ATRenew Inc (RERE) 2025 Q1 法說會逐字稿

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to ATRenew Inc's first quarter 2025 earnings conference call. (Operator Instructions) 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.

女士們、先生們，早安、晚上好。感謝您的支持，歡迎參加 ATRenew Inc 2025 年第一季財報電話會議。（操作員指示）現在，我將電話轉給今天的第一位發言者，公司企業發展和投資者關係總監 Jeremy Ji 先生。先生，請繼續。

Thank you. Hello everyone, and welcome to ATRenew first quarter 2025 earnings conference call. Speaking first today is Kerry Chen, our Founder, Chairman and CEO, and he will be followed by Rex Chen, our CFO. After that, we'll open the call to questions from analysts.

謝謝。大家好，歡迎參加 ATRenew 2025 年第一季財報電話會議。今天首先發言的是我們的創辦人、董事長兼執行長 Kerry Chen，隨後是我們的財務長 Rex Chen。之後，我們將開始回答分析師的提問。

The first quarter 2025 financial results were released early today. The earnings press release and investors slides accompanying this call are now available at our website ar.new dotcom. There will also be a transcript following this call for your convenience.

2025年第一季財務業績於今天稍早發布。本次電話會議的收益新聞稿和投資者幻燈片現已在我們的網站 ar.new dotcom 上發布。為了方便您查閱，本次通話結束後也會提供一份文字記錄。

For today's agenda, Kerry will share his thoughts of our quarterly performance and business strategy, followed by Rex, who will address the financial highlights. Both Kerry and Rex will participate during the Q&A session.

今天的議程是，Kerry 將分享他對我們的季度業績和業務策略的看法，隨後 Rex 將介紹財務亮點。Kerry 和 Rex 都將參加問答環節。

Please note that our safe harbor statements. Some of the information you hear during our discussions today will consist of forward-looking statements, and I refer you to our safe harbor statements in the earnings press release.

請注意我們的安全港聲明。您今天在我們討論中聽到的一些資訊將包含前瞻性陳述，我請您參閱收益新聞稿中的安全港聲明。

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.

管理階層在本次電話會議上所做的任何前瞻性陳述均基於今天的假設，且 ATRenew 不承擔升級對這些陳述的假設的任何義務。本次電話會議還包括某些非公認會計準則 (non-GAAP) 財務指標的討論，請參閱我們的收益新聞稿，其中包含非公認會計準則 (non-GAAP) 指標與公認會計準則 (GAAP) 指標的對帳。

Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB and all comparisons on a year to year basis. And now I'd like to turn the call over to Kerry for business and strategy updates.

最後，請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣為單位，並且所有比較均按同比計算。現在我想將電話轉給克里，請他介紹一下業務和策略的最新情況。

(interpreted)

（翻譯）

Hello everyone and thank you for joining ATRenew first quarter 2025 earnings conference call. We are excited to share the updates of our performance and business developments and to address your questions about the company's recent progress.

大家好，感謝您參加 ATRenew 2025 年第一季財報電話會議。我們很高興與大家分享我們業績和業務發展的最新情況，並解答您對公司近期進展的疑問。

Firstly, in terms of operating results, total net revenues for the first quarter once again exceeded the high end of our guidance range, increasing 27.5% year over year to RMB4,653.5 million. On the profitability side, our non-GAAP property income increased by 39.5% year over year to over RMB110 million. Non-GAAP operating margin reached 2.4%, indicating healthy progress compared to the first quarter of last year.

首先，從營運績效來看，第一季總淨收入再次超出我們預期範圍的上限，較去年同期成長27.5%至人民幣46.535億元。在獲利方面，我們的非公認會計準則房地產收入年增39.5%，超過人民幣1.1億元。非公認會計準則營業利益率達到2.4%，與去年第一季相比取得了健康進展。

The strong and stable growth of total revenue was primarily driven by the accelerated growth of our 1P business. We continue to invest in our 1P business and recycling fulfillment capabilities, enhance supply access and strengthen AHS recycle brand recognition among consumers to further improve the penetration of our 1PtoC retail sales in our sales mix.

總營收的強勁穩定成長主要得益於我們1P業務的加速成長。我們持續投資於我們的 1P 業務和回收履行能力，增強供應管道並加強 AHS 回收品牌在消費者中的認知度，以進一步提高我們的 1PtoC 零售銷售在我們銷售組合中的滲透率。

Let me provide more color for the three key drivers of the 1P business. Firstly, in the first quarter, 1P business revenue grew by 28.8% year over year, excluding the high base impact from Apple's official trading program and overseas business as mentioned during the fourth quarter earnings call. Product revenue in the first quarter increased by over 50% year over year, exceeding our expectations.

讓我更詳細地介紹一下 1P 業務的三個關鍵驅動因素。首先，第一季度，剔除第四季度財報電話會議上提到的蘋果官方交易計畫和海外業務的高基數影響，1P業務營收年增28.8%。第一季產品營收年增50%以上，超出我們的預期。

In terms of trends, supported by the national subsidies for smartphones and digital products, as well as increased demand for user upgrades in the scenario of our strategic partner JD.com's platform, our C2B consumer electronics recycling value grew by over 50% year over year.

從趨勢來看，受國家對智慧型手機及數位產品補貼政策以及戰略合作夥伴京東平台場景下用戶升級需求增加的支撐，公司C2B消費電子產品回收價值年增超過50%。

We are committed to advancing strategies on direct engagement with consumers at the front of recycling and retailing. On the capability side, we continue to enhance offline fulfillment capabilities, achieving a net addition of 458 AHS stores year on year by the end of March 2025 and broadening our door to door fulfillment coverage with more prompt service.

我們致力於推動在回收和零售領域與消費者直接接觸的策略。在能力方面，我們繼續增強線下履行能力，截至 2025 年 3 月底，AHS 門市同比淨增 458 家，並透過更快捷的服務擴大門到門履行覆蓋範圍。

The effort improves multiple metrics indicating C2B recycling customer satisfaction and ensures a high quality experience for trading users via national subsidies.

此舉提升了C2B回收客戶滿意度的多項指標，並透過國家補貼確保了交易用戶的高品質體驗。

In terms of our strategic partnership with JD.com, we've strengthened the long-term development supply chain, delivering best in class user experience and efficient fulfillment. By optimizing the trading process, we've reduced barriers to national subsidies, enabling customers to trade in new devices for new ones in a better and cheaper way. This not only stimulates demand but also improves supplies of high quality pre-owned consumer electronics to boost recycling penetration.

就與京東的策略合作夥伴關係而言，我們加強了長期發展供應鏈，提供一流的使用者體驗和高效的履行。透過優化交易流程，我們降低了國家補貼的門檻，讓客戶以更好、更便宜的方式以舊換新。這不僅刺激了需求，而且還改善了高品質二手消費性電子產品的供應，從而提高了回收滲透率。

As a result, the growth of the trade-in segment continues to outpace. Looking ahead, we will continue to enhance our trade-in supply chain and services to expand our market share in the pre-owned consumer electronics industry.

因此，以舊換新領域的成長速度持續加快。展望未來，我們將繼續加強以舊換新供應鏈和服務，擴大我們在二手消費電子產業的市場份額。

Through new media channels with creative marketing and influencer partnerships, encouraging users to experience AHS recycle's wide range of recycling services and accelerating the growth of our recycling channels.

透過具有創意行銷和影響力合作夥伴關係的新媒體管道，鼓勵用戶體驗 AHS recycle 的廣泛回收服務並加速我們回收管道的成長。

We have launched the revived Environmental Protection initiative under the AHS Recycle brand and fully integrated it with our existing initiatives. This encourages more consumer brands to collaborate with us, enhancing user recognition of AHS recycled value proposition and increasing engagement with our services.

我們在 AHS Recycle 品牌下啟動了復興的環境保護計劃，並將其與我們現有的計劃完全整合。這鼓勵更多消費品牌與我們合作，增強用戶對 AHS 回收價值主張的認可，並增加對我們服務的參與度。

In April, while celebrating the Earth Day, we collaborated with 12 leading domestic consumer brands to promote initiatives focused on recycling and the circular economy through joint campaigns across online and offline channels.

四月，在慶祝世界地球日之際，我們攜手國內12家領先消費品牌，透過線上線下聯合活動，推動以回收和循環經濟為重點的舉措。

We enhanced our direct to consumer retail operations under the one business. In the first quarter, 1P2C revenue grew by 73.5% year over year. Retail revenue accounted for 33% of 1P revenue, representing an upward trend.

我們加強了單一業務下直接面向消費者的零售業務。一季1P2C營收年增73.5%。零售收入佔1P收入的33%，呈上升趨勢。

Backed by our refurbishment capabilities, we've seen the pilot program of on-demand refurbishment effectively leverage retail capabilities, creating strong synergies with our in-house compliant refurbishment operations. This approach allows us to offer competitively priced, quality assured 1P refurbished products to users across Paipai, AHS selection, and other retail partner channels.

在我們的翻新能力的支持下，我們看到按需翻新試點計劃有效地利用了零售能力，與我們內部合規的翻新業務產生了強大的協同效應。這種方法使我們能夠向拍拍、AHS 精選和其他零售合作夥伴通路的用戶提供價格具有競爭力、品質有保證的 1P 翻新產品。

As a result, GMV has shown a healthy upward trend quarter over quarter. Additionally, the retail capability of AHS recycles official store network continued to expand, with revenue growing by over 160% year over year. This amplified our product accessibility to consumers.

因此，GMV 呈現逐季度健康上升的趨勢。此外，AHS回收官方店網路的零售能力持續擴大，營收年增超過160%。這擴大了我們的產品對消費者的可近性。

Looking specifically at the Apple official trading business, as mentioned in previous earnings costs, revenue declined year by year in the first quarter due to the high base driven by early stage pricing strategies. However, benefiting from our management capability and operational efficiencies, the margin in this segment improved significantly.

具體來看蘋果官方交易業務，正如先前財報成本中提到的那樣，由於早期定價策略推動的基數較高，第一季營收同比下滑。然而，受益於我們的管理能力和營運效率，該部門的利潤率大幅提高。

For overseas revenues, as we adjusted our business scale, there was a notable improvement in margin as well. Regarding our marketplace businesses, we've seen a marked rise in trading service acceptance among both online and offline users alongside positive shift in merchant demands. In response, we have enhanced our B2B, B2C, and multi-category recycling services to deliver best in class user experience, thereby boosting user loyalty.

對於海外收入，隨著我們調整業務規模，利潤率也有顯著提高。關於我們的市場業務，我們看到線上和線下用戶對交易服務的接受度明顯上升，同時商家需求也發生了正向轉變。為此，我們增強了 B2B、B2C 和多類別回收服務，以提供一流的用戶體驗，從而提高用戶忠誠度。

We've strengthened our industry capabilities as fundamental infrastructure and enhanced services for merchants. As of the end of the first quarter, the number of registered merchants in PJT exceeded 1 million, with a double-digit year over year increase in active trading merchants. The proportion of higher fee OPT services, i.e., shipping quality inspection services, grew, raising PJT marketplaces take rate for the secondhand consumer electronic transactions by 24 basis points.

我們加強了產業基礎建設，並增強了對商戶的服務。截至第一季末，PJT註冊商戶數量突破100萬，活躍交易商家數量較去年同期成長兩位數。收費較高的OPT服務，即航運品質檢驗服務的比例有所增長，導致PJT市場對二手消費電子產品交易的佣金率提高了24個基點。

This reflects PJT's growing nationwide prominence as an essential infrastructure within the industry and as a leading exchange for secondhand electronic products.

這反映了 PJT 作為業界重要基礎設施和二手電子產品領先交易平台在全國各地日益凸顯的知名度。

PGT is pioneering the innovation of secondhand sales models by expanding diverse online and offline sales channels for merchants. In March, we launched our first offline flagship store in Shenzhen's Huaqiangbei, driving transparency in the pre-owned consumer electronics industry. The 1,200 square meter store displays nearly 10,000 secondhand phones that have undergone professional inspections.

PGT透過為商家拓展多樣化的線上線下銷售管道，開創了二手銷售模式的創新。今年3月，我們在深圳華強北開設了第一家線下旗艦店，推動二手消費電子產品產業的透明度。這家佔地1200平方公尺的商店展示了近10,000部經過專業檢測的二手手機。

The flagship store operates under a warehouse to retail model, seamlessly integrating storage and sales functions by offering all in one browse intact purchase experience, it significantly reduces the traditional three to five days of restocking cycle, helping merchants reduce inventory costs and minimize logistics delays.

該旗艦店採用倉儲到零售模式，無縫整合倉儲和銷售功能，提供一站式瀏覽完整的購買體驗，大大縮短了傳統三到五天的補貨週期，幫助商家降低庫存成本並最大限度地減少物流延誤。

On-site procurement also reduces after sales disputes. We will continue to empower more industry merchants, open up our local and national merchant resources to enrich the offline product selection. In addition, we recently began piloting compact authentication warehouses within our self-operated city to streamline the quality inspection process for merchants. These compact warehouses located closer to major trading hubs allow us to operate at lower costs while offering more convenient and accessible services to merchants.

現場採購也減少了售後糾紛。我們將繼續賦能更多行業商家，開放我們本地及全國的商家資源，豐富線下商品選擇。此外，我們最近開始在自營城市試行緊湊型認證倉庫，以簡化商家的品質檢驗流程。這些緊湊的倉庫靠近主要貿易中心，使我們能夠以更低的成本運營，同時為商家提供更便利、更容易獲得的服務。

At the same time, we are exploring collaborations with influencers on live streaming platforms. We opened our 10 and 3D inventory and supply chain on the PJT marketplace to those influencers, which enables them to help users find high quality and cost effective devices, creating the specialty buyer model and enhancing the service loop between PJT and consumers.

同時，我們也在探索與直播平台網紅的合作。我們向這些有影響力的人開放了 PJT 市場上的 10 和 3D 庫存和供應鏈，使他們能夠幫助用戶找到高品質且具有成本效益的設備，創建專業買家模式並增強 PJT 和消費者之間的服務循環。

Moving forward, we will open up more platform capabilities to merchants to boost quality product sales and promote distribution capabilities and compliant growth of pre-owned consumer electronics across regional centers.

未來，我們將向商家開放更多平台能力，促進優質產品銷售，提升跨區域中心的分銷能力及二手消費電子產品合規成長。

This includes expanding merchants to increase the variety and volume of products, strengthening backend systems to improve greater accuracy in pricing and the overall merchant experience while driving higher product turnover. In terms of scale, sales across all categories in the i i consignment business grew by 2.2 times year over year in the first quarter.

這包括擴大商家以增加產品種類和數量，加強後端系統以提高定價準確性和整體商家體驗，同時提高產品週轉率。從規模來看，第一季寄售業務各類別銷售額年增2.2倍。

Looking ahead, we plan to further integrate consignment products into more of our self-operated distribution channels, providing small and medium sized merchants with broader access to retail opportunities.

展望未來，我們計劃進一步將寄售產品融入更多自營通路，為中小型商家提供更廣泛的零售機會。

Throughout the development of multi-category recycling services, both gross transaction value and revenue nearly tripled year over year in the first quarter. Gold recycling saw faster growth, while the recycling service fee for luxury goods increased slightly. As a result of these combined factors, the overall multi recycling take rate remains stable year over year. In terms of user experience, we have continued to optimize our SOPs and internal capabilities across multiple areas, including pre-recycling consultation, pricing, and delivery. As a result, overall customer satisfaction and user experience have improved meaningfully.

在多品類回收服務發展過程中，第一季總交易額和收入年比均成長了近兩倍。黃金回收增速加快，奢侈品回收服務費略有上漲。由於這些因素的綜合作用，整體多回收率較去年同期保持穩定。在使用者體驗方面，我們持續優化回收前諮詢、定價、配送等多個領域的SOP和內部能力。因此，整體客戶滿意度和使用者體驗得到了顯著提升。

In summary, our core businesses achieved faster than expected growth in the first quarter of this year. We seized growth opportunities arising from national subsidies by providing best in class trad in experience. As we enter the second quarter, we are confident in further strengthening our fulfillment capabilities and brand influence. This will enhance users' awareness of trade in and recycling, enabling us to seize the industry growth opportunities.

整體來看，今年第一季我們的核心業務實現了超預期的成長。我們透過提供一流的交易經驗，抓住了國家補貼帶來的成長機會。進入第二季度，我們有信心進一步加強我們的履行能力和品牌影響力。這將增強用戶的以舊換新和回收意識，使我們能夠抓住產業成長機會。

In the long run, as user recognition of recycling and secondhand products continues to rise, the industry is on a positive growth trajectory. With our long term and steadfast scenarios plus supply chain strategy, we are committed to obtaining growth, more user mindshare. Enhancing user experience, ensuring the efficient circulation of secondhand products, and creating greater value. Now I'd like to turn the call over to CFO Rex, for financial updates.

長期來看，隨著使用者對回收及二手產品認可度的不斷提升，業界將呈現良性成長態勢。憑藉我們長期而堅定的方案和供應鏈策略，我們致力於獲得成長和更多的用戶份額。提升使用者體驗，保障二手產品高效流通，創造更大價值。現在我想將電話轉給財務長雷克斯，以了解財務最新情況。

(interpreted)

（翻譯）

Hello everyone. We are pleased to report strong financial performance in the first quarter of 2025, driven by the national subsidy policies or enhanced fulfillment capabilities and expanded retail network. Total revenue in the first quarter once again exceeded the high end of our guidance, increasing by 27.5% to over RMB4650 million, and adjusted operating income increased by 39.5% to over RMB110 million.

大家好。我們很高興地報告，在國家補貼政策或增強的履行能力和擴大的零售網絡的推動下，2025 年第一季的財務表現強勁。第一季總營收再次超出我們預期的上限，成長27.5%，超過人民幣46.5億元；調整後營業收入成長39.5%，超過人民幣1.1億元。

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.

在詳細了解財務狀況之前，請注意，除非另有說明，所有金額均以人民幣為單位，所有比較均按同比計算。

In the first quarter, the growth of total revenues was primarily driven by sustained growth in our net product revenues. Net product revenues increased by 28.8% to RMB4260 million, primarily due to an increase in the sales of free on consumer electronics through our online channels.

第一季度，總收入的成長主要得益於我們淨產品收入的持續成長。淨產品收入成長28.8%至人民幣42.60億元，主要由於透過我們的線上管道免費消費電子產品的銷售額增加。

Net service revenues were 390 million, representing an increase of 14.2%. The increase was primarily due to an increase in the service revenue generated from multicultural recycling business and PJT marketplace. The growth in service revenue went along with the upward trend in our marketplaces overall gross transaction value, delivering an overall marketplace take rate of 5.25% in the first quarter of 2025. During the quarter. Our multi-category recycling business contributed over RMB50 million of revenue, accounting for 13.3% of service revenues. The percentage significantly increased from 5.6% in the same period of 2024.

淨服務收入為3.9億美元，年增14.2%。成長主要由於多元文化回收業務和PJT市場產生的服務收入增加。服務收入的成長與我們市場整體交易總額的上升趨勢一致，2025 年第一季整體市場成交率為 5.25%。在本季度。多品類回收業務貢獻收入超過5,000萬元，佔服務收入的13.3%。該比例較2024年同期的5.6%大幅增加。

Now let's discuss our operating expenses to provide greater clarity on the trends in our actual operating-based expenses, we will mainly discuss our non-GAAP operating expenses, which better reflect how management views our results of operations. The reconciliation of GAAP and non-GAAP results are available in our earnings release and the corresponding Form 6-K furnished with the U.S. SEC.

現在讓我們討論一下我們的營運費用，以便更清楚地了解我們實際營運費用的趨勢，我們將主要討論我們的非公認會計準則營運費用，這更好地反映了管理層如何看待我們的營運結果。我們的收益報告和美國提供的相應 6-K 表格中提供了 GAAP 和非 GAAP 結果的對帳表。證券交易委員會

Merchandise costs increased by 22.7% to RMB3620 million in line with the growth of revenue product sales. Gross profit margin for our 1P business was 15.2% compared with 10.9% in the same period last year. The improvement of gross margin in our 1P business was primarily due to our C2B recycling supply chain capabilities, compliant refurbishment capabilities, and diversified retail channels.

隨著收入產品銷售額的成長，商品成本成長22.7%至人民幣36.20億元。我們的1P業務的毛利率為15.2%，而去年同期為10.9%。我們1P業務毛利率的提高主要得益於我們的C2B回收供應鏈能力、合規翻新能力以及多樣化的零售通路。

In addition, we optimize the business strategy of Apple's official trade-in program. Despite a decrease in business scale from the high base in the first quarter of 2024. The growth margin in the first quarter of 2025 achieved a significant turnaround from losses compared to the same period last year.

此外，我們也優化了蘋果官方以舊換新計畫的業務策略。儘管2024年第一季業務規模較高基數有所下降。2025年第一季的成長幅度與去年同期相比實現了明顯的扭虧。

Fulfillment expenses increased by 38.1% to RMB430 million. Non-GAAP fulfillment expenses increased by 40.2% to RMB430 million. Under the non-GAAP measures, the increase was primarily due to an increase in personnel costs and logistics expenses as we conducted more recycling and transaction activities compared with the same period of 2024 and an increase in operation related expenses as we expanded our store networks and operation center cap capacity in the first quarter of 2025. Then get fulfillment senses as a percentage of total revenues increased to 9.1% from 8.3%.

履約費用成長38.1%，至4.3億元。非美國通用會計準則履約費用增加40.2%至4.3億元。根據非公認會計準則衡量，成長的主要原因是與 2024 年同期相比，我們進行了更多的回收和交易活動，導致人員成本和物流費用增加，以及由於我們在 2025 年第一季度擴大了門市網路和營運中心容量，導致營運相關費用增加。然後獲得滿足感佔總收入的比例從8.3%上升到9.1%。

Selling and marketing expenses increased by 30.4% to RMB420 million. Non-GAAP selling and marketing expenses increased by 72.8% to 390 million. The increase was primarily due to an increase in advertising expenses and promotional campaign related expenses, and an increase in commission expenses in relation to channel service fees.

銷售及市場推廣費用成長30.4%至4.2億元。非美國通用會計準則銷售及行銷費用增加72.8%至3.9億。增加的主因是廣告費用及促銷活動相關費用增加，以及與通路服務費相關的佣金費用增加。

Non-GAAP selling and marketing expenses as a percentage of total revenues increased to 8.3% from 6.1%. And administrative expenses decreased by 14.1% to RMB6 million non-GAAP G&A expenses increased by 2.2% to RMB59 million primarily due to an increase in personnel costs. Non- GAAP G&A expenses as a percentage of total revenues decrease to 1.3% from 1.6%.

非公認會計準則銷售和行銷費用佔總收入的百分比從 6.1% 上升至 8.3%。管理費用下降 14.1% 至 600 萬元人民幣，非 GAAP 管理費用增加 2.2% 至 5,900 萬元人民幣，主要原因是人員成本增加。非公認會計準則一般及行政費用佔總收入的百分比從 1.6% 下降至 1.3%。

Technology and content expenses increased by 9.6% to RMB55 million. Non-GAAP technology and content expenses increased by 16.5% to RMB53 million. The increase was primarily due to an increase in personnel costs. Non-GAAP technology and content expenses as a percentage of total revenues decreased to 1.1% from 1.2%.

科技和內容費用成長9.6%，至5,500萬元人民幣。非美國通用會計準則科技與內容費用成長16.5%至5,300萬元。成長的主要原因是人事成本增加。非公認會計準則技術和內容費用佔總收入的百分比從 1.2% 下降至 1.1%。

As a result, our non-GAAP operating income was RMB110 million in the first quarter of 2025, representing an increase of 39.5% year over year. Non-GAAP operating profit margin was 2.4% compared to 2.2% in the first quarter of 2024.

因此，2025年第一季我們的非公認會計準則營業收入為人民幣1.1億元，較去年同期成長39.5%。非公認會計準則營業利潤率為 2.4%，而 2024 年第一季為 2.2%。

During the first quarter of 2025, we repurchased a total of approximately 0.4 million ADS for approximately USD1.2 million and our current share repurchase program, which authorizes us to repurchase up to USD50 million worth of our shares including ADSs through June 27, 2025. As of March 31, 2025, we had repurchased a total of approximately 10.7 million ADSs for approximately USD27.1 million under this share repurchase.

2025 年第一季度，我們以約 120 萬美元的價格回購了總計約 40 萬股 ADS，我們目前的股票回購計畫授權我們在 2025 年 6 月 27 日之前回購價值最多 5,000 萬美元的股票（包括 ADS）。截至2025年3月31日，我們根據本次股份回購共回購了約1,070萬股ADS，回購金額約2,710萬美元。

As of March 30, 2025, cash and cash equivalents restricted cash, short-term investment, and funds receivable from third party payment service providers totaled RMB2.78 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.

截至2025年3月30日，現金及現金等價物（受限現金、短期投資、應收第三方支付服務商款項）總額為人民幣27.8億元。我們的財務儲備足以支持業務發展的再投資和股東回報。

Now turning to business outlook for the second quarter of 2025, we anticipate total revenues to be between RMB4710 million and RMB4801 million. Representing a year over year increase of 24.7% to 27.4%. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions which are subject to change. This concludes our prepared remarks, operator, we are now ready to take questions.

現在談到 2025 年第二季的業務展望，我們預計總收入將在 47.1 億元至 48.01 億元人民幣之間。年增24.7%至27.4%。請注意，此預測僅反映我們對市場和營運條件的當前和初步看法，這些看法可能會發生變化。接線員，我們的準備好的發言到此結束，我們現在可以回答問題了。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員指示）

Joyce Ju, Bank of America.

美國銀行的 Joyce Ju。

(spoken in foreign language)

（用外語說）

Thanks, management, for taking my questions and congrats for achieving a strong quarter. My first question is on the national subsidy. How effective has the national subsidy been in promoting recycling and trading programs?

謝謝管理層回答我的問題，並祝賀您取得了強勁的季度業績。我的第一個問題是關於國家補貼的。國家補貼對促進回收和交易計畫的效果如何？

Do you see the same growth momentum in your secondhand recycling and resale business as a result? Secondly, in the first quarter, we see that both revenue and non-GAAP operating margins showed strong performance. Could you please help to explain the increase in the non-GAAP fulfillment margin and self-marketing margin? Is there any adjustment to this year's total revenue and margins target? Thank you.

您是否看到二手回收和轉售業務也呈現相同的成長動能？其次，在第一季度，我們看到收入和非公認會計準則營業利潤率都表現強勁。您能否協助解釋非公認會計準則履行利潤率和自我行銷利潤率的增加？今年的總收入和利潤目標有調整嗎？謝謝。

(interpreted) Thank you for the questions. I will take the first and Rex will take the second.

（翻譯）謝謝您的提問。我將獲得第一個，而雷克斯將獲得第二個。

Regarding your first question, according to industry research, the shipment of new smartphones in the domestic market increased by 9% year by year in the first quarter, marking positive growth for the fifth consecutive quarter.

關於第一個問題，根據產業調查，第一季國內智慧型手機市場新機出貨量年增9%，連續第五季實現正成長。

Meanwhile, new consumer electronic sales on our partner platform JD.com has strong growth momentum. The subsidies for trade-in programs combined with our strong positioning in key recycling channels have jointly driven the accelerated growth of our one business.

同時，我們的合作夥伴平台京東的新型消費性電子產品銷售成長勢頭強勁。以舊換新補貼加上我們在主要回收管道的強勢地位，共同推動了我們一項業務的加速成長。

We have previously shared the view that the national subsidies will definitely boost the mobile phone recycling business. That's why industry leading brand awareness, fulfillment capabilities, and unique advantages in essential application scenarios in recycling.

我們之前也分享過這樣的觀點，國家補貼肯定會促進手機回收業務的發展。這就是為什麼我們擁有領先業界的品牌知名度、履行能力以及在回收基本應用場景中的獨特優勢。

AHS recycle is well positioned to benefit from the increasing adoption of recycling in mainstream channels. Currently, the national subsidy cap for mobile phone trade-in is RMB500. However, our average recycling price in one business is approximately RMB1500. This creates a stronger incentive for users to not only take up the national subsidy but also leverage the trade-in service as of AHS recycle.

AHS 回收公司處於有利地位，可從主流通路回收的日益普及中獲益。目前，國家對手機以舊換新的補貼上限為500元。但我們一個業務的平均回收價格大約是1500元人民幣。這為用戶提供了更強的激勵，不僅讓他們接受國家補貼，還讓他們利用 AHS 回收的以舊換新服務。

Looking ahead to the medium to long term, we remain confident in China's strong and consistent commitment to stimulating consumption. In our total transaction volume for pre-owned consumer electronics, mobile phones are the largest category, accounting for approximately 70%.

展望中長期，我們仍然對中國刺激消費的堅定和持續承諾充滿信心。在我們的二手消費性電子產品總交易量中，手機是最大的類別，佔比約70%。

The average replacement cycle for phones is about two years, and there are approximately 300 million new phones and 10million of new laptops and digital devices being shipped annually in China. Currently, the penetration rate for recycling and trading program remains in single digits, but in the long run, we believe there is potential for domestic penetration to raise to over 20%.

手機的平均更新換代週期約兩年，中國每年新手機銷售約3億部，筆電及數位設備銷售量約1,000萬台。目前，回收和交易計畫的滲透率仍維持在個位數，但從長遠來看，我們認為國內滲透率有潛力提高到20%以上。

The main brands and e-commerce platforms we've collaborated with are participating in national subsidy programs with more flexible pricing strategies. Therefore, during the June 18 shopping festival this year, we expect to maintain business growth through trade in services and are committed to strengthening our delivery capabilities to better serve users in recycling and trading.

我們合作的主要品牌和電商平台都參與了國家補貼計劃，定價策略更加靈活。因此，今年618購物節，我們期望透過服務貿易維持業務成長，並致力於加強交付能力，更好地服務回收和交易用戶。

(interpreted) Regarding the second question, the year-on-year improvement of non-GAAP operating profit margin in the first quarter was mainly due to our pricing strategy and balanced control of the overall expense ratio. As Kerry noted in the first quarter of 2024, Apple's official trading program and our overseas business reported high revenue and losses.

(解讀)關於第二個問題，第一季非美國通用會計準則營業利潤率的同比改善主要得益於我們的定價策略以及對整體費用率的均衡控制。正如克里在 2024 年第一季指出的那樣，蘋果官方交易計劃和我們的海外業務都報告了高額的收入和虧損。

However, in the first quarter of 2025, as we optimize business and pricing strategies, the profit margin of the two businesses has significantly improved. Meanwhile, by leveraging our supply chain strengths, the proportion of 1P2C retail revenue increased by 8% year over year.

但到了2025年第一季，隨著我們優化業務和定價策略，兩項業務的利潤率都有了顯著的提升。同時，發揮供應鏈優勢，1P2C零售收入佔比去年同期成長8%。

During the same period, as our 1P business expanded rapidly, we strategically focused on self-operated stores and increased staff in fulfillment and operation functions. Thus, the non-gap fulfillment expense ratio rose by 0.9% year over year.

同期，隨著我們的1P業務迅速擴張，我們策略性地將重點放在自營店上，並增加了履行和營運職能的員工。因此，非缺口履行費用率較去年同期上升了0.9%。

The non-GAAP selling expenses ratio has increased by 2.2%, mainly due to higher promotion and advertising expenses. With rising business demands, we increased coupon-related promotion expenses this quarter. Meanwhile, to raise brand awareness, we made investments aligned with business growth, such as a new media platform of AHS recycle brand.

非公認會計準則銷售費用率增加了2.2%，主要由於促銷和廣告費用增加。隨著業務需求的不斷增長，我們本季增加了與優惠券相關的促銷費用。同時，為了提高品牌知名度，我們進行了與業務成長相適應的投資，例如AHS回收品牌的新媒體平台。

Additionally, in strengthening recycling and trading collaboration with JD.com, channel commissions rose as it's expected. Benefiting from our refined management of general and administrative expenses as well as technology and content expenses, both non-GAAP expenses ratios decrease in the first quarter. As a result, the non-gap operating profit margin for the first quarter increased by 0.2% year over year.

此外，加強與京東的回收及交易合作，通路佣金也如預期上升。受惠於我們對一般及行政費用以及技術和內容費用的精細管理，第一季兩項非公認會計準則費用率均有所下降。因此，第一季非差距營業利潤率年增0.2%。

Looking at the full year of 2025, we remain committed to our goal of accelerating total revenue growth. We will continue to strengthen our fulfillment capacity and brand influence to support growth in trade in volumes driven by national subsidy programs and maintain competitive pricing strategy. In the future, we aim to gradually improve our non-gap operating profit margin, reflecting our effective operating leverage.

展望2025年全年，我們仍致力於加速總營收成長的目標。我們將繼續加強我們的履行能力和品牌影響力，以支持國家補貼計劃推動的貿易量成長，並維持有競爭力的定價策略。未來，我們的目標是逐步提高非差距營業利潤率，以反映我們有效的營業槓桿。

[Xiao Wang], CICC.

[小王]，中金公司。

(spoken in foreign language) Thank you for taking my question. As you mentioned earlier, your goal is to accelerate store openings this year with a target of 9 out of 800 HS recycled stores. Can you share details on the progress of store opening in the first quarter? Thank you.

（以外語說）感謝您回答我的問題。正如您之前提到的，您今年的目標是加快開店速度，目標是在 800 家 HS 再生商店中開設 9 家。能否分享一下第一季開店的具體進度？謝謝。

(interpreted) As of March 30, 2025, there were a total of 1,886 NHS recycled stores nationwide, including 917 self-operated stores and 969 joint operated stores. The total number of stores has increased by a net of 458 compared to the same period last year.

(解讀)截至2025年3月30日，全國共有1886家NHS再生商店，其中自營店917家，聯營店969家。門市總數較去年同期淨增加458家。

Compared to the end of 2024, in certain areas of three high tier cities, we transitioned some of our joint operated stores to a self-operated model to effectively handle the incremental trading volumes from national subsidies and improve user satisfaction. This change allows us to leverage the more efficient self-management, a self-managed operational capabilities to quickly boost the recycling performance of these stores.

與2024年底相比，在三個高線城市的某些區域，我們將部分聯營店轉變為自營模式，以有效處理國家補貼帶來的增量交易量並提高用戶滿意度。這項變革使我們能夠利用更有效率的自我管理、自主管理的營運能力來快速提升這些商店的回收績效。

Over the same period, our two door fulfillment team expanded by 360 people year over year to 1,000 people, strengthening our fulfillment capabilities in more markets.

同期，我們的雙門履行團隊年增 360 人，達到 1,000 人，增強了我們在更多市場的履行能力。

We are increasing the proportion of face-to-face services by extending both in-store and two-door services. In our NPS service, users are much more satisfied with those, with these two face to face offline services featuring instant confirmation than with logistics-based pickup. We will continue to enhance our offline fulfillment capabilities to provide the best in class trade-in experience. Thank you for the question.

我們正在透過擴展店內服務和雙門服務來增加面對面服務的比例。在我們的NPS服務中，使用者對這兩種面對面、即時確認的離線服務滿意度遠高於物流自提。我們將繼續增強我們的線下履行能力，以提供一流的以舊換新體驗。謝謝你的提問。

Michael Kim, Zacks Small Cap Research.

Michael Kim，Zacks Small Cap Research。

Great, good morning and good evening, everyone. Just one question from me, just in terms of your initiatives to enhance the AHS recycle brand, can you discuss how much traction you've seen as a result of your increased focus on marketing and advertising and then just related to that. How should we be thinking about incremental expenses or customer acquisition costs as you continue to prioritize improving brand awareness and loyalty. Thanks.

太好了，大家早安，晚上好。我只想問一個問題，就您為提升 AHS 回收品牌所做的舉措而言，您能否討論一下，由於您更加註重營銷和廣告，您看到了多大的吸引力，然後與此相關。當您繼續優先提高品牌知名度和忠誠度時，我們應該如何考慮增量費用或客戶獲取成本。謝謝。

Okay, thank you for your question.

好的，謝謝你的提問。

(interpreted) AHS Recycle has solidified its position as a leading brand in recycling by providing best of fulfillment services. We believe that high quality services and proactive response to user feedback are the cornerstones of brand reputation.

(解釋) AHS Recycle 透過提供最佳的履行服務鞏固了其作為回收領域領先品牌的地位。我們相信，高品質的服務和積極響應用戶回饋是品牌聲譽的基石。

Given the current low penetration rate of recycling services, we have strategically employed well planned new media campaigns to promote our services and enhance brand awareness.

鑑於目前回收服務的普及率較低，我們策略性地採用了精心策劃的新媒體活動來推廣我們的服務並提高品牌知名度。

On the one hand, we introduce engaging content, showcasing our recycling services, emphasizing AHS recycles competitive pricing, security, and convenience. On the other hand, by leveraging geo targeting, we guide users to nearby AHS recycled stores, driving orders through our mini program, official website, and AHS stores.

一方面，我們推出引人入勝的內容，展示我們的回收服務，強調 AHS 回收的競爭性定價、安全性和便利性。另一方面，透過地理定位，我們引導用戶到附近的AHS回收商店，透過我們的小程式、官方網站和AHS商店推動訂單。

Furthermore, we enhance the new media presence of our joint operated stores by co-creating content that resonates with local users, thereby attracting more customers to the stores. As a result, in the first quarter, the product revenue from AHS mini program and official websites grew faster than our overall 1P business.

此外，我們透過共同創作與當地用戶產生共鳴的內容來增強聯營店在新媒體上的影響力，從而吸引更多顧客到店。因此，第一季AHS小程式和官網的產品營收成長速度快於我們整體1P業務。

The national subsidy has also played a role in increasing user awareness and adoption of our services. Looking ahead, we will continue to strengthen the AHS recycle brand and refine our industry leading recycling service offerings to capture greater market share and reinforce user perception.

國家補貼也在提高用戶對我們服務的認知和採用方面發揮了作用。展望未來，我們將繼續加強 AHS 回收品牌並完善我們行業領先的回收服務產品，以佔領更大的市場份額並加強用戶認知。

Okay, thank you.

好的，謝謝。

As there are no further questions at this time, I'd like to turn the conference back to management for closing remarks.

由於目前沒有其他問題，我想將會議交還給管理階層結束語。

Thank you. Thank you again for joining us. A reply with today's call will be available on our website shortly, followed by a transcript ready. If you have any additional questions, please feel free to email us at ir@atrenew.com. Have a good day.

謝謝。再次感謝您的參與。對今天電話會議的回覆將很快發佈在我們的網站上，隨後會準備好一份記錄稿。如果您還有其他問題，請隨時發送電子郵件至ir@atrenew.com。祝您擁有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。