#China #Shanghai #financial results #Consumer Electronics #ATRenew

ATRenew Inc. Reports Strong Growth for Q2 2025

ATRenew Inc. (NYSE: RERE), a notable player in the pre-owned consumer electronics sector in China, has recently published its unaudited financial results for the second quarter of 2025, showcasing robust growth and a positive outlook. The company has achieved substantial operational milestones that signal its increasing market presence and effective business strategy amidst rising consumer demand for recycled electronics.

Financial Highlights

In the second quarter of 2025, ATRenew reported total net revenues of RMB 4,991.5 million (approximately US$696.8 million), which marks a remarkable 32.2% increase compared to RMB 3,776.7 million in the same period of 2024. This growth is driven largely by the increasing acceptance of pre-owned electronics among consumers, coupled with national subsidies in China that promote electronics trade-ins.

In terms of profitability, ATRenew recorded an operational income of RMB 91.1 million (approximately US$12.7 million), a striking contrast to the loss of RMB 5.6 million during the same quarter last year. Adjusted operational income also saw an uptick to RMB 121.3 million (US$16.9 million) from RMB 94.1 million year-over-year. Furthermore, the total number of consumer products transacted rose to 10.3 million, an increase from 8.4 million in 2024, emphasizing the company's expanding customer base.

CEO Insights

Mr. Kerry Xuefeng Chen, Founder and CEO of ATRenew, expressed his satisfaction with the company's operational performance, noting that the figures surpassed expectations. Chen remarked, "This year, we have continuously met the growing demand for recycling and upgrades driven by our government's initiatives, while also enhancing our fulfillment capabilities and the brand equity of AHS Recycle. We aim to set industry benchmarks through our innovative practices in a circular economy."

Financial Management and Expense Control

Chief Financial Officer Mr. Rex Chen highlighted the significant adjusted operating profit of RMB 121.3 million, emphasizing effective expense management as a contributing factor. He added that the company aims to tap into diverse front-end supply sourcing scenarios that guarantee higher quality and convenience in recycling, while also planning to explore premium retail channels to fortify long-term value creation for stakeholders.

Operating Costs

The operating costs for ATRenew increased significantly, totaling RMB 4,918.1 million (US$686.5 million) compared to RMB 3,795.3 million during the same quarter in the previous year, reflecting a 29.6% rise. Key factors in this increase included a surge in merchandise costs driven by elevated product sales and fulfillment along with expanded logistics operations across its store network. Notably, personnel costs attributed to staff augmentations for enhanced service delivery also contributed to increased expenses.

Looking Ahead

For Q3 2025, ATRenew anticipates its revenue to range between RMB 5,050.0 million and RMB 5,150.0 million, reflecting an expected annual growth rate of 24.7% to 27.1%. While this forecast is based on current market conditions, it demonstrates the company's optimism regarding its operational growth and market positioning.

Recent Initiatives and Future Plans

In the latest developments, ATRenew successfully repurchased roughly 1.6 million ADSs for about US$4.0 million under its ongoing share repurchase program, emphasizing its commitment to enhancing shareholder value. Additionally, the company has authorized a new buyback plan allowing for repurchases of up to US$50 million worth of shares over the next twelve months, highlighting a strong focus on shareholder returns.

With a network of 2,092 AHS stores in 291 cities across China, ATRenew continues to lay the groundwork for growth, alongside its dedication towards sustainability as evidenced by their recently released Environmental, Social, and Governance (ESG) report.

In terms of shareholder returns, the board has approved a policy allocating a minimum of 60% of adjusted net income for shareholder returns yearly, whether through dividends or repurchases. ATRenew's strong commitment to responsible growth and sustainable practices sets the stage for its future in the rapidly evolving consumer electronics landscape.

Conclusion

ATRenew’s second quarter results reinforce its mission of giving a second life to idle goods while maintaining a robust growth trajectory. The emphasis on operational excellence, market adaptability, and corporate responsibility positions ATRenew favorably within the electronics recycling sector, marking a significant step towards a sustainable future for the company and its stakeholders.