ATRenew Inc. Reports Unaudited Second Quarter 2025 Financial Results

, /PRNewswire/ -- ATRenew Inc. ("ATRenew" or the "Company") (NYSE: RERE), a leading technology-driven pre-owned consumer electronics transactions and services platform in China, today announced its unaudited financial results for the three months ended June 30, 2025. Second Quarter 2025 Highlights Total net revenues grew by 32.2% to RMB4,991.5 million (US$696.8 million) from RMB3,776.7 million in the same period of 2024. Income from operations was RMB91.1 million (US$12.7 million), compared to a loss from operations of RMB5.6 million in the same period of 2024. Adjusted income from operations (non-GAAP)1 was RMB121.3 million (US$16.9 million), compared to adjusted income from operation of RMB94.1 million in the same period of 2024. Number of consumer products transacted2 was 10.3 million compared to 8.4 million in the same period of 2024. Mr. Kerry Xuefeng Chen, Founder, Chairman, and Chief Executive Officer of ATRenew, commented, "We are pleased to announce that our operational performance exceeded the high end of our guidance in the second quarter of 2025, with total revenue increasing by 32.2% year-over-year to RMB4,991.5 million. This year, we have consistently met the growing demand for recycling and upgrade fueled by China's national subsidies for consumer electronics trade-ins, while seizing robust growth opportunities by strengthening our fulfillment capabilities, the brand influence of AHS Recycle, and our integrated supply chain. Moving forward, against the backdrop of the circular economy, we remain committed to leveraging our unique business model and scenarios to set innovative benchmarks for the industry." Mr. Rex Chen, Chief Financial Officer of ATRenew, added, "In the second quarter of 2025, we achieved an adjusted operating profit of RMB121.3 million, maintaining a healthy and solid growth trajectory. This was driven by the sequential increase in the proportion of retail product revenue, in addition to effective expense management. We will continue to explore a broader range of diverse front-end supply-sourcing scenarios, providing users with higher-quality and more efficient fulfillment experiences to further uplift recycling penetration. Additionally, we will actively explore premium retail and overseas sales channels to create long-term value for both users and shareholders." 1. For all measures labeled as "non-GAAP" on this page and following pages, please see "Unaudited Reconciliations of GAAP and Non-GAAP Results" for more information. 2. "Number of consumer products transacted" represents the number of consumer products distributed to merchants and consumers through transactions on the Company's PJT Marketplace, Paipai Marketplace and other channels the Company operates in a given period, prior to returns and cancellations, excluding the number of consumer products collected through AHS Recycle; a single consumer product may be counted more than once according to the number of times it is transacted on PJT Marketplace, Paipai Marketplace and other channels the Company operates through the distribution process to end consumer. Second Quarter 2025 Financial Results REVENUE Total net revenues increased by 32.2% to RMB4,991.5 million (US$696.8 million) from RMB3,776.7 million in the same period of 2024. Net product revenues increased by 34.0% to RMB4,558.7 million (US$636.4 million) from RMB3,401.8 million in the same period of 2024. The increase was primarily attributable to an increase in the sales of pre-owned consumer electronics through the Company's online channels. Net service revenues increased by 15.4% to RMB432.8 million (US$60.4 million), compared to RMB374.9 million in the same period of 2024. This increase was primarily due to an increase in the service revenue generated from multi-category recycling business. OPERATING COSTS AND EXPENSES Operating costs and expenses were RMB4,918.1 million (US$686.5 million), compared to RMB3,795.3 million in the same period of 2024, representing an increase of 29.6%. Merchandise costs were RMB3,957.6 million (US$552.5 million), compared to RMB2,990.6 million in the same period of 2024, representing an increase of 32.3%. The increase was primarily due to the growth in product sales. Fulfillment expenses were RMB413.6 million (US$57.7million), compared to RMB328.3 million in the same period of 2024, representing an increase of 26.0%. The increase was primarily due to (i) an increase in personnel costs and logistics expenses as the Company conducted more recycling and transaction activities compared with the same period of 2024, and (ii) an increase in operation related expenses as the Company expanded its store networks in the second quarter of 2025. Selling and marketing expenses were RMB406.9 million (US$56.8 million), compared to RMB354.0 million in the same period of 2024, representing an increase of 14.9%. The increase was primarily due to (i) an increase in advertising expenses and promotional campaign related expenses, and (ii) an increase in commission expenses in relation to channel service fees. The increase was partially offset by a decrease in share-based compensation expenses and amortization of intangible assets resulting from assets and business acquisitions, due to the maturity of some intangible assets in the second quarter of 2024. General and administrative expenses were RMB77.5 million (US$10.8 million), compared to RMB72.5 million in the same period of 2024, representing an increase of 6.9%. The increase was primarily due to an increase in personnel cost and expected credit loss relating to credit risk. The increase was partially offset by a decrease in share-based compensation expenses. Technology and content expenses were RMB62.5 million (US$8.7 million), compared to RMB49.8 million in the same period of 2024, representing an increase of 25.5%. The increase was primarily due to an increase in personnel costs. (LOSS) INCOME FROM OPERATIONS Income from operations was RMB91.1 million (US$12.7 million), compared to a loss from operations of RMB5.6 million in the same period of 2024. Adjusted income from operations (non-GAAP) was RMB121.3 million (US$16.9 million), compared to an adjusted income from operations of RMB94.1 million in the same period of 2024. NET (LOSS) INCOME Net income was RMB72.3 million (US$10.1 million), compared to a net loss of RMB10.7 million in the same period of 2024. Adjusted net income (non-GAAP) was RMB99.9 million (US$13.9 million), compared to an adjusted net income of RMB80.5 million in the same period of 2024. BASIC AND DILUTED NET (LOSS) INCOME PER ORDINARY SHARE Basic and diluted net income per ordinary share were RMB0.45 (US$0.06) and RMB0.44 (US$0.06), compared to basic and diluted net loss of RMB0.06 and RMB0.06 in the same period of 2024. Adjusted basic and diluted net income per ordinary share (non-GAAP) were RMB0.62 (US$0.09) and RMB0.61 (US$0.09), compared to RMB0.48 and RMB0.48 in the same period of 2024. CASH AND CASH EQUIVALENTS, RESTRICTED CASH, SHORT-TERM INVESTMENTS AND FUNDS RECEIVABLE FROM THIRD PARTY PAYMENT SERVICE PROVIDERS Cash and cash equivalents, restricted cash, short-term investments and funds receivable from third party payment service providers were RMB2,349.7 million (US$328.0 million) as of June 30, 2025, as compared to RMB2,919.6 million as of December 31, 2024. Business Outlook For the third quarter of 2025, the Company currently expects its total revenues to be between RMB5,050.0 million and RMB5,150.0 million, representing an increase of 24.7% to 27.1% year-over-year. This forecast only reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change. Recent Development During the second quarter of 2025, ATRenew repurchased a total of approximately 1.6 million ADSs for approximately US$4.0 million under its current share repurchase program which authorizes the Company to repurchase up to US$50 million worth of its shares (including ADSs) through June 27, 2025. As of June 27, 2025, the Company had repurchased a total of approximately 12.3 million ADSs for approximately US$31.1 million under this share repurchase program. On June 30, 2025, ATRenew announced that the board of directors of the Company (the "Board") has authorized a new share repurchase program, under which the Company may repurchase up to US$50 million of its shares (including ADSs) over a 12-month period starting from June 30, 2025. As of June 30, 2025, ATRenew celebrated a physical store network of 2,092 AHS stores in 291 cities in China. On June 30, 2025, ATRenew released 2024 Environmental, Social and Governance (ESG) Report, highlighting its progress and achievements in green recycling, low-carbon transition, corporate governance, and technological innovation, demonstrating the Company's continued commitment to China's "Dual Carbon" goals and alignment with global ESG best practices. ATRenew established ambitious emissions reduction goals – aiming to cut Scope 1 & 2 emission intensity by 35% and Scope 3 emission intensity by 50% by 2030, using 2024 as the baseline. On August 18, 2025, the Board approved a three-year shareholder return plan commencing with the fiscal year 2025. Pursuant to this plan, the Company will allocate no less than 60% of its adjusted net income (non-GAAP) for each fiscal year to shareholder returns, which may be effected through dividend distributions, share repurchases, or a combination of both. The Board will, at its discretion, evaluate and approve the specific form, timing, and amount of such shareholder return measures in any given fiscal year, taking into consideration the Company's operating results, cash flow, capital requirements, and other relevant factors. Conference Call Information The Company's management will hold a conference call on Wednesday, August 20, 2025 at 08:00 A.M. Eastern Time (or 08:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers: International: 1-412-317-6061 United States Toll Free: 1-888-317-6003 Mainland China Toll Free: 4001-206115 Hong Kong Toll Free: 800-963976 Access Code: 6476843 The replay will be accessible through August 27, 2025 by dialing the following numbers: International: 1-412-317-0088 United States Toll Free: 1-877-344-7529 Access Code: 7725572 A live and archived webcast of the conference call will also be available at the Company's investor relations website at ir.atrenew.com. About ATRenew Inc. Headquartered in Shanghai, ATRenew Inc. operates a leading technology-driven pre-owned consumer electronics transactions and services platform in China under the brand ATRenew. Since its inception in 2011, ATRenew has been on a mission to give a second life to all idle goods, addressing the environmental impact of pre-owned consumer electronics by facilitating recycling and trade-in services, and distributing the devices to prolong their lifecycle. ATRenew's open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. Through its end-to-end coverage of the entire value chain and its proprietary inspection, grading, and pricing technologies, ATRenew sets the standard for China's pre-owned consumer electronics industry. ATRenew is a participant in the United Nations Global Compact, and adheres to its principles-based approach to responsible business. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.1636 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2025. Use of Non-GAAP Financial Measures The Company also uses certain non-GAAP financial measures in evaluating its business. For example, the Company uses adjusted income from operations, adjusted net income and adjusted net income per ordinary share as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Adjusted income from operations is (loss) income from operations excluding the share-based compensation expenses and amortization of intangible assets resulting from assets and business acquisitions. Adjusted net income is net (loss) income excluding the share-based compensation expenses and amortization of intangible assets resulting from assets and business acquisitions and tax effects of amortization of intangible assets resulting from assets and business acquisitions. Adjusted net income per ordinary share is adjusted net income attributable to ordinary shareholders divided by weighted average number of shares used in calculating net (loss) income per ordinary share. The Company presents non-GAAP financial measures because they are used by the Company's management to evaluate the Company's financial and operating performance and formulate business plans. The Company believes that adjusted income from operations and adjusted net income help identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that are included in (loss) income from operations and net (loss) income. The Company also believes that the use of non-GAAP financial measures facilitates investors' assessment of the Company's operating performance. The Company believes that adjusted income from operations and adjusted net income provide useful information about the Company's operating results, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company's operations. The share-based compensation expenses, amortization of intangible assets resulting from assets and business acquisitions and tax effects of amortization of intangible assets resulting from assets and business acquisitions have been and may continue to be incurred in the Company's business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, potentially limiting the comparability of their financial results to the Company's. In light of the foregoing limitations, the non-GAAP financial measures for the period should not be considered in isolation from or as an alternative to income from operations, net income, and net income attributable to ordinary shareholders per share, or other financial measures prepared in accordance with U.S. GAAP. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company's performance. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, "Reconciliations of GAAP and Non-GAAP Results." Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. ATRenew may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ATRenew's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ATRenew's strategies; ATRenew's future business development, financial condition and results of operations; ATRenew's ability to maintain its relationship with major strategic investors; its ability to facilitate pre-owned consumer electronics transactions and provide relevant services; its ability to maintain and enhance the recognition and reputation of its brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ATRenew's filings with the SEC. All information provided in this press release is as of the date of this press release, and ATRenew does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Investor Relations Contact In China: ATRenew Inc.Investor RelationsEmail: [email protected] In the United States: ICR LLC.Email: [email protected]Tel: +1-212-537-0461 ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) As of December 31, As of June 30, 2024 2025 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,970,183 1,299,051 181,341 Restricted cash 132,000 104,199 14,546 Short-term investments 583,764 625,705 87,345 Amount due from related parties, net 117,161 406,434 56,736 Inventories 535,070 814,105 113,645 Funds receivable from third party payment service providers 233,133 319,749 44,635 Prepayments and other receivables, net 598,045 734,706 102,561 Total current assets 4,169,356 4,303,949 600,809 Non-current assets: Long-term investments 556,136 526,298 73,468 Property and equipment, net 156,532 197,185 27,526 Intangible assets, net 56,603 12,211 1,705 Other non-current assets 152,094 160,664 22,428 Total non-current assets 921,365 896,358 125,127 TOTAL ASSETS 5,090,721 5,200,307 725,936 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings 225,000 171,000 23,871 Accounts payable 171,356 139,976 19,540 Contract liabilities 98,834 104,222 14,549 Accrued expenses and other current liabilities 522,378 584,931 81,653 Accrued payroll and welfare 179,693 184,837 25,802 Amount due to related parties 109,730 146,858 20,501 Total current liabilities 1,306,991 1,331,824 185,916 Non-current liabilities: Operating lease liabilities, non-current 79,934 73,209 10,220 Deferred tax liabilities 9,244 2,585 361 Total non-current liabilities 89,178 75,794 10,581 TOTAL LIABILITIES 1,396,169 1,407,618 196,497 TOTAL SHAREHOLDERS' EQUITY 3,694,552 3,792,689 529,439 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5,090,721 5,200,307 725,936 ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Amounts in thousands, except share and per share and otherwise noted) Three months ended June 30, Six months ended June 30, 2024 2025 2024 2025 RMB RMB US$ RMB RMB US$ Net revenues Net product revenues 3,401,755 4,558,695 636,369 6,711,574 8,822,374 1,231,556 Net service revenues 374,948 432,770 60,412 716,265 822,536 114,822 Operating (expenses) income (1)(2) Merchandise costs (2,990,642) (3,957,556) (552,454) (5,938,457) (7,573,472) (1,057,216) Fulfillment expenses (328,287) (413,628) (57,740) (638,055) (841,477) (117,466) Selling and marketing expenses (353,977) (406,870) (56,796) (675,314) (825,728) (115,267) General and administrative expenses (72,544) (77,521) (10,822) (146,369) (140,895) (19,668) Technology and content expenses (49,812) (62,467) (8,720) (99,995) (117,471) (16,398) Other operating income, net 12,925 17,646 2,463 21,331 17,890 2,497 (Loss) income from operations (5,634) 91,069 12,712 (49,020) 163,757 22,860 Interest expense (4,739) (1,743) (243) (8,717) (3,628) (506) Interest income 5,332 5,580 779 11,925 13,954 1,948 Other (loss) income, net 85 4,770 666 (41,352) (1,717) (240) (Loss) income before income taxes and share of loss in equity method investments (4,956) 99,676 13,914 (87,164) 172,366 24,062 Income tax benefits (expenses) 8,540 (17,312) (2,417) 18,587 (23,582) (3,292) Share of loss in equity method investments (14,257) (10,028) (1,400) (34,959) (33,648) (4,697) Net (loss) income (10,673) 72,336 10,097 (103,536) 115,136 16,073 Net (loss) income per ordinary share: Basic (0.06) 0.45 0.06 (0.63) 0.72 0.10 Diluted (0.06) 0.44 0.06 (0.63) 0.71 0.10 Weighted average number of shares used in calculating net (loss) income per ordinary share Basic 166,616,018 161,486,547 161,486,547 164,048,134 160,748,983 160,748,983 Diluted 166,616,018 162,572,624 162,572,624 164,048,134 161,890,426 161,890,426 Net (loss) income (10,673) 72,336 10,097 (103,536) 115,136 16,073 Foreign currency translation adjustments (330) (5,742) (802) (90) (6,741) (941) Total comprehensive (loss) income (11,003) 66,594 9,295 (103,626) 108,395 15,132 ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (CONTINUED) (Amounts in thousands) Three months ended June 30, Six months ended June 30, 2024 2025 2024 2025 RMB RMB US$ RMB RMB US$ (1) Includes share-based compensation expenses as follows: Fulfillment expenses (6,590) (3,981) (556) (12,971) (6,338) (885) Selling and marketing expenses (14,166) (1,753) (244) (44,572) (6,190) (864) General and administrative expenses (16,393) (2,375) (332) (32,070) (6,331) (884) Technology and content expenses (5,703) (4,234) (591) (9,954) (6,217) (868) (2) Includes amortization of intangible assets resulting from assets and business acquisitions as follows: Selling and marketing expenses (56,479) (17,913) (2,501) (122,891) (44,392) (6,197) Technology and content expenses (369) — — (851) — — Unaudited Reconciliations of GAAP and Non-GAAP Results (Amounts in thousands, except share and per share and otherwise noted) Three months ended June 30, Six months ended June 30, 2024 2025 2024 2025 RMB RMB US$ RMB RMB US$ (Loss) income from operations (5,634) 91,069 12,712 (49,020) 163,757 22,860 Add: Share-based compensation expenses 42,852 12,343 1,723 99,567 25,076 3,501 Amortization of intangible assets resulting from assets and business acquisitions 56,848 17,913 2,501 123,742 44,392 6,197 Adjusted income from operations (non-GAAP) 94,066 121,325 16,936 174,289 233,225 32,558 Net (loss) income (10,673) 72,336 10,097 (103,536) 115,136 16,073 Add: Share-based compensation expenses 42,852 12,343 1,723 99,567 25,076 3,501 Amortization of intangible assets resulting from assets and business acquisitions 56,848 17,913 2,501 123,742 44,392 6,197 Less: Tax effects of amortization of intangible assets resulting from assets and business acquisitions (8,540) (2,687) (375) (18,587) (6,659) (930) Adjusted net income (non-GAAP) 80,487 99,905 13,946 101,186 177,945 24,841 Adjusted net income per ordinary share (non-GAAP): Basic 0.48 0.62 0.09 0.62 1.11 0.15 Diluted 0.48 0.61 0.09 0.61 1.10 0.15 Weighted average number of shares used in calculating net income per ordinary share Basic 166,616,018 161,486,547 161,486,547 164,048,134 160,748,983 160,748,983 Diluted 169,063,102 162,572,624 162,572,624 164,698,650 161,890,426 161,890,426 SOURCE ATRenew Inc. 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ATRenew Inc. Reports Unaudited Second Quarter 2025 Financial Results

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