Financial Performance - Total net revenues reached RMB 4,653.5 million, a 27.5% year-over-year increase[10] - Net product revenues grew by 28.8% year-over-year to RMB 4,263.7 million[10] - Net service revenues increased by 14.2% year-over-year to RMB 389.8 million[10] - Non-GAAP income from operations increased by 39.5% year-over-year to RMB 111.9 million[10] - Non-GAAP operating profit margin improved by 21 basis points year-over-year to 2.4%[10] Business Updates - 1P business net product revenues, excluding ATI and international business, increased by 54.2% year-over-year[12] - 3P business net service revenues from multi-services category recycling increased significantly by 172.9% year-over-year[13] - Overall service take rate for the 3P business was 5.25%[13] - Total transaction units reached 9.5 million, a 13.1% year-over-year increase[15] Store Network - The total number of AHS stores reached 1,886, a net increase of 458 stores year-over-year[14] - Self-operated standard stores increased by 206 to a total of 917[14] - Joint-operated standard stores increased by 286 to a total of 843[14]

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]