ATRenew(US:RERE)2025-11-20 13:00Financial 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]