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RERE.US Corporate Blog – January 2023
Below is a summary of the recent business development of the Company and the industry headlines in January 2023. 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 unfolded its annual store opening program and kicked off at a disciplined pace ahead of the Lunar Chinese New Year. In January, the net addition of AHS stores reached 12, mainly located in North China and Northwest China.
ATRenew provided uninterrupted services in mainland China during the Chinese New Year holiday from January 21 to January 27, 2023. AHS Recycle and Paipai’s offline stores modified their business hours to reflect shopping malls’ adjusted opening hours, ensuring that users were seamlessly provided with the full range of recycling channels: from in-store to door-to-door, to delivery. Furthermore, users who submitted orders during this period received a 10-day price match pledge. AHS Recycle launched its uninterrupted Chinese New Year service across AHS offline stores in 2021 and expanded this to new categories such as luxury goods, gold, vintage liquor and diamonds in 2023. It was even effortless for users to receive cashback while continuing the tradition of “out with the old and in with the new”. PJT Marketplace’s core auction events continued, and Paipai’s online business offered uninterrupted delivery services throughout the holiday for the fifth successive year. The marketplaces’ pre- and after-sales support was available online, and operation centers and city-level operation stations collected and shipped goods as usual. As a result, small- and medium-sized businesses could generate a steady stream of income, and users of Paipai could get ideal value-for-money products when celebrating the new year.
Key highlights
Kerry presents annual review and strategy outlook at ATRenew’s quarterly all-hands meeting
On January 17, ATRenew held an all-hands meeting to provide a recap on recent developments of each business function and offer rewards to employees of the quarter. During this meeting, Kerry Chen, founder and CEO of ATRenew, shared the corporate strategy outlook for 2023 following a review of the challenges and progress made in 2022. There are three strategic goals to strive for in 2023. 1) Build AHS Recycle into the most popular brand in the pre-owned product recycling industry in China and endow the brand with love and warmth. Explore new revenue and profit growth potential by expanding the Company’s offerings into high-value products besides consumer electronics. 2) Continue to invest in automation technology (RERE InnoTech) to drive the development of ATRenew with high efficiency and quality following the automation upgrade in Dongguan operation center, the regional operation facility located in South China, by the end of 2022. 3) Embrace the established urban recyclable sorting and re-marketing business incubated by ATRenew, namely Aifenlei (“爱回收·爱分类”). As Aifenlei’s business model has been verified, it’s rejoining the ecosystem and organizational structure of ATRenew. It is expected that Aifenlei will improve its unit economies at the city level and will prove its value in the aspects of resource conservation and building an inclusive low-carbon society under its innovative “Internet + Recycling” business model.
ATRenew entitled “Annual Brand Influence Enterprise” by CIIC
China Internet Information Center (CIIC) initiated the selection of “2022 CIIC Technology Enterprise Pioneer List”, and selected 40 influential and innovative forerunners through the evaluation of a number of indicators, including value creation, social performance, environmental performance, governance performance and information disclosure. Among them, ATRenew was recognized as an “Influential Brand of the Year”.
Industry news
The State Council Information Office issues white paper on green development while encouraging the secondhand economy
The State Council Information Office of China released a white paper titled “China's Green Development in the New Era (full text)” on January 19, 2023, introducing the concept of green and low-carbon development while highlighting the country’s practices and remarkable progress. According to the white paper, eco-friendly living becomes the prevailing ethos and China has a growing market of green products. The white paper also notes that “China has supported new business models such as the sharing economy and second-hand transactions. There is a richer variety of green products and a growing number of people who spend on green products.”