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    Michael Kim • Zacks Small-Cap Research

    Michael Kim's questions to ATRenew Inc (RERE) leadership

    Michael Kim's questions to ATRenew Inc (RERE) leadership • Q2 2025

    Question

    Michael Kim of Zacks Small Cap Research asked about supply-side trends in trade-in activity, particularly through JD.com and offline stores, focusing on volumes and product mix. He also sought an update on the impact of government subsidies and the current stage of subsidy-driven growth.

    Answer

    Management confirmed that smartphones remain the strongest C2B recycling category, with the JD.com partnership showing robust growth. They noted that national subsidies drove impressive double-digit growth in C2B recycling. The company also leverages brand-funded incentives for devices not eligible for national subsidies. They believe trade-ins are becoming mainstream and plan to continue expanding recycling scenarios and strengthening fulfillment capabilities.

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    Michael Kim's questions to ATRenew Inc (RERE) leadership • Q1 2025

    Question

    Michael Kim from Zacks Small-Cap Research questioned the traction gained from recent initiatives to enhance the AHS Recycle brand. He also asked about the expected trend for incremental expenses or customer acquisition costs associated with these marketing efforts.

    Answer

    Founder, Chairman & CEO Kerry Chen stated that brand building is centered on providing best-in-class service. He detailed a new media strategy involving engaging content and geo-targeting to drive traffic to stores and online platforms, which resulted in faster growth for the AHS Mini Program and official website compared to the overall 1P business. He affirmed that the company will continue to invest in strengthening the brand to capture market share and enhance user perception.

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    Michael Kim's questions to ATRenew Inc (RERE) leadership • Q4 2024

    Question

    Michael Kim requested an update on the company's capital management priorities, specifically how it balances reinvesting for growth against returning capital to shareholders through stock buybacks.

    Answer

    CFO Chen Chen explained that the primary goal for 2025 is reaccelerating growth, necessitating OpEx reinvestments in front-end services and brand building. He noted that emerging businesses are now profitable and require no new investment, and no significant CapEx is planned. The company will maintain a balanced approach, continuing its share repurchase program while using cash to seize industry opportunities and maximize long-term shareholder returns.

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    Michael Kim's questions to ATRenew Inc (RERE) leadership • Q3 2024

    Question

    Michael Kim of Zacks Small-Cap Research asked for insights on market trends for pre-owned smartphones, focusing on transaction volumes and the tailwinds on both supply and demand sides.

    Answer

    Xuefeng Chen Kerry, Founder, Chairman & CEO, responded that on the supply side, cross-category trading and compliant refurbishment capabilities are key drivers. He noted that the coverage rate of compliant refurbishment has grown from single digits to meaningful double digits. On the demand side, he pointed to strong growth in direct-to-consumer (1P2C) sales, which grew 120% year-over-year, indicating that cost-effective purchasing options are gaining acceptance among consumers.

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    Michael Kim's questions to QuantaSing Group Ltd (QSG) leadership

    Michael Kim's questions to QuantaSing Group Ltd (QSG) leadership • Q3 2025

    Question

    Michael Kim inquired about the strategic vision for the newly acquired pop toy company, LETZVAN, asking how QuantaSing plans to leverage its marketing expertise for growth and requesting details on LETZVAN's current sales mix by product, IP, channel, and geography.

    Answer

    Founder, Chairman & CEO Peng Li outlined a five-pillar strategy for LETZVAN, focusing on IP incubation, product innovation, influence expansion, supply chain optimization, and an omni-channel growth strategy. CFO & Director Dong Xie added that the immediate focus is on two to three core IPs, expanding through retail partnerships and direct channels, with Mainland China as the primary market while initiating expansion into Southeast Asia.

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    Michael Kim's questions to QuantaSing Group Ltd (QSG) leadership • Q2 2025

    Question

    Michael Kim of JPMorgan Chase & Co. asked about the current contribution of the 'silver demographic' to the user base and the specific strategies to accelerate sales to this group. He also inquired about the outlook for maintaining profitability, specifically the adjusted net margin, during the company's ongoing business transition.

    Answer

    CEO Peng Li detailed a multi-pronged strategy for the growing 'silver economy' sector, including tailored health courses, related wellness products, specialized study tours, and community engagement to drive sales. CFO Dong Xie addressed profitability, acknowledging that short-term investments might cause margin volatility but expressed confidence that a disciplined cost approach, operational efficiency, and business diversification would support long-term margin stability as new segments mature.

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    Michael Kim's questions to QuantaSing Group Ltd (QSG) leadership • Q1 2025

    Question

    Michael Kim of Cantor Fitzgerald asked about the impact of China's macroeconomic environment on the business and the expected evolution of the customer acquisition cost (CAC) to lifetime value (LTV) ratio during the strategic pivot to the silver economy.

    Answer

    CEO Peng Li stated that government support for the 'silver economy' creates a positive tailwind, as seniors have stable consumption patterns that can weather macro shifts. CFO Dong Xie added that they expect a favorable LTV to CAC ratio, driven by leveraging their existing user base for new private label products, which reduces acquisition costs and increases potential for repeat purchases.

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