 作者｜Stone Jin 微信公众号｜ipozaozhidao 据IPO早知道消息，二手消费电子产品交易和服务平台万物新生（爱回收）集团（纽交所股票代码： RERE）于11月20日美股盘前发布了2024年第三季度业绩报告。 · 1P(自营)产品收入达 36.7 亿元,同比增长 25.6%。 · 3P(平台)服务收入达 3.8亿元,同比增长 13.9%。 ● Q3 non-GAAP ● 同比增长 经营利润 1.04 亿元 40.9% · 连续九个季度实现 non-GAAP 经营利润,单季创 历史新高。 · 03 集团 non-GAAP 经营利润率较去年同期的 2.3% 提升至 2.6%,单季创历史新高。 03 non-GAAP ● 同比增长 净利润 9006 万元 89.3% 值得注意的是，万物新生的盈利能力全面优化—— 三季度，万物新生集团实现经营利润2489万元， 净利润为1788万元，实现单季GAAP标准下的全面盈利。 此外，本季度万物新生Non-GAAP经营利 润超1亿元，同比增长40.9%，创下历史新高；non-GAAP经营利润率由 2 023年同期 ...

Core Viewpoint - ATRenew Inc. reported strong financial results for the third quarter of 2024, with total net revenues increasing by 24.4% year-over-year, driven by the growth in pre-owned consumer electronics transactions and services [2][3][4]. Financial Performance - Total net revenues reached RMB4,051.2 million (US$577.3 million), up from RMB3,256.8 million in Q3 2023, marking a 24.4% increase [2][4]. - Net product revenues increased by 25.6% to RMB3,672.2 million (US$523.3 million) from RMB2,924.0 million in the same period of 2023 [5]. - Net service revenues rose by 13.9% to RMB379.0 million (US$54.0 million) compared to RMB332.8 million in Q3 2023 [5]. Operating Results - Income from operations was RMB24.9 million (US$3.5 million), a turnaround from a loss of RMB28.1 million in Q3 2023 [10]. - Adjusted income from operations (non-GAAP) was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the same period of 2023 [10][29]. - Net income was RMB17.9 million (US$2.6 million), compared to a net loss of RMB44.2 million in Q3 2023 [11]. Shareholder Returns - The company repurchased approximately 4.9 million ADSs for about US$12.1 million during the quarter, with a total of approximately 8.2 million ADSs repurchased for about US$20.1 million under its current share repurchase program [15]. Business Outlook - For Q4 2024, ATRenew expects total revenues to be between RMB4,740.0 million and RMB4,840.0 million, representing a year-over-year increase of 22.4% to 24.9% [13]. Recent Developments - ATRenew improved its Environmental, Social and Governance (ESG) score, ranking in the 93rd percentile among its global retail industry peers, attributed to enhanced transparency in climate strategy and business ethics [14].