Financial Data and Key Metrics Changes - Total net revenues for Q1 2025 increased by 27.5% year over year to RMB 4653.5 million, exceeding the high end of guidance [6][21] - Non-GAAP operating income rose by 39.5% year over year to over RMB 110 million, with a non-GAAP operating margin of 2.4% [6][21][28] - Net product revenues increased by 28.8% to RMB 4260 million, driven by sales of consumer electronics through online channels [22] Business Line Data and Key Metrics Changes - The 1P business revenue grew by 28.8% year over year, with product revenue increasing by over 50% when excluding high base impacts [7][12] - 1P2C revenue grew by 73.5% year over year, with retail revenue accounting for 33% of 1P revenue [10][11] - Multi-category recycling business contributed over RMB 15 million of revenue, significantly increasing its share of service revenues from 5.6% to 13.3% [23] Market Data and Key Metrics Changes - The C2B consumer electronics recycling value grew by over 50% year over year, supported by national subsidies and increased demand for user upgrades [8] - The number of registered merchants in PJT exceeded 1,000,000, with a double-digit year-over-year increase in active trading merchants [13] - The overall marketplace take rate for secondhand consumer electronic transactions was 5.25% in Q1 2025 [22] Company Strategy and Development Direction - The company continues to invest in its 1P business and recycling fulfillment capabilities, enhancing supply access and brand recognition [7] - AHS Recycle launched the Revive Environmental Protection Initiative to encourage collaboration with consumer brands and promote recycling [10] - The company aims to strengthen its trade-in supply chain and services to expand market share in the pre-owned consumer electronics industry [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustained growth momentum of the secondhand recycling and resale business due to national subsidies [33] - The average replacement cycle for mobile phones is about two years, with potential for domestic recycling penetration to rise to over 20% [35] - The company anticipates total revenues for Q2 2025 to be between RMB 4801 million, representing a year-over-year increase of 24.7% to 27.4% [29] Other Important Information - The company repurchased approximately 400,000 ADSs for about US$1.2 million under its share repurchase program [28][29] - Cash and cash equivalents totaled RMB 2.78 billion as of March 31, 2025, sufficient to support reinvestment and shareholder returns [29] Q&A Session Summary Question: Effectiveness of National Subsidy - Management noted that national subsidies have positively impacted mobile phone recycling, with a 9% year-over-year increase in new smartphone shipments [33] Question: Increase in Non-GAAP Fulfillment and Marketing Margins - The increase in non-GAAP operating profit margin was attributed to pricing strategy and expense control, with improved margins in the Apple trade-in program [36][38] Question: Progress on Store Openings - As of March 31, 2025, there were 1886 AHS recycled stores, with a net addition of 458 stores year over year [42] Question: Brand Awareness and Customer Acquisition Costs - The company has seen increased traction from marketing efforts, with product revenue from AHS Mini Program and official websites growing faster than overall 1P business [48]

Financial Data and Key Metrics Changes - Total net revenues for Q1 2025 increased by 27.5% year over year to RMB 4653.5 million, exceeding guidance [6][22] - Non-GAAP operating income rose by 39.5% year over year to over RMB 110 million, with a non-GAAP operating margin of 2.4% [6][22][30] - Net product revenues increased by 28.8% to RMB 4260 million, driven by sales of consumer electronics through online channels [23] Business Line Data and Key Metrics Changes - The 1P business revenue grew by 28.8% year over year, with product revenue increasing by over 50% when excluding high base impacts [7][12] - 1P2C revenue grew by 73.5% year over year, with retail revenue accounting for 33% of 1P revenue [11][12] - Multi-category recycling business contributed over RMB 15 million of revenue, significantly increasing its share of service revenues from 5.6% to 13.3% [24] Market Data and Key Metrics Changes - The C2B consumer electronics recycling value grew by over 50% year over year, supported by national subsidies and increased demand for user upgrades [8] - The number of registered merchants in PJT exceeded 1,000,000, with a double-digit year-over-year increase in active trading merchants [14] - The overall marketplace take rate for secondhand consumer electronic transactions was 5.25% in Q1 2025 [23] Company Strategy and Development Direction - The company aims to enhance its trade-in supply chain and services to expand market share in the pre-owned consumer electronics industry [10] - AHS Recycle's brand presence is being strengthened through new media channels and partnerships, promoting recycling services [11] - The company plans to continue expanding its store network, targeting a net addition of 800 AHS Recycle stores in 2025 [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustained growth of the recycling and resale business due to national subsidies and strong positioning in recycling channels [36] - The average replacement cycle for mobile phones is about two years, with potential for recycling penetration to rise to over 20% in the long run [38] - The company anticipates total revenues for Q2 2025 to be between RMB 4801 million, representing a year-over-year increase of 24.7% to 27.4% [31] Other Important Information - The company repurchased approximately 400,000 ADSs for about US$1.2 million under its share repurchase program [30] - Cash and cash equivalents totaled RMB 2.78 billion as of March 31, 2025, providing sufficient reserves for reinvestment and shareholder returns [31] Q&A Session Summary Question: Effectiveness of national subsidy in promoting recycling and trading programs - Management noted that national subsidies have significantly boosted mobile phone recycling, with strong growth in the 1P business due to increased consumer engagement [35][36] Question: Increase in non-GAAP fulfillment and selling margins - The increase in non-GAAP operating profit margin was attributed to optimized pricing strategies and balanced expense control, with improvements in the margins of the Apple trade-in program [39][41] Question: Progress on store openings - As of March 31, 2025, there were 1886 AHS Recycle stores, with a net addition of 458 stores year over year, and a focus on transitioning joint-operated stores to self-operated models [46][47] Question: Traction from marketing initiatives for AHS Recycle brand - The company has seen solid growth in product revenue from its mini program and official websites, driven by strategic marketing campaigns and national subsidies [51][52]