#China #Shanghai #ATRenew #NYSE RERE #recycling services

ATRenew Inc. Reports Robust Financial Results for 2024

Introduction
ATRenew Inc. (NYSE: RERE), a prominent player in the technology-driven pre-owned consumer electronics sector in China, has released its unaudited financial results for the fourth quarter and full year of 2024. The company marked substantial growth in revenue and profitability, positioning itself well in a competitive market.

Fourth Quarter Overview

In the fourth quarter of 2024, ATRenew achieved a total net revenue of RMB 4,849.3 million (approximately USD 664.4 million), reflecting a remarkable year-over-year increase of 25.2% compared to the same period in 2023. The income from operations improved significantly, reaching RMB 53.1 million (USD 7.3 million), a stark recovery from a loss of RMB 16.7 million in the prior year. Moreover, the adjusted income from operations (non-GAAP) totaled RMB 131.4 million (USD 18.0 million), up from RMB 81.6 million in Q4 2023.

The number of consumer products transacted also increased significantly, totaling 9.4 million compared to 8.5 million during the same quarter in 2023. This growth demonstrates ATRenew's expanding market presence and efficient operational mechanisms.

Full Year Highlights

For the full year ending December 31, 2024, ATRenew reported total net revenues of RMB 16,328.4 million (USD 2,237.0 million), marking a 25.9% increase from RMB 12,965.8 million in 2023. The company's operational income for the year amounted to RMB 29.0 million (USD 4.0 million), showing a significant turnaround from a loss of RMB 173.3 million in 2023. Adjusted income from operations rose to RMB 409.7 million (USD 56.1 million) from RMB 251.7 million year-over-year.

With a total of 35.3 million consumer products transacted over the entire year, an upward trend from 32.3 million in 2023, ATRenew shows a strong capability to meet consumer demand through effective supply chain management and innovative service offerings.

Operational Efficiency

ATRenew's performance can be attributed to its strategic expansion and enhancement in service capabilities. By broadening their network to 1,861 AHS stores, the company has improved its ability to cater to increasing consumer demand for trade-in and recycling services. This expansion aligns with the growing popularity of trade-ins, showcasing ATRenew's adeptness in capitalizing on recycling opportunities and enhancing sustainability in consumer electronics.

Future Outlook

Looking ahead to 2025, the company is optimistic about the continued growth trajectory of the trade-in market for smartphones and electronics. The firm's commitment to refining service capabilities is expected to enhance the overall customer experience, establishing ATRenew as a key player in the evolving landscape of consumer electronics and circular economy practices.

Management Comments
Kerry Xuefeng Chen, CEO and founder of ATRenew, expressed pride in the company’s robust growth and operational turnaround. He stated, “Our strong fourth-quarter performance exceeded expectations and capped a record year, showcasing our strategic focus on meeting consumer demand in the recycling sector.”

Rex Chen, CFO, also highlighted the continued profitability momentum and attributed the growth to successful retail channel expansions. He emphasized ATRenew's readiness to seize emerging opportunities that lie ahead in the circular economy landscape.

Conclusion

ATRenew's 2024 performance reflects its strong operational management and adaptability to market demands. With plans to further enhance service offerings and maintain sustainable practices, ATRenew is poised to achieve long-term value for its customers and shareholders alike. The company's success echoes its commitment to environmental stewardship and responsible business practices.

For further details, a conference call is scheduled on March 11, 2025, to discuss these results comprehensively with stakeholders. The live webcast will be accessible through ATRenew's investor relations website.

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