ATRenew Inc (RERE) 2025 Q2 法說會逐字稿

Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to the ATR New Inc's second-quarter 2025 earnings conference call. (Operator Instructions) Please note, today's event is being recorded.

女士們、先生們，早安，晚上好。感謝您的耐心等待，歡迎參加 ATR New Inc 2025 年第二季財報電話會議。（操作說明）請注意，今天的活動正在錄製中。

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.

現在我將把電話交給今天的第一位發言人，公司企業發展與投資者關係總監 Jeremy Ji 先生。請繼續，先生。

Thank you. Hello, everyone, and welcome to ATR New Inc's second-quarter earnings conference call. Speaking first today is Kerry Cheng, our Founder, Chairman and CEO, and he'll be followed by RexCon, our CFO. After that, we will open the call to questions from the end list. The second quarter 2025 financial results were released earlier today.

謝謝。大家好，歡迎參加 ATR New Inc. 第二季財報電話會議。今天首先發言的是我們的創辦人、董事長兼執行長 Kerry Cheng，接下來是我們的財務長 RexCon。之後，我們將開放提問環節，接受名單最後的問題。2025年第二季財務業績已於今日稍早發布。

The earnings press release and the investor slides accompanying this call are now available at our IR website, atrenew.au.com. There'll also be a transcript following this call for your earning convenience. For today's agenda, Cary will share his thoughts on our quarterly performance and lease 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 statement.

本次財報新聞稿和投資者關係簡報現已發佈在我們的投資者關係網站 atrenew.au.com 上。為了方便您了解財報，本次電話會議結束後也會提供文字稿。在今天的議程中，Cary 將分享他對我們季度業績和租賃更新的看法，隨後 Rex 將介紹財務亮點。Kerry 和 Rex 都將參加問答環節。請注意我們的安全港聲明。

Some of the information you'll 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 renew does not take any obligation to upgrade our assumptions on these statements.

今天我們討論中您將聽到的一些資訊包含前瞻性陳述，請參閱我們在盈利新聞稿中的「安全港」聲明。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截至今日的假設，且renew不承擔任何更新這些陳述所依據的假設的義務。

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 unless otherwise stated, all figures mentioned during this conference call are in RMB and all comparisons are on a year-over-year basis.

此外，本次電話會議也將討論某些非GAAP財務指標。請參閱我們的獲利新聞稿，其中包含非GAAP指標與GAAP指標的調節表。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，所有比較均以同比為基礎。

I'd now like to turn the call over to Kerry for business and strategy update.

現在我想把電話交給 Kerry，請他介紹一下業務和策略的最新情況。

(Spoken in Foreign Language)

（用外語說）

Ladies and gentlemen, please remain on line while we try to reconnect.

女士們、先生們，請繼續保持在線，我們正在嘗試重新連線。

Ladies and gentlemen, please hold a moment while we rejoin the line for JC.

女士們先生們，請稍等片刻，我們重新排隊等候JC。

We have been rejoined by the main line. Please go ahead.

我們已經重新接入主線。請繼續。

Okay, sorry for the disconnect. We go back. Let's continue.

好的，抱歉剛才斷線了。我們回去。我們繼續。

(interpreted) Hello, everyone, and thank you for joining ATRenew 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.

（翻譯）大家好，感謝各位參加 ATRenew 2025 年第二季財報電話會議。我們很高興向您報告本季超出預期的營收成長和營運動態。我們將解答您關於進展的問題，並分享我們下半年的業務計劃和能力建設舉措。

First, providing the stable and rapidly growing trajectory of the secondhand 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 RMB4.99 billion, representing year-over-year growth of 32.2% and within this, 1P product revenue grew by 34% year-over-year to RMB4.56 billion, while three service revenue increased by 15.4% year-over-year to RMB430 million with revenue growth rates significantly exceeding the guidance we set last quarter.

首先，憑藉二手產業穩定且快速成長的趨勢，我們透過持續創新和產業領導地位，實現了超過預期上限的收入。第二季度，我們的總營收達到人民幣49.9億元，年增32.2%。其中，1P產品營收年增34%至人民幣45.6億元，三項服務收入較去年同期成長15.4%至人民幣4.3億元，營收成長率均顯著超過我們上季設定的預期。

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 strengthen in-store and door staff fulfillment capabilities. Through the best-in-class user experience, AHS recycle is building a stronger brand recognition as China's top recycling brand.

非GAAP營業利潤率為2.4%，實現了全年目標，這得益於品牌投資加速了門市擴張和能力建設舉措的加強。這些實質成果源自於我們加強了回收方案的前端開發，並持續提升了店內和門市工作人員的執行能力。憑藉一流的用戶體驗，AHS回收正在打造更強的品牌知名度，成為中國領先的回收品牌。

Taking a closer look within our 1P business, our C2B restructuring business maintained robust double-digit growth in the second quarter, benefiting from national subsidies and June 18's e-commerce promotional campaigns alongside expanded partnerships with high-quality consumer electronics brands to jointly develop recycling and trading supply chain capabilities.

仔細觀察我們的 1P 業務，我們的 C2B 重組業務在第二季度保持了強勁的兩位數增長，這得益於國家補貼和 6 月 18 日的電子商務促銷活動，以及與優質消費電子品牌擴大合作，共同發展回收和貿易供應鏈能力。

Notefully, we observed a distinctive year-over-year growth performance in JD trading scenarios. The resulting achievement is 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 stores nationwide including 987 self-operated stores in Tier 1 and Tier 2 cities and 1,152 operating stores in lower-tier cities enabling users to access nearby in-store services and in a convenient manner.

值得注意的是，我們在京東交易場景中觀察到了明顯的年成長表現。最終取得的成果與我們的前端執行能力密切相關。我們將繼續推動加速門市擴張策略。截至第二季末，我們在全國各地經營了 2,092 家 AHS 門市，其中包括一線和二線城市的 987 家自營門市以及低線城市的 1,152 家營運門市，使用戶能夠以便捷的方式獲得附近的店內服務。

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 fetch 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.

此外，截至第二季末，我們自主營運的雙門服務團隊已擴充至 1,160 人。憑藉我們智慧化的訂單取得和履行能力，我們擴大了覆蓋範圍，增強了在主要促銷期間應對訂單量激增的能力，同時提高了履行時限。

Consequently, our channel expansion and fulfillment capability upgrades collectively create superior recycling and trading experiences for users. Mostly, our in-store and to 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 increased the proportion of orders with face-to-face services.

因此，我們的通路拓展和履約能力提升共同為用戶創造了更優質的回收和交易體驗。總的來說，我們的門市團隊和送貨上門團隊共同處理了一二線城市近 90% 的訂單，以及三、四線城市約 80% 的訂單。我們不斷提高面對面服務訂單的比例。

Other confirmation and payments 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 to our capability building.

透過擴展我們自主運作的履行網絡，實現其他確認和付款，從而提升用戶體驗。在低線城市，由於門市密度和雙門市員工配置的暫時限制，我們的面對面訂單履行率低於 50%，這為我們的能力建設留下了很大的門市擴張空間。

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 revenue. Mostly, our on-demand refurbishment model added laptops and smart watches to its scope, generating over RMB100 million in the quarter. Compliance refurbishment operations expand retail-ready products for all channels such as pipe selection, AHS, official website, AHS store and doing platforms.

就我們的供應鏈能力而言，我們繼續利用成熟的端到端能力，同時擴大綜合翻新能力——第二季度，翻新產品貢獻了 1P 收入的 13.5%。我們的按需翻新模式主要增加了筆記型電腦和智慧手錶，本季創造了超過1億元的收入。合規翻新業務擴展了面向所有管道的零售即用產品，例如管道選擇、AHS、官方網站、AHS 商店和營運平台。

Consequently, 1 P2C 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. 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 quarters business segments. First, our B2B marketplace, stone strengthened industry openness by providing open supply chain services to merchants and doing users.

因此，第二季 P2C 零售收入年增 63.7%，佔產品收入的 34.4%。這種持續改進體現了我們為更多零售用戶創造的價值。第二季度，我們的第三方服務收入也保持成長，年增 15.4%，整體成長率為 5.3%。讓我們仔細分析這三個業務板塊。首先，我們的 B2B 市場透過向商家和使用者提供開放的供應鏈服務，加強了產業的開放性。

Specifically, warehousing inspection GMV searched year-on-year, increasing the warehousing infection 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 capture new user traffic and growth opportunities through the innovative specialty buyer model with cumulative registered users exceeding 1.16 million. In the second quarter, IDT achieved robust double-digit growth in overall performance.

具體而言，倉儲檢驗GMV逐年成長，B2B平台營運的倉儲感染滲透率從2024年第一季的62%上升到2025年第二季的73%。同時，我們也透過創新的專業買家模式獲得了新的用戶流量和成長機會，累計註冊用戶超過 116 萬人。第二季度，IDT 的整體業績實現了強勁的兩位數成長。

Second, our B2C marketplace in developing pipe pipe 3P business. As we previously shared, we have implemented a consignment model designed to provide enhanced operational convenience for small- and medium-sized secondhand merchants.

其次，我們的 B2C 市場正在發展管道 3P 業務。正如我們之前分享的那樣，我們實施了一種寄售模式，旨在為中小型二手商品商家提供更大的營運便利。

Analyst model, the pipe 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 lifting, standardized service quality, managed product quality and reliable aftersales support, resulting in comprehensive improvements to both sales performance and user experience.

分析師模型中，管道團隊代表商家用戶處理產品和商店管理流量營運以及售後服務。這種寄售方式確保了前端產品提取的一致性、服務品質的標準化、產品品質的可控性以及售後支援的可靠性，從而全面提升了銷售業績和用戶體驗。

Daily in-stock inventory volumes of ipi consignment service have now increased by 100% compared to the first quarter of this year. Pipe is consignment GMV in the second quarter surged 128% year-over-year, driving a modest recovery in the platform take rate and delivering cost-effective secondhand product transactions to a broader user base. Third, we take her through reflecting GMV and related service revenue both increased by nearly 110% year-on-year this quarter, with a take rate of 3.4%.

與今年第一季相比，ipi寄售服務的每日庫存量增加了100%。第二季度，Pipe 的寄售商品交易總額年增 128%，推動平台成交率小幅回升，並為更廣泛的用戶群體提供了經濟高效的二手商品交易。第三，我們向她展示了本季GMV和相關服務收入均年增近110%，轉換率為3.4%。

Service coverage expanded alongside our accelerated store opening strategy. As of June 30, 692 self-operating stores and 112 strongly operated stores launched multicast recycling services tailoring offerings to local user consumption behabits based on store locations and commercial districts.

隨著我們加速門市擴張策略的實施，服務覆蓋範圍也隨之擴大。截至 6 月 30 日，692 家自主經營門市和 112 家實力雄厚的門市推出了多通路回收服務，根據門市位置和商業區，為當地用戶的消費習慣量身定制服務。

Building on our upgraded luxury resecting services at AHS self-operated stores, we leverage AI technology to enhance automated identification capabilities to improve the recycling and pricing experiences for users, thus defining on best-in-class user experience. Our platform-based multicategory recycling service boost local store efficiency without additional CapEx, enabling further expansion of our high-quality off-line store network. The aforementioned reflects our effective operational practices.

在 AHS 自營門市升級豪華切割服務的基礎上，我們利用人工智慧技術增強自動識別能力，以改善用戶的回收和定價體驗，從而定義一流的用戶體驗。我們基於平台的多類別回收服務無需額外資本支出即可提高本地商店效率，從而進一步擴展我們高品質的線下商店網路。上述內容體現了我們高效率的營運實務。

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 of Investor Day in early July.

至於我們的長期策略，我們希望藉此財報電話會議的機會，向我們的投資者和分析師介紹 ATRenew 的三個戰略目標，我們上次在 7​​ 月初的投資者日上談到了這些目標。

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 is such as JD.com and Apple, delivering the best-in-class trading user experience.

在國家補貼和刺激國內消費的政策背景下，我們的首要目標是利用我們獨特的貿易項目和全面的供應鏈能力，與京東、蘋果等戰略合作夥伴攜手，提供一流的交易用戶體驗。

By integrating our comprehensive supply chain capabilities across B2C, B2B and compliant refurbishment operations, ATRenew continues to strengthen our position as China's largest and most robust leader in the transaction and service of spring on consumer electronics.

透過整合我們在 B2C、B2B 和合規翻新業務方面的綜合供應鏈能力，ATRenew 不斷鞏固其作為中國消費電子產品翻新交易和服務領域規模最大、實力最強的領導者的地位。

According to third-party data from CIC, China's reflecting penetration rate for print owned consumer electronics remains in single digit versus over 30% in developed economies, indicating substantial growth potential.

根據第三方數據來源CIC的數據，中國印刷版消費性電子產品的零售滲透率仍為個位數，而已開發經濟體則超過30%，顯示中國具有巨大的成長潛力。

The second goal in response to the changing consumer landscape, we leverage it AHS recycled distinctive brand value and utilize our nationwide network of our 2,000 AHS stores to continuously expand our platform-based reflecting businesses across additional high-value product categories. This strategy creates new growth opportunities for us in the secondhand recycling market, and we are committed to establishing AHS recycle as China's top restructuring brands.

第二個目標是應對不斷變化的消費環境，我們利用 AHS 回收的獨特品牌價值，並利用我們遍布全國的 2,000 家 AHS 門市網絡，不斷擴展我們基於平台的零售業務，涵蓋更多高價值產品類別。這項策略為我們在二手回收市場創造了新的成長機會，我們致力於將 AHS 回收打造成為中國頂級的重整品牌。

Moving up to the third goal, capitalizing on the certain momentum of ring consumption, we will leverage our unique business model advantage, combined with our distinctive ultra offline presence, spanning both shopping malls and communities.

邁向第三個目標，我們將利用戒指消費的確定勢頭，發揮我們獨特的商業模式優勢，結合我們獨特的超線下佈局，涵蓋購物中心和社區。

This positioning enables us to create a cross-look 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. I'd like to point out that all business models take money from their accounts, while as recycle as many to our users' accounts. Our business model is unique and disruptive.

這種定位使我們能夠創建一個跨視角的生態系統，將商業貨幣化和用戶獲取無縫整合到低頻高價值交易和高頻低價值交易中，從而強化我們致力於成為永續消費先驅的承諾。我想指出的是，所有商業模式都會從自己的帳戶中扣款，同時盡可能地將資金循環到我們用戶的帳戶中。我們的商業模式獨樹一幟，具有顛覆性。

On August 1, we launched the AHS recycled green wallet enabling users to purchase a growing range of products at supply 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 new lifestyle. This represents our long-term vision and embodies our mission to give a second life to all either no.

8 月 1 日，我們推出了 AHS 可回收綠色錢包，用戶可以透過該錢包以供應折扣購買越來越多的產品，以表彰他們的環保行動。我們透過與消費品牌的聯合品牌合作，推廣環保回收和綠色消費，吸引越來越多的用戶，引領新的生活風格潮流。這代表了我們的長期願景，體現了我們賦予所有物品第二次生命的使命。

These threee strategic goals represents our road map 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 secondhand 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.

這三大策略目標代表了我們履行長期承諾的路線圖，並構成了推動業務加速成長的基本策略。今年早些時候，我們發現了國家對消費電子產品的貿易補貼以及不斷擴大的二手市場帶來的新興機會。因此，我們最初的預測是，今年的營收成長不僅將保持勢頭，而且會進一步加速，略微超過去年的成長。

As we enter the third quarter, we have strong confidence in meeting our full year operational objectives. Based on our strong confidence in our performance, we are pleased to announce a three-year shareholder return program committing to return low debt than 60% of our annual non-GAAP net profit to shareholders via dividends, share repurchases or a combination of both from 2025 through 2027. . 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 commitments.

進入第三季度，我們對實現全年營運目標充滿信心。基於我們對自身業績的堅定信心，我們很高興地宣布一項為期三年的股東回報計劃，承諾從 2025 年到 2027 年，透過股息、股票回購或兩者結合的方式，將低於年度非 GAAP 淨利潤 60% 的低債務返還給股東。。還有一件事，關於我們在ESG方面的進展。今年6月，我們發布了第五份年度ESG報告，這是我們首次做出碳減排承諾，標誌著一個重要的里程碑。

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 gold-grade 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. Now I'd like to turn the call over to CFO, Rex for financial updates.

以 2024 年為基準年，我們設定了雄心勃勃的目標，到 2030 年將範圍 1 和範圍 2 的溫室氣體排放強度降低 35%，將黃金品位排放強度降低 50%。歡迎您造訪我們的投資者關係網站，查閱完整報告，以了解更多關於我們 ESG 方面的亮點和改進措施的資訊。現在我想把電話交給財務長雷克斯，讓他報告一下財務狀況。

(interpreted) Hello, everyone. We are pleased to report strong financial performance in the second quarter of 2025. As natural trading subsidies Consumer electronics fueled by market growth, we witnessed a search in the demand for used device retesting and trade-in, enabling us to capture accelerated opportunities through high precision trading services upgraded fulfillment capabilities and a stronger AHS recycled brands.

（譯）大家好。我們很高興地宣布，2025年第二季財務業績表現強勁。隨著消費性電子產品市場成長帶來的自然貿易補貼，我們看到對二手設備再測試和以舊換新的需求不斷增長，這使我們能夠透過高精度貿易服務、升級的履行能力和更強大的AHS回收品牌來抓住加速發展的機會。

Total revenue in the second quarter once again surpassed the high end of our guidance increasing by 32.2% to over RMB4,990 million and adjusted [EBITDA]. 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.

第二季總營收再次超出預期上限，較去年同期成長32.2%，超過人民幣49.9億元（經調整後）。[EBITDA]。在詳細查看財務數據之前，請注意，除非另有說明，所有金額均以人民幣計，所有比較均以同比為基礎。

In the second quarter, the growth of total revenue was primarily driven by continued growth in both our net product revenue and net service revenues Net product revenues increased by 34% to CNY4,260 million, largely attributable to the growth in online sales of spring owned consumer electronics. Net service revenues were RMB430 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-customer recycling operations.

第二季度，總收入的成長主要得益於淨產品收入和淨服務收入的持續成長。淨產品收入成長34%至42.6億元人民幣，主要歸功於春夏消費性電子產品線上銷售的成長。第二季淨服務收入為人民幣4.3億元，年增15.4%。此成長主要得益於我們第三方多客戶回收業務的服務收入成長。

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 market carrefactoing business contributed over RMB53 million of revenue accounted for 14.7% of service revenues and representing a healthy upward trend.

2025 年第二季度，我們市場的整體成交率為 5.3%，年比和季比均略有成長。本季度，我們的市場化生產業務貢獻了超過5,300萬元的收入，佔服務收入的14.7%，呈現健康的上升趨勢。

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.

現在我們來討論一下營運費用。為了更清楚地說明我們實際營運基礎費用的趨勢，我們將主要討論非GAAP營運費用，這能更清楚反映管理階層對我們經營績效的看法。

The reconciliation of GAAP and non-GAAP results are available in our earnings release and the corresponding Form 6-K furnished with the US SEC. Merchandise costs increased by 32.3% to 3,960 million, in line with the growth in product sales.

GAAP 和非 GAAP 結果的調整表可在我們的獲利報告中查閱，並可向我們提交給美國證券交易委員會的相應 6-K 表格查閱。商品成本成長了 32.3%，達到 39.6 億，與產品銷售成長一致。

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 restructuring scenarios compliant refurbishment capabilities incorporated in our supply chain and an increasingly diversified retail channel mix.

我們的1P業務毛利率為13.2%，去年同期為12.1%。我們 1P 業務毛利率的提高主要得益於高效的 C2B 重組方案、符合規範的翻新能力以及日益多元化的零售通路組合。

This allows us to increase the proportion of higher-margin retail sales with one B2C 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 Atos trading program in 2024 has eased with significantly improved gross margin in this segment through better pricing strategies.

這將使我們能夠提高高利潤零售額的比例，其中 B2C 收入在 2025 年第二季度佔產品收入的 34.4%，高於去年同期的 28.2%。。此外，由於Atos交易計劃在2024年帶來的高基數影響有所緩解，並透過更好的定價策略顯著提高了該業務板塊的毛利率。

Fulfillment expenses increased by 26% to CNY410 million. Non-GAAP performant expenses increased by 27.3% to RMB410 million. Under the non-GAAP measures the increase was mainly driven by higher personnel and logistics expenses, reflecting a greater volume of restructuring and transaction activities compared to the same period in.

物流配送費用增加26%至4.1億元。 （非GAAP準則）績效費用成長27.3%，達到人民幣4.1億元。根據非GAAP指標，成長主要由人員和物流費用增加所致，反映出與去年同期相比，重組和交易活動的數量增加。

Additionally, operation-related costs rose as we expanded our store network and enhance operation center capacity in the second quarter of 2015. Non-GAAP fulfillment expenses as a percentage of total revenues decreased to 8.2% from 8.5%.

此外，隨著我們在 2015 年第二季擴大門市網路和提高營運中心容量，營運相關成本也有所上升。非GAAP履行費用佔總收入的百分比從8.5%下降到8.2%。

Selling and marketing expenses increased by 14.9% to RMB410 million. Non-GAAP selling and marketing expenses increased by 36.7% to RMB390 million. The increase was primarily driven by higher advertising and promotional campaign related spending as far as an uptick in commission expenses associated with channel service fees.

銷售及市場推廣費用成長14.9%至人民幣4.1億元。 （非GAAP準則）銷售及市場推廣費用成長36.7%，達到人民幣3.9億元。成長的主要原因是廣告和促銷活動相關支出增加，以及與通路服務費相關的佣金支出上升。

As a result, non-GAAP selling and marketing expenses as a percentage of total revenues increased to 7.8% from 7.5%. General and administrative expenses increased by 6.9% to $77.5 million. Non-GAAP G&A expenses also increased by 33.6% to $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%. Technology and content expenses increased by 25.5% to $62.5 million. Non-GAAP Technology and content expenses increased by 33.2% to $58.2 million as well. The increase was primarily driven by elevated personnel expenses.

因此，非GAAP銷售和行銷費用佔總收入的百分比從7.5%上升至7.8%。一般及行政費用增加6.9%，至7,750萬美元。非GAAP一般及行政費用支出也成長了 33.6%，達到 7,510 萬美元，主要原因是人員成本增加。非GAAP一般及行政費用佔總收入的比例維持穩定，為1.5%。科技和內容支出成長了 25.5%，達到 6,250 萬美元。非GAAP技術和內容支出也成長了33.2%，達到5,820萬美元。成長的主要原因是人員開支增加。

Non-GAAP technology and content expenses as a percentage of total revenues remained stable at 1.2%. As a result, our non-GAAP operating income was over $120 million in the second quarter of 2025 compared to non-GAAP operating income of $94.1 million in the second quarter of 2024.

非GAAP技術和內容支出佔總收入的比例維持穩定在1.2%。因此，2025 年第二季的非 GAAP 營業收入超過 1.2 億美元，而 2024 年第二季的非 GAAP 營業收入為 9,410 萬美元。

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. During the second quarter of 2025, we repurchased a total of approximately 1.6 million ADSs for approximately USD4 million.

本季非GAAP營業利潤率為2.4%，而2024年第二季為2.5%，小幅下降6個基點。與上一季相比，利潤率穩定在2.4%。2025 年第二季度，我們以約 400 萬美元的價格回購了約 160 萬份 ADS。

As of June 30, 2015, we had repurchased a total of approximately 12.3 million ADS for approximately USD31.1 million in the previous USD50 million share repurchase program. On June 30, we announced that the Board of Directors authorized a new share repurchase program and which the company may repurchase up to USD50 million of its shares over 12 months starting from June 30, 2025.

截至 2015 年 6 月 30 日，我們在先前的 5,000 萬美元股票回購計畫中，已回購了約 1,230 萬股 A​​DS，總額約 3,110 萬美元。6 月 30 日，我們宣布董事會批准了一項新的股票回購計劃，公司可從 2025 年 6 月 30 日起的 12 個月內回購最多 5,000 萬美元的股票。

The share repurchase program will be implemented in conjunction with the three-year shareholder return than previously shared by carrier. As of 2030, 2025, cash and cash equivalents, restricted cash, short-term investments and funds receivable from third-party payment service providers totaled RMB2.35 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.

股票回購計畫將與先前由該航空公司公佈的三年股東回報計畫同時實施。截至2030年、2025年，現金及現金等價物、受限現金、短期投資及應收第三方支付服務提供者款項總計人民幣23.5億元。我們的財務儲備足以支持對業務發展和股東回報的再投資。

Now turning to the business outlook. For the third quarter of 2025, we anticipate total revenues to be between RMB5,050 million and RMB5,150 billion, representing a year-over-year increase of 24.7% to 27.1%. Please note that this forecast only reflects our current and presume 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.

現在來談談業務前景。我們預計 2025 年第三季總營收將在 50.5 億元至 51.5 億元之間，年增 24.7% 至 27.1%。請注意，此預測僅反映我們目前對市場和營運狀況的預期，這些預期可能會發生變化。我們的發言稿到此結束。操作員，我們現在可以開始接受提問了。

(Operator Instructions) (technical difficulty)

（操作說明）（技術難題）

Probably due to technical issues, we are not able to hear the operator line. Hi, operator, we're not able to hear you clearly.

可能是由於技術問題，我們聽不到接線員的聲音。您好，接線員，我們聽不清楚您的聲音。

Apologies, this is the operator. Can you hear me?

抱歉，我是接線生。你聽得到我嗎？

Yes, please proceed.

好的，請繼續。

(Operator Instructions) (technical difficulty)

（操作說明）（技術難題）

Yeah. Hello. This is Joyce Ju from Bank of America. (spoken in foreign language) Starting to share talent making joint another seeing refining given such strong growth momentum in the first half, 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 home appliances national subsidiary that was implemented in August last year. Additionally, without the company actually having an updated version of the year revenue and profit targets.

是的。你好。這位是美國銀行的Joyce Ju。（外語）鑑於上半年如此強勁的成長勢頭，公司開始共享人才，共同發展，並進行改進。對於下半年的成長預期，由於去年8月實施了家電全國子公司計劃，第三季基數較高，你們採取了哪些措施來應對這一問題？此外，該公司實際上並沒有更新年度營收和利潤目標。

Okay. So from a longer-term perspective, we believe the circular economy model centered on trading and secondhand 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 seance of grain secondhand consumption.

好的。因此，從長遠來看，我們認為以交易和二手消費為中心的循環經濟模式具有持久的潛力，其在新產品消費中的份額正在逐步上升——這源於年輕消費者對質量與價格比率的日益重視以及對糧食二手消費的日益增長的需求。

Doing industry development through an evolutional review. This will be a long-term process requiring progressive brands and service recognition building, normalizing tradings as the before purchasing methods for new products. like other sectors, it necessitates user education Manset ordination.

透過演進式評估進行產業發展。這將是一個長期的過程，需要逐步建立品牌和服務認知度，並將交易標準化為購買新產品前的必要步驟。與其他行業一樣，它也需要用戶教育和標準化管理。

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 and two doors capabilities allowing safe, convenient and competitively price resetting in services more accessible.

在現階段以及未來兩年內，我們將重點放在兩個核心策略重點。首先，我們正在最大限度地發揮我們的回收和履行能力，包括兩個門，從而實現安全、便捷且價格具有競爭力的重置服務，使服務更容易獲得。

Second, we are positioning AHS recycled as China's leading recycling brand, while building strong brand equity ensuring AHS recycle can effectively serve users secondhand resecting and purchasing needs for the next decade and even next generation.

其次，我們將 AHS 回收定位為中國領先的回收品牌，同時建立強大的品牌資產，確保 AHS 回收能夠有效滿足用戶未來十年甚至下一代的二手回收和購買需求。

In September this year, new device launches from leading brands will generate significant upgrade opportunities. We expect to capitalize on this cycle to serve Chinese consumers reflecting and trading demand.

今年9月，各大品牌推出的新設備將帶來大量的升級換代機會。我們期望利用這一週期來滿足中國消費者反映和交易的需求。

We are confident in realizing our revenue growth targets for the second half of this year. 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 margins starting next year to create longer-term revenue. Operator, please open the line to the second question.

我們有信心實現今年下半年的營收成長目標。關於獲利預期，我們將繼續增加對品牌和能力建設的投資，以支持健康的獲利前景。我們預計規模經濟將從明年開始逐步推動營業利潤率的提高，從而創造更長期的收入。接線員，請接通第二個問題。

Michael Kim, Zacks Small-Cap Research.

Michael Kim，Zacks Small-Cap Research。

Great, good morning and good evening everyone. Just from a supply standpoint, any notable trends in trading activity via JD.com or your off-line stores in terms of volumes or the underlying mix of products? And then related to that, any updated thoughts on how the subsidies have obviously impacted volumes more recently and sort of what inning do you think we might be in as it relates to subsidy-driven growth.

大家早安/晚上好。僅從供應角度來看，透過京東商城或線下門市進行的交易活動，在交易量或產品組合方面，是否有任何顯著趨勢？另外，關於補貼最近對銷售的影響，您有什麼最新的看法嗎？您認為在補貼驅動成長方面，我們目前可能處於哪個階段？

(interpreted) Our results from -- of the second quarter demonstrated that smartphones remain the strongest C2B restructuring category benefiting from rising user acceptance of trade-ins, the trading program we launched by JD.com and AHS to recycle sustained robust growth. Enhanced in-store and tutor fulfillment capabilities enabled offline fulfillment adoption across Tier 1 to Tier 4 cities, elevating user experience.

（解讀）我們第二季的業績表明，智慧型手機仍然是 C2B 重組最強勁的類別，受益於用戶對以舊換新（京東和 AHS 推出的以舊換新計劃）的接受度不斷提高，該計劃旨在實現持續強勁的增長。增強的店內和導師履行能力使得一線到四線城市能夠採用線下履行方式，從而提升了用戶體驗。

Regarding national subsidies, we closely monitor policy development. Recent government directive signal a strong commitment to stimulating consumption through substantial subsidy allocations. During implementation, we optimized fulfillment to capture subsidy-driven replacement demand delivering impressive double-digit growth in C2B restructuring results. The respective results were particularly strong in JD's trading scenarios. Mostly, our apple-to-apple training model offers brand for funded incentives for devices that were not eligible for the national subsidy.

關於國家補貼政策，我們會密切關注政策發展。近期政府指令表明，政府決心透過大量補貼來刺激消費。在實施過程中，我們優化了履行流程，以滿足補貼驅動的替換需求，從而在 C2B 重組結果方面實現了令人矚目的兩位數成長。在京東的交易場景中，各項結果都表現得特別強勁。大多數情況下，我們的同類產品培訓模式為那些不符合國家補貼條件的設備提供品牌激勵和資金支援。

Other brand partners, we collaborate with have implemented similar promotional strategies. Brand owners and e-commerce platforms have a stronger motivation to invest in trading subsidies. Moving forward, trading and secondhand consumption will gain further traction as patron behaviors, we will expand receptin and trading scenarios, strengthen store and store-to-door fulfillment MP5recycled brand influence and deliver superior value and user experiences. Operator, please take the next question, please.

我們合作的其他品牌夥伴也實施了類似的促銷策略。品牌所有者和電子商務平台更有動力投資於貿易補貼。展望未來，隨著顧客行為的變化，交易和二手消費將進一步發展，我們將擴大接收和交易場景，加強門市和門市到家的履行，提升MP5回收品牌的影響力，並提供卓越的價值和用戶體驗。接線員，請接聽下一個問題。

Congratulations for the strong results. I have two questions. The first one, could you please share the adjustments you made to the apples official business and overseas business -- and what impact did we have on your financial performance? The second question is, could you share some progress regarding new corporation channels with brand manufacturers in the recycling sector?

恭喜你們取得優異成績。我有兩個問題。第一個問題，能否請您分享您對蘋果官方業務和海外業務所做的調整—以及這些調整對您的財務表現產生了什麼影響？第二個問題是，您能否分享一下在與回收業的品牌製造商建立新的合作管道方面取得的一些進展？

(interpreted) Since March of last year, we have successfully absorbed the impact from the high revenue base established in the first quarter of 20.4%, which we previously discussed. We anticipate this business segment will contribute solid product revenue for the full year while generating positive operating profit for us.

（譯文）自去年3月以來，我們已經成功消化了第一季20.4%的高收入基數帶來的影響，我們之前已經討論過這個問題。我們預期該業務部門將在全年貢獻穩定的產品收入，同時為我們帶來正的營業利潤。

Beyond Apple, we partnered with high-quality domestic brands, capturing significant recycling and trading shares on platforms like Balmain mall. We have established a wide area of mature C2B recycling scenarios, including as stores, JD.com, Apple official website and tractor force and Alipay.

除了蘋果之外，我們還與國內優質品牌合作，在 Balmain 購物中心等平台上獲得了大量的回收和交易份額。我們已經建立了廣泛的成熟 C2B 回收場景，包括實體店、京東、蘋果官網、拖拉機和支付寶。

This year, we tapped into honor DJI and JD's official retail scenarios and build new partnerships. We embedded secondhand supply chain into new scenarios. 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.

今年，我們充分利用了 DJI 和京東的官方零售場景，建立了新的合作關係。我們將二手供應鏈融入新的場景中。高品質的回收供應來源仍然是我們的核心策略重點，我們將積極尋找更好的供應方案，並利用高效的供應鏈能力來提升用戶的服務體驗和價格透明度。

In addition, regarding the international business, we are making active operation explorations. So we look forward to provide more color on our progress next quarter.

此外，在國際業務方面，我們正在積極進行業務探索。因此，我們期待在下個季度為大家帶來更多關於我們進展的資訊。

Thank you. Thank you all again for joining us. The reply of today's call will be available on our website shortly followed by a cracked transcript already. If you have any additional questions, please feel free to email us ir@atrenew.com. Have a nice day.

謝謝。再次感謝各位的參與。今天通話的答覆將很快在我們的網站上公佈，隨後還會發布一份初步的通話記錄。如果您還有其他疑問，請隨時發送電子郵件至ir@atrenew.com。祝您愉快！

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.

本記錄中標有（已翻譯）的部分是由現場通話中的翻譯人員翻譯的。本次活動的翻譯人員由活動贊助公司提供。