All Things Renew
Home / News / Corporate Blog
RERE.US Corporate Blog – May 2023
Below is a summary of the recent business development of the Company and the industry headlines in May 2023. Regarding the operational metrics, please refer to the Company’s quarterly earnings release and its filings with the U.S. SEC.
Operational update
In May, AHS Recycle opened 5 new self-operated standard stores in Shanghai, Shenzhen, Dalian and more. There were also openings of joint-operated standard stores and shop-in-shops in mid- and lower-tier cities in northwest and north China to improve local market participants’ standardized recycling capabilities in addition to increased service accessibility.
On May 29th, PJT Marketplace started to offer Huawei spare stock products, the majority of which were 7-day free return products graded by the OEM itself and a small number of Huawei certified refurbished products. From 15:00 to 18:00 every day, there will be an open auction for wholesale, providing mobile phones, tablets, laptops, watches, earphones, chargers and other gadgets, enriching the bidding options of the users of PJT Marketplace with exclusive sources of goods of extensive categories, good quality and compelling prices.
Key highlights
ATRenew announced 23Q1 earnings
On May 23rd, ATRenew released its first quarter results for 2023. Total revenue increased by 30.2% year-on-year to RMB2.87 billion, beating the high-end of the revenue guidance again. Among them, the self-operated business recovered significantly, and the corresponding product revenue increased by 34.9% year-on-year, benefiting from the rapid recovery of offline scenarios and logistics, and the contribution of RMB145 million from the compliant refurbishment of self-sourced products. The marketplace take rate corresponding to service revenue has increased significantly to 5.46% compared with 4.15% in the same period last year, as the healthy and high-quality development of the platform business was ensured. The adjusted operating profit exceeded RMB44 million, and the adjusted operating margin was 1.5%, both new highs in a single quarter. They benefited from the improved cost efficiency of the upgraded automation technologies and the control of marketing expenses. Kerry Chen, CEO of ATRenew, mentioned during the earnings conference call that in the second half of 2023, there will be a project “providing unique trade-in solutions through in-depth collaboration with a leading international brand,” and this will potentially become a key growth driver to the Company.
Used electronics recycling and trade-in services kicked off to a good start for 618 grand promotions
In the kick-off stage of ATRenew’s June 18th grand promotion between 0:00 on May 31st and 23:59 on June 7th, the overall transaction value of C2B recycling jumped started with an increase of 62% year-on-year, while the transaction value of one-stop trade-in for consumer electronics surged by 103% year-on-year. The number of fulfilled orders across regional markets reported new historical records for three consecutive days. With safe high-price recycling and hassle-free value-for-money trade-in solutions, ATRenew will further promote the new trend of low-carbon shopping for consumers.