ATRenew Inc. Reports Unaudited Second Quarter 2025 Financial Results

Core Viewpoint - ATRenew Inc. reported strong operational performance in Q2 2025, with total revenue increasing by 32.2% year-over-year, driven by demand for recycling and upgrades in consumer electronics, supported by national subsidies in China [2][4]. Financial Performance - Total net revenues for Q2 2025 reached RMB4,991.5 million (US$696.8 million), up from RMB3,776.7 million in Q2 2024, marking a 32.2% increase [4][6]. - Adjusted income from operations (non-GAAP) was RMB121.3 million (US$16.9 million), compared to RMB94.1 million in the same period of 2024 [6][8]. - Net income for Q2 2025 was RMB72.3 million (US$10.1 million), a significant recovery from a net loss of RMB10.7 million in Q2 2024 [9][10]. Revenue Breakdown - Net product revenues increased by 34.0% to RMB4,558.7 million (US$636.4 million) due to higher sales of pre-owned consumer electronics [7]. - Net service revenues rose by 15.4% to RMB432.8 million (US$60.4 million), attributed to growth in multi-category recycling services [7]. Operating Costs - Operating costs and expenses totaled RMB4,918.1 million (US$686.5 million), reflecting a 29.6% increase from RMB3,795.3 million in Q2 2024 [5]. - Merchandise costs increased by 32.3% to RMB3,957.6 million (US$552.5 million), driven by higher product sales [7]. Business Outlook - For Q3 2025, ATRenew expects total revenues to be between RMB5,050.0 million and RMB5,150.0 million, indicating a year-over-year increase of 24.7% to 27.1% [12]. Recent Developments - ATRenew repurchased approximately 1.6 million ADSs for about US$4.0 million under its share repurchase program, which has a total authorization of US$50 million [13]. - As of June 30, 2025, ATRenew operated a network of 2,092 AHS stores across 291 cities in China [14]. - The company released its 2024 ESG Report, highlighting its commitment to green recycling and emissions reduction goals aligned with China's "Dual Carbon" objectives [15]. Shareholder Returns - The Board approved a three-year shareholder return plan, committing to allocate no less than 60% of adjusted net income (non-GAAP) for shareholder returns through dividends or share repurchases [16].