ATRenew - Earnings Call - Q2 2025
August 20, 2025
Transcript
Speaker 0
Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to ATRenew Inc.'s second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks. Please note today's event is being recorded. I will now turn the call over to the first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the company. Please go ahead, sir.
Thank you. Hello everyone, and welcome to ATRenew's second quarter 2025 earnings conference call. Speaking first today is Kerry Xuefeng Chen, our Founder, Chairman, and CEO, and he will be followed by Rex Chen, our CFO. After that, we will open the call to questions from the panelists. The second quarter 2025 financial results were released earlier today. The earnings press release and the investor slides accompanying this call are now available at our AI website, ai.atrenew.com. There will also be a transcript following this call for your own convenience. For today's agenda, Kerry will share his thoughts on our quarterly performance and business updates, followed by Rex, who will address the financial highlights. Both Kerry and Rex will participate during the Q&A session.
Please note that our safe harbor statements, some of the information you hear during our discussion today, will consist of forward-looking statements, and I refer you to our safe harbor statements in the earnings press release. Any forward-looking statements that management makes on this call are based on assumptions as of today, and that ATRenew does not take any obligations to upgrade our assumptions on these statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures. Finally, please note that, as otherwise stated, all figures mentioned during this conference call are in RMB, and all comparisons are on a year-over-year basis. I now like to turn the call over to Kerry for business and strategy updates.
Speaker 4
好, 各位投资者和分析师, 大家好, 欢迎参加ATRenew 2025年第二季度业绩电话会。非常高兴呢与各位。
Speaker 0
Ladies and gentlemen, please remain online while we reconnect the line.
Speaker 3
Great, thanks.
Speaker 0
Certainly. I'll send both of my screens. Go ahead.
我今天比较想预考, 今年能不能上。我们想谈论的话题是什么?
Speaker 3
今年。
Speaker 0
谢谢各位, 请拨电话。
Okay, I can hear you now. I can hear the voice from the Shanghai office.
Ladies and gentlemen, please hold a moment while we rejoin the line for JC. We have been rejoined by the main speaker line. Please go ahead.
Speaker 4
Okay, sorry for the disconnect. While we go back, let's continue. 各位投资者和分析师, 大家好。欢迎参加ATRenew Inc. 2025年第二季度业绩电话会。我们非常高兴与各位更新二季度超预期达成的收入增长和经营动态, 并回应各位对于集团经济发展的关注。我们还会对下半年的业务布局以及能力建设进行一些分享。
Speaker 0
Hello everyone, and thank you for joining ATRenew's second quarter 2025 earnings conference call. We are pleased to update you on our above-expectation revenue growth and operational dynamics this quarter, address your questions on the progress, and share our business plans and capability-building initiatives for the second half of this year.
Speaker 4
首先, 我们在二手行业稳定快速发展的轨道上, 通过持续的创新, 领跑行业的发展, 实现了超出指引区间高端的收入。二季度集团总收入达¥4.99 billion, 同比增长32.2%。其中, 1P产品收入同比增长34%至¥4.56 billion, 3P服务收入同比增长15.4%至¥430 million, 收入增幅增速较大幅度的超出了上一季度给出的预期。Non-GAAP的经营利润率2.4%。在加大品牌投入、加速开店、加强各项能力建设的背景之下, 符合我们今年的经营利润率预期。以上扎实的业绩得益于我们在前端加强建设的低手回收货源场景, 不断夯实的门店加上门履约交付能力。爱回收以卓越的用户体验构建更强的国民第一回收品牌用户心智。
Speaker 0
First, riding the stable and rapidly growing trajectory of the second-hand industry, we achieved revenue exceeding the high end of our guidance through continuous innovation and industry leadership. In the second quarter, our total revenue reached ¥4.99 billion, representing year-over-year growth of 32.2%. Within this, 1P product revenue grew by 34% year-over-year to ¥4.56 billion, while 3P service revenue increased by 15.4% year-over-year to ¥430 million, with revenue growth rates significantly exceeding the guidance we set last quarter. Non-GAAP operating profit margin was 2.4%, meeting our full-year target alongside brand investment, accelerated store expansion, and enhanced capability-building initiatives. These solid results stem from our enhanced front-end development of recycling scenarios and continuously strengthened in-store and doorstep fulfillment capabilities. Through the best-in-class user experience, AHS Recycle is building stronger brand recognition as China's top recycling brand.
Speaker 4
具体来看，1P业务中得益于国补与618电商大促，以及我们和更多优质的消费电子品牌官方渠道共建的回收和以旧换新的供应链能力，C2B回收业绩在二季度保持了快速的双位数增长，尤其是在京东以旧换新场景看到了颇为亮点的同比增长。
Speaker 0
Taking a closer look, within our 1P business, our C2B recycling business maintained robust double-digit growth in the second quarter, benefiting from national subsidies and June 18 e-commerce promotional campaigns, alongside expanded partnerships with high-quality consumer electronics brands to jointly develop recycling and trading supply chain capabilities. Notably, we observed a distinctive year-over-year growth performance in JD.com's trading scenarios.
Speaker 4
回收业绩的达成同样与我们大前端的交付能力息息相关。我们坚定落实加速开店的目标，截止二季度末，全国爱回收门店总数达2,092家，包括包含了在一二线城市的987家自营门店和在中低线城市开设的1,105家加盟门店，方便用户就近到店交付。此外，自营上门人数截止2022季度末达到1,160人。我们通过智能派端履约能力拓展了更广泛的履约范围，运力能够更灵活地适应电商大促期间激增的订单量，同时也提升了履约的时效率时效性。作为结果，我们的渠道拓展和交付能力建设为用户创造了更优质的回收和以旧换新体验。
Speaker 0
The recycling achievements are closely tied to our front-end fulfillment capabilities. We remain committed to our accelerated store expansion strategy. By the end of the second quarter, we operated 2,092 AHS Recycle stores nationwide, including 987 self-operated stores in Tier 1 and Tier 2 cities and 1,105 jointly operated stores in lower-tier cities, enabling users to access nearby in-store services in a convenient manner. Additionally, our self-operated two-door service team expanded to 1,160 personnel at the end of the second quarter. Benefiting from our intelligent order dispatch and fulfillment capabilities, we have broadened our coverage area and strengthened our capacity to manage volume surges during major promotional periods while enhancing fulfillment time limits. Consequently, our channel expansion and fulfillment capability upgrades collectively create superior recycling and trading experiences for users.
Speaker 4
值得一提的是，我们的门店和上门交付团队共同承接了一二线城市近90%的订单量，在三线城市承接了近80%的订单量。我们持续通过自主可控的交付网络建设，提升面对面交付，当场确认放款的订单占比，提升用户服务体验。在更加下层的县域市场中，由于门店密度和上门人员的暂时性的限制，我们面对面的交付订单比重低于50%。未来仍然有较大的开店和建设上门交付能力的空间。
Speaker 0
Notably, our in-store and two-door teams collectively handle nearly 90% of orders in the first and second-tier cities and about 80% in the third and fourth-tier cities. We continuously increase the proportion of orders with face-to-face services, order confirmation, and payment by expanding our self-operated fulfillment network, therefore enhancing user experience. In lower-tier cities, temporary constraints in store density and two-door staffing limited our face-to-face fulfillment order ratio to below 50%, leaving significant room for store expansion and two-door capability building.
Speaker 4
在供应链方面，我们持续发挥成熟的端到端能力，进一步发挥合规翻新整备能力。二季度合规翻新在1P中的收入占比进一步提升到13.5%，其中以销定修在二季度新增笔记本和智能手表品类，单季度的GMV突破¥100 million。合规翻新为我们的拍拍严选、AHS Recycle官网和门店以及抖音新渠道、抖音新媒体等渠道提供了更多可以零售的商品。作为结果，二季度自营严选收入取得了63.7%的快速同比增长，1P2C的收入占比进一步提升至34.4%，为终端用户创造了更多价值。
Speaker 0
In terms of our supply chain capabilities, we continue leveraging mature end-to-end capabilities while expanding combined refurbishment capacity. In the second quarter, refurbished products contributed 13.5% of 1P product revenue. Notably, our on-demand refurbishment model added laptops and smartwatches to its scope, generating over RMB 100 million GMV in the quarter. Compliant refurbishment operations expand retail-ready products for our channels, such as Paipai Selection, AHS Official Website, AHS Store, and Douyin platforms. Consequently, 1P2C retail revenue surged 63.7% year-over-year in the second quarter, accounting for 34.4% of product revenue. This continuous improvement reflects our value creation for more retail users.
Speaker 4
platform business segments,
Speaker 0
Our 3P service revenue also sustained growth in the second quarter, increasing by 15.4% year-over-year with an overall take rate of 5.3%. Let's zoom in on the three core business segments.
Speaker 4
Ji Tang platform achieved healthy double-digit growth.
Speaker 0
First, our B2B marketplace, Pai Ji Tang (拍机堂), sustained a strengthened industry openness by providing open supply chain services to merchants and Douyin users. Specifically, warehousing inspection GMV surged year-on-year, increasing the warehousing inspection penetration rate for B2B platform operations from 62% in the first quarter of 2024 to 73% in the second quarter of 2025. Meanwhile, we also captured new user traffic and growth opportunities through the innovative specialty buyer model, with cumulative registered users exceeding 1.16 million. In the second quarter, Pai Ji Tang (拍机堂) achieved robust double-digit growth in overall performance.
Speaker 4
rate and creating high-quality, cost-effective second-hand product transaction value for more users.
Speaker 0
Second, our B2C marketplace in developing Paipai's 3P business. As we previously shared, we have implemented a consignment model designed to provide enhanced operational convenience for small and medium-sized second-hand merchants. Under this model, the Paipai team handles product and store management, traffic operations, and after-sales services on behalf of merchant users. This consignment approach ensures consistent front-end product listing, standardized service quality, managed product quality, and reliable after-sales support, resulting in comprehensive improvements to both sales performance and user experience. Daily in-stock inventory volumes of Paipai consignment service have now increased by 100% compared to the first quarter of this year. Paipai's consignment GMV in the second quarter surged 128% year-over-year, driving a modest recovery in the platform's take rate and delivering cost-effective second-hand product transactions to a broader user base.
Speaker 4
第三, 多品类、双品类回收业务的GMV与相关相关服务收入在本季度均实现了接近100%、110%的同比增长, 收费率3.4%。服务能力随着我们加速开店的战略进一步拓展, 截止6月末已有692家AHS Recycle直营门店与112家加盟门店开通了多品类回收业务, 精准匹配不同的门店地理位置、不同商圈和社区的用户消费习惯。我们基于AHS Recycle自营门店升级了奢侈品回收服务, 结合了AI技术的应用, 提升商品自动识别能力, 综合提升用户的回收体验和价格体验, 打造了行业最佳的用户体验。平台模式的多品类回收服务提升本地门店的店效, 不增加额外的成本投入, 支持我们开出更多优质的线下门店。
Speaker 0
Third, multi-category recycling GMV and related service revenue both increased by nearly 110% year-on-year this quarter, with a take rate of 3.4%. Service coverage extended alongside our accelerated store opening strategy. As of June 30, 692 self-operated stores and 112 strongly operated stores launched multi-category recycling services, tailoring offerings to local user consumption habits based on store locations and commercial districts. Building on our upgraded luxury recycling services at AHS Recycle self-operated stores, we leverage AI technology to enhance automated identification capabilities to improve the recycling and pricing experiences for users, thus defining a best-in-class user experience. Our platform-based multi-category recycling service boosts local store efficiency without additional kitaks, enabling further expansion of our high-quality offline store network.
Speaker 4
以上是我们在运营层面行之有效的实践。对于集团的长期战略，我们在7月初举办了一次线下调研交流，借本次财报电话会的机会，来与各位投资者和分析师更新ATRenew的三大战略目标。
Speaker 0
The aforementioned reflects our effective operational practices. As for our long-term strategy, we would like to take this earnings call as an opportunity to update our investors and analysts on ATRenew's three strategic goals, which we last spoke on during our offline investor day in early July.
Speaker 4
第一个目标, 在国补和政策促进内需消费的背景下, 我们以独特的换新场景价值和综合的供应链能力与JD.com、Apple等战略伙伴为用户打造行业最佳的以旧换新体验。通过融合2C、2B与合规翻新的综合供应链能力, ATRenew持续巩固中国最大、最强的二手手机3C交易与服务龙头的行业地位。根据第三方机构CIC的数据, 中国市场的二手手机3C回收渗透率只有个位数, 对比发达经济体30%以上的回收渗透率, 有着充足的上行发展空间。
Speaker 0
The first goal, against the backdrop of national subsidies and policies stimulating domestic consumption, we leverage the value of our unique trading programs and comprehensive supply chain capabilities to partner with strategic allies such as JD.com and Apple, delivering the best-in-class trading user experience. By integrating our comprehensive supply chain capabilities across P2C, P2B, and compliant refurbishment operations, ATRenew continues to strengthen our position as China's largest and most robust leader in the transaction and service of pre-owned consumer electronics. According to third-party data from CIC, China's recycling penetration rate for pre-owned consumer electronics remains in single digits, versus over 30% in developed economies, indicating substantial growth potential.
Speaker 4
第二个目标, 在居民消费环境发生变化的背景之下, 我们以爱回收独特的品牌价值, 复用全国超过2,000家以上的爱回收门店资源, 持续以平台模式探索更多高值品类商品的回收业务, 在二手回收领域开辟增长新路径, 致力于将爱回收打造成为国民第一回收品牌。
Speaker 0
The second goal, in response to the changing consumer landscape, we leverage AHS Recycle's distinctive brand value and utilize our nationwide network of over 2,000 AHS stores to continuously expand our platform-based recycling businesses across additional high-value product categories. This strategy creates new growth opportunities for us in the second-hand recycling market, and we are committed to establishing AHS Recycle as China's top recycling brand.
Speaker 4
第三个目标，在绿色消费大潮兴起的背景之下，我们将发挥独特的商业模式优势，结合商场加社区的独特线下场景能力，将低频高值场景的商业变现与高频低值场景的用户获取形成闭环，致力于成为绿色消费模式的创新典范。
Speaker 0
Moving up to the third goal, capitalizing on the surging momentum of freeing consumption, we will leverage our unique business model advantage, combined with our distinctive field-track offline presence, spanning both shopping malls and communities. This positioning enables us to create a closed-loop ecosystem that seamlessly integrates commercial monetization and user acquisition across both low-frequency high-value and high-frequency low-value transactions, reinforcing our commitment to becoming a pioneer of sustainable consumption.
Speaker 4
有一点值得强调的是，几乎所有的商业模式都是让用户从钱包里面拿钱消费，但AHS Recycle的商业模式是往用户的钱包里面充值，这是很独特的一个商业模式。8月1日，AHS Recycle Green Wallet产品已经上线，因为用户的绿色行为，用户可以在这里以极高的折扣优惠购买到越来越多的商品。我们将通过与更多的消费品品牌联名推广环保回收与绿色消费，让越来越多的用户参与进来，真正让回收和绿色消费成为新时尚。这是我们更加长远的目标，也是AHS Recycle的使命，让闲置不用的物尽其用的价值体现。
Speaker 0
I'd like to point out that all business models take money from their accounts, while AHS Recycle adds money to our users' accounts. Our business model is unique and disruptive. On August 1, we launched the AHS Recycle Green Wallet, enabling users to purchase a growing range of products at surprise discounts in recognition of their eco-friendly actions. Through co-branded partnerships with consumer brands, we promote eco-friendly recycling and green consumption, engage an increasing number of users, and set a new trend of genuine new lifestyle. This represents our long-term vision and embodies our mission to give a second life to all idle goods.
Speaker 4
以上三个目标是我们践行长期使命的方向规划，也是支持业绩加速发展的战略基础。我们在今年年初曾经判断，今年具有国家手机数码产品以旧换新补贴和二手行业发展的机会，所以说在年初的预算中判断今年的收入增长会不降反升，略快于去年同去年收入的同比增速。进入三季度，我们对达成全年经营目标保持充分的信心。
Speaker 0
These three strategic goals represent our roadmap for fulfilling our long-term commitments and form the fundamental strategy driving accelerated business growth. Earlier this year, we identified emerging opportunities from national trading subsidies from consumer electronics alongside the expanding second-hand market. Accordingly, our initial guidance estimated that this year's revenue growth will not only sustain its momentum but accelerate further, slightly surpassing last year's growth. As we enter the third quarter, we have strong confidence in meeting our full-year operational objectives.
Speaker 4
出于对集团业绩的充分信心，我们欣然宣布一项三年期的股东回报计划，在2025年至2027年将集团年度Non-GAAP净利润不低于60%的比例返还给股东，形式包括分红、股购、回购或者两者相结合的方式。
Speaker 0
Based on strong confidence in our performance, we are pleased to announce a three-year shareholder return plan, committing to return no less than 60% of our annual Non-GAAP net profit to shareholders via dividends, share repurchases, or a combination of both from 2025 through 2027.
Speaker 4
最后补充一个ESG动态，今年6月我们发布了第五份年度ESG报告，并首次设定了碳减排的目标，即以2024年为基准，目标于2030年将范围一和范围二的温室气体排放强度下降35%，并将范围三的排放强度降低50%。关于其他ESG亮点及与绩效提升，欢迎欢迎访问集团投资者关系网站查询报告全文。
Speaker 0
One more thing, our ESG progress. In June this year, we released our fifth annual ESG report, marking a significant milestone with our first carbon reduction commitment. Using 2024 as our baseline year, we have set ambitious targets to reduce Scope 1 and Scope 2 greenhouse gas emission intensity by 35% and Scope 3 emission intensity by 50% by 2030. You are more than welcome to explore more about our ESG highlights and improvements from the full report, which is available on our investor relations website.
Speaker 4
下面请CFO Rex对财务数据进行解读。
Speaker 0
Now, I'd like to turn the call over to CFO Rex Chen for financial updates.
Speaker 1
各位投资者和分析师，大家好。我们很高兴与各位分享2025年第二季度取得强劲的财务表现。在国家消费电子以旧换新补贴政策落地的背景下，二手电产品的回收及以旧换新渗透率借势提升。我们精准服务以旧换新场景，持续建设履约交付能力和供应链能力，加强AHS Recycle的品牌力，并以此有效抓住了加速增长的机会。
Speaker 0
Hello everyone, we are pleased to report strong financial performance in the second quarter of 2025. As national trading subsidies for consumer electronics fueled by market growth, we witnessed a surge in the demand for used device recycling and trade-in, enabling us to capture accelerated opportunities through high-precision trading services, upgraded fulfillment capabilities, and a stronger AHS Recycle brand.
Speaker 1
billion, 同比增长32.2%。Non-GAAP净利润超¥120 million, 2024年同期Non-GAAP净利润为¥94.15 million。
Speaker 0
Total revenue in the second quarter once again surpassed the high end of our guidance, increasing by 32.2% to over RMB 4,990 million, and adjusted operating income was over RMB 120 million, compared to adjusted operating income of RMB 94.1 million in the same period of 2024.
Speaker 1
all growth figures are year-over-year.
Speaker 0
Before taking a detailed look at the financials, please note that all amounts are in RMB, and all comparisons are on a year-over-year basis unless otherwise stated.
Speaker 1
第二季度集团总收入的增长动力主要来自产品收入的持续稳健增长。产品收入增长34%至45.6亿元, 主要得益于公司线上渠道二手消费电子产品销售的增长。
Speaker 0
In the second quarter, the growth of total revenues was primarily driven by continued growth in both our net product revenue and net service revenues. Net product revenues increased by 34% to RMB 4,560 million, largely attributable to the growth in online sales of pre-owned consumer electronics.
Speaker 1
and showing a healthy growth trend.
Speaker 0
Net service revenues were RMB 430 million in the second quarter, representing an increase of 15.4%. The increase was largely driven by the growth in service revenue from our 3P multi-category recycling operations. The overall take rate of our marketplace was 5.3% for the second quarter of 2025, up slightly year-over-year and quarter-over-quarter. During the quarter, our multi-category recycling business contributed over RMB 63 million of revenue, accounting for 14.7% of service revenues and representing a healthy upward trend.
Speaker 1
在运营费用方面，我们主要讨论Non-GAAP口径的费用分析，以展示管理团队视角的费用趋势。关于GAAP和Non-GAAP口径之间的调整，请参考我们的财务报告与呈交给美国证券交易委员会的6K表格。
Speaker 0
Now, let's discuss our operating expenses. To provide greater clarity on the trends in our actual operating base expenses, we will mainly discuss our Non-GAAP operating expenses, which better reflect how management views our operating results. The reconciliations of GAAP and Non-GAAP results are available in our earnings release and the corresponding Form 6K furnished with the U.S. SEC.
Speaker 1
a significant improvement compared with the same period last year.
Speaker 0
Merchandise costs increased by 32.3% to RMB 3,960 million, in line with the growth in product sales. Gross profit margin for our 1P business was 13.2%, compared with 12.1% in the same period last year. The gross margin improvement in our 1P business was primarily driven by high-efficiency C2B recycling scenarios, compliant refurbishment capabilities incorporated in our supply chain, and an increasingly diversified retail channel mix. This allowed us to increase the proportion of higher margin retail sales, with 1P2C revenue accounting for 34.4% of product revenue in the second quarter of 2025, up from 28.2% in the same period last year. Additionally, the high base impact from Apple's trade-in program in 2024 has eased, with a significantly improved gross margin in this segment through better pricing strategies.
Speaker 1
Non-GAAP旅游费用增长27.3%至¥410 million。Non-GAAP旅游费用增长主要原因有, 一、与2024年同期相比, 回收和交易量的增加导致人力和物流费用增加。2024年第二季度拓展线下交互网络运营费用相应增加, Non-GAAP旅游费用率从8.5%下降至8.2%。
Speaker 0
Fulfillment expenses increased by 26% to RMB 410 million. Non-GAAP fulfillment expenses increased by 27.3% to RMB 410 million. Under the Non-GAAP measures, the increase was mainly driven by higher personnel and logistics expenses, reflecting a greater volume of recycling and transaction activities compared to the same period in 2024. Additionally, operation-related costs rose as we expanded our store network and enhanced operation center capacity in the second quarter of 2025. Non-GAAP fulfillment expenses, as a percentage of total revenue, decreased to 8.2% from 8.5%.
Speaker 1
from 7.5% to 7.8%.
Speaker 0
Selling and marketing expenses increased by 14.9% to RMB 410 million. Non-GAAP selling and marketing expenses increased by 36.7% to RMB 390 million. The increase was primarily driven by higher advertising and promotional campaign-related spending, as well as an uptick in commission expenses associated with channel service fees. As a result, Non-GAAP selling and marketing expenses as a percentage of total revenues increased to 7.8% from 7.5%.
Speaker 1
at 1.5%, unchanged at 1.5%.
Speaker 0
General and unused strategic expenses increased by 6.9% to RMB 77.5 million. Non-GAAP G&A expenses also increased by 33.6% to RMB 75.1 million, primarily due to an increase in personnel costs. Non-GAAP G&A expenses as a percentage of total revenues remained stable at 1.5%.
Speaker 1
remained unchanged at 1.2%.
Speaker 0
Technology and content expenses increased by 25.5% to RMB 62.5 million. Non-GAAP technology and content expenses increased by 33.2% to RMB 58.2 million as well. The increase was primarily driven by elevated personnel expenses. Non-GAAP technology and content expenses as a percentage of total revenues remained stable at 1.2%.
Speaker 1
year, and remained flat quarter-over-quarter.
Speaker 0
As a result, our Non-GAAP operating income was over RMB 120 million in the second quarter of 2025, compared to Non-GAAP operating income of RMB 94.1 million in the second quarter of 2024. Non-GAAP operating profit margin was 2.4% for this quarter, compared to 2.5% in the second quarter of 2024, representing a modest decline of 6 basis points. The margin stabilized at 2.4% compared to the previous quarter.
Speaker 1
12.3 million ADS.
Speaker 0
During the second quarter of 2025, we repurchased a total of approximately 1.6 million ADS for approximately $4 million. As of June 30, 2025, we had repurchased a total of approximately 12.3 million ADS for approximately $31.1 million and the previous $50 million share repurchase progress.
Speaker 1
by Kerry Xuefeng Chen.
Speaker 0
On June 30, we announced that the Board of Directors authorized a new share repurchase program, under which the company may repurchase up to $50 million of its shares over a 12-month period, starting from June 30, 2025. The share repurchase program will be implemented in conjunction with the three-year shareholder return plan previously shared by Kerry.
Speaker 1
截至2025年6月30日，现金及现金等价物、受限资金、短期投资以及第三方支付平台应收账款合计¥2.35 billion。公司的资金储备充足，能够支持对业务发展的再投入和股东回报。
Speaker 0
As of June 30, 2025, cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers totaled RMB 2.35 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.
Speaker 1
关于2025年第三季度的指引，我们预计总收入将在¥5.05 billion至¥5.15 billion，对应同比增长24.7%至27.1%。以上指引仅反映当前我们对市场和运营状况的初步看法，预期有可能变化。
Speaker 0
Now turning to the business outlook. For the third quarter of 2025, we anticipate total revenues to be between RMB 5,050 million and RMB 5,150 million, representing a year-over-year increase of 24.7% to 27.1%. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change.
Speaker 1
以上是我们的业绩重点分享, 欢迎各位提问交流。
Speaker 0
This concludes our prepared remarks. Operator, we are now ready to take questions.
Speaker 5
In the question and answer session, to ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your question.
Speaker 0
All free at the moment.
Speaker 1
这是我们的问题。
Speaker 0
Probably due to technical issues, we are not able to hear the operator line. Hi, operator, we're not able to hear you clearly.
Speaker 5
Apologies, this is the operator. Can you hear me?
Speaker 0
Yes, please proceed.
Speaker 1
请问收到再拨呢?
Speaker 0
Speaker...
Speaker 5
Please repeat your question in English for the convenience of everyone on the call. Once again, if you would like to ask a question, you may press star and then one.
Speaker 0
Hello, George, please come back. We're on the line. Yeah, hello, this is George on Bank of America. Could you hear me?
Speaker 6
Yes.
Speaker 4
Yes.
Speaker 6
你好，不好意思，管理层你好，我趁着天气的话，这边我就开始发问了。因为我们想看到这个季度我们的增长是否还是相对比较强劲的呢？然后就是想了解一下公司对今年下半年的增长预期是怎么样的？有哪些业务层面的抓手去应对，就是因为去年八月国家的家电补贴带来的一个阶段性的业绩增长，以及呢，我们今年对于整体的今年全年的收入和利润的目标会不会有一些更新？那我可以翻译一下。 Given the strong growth momentum in the first half, what are the company's growth expectations for the second half of the year? What are your measures to tackle the high base in the third quarter due to the hypothetical national subsidy that was implemented in August last year? Additionally, will the company actually have an updated version of the three-year revenue and profit target? Thank you very much.
Speaker 1
OK, 谢谢。我来回答一下，从长期的角度去展望，我们认为以旧换新加二手消费的循环经济商业模式呢，有长期的潜力，占新品销售的占新品消费的比例也会逐步提升，因为新一代消费者对于自价比有着更强的认可，对于二手的绿色消费的接受度也在日益提升。从发展的眼光来看待行业，这应该是一个循序渐进、逐步蓄力树立品牌和服务心智，将以旧换新作为新品默认的购买方式的长期发展过程，和其他的行业一样，需要用户教育和心智培养。
Speaker 0
From a longer-term perspective, we believe the circular economy model centered on trade-ins and second-hand consumption holds enduring potential, with its share of new product consumption gradually rising. This stems from younger consumers' heightened appreciation for quality-to-price ratios and increasing acceptance of green second-hand consumption. Viewing industry development through an evolutionary view, this will be a long-term process requiring progressive brand and service recognition building, normalizing trade-ins as the default purchasing method for new products. Like other sectors, it necessitates user education and main-site cultivation.
Speaker 1
现阶段，包括未来两年，我们需要做的核心的事项，一个是要尽可能的建设回收履约交付能力，包括门店和上门的能力，让安全便捷、价格好的回收服务更加触手可及。另一个是要把国民第一回收品牌爱回收这个C端品牌打出去，并且做好品牌的口碑，支撑爱回收在未来十年、二十年甚至更长期的良好发展。
Speaker 0
At the current stage and during the next two years, we are focusing on two core strategy priorities. First, we are maximizing our recycling and fulfillment capabilities, including in-store and two-door capabilities, allowing safe, convenient, and competitively priced recycling and services more accessible. Second, we are positioning AHS Recycle as China's leading recycling brand while building strong brand equity, ensuring AHS Recycle can effectively serve users' second-hand recycling and purchasing needs for the next decade and even next generation.
Speaker 1
今年9月份，头部品牌厂商新机发布带来重要改款，我们期待爱回收将抓住机会，服务好用户的回收和以旧换新的需求。在收入预期方面，我们对于下半年的增长充满信心。
Speaker 0
In the September list here, new device launches from leading brands will generate significant upgrade opportunities. We expect to capitalize on this cycle to serve Chinese consumers' recycling and trade-in demands. We are confident in realizing our revenue growth targets for the second half of this year.
Speaker 1
在利润预期方面，今年我们对品牌的能力建设加大投入的策略没有变化，因此我们会保持良性的利润预期，预计明年会逐步见到规模效应带来的经营利润率的提升，并且创造长期价值。
Speaker 0
Regarding profitability expectations, we maintain our strategy of enhanced investment in brand and capability building, supporting healthy profit outlook. We anticipate scale effects to gradually drive improvements in operating profit margin starting next year to create longer-term value.
Speaker 1
OK, 谢谢。
Speaker 0
Thank you. Operator, please open the line to the second question.
Speaker 5
Question from Michael Kim of Zac Small Cap Research. Please go ahead.
Speaker 2
Great. Good morning and good evening, everyone. Just one question from me. Just from a supply standpoint, any notable trends in trade-in activity via JD.com or your offline stores in terms of volumes or the underlying mix of products? Related to that, any updated thoughts on how the subsidies have obviously impacted volumes more recently and what gaining do you think we might be in as it relates to subsidy-driven growth? Thanks.
Speaker 4
Okay, thank you for your question. 首先呢, 从二季度的经营结果来看, 智能手机仍然是C2B用户回收需求最旺盛的品类, 其中受益于用户对于以旧换新的认知和接受度的提升, 爱回收与京东共建的以旧换新场景保持较快的增速。同时伴随我们前端门店和上门团队的交付能力, 交付履约能力的提升, 一线至四线城市用户选择线下交付履约的比例可以达到接近%, 达到80%, 从而能够获得更好的回收和以旧换新的体验。
Speaker 0
Our results from the second quarter demonstrate that smartphones remain the strongest C2B recycling category, benefiting from rising user acceptance of trade-ins. The trade-in program co-launched by JD.com and AHS Recycle sustained robust growth. Enhanced in-store and two-door fulfillment capabilities enabled 80% offline fulfillment adoption across tier 1 to tier 4 cities, elevating user experience.
Speaker 1
对于国补的预期, 我们保持对有关政策的密切关注。从近期有关部门的文件中, 今年国家补贴的额度和执行力度层面, 我们明确感受到国家对于支持消费、促进消费的决心。在国补政策落地期间, 我们积极提升履约交付能力, 积极响应政策促进的用户换新与救机回收需求, 抓住优质供给的增长机会与回收渗透率提升的机会。C2B回收业绩在二季度保持了较高的双位数增长, 尤其是在JD.com的以旧换新场景看到了颇为亮点的同比增长。
Speaker 0
Regarding national subsidies, we closely monitor policy developments. Recent government directives signal a strong commitment to stimulating consumption through substantial subsidy allocations. During implementation, we optimized fulfillment to capture subsidy-driven replacement demands, delivering impressive double-digit growth in C2B recycling results. The recycling results were particularly strong in JD.com's trade-in scenarios.
Speaker 1
其中在我们所服务的电商以旧换新场景里，有独特的苹果换苹果的模式，由品牌厂商直接对未能享受到国家补贴的机型提供换新服务。我们合作的其他品牌厂商同样有着类似的促销策略，促销策略品牌和平台有更强的意愿去增加换新的补贴力度。
Speaker 0
Mostly, our Apple-to-Apple trade-in model offers brand-funded incentives for devices that were not eligible for the national subsidy. Other brand partners we collaborate with have implemented similar promotional strategies. Brand owners and e-commerce platforms have a stronger motivation to invest in trade-in subsidies.
Speaker 1
展望未来的发展路径呢，我们认为以旧换新和二手消费的新制的发展将有更强的确定性，可以成为更主流的消费方式。为此呢，我们将进一步拓展回收和以旧换新的场景，坚定地建设好，建设好优质的到店与上门履约交付能力，积极发展AHS Recycle品牌的影响力，为用户带来更优质的回收和回收体验。
Speaker 0
Moving forward, trade-in and second-hand consumption will gain further traction as mainstream behaviors. We will expand recycling and trade-in scenarios, strengthen store and door-to-door fulfillment, amplify AHS Recycle's brand influence, and deliver superior value and user experiences.
Speaker 4
Okay, thank you.
Speaker 0
Operator, please take the next question, please.
Speaker 5
on my end?
Speaker 4
可以。
Speaker 5
好的, 那首先恭喜强劲的业绩啊。我有两个问题, 那第一个问题是请问公司的这个苹果官方业务啊, 还有海外业务在二季度有怎么样的一个调整, 然后对咱们业绩有怎样的影响啊, 以及呢能否分享一下在回收端咱们与哪些品牌厂商有一些新的, 比如说合作渠道方面的进展啊。我自己翻译一下啊, good evening management, congratulations for the strong results. I have two questions. The first one is, could you please share the adjustments you made to the Apple official business and overseas business, and what impact did they have on your financial performance? The second question is, could you share some progress regarding new cooperation channels with brand manufacturers in the recycling sector? Thank you.
Speaker 4
感谢啊。我们在Apple中国官网和直营旗舰店所支持的以旧换新业务，自从去年3月以来已经实现了扭亏为盈，此前分享的2024年第一季度收入高基数的影响也基本已经消化掉。预计该业务板块在今年全年会有较好的产品收入贡献，并且对集团集团的大盘业务实现正向的经营利润贡献。
Speaker 0
Our Apple trading business, which operates through Apple China's official website and direct flagship stores, has maintained profitability since March of last year. We have successfully absorbed the impact from the high revenue base established in the first quarter of 2024, which we previously discussed. We anticipate this business segment will contribute solid product revenue for the full year while generating positive operating profits for us.
Speaker 4
在Apple品牌以外, 我们还与国内一系列的优质品牌厂商建立了合作的场景, 并在Huawei商城、Xiaomi商城等合作场景内取得了显著比例的回收和以旧换新的风口。今年我们除了主营的AHS Recycle门店、官网、JD.com、Apple官网以及旗舰店、Alipay渠道之外, 还拓展了Honor、DJI、ZTE等品牌厂商的官方合作。
Speaker 0
Beyond Apple, we partner with high-quality domestic brands, capturing significant recycling and trading shares on platforms like Huawei Mall and Xiaomi Mall. We have established a wide array of mature C2B recycling scenarios, including AHS stores, JD.com, Apple official website and flagship stores, and Alipay. This year, we tapped into Honor, DJI, and ZTE's official retail scenarios and built new partnerships. We embedded second-hand supply chain into new scenarios.
Speaker 4
优质的一手回收货源场景始终是我们战略的核心之一，未来我们将持续探索更多的优质货源场景，持续以高效的供应链能力为用户提供更好的回收体验和价格体验。
Speaker 0
High-quality recycling supply sources remain a core strategic priority. We will actively identify better supply scenarios and leverage efficient supply chain capabilities to enhance service experiences and price transparency for users.
Speaker 4
另外呢, 关于海外业务, 我们正在积极探索中, 并且已经取得了有效的突破。我们期望下个季度有能有更多的信息和大家分享。
Speaker 0
In addition, regarding the international business, we are making active operation explorations. We look forward to providing more color on our progresses next quarter.
Speaker 4
OK, 谢谢。
Speaker 0
Thank you.
Speaker 4
Thank you. Thank you all again for joining us. The replay of today's call will be available on our ATRenew website shortly, followed by a crafted transcript when ready. If you have any additional questions, please feel free to email us at [email protected]. Have a nice day.