Q2 2025 ATRenew Inc Co Ltd Earnings Call
At this time all participants are in a listen only mode. We.
We will be hosting a question and answer session. After management's prepared remarks.
Please note today's event is being recorded.
Oh not to now turn the call over to the first speaker today, Mr. Jeremy G director of corporate development and Investor Relations of the company. Please go ahead Sir.
Thank you.
Everyone and welcome to <unk> second quarter 2025 earnings Conference call.
Speaking first today is Caribbean, our founder Chairman and CEO.
Followed by Rex Chen our CFO.
After that we'll open the call to questions from the analyst.
The second quarter 2025 financial results were released earlier today.
Speaker #4: Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to the ATRenew Inc.'s second quarter 2025 earnings conference call.
Rex Chen: Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to the ATRenew Inc. Q4 2025 earnings conference call. At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks. Please note today's event is being recorded. I will now turn the call over to the first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the company. Please go ahead, sir.
Earnings press release, and he wants to slides accompanying this call are now available at the IR website.
Speaker #4: At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks. Please note, today's event is being recorded.
But if you eat at home.
It also be a transcript of this call for your convenience.
For today's agenda Cary will share his thoughts about quarterly performance and business update.
Speaker #4: I'll now turn the call over to the first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the company. Please go ahead, sir.
Followed by Rex will address the financial highlights.
Both Harry <unk>, who will participate during the Q&A session.
Please note that our Sip.
Speaker #5: Thank you. Hello everyone, and welcome to ATRenew's second quarter 2025 earnings conference call. Speaking for us today is Chen Chen, our founder, chairman, and CEO.
Jeremy Ji: Thank you. Hello, everyone, and welcome to ATRenew Inc.'s Q4 2025 earnings conference call. Speaking for us today is Kerry Chen, our Founder, Chairman, and CEO. He will be followed by Rex Chen, our CFO. After that, we will open the call to questions from the analysts. The Q4 2025 financial results were released earlier today. The earnings press release and investor slides accompanying this call are now available at our IR website, ir.atrenew.com. There will also be a transcript following this call for your convenience. For today's agenda, Kerry Chen will share his thoughts on our quarterly performance and business update, followed by Rex Chen, who will address the financial highlights. Both Kerry Chen and Rex Chen will participate during the Q&A session. Please note that our safe harbor statement, some of the information you will hear during our discussion today, will consist of forward-looking statements.
Safe Harbor statement.
Some of the information you'll hear during our discussion today will consist of forward looking statements and I refer you to our safe Harbor statements in the earnings press release.
Speaker #5: And I hope you follow by Rex Chen, our CFO. After that, we'll open the call to questions from the analysts. The second quarter 2025 financial results were released earlier today.
Any forward looking statements that management makes on this call are based on assumptions as of today and that <unk> does not take any obligations to upgrade our assumptions of these statements.
Speaker #5: The earnings press release and investors' slides accompanying this call are now available at our AI website, ai.atrenew.com. We'll also provide a transcript following this call for your convenience.
Also this call includes discussions of certain non-GAAP financial measures.
Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures.
Speaker #5: For today's agenda, Chen will share his thoughts on our quarterly performance and business updates, followed by Rex, who will address the financial highlights. Both Chen and Rex will participate during the Q&A session.
Finally, please note that unless otherwise stated all figures mentioned during this conference call on the RMB and all comparisons are on a year over year basis.
I'd now like to turn the call over to Kerry for business and strategy update.
Speaker #5: Please note that our safe harbor statement: some of the information you'll hear during our discussion today will consist of forward-looking statements. And I refer you to our safe harbor statements in the earnings press release.
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Jeremy Ji: I refer you to our safe harbor statements in the earnings press release. Any forward-looking statements that the management makes on this call are based on assumptions as of today, and ATRenew Inc. does not take any obligations to upgrade our assumptions on these statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures. Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in RMB, and all comparisons are on a year-over-year basis. I would now like to turn the call over to Kerry Chen for business and strategy updates.
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Speaker #5: Any forward-looking statements that the management makes on this call are based on assumptions as of today, and ATRenew does not take any obligations to update our assumptions on these statements.
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Speaker #5: Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures.
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Speaker #5: Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in R&D, and all comparisons are on a year-over-year basis.
Hello, everyone and thank you for joining <unk> second quarter 2025 earnings Conference call. We are pleased to update you on our above expectation revenue growth and operational dynamics. This quarter address your questions on our progress and share our business plans and come back.
Speaker #5: I'd now like to turn the call over to Chen for business and strategy updates.
Capability building initiatives for the second half of this year.
Speaker #6: 好, 各位投资者和分析师, 大家好。欢迎参加万物新生集团2025年第二季度业绩电话会。非常高兴与各位
Kerry Chen: 各位投资者和分析师, 大家好, 欢迎参加万物新生集团2025年第二季度业绩电话会。非常高兴与各位。
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Speaker #4: Ladies and gentlemen, please remain online while we reconnect the line. Please wait. When confirmation, please go ahead. Please go ahead.
Rex Chen: Ladies and gentlemen, please remain online while we reconnect the line.
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First providing the stable and rapidly growing trajectory off the secondhand industry, we achieved our revenue exceeding the high end of our guidance through continuous innovation and industry leadership in the second quarter. Our total revenue reached $4 99 billion RMB representing year over year growth of 32, 2% within this.
One P product revenue grew by 34% year over year to $4 56 billion RMB well <unk> service revenue increased by 15, 4% year over year to 430 million RMB, which revenue growth rates significantly exceeding the guidance, we set last quarter.
Operator: Thank you.
Rex Chen: Thank you.
GAAP operating profit margin was two 4% meeting our full year target alongside brand investment accelerated store expansion and enhance capability building initiatives.
Operator: Thank you.
Rex Chen: When possible, please go ahead.
Solid results stemmed from Orihon front end development of recycling scenarios and continuous strength in indoor endorsed that fulfillment capabilities through the bathroom class user experience.
Kerry Chen: 我们想他们两个。话对吧, 他就是今天。
Operator: 请您随时给我打电话。
Recycle is building stronger brand recognition and China's top recycling Brad.
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Speaker #5: HCI can hear you now. I can hear the voice from the Shanghai office.
Jeremy Ji: HSC, I can hear you now. I can hear the voice from the Shanghai office.
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A closer look within our <unk> business, our CTV recycling business maintained robust double digit growth in the second quarter benefiting from national subsidies and joined the agency called E. Commerce promotional campaigns alongside extended partnerships with high quality consumer electronics brands to drive they develop recycling and training.
<unk> chain capabilities, Luckily, we observed a distinctive year over year growth performance and J D trading scenarios.
Speaker #4: Ladies and gentlemen, please hold a moment. While we rejoin the line for JC, we have been rejoined by the main speaker line. Please go ahead.
Rex Chen: Ladies and gentlemen, please hold a moment while we rejoin the line for Jeremy Ji. We have been redrawn by the main speaker line. Please go ahead.
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Speaker #6: Okay. sorry for the disconnect. we go back to let's continue.各位投资者和分析师, 大家好。欢迎参加万物新生集团2025年第二季度业绩电话会。我们非常高兴与各位更新二季度超预期达成的收入增长和经营动态。并回应各位对于集团经济发展的关注, 我们还会对下半年的业务布局以及能力建设进行一些分享。
Jeremy Ji: Sorry for the disconnect. While we go back, let's continue.
So in summary.
Kerry Chen: 各位投资者和分析师, 大家好, 欢迎参加ATRnew Inc. 2025年第二季度业绩电话会。我们非常高兴与各位更新二季度超预期达成的收入增长和经营动态, 并回应各位对于集团经济发展的关注。我们还会对下半年的业务布局以及能力建设进行一些分享。
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Speaker #4: Hello, everyone, and thank you for joining ATRenew's second quarter 2025 earnings conference call. We are pleased to update you on our above-expectation revenue growth and operational dynamics this quarter, address your questions on the progress, and share our business plans and capability-building initiatives for the second half of this year.
Rex Chen: Hello everyone, and thank you for joining ATRenew's Q4 2025 earnings conference call. We are pleased to update you on our above-expectation revenue growth and operational dynamics this quarter, address your questions on the progress, and share our business plans and capability-building initiatives for the second half of this year.
The resulting achievement is closely tied to our frontline fulfillment capabilities, we remain committed to our accelerated store expansion strategy by the end of the second quarter, we operated 2000 and Nike to age as the stores nationwide, including 987 self operated stores in tier one tier two cities.
Speaker #6: 首先, 我们在二手行业稳定快速发展的轨道上, 通过持续的创新、领跑行业的发展, 实现了超出指引区间高端的收入。二季度集团总收入达49.9亿元人民币, 同比增长32.2%。其中, EP产品收入同比增长34%, 至45.6亿元, 3P服务收入则同比增长15.4%至4.3亿元。收入增幅增速较大幅度的超出了上一季度, 给出的预期。Non-GAAP的经营利润率2.4%, 在加大品牌投入、加速开店、加强各项能力建设的背景之下, 符合我们今年的经营利润率预期。以上扎实的业绩得益于我们在前端加强建设的低手回收货源场景, 不断夯实的门店加上门履约交付能力。二回收以卓越的用户体验、构建更强的国民第一回收品牌用户心智。
Kerry Chen: 我们在二手行业稳定快速发展的轨道上, 通过持续的创新, 领跑行业的发展, 实现了超出指引区间高端的收入。Q2集团总收入达4.99 billion RMB, 同比增长32.2%。其中, 1P产品收入同比增长34%至4.56 billion RMB, 3P服务收入同比增长15.4%至430 million RMB, 收入增幅增速较大幅度的超出了上一季度给出的预期。Non-GAAP的经营利润率2.4%。在加大品牌投入、加速开店、加强各项能力建设的背景之下, 符合我们今年的经营利润率预期。以上扎实的业绩得益于我们在前端加强建设的一手回收货源场景、不断夯实的门店加上门履约交付能力, 二回收以卓越的用户体验构建更强的国民第一回收品牌用户心智。
And one other 105 towards the operating stores in lower tier cities, enabling users to access nearby in store services and in a in a convenient manner.
Additionally, our self operated two doors. There is same expand it to 1160 personnel at the end of the second quarter.
Waiting from our intelligent audio dispatch and fulfillment capabilities, we have broadened our coverage area and strengthen our capacity to manage volume surges during major promotional periods, while enhancing fulfillment time limit coffee when say, our channel expansion and fulfillment capability upgrades collectively.
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Speaker #4: First, riding the stable and rapidly growing trajectory of the second-hand industry, we achieved revenue exceeding the high end of our guidance through continuous innovation and industry leadership.
Rex Chen: First, riding the stable and rapidly growing trajectory of the second-hand industry, we achieved revenue exceeding the high end of our guidance through continuous innovation and industry leadership. In the second quarter, our total revenue reached 4.99 billion RMB, representing year-over-year growth of 32.2%. Within this, 1P product revenue grew by 34% year-over-year to 4.56 billion RMB, while 3P service revenue increased by 15.4% year-over-year to 430 million RMB, with revenue growth rates significantly exceeding the guidance we set last quarter. Non-GAAP operating profit margin was 2.4%, meeting our full-year target alongside brand investment, accelerated store expansion, and enhanced capability-building initiatives. These solid results stem from our enhanced front-end development of recycling scenarios and continuously strengthened in-store and door-to-door fulfillment capabilities. Through the best-in-class user experience, AHS Recycle is building stronger brand recognition as China's top recycling brand.
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Speaker #4: In the second quarter, our total revenue reached ¥4.99 billion, representing year-over-year growth of 32.2%. Within this, 1P product revenue grew by 34.4% year-over-year to ¥4.56 billion.
Notably our in store until the our teams collectively handle nearly 90% of orders in the first and second tier cities and about 80% in the third and fourth tier cities, we continuously increase the proportion of others with face to face so raises other confirmation and payment by expanding our self opera.
Speaker #4: While 3P service revenue increased by 15.4% year-over-year to RMB 403 million, revenue growth rates significantly exceeded the guidance we set last quarter. The non-GAAP operating profit margin was 2.4%, meeting our full-year target alongside brand investment.
<unk> fulfillment network, therefore, enhancing user experience in lower tier cities temporary constraints in store density and two doors Scuffing limited our face to face fulfillment order ratio below 50%, leaving significant room for store expansion to door capability building.
Speaker #4: Accelerated store expansion and enhanced capability-building initiatives. This solid results stem from our enhanced front-end development of recycling scenarios and continuously strengthened in-store and doorstep fulfillment capabilities.
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Speaker #4: Through the best-in-class user experience, AHS Recycle is building stronger brand recognition as China's top recycling brand.
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Speaker #6: 具体来看, EP业务中得益于国补与618电商大促, 以及我们和更多优质的消费电子品牌官方渠道共建的回收和以旧换新的供应链能力。C2B回收业绩在二季度保持了快速的双位数增长, 尤其是在京东以旧换新场景看到了颇为亮点的同比增。同比增长。
Kerry Chen: remarkable year-over-year growth.
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Speaker #4: Taking a closer look, within our 1P business, our C2B recycling business maintained robust double-digit growth in the second quarter, benefiting from national subsidies and the 18th e-commerce promotional campaigns, alongside expanded partnerships with high-quality consumer electronics brands to jointly develop recycling and trading supply chain capabilities.
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Rex Chen: Taking a closer look within our 1P business, our C2B recycling business maintained robust double-digit growth in the second quarter, benefiting from national subsidies and June 18 e-commerce promotional campaigns, alongside expanded partnerships with high-quality consumer electronics brands to jointly develop recycling and trading supply chain capabilities. Notably, we observed a distinctive year-over-year growth performance in JD.com's trading scenarios.
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In terms of our supply chain capabilities, we continue leveraging mature end to end capabilities, while expanding combined refurbishment capacity in the second quarter refurbished products contributed 13, 5% of one P revenue locally or on demand refurbishment motto added laptops and smartwatch as two weeks.
Speaker #4: Notably, we observed a distinctive year-over-year growth performance in JD's trading scenarios.
Speaker #6: 回收业绩的达成, 同样与我们大前端的交付能力息息相关。我们坚定落实加速开店的目标, 截止二季度末, 全国二回收门店总数达2092家, 包括包含了在一二线城市的987家自营门店和在中低线城市开设的1105家加盟门店。方便用户就近到店交付。此外, 自营上门人数截止二季度末达到1160人。我们通过智能派单履约能力, 拓展了更广泛的履约范围, 运力能够更灵活地适应电商大促期间激增的订单量。同时也提升了履约的时效性。作为结果, 我们的渠道拓展和交付能力建设, 为用户创造了更优质的回收和以旧换新体验。
Kerry Chen: created a better recycling and trade-in experience for users.
Scope generating over 100 million RMB JV in the quarter compliance with Furbishing operations expand retail ready products for all of our channels such as the high pass election, H as official website at store and so in platforms. Consequently, one pizza. So your retail revenue surged 63 seven.
And year over year in the second quarter accounting for 34, 4% of product revenue. This continuous improvement reflects our value creation for more retail users.
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Our therapy service revenue also sustained growth in the second quarter, increasing by 15, 4% year over year with an overall take rate of 5445, 3%.
Speaker #4: The recycling achievements are closely tied to our front-end fulfillment capabilities. We remain committed to our accelerated store expansion strategy by the end of the second quarter.
Rex Chen: The recycling achievement is closely tied to our front-end fulfillment capabilities. We remain committed to our accelerated store expansion strategy. By the end of the second quarter, we operated 2,092 AHS Recycle stores nationwide, including 987 self-operated stores in Tier 1 and Tier 2 cities, and 1,125 operated stores in lower-tier cities, enabling users to access nearby in-store services in a convenient manner. Additionally, our self-operated door-to-door fulfillment service team expanded to 1,160 personnel at the end of the second quarter. Benefiting from our intelligent order dispatch and fulfillment capabilities, we have widened our coverage area and strengthened our capacity to manage volume surges during major promotional periods while enhancing fulfillment time limits. Consequently, our channel expansion and fulfillment capability upgrades collectively create superior recycling and trading experiences for users.
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Speaker #4: We operated 2092 AHS stores nationwide, including 987 self-operated stores in Tier 1 and Tier 2 cities, and 1,105 jointly operated stores in lower-tier cities.
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Speaker #4: Enabling users to access nearby in-store services and in a convenient manner, additionally, our self-operated two-door service team expanded to 1,160 personnel at the end of the second quarter.
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Speaker #4: Benefiting from our intelligent order dispatch and fulfillment capabilities, we have broadened our coverage area and strengthened our capacity to manage volume surges during major promotional periods while enhancing fulfillment time limits.
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Speaker #4: Consequently, our channel expansion and fulfillment capability upgrades collectively create superior recycling and trading experiences for users.
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Speaker #6: 值得一提的是, 我们的门店和上门交付团队共同承接了一二线城市近90%的订单量。在三线城市承接了近80%的订单量。我们持续通过自主可控的交付网络建设, 提升面对面交付当场确认放款的订单占比, 提升用户服务体验。在更加下沉的线域市场中, 由于门店密度和上门人员的暂时性的限制, 我们面对面的交付订单比重低于50%。未来仍然有较大的开店和建设上门交付能力的空间。
Kerry Chen: of door-to-door fulfillment capabilities in the future.
Specifically warehousing inspections, you're out in the first year on year and crazy the warehousing inflection penetration rate for B to B platform operations from 62% in the first quarter of 'twenty 'twenty four to 17, 3% in the second quarter of 295.
We also kept her new user traffic and growth opportunities through the innovative specialty buyer model, what's the cumulative registered users exceeding one point 16 month median in the second quarter I did have achieved robust double digit growth in overall performance.
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Speaker #4: Notably, our in-store and two-door teams collectively handle nearly 90% of orders in the first and second tier cities, and about 80% in the third and fourth tier cities.
Rex Chen: Notably, our in-store and door-to-door teams collectively handle nearly 90% of orders in the first and second-tier cities, and about 80% in the third and fourth-tier cities. We continuously increase the proportion of orders with face-to-face services, order confirmation, and payment by expanding our self-operated fulfillment network, therefore enhancing user experience. In lower-tier cities, temporary constraints in store density and door-to-door staffing limited our face-to-face fulfillment order ratio to below 50%, leaving significant room for store expansion and door-to-door capability building.
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Speaker #4: We continuously increase the proportion of orders with face-to-face services. Order confirmation and payment are enhanced by expanding our self-operated fulfillment network, therefore improving user experience. In lower-tier cities, temporary constraints in store density and two-door staffing limited our face-to-face fulfillment order ratio to below 50%.
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Speaker #4: Leaving significant room for store expansion and two-door capability building.
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Speaker #6: ???????????????????????????????????????????? EP ???????????? 13.5%???????????????????????????? GMV ?? 1 ??????????????????????????????????????????????????????????????????????? 63.7% ????????EP2C ??????????? 34.4%????????????????????
Kerry Chen: 我们持续发挥成熟的端到端能力, 进一步发挥合规翻新整备能力。Q2合规翻新在1P中的收入占比进一步提升到13.5%。其中, 以销定修在Q2新增笔记本和智能手表品类, 单季度的GMV突破1亿元。合规翻新为我们的Paipai Selection, AHS Recycle官网和门店以及抖音新渠道、抖音新媒体等渠道提供了更多可以零售的商品。作为结果, Q2自营严选收入取得了63.7%的快速同比增长, EP2C的收入占比进一步提升至34.4%, 为终端创造, 为终端用户创造了更多价值。
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Second our b to C marketplace, and developing and pipe high three P business as we previously shared we have implemented a consignment model designed to provide enhanced operational convenience for small and medium sized secondhand version.
And then its model the pie by team handles product and store management traffic operations and after sales services on behalf of merchant users. This consignment approach ensures consistent farm pen product listing standardized service quality managed product quality and reliable after sales support without the incomprehensive improves.
And to both self performance and user experience.
Then he is talking inventory volumes of five high consignment service have now increased by 100 per cent compared to the first quarter of this year have highest qualify them and G&A in the second quarter or a third 128% year over year driving a modest recovery in the platform take rate and delivering coffee fast effective.
Speaker #4: In terms of our supply chain capabilities, we continue leveraging mature end-to-end capabilities while expanding compliance refurbishment capacity. In the second quarter, refurbished products contributed 13.5% of 1P revenue.
Rex Chen: In terms of our supply chain capabilities, we continue leveraging mature end-to-end capabilities while expanding compliance refurbishment capacity. In the second quarter, refurbished products contributed 13.5% of 1P product revenue. Notably, our on-demand refurbishment model added laptops and smartwatches to its scope, generating over 100 million RMB GMV in the quarter. Compliance refurbishment operations expand retail-ready products for our channels, such as Paipai Selection, AHS Official Website, AHS Store, and Douyin platforms. Consequently, 1P2C retail revenue surged 63.7% year-over-year in the second quarter, accounting for 34.4% of product revenue. This continuous improvement reflects our value creation for more retail users.
Speaker #4: Notably, our on-demand refurbishment model added laptops and smartwatches to its scope, generating over $100 million RMB in GMV for the quarter. Compliance refurbishment operations expand retail-ready products for our channels, such as PayPal selection, the AHS official website, the AHS store, and Douyin platforms.
Second hand product transactions to a broader user base.
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Speaker #4: Consequently, 1P2C retail revenue surged 63.7% year-over-year in the second quarter, accounting for 34.4% of product revenue. This continuous improvement reflects our value creation for more retail users.
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Speaker #6: 我们的3P平台业务收入在二季度也取得了有效的增长, 服务收入同比增长达15.4%, 平台综合收费率5.3%。具体从三个平台业务板块来看,
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Kerry Chen: 我们的3P平台业务收入在二季度也取得了有效的增长, 服务收入同比增长达15.4%, 平台综合收费率5.3%。具体从三个平台业务板块来看。
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Speaker #4: Our 3P service revenue also sustained growth in the second quarter, increasing by 15.4% year-over-year with an overall take rate of 5.3%. Let's zoom in on the three core business segments.
Rex Chen: Our 3P service revenue also sustained growth in Q2, increasing by 15.4% year-over-year, with an overall platform take rates of 5.3%. Let's zoom in on the three core business segments.
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Speaker #6: The The The The B2B派集团加强行业开放, 为平台商家抖音用户提供开放的供应链服务。其中, 派集团平台的入仓自检GMV同比增长显著, B2B平台业务的入仓的入仓自检比例从2024年第一季度的62%提升至2025年第二季度的73%。同时, 我们通过达人带头的创新模式获取了更多用户流量, 抓住了新的用户增长机会, 促进派集团平台的累计注册签约用户数快速突破116万。二季度派集团平台整体业绩实现了健康的双位数增长。
Kerry Chen: the Paipai Marketplace platform achieved healthy double-digit growth.
Third while it take out the recycling G M D and related service revenue both increased by nearly 110% year on year this quarter with a take rate of three 4% service coverage extended alongside our accelerated store opening strategy as of June 3600, and like it yourself all for new stores.
112 to one the operating stores launched a multi category recycling services catering offerings to local user consumption habits based on store locations and commercial district building on our upgraded luxury recycling services at Amtrust self operated stores, we leverage AI technology to enhance automated.
Identification capabilities, so improve the recycling and pricing experience for users lots, you're finding on best in class user to user experience.
Speaker #4: First, our B2B marketplace, 派集团 sustained a strengthened industry openness by providing open supply chain services to merchants and Douyin users. Specifically, warehousing inspection GMV surged year-on-year, increasing the warehousing inspection penetration rate for B2B platform operations.
Rex Chen: First, our B2B marketplace, Paipai Marketplace, sustained a strengthened industry openness by providing open supply chain services to merchants and Douyin users. Specifically, warehousing inspection GMV surged year-on-year, increasing the warehousing inspection penetration rate for B2B platform operations from 62% in Q1 2024 to 73% in Q2 2025. Meanwhile, we also captured new user traffic and growth opportunities through the innovative specialty buyer model, with cumulative registered users exceeding 1.16 million. In Q2, Paipai Marketplace achieved robust double-digit growth in overall performance.
Our platform based multi category with recycling service, both local store efficiency without additional capex, enabling further expansion of our high quality offline store network.
Speaker #4: From 62% in the first quarter of 2024 to 73% in the second quarter of 2025. Meanwhile, we also captured new user traffic and growth opportunities through the innovative specialty buyer model, with cumulative registered users exceeding 1.16 million.
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Speaker #4: In the second quarter, 派集团 achieved robust double-digit growth in overall performance.
The aforementioned reflects our effective operational practices.
Speaker #6: We We are the B2C PayPal的平台业务发展中, 我们此前分享过, 为中小二手商家提供更多运营便利的静脉模式, 既由派派团队为商家进行商品和店铺的管理, 流量的运营以及售后等服务。静脉模式下, 前台展示一致, 服务标准一致, 商品质量可控, 售后更有保障, 从而综合实现销售质量与用户体验的共同提升。派派静脉现在的日均在库库存较一季度水平环比提升了100%。二季度静脉GMV同比增长128%, 带动派派平台收费率小幅度回升, 为更多用户实现高质量性价比二手商品的交易价值。
Kerry Chen: Marketplace的平台业务发展中, 我们此前分享过为中小二手商家提供更多运营便利的寄卖模式, 即由 Paipai Marketplace团队为商家进行商品和店铺的管理、流量的运营以及售后等服务。寄卖模式下, 前台展示一致, 服务标准则一致, 商品质量可控, 售后更有保障, 从而综合实现销售质量与用户体验的共同提升。Paipai Marketplace寄卖现在的日均在库库存较一季度水平环比提升了100%。二季度寄卖GMV同比增长128%, 带动 Paipai Marketplace平台 take rates小幅度回升, 为更多用户实现高质量、性价比二手商品的交易价值。
For our long term strategy, we would like to take this earnings call as an opportunity to update our investors in that or is it.
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Speaker #4: Second, our B2C marketplace, in developing PayPal's 3P business, as we previously shared, we have implemented a consignment model designed to provide enhanced operational convenience for small and medium-sized second-hand merchants.
Rex Chen: Second, our B2C marketplace in developing Paipai Marketplace's 3P business. As we previously shared, we have implemented a consignment model designed to provide enhanced operational convenience for small and medium-sized second-hand merchants. Under this model, the Paipai Marketplace team handles product and store management, traffic operations, and after-sales services on behalf of merchant users. This consignment approach ensures consistent front-end product listing, standardized service quality, managed product quality, and reliable after-sales support, resulting in comprehensive improvements to both sales performance and user experience. Daily in-stock inventory volumes of Paipai Marketplace's consignment service have now increased by 100% compared to the first quarter of this year. Paipai Marketplace's consignment GMV in the second quarter surged 128% year-over-year, driving a modest recovery in the platform take rates and delivering cost-effective second-hand product transactions to a broader user base.
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The first goal against the backdrop of national subsidies and policies stimulating domestic consumption, we leveraged the value of our unique trade in programs and comprehensive supply chain capabilities to partner with strategic allies, such as JD com and Apple delivering the best in class trading user experience.
Speaker #4: Under this model, the PayPal team handles product and store management, traffic operations, and after-sales services on behalf of merchant users. This consignment approach ensures consistent front-end product listing, standardized service quality, managed product quality, and reliable after-sales support, resulting in comprehensive improvements to both sales performance and user experience.
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Speaker #4: Daily in-store inventory volumes of PayPal's consignment service have now increased by 100% compared to the first quarter of this year. PayPal's consignment GMV in the second quarter surged 128% year-over-year, driving a modest recovery in the platform's take rate and delivering cost-effective second-hand product transactions to a broader user base.
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Speaker #6: Beta多品类多品类回收业务的GMV与相关服务收入在本季度均实现了接近100%的110%的同比增长, 收费率3.4%, 服务能力随着我们加速开店的战略进一步拓展, 截止六月末已有692家二回收自营门店与112家加盟门店开通了多品类回收业务, 精准匹配不同的门店地理位置、不同商圈和社区的用户消费习惯。我们基于二回收自营门店升级了奢侈品回收服务, 结合了AI技术的应用, 提升商品自动识别能力, 综合提升用户的回收体验和价格体验, 打造了行业最佳的用户体验。平台模式的多品类回收服务提升本地门店的店效, 不增加额外的成本投入, 支持我们开出更多优质的线下门店。
Kerry Chen: increasing additional cost input, supporting us in opening more high-quality offline stores.
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Second goal in response to the changing consumer landscape, we leveraged it a trust recycles distinctive brand value and utilize our nation wide network of forward to fall then aircrafts doors to continuously expand our platform based recycling businesses.
Additional high value product categories.
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Speaker #4: Third, our take-category recycling GMV and related service revenue both increased by nearly 110% year-on-year this quarter, with the take rate of 3.4%. Service coverage expanded alongside our accelerated store opening strategy.
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Rex Chen: Third, multi-category recycling GMV and related service revenue both increased by nearly 110% year-on-year this quarter, with a take rate of 3.4%. Service coverage extended alongside our accelerated store opening strategy. As of June 30, 692 self-operated stores and 112 jointly operated stores launched multi-category recycling services, tailoring offerings to local user consumption habits based on store locations and commercial districts. Building on our upgraded luxury recycling services at AHS self-operated stores, we leverage AI technology to enhance automated identification capabilities to improve the recycling and pricing experiences for users, thus defining a best-in-class user experience. Our platform-based multi-category recycling service boosts local store efficiency without additional key taxes, enabling further expansion of our high-quality offline store network.
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Speaker #4: As of June 30th, 692 self-operated stores and 112 jointly operated stores launched multi-category recycling services, tailoring offerings to local user consumption habits. Based on store locations and commercial districts, and building on our upgraded luxury recycling services at AHS self-operated stores, we leverage AI technology to enhance automated identification capabilities to improve the recycling and pricing experiences for users.
Moving up to the circle capitalizing on the 30th momentum a friend consumption, we will elaborate how our unique business model advantage combined with heart is taking place.
Offline presence spanning both shopping malls and communities.
Positioning enables us to create a close loop ecosystem that seamlessly integrates commercial monetization and user acquisition across both low frequency high value and high frequency low value transactions reinforcing our commitment to becoming a pioneer of sustainable consumption.
Speaker #4: Thus, defining a best-in-class user experience. Our platform-based multi-category recycling service boosts local store efficiency without additional CAPEX, enabling further expansion of our high-quality offline store network.
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Speaker #6: 以上是我们在运营层面行之有效的实践, 对于集团的长期战略, 我们在7月初举办了一次线下调研交流, 借本次财报电话会的机会, 我们与各位投资者和分析师更新万物新生的三大战略目标。
Kerry Chen: 以上是我们在运营层面行之有效的实践。对于集团的长期战略, 我们在7月初举办了一次线下调研交流, 借本次财报电话会的机会, 我们与各位投资者和分析师更新ATRenew Inc.的三大战略目标。
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Speaker #4: The aforementioned reflects our effective operational practices. As for our long-term strategy, we would like to take this earnings call as an opportunity to update our investors and analysts on ATRenew's three strategic goals, which we last spoke on during our offline investor day in early July.
Rex Chen: The aforementioned reflects our effective operational practices. As for our long-term strategy, we would like to take this earnings call as an opportunity to update our investors and analysts on ATRenew Inc.'s three strategic goals, which we last spoke on during our offline investor day in early July.
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Speaker #6: 第一个目标在国补和政策促进内需消费的背景下, 我们以独特的换新场景价值和综合的供应链能力与京东、苹果等战略伙伴为用户打造行业最佳的以旧换新体验。通过融合2C、2B与合规翻新的综合供应链能力, 万物新生持续巩固中国最大最强的二手手机3C交易与服务龙头的行业地位。根据第三方机构CIC的数据, 中国市场的二手手机3C回收渗透率只有六位数, 对比发达经济体30%以上的回收渗透率有着充足的上行发展空间。
Kerry Chen: 第一个目标, 在国补和政策促进内需消费的背景下, 我们以独特的换新场景价值和综合的供应链能力, 与JD.com、Apple等战略伙伴为用户打造行业最佳的以旧换新体验。通过融合2C、2B与合规翻新的综合供应链能力, ATRenew Inc.持续巩固 China最大、最强的二手手机3C交易与服务龙头的行业地位。根据第三方机构CIC的数据, China市场的二手手机3C回收渗透率只有个位数, 对比发达经济体30%以上的回收渗透率, 有着充足的上行发展空间。
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I like to I like to point out that all business models take money from their account well air transfer cycle as money to our users our counts.
Our business model is unique and disruptive on August 1st we lost the AA transfer cycle growing wallet, enabling users to purchase a growing range of products at the surprise discounts in recognition of their eco friendly actions.
Zero co branded partnerships, what's consumer brands, we promote equal funding recycling and Gwen consumption engage an increasing number of users and set a new friend of January life, New lifestyle. This represents our long term vision and embodies our mission to gave them a second life for all either.
Speaker #4: The first goal, against the backdrop of national subsidies and policies stimulating domestic consumption, is to leverage the value of our unique trading programs and comprehensive supply chain capabilities to partner with strategic allies such as JD.com and Apple, delivering the best-in-class trading user experience.
Rex Chen: The first goal, against the backdrop of national subsidies and policies stimulating domestic consumption, we leverage the value of our unique trading programs and comprehensive supply chain capabilities to partner with strategic allies such as JD.com and Apple, delivering the best-in-class trading user experience. By integrating our comprehensive supply chain capabilities across B2C, B2B, and compliant refurbishment operations, ATRenew Inc. continues to strengthen our position as China's largest and most robust leader in the transaction and service of pre-owned consumer electronics. According to third-party data from CIC, China's recycling penetration rate for pre-owned consumer electronics remains in single digits, versus over 30% in developed economies, indicating substantial growth potential.
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Speaker #4: By integrating our comprehensive supply chain capabilities across B2C, B2B, and compliant refurbishment operations, ATRenew continues to strengthen our position as China's largest and most robust leader in the transaction and service of pre-owned consumer electronics.
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Speaker #4: According to third-party data from CIC, China's recycling penetration rate for pre-owned consumer electronics remains in the single digits, versus over 30% in developed economies, indicating substantial growth potential.
These three strategic go represent our roadmap for fulfilling our long term commitment and formed upon the fundamental strategy driving accelerated business growth.
Earlier this year, we identified emerging opportunities from national trade and subsidies from consumer electronics, alongside the expanding secondhand market. Accordingly, our initial guidance estimated that this year's revenue growth will not only sustain at Hudson that accelerates clutter slightly surpassing last year's growth.
Speaker #6: 第二个目标在居民消费环境发生变化的背景之下, 我们以二回收独特的品牌价值, 复用全国超过2000家以上的二回收门店资源, 持续以平台模式探索更多高质品类商品的回收业务, 在二手回收领域开辟增长新路径, 致力于将二回收打造成为国民第一回收品牌。
Kerry Chen: 2,000家以上的 AHS Recycle 门店资源,持续以平台模式探索更多高值品类商品的回收业务,在二手回收领域开辟增长新路径,致力于将 AHS Recycle 打造成为国民第一回收品牌。
As we enter the third quarter, we have strong confidence in meeting our full year operational objectives.
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Speaker #4: The second goal, in response to the changing consumer landscape, is to leverage AHS Recycle's distinctive brand value and utilize our nationwide network of over 2,000 AHS stores to continuously expand our platform-based recycling businesses.
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Rex Chen: The second goal, in response to the changing consumer landscape, we leverage AHS Recycle's distinctive brand value and utilize our nationwide network of over 2,000 AHS stores to continuously expand our platform-based recycling businesses across additional high-value product categories. This strategy creates new growth opportunities for us in the second-hand recycling market, and we are committed to establishing AHS Recycle as China's top recycling brand.
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Speaker #4: Across additional high-value product categories, this strategy creates new growth opportunities for us in the second-hand recycling market, and we are committed to establishing AHS Recycle as China's top recycling brand.
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It's our strong confidence in our performance. We are pleased to announce a three year shareholder return program committing to return low that's 60% of our annual non-GAAP net profit to shareholders via dividends and share repurchases or a combination of both some 25 through 27.
Speaker #6: 第三个目标在绿色消费大潮兴起的背景之下, 我们将发挥独特的商业模式优势, 结合商场加社区的独特线下场景能力, 将低频高值场景的商业变现与高频低值场景的用户获取形成闭环, 致力于成为绿色消费模式的创新典范。
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Speaker #4: Moving up to the third goal, capitalizing on the surging momentum of rain consumption, we will leverage our unique business model advantage, combine with our distinctive zero track offline presence, spanning both shopping malls and communities.
Rex Chen: Moving up to the third goal, capitalizing on the surging momentum of freeing consumption, we will leverage our unique business model advantage, combined with our distinctive field-track offline presence, spanning both shopping malls and communities. This positioning enables us to create a closed-loop ecosystem that seamlessly integrates commercial monetization and user acquisition across both low-frequency high-value and high-frequency low-value transactions, reinforcing our commitment to becoming a pioneer of sustainable consumption.
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Speaker #4: This positioning enables us to create a closed-loop ecosystem that seamlessly integrates commercial monetization and user acquisition across both low-frequency, high-value and high-frequency, low-value transactions.
One more thing our ESG progress in during this year, we released our fifth annual yes, we report marking a significant milestone with our first carbon reduction commitment using 21 full as our baseline year, we have set ambitious targets to reduce scope, one and scope two greenhouse gas emission intensity by 35%.
Speaker #4: Reinforcing our commitment to becoming a pioneer of sustainable consumption.
Speaker #6: 有一点值得强调的是, 几乎所有的商业模式都是从都是让用户从钱包里面拿钱消费, 但二回收的商业模式是往用户的钱包里面充值。这是很独特的一个商业模式。8月1日, 二回收绿钱包产品已经上线, 因为用户的绿色行为, 用户可以在这里以极高的折扣优惠购买到越来越多的商品。我们将通过与更多的消费品品牌联名推广, 环保回收与绿色消费, 让越来越多的用户参与进来, 真正让回收和绿色消费成为新时尚。这是我们更加长远的目标, 也是二回收的使命, 让闲置不用都物尽其用的价值体现。
Kerry Chen: embody the value of making the best use of idle items.
And of course, great emission intensity by 50%, our tiny person you're more than welcome to explore more about our ESG highlights and improvements from us from the full report, which is available on our Investor Relations website.
<unk> Central Rex tirelessly changing channels now I'd like to turn the call over to CFO for financial update.
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Speaker #4: I'd like to I'd like to point out that all business models take money from their accounts. While AHS Recycle adds money to our users' accounts, our business model is unique and disruptive.
Rex Chen: I'd like to point out that all business models take money from their accounts, while AHS Recycle adds money to our users' accounts. Our business model is unique and disruptive. On August 1, we launched the AHS Recycle Green Wallet, enabling users to purchase a growing range of products at surprise discounts in recognition of their eco-friendly action. Through co-branded partnerships with consumer brands, we promote eco-friendly recycling and green consumption, engage an increasing number of users, and set a new trend of genuine new lifestyle. This represents our long-term vision and embodies our mission to give a second life to all idle dukes.
Hello, everyone. We are pleased to report strong financial performance in the second quarter off 25.
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Speaker #4: On August 1st, we launched the AHS Recycle Green Wallet, enabling users to purchase a growing range of products at surprise discounts in recognition of their eco-friendly actions.
Speaker #4: Through co-branded partnerships with consumer brands, we promote eco-friendly recycling and green consumption, engage an increasing number of users, and set a new trend of lifestyle.
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Speaker #4: This represents our long-term vision and embodies our mission to give a second life to all idle use.
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Speaker #6: 以上三个目标是我们践行长期使命的方向规划, 也是支持业绩加速发展的战略基础。我们在今年年初曾经判断, 今年具有国家手机数码产品以旧换新补贴和二手行业发展的机会, 所以说在年初的预算中判断今年的收入增长会不降反升, 略快于去年同去年收入的同比增速。进入三季度, 我们对达成全年经营目标保持充分的信心。
Kerry Chen: 以上三个目标是我们践行长期使命的方向规划, 也是支持业绩加速发展的战略基础。我们在今年年初曾经判断, 今年具有国家手机数码产品以旧换新补贴和二手行业发展的机会。所以说在年初的预算中判断今年的收入增长会不降反升, 略快于去年同去年收入的同比增速。进入三季度, 我们对达成全年经营目标保持充分的信心。
Total revenue in the second quarter once again forecasts at the high end of our guidance increasing by 32, 2% to over 4000 519 million RMB and adjusted operating income was over 120 million army compared to adjusted operating income of $94 1 million RMB in the.
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Through June we compete before taking a detailed look at the financials. Please note that all amounts are in RMB and all comparisons are on year over year basis, unless otherwise stated.
Speaker #4: This three-year strategic goal represents our roadmap for fulfilling all long-term commitments and forms the fundamental strategy driving accelerated business growth. Earlier this year, we identified emerging opportunities from national trading subsidies in consumer electronics, alongside the expanding second-hand market.
Rex Chen: These three strategic goals represent our roadmap for fulfilling our long-term commitments and form the fundamental strategy driving accelerated business growth. Earlier this year, we identified emerging opportunities from national trading subsidies from consumer electronics alongside the expanding second-hand market. Accordingly, our initial guidance estimated that this year's revenue growth will not only sustain its momentum but accelerate further, slightly surpassing last year's growth. As we enter the third quarter, we have strong confidence in meeting our full-year operational objectives.
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Speaker #4: Accordingly, our initial guidance estimated that this year's revenue growth will not only sustain its momentum but accelerate further, slightly surpassing last year's growth. As we enter the third quarter, we have strong confidence in meeting our full-year operational objectives.
In the second quarter the growth of total revenues was primarily driven by continued growth in both our net product revenue and net service revenues net product revenues increased by 34% to 4000 560 million largely attributable to the growth in online self offering your own customer electronics.
Speaker #6: 处于对集团业绩的充分信心, 我们欣然宣布一项三年期的股东回报计划。在2025年至2027年, 将集团年度Non-GAAP净利润不低于60%的比例返还给股东, 形式包括分红、股购和回购或者两者相结合的方式。
Kerry Chen: 在2025年至2027年将集团年度 non-GAAP net profit 不低于60%的比例返还给股东, 形式包括分红、股购、回购或者两者相结合的方式。
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Speaker #4: Based on strong confidence in our performance, we are pleased to announce a three-year shareholder return program committing to return low debts and 60% of our annual Non-GAAP net profit to shareholders via dividends, share repurchases, or a combination of both from 2025 through 2027.
Rex Chen: Based on strong confidence in our performance, we are pleased to announce a three-year shareholder return program, committing to return no less than 60% of our annual non-GAAP net profit to shareholders via dividends, share repurchases, or a combination of both from 2025 through 2027.
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Service revenue was $430 million in the second quarter, representing an increase of 15, 4%. The increase was largely driven by the growth in service revenue from all of our three P market cause wherever it's that clean operations. The overall take rate of our marketplace.
Speaker #6: 最后, 补充一个ESG动态, 今年6月我们发布了第五份年度ESG报告, 并首次设定了碳减排的目标。即以2024年为基准, 目标于2030年将范围一和范围二的温室气体排放强度下降35%, 并将范围三的排放强度降低50%。关于其他ESG亮点及与绩效提升欢迎访问集团投资者关系网站查询报告全文。
Kerry Chen: 最后补充一个ESG动态, 今年6月我们发布了第五份年度ESG报告, 并首次设定了碳减排的目标, 即以2024年为基准, 目标于2030年将范围一和范围二的温室气体排放强度下降35%, 并将范围三的排放强度降低50%。关于其他ESG亮点及与绩效提升, 欢迎访问集团投资者关系网站查询报告全文。
Five 3% for the second quarter off on your 25 off slightly year over year and quarter over quarter during the quarter. Our markets were recycling business contributed over 63 million of revenue accounting for 14, 7% of service revenues and representing a healthy upward trend.
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Speaker #4: One more thing, our ESG progress in June this year: we released our fifth annual ESG report, marking a significant milestone with our first carbon reduction commitment.
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Rex Chen: One more thing, our ESG progress. in June this year, we released our fifth annual ESG report, marking a significant milestone with our first carbon reduction commitment. Using 2024 as our baseline year, we have set ambitious targets to reduce Scope 1 and Scope 2 greenhouse gas emission intensity by 35% and Scope 3 emission intensity by 50% by 2030. You are more than welcome to explore more about our ESG highlights and improvements from the full report, which is available on our investor relations website.
Now lets discuss our operating expenses to provide greater clarity on the trends in our actual operating base expenses, well, mainly discuss our non-GAAP operating expenses, which better reflect how management views. Our operating results. The reconciliation of GAAP and non-GAAP results are available in our earnings release and corresponding.
Speaker #4: Using 2024 as our baseline year, we have set ambitious targets to reduce scope one and scope two greenhouse gas emission intensity by 35% and scope three emission intensity by 50% by 2030.
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Speaker #4: You are more than welcome to explore more about our ESG highlights and improvements from the full report, which is available on our Investor Relations website.
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Speaker #6: 下面请CFO Rex对财务数据进行解读。
Kerry Chen: 下面请CFO Rex对财务数据进行解读。
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Speaker #4: Now, I'd like to turn the call over to CFO Rex for financial updates.
Rex Chen: Now I'd like to turn the call over to CFO Rex Chen for financial updates.
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Kerry Chen: consumer electronics的回收及以旧换新渗透率借势提升。我们精准服务以旧换新场景持续建设履约交付能力和供应链能力, 加强 AHS Recycle 的品牌力, 并以此有效抓住了加速增长的机会。
Speaker #7: 各位投资者和分析师大家好, 我们很高兴与各位分享2025年第二季度取得强劲的财务表现。在国家消费电子以旧换新补贴政策落地的背景下, 二手电子产品的回收及以旧换新渗透率借势提升。我们精准服务以旧换新场景, 持续建设履约交付能力和供应链能力, 加强二回收的品牌力, 并以此有效抓住了加速增长的机会。
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Speaker #4: Hello, everyone. We are pleased to report strong financial performance in the second quarter of 2025. As national trading subsidies for consumer electronics fell, we witnessed a surge in the demand for used device recycling and trading.
Merchandize cost increased by 32, 3% to 3000 560 million in line with the growth in product sales gross profit margin for our one pay business was 13, 2% compared with 12, 1% in the same period last year, the gross margin improvement in our lumpy business.
Rex Chen: Hello everyone, we are pleased to report strong financial performance in the second quarter of 2025. As national trading subsidies for consumer electronics fueled by market growth, we witnessed a surge in the demand for used device recycling and trade-in, enabling us to capture accelerated opportunities through high-precision trade-in services, upgraded fulfillment capabilities, and a stronger AHS Recycle brand.
Speaker #4: Enabling us to capture accelerated opportunities through high precision trading services. Upgraded fulfillment capabilities and a stronger AHS Recycle brand.
Well, it's probably driven by high efficiency to be recycling scenario compliant refurbishment capabilities incorporate it in our supply chain and then increasingly diversified retail channel mix.
Speaker #7: 第二季度营收再次超过自营高端, 突破49.9亿元, 同比增长32.2%。Non-GAAP净利润超1.2亿元, 2024年同期Non-GAAP净利润为9410万元。
Kerry Chen: 2024年同期Non-GAAP net profit为94.1 million yuan.
This allows us to increase the proportion of higher margin retail sales with one PTC revenue accounting for 34, 4% of product revenue in the second quarter of 25 up from 28, 2% in the same period last year. Additionally, the high base impact from iPhone trade in program in 'twenty Titanfall has E.
Speaker #4: Total revenue in the second quarter once again surpassed the high end of our guidance, increasing by 32.2% to over 4,000 990 million RMB and adjusted operating income was over 120 million RMB, compared to adjusted operating income of 94.1 million RMB in the same period of 2024.
Rex Chen: Total revenue in the second quarter once again surpassed the high end of our guidance, increasing by 32.2% to over RMB 4,990 million. Adjusted operating income was over RMB 120 million, compared to adjusted operating income of RMB 94.1 million in the same period of 2024.
With a significantly improved gross margin in this segment through better pricing strategies.
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Speaker #7: 再解读财务数据之前, 请注意, 除非另有说明, 所有金额均以人民币为单位, 所有增数数据均为同比。
Kerry Chen: 在解读财务数据之前, 请注意, 除非另有说明, 所有金额均以人民币为单位, 所有增数数据均为同比。
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Speaker #4: Before taking a detailed look at the financials, please note that all amounts are in RMB and all comparisons are on a year-over-year basis unless otherwise stated.
Rex Chen: Before taking a detailed look at the financials, please note that all amounts are in RMB and all comparisons are on a year-over-year basis unless otherwise stated.
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Fulfillment expenses increased by 26% to 410 million fulfillment expenses increased by 27, 3% to $410 million and other non-GAAP measures. The increase was mainly driven by higher personnel and logistics expenses.
Speaker #7: 第二季度集团总收入的增长动力主要来自产品收入的持续稳健增长, 产品收入增长34%, 至45.6亿元, 主要得益于公司线上渠道二手消费电子产品销售的增长。
Kerry Chen: pre-owned consumer electronics.
Speaker #4: In the second quarter, the growth of total revenue was primarily driven by continued growth in both our net product revenue and net service revenues.
Rex Chen: In the second quarter, the growth of total revenues was primarily driven by continued growth in both our net product revenue and net service revenues. Net product revenues increased by 34% to 4,560 million, largely attributable to the growth in online sales of pre-owned consumer electronics.
Lapsing, a greater volume of recycling and transaction activities compared to the same period in two anything fall. Additionally, operation related cost growth as we expanded our store network and enhance operation center capacity in the second quarter up one five.
Speaker #4: Net product revenues increased by 34% to $4,560 million, largely attributed to the growth in online sales of pre-owned consumer electronics.
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Speaker #7: 第二季度服务收入为4.3亿元, 同比增长15.4%, 主要得益于平台模式开展的多品类回收业务, 贡献了服务收入增长。二季度的平台综合收费率为5.3%, 同环比稳中略升, 期间多品类回收业务贡献超过6300万元的服务收入, 占本季度服务收入的14.7%, 呈现健康增长趋势。
Kerry Chen: quarter, demonstrating a healthy growth trend.
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Speaker #4: Net Net service revenues were 430 million in the second quarter, representing an increase of 15.4%. The increase was largely driven by the growth in service revenue from our 3P multi-category recycling operations.
Rex Chen: Net service revenues were 430 million in the second quarter, representing an increase of 15.4%. The increase was largely driven by the growth in service revenue from our 3P multi-category recycling operations. The overall take rate of our marketplace was 5.3% for the second quarter of 2025, up slightly year-over-year and quarter-over-quarter. During the quarter, our multi-category recycling business contributed over 63 million of revenue, accounting for 14.7% of service revenues and representing a healthy upward trend.
It was 319 million the increase was primarily driven by higher life of advertising and promotional campaign related spending as well as an uptick in commission expenses associated with channel service fees as a result, non-GAAP selling and marketing expenses as a percentage of total revenues increased to seven.
Speaker #4: The overall take rate of our marketplace was 5.3% for the second quarter of 2025, up slightly year-over-year and quarter over quarter. During the quarter, our multi-category recycling business contributed over 63 million of revenue, accounting for 14.7% of service revenues and representing a healthy upward trend.
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Speaker #7: 在运营费用方面, 我们主要讨论Non-GAAP口径的费用分析, 以展示管理团队视角的费用趋势。关于GAAP和Non-GAAP口径之间的调整, 请参考我们的财务报告与成交给美国证券交易委员会的6K表格。
Kerry Chen: 在运营费用方面, 我们主要讨论Non-GAAP口径的费用分析, 以展示管理团队视角的费用趋势。关于GAAP和Non-GAAP口径之间的调整, 请参考我们的财务报告与呈交给美国证券交易委员会的6K表格。
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General and administrative expenses increased by six 9% to 77 5 million non-GAAP G&A expenses also increased by 38 today.
Speaker #4: Now, let's discuss our operating expenses. To provide greater clarity on the trends in our actual operating-based expenses, we will mainly discuss our Non-GAAP operating expenses, which better reflect how management views our operating results.
Rex Chen: Now, let's discuss our operating expenses. To provide greater clarity on the trends in our actual operating base expenses, we will mainly discuss our non-GAAP operating expenses, which better reflect how management views our operating results. The reconciliations of GAAP and non-GAAP results are available in our earnings release and the corresponding Form 6-K furnished with the U.S. SEC.
Three 6%, so $75 1 million, primarily due to an increase in personnel costs non-GAAP G&A expenses as a percentage of total revenues remained stable at one 5%.
Speaker #4: The reconciliations of GAAP and Non-GAAP results are available in our earnings release and the corresponding form 6K furnished with the US SEC.
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Speaker #7: Sampling成本增加32.3%至39.6亿元, 与产品销售的增长一致。我们EP业务的毛利率为13.2%, 而上年同期为12.1%。EP毛利率的改善主要得益于我们发挥C2B回收场景, 供应链中的合规翻新整备能力, 多样化的严选零售渠道的优势, 提升毛利较高2C零售的占比。第二季度EP2C占比及产品收入中的零售收入占比达到34.4%, 去年同期为28.2%。同时, 苹果官方以旧换新业务收入在2024年产生的高技术影响, 已逐步消化。该业务板块的毛利率也因此持续优化的价格策略而较去年同期显著提升。
Kerry Chen: 与产品销售的增长一致。我们1P业务的毛利率为13.2%, 而上年同期为12.1%。1P毛利率的改善主要得益于我们发挥C2B recycling场景、供应链中的合规翻新整备能力、多样化的严选零售渠道的优势, 提升毛利较高2C零售的占比。Q2 1P 2C占比及产品收入中的零售收入占比达到34.4%, 去年同期为28.2%。同时, Apple官方以旧换新业务收入在2024年产生的高基数影响已逐步消化, 该业务板块的毛利率也因此持续优化的价格策略而较去年同期显著提升。
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Technology and content expenses increased by 25, 5% to $62 5 million non-GAAP technology and content expenses increased by 33, 2% from $58 2 million as well.
The increase was primarily driven by elevated personnel expenses non-GAAP technology and content expenses as a percentage of total revenues remained stable at one 2%.
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Speaker #4: Merchandise costs increased by 32.3% to 3,960 million, in line with the growth in product sales. Gross profit margin for our 1P business was 13.2%, compared with 12.1% in the same period last year.
Rex Chen: Merchandise costs increased by 32.3% to 3,960 million, in line with the growth in product sales. Gross profit margin for our 1P business was 13.2%, compared with 12.1% in the same period last year. The gross margin improvement in our 1P business was primarily driven by high-efficiency C2B recycling scenarios, compliant refurbishment capabilities incorporated in our supply chain, and an increasingly diversified retail channel mix. This allowed us to increase the proportion of higher margin retail sales, with 1P 2C revenue accounting for 34.4% of product revenue in the second quarter of 2025, up from 28.2% in the same period last year. Additionally, the high-based impact from Apple's trading program in 2024 has eased, with a significantly improved gross margin in this segment through better pricing strategies.
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As a result, our non-GAAP operating income was over 120 million in the second quarter of 2025 compared to a non-GAAP operating income of $94 1 million in the second quarter of 2024 non-GAAP operating profit margin was two 4% for this quarter compared to four 5% in the same.
Speaker #4: The gross margin improvement in our 1P business was primarily driven by high-efficiency C2B recycling scenarios, compliant refurbishment capabilities incorporated in our supply chains, and an increasingly diversified retail channel mix.
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Speaker #4: This allows us to increase the proportion of higher margin retail sales, with 1P2C revenue accounting for 34.4% of product revenue in the second quarter of 2025, up from 28.2% in the same period last year.
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Speaker #4: Additionally, the high base impact from Apple's trading program in 2024 has eased, with a significantly improved gross margin in this segment through better pricing strategies.
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Each of our senses, one reduced during the second quarter of 'twenty or 'twenty five we repurchased a total of approximately $1 6 million 80 assets for approximately.
Speaker #7: 履约费用增长26%至4.1亿元, Non-GAAP履约费用增长27.3%至4.1亿元, Non-GAAP履约费用增长主要原因有: 1. 与2024年同期相比, 回收和交易量的增加导致人力和物流费用增加, 2024年第二季度拓展线下交付网络, 运营费用相应增加。Non-GAAP履约费用率从8.5%下降至8.2%。
Kerry Chen: decreased from 8.5% to 8.2%.
4 million U S dollars as of June 30 was 21, five we had repurchased a total of approximately $12 3 million 80 assets for approximately $31 1 million U S dollars and their previous 50.
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Speaker #4: Fulfillment expenses increased by 26% to $410 million. Non-GAAP fulfillment expenses increased by 27.3% to $410 million. Under the Non-GAAP measures, the increase was mainly driven by higher personnel and logistics expenses, reflecting a greater volume of recycling and transaction activities compared to the same period in 2024.
Rex Chen: Fulfillment expenses increased by 26% to $410 million. Non-GAAP fulfillment expenses increased by 27.3% to $410 million. Under the Non-GAAP measures, the increase was mainly driven by higher personnel and logistics expenses, reflecting a greater volume of recycling and transaction activities compared to the same period in 2024. Additionally, operation-related costs rose as we expanded our store network and enhanced operation center capacity in the second quarter of 2025. Non-GAAP fulfillment expenses, as a percentage of total revenue, decreased to 8.2% from 8.5%.
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On June 13th we announced that the board of directors authorized a new share repurchase program and of which the company may repurchase up to $50 million of its shares over a 12 months starting from June 30 of 2025, the share repurchase program will be implemented in conjunction with the <unk>.
Speaker #4: Additionally, operation-related costs rose as we expanded our store network and enhanced operation center capacity in the second quarter of 2025. Non-GAAP fulfillment expenses, as a percentage of total revenues, decreased to 8.2% from 8.5%.
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Speaker #7: 销售费用增加14.9%至4.1亿元, Non-GAAP销售费用增加36.7%至3.9亿元, 主要原因为广告和推广活动相关的费用增加, 以及与渠道服务相关的佣金费用的增加。Non-GAAP销售费用率从7.5%上升至7.8%。
Kerry Chen: from 7.5% to 7.8%.
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As of June 30th 25, cash and cash equivalents restricted cash and short term investments and funds receivable from third party payment service providers totaled $2 35 billion a army.
Speaker #4: Selling and marketing expenses increased by 14.9% to 410 million. Non-GAAP selling and marketing expenses increased by 36.7% to 309 million. The increase was primarily driven by higher advertising and promotional campaign-related spending, as well as an uptick in commission expenses associated with channel service fees.
Rex Chen: Selling and marketing expenses increased by 14.9% to $410 million. Non-GAAP selling and marketing expenses increased by 36.7% to $390 million. The increase was primarily driven by higher advertising and promotional campaign-related spending, as well as an uptick in commission expenses associated with channel service fees. As a result, Non-GAAP selling and marketing expenses as a percentage of total revenues increased to 7.8% from 7.5%.
Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.
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Speaker #4: As a result, Non-GAAP selling and marketing expenses, as a percentage of total revenues increased to 7.8% from 7.5%.
Speaker #7: 管理费用增加6.9%至7,750万元, Non-GAAP管理费用增加33.6%至7,510万元, 主要由于人员成本增加。Non-GAAP管理费用率保持1.5%、1.5%不变。
Kerry Chen: 管理费用增加6.9%至7,750万元, non-GAAP管理费用增加33.6%至7,510万元, 主要由于人员成本增加, non-GAAP管理费用率保持1.5%, 1.5%不变。
5000, 150 million RMB, representing a year over year increase of 24, 7% to 27, 1%. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change you saw soon she took the official point going to.
Speaker #4: General and administrative expenses increased by 6.9% to $77.5 million. Non-GAAP G&A expenses also increased by 33.6% to $75.1 million, primarily due to an increase in personnel costs. Non-GAAP G&A expenses, as a percentage of total revenues, remained stable at 1.5%.
Rex Chen: General and administrative expenses increased by 6.9% to $77.5 million. Non-GAAP G&A expenses also increased by 33.6% to $75.1 million, primarily due to an increase in personnel costs. Non-GAAP G&A expenses as a percentage of total revenues remained stable at 1.5%.
Jody. This concludes our prepared remarks, operator, we are now ready to take questions.
Uh huh.
Yeah. This is George Chu from Bank of America communicated.
Speaker #7: 研发费用上升25.5%至6,250万元, Non-GAAP研发费用上升33.2%至5,820万元, 主要由于人员成本增加。Non-GAAP研发费用率保持1.2%不变。
Kerry Chen: million yuan, 主要由于人员成本增加. Non-GAAP研发费用率保持1.2%不变.
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Speaker #4: Technology and content expenses increased by 25.5% to 62.5 million. Non-GAAP technology and content expenses increased by 33.2% to 58.2 million as well. The increase was primarily driven by elevated personnel expenses, Non-GAAP technology and content expenses, as a percentage of total revenues remained stable at 1.2%.
What's your thinking behind the firewall.
Rex Chen: Technology and content expenses increased by 25.5% to $62.5 million. Non-GAAP technology and content expenses increased by 33.2% to $58.2 million as well. The increase was primarily driven by elevated personnel expenses. Non-GAAP technology and content expenses as a percentage of total revenues remained stable at 1.2%.
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Speaker #7: 利润层面, 第二季度的Non-GAAP净利润超1.2亿元, 去年同期Non-GAAP净利润为9,410万元, 本季度Non-GAAP净利润率为2.4%, 较上年同期2.5%小幅下降6个基点, 环比持平。
Kerry Chen: 利润层面, 第二季度的non-GAAP净利润超1.2亿元, 去年同期non-GAAP净利润为9,410万元。本季度non-GAAP净利润率为2.4%, 较上年同期2.5%小幅下降6个基点, 环比持平。
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Speaker #4: As a result, our Non-GAAP operating income was over 120 million in the second quarter of 2025, compared to Non-GAAP operating income of 94.1 million in the second quarter of 2024.
Rex Chen: As a result, our non-GAAP operating income was over $120 million in the second quarter of 2025, compared to non-GAAP operating income of $94.1 million in the second quarter of 2024. Non-GAAP operating profit margin was 2.4% for this quarter, compared to 2.5% in the second quarter of 2024, representing a modest decline of 6 basis points. The margin stabilized at 2.4% compared to the previous quarter.
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Speaker #4: Non-GAAP operating profit margin was 2.4% for this quarter, compared to 2.5% in the second quarter of 2024, representing a modest decline of fixed basis points.
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Speaker #4: The margin stabilized at 2.4% compared to the previous quarter.
Speaker #7: 第二季度我们使用了约400万美金, 回购近160万股ADS, 截至2025年6月27日, 我们在原有的5,000万美元回购计划下, 累计使用了3,110万美元回购了约1,230万股ADS。
Kerry Chen: million share repurchase plan.
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Speaker #4: During the second quarter of 2025, we repurchased a total of approximately 1.6 million ADSs for approximately 4 million US dollars, as of June 30th, 2025, we had repurchased a total of approximately 12.3 million ADSs for approximately 31.1 million US dollars, and the previous 50 million US dollar share repurchase program.
Rex Chen: During the second quarter of 2025, we repurchased a total of approximately 1.6 million ADS for approximately $4 million. As of June 30, 2025, we had repurchased a total of approximately 12.3 million ADS for approximately $31.1 million under the previous $50 million share repurchase program.
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Oh from a longer term perspective, we'd leave the circular economy model centered on trade ins and secondhand consumption as a whole is enduring potential with its share of new product consumption gradually rising.
Speaker #7: 六月三十日, 我们宣布董事会已批准一项新的股票回购计划, 根据该计划, 自2025年6月30日起的12个月内, 集团可回购最多5,000万美元股票。该回购计划会结合Carry之前分享的三年股东回报方案综合执行。
Kerry Chen: previously shared by Kerry Chen.
This stemmed from younger consumers heightened appreciation for quality to price ratio and an increasing acceptance of grain secondhand consumption really industry development through and evolutionary view. This will be a long term process, requiring progressive brands and service recognition building normalizing trade in as a default.
Speaker #4: On June 30th, we announced that the board of directors authorized a new share repurchase program, under which the company may repurchase up to 50 million US dollars of its shares over a 12-month starting from June 30th, 2025.
Rex Chen: On June 30, we announced that the board of directors authorized a new share repurchase program, under which the company may repurchase up to $50 million of its shares over a 12-month period, starting from June 30, 2025. The share repurchase program will be implemented in conjunction with the three-year shareholder return plan previously shared by Kerry.
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Speaker #4: The share repurchase program will be implemented in conjunction with the three-year shareholder return plan previously shared by Carry.
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Speaker #7: 截至2025年6月30日, 现金及现金等价物受限资金短期投资以及第三方支付平台应收账款合计23.5亿元, 公司的资金储备充足, 能够支持对业务发展的再投入和股东回报。
Kerry Chen: and shareholder returns.
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Speaker #4: As of June 30, 2025, cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers totaled ¥2.35 billion.
Rex Chen: As of June 30, 2025, cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers totaled 2.35 million RMB. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.
At the current stage and during the next two years, we are focusing on two of course, rather be priority first we are maximizing whole recycling and fulfillment capabilities, including in store to door capabilities, allowing safe convenient and competitively priced or is that going and services more accessible.
Speaker #4: Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.
Speaker #7: 关于2025年第三季度的指引, 我们预计总收入将在50.5亿元至51.5亿元, 对应同比增长24.7%至27.1%。以上指引仅反映当前我们对市场和运营状况的初步看法, 预期有可能变化。
Kerry Chen: are subject to change.
We're positioning are just recycle that China's leading recycling brands, while building strong brand equity ensuring age with recycle okay effectively serve users secondhand recycling and purchasing needs for the next decade and even next generation.
Speaker #4: Now, turning to the business outlook. For the third quarter of 2025, we anticipate total revenues to be between 5,000 and 50 million RMB, and 5,150 million RMB, representing a year-over-year increase of 24.7% to 27.1%.
Rex Chen: Now turning to the business outlook. For the third quarter of 2025, we anticipate total revenues to be between 5,050 million RMB and 5,150 million RMB, representing a year-over-year increase of 24.7% to 27.1%. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change.
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Speaker #4: Please note that this focus only reflects our current and presumed reviews on the market and operational conditions, which are subject to change.
In September list here, new device launches from leading brands. We're generally a significant upgrade opportunity we expect to capitalize on it cycled to serve Chinese consumers are selecting them trade and demand. We are confident in realizing all the revenue growth targets for the second half of this year.
Speaker #7: 以上是我们的业绩重点分享, 欢迎各位提问交流。
Kerry Chen: 以上是我们的业绩重点分享, 欢迎各位提问交流。
Speaker #4: This concludes our prepared remarks. Operator, we are now ready to take questions.
Rex Chen: This concludes our prepared remarks. Operator, we are now ready to take questions.
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Speaker #8: In the question and answer session, to ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset.
Operator: In the question and answer session, to ask a question, you may press star then 1 on your reference keypad. If you are using speakerphone, please pick up your speakerphone.
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Regarding profitability expectations, we maintain our strategy of enhanced investment in brand and capability building supporting healthy profit also.
We anticipate scale in fact in fact to gradually drive improvements in operating profit margin starting next year to create longer term value. Okay.
Okay.
Thank you.
Operator, please open the line to the second question.
Michael Kim of Zacks small cap research. Please go ahead.
Yeah.
Great. Good morning, and good evening, everyone. Just just one question for me.
Just from a supply standpoint, any notable trends and trade in activity.
J D dot com or your offline stores in terms of.
Volumes were.
The underlying mix of products and then related to that any updated thoughts on how the.
Jeremy Ji: Probably due to technical issues, we are not able to hear the operator line.
Operator: Sorry, what is this?
The subsidies have.
Obviously impacted volumes more recently and sort of what inning do you think we might be in as it relates to the subsidy driven growth. Thanks.
Jeremy Ji: Hi, operator. We are not able to hear you clearly.
Okay. Thank you for your question.
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Operator: Oh, apologies. This is the operator. Can you hear me?
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Jeremy Ji: Yes, please proceed.
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Operator: Speaker three, please.
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Jeremy Ji: Can you repeat your question in English for the convenience of everyone on the call? Once again, if you would like to ask a question, you may press star, then one.
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Although results from the second quarter demonstrate that smartphones remain the strongest see there'll be recycling category benefiting from rising user acceptance of trade and the trade in program co launch by J D. A dotcom and air transfer recycled sustained robust growth in <unk>.
Operator: How?
In store and toured our fulfillment capabilities and neighborhood, 80% offline fulfillment adoption across tier one to tier four cities elevating user experience.
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Jeremy Ji: Hello, this is Joyce from Bank of America. Could you hear me?
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Operator: Yes.
David Brown: Yes.
Speaker 4: 哦, 对, 那个, 哎, 你好, 不好意思, 那个, 白女士你好。那个, 呃, 我听得清楚的话, 这边我就开始发问了。嗯, 因为我们想看到这个季度我们的这个增长是否还是相对比较强劲的呢? 然后就是想了解一下公司对今年下半年的增长预期是怎么样的啊? 有哪些业务层面的抓手去应对, 就是因为去年八月国家的那个家电补贴带来的一个阶段性的业绩增长啊, 以及呢, 我们今年对于整体的今年全年的收入和利润啊的目标会不会有一些更新啊? 那我就可以翻译一下啊。 This is for strong growth momentum in the first half. What are the company's growth expectations for the second half of the year? What are your measures to tackle the high base in the third quarter due to the home appliances, national subsidy that was implemented in August last year? Additionally, will the company actually, having an updated version of the three-year revenue and profit targets? Thank you very much.
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Regarding national subsidies, we closely monitor our policy developments recent government.
Directive thinking all our strong commitment to stimulating consumption through substantial subsidy allocations during implementation, we optimized fulfillment kept her subsidy driven airplane that's replacement demand delivering impressive double digit growth instead, it'll be recycling without the recycling results were.
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Kerry Chen: 谢谢。我来回答一下, 从长期的角度去展望, 我们认为以旧换新加二手消费的循环经济商业模式有长期的潜力。占新品销售的占新品消费的比例也会逐步提升, 因为新一代消费者对于自驾比有着更强的认可, 对于二手的绿色消费的接受度也在日益提升。从发展的眼光来看待行业, 这应该是一个循序渐进, 逐步树立品牌和服务心智, 将以旧换新作为新品默认的购买方式的长期发展过程。和其他的行业一样, 需要用户教育和心智培养。
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Notably our Apple to Apple training model offers brand for funded incentive for devices that were not eligible for the national subsidy. Other brand partners. We collaborate with have implemented similar promotional strategies brand owners and E. Commerce platforms have a stronger motivation to invest in trade ins.
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Jeremy Ji: From a longer-term perspective, we believe the circular economy model centered on trade-ins and second-hand consumption holds enduring potential. With its share of new product consumption gradually rising, this stems from younger consumers' heightened appreciation for quality-to-price ratios and increasing acceptance of second-hand consumption. During industry development through an evolutionary view, this will be a long-term process requiring progressive brand and service recognition building, normalizing trade-ins as the default purchasing method for new products. Like other sectors, it necessitates user education and on-site cultivation.
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Door to door fulfillment amplify Asia to recycle its brand influence and deliver superior value and user experiences.
Okay. Thank you.
Kerry Chen: for the next 10, 20 years, or even longer.
Operator, please take the next question please.
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Jeremy Ji: At the current stage and during the next two years, we are focusing on two core strategy priorities. First, we are maximizing our recycling and fulfillment capabilities, including in-store and door-to-door fulfillment capabilities, allowing safe, convenient, and competitively priced recycling and services more accessible. Second, we are positioning AHS Recycle as China's leading recycling brand while building strong brand equity, ensuring AHS Recycle can effectively serve users' second-hand recycling and purchasing needs for the next decade and even next generation.
Yeah definitely short ones I mean shifting Patrick show you, we should change that should help on managing job what keeps on Asia. Good evening management and congratulations for the strong results I have two questions. The first one I could you. Please share the adjustments you made to the apples artificial business and oversee spaces and what impact do you have all your.
Financial performance. The second question is could you share some progress regarding new cooperation channels suites brand manufacturers and a recycling center. Thank you.
Kerry Chen: second half of the year.
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Jeremy Ji: In September this year, new device launches from leading brands will generate significant upgrade opportunities. We expect to capitalize on this cycle to serve Chinese consumers' recycling and trade-in demands. We are confident in realizing our revenue growth targets for the second half of this year.
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Kerry Chen: 在利润预期方面, 今年我们对品牌的能力建设加大投入的策略没有变化, 因此我们会保持良性的利润预期, 预计明年会逐步见到规模效应带来的经营利润率的提升, 并且创造长期价值。
Maintained profitability since March of last year, we have successfully absorbed the impact from the high revenue base established in the first quarter of 'twenty painful, which we previously discussed we anticipate that this segment will contribute solid product revenue for the full year, while generating positive operating profit for us.
Jeremy Ji: Regarding profitability expectations, we maintain our strategy of enhanced investment in brand and capability building, supporting healthy profit outflows. We anticipate scale effects to gradually drive improvements in operating profit margins, starting next year to create longer-term value.
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Kerry Chen: OK, 谢谢。
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Jeremy Ji: Thank you. Operator, please open the line to the second question.
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Beyond Apple, we partner with high quality domestic brands, capturing significant recycling and trying to insurers on platforms like following March Xiaomi mall.
Operator: From Michael Kim of Zacks Small Cap Research, please go ahead.
Rex Chen: Great. Good morning and good evening, everyone. Just one question from me. From a supply standpoint, any notable trends in trade-in activity via JD.com or your offline stores in terms of volumes or the underlying mix of products? Related to that, any updated thoughts on how the subsidies have, obviously, impacted volumes more recently and what gaining do you think we might be in as it relates to subsidy-driven growth? Thanks.
We have established a wide area of mature so it'll be recycling scenarios, including any tracks start JD dotcom alcohol official website, I'm flattered fourth and Ali paint this year with happy until Ana D. J I M. J D power retail scenarios and build new partnerships we have.
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High quality recycling supply sources remain a core strategic priority, we will actively identify better supplying scenarios and leveraged efficient supply chain capabilities to enhance service experiences and price transparency for users.
Volumes, um, or the underlying mix of products. Uh, and then related to that, any updated thoughts on how, um, the subsidies have, you know, obviously impacted volumes more recently, and sort of what gaining do you think we might be in as it relates to subsidy-driven growth? Thanks.
Kerry Chen: 1 to Tier 4 cities choosing offline fulfillment can reach close to 80%, thereby obtaining a better recycling and trade-in experience.
Okay, thank you for your question.
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And this is regarding the international business, we are mixing active operation exploration. So we look forward to provide more color on our progress next quarter.
Okay.
Thank you.
Thank you. Thank you all again for joining us.
Today's call will be available on our IR website. Shortly followed by a corrected transcript right you should have any additional questions. Please feel free to email us.
Jeremy Ji: Our results from the second quarter demonstrate that smartphones remain the strongest C2B recycling category, benefiting from rising user acceptance of trade-ins. The trade-in program co-launched by JD.com and AHS Recycle sustained robust growth. Enhanced in-store and door-to-door fulfillment capabilities enabled 80% offline fulfillment adoption across tier one to tier four cities, elevating user experience.
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Our results from the second quarter demonstrate that smartphones remain the strongest. C2V, the recycling category, is benefiting from rising user acceptance of trade. In the trading program co-launched by JD.com and Ahas, recycling sustained robust growth.
Kerry Chen: 对于国补的预期,我们保持对有关政策的密切关注。从近期有关部门的文件中,今年国家补贴的额度和执行力度层面,我们明确感受到国家对于支持消费、促进消费的决心。在国补政策落地期间,我们积极提升履约交付能力,积极响应政策,促进着用户换新与救机回收需求,抓住优质供给的增长机会与回收渗透率提升的机会。C2B recycling业绩在Q2保持了较高的三位数增长,尤其是在JD.com的以旧换新场景看到了颇为亮眼的同比增长。
Enhanced in-store and 2-door fulfillment capabilities enabled, 80% offline fulfillment adoption across Tier 1 to Tier 4 cities, elevating user experience.
Jeremy Ji: Regarding national subsidies, we closely monitor policy developments. Recent government directives signal a strong commitment to stimulating consumption through substantial subsidy allocations. During implementation, we optimized fulfillment to capture subsidy-driven replacement demand, delivering impressive double-digit growth in C2B recycling results. The recycling results were particularly strong in JD.com's trade-in scenarios.
C2b.
Regarding national subsidies, we closely monitor policy developments. Recent government directives signal a strong commitment to stimulating consumption through substantial safety allocations.
During implementation, we optimized fulfillment to capture subsidy-driven replacement demand, delivering impressive double-digit growth in C2V reflection results. The recycling results were particularly strong in Jesus trading scenarios.
Kerry Chen: 其中在我们所服务的电商以旧换新场景里, 有独特的Apple换Apple的模式, 由品牌厂商直接对未能享受到国家补贴的机型提供换新服务。我们合作的其他品牌厂商同样有着类似的促销策略, 品牌和平台有更强的意愿去增加换新的补贴力度。
Jeremy Ji: Lastly, our Apple trade-in model offers brand-funded incentives for devices that were not eligible for the national subsidy. Other brand partners we collaborate with have implemented similar promotional strategies. Brand owners and e-commerce platforms have a stronger motivation to invest in trade-in subsidies.
Kerry Chen: 展望未来的发展路径呢, 我们认为以旧换新和二手消费的新质的发展将有更强的确定性, 可以成为更主流的消费方式。为此呢, 我们将进一步拓展回收和以旧换新的场景, 坚定地建设好, 建设好优质的到店与上门履约交付能力, 积极发展 AHS Recycle 品牌的影响力, 为用户带来更优质的回收和回收体验。
Mostly, our Apple-to-Apple trading model offers brands founded incentives for devices that were not eligible for the national subsidy. Other brand partners who collaborate with us have implemented similar promotional strategies. Brand owners and e-commerce platforms have a stronger motivation to invest in trading subsidies.
Jeremy Ji: Moving forward, trade-in and second-hand consumption will gain further traction as mainstream behaviors. We will expand recycling and trade-in scenarios, strengthen store and door-to-door fulfillment, amplify AHS Recycle's brand influence, and deliver superior value and user experiences.
Moving forward, trading and secondhand consumption will gain further traction. As mainstream behaviors, we will expand recycling and trading scenarios, strengthening our store.
Kerry Chen: OK, thank you.
Door-to-door fulfillment amplifies as it recycles brand influencers and delivers superior value and user experiences.
Okay, thank you.
Jeremy Ji: Operator, please take the next question.
Operator, please take the next question.
Operator: Thanks. Now, please go ahead.
Thanks.
Jeremy Ji: 王女士, 晚上好, 可以听到我这边吗?
Kerry Chen: 可以。
Jeremy Ji: Apple 官方业务, 还有海外业务在 Q2 有怎么样的一个调整, 然后对咱们业绩有怎样的影响啊, 以及呢, 能否分享一下在回收端咱们与哪些品牌厂商有一些新的, 比如说合作渠道方面的进展啊。我自己翻译一下啊, good evening management, congratulations for the strong results. I have two questions. The first one is, could you please share the adjustments you made to the Apple's official business and overseas business, and what impact did they have on your financial performance? The second question is, could you share some progress regarding new cooperation channels with brand manufacturers in the recycling sector? Thank you.
Good evening, management. Congratulations on the strong results. I have two questions. The first one: could you please share the adjustments you made to the Apple’s official business and overseas business? What impact did they have on your financial performance? The second question is: could you share some progress regarding new cooperation channels with brand manufacturers in the recycling factory? Thank you.
Kerry Chen: to the group's overall operating profit.
Okay.
Jeremy Ji: Our Apple trading business, which operates through Apple China's official website and directs flagship stores, has maintained profitability since March of last year. We have successfully absorbed the impact from the high revenue base established in the first quarter of 2024, which we previously discussed. We anticipate this business segment will contribute solid product revenue for the full year while generating positive operating profits for us.
Kerry Chen: 并在华为商城、小米商城等合作场景内取得了显著比例的回收和以旧换新的风口。今年我们除了主营的AHS Recycle门店、官网, JD.com, Apple官网以及旗舰店、支付宝渠道之外, 还拓展了荣耀、大疆、中兴等品牌厂商的官方合作。
All over trading business for 12, breakthrough Apple China's official website and direct flagship stores have maintained profitability since March of last year. We have successfully absorbed the impact from the high running base established. In the first quarter of 2024, which we previously discussed, we anticipate this business segment will contribute solid product revenue for the full year while generating positive operating profits for us.
For.
Jeremy Ji: Beyond Apple, we partner with high-quality domestic brands, capturing significant recycling and trading shares on platforms like Huawei Mall, Xiaomi Mall. We have established a wide array of mature C2B recycling scenarios, including AHS Recycle stores, JD.com, Apple official website, and flagship stores, and Alipay. This year, we tapped into Honor, DJI, and ZTE's official retail scenarios and built new partnerships. We embedded second-hand supply chain into new scenarios.
Beyond Apple, we partner with high-quality domestic brands, capturing significant recycling and trading shares on platforms like...
Kerry Chen: 优质的一手回收货源场景始终是我们战略的核心之一, 未来我们将持续探索更多的优质货源场景, 持续以高效的供应链能力为用户提供更好的回收体验和价格体验。
We have established a wide area of maturity to be recycling scenarios, including AHS stores, JD.com, the Apple official website, Flagship Source, and Alipay this year. We tap into Honor, DJI, and JP's official retail scenarios and build new partnerships. We invited the secondhand supply chain into new scenarios.
Go to the east.
Jeremy Ji: High-quality recycling supply sources remain a core strategic priority. We will actively identify better supplying scenarios and leverage efficient supply chain capabilities to enhance service experiences and price transparency for users.
Kerry Chen: 另外，关于海外业务，我们正在积极探索中，并且已经取得了有效的突破。我们期望下个季度能有更多的信息和大家分享。
High quality, recycling supplies, sources, remain a core strategic priority. We will actively identify better supplying scenarios and leverage efficient supply, chain capabilities to enhance service experiences and price. Transparency for users.
Jeremy Ji: In addition, regarding the international business, we are making active operational explorations. We look forward to providing more color on our progresses next quarter.
For.
Kerry Chen: OK, 谢谢。
Jeremy Ji: Thank you.
The addition regarding the international business we are making active operation Explorations so we look forward to provide more color on our progresses next quarter.
Thank you.
No.
It's time.
To manage.
Operator: Thank you. Thank you all again for joining us. The replay of today's call will be available on our website shortly, followed by a cracked transcript when ready. If you have any additional questions, please feel free to email us at ir@ajwu.com. Have a nice day!
Thank you. Thank you. All again for joining us. The replay of today's call will be available on our our website shortly followed by a practiced transcript already. If you have any additional questions, please feel free to email us at ir.com, have a nice day.