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RERE.US Corporate Blog – November 2022
Below is a summary of the recent business development of the Company and the industry headlines in November 2022. Regarding the operational metrics, please refer to the Company’s quarterly earnings release and its filings with the U.S. SEC.
Operational update
AHS Recycle added a net number of 9 jointly operated standard stores and 23 cooperative stores. These additions increase the density of the recycling and fulfillment network while providing closer access to customers for pre-owned device recycling and transactions across local markets.
During the first 28 hours since the Singles' Day grand promotion kicked off at 8 pm on October 31st, the number of JD customers who traded in their used devices when shopping for new increased by over 310% year-on-year. ATRenew has been the exclusive provider of electronics trade-in services on Of note, this was the first grand promotion where ATRenew further synergized with by collaborating with its home appliances business unit while promoting the circular economy. Consumers could trade in up to six used electronic devices when shopping for new smartphones, laptops and white goods. The cross-category trade-in offering has not only realized a discounted total order value for consumers but also an improved shopping experience. Home appliance cross-category trade-in orders accounted for 20% of all the paid trade-in orders during the grand promotion.
Key highlights
ATRenew released its financial report for the third quarter of 2022 with recurring profit while reiterating its four core strategic focuses
On November 22, ATRenew Inc. reported its latest quarterly financial results report. Total net revenues increased by 29.2% year-on-year to RMB2.54 billion, overcoming the downward pressure from the macroeconomy and national consumption. The Company also reported an operating profit of RMB10.8 million under the non-GAAP measures, rapidly recovering its profit trajectory from the disruptive Covid restrictions in the second quarter. ATRenew also reported an inflow of RMB101 million from operating activities and a consolidated cash reserve of RMB2.67 billion, safeguarding its sustainable development. Management reiterated that ATRenew kept its core strategic focuses clear and consistent. ATRenew will continue to 1) promote its city-level service integration model, 2) expand the service coverage and fulfillment capacity of the multi-category recycling offering, 3) convert more of its 1P product supplies to retail distribution by leveraging its value-added capabilities including refurbishment, and 4) further increase the operating efficiency by continuing to deploy automation technologies.
Kerry Chen, founder and CEO of ATRenew, was nominated for “2020-2021 Green China Person of the Year”
In November, the Annual Meeting of the China Ecological Civilization Forum took place. During the meeting, the Ministry of Ecology and Environment nominated and praised 40 advanced collectives, 60 outstanding individuals and 10 award-winning individuals who were recognized as “2020-2021 Green China Person of the Year”. Kerry Xuefeng Chen, the founder and CEO of ATRenew Inc., was nominated for “2020-2021 Green China Person of the Year”, a recognition of his contribution to building the industry-leading consumer electronics recycling and distribution platform as well as the green city industry chain in China. ATRenew is committed to acting up to corporate social responsibilities in its business operations.
ATRenew was named among 36Kr’s WISE 2022 King of the New Economy Annual Enterprises
36Kr launched the “WISE 2022 King of the New Economy Annual Enterprises” series of surveys while focusing on industries of cutting-edge technologies, consumption and lifestyle, and vehicle and transportation, among others. A professional judging panel reviewed thousands of corporate submissions before announcing the finalists. As an industry-leading representative of the circular economy business and green lifestyle, ATRenew was selected as one of the most influential companies in the consumption and lifestyle vertical.
Industry news
More Japanese shoppers seek secondhand iPhones due to multiple factors including the tumbling yen
According to a Reuters report (reprinted by Zhengguan News in Chinese), as the Japanese currency fell to a 32-year low against the dollar, some Japanese consumers chose to buy secondhand iPhones instead of the latest or new gadgets. This has led to an increase in pre-owned iPhone transactions. Japanese consumers have become more serious about buying secondhand goods, thanks in part to the rise of a number of online auction sites.