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RERE.US Corporate Blog – June 2022
Below is a summary of the recent business development of the Company and the industry headlines in May 2022. Regarding the operational metrics, please refer to the Company’s quarterly earnings release and its filings with the U.S. SEC.
Operational update
There was a net increase of 47 AHS stores in June, all were jointly operated stores, in either standard format or store-in-store format. These new consumer recycling touchpoints were mainly located in Hefei, Wuhan and Hangzhou in eastern China and Suzhou, Xi’an and Lianyungang in China’s central region. In terms of city-level operation station, some self-operated ones were turned into franchises, the front-end business group managed both. Besides, the middle-office team also selectively cultivates roughly a dozen self-operated stations. Overall, the Company focuses on penetrating lower-tier cities in southern, central and northern China. The combination of store and city station networks fortifies the core toC and toB capabilities across local markets, which drives the formation of ATRenew’s city clusters.
PJT Marketplace opened up its retail section to POP merchant users of Paipai Marketplace in June. When the POP merchants place orders, the listings will be transferred to a cloud platform of Paipai before shipping, providing a convenient procurement experience and operational support for retailers. At present, the service has run through testing and will benefit both merchant users and consumers.
Paipai Marketplace realized a second peak during the “618 Grand Promotion”. Between 8 pm, June 17 to 12am, June 18, the recycling and trade-in orders placed through surged by 340% and 246% year-on-year, respectively. Total GMV for Paipai Marketplace went up by 152%, while the growth rates of GMV for smartphones, laptops and tablets, and luxury goods recorded 139%, 155% and 440% year-on-year, respectively. ATRenew is committed to promoting economic electronics shopping options while promoting a green lifestyle and acquiring greater consumer mindshare.
On June 21, ATRenew announced the launch of its data wiping corporate solution leveraging the proprietarily developed “iCleanMaster” tool (“爱清除”), which supports the deep removal of single and batch data by upgrading the privacy data removal algorithm for enterprise data security needs. After 4 years of independent research and development iterations, “iCleanMaster” is now ADISA certified. It supports mobile phones, tablets and laptops, desktop computers, and is compatible with IOS and Android systems, helping businesses and enterprises to ensure data privacy and security.
Key highlights
The 3rd anniversary of the merger between AHS Recycle and Paipai Marketplace
ATRenew celebrated the third anniversary of this merger in early June. The management team reflected on challenges and achievements over the years and shared a visionary outlook for more synergies from the integrated teams, platforms and brands. Teams in Beijing, Shanghai and Shenzhen joined remotely.
Published 2021 ESG report while adopting TCFD framework and disclosing greenhouse gas emission reduction through reusing pre-owned phones
On June 6, ATRenew published its second annual environmental, social, and governance ("ESG") report (the "Report") incorporating the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, a framework set by the G20's Financial Stability Board, for the first time. In the Report, the Company explores the climate-change-related opportunities and challenges it faces in its operation and reuse of pre-owned electronic devices through the perspectives of governance, strategy, risk management, and metrics and targets. In addition, the Company leverages the Circular Footprint Formula for the first time to disclose its contribution of 464,000 metric tons of green-house gas emission reductions through the reuse of pre-owned mobile phones in 2021.
Industry news
Beijing’s draft regulations on electrical and electronic products recycling open for comments, which included user information protection
Beijing Municipal Administration for Market Regulation recently issued the "Regulations on the Recycling of Electrical and Electronic Products (Draft for Comment) (translated)" (appendix #6 of the notice), which detailed the collection, storage, transportation and disposal processes when recycling used electrical and electronic products. These include a requirement to thoroughly erase users' personal information in person when recycling electronic products. The promulgation of this document is of great significance to further improve the recycling rate of pre-owned electronics and better protect the rights and interests of consumers.