Financial Data and Key Metrics Changes - Total net revenue reached a record high of RMB 5.15 billion, representing a 27.1% year-over-year growth [5][25] - 1P product revenue increased by 28.7% year-over-year to RMB 4.73 billion, while 3P platform service revenue rose 11.6% year-over-year to RMB 420 million [5][27] - Non-GAAP operating profits reached RMB 140 million, up 34.9% year-over-year, with a non-GAAP operating profit margin of 2.7% [5][35] Business Line Data and Key Metrics Changes - Combined refurbished product revenue surged 102% year-over-year, with 1P2C revenue growing over 70% year-over-year [7] - The number of contracted merchants on the PJC Marketplace surpassed 1.37 million, driven by rapid growth in product supply and small-sized merchants [11] - GMV for consignment in the PaiPai marketplace grew 180% year-over-year, with the take rate trending upward in the high single-digit range [14] Market Data and Key Metrics Changes - AHS Recycle achieved a trade-in penetration rate exceeding 10% on JD.com, with significant potential for further growth as retail prices of new devices increase [44] - The overall take rate of the marketplace was 4.89% for the third quarter of 2025 [28] Company Strategy and Development Direction - The company aims to strengthen core capabilities in second-hand consumer electronics, enhance fulfillment capabilities, and advance technology through automation and AI [18][19] - AHS Recycle is positioned as China's leading recycling brand, focusing on user engagement and frequency of service usage [20] - The company is preparing for an international strategy to share China's recycling story globally, with a focus on export standards and international mutual recognition [21][22] Management's Comments on Operating Environment and Future Outlook - Management expects total revenue growth in Q4 2025 to be between 25.4% and 27.4%, driven by attractive new products and strong consumer demand [45] - For 2026, the company anticipates maintaining a relatively rapid year-over-year growth rate, supported by increased trade-in program penetration and enhanced brand power [48] Other Important Information - The company repurchased approximately 0.5 million ADSs for about $2.1 million during the third quarter [36] - As of September 30, 2025, cash and cash equivalents totaled RMB 2.54 billion, sufficient to support reinvestment and shareholder returns [37] Q&A Session Summary Question: Impact of national subsidy policies on business - Management noted that national trade-in subsidies primarily promote sales of new devices priced under RMB 6,000, with limited impact on premium models [42] - The company has collaborated with JD.com and major brands to enhance trade-in experiences, benefiting from the subsidies [43] Question: Outlook for Q4 and next year - Management expects total revenue growth in Q4 to be between 25.4% and 27.4%, driven by strong consumer demand for new devices [45][46] - For 2026, the company anticipates continued growth driven by trade-in program penetration and improved supply chain efficiency [48] Question: Store opening pace for Q4 and next year - The company aims to accelerate store openings while ensuring quality development and superior user experience [52] Question: Plans for multi-category business - The multi-category business has maintained rapid growth, focusing on high-value categories and user experience [54] Question: Uptake of enhanced services across marketplace businesses - The take rate for PJC marketplace remains stable at over 6%, with ongoing adjustments to merchant service policies [57] - The consignment model in PaiPai has shown success, driving its take rate into the high single-digit range [58]

Financial Data and Key Metrics Changes - Total net revenue reached a record high of RMB 5.15 billion, representing a 27.1% year-over-year growth [5][29] - 1P product revenue increased by 28.7% year-over-year to RMB 4.73 billion, while 3P platform service revenue rose 11.6% year-over-year to RMB 420 million [5][31] - Non-GAAP operating profits reached RMB 140 million, up 34.9% year-over-year, with a non-GAAP operating profit margin of 2.7% [5][38] Business Line Data and Key Metrics Changes - Combined refurbished product revenue surged 102% year-over-year, with 1P2C revenue growing over 70% year-over-year [6] - The overall take rate of the marketplace was 4.89% for the third quarter [10] - Multi-category recycling businesses contributed nearly RMB 53 million of revenue, accounting for 12.5% of service revenue [31] Market Data and Key Metrics Changes - AHS Recycle achieved a trade-in penetration rate exceeding 10% on JD.com, indicating a growing trend in trade-in programs [46] - The number of contracted merchants on the PJC Marketplace surpassed 1.37 million, driven by rapid onboarding of small-sized merchants [11] Company Strategy and Development Direction - The company aims to strengthen core capabilities in second-hand consumer electronics and enhance trade-in collaboration with partners like JD.com and Apple [18] - AHS Recycle is positioned as China's leading recycling brand, focusing on user engagement and frequency of service usage [20] - The company is preparing for an international strategy to share China's recycling story globally, with a focus on export standards and international mutual recognition [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy development of the second-hand industry and strong growth trajectory for the company [25] - For Q4 2025, total revenue growth is expected to be between 25.4% and 27.4%, driven by attractive new product launches [47] - For 2026, the company anticipates maintaining a relatively rapid year-over-year growth rate, supported by increased trade-in program penetration and enhanced brand power [50] Other Important Information - ATRenew was recognized as a finalist for the Earthshot Prize, highlighting its contributions to the circular economy [26] - As of September 30, 2025, cash and cash equivalents totaled RMB 2.54 billion, sufficient to support reinvestment and shareholder returns [40] Q&A Session Summary Question: Impact of national subsidy policies on business - Management noted that national trade-in subsidies primarily promote sales of new devices priced under RMB 6,000, with limited impact on premium models [44][45] Question: Outlook for Q4 and next year - Total revenue growth for Q4 is expected between 25.4% and 27.4%, with a full-year estimate of RMB 20.87 billion to RMB 20.97 billion, indicating potential for faster growth than initially budgeted [47][48] Question: Store opening pace for Q4 and next year - The company aims to accelerate store openings, with nearly 88% of self-operated stores equipped with multi-category services [53][54] Question: Plans for multi-category business - The multi-category business is rapidly developing, focusing on high-value categories and improving user transaction experience [56][58] Question: Uptake of enhanced services across marketplace businesses - The take rate for PJC marketplace remains stable at over 6%, with the consignment model in PaiPai showing initial success and a take rate in the high single-digit range [61][62]

ATRenew (RERE) Q1 2025 Earnings Call May 20, 2025 08:00 AM ET Company Participants Jeremy Ji - Director of Corporate Development & Investor Relations Conference Call Participants Joyce Ju - AnalystNone - AnalystMichael Kim - Senior Analyst Operator Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to AT Renu Inc. First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. We will be hosting a question and answe ...