Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported Q4 2024 total revenue of 4.85 billion RMB, a year-on-year increase of 25.2%, and a full-year revenue of 16.33 billion RMB, up 25.9% year-on-year [4][10] - Non-GAAP operating profit reached 131 million RMB in Q4 2024, a 61.0% increase year-on-year, with a Non-GAAP operating profit margin of 2.7% [4][8] - The company expects Q1 2025 revenue to be between 4.55 billion and 4.65 billion RMB, representing a year-on-year growth of 24.6% to 27.4% [4] Revenue Breakdown - In Q4 2024, the company's 1P product revenue was 4.46 billion RMB, up 26.6% year-on-year, driven by growth in recycling scale and online sales of second-hand consumer electronics [7] - The 3P service revenue was 390 million RMB, a 10.7% increase year-on-year, mainly supported by service income from the platform and multi-category recycling business [7] - The total number of offline stores reached 1,861, with 673 stores equipped for multi-category recycling capabilities [7] Profitability Metrics - The GAAP operating profit was 53 million RMB, compared to a loss of 17 million RMB in the same period last year, with a GAAP operating profit margin of 1.1% [7][8] - The company's gross margin for Q4 2024 was 19.5%, an increase of 0.8 percentage points year-on-year [7] Future Projections - The company forecasts revenues of 20.17 billion RMB, 24.34 billion RMB, and 28.59 billion RMB for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 24%, 21%, and 17% [9][10] - Non-GAAP net profit is projected to be 453 million RMB, 660 million RMB, and 918 million RMB for the same years, with growth rates of 40%, 44%, and 46% respectively [9][10]

Financial Data and Key Metrics Changes - Total net revenues for Q4 2024 increased by 25.2% year-over-year to RMB4.85 billion, exceeding guidance [7][35] - Full year revenue reached RMB16.33 billion, representing a 25.9% year-over-year growth, significantly outpacing the pre-owned electronics industry growth [8][35] - Non-GAAP income from operations was RMB130 million in Q4 and RMB410 million for the full year, growing 61% and 62.8% year-on-year respectively [8][48] - Non-GAAP operating margins were 2.7% in Q4 and 2.5% for the full year 2024 [9][48] Business Line Data and Key Metrics Changes - Product revenues for Q4 grew by 26.6% year-over-year, with net product revenues reaching RMB4.46 billion [9][37] - Net service revenues in Q4 were RMB389 million, a 10.7% increase, driven by growth in the PJT marketplace and multi-category recycling businesses [38] - Multi-category recycling business contributed over RMB40 million to service revenues in Q4, up from 5.5% in the same period of 2023 to over 10% [39] Market Data and Key Metrics Changes - The total number of transactions grew to over 35.3 million, supported by government subsidies for equipment renewal and consumer goods trading [9] - The service revenue of Taiji Town increased steadily, with registered merchant users exceeding 850,000 [19] Company Strategy and Development Direction - The company aims to focus on experience-driven growth, brand building, and strengthening fulfillment capabilities in 2025 [23][33] - Plans to open 800 new stores and add 1,000 two-door service staff to enhance face-to-face fulfillment network [59] - The strategy includes leveraging new media platforms for brand awareness and expanding multi-category recycling services [29][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in China's pre-owned electronics market, driven by national subsidies and increased consumer demand [55][56] - The company anticipates total revenues for Q1 2025 to be between RMB4,550 million and RMB4,650 million, representing a year-over-year increase of 24.6% to 27.4% [50][51] Other Important Information - The company has initiated a repurchase program allowing up to $50 million of ADSs through June 27, 2025, with $25.9 million returned to shareholders as of December 31, 2024 [48][49] - The company is focusing on AI applications to enhance operational efficiency and reduce costs in various business scenarios [64][66] Q&A Session Summary Question: Plans to capture growth opportunities in 2025 with consumer electronics trading subsidies - Management highlighted the significant untapped potential in the pre-owned electronics market and plans to leverage national subsidies to increase recycling volume and top-line growth [55][56][60] Question: Use of AI in optimizing business operations - Management confirmed the deployment of AI in quality inspection and operational processes, with plans to expand AI applications across more departments to improve efficiency [64][66] Question: Capital management priorities regarding growth reinvestment versus shareholder returns - Management stated a balanced approach will be taken, focusing on reinvestment for growth while maintaining a healthy non-GAAP operating profit margin to support shareholder returns [72][75]

Financial Performance - Total net revenues for 4Q24 reached RMB 4,849.3 million, a 25.2% year-over-year increase[7] - Net product revenues for 4Q24 were RMB 4,460.6 million, up 26.6% year-over-year[7] - Net service revenues for 4Q24 amounted to RMB 388.7 million, reflecting a 10.7% year-over-year growth[7] - Non-GAAP income from operations for 4Q24 increased by 61.0% year-over-year to RMB 131.4 million[7] - For the full year 2024, total net revenues reached RMB 16,328.4 million, a 25.9% year-over-year increase[7] - Full year 2024 GAAP income from operations was RMB 29.0 million, achieving a profit-making milestone[7] - Non-GAAP income from operations for the full year 2024 grew by 62.8% year-over-year to RMB 409.7 million[7] Business Updates - Net product revenues from the Trade-In Apple (ATI) program increased by 71.1% year-over-year in 4Q24 and 223.2% year-over-year for the full year 2024[9] - Net service revenues from multi-category recycling increased by 131.9% year-over-year in 4Q24 and 319.0% year-over-year for the full year 2024[10] - The company transacted 9.4 million units in 4Q24, a 10.6% year-over-year increase, and 35.3 million units for the full year, a 9.3% year-over-year increase[12] Operational Strategy - The company is focused on improving cost efficiency with technology, with Non-GAAP fulfillment expenses as a percentage of total revenues declining from 12.9% in FY21 to 8.3% in FY24[34] - As of December 31, 2024, ATRenew has 1,861 offline stores[41]

Financial Data and Key Metrics Changes - Total net revenues for the fourth quarter of 2024 increased by 25.2% year-over-year to RMB4.85 billion, exceeding guidance [7][35] - Full year revenue reached RMB16.33 billion, representing a 25.9% year-over-year growth [8][35] - Non-GAAP income from operations was RMB130 million in the fourth quarter and RMB410 million for the full year, growing 61% and 62.8% year-on-year respectively [8][48] - Non-GAAP operating margins were 2.7% in the fourth quarter and 2.5% for the full year [9][48] Business Line Data and Key Metrics Changes - Product revenues for the fourth quarter grew by 26.6% year-over-year [9] - Net product revenues for the full year reached RMB14.84 billion, representing a year-on-year increase of 27.3% [37] - Net service revenues were RMB389 million in the fourth quarter, an increase of 10.7% [38] - Multi-category recycling business contributed over RMB40 million to service revenues, a significant increase from 5.5% in the same period of 2023 [39] Market Data and Key Metrics Changes - The number of transactions grew to over 35.3 million, supported by government subsidies for equipment renewal [9] - The service revenue of multi-category recycling increased significantly, contributing 8.6% of total service revenues in 2024, up from 2.3% in 2023 [39][40] Company Strategy and Development Direction - The company aims to focus on experience-driven growth, brand building, and strengthening fulfillment capabilities in 2025 [23][33] - Plans to open 800 new stores and add 1,000 two-door service staff to enhance face-to-face fulfillment network [59] - The strategy includes leveraging new media platforms for brand awareness and expanding service capabilities [60][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in China's pre-owned electronics market, driven by national subsidies [55][61] - The company anticipates total revenues for the first quarter of 2025 to be between RMB4,550 million and RMB4,650 million, representing a year-over-year increase of 24.6% to 27.4% [50][51] - The focus will be on maintaining a healthy non-GAAP operating profit margin while balancing reinvestment and shareholder returns [75] Other Important Information - The company has sufficient financial reserves to support reinvestment and shareholder returns, with cash and cash equivalents totaling RMB2.9 billion [49] - The repurchase program allows for up to $50 million of ADSs through June 27, 2025 [48][76] Q&A Session Summary Question: Plans to capture growth opportunities in 2025 - Management highlighted the significant untapped potential in China's pre-owned electronics market and plans to leverage national subsidies to increase recycling volume [55][57] Question: Use of AI in operations - Management confirmed the deployment of AI in quality inspection and plans to expand AI applications across various business scenarios to improve efficiency [64][66] Question: Capital management priorities - Management stated a balanced approach to reinvestment for growth and returning capital to shareholders, with a focus on maintaining healthy profit margins [70][75]

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].