Q3 2025 ATRenew Inc Earnings Call
We are in a listen only mode. It will be hosting a question and answer session. After management's prepared remarks.
Please note today's call is being recorded I would now like to turn the conference over to your first speaker today, Mr. Jeremy <unk> head of corporate development. Please go ahead Sir.
[Company Representative] (ATRenew Inc.): We remain confident in PJC Marketplace's long-term monetization potential, not only because of its mature industry infrastructure, but also because of its flexibility to innovate, expand user reach, optimize services, and create more value over time.
Thank you Hello, everyone and welcome to <unk> third quarter 2025 earnings Conference call.
Speaker #3: Looking closer at our third quarter performance within our one key business, we have successfully expanded our product acquisition through trade-in programs and our Ars Recycle brand.
Speaking first today is Curt Chen, our founder Chairman and CEO and he'll be followed direction I was CFO.
Kerry Chen: 第二，B2C拍拍平台的用户服务与收费能力再次实现同比提升。我们在保持POP开放平台服务能力的同时，进一步加强了为中小商家提供便捷的寄卖服务，并以此同比提升了B2C拍拍平台的综合收费率。在拍拍寄卖模式下，中小二手商家不再需要为管理商品、店铺运营、流量管理与售后等事项担忧，由拍拍团队一站式标准化地提供运营解决方案。今年三季度，拍拍寄卖模式的GMV同比增长180%，收费率在高个位数水平区间健康向上发展，体现了中小二手商家对我们服务价值的肯定。
After that we'll open the call to questions from the analysts.
Speaker #3: We have effectively leveraged our proprietary combined refurbishment capabilities to deliver premium curated products to consumers through retail channels, including Asia Selection and PyPI.
The third quarter of 2025 financial results were released earlier today the earnings press release and slides accompanying this call are all available at our IR website.
Speaker #3: This strategy delivered impressive results with compliance, refurbished product revenue surging 102% year over year in the third quarter, one two revenue sustaining robust growth of over 70% year over year, and the one P2 two proportion expanding to 36.4%.
I got to pay to renew duck call there'll also be a transcript following this call for your convenience.
For today's agenda Cary will share his thoughts of our quarterly performance and business strategy, followed by Rex who will address the financial highlights.
Speaker #3: We believe that strengthening our retail capabilities will enhance our pricing power in the recycling end and effectively strengthen end-to-end value throughout the industry's supply chain.
Cary Iridex will participate during the Q&A session.
Please note our safe Harbor statements 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.
Any forward looking statements that management makes on this call are based on assumptions as of today and that actually renew does not take any obligations to upgrade our assumptions of these statements.
[Company Representative] (ATRenew Inc.): Second, in B2C, PaiPai's user service and monetization capabilities achieved another year-over-year improvement. While maintaining POP open platform functionality, we further strengthened consignment services for small and mid-sized merchants. Under this model, merchants no longer need to worry about product management, store operations, traffic, or after-sales, as PaiPai provides standardized end-to-end operational solutions. In Q3, GMV for consignment grew 180% year-over-year, and take rate continued to trend upward in the high single-digit range, reflecting strong merchant recognition of our service value.
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.
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On a year over year basis.
I'd now like to turn the call over to Kerry for business and strategy update.
Kerry Chen: 第三，轻资产平台模式的多品类回收服务保持快速发展，回收交易额同比增长95%，继续提升了用户服务体验。截止9月末，我们在878家爱回收自营店与131家爱回收加盟店开通了多品类回收服务，服务的地理范围进一步扩大。新开通多品类能力的门店需要2到3个月可以形成稳定的回收业绩。分摊前端与履约费用后，多品类服务平均每月为单店产生约7000元贡献利润。以实际的运营成果优化爱回收的单店模型，支持爱回收的获客与回收复购，并支持我们循序渐进地开出更多优质的门店。
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Speaker #3: And the supply side we focused on building stronger customer awareness and recognition from the Ars brand recycle . Others through the Ars official website , maintained a solid 30% growth , while JD.com trade in program continues to be a preferred choice for users looking to recycle and upgrade their devices .
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Hello, everyone and thank you for joining <unk> third quarter 2095 earnings Conference call. We are pleased to update you on our strengthened operating results and share the progress of our three stage development strategy and address key topics of interest.
Speaker #3: We also significantly expanded our offline fulfillment capabilities, building customer trust through personalized face-to-face services that offer both convenient and competitive pricing.
Speaker #3: Our Ars store network grew to 2195 locations across both Self-operated and joint operated sites , supplemented by a workforce of 1962 . Team members who either provide full time or part time Tudor service .
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[Company Representative] (ATRenew Inc.): Third, our asset platform for multi-category recycling services sustained rapid growth, with transaction volume increasing by 95% year-over-year, and user experience continues to improve. As of September, 878 self-operated stores and 131 franchisee locations had activated multi-category capabilities, expanding geographic coverage. Newly enabled stores typically stabilize performance within two to three months. After allocating front-end and fulfillment costs, multi-category services deliver an average monthly contribution profit of RMB 7,000 per store, optimizing the unit economics of AHS stores. This model supports customer acquisition, repeated orders, and the disciplined rollout of additional high-quality stores.
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In the third quarter, we once again achieved new breakthroughs across multiple operational metrics.
Net revenue reached a new record high of $5 15 billion RMB, representing 21% year over year for us our one P product revenue sustained strong growth momentum rising 28.
Kerry Chen: 在效率和体验提升方面，我们持续拥抱自动化和AI技术。在业务快速增长的过程中，回收端的自动化质检工具与运营中心处置端的自动化质检系统帮助我们实现了规模效应，并优化了履约费用率。除了在上次业绩会上介绍AI提升二手回收过程的商品自动识别能力，我们也在用户的客服咨询、查询、培训等环节上线AI应用，进一步提升用户体验，为大促等业务高峰预备能力。
100% year over year to $4 73 billion RMB, one three platforms, our restaurant increased one 6% year over year to 420 million RMB demonstrating continued healthy growth.
non-GAAP operating profits reached a record high of 140 million RMB <unk>.
34, 9% year over year with our non-GAAP operating profit margin, achieving 2.7% demonstrating steady improvement both year over year and quarter over quarter.
[Company Representative] (ATRenew Inc.): We continue our strategic adoption of automation and AI technologies to drive excellence in operation and experience. As our business scales, automated inspection systems at both the recycling and operational centers generate significant economies of scale and help optimize our fulfillment expense ratio. Beyond the AI-powered automation inspection capabilities for recycling of second-hand luxury goods discussed last Q4, we have also deployed AI applications in customer service, inquiry handling, and training. These initiatives are enhancing the user experience and building robust capacity to handle peak demand periods, such as major promotional events.
Each quarter, we strategically prepare for the mid to late September launch of flagship devices from leading manufacturers, while building operational capacity to support uptake in new device shipments throughout October providing users with bathroom are we talking and trade in experiences.
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Kerry Chen: 以上是我们对于第三季度经营结果的复盘。另外，我们也希望借助本次电话会的机会，为各位投资者和分析师继续分享未来两到三年的三级发展战略。
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[Company Representative] (ATRenew Inc.): That concludes our review of Q3 operating results. Next, we'd like to take this opportunity to continue sharing our three-stage development strategy for the next two to three years.
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Kerry Chen: 第一级，继续加强二手手机3C能力的基本盘。万物新生已经是中国最大的二手手机3C交易与服务平台。我们整合了产业链的C2B加B2B加B2C的环节，形成了行业领先的端到端能力，并将用户和产业价值最大化。未来，我们将从四个方面继续巩固我们的基本盘：一、加强场景能力，加强与京东和苹果等品牌厂商新机销售场景的以旧换新协调、协同，低成本高效率地获取一手货源；二、加强交付能力，通过大前端全国爱回收门店与爱回收的上门小哥的交付能力，保障更好的用户体验；三、加强2C的销售能力，通过合规翻新，更多的比例商品能够2C零售，实现端到端的闭环，提升产业链的价值；四、加强技术能力，以自动化和AI技术为核心，长期发展路径中进一步释放规模效应。
Looking closer to our third quarter performance within our <unk> business, we have successfully expanded our product acquisition through training programs and our AA transfer recycle Brent we have effectively leveraged our proprietary combined with furbished brand capabilities to deliver a premium product to consumers.
So retail channels, including Asia selection in by pipe.
Strategy delivered impressive results with complying with furbished product revenue surging, 102% year over year in the third quarter, when PTC revenue sustaining robust growth of over 70% year over year, and the one pizza and see to see proportionate expanding to 36, 4%.
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[Company Representative] (ATRenew Inc.): The first stage is to continue strengthening the core capabilities of the second-hand consumer electronics. ATRenew has already become China's largest platform for second-hand consumer electronics transactions and services. We have integrated the entire industry chain across C2B, B2B, and B2C, creating industry-leading end-to-end capabilities and maximizing value for both users and the industry.
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[Company Representative] (ATRenew Inc.): Going forward, we will reinforce this foundation in four ways: first, by enhancing scenario capabilities and deepening trade-in collaboration in new device sales channels with partners such as JD.com, and Apple, enabling low-cost, high-efficiency access to first-hand supply; second, by strengthening fulfillment capabilities through our nationwide AHS store network and two-door service teams to ensure a superior user experience; third, by enhancing the capabilities of retail sales through compliant refurbishment, and a higher proportion of retail sales to achieve an end-to-end loop and improve supply chain value; and fourth, by advancing technology capabilities, leveraging automation and AI technology to unlock scale efficiencies over the long term.
On the supply side, we focused on building stronger customer awareness and recognition from the HIV recycled rent others through the air transfer official website maintained a solid 30% growth or J D. Dot com trade in program continues to be a preferred twice for users looking to recycle and upgrade their devices.
Also significantly expanded our offline fulfillment capabilities building customer trust through personalized face to face or is it that offer both convenient and.
Pricing.
Each has its store network through to 2000 and 195 locations.
Self operated and joint offering five supplemented by a workforce of 1000 906000 team members, who either provide full time more part time to Northstar at.
Kerry Chen: 第二级，加速发展爱回收国民第一回收品牌，结合爱回收门店交付能力，做好轻资产平台模式的多品类回收服务，提升用户对爱回收服务的使用频次。同时，爱回收的生态企业爱分类正在各大城市进入广泛的社区场景。基于高频的社区场景，爱回收联合更多的消费品品牌，共同做好返航新生的活动，以绿色激励呼吁更广泛的用户参与到二手回收与循环经济，并受益于爱回收品牌所倡导的可持续消费方式。做好回收心智，以高频服务带动低频服务，以回收促进消费。我们将继续深耕属于爱回收的差异化优势。
This comprehensive approach ensures that recycling and trading services are easily accessible to customers.
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[Company Representative] (ATRenew Inc.): The second stage is to accelerate the growth of AHS Recycle as China's leading recycling brand. By combining our in-store-based fulfillment capabilities with an asset-light platform model for multi-category recycling, we aim to increase user engagement and frequency of service usage. At the same time, Lovery, the ecosystem extension of AHS Recycle, is expanding into extensive community scenarios across major cities. AHS Recycle brand will partner with more consumer brands to promote revive initiatives based on high-frequency scenarios, using green incentives to encourage broader participation in recycling and the circular economy across China, so that everyone can benefit from the sustainable consumption model we advocate. With this, we strengthen consumer awareness of our recycling capabilities, improve our active user base of consumer electronics with high-frequency daily grain disposal activities, and promote a closed loop of grain recycling and grain consumption.
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In top tier cities, we are positioning HRS recycle at China, leading recycled brand.
Promoting ashok recycled ferreting through our self operated stores, we have extended our asset light truck platform to include high rate of categories like luxury goods go.
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And Premier league or creating more user value, while improving store unit economy in mid to lower tier cities, we partner with local merchants, who understand their markets. How can that evolved from single store franchisees into the city partners with multi with multiple AA transferring stores with.
We support these partners with standardized quality inspection and pricing for all of your store traffic and social media guidance, you'll be with local customer basis. This collaboration drives mutual success strongest store performance enables franchisees to expand locally and scale their businesses, creating a five well in fact that benefits everyone.
[Company Representative] (ATRenew Inc.): We are dedicated to building differentiated competitive edges for AHS Recycle.
Kerry Chen: 第三级，筹备国际化战略，讲好中国特色的绿色故事。我们深耕中国市场15年，积累了丰富的二手手机3C的标准化能力、自动化能力以及平台能力。随着国内回收渗透率的快速提升，越来越多的二手手机出口到海外，这已经成为了一个确定的趋势。一方面，我们积极参与国行手机出口相关的标准制定与跨境互认，例如参加CQC中国质量认证中心与ISO国际化国际标准化组织合作的二手商品跨境出口标准专家组的研讨。另一方面，把相比国内热门型号更早期的优质国行货源出口，通过香港等二手手机3C的全球自由贸易中心，满足海外用户的需求。目前单月销量已经破万台。未来，随着国内回收渗透率的进一步提升，出口规范的进一步清晰，我们相信会有更多的货源出口到海外，并且期待把高效的平台能力复制到海外，打造一款国际版的拍机囊交易平台，链接全球二手手机3C货源与全球商家。同时，我们也将适时结合战略合作伙伴的国际化布局，提供解决方案输出，共同探索更广阔的海外市场的C端机遇。
China's leading recycle brand.
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Our commitment to win win collaboration with merchants is evident in the performance of our platform.
Promoting AHS. Recycle everything through our self operated stores. We've extended our asset like platform to include high value categories like luxury goods, gold and premium liquor creating more user value. While improving store unit economics in mid to lower tier cities, we partner with local Merchants who understand their markets, helping them involved from single store franchisees into City partners with multi with multiple AHS stores.
In the third quarter service revenue maintained strong double digit growth with our overall take rate of 489%.
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We support these partners with standardized quality inspection and pricing tools, official traffic and social media, and guidance to build local customer bases. This collaboration drives mutual success, strengthens store performance, and enables franchises to extend locally and scale their businesses. Creating a 5 will affect that benefits everyone.
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Quarter service revenue maintains strong double-digit growth with an overall tech rate of 4.89%, breaking this down across three key platform segments.
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[Company Representative] (ATRenew Inc.): The third stage is to prepare for an international strategy that shares China's grain story globally. Over the past 15 years, we have built deep expertise in standardization, automation, and platform capabilities for second-hand consumer electronic products. The rapid increase in domestic recycling penetration is driving a growing flow of used smartphones to overseas markets, representing a clear trend. On the one hand, we are actively engaging in the development of export standards and international mutual recognition for China market products. For instance, we participate in the expert committee for the cross-border export standards for second-hand goods, a joint initiative of the China Quality Certification Center and the International Organization for Standardization. On the other hand, we are channeling high-quality China-sourced devices of earlier generations into the international market.
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First in B to B P. J T marketplace continues to provide an inclusive trading environment for small and medium sized merchants by the end of the quarter. The number of contracted merchants on the platform quickly surpassed 137 million.
Of course, driven by two factors on one hand, the number of salaries representing product suppliers continue to grow rapidly. Thanks to J P marketplace strong infrastructure.
<unk> and merchant services capabilities.
The other hand with the rapid on boarding of small five marshawn, such as Don said emerging the specialty by our model I mean, we accelerated supply chain Hoffman for these merchants to ensure a positive for fire.
[Company Representative] (ATRenew Inc.): Hong Kong, among others, as a key global trade hub for used electronics, facilitates this flow, allowing us to successfully address the demand abroad. Recently, the monthly export of China-sourced devices has exceeded 10,000 units. Looking forward, as domestic recycling penetration rates increase and standards become further clarified, we believe there will be more exports. We also look forward to replicating our efficient platform capabilities abroad to create an international version of the PJT Marketplace, connecting global sources of pre-owned consumer electronics with global merchants. Simultaneously, we will, at the appropriate time, integrate with the international layouts of our strategic partners to provide solutions, and jointly explore the broader retail opportunities in the global markets.
During this expansion we temporarily allowed more flexible satellites and made a strategic adjustments to P. J P marketplace take rate, we remain confident in P. J D market place long term monetization potential.
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First in B2B, BJT Marketplace continues to provide an inclusive trading environment for small and medium-sized merchants by the end of the quarter. The number of contracted merchants on the platform quickly surpassed 1.37 million. This was driven by two factors. On one hand, the number of sellers representing product supplies continues to grow rapidly, thanks to BJT Marketplace's strong infrastructure and merchant service capabilities. On the other hand, with the rapid onboarding of small-sized media merchants, such as those leveraging the specialty buyer model of the win, we accelerated supply chain enhancement for these merchants.
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Kerry Chen: 展望四季度与2026年，我们对二手行业的健康发展以及集团的业绩的快速增长保持信心。
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[Company Representative] (ATRenew Inc.): Looking forward, 2026, we remain confident in the healthy development of the second-hand industry and the strong growth trajectory of our company.
To ensure a positive buyer experience, we temporarily allowed more flexible post-sale rights during this extension and made a strategic adjustment to project Mark to Place take rate. We remain confident in PJD Marketplace's long-term monetization potential, not only because of its maturing industry and infrastructure but also due to its flexibility to innovate, expand user reach, optimize services, and create more value over time.
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Kerry Chen: 补充一项国际。今年，万物新生入围享有国际盛誉的环保奖项，为地球奋斗奖。该奖项由英国威廉王子发起，在五个领域分别评选对修复地球具有重要贡献的组织。万物新生凭借在二手产品交易与服务领域对循环经济的贡献的实践，在无废世界领域获得了组委会高度认可。未来，我们将保持初心，秉承让闲置不用都物尽其用的使命，为中国和全球的循环经济事业做出更多贡献。
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Second in B to C. iPad users and monetization capabilities achieved another year over year improvement, while maintaining pop open platform functionality. We further strengthened the confinement services for small and medium sized merchants.
B2c p p.
And then as model merchants no longer need to worry about product management store operations traffic or after yourself type hypervisor standardized end to end operational solutions.
The third quarter, Jeremy full confinement route 180% year over year and take rate continue to trend upward in the high single digit range, reflecting strong merchant in recognition of our service value.
[Company Representative] (ATRenew Inc.): We are also proud to share an international recognition. This year, ATRenew is the finalist for the prestigious Earthshot Prize, a global environmental award founded by His Royal Highness Prince William. The prize recognizes outstanding contributions across five categories aimed at repairing our planet. ATRenew was highly commended by the committee in the Build a Waste-Free World category for its practices in advancing the circular economy through pre-owned product transactions and services. Moving forward, we remain committed to our founding mission to give a second life to idle goods, and we'll continue to contribute to the circular economy in China and globally.
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Kerry Chen: 下面请 CFO Rex Chen 对财务数据进行解读。
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User service and monetization capabilities achieved another year-over-year improvement while maintaining pop open platform functionality. We further strengthened confinement services for small and midsize merchants, and there is a model where merchants no longer need to worry about product management, store operations, traffic, or after sales, as Pii provides standardized end-to-end operational solutions. In the third quarter, GMV for confinement grew 180% year-over-year, and take rates continue to trend upward in the high single-digit range, reflecting strong merchant recognition of our service value.
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[Company Representative] (ATRenew Inc.): Now, I'd like to turn the call over to CFO Rex Chen for financial updates.
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Rex Chen: 各位投资者和分析师，大家好。我们很高兴与各位分享公司在2025年第三季度取得的亮眼财务表现。三季度我们持续精准服务以旧换新场景，建设履约交付能力、供应链能力，加强爱回收的品牌力。
Third our I've asked a lot platform for market Cashmere recycling services sustained rapid growth with transaction volume, increasing by 19, 5% year over year and music tour and continues to improve as of September 878, self operated stores and 171 franchisee locations had to activate.
[Company Representative] (ATRenew Inc.): Hello everyone. We are pleased to report outstanding financial performance in the third quarter of 2025. We continue to capture opportunities from targeted trade-in scenarios, enhanced fulfillment and supply chain capabilities, and an elevated AHS Recycle brand presence.
Multi category capabilities, expanding geographic coverage newly enabled stores typically stabilized performance within two to three months.
Rex Chen: 第三季度营收实现指引高端，达到51.5亿元，同比增长27.1%。能GAAP净利润超1.4亿元，同比增长34.9%。
I'll start getting firsthand and fulfillment costs lots of.
Category services deliver average monthly contribution profit of 7000 RMB per store.
[Company Representative] (ATRenew Inc.): Total revenue in the third quarter was at the high end of our guidance, increasing by 27.1% to RMB 5,150 million. Adjusted operating income grew by 34.9% to over RMB 140 million.
Optimizing the unit economy of Amtrust stores.
so,
This model supports customer acquisition related orders and the discipline and the rollout of additional high quality stores.
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Rex 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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[Company Representative] (ATRenew Inc.): 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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Rex Chen: 第三季度集团总收入的增长动力持续来自产品收入的稳健提升，产品收入增长28.7%至47.3亿元，主要得益于公司线上渠道二手消费电子产品销售的增长。
95% year-over-year growth and user experience continue to improve as of September. 8,784 operated stores and 131 franchisee locations have activated mult-category capabilities, expanding geographic coverage. Newly enabled stores typically stabilize performance within 2 to 3 months after allocating front-end and fulfillment costs. Multi-category services deliver an average monthly contribution profit of 7,000 RMB per store.
Optimizing the unit economics of AHS stores.
[Company Representative] (ATRenew Inc.): In the third quarter, total revenue growth was primarily driven by continued net product revenue growth. Net product revenues increased by 28.7% to RMB 4,730 million, largely attributable to the growth in online sales of pre-owned consumer electronics.
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This model supports customer acquisition, repeated orders, and the discipline to roll out additional high-quality stores.
Adoption of automation and AI technologies to drive excellence in operational not an experience as our business scales automated inspection systems at both the restocking and the operational centers generate significant economies of scale and how optimize our fulfillment expense ratio yeah on the AI powered automation factor.
Rex Chen: 第三季度服务收入为4.2亿元，同比增长11.6%，主要得益于拍拍业务以及平台模式开展的多品类回收业务贡献的服务收入增长。三季度平台综合收费率为4.89%。本季度多品类贡献近5,300万元的服务收入，占服务收入12.5%。
Capabilities for recycling of secondhand luxury spa last quarter. We have also deployed AI applications and customer service inquiry handling and training initiatives are enhancing the user experience and building robots capacity to handle peak demand period, such as a major promotional events.
[Company Representative] (ATRenew Inc.): Net service revenues were RMB 420 million in the third quarter, representing an increase of 11.6%. The increase was largely driven by the PJC Marketplace and multi-category recycling business. The overall take rate of our marketplace was 4.89% for the third quarter of 2025. During the quarter, our multi-category recycling business contributed nearly RMB 53 million of revenue, accounting for 12.5% of service revenue.
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That concludes our review of third quarter operating results.
Rex Chen: 在运营费用方面，我们主要讨论能GAAP口径费用分析，以展示管理团队视角的费用趋势。关于GAAP和能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。
We'd like to take this opportunity to continue sharing our street a three stage development strategy for the next two to three years.
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[Company Representative] (ATRenew Inc.): 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. The reconciliations of GAAP and non-GAAP results are available in our earnings release and the corresponding Form 6K furnished with the US SEC.
Technologies to drive excellence in operation and experience as our business scales automated inspection systems at both the recycling and operational centers generate significant economies of scale and help optimize our fulfillment centers. Beyond the AI-powered automation inspection capabilities for recycling of secondhand luxury goods, discussed last quarter, we have also deployed AI applications in customer service inquiry handling and training. These initiatives are enhancing the user experience and building robust capacity to handle peak demand periods such as major promotional events.
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Rex Chen: 上平成本增加26.3%至40.9亿元，与产品销售的增长一致。我们EP业务的毛利率为13.4%，而上年同期为11.7%。EP毛利率的改善主要得益于我们发挥CQB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。第三季度EP2C占比及产品收入中零售的收入占比达到了36.4%，去年同期为26.4%。同时，海外业务经营效率逐渐优化，规模及业务毛利率不断改善。
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That concludes our review of the third quarter.
Results. Next
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[Company Representative] (ATRenew Inc.): Merchandise costs increased by 26.3% to RMB 4,090 million, in line with the growth in product sales. Gross profit margin for our 1P business was 13.4%, compared with 11.7% 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 1P2C revenue accounting for 36.4% of product revenue in the third quarter of 2025, up from 26.4% in the same period last year. Meanwhile, our international business operation efficiency has improved, with continued improvement in both scale and gross margins.
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The first stage is to continue strengthening our core capabilities of the secondhand and consumer electronics. If you renew has already become China's largest platform for second hand, consumer electronic transactions and services, we have integrated things high industry Chang across C to B, b and B to C creating industry.
Leading end to end capabilities and maximizing value for both users and the industry going forward, we will reinforce our foundation in four ways.
First by housing scenario capabilities and deep named training collaboration and knew the lifestyle channels with partners, such as JD com and Apple, enabling low cost high efficiency access to firsthand supply.
2.
And by strengthening fulfillment capabilities through our nationwide Asia store network and our service teams to ensure a superior user experience.
Rex Chen: 履约费用增长25.9%至4.4亿元，能GAAP履约费用增长25.6%至4.3亿元。能GAAP履约费用增长主要原因有：一、与2024年同期相比，回收和交易量的增加导致了利和物流费用增加；二、2025年第三季度拓展线下交付网络和运营能力，运营费用相应增长；能GAAP履约费用率从8.5%下降至8.4%。
I am hoping that capability is off retail sell through combined refurbishment and the high proportion of retail sales to achieve an end to end loop and improve supply chain value and fourth by advancing technology capabilities, leveraging automation and AI technology to unlock scale efficiencies over the long term.
The first stage is to continue translating the core capabilities of the second hand. Customer Electronics, if you really has already become China's largest platform for secondhand consumer electronics transactions and services.
We have integrated the entire industry chain across C2B, B2B, and B2C, creating industry-leading end-to-end capabilities and maximizing value for both users in the industry going forward. We will reinforce this foundation in four ways.
[Company Representative] (ATRenew Inc.): Fulfillment expenses increased by 25.9% to RMB 440 million. Non-GAAP fulfillment expenses increased by 25.6% to RMB 430 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 third quarter of 2025. Non-GAAP fulfillment expenses as a percentage of total revenues decreased to 8.4% from 8.5%.
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Rex Chen: 销售费用增加15.4%至3.6亿元，能GAAP销售费用增加40.6%至3.6亿元，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。能GAAP销售费用率从6.3%上升至7%。
A superior is experienced third by enhancing the capabilities of retail sales through compliance refurbishment and a higher proportion of retail sales to achieve an end-to-end loop and improve supply chain value. We will advance technology capabilities by leveraging automation and AI technology to unlock scale efficiencies over the long term.
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The second stage is to accelerate the growth of Amtrust recycle as China's leading recycling brand.
[Company Representative] (ATRenew Inc.): Selling and marketing expenses increased by 15.4% to RMB 360 million. Non-GAAP selling and marketing expenses increased by 40.6% to RMB 360 million. The increase was primarily driven by higher advertising and promotional campaign-related spending, as well as an increase 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 7.0% from 6.3%.
Binding.
Store based fulfillment capabilities with our platform model from Arctic Cat recycling, we aimed to increase user engagement and frequency of service usage at the same time love rate the ecosystem extend shelf antitrust recycle it is expanding into extensive community scenarios across major cities.
And Air Trust recycled branded well partner with more consumer brands to promote revive initiatives based on high frequency scenarios, using bringing incentives to encourage broader participation in recycling in the circular economy across China. So that everyone can benefit from the sustainable consumption model we advocate.
Rex Chen: 管理费用上升6.9%至7,410万元，能GAAP管理费用增加17.7%至6,520万元，主要由于附加税及咨询服务费增加。能GAAP管理费用率从1.4%下降至1.3%。
The second stage is to accelerate the growth.
This week's Dresden consumer awareness of our recycling capabilities improve our active user base of consumer electronics with high frequency daily Green disposal activities and promote a closed loop of green recycling and grain consumption.
[Company Representative] (ATRenew Inc.): General and administrative expenses increased by 6.9% to RMB 74.1 million. Non-GAAP G&A expenses also increased by 17.7% to RMB 65.2 million, primarily due to an increase in tax and surcharges, as well as an increase in consultant fees. Non-GAAP G&A expenses as a percentage of total revenues decreased to 1.3% from 1.4%.
We are dedicated to building your fresh air and it's competitive edges for air transport cycle.
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By combining our in-store based fulfillment capabilities with an asset-like platform model for multi-category recycling, we aim to increase user engagement and frequency of service usage. At the same time, the ecosystem, an extension of AHS Recycle, is expanding into extensive communities and scenarios across major cities.
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Rex Chen: 研发费用上升19.5%至6,380万元，能GAAP研发费用上升23.2%至6,110万元，主要由于能源成本增加。能GAAP研发费用率保持1.2%不变。
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[Company Representative] (ATRenew Inc.): Technology and content expenses increased by 19.5% to RMB 63.8 million. Non-GAAP technology and content expenses increased by 23.2% to RMB 61.1 million as well. The increase was primarily driven by elevated personnel expenses. Non-GAAP technology and content expenses as a percentage of total revenue remained stable at 1.2%.
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Ahas, AHS Recycle brand will partner with more consumer brands to promote revive initiatives based on high frequency scenarios, using green incentives to encourage broader participation in recycling and the circular economy across China. This will allow everyone to benefit from the sustainable consumption model we advocate. With this, we stress consumer awareness of our recycling capabilities, improve our active user base of consumer electronics with high frequency daily green disposal activities, and promote a growth loop of green recycling and green consumption. We are dedicated to building new differentiated competitive edges for AHS Recycles.
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Rex Chen: 利润层面，第三季度的能GAAP经营利润超1.4亿元，去年同期能GAAP经营利润为1亿元。本季度能GAAP经营利润率为2.7%，去年同期为2.6%，较上年同期增长16个基点。
So do you see that trend towards more utilization.
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[Company Representative] (ATRenew Inc.): As a result, our non-GAAP operating income was over RMB 140 million in the third quarter of 2025, compared to non-GAAP operating income of RMB 100 million in the third quarter of 2024. Non-GAAP operating profit margin was 2.7% for this quarter, compared to 2.6% in the third quarter of 2024, representing an increase of 16 basis points.
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Rex Chen: 第三季度我们使用了约210万美元回购近50万股ADS。我们会持续评估集团整体利润的达成情况，在适当的时机更新股东回报方案。
What do you what would you do you're going to do if I'm not sure, which will bolt on kind of a one quarter how it works.
So you'd want to.
The first stage is to prepare for an international stress shared kind of green thorough globally.
[Company Representative] (ATRenew Inc.): During the third quarter of 2025, we repurchased a total of approximately 0.5 million ADSs for approximately $2.1 million. We will continue to evaluate our overall profitability and update the shareholder return programs at the appropriate time.
For the past 15 years, we have deep expertise and standardization automation and platform capabilities for secondhand and consumer electronic products.
The rapid increase in domestic recycling penetration is driving a growing flow of youth smartphone to overseas markets, representing a clear trend on the one hand, we are actively engaging in the development of exports senders and international mutual recognition from China market products.
Rex Chen: 截至2025年9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营收暂缓合计25.4亿元。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。
And we participate in the expert committee for the cross border at Forest and our four secondhand goods a joint initiative of the China quality certification Center and the international organization for standardization.
[Company Representative] (ATRenew Inc.): As of 30 September 2025, cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers totaled CNY 2.54 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.
Other hand, we are channeling high quality, China for Cys as of earlier generation into the international market.
Rex Chen: 关于2025年第四季度的指引，我们预计总收入将在60.8亿元至61.8亿元，对应同比增长25.4%至27.4%。关于2025年全年业绩指引，我们预计总收入将在208.7亿元至209.7亿元，对应同比增长27.8%至28.5%。以上指引请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。
The third stage is to prepare for an international stress team that shares China's green story globally. Over the past 15 years, we have built deep expertise in standardization, automation, and platform capabilities for secondhand consumer electronic products.
Among others as a key global trade hot for using electronic facilitates that slow, allowing us to successfully address the demanding a lot recently the monthly export off trade off for US. The wife is has exceeded 10000 units looking for asking and I think we're stuck with penetration rates in cranes and send them home for their cloud.
The rapid increase in domestic smartphone penetration is driving a growing flow of used smartphones to overseas markets, representing a clear trend.
We are fine with me there will be more exports. We also look forward to replicating already efficient platform capabilities go abroad to create an international version of the P. J T marketplace connecting global sources, all crown in consumer electronics with global merchant.
[Company Representative] (ATRenew Inc.): Now, turning to the business outlook. For the fourth quarter of 2025, we anticipate total revenues to be between RMB 6,080 million and 6,180 million, representing a year-over-year increase of 25.4% to 27.4%. For the full year 2025, we estimate total revenues to be between RMB 20.87 billion and 20.97 billion, representing a year-over-year increase of 27.8% to 28.5%. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change.
A drawing initiative of the China Quality Certificate Certification Center and the International Organization for Standardization.
Simultaneously, we will at that at the appropriate time integrate with the internationally out of our strategic partners to provide solutions and jointly explore the broader retail opportunities in the global markets.
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Let me say, we remain confident in the housekeeping development off the secondhand industry and a strong growth trajectory of our company.
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Rex Chen: 以上是我们业绩的重点分享，欢迎各位提问交流。
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[Company Representative] (ATRenew Inc.): This concludes our prepared remarks. Operator, we are now ready to take questions.
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On the other hand, we are channeling high-quality, China-source devices of earlier generations into the international market, Hong Kong among others, as a key global trade hub for youth electronics. This facilitates the flow, allowing us to successfully address the demand abroad recently. The monthly export of China-source devices has exceeded 10,000 units. Looking forward, as domestic recycling penetration rates increase and standards become further clarified, we anticipate that there will be more efforts. We also look forward to replicating our efficient platform capabilities abroad to create an international version of the PJT marketplace, connecting global sources of free consumer electronics with global merchants.
Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. When asking a question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. At this time, we'll pause momentarily to assemble our roster. The first question will come from Wang Zhao with CICC. Please go ahead.
Okay, John I'm, telling you Ingo, we the ones a fuzzy tell what we're going to use some dips and yet they show footage or somebody else who's entitled to one which is one can get Oh, so time to enjoy your food and you went into the government.
So, we'll definitely, at the appropriate time, integrate with the international layouts of our strategic partners to provide solutions and jointly explore the broader retail opportunities in the global markets.
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We are also proud to share and international recognition. This year, Eddie renew is a finalist for the prestigious Archrock project a global environmental was founded by his Royal Highness, playing squinting surprise recognizes outstanding contributions across five categories Amdocs Repot repairing our planet.
296. We remain confident in the healthy development of the second-hand industry and the strong growth trajectory of our company.
Wang Zhao: next year? I will translate myself. Thanks for taking my questions. My first question is, we know that, recently there have been some changes to the national subsidy policies. Could you please share the impact on your business? The second one is, could you please give us more color about outlook for Q4 and next year? Thank you.
It's really anyone was highly recommended by the committee in the Butte wildfire World category for its practices in advancing the circular economy through pre owned product transaction censor endless.
Moving forward, we remain committed to our founding mission off to give us that kind of life. So I don't lose and well continue to contribute to the circular economy in China and globally.
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Rex Chen: 呃，非常感谢提问啊。我来回答一下。呃，第一个问题呢是，首先关于国补啊，这是一个很好的问题啊。我们可以围绕国补分析一下我们EP业务的增长驱动。以旧换新的国家补贴直接促进了新机的销售，但享受国补的新机的售价不超过6,000元。所以大量用户在购买高端机型的时候是没有使用国补的。考考虑到我们自营业务的主要品牌集中在高端机，因此在今年的EP业务中，核销国补的以旧换新订单的占比其实是有限的。但是国补却有效地驱动了二手手机3C行业的升级。在今年的以旧换新趋势中，我们因为有成熟的以旧换新的供应链，能够与京东共同打造行业最佳的以旧换新的体验，并拉通苹果、华为、小米等品牌厂商，通过救机抵折的方式，结合电商与品牌厂商在以旧换新场景下发布的专项的补贴，帮助更多的用户以更低的价格完成了回收换新。
Financial update.
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Hello, everyone. We are pleased to report outstanding financial performance in the third quarter of 21, five we continue to capture opportunities from targeted trade in scenarios in house fulfillment and supply chain capabilities and elevated age has recycled brand presence.
We are also proud to share an international recognition this year. ATRenew is a finalist for the prestigious Earthshot Prize, a global environmental award founded by His Royal Highness Prince William. The prize recognizes outstanding contributions across five categories aimed at repairing our planet. ATRenew was highly recommended by the committee in the Build A Waste-Free World category for its practices in advancing the circular economy through pre-owned product transactions and services.
Moving forward, we remain committed to our funding mission of giving a second life to all idol groups. We will continue to contribute to the circular economy in China and globally.
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Total revenue in the third quarter was at the high end of our guidance and Crazy by 27, 1% to 5000 150 million RMB adjusted operating income grew by 34, 9% to over 140 million RMB.
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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.
[Company Representative] (ATRenew Inc.): Thank you for your question. The first question is about national subsidy. That's a very good question. Let me address it by analyzing the growth drivers of our 1P business in the context of the national subsidy. The national trade-in subsidy directly promotes the sales of new devices. However, these subsidies are only applicable to new devices priced under RMB 6,000. Therefore, a significant portion of consumers purchasing premium models do not utilize these subsidies. Given that our 1P business primarily focuses on premium brands, the proportion of trade-in orders utilizing national trade subsidies was actually quite limited this year. Nevertheless, the national subsidies have effectively stimulated upgrades within the pre-owned consumer electronics industry. Benefiting from our mature trade-in supply chain this year, we collaborated with JD.com to create the best-in-class trade-in user experience.
Hello everyone. We are pleased to report outstanding financial performance in the third quarter of 2025. We continue to capture opportunities from targeted trading scenarios, in-house fulfillment and supply chain capabilities, and have elevated Asia's Recycle brand presence.
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In the third quarter total revenue growth was primarily driven by continued product revenue growth.
Revenues increased by 28, 7% to 4000 730 million largely attributable to the growth in all I felt a free almost consumer electronics.
Total revenue in the third quarter was at the high end of our guidance, increasing by 27.1% to $5,150 million. R&B adjusted operating income grew by 34.9% to over $140 million.
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[Company Representative] (ATRenew Inc.): We also worked with brands like Apple, Huawei, and Xiaomi, facilitating device upgrades for more users through trade-in offsets. This approach, combined with specific subsidies offered by e-commerce platforms and manufacturers in trade-in scenarios, helps users upgrade their devices at a lower cost.
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Before taking a detailed look at the financials, please know that all amounts are in R&B and all comparisons are year-over-year basis unless otherwise stated.
Rex Chen: 今年呢，我们估算二回收在京东实现了10%以上的回收，以和以旧换新的渗透率，渗透率持续提升。在京东精准的手机3C业务大盘里，精准实现转化，这个渗透率还有非常大的提升空间。随着品牌厂商新机销售价格保持上升趋势，以旧换新作为更具有价格优势的设备升级方式，受到了更多用户的青睐，同时帮助厂商保护新机的零售价格，实现共赢。新机零售场景是我们重要的货源场景之一。我们将持续与电商和厂商伙伴共同做好以旧换新价格算法、运营流程、供应链、用户体验等，从而长期提升以旧换新的渗透率。
The corner or multi cat, where recycling businesses contributed nearly 53 million of revenue accounting for 12, 5% of service revenue.
In the third quarter, total revenue growth was primarily driven by continued net product revenue growth. Net product revenues increased by 28.7% to $4.73 billion, largely attributable to the growth in online sales of pre-owned consumer electronics.
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Now lets discuss our operating expenses.
I'll 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 on the operating results. The reconciliation of GAAP and non-GAAP results are available in our earnings release, and the corresponding firm fix K furnished with the U S. S E T.
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That service from news for $420 million in the third quarter, representing an increase of 11.6%. The increase was largely driven by the pipeline marketplace and multi-category recycling business. The overall tech rate of our marketplace was 4.89% for the third quarter of 2025. During the quarter, our market-starting businesses contributed nearly $53 million of revenue, accounting for 12.5% of service revenues.
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[Company Representative] (ATRenew Inc.): We estimate that AHS Recycle achieved a trade-in penetration rate exceeding 10% on JD.com this year. The penetration rate is consistently increasing, driving precise conversions within JD's core consumer electronics business. Furthermore, we see significant potential for further growth in this penetration rate, as the retail prices of new devices from brand manufacturers continue to trend upwards. Trade-in programs are gaining favor among users as a more cost-effective upgrade path. Simultaneously, these programs help manufacturers protect the retail pricing of their new devices, creating a win-win situation. The scenario of new device retail presents an important source for us. We will continue to collaborate closely with our e-commerce and manufacturing partners to optimize the trade-in pricing algorithm, operational processes, supply chain, and user experience, increasing the penetration rate of trade-in services over the long run.
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In our actual operating-based expenses, we will mainly discuss our NGA profiting expenses, which better reflect how many views our operating results.
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Merchandize cost increased by 26 point.
3% to 4019 million in line with the growth in product sales.
The reconciliations of GAAP and non-GAAP results are available in our earnings release and the corresponding Form 6-K furnished with the USSD.
Gross profit margin for our one pay business was 13, 4% compared with 11, 7% in the same period last year. The gross margin improvement in our Rocky business was primarily driven by high efficiencies seem to be recycling scenario compliant refurbishment capabilities incorporate it in our supply chain and then increasingly diverse.
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Merci five retail channel mix, that's allowed us to increase the proportion of higher margin retail sales with one key to see revenue accounting for 36, 4% of product revenue in the third quarter off 20, or 25 up from 26, 4% in the same period last year.
Rex Chen: 关于第二个问题，预计第四季度总收入增速为25.4%至27.4%。我们所服务的主要电子品牌在今年发布了更具有用户吸引力的产品，并实现了可观的销量，唤起了更多用户的换机需求。
Well, our international business operation efficiency has improved with continued improvement in both scale and gross margin.
[Company Representative] (ATRenew Inc.): Regarding the second question, we expect total revenue growth in the fourth quarter to be between 25.4% and 27.4%. The major electronics brands we serve have launched more attractive products this year, and achieved considerable sales, stimulating stronger consumer demand for device upgrades.
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Merchandise costs increased by 26.3% to $4,090 million, in line with the growth in product sales and gross profit. Margin for our 1P business was 13.4% compared with 11.7% in the same period last year. The growth margin improvement in our warranty business was primarily driven by high efficiency in C2B recycling scenarios, compliant refurbishment capabilities incorporated in our supply chains, and an increasingly diversified retail genomics.
Rex Chen: 基于我们对四季度的业绩展望，预计2025年全年的总收入达208.7亿元至209.7亿元，对应同比增长27.8%至28.5%。这意味着我们有希望较年初预算内部预算取得了更快的增长。
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Increased by 25, 6% to 430 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.
[Company Representative] (ATRenew Inc.): Based on our fourth quarter outlook, we focus total revenue for the full year 2025 to be between RMB 20.87 billion and 20.97 billion, representing a year-over-year increase of 27.8% to 28.5%. This suggests a possibility for us to grow faster than our internal budget at the beginning of this year.
Additionally, operationally related cost rose as we expanded our store network and enhance.
Operation Center capacity in the third quarter of 2075, non-GAAP fulfillment expenses as a percentage of total revenues equates to eight 4% from eight 5%.
Rex Chen: 预计今年收入较去年实现加速增长，主要得益于以下三个原因：一、今年国家号召以旧换新，电商和品牌厂商都在积极建设或加强以旧换新的服务能力，我们合作的以旧换新供应链可以高效地为用户提供行业最佳的换新体验；二、同时我们加速扩建交付能力，在国内近300座城市构建了更加细致的交付网络服务，保障用户的回收换新体验；三、我们积极建设爱回收品牌，因为品牌的影响力才是长期的。
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This allowed us to increase the proportion of higher-margin retail sales with 1 P2, C Revenue accounting for 36.4% of product revenue in the third quarter of 2025, up from 26.4% in the same period last year. Meanwhile, our international business operation efficiency has improved, with continued improvement in both scale and growth margins.
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Selling and marketing expenses increased by 15, 4% to 360 million, they've got selling and marketing expenses increased by 46% to 360 million. The increase was primarily driven by higher advertising and promotional campaigns related spending as far as increasing commission expenses associated with channel.
Fulfillment expenses increased by 25.9% to $440 million. Then, fulfillment expenses increased by 25.6% to $430 million, along with 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 cost roles increased as we expanded our store network and enhanced operation center capacity in the third quarter of 2025.
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[Company Representative] (ATRenew Inc.): We anticipate accelerated revenue growth this year compared to last year, primarily driven by three factors. First, the national trade-in initiative has promoted e-commerce platforms and brand manufacturers to actively build or enhance their trade-in service capabilities. Our integrated trade-in supply chain can efficiently provide users with the best-in-class upgrade experience. Second, we are rapidly expanding our fulfillment network, having established a more granular presence in nearly 300 cities across China to ensure a superior user experience. Third, we are actively building the AHS Recycle brand, recognizing that brand influence delivers long-term value.
It reads out non-GAAP, selling and marketing expenses as a percentage of total revenues increased to seven point person that 7.0% from six 3%.
Then, the fulfillment expenses as a percentage of total revenues decreased to 8.4% from 8.5%.
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General and administrative expenses increased by six 9% to $74 1 million non-GAAP G&A expenses also increased by seven point 17.
17, 7% to $65 2 million, primarily due to an increase in tax and surcharges as far as an increase in consulting fees non-GAAP G&A expenses as a percentage of total revenues decreased to one 3% from 151, 4%.
Rex Chen: 对，2026年我们正在内部积极制定全年预算，随着以旧换新的渗透率增加，爱回收品牌力和交付力，以及我们供应链能力的提升，我们期待明年可以保持较快的同比增长。
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[Company Representative] (ATRenew Inc.): For 2026, we are actively preparing our internal annual budget. We expect to maintain a relatively rapid year-over-year growth rate, driven by increased penetration of trade-in programs, enhanced brand power, and fulfillment capabilities of AHS Recycle, and improvements in our overall supply chain efficiency.
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Technology and content expenses increased by 19, 5% to $63 8 million non-GAAP technology and content expenses increased by 23, 2% to $61 1 million as well.
The increase was primarily driven by elevated personnel expenses.
Rex Chen: 好，谢谢。
[Company Representative] (ATRenew Inc.): Thank you for the question.
Wang Zhao: Thank you.
Technology and content expenses as a percentage of total revenue remained stable at one 2%.
Operator: The next question will come from Rafael Wei with DBS. Please go ahead.
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General and administrative expenses increased by 6.9% to $74.1 million. These expenses also increased by 7.7% to $65.2 million, primarily due to an increase in tax and search charges. As for the increase in consultant fees, general and administrative expenses as a percentage of total revenue decreased to 1.3% from 1.5% and 1.4%.
Rafael Wei: good evening, management, and congratulations for the astonishing third-quarter results. I am Rafael from DBS. I have two questions I would like to ask. First, I would like to understand what is the store opening pace for the fourth quarter and for the next year for ATRenew. Thank you.
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As a result, our non-GAAP operating income was over $140 million. So quite off 25 comparison than GAAP operating income of 100, meaning in the third quarter was 21 four non-GAAP operating profit margin was two 7% for this quarter compared to two six in the third quarter of 'twenty 'twenty four representing an increase of <unk>.
Technology and content expenses increased by 19.5% to $63.8 million. Technology and content expenses increased by 23.2% to $61.1 million as well.
16 basis points.
Rex Chen: 好，非常感谢提问。我回答一下。对于第一个问题呢，我们，呃，今年全年啊，我们保持加速开店的目标。呃，大家可以从我们的门店结构和能力看出来，在一二线城市的爱回收的自营门店数量稳健增长，自营门店优先发展质量，做好交付能力的用户体验。其中近88%的自营门店开通了多品类回收的服务。加盟标准店方面，积极与本地的市场合作伙伴做好能力共建，在能力和流量赋能的基础上，与城市合伙人共同服务本地用户，快速推进开店目标。在部分加盟店场景里，我们在审慎地探索高值品类的服务能力，黄金已经初步形成。未来开店的节奏，我们，呃，未来开开店的节奏也会与我们建设上门团队的节奏形成动态平衡，以确保店和人的效率。
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The increase was finally driven by elevated personnel expenses, then the technology and content expenses as a percentage of total revenue. It remained stable at 1.2%.
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Similarly, 2.1 million U S dollars, we will continue to evaluate evaluate our overall profitability and update the shareholder return programs.
As a result, our Nanga operating income was over $140 million in the third quarter.
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100 million in the third quarter of 2024. Nanga's operating profit margin was 2.7% for this quarter compared to 2.6% in the third quarter of 2024, representing an increase of 16 basis points.
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As of September 30th 25, cash and cash equivalents restricted cash and short term investments and funds receivable from third party payment service providers totaled two point 54, being a RMB or financial reserves are sufficient to support reinvestment in business development and shareholder returns.
[Company Representative] (ATRenew Inc.): Thank you. I'll take the first question. For the full year 2025, we maintained our target of accelerating store openings. As shown in our store structure and capabilities, the number of self-operated AHS Recycle stores in Tier 1 and Tier 2 cities has grown steadily. For self-operated stores, we prioritize quality development, focusing on delivering a superior user experience through enhanced fulfillment capabilities. Nearly 88% of these self-operated stores are now equipped with multi-category services. Regarding joint-operated vendor stores, we actively collaborate with local market partners to build capabilities together. Based on empowering them with our capabilities and traffic support, we work with city partners to serve local users and rapidly advance our store opening goals. In some franchise store scenarios, we are prudently exploring service capabilities for high-value categories, with gold recycling already taking initial shape.
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During the third quarter of 2025, we repurchased a total of approximately 0.5 million ADSs for approximately $2.1 million. We will continue to evaluate our overall profitability and update the shareholder return programs at the appropriate time.
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September 30, 2025, cash and cash equivalents.
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Now turning to the business outlook.
Fourth quarter of 295, we anticipate total revenue to be between 6080 million RMB and 6000 180 million RMB, representing a year over year increase of 25, 4% to 27, 4% for the full year of 2025, we estimate total revenues to be between 28.
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[Company Representative] (ATRenew Inc.): Moving forward, the pace of new store openings will be dynamically balanced with the expansion of our two-door service teams to ensure the efficiency of both our physical locations and personnel.
Service providers totaled $2.54 billion R&B. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns when you are in-home.
Rafael Wei: 好的，谢谢。我另外也想请教一下，就是公司对于多品类服务，未来来说有怎么样的一个预期吗？ My second question is, what are the plans and targets for multi-category business in the future? Thank you.
You see those two and they're pretty sharp point go into China. That's concludes our prepared remarks, operator, we are now ready to take questions.
Thank you we will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys.
Rex Chen: 好，谢谢。呃，在对这个问题啊，在多品类业务方面，我们今年保持了高速发展的节奏，得益于我们快速提升了交付范围、品类的基准价报价的能力、用户体验等多个指标。我们的多品类回收业务是亲自产的平台模式，不易受到政策变化的影响，且合规经营，注重C2B模式下的交易效率和价格等核心的用户体验指标。第三季度在黄金价格快速上升的背景下，我们考虑到用户的交易体验，采用了降低服务费率的方式，为来为用户提供实惠和价值，也保证了交易规模的快速增长。未来我们围绕爱回收品牌和门店的能力，优先发展方便用户携带到店交易的高值品类，打通回收用户的年龄和性别画像，巩固爱回收国民第一回收品牌的用户心智。
And so Im sure. Your question. Please press Star then two.
Now, turning to the business outlook for the fourth quarter of 2025, we anticipate total revenues to be between $6,080 million and $6,180 million, representing a year-over-year increase of 25.4% to 27.4% for the full year. For 2025, we estimate total revenues to be between $20.87 billion.
When asking a question. Please state your question in Chinese first then repeat your question in English for the convenience of everyone on the call at.
At this time, we'll pause momentarily to assemble our roster.
And the first question will come from one Joe what's the ICT. Please go ahead.
R&B and $24.97 billion, representing a year-over-year increase of 27.8% to $25.28 billion. Please note that this focus only reflects our current and preliminary views on the market and operational conditions, which are subject to change.
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Thank you. We will now begin the question-and-answer session.
To ask a question, you may press star then 1 on your touchtone phone.
Do some of your web Aqua telephony.
If you are using a speakerphone, please pick up your handset before pressing the keys.
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Oh, Thanks for taking my question. My first question is we know that recently there have been some changes to the national subsidy policies could you. Please share the impact on your business and the second one is could you. Please give us more color about outlook for Q4 and next year. Thank you.
Well asking a question. Please State your question in Chinese first. Then repeat your question in English. For the convenience of everyone on the call.
At this time, we'll pause momentarily to assemble our roster.
[Company Representative] (ATRenew Inc.): In terms of multi-category business, it has maintained a rapid development trajectory this year, benefiting from our quick improvements in several metrics, including service coverage, baseline pricing capabilities for various categories, and user experience. Our multi-category recycling business operates on an asset-light platform model, which is less susceptible to policy changes and emphasizes compliant operations. It focuses on core user experience metrics, such as transaction efficiency and pricing within the C2B model. In the third quarter, against the backdrop of rapidly rising gold prices, we prioritized user transaction experience by reducing our take rate. This approach provided users with tangible value and benefits, while also ensuring the rapid growth of our transaction volume. Looking ahead, leveraging the strength of our AHS Recycle brand and our store network, we will prioritize developing high-value categories that are convenient for users to bring to our store for transactions.
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Hi. Thanks for taking my questions. My first question is, we know that recently we have had some changes to the national subsidy policies. Could you please share the impact on your business? And the second one is, could you please give us more color about our outlook for Q4 and next year? Thank you.
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[Company Representative] (ATRenew Inc.): We aim to integrate user demographic profiles, including age and gender, to solidify the consumer mindset of AHS Recycle's go-to destination positioning.
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Rex Chen: 好，谢谢。
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[Company Representative] (ATRenew Inc.): Thank you.
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Rafael Wei: 好的，谢谢。再次恭喜公司取得非常亮丽的业绩，谢谢。
Thank you for your question. The first question is about National subsidy. That's a very good question, let me address it by analyzing the growth drivers of our <unk> business in the context of the national subsidy.
Operator: The next question will come from Michael Kim with Zachs Small Cap Research. Please go ahead. Mr. Kim, your line is open.
Trade in subsidy directly promote yourself a few devices.
However, the subsidies are only applicable to new devices priced and there are fixed other RMB. Therefore, a significant portion of our consumers pressured thing premium models do not utilize these subsidies.
That's all one business primarily focuses on premium rent the proportion of trading onerous utilizing national trade subsidies was actually quite limited. This year. Nevertheless, the national subsidies have effectively stimulated upgrades within the prelim consumer electronics industry benefiting from our mature.
Michael Kim: Hi, can you hear me?
Jeremy Ji: Yes, we can hear you.
Michael Kim: Yes. Okay. Curious to get your perspective on the uptake of enhanced services across your marketplace businesses and how maybe a more favorable mix might impact take rates. Then just related to that, how has the mix trended more recently as it relates to multi-category transactions? Thanks.
Thank you for your question. The first question is about ...
Trading and supply chain this year with collaborated with JD Dot com to create the best in class trading user experience. We also worked with brands like Apple <unk> and Xiaomi facilitating device upgrades for more users through trade in offsets.
National subsidy—that's a very good question. Let me address it by analyzing the growth drivers of our 1P business in the context of the national subsidies.
The national trade-in subsidy directly promotes the sales of new devices.
This approach combined with let's say the subsidies offered by e-commerce platforms and manufacturers in training scenarios, how can users upgrade their devices at a lower cost in fact at a lower cost.
Rex Chen: 好的，谢谢。Partisan take rate一直稳定在6%以上。三季度，因为商家服务政策的阶段性调整，我们允许买家更灵活地退换货，所以收费率受到一定的影响。同时，Partisan积极为用户提供创新交易模式，比如代淘，将平台供应链向抖音打通，为更多大人、小P打通行业货源，让二手的生意更简单，同时也为C端用户提供更好、更多好货和价值。
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Jeremy Ji: The take rate for PJC Marketplace remains stable at over 6%. The slight variation in the platform take rate in the third quarter was primarily due to phased adjustments in our merchant service policy, where we allowed buyers more flexible return and exchange options. Simultaneously, PJC actively introduced innovative transaction models, such as the specialty buyer model, and expanded platform supply chain connectivity to Douyin. This provides more influencers and small business owners with access to industry supply sources, simplifies secondhand transactions, and offers consumers better products and greater value.
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However, these updates are only applicable to new devices priced under 6,000 RMB. Therefore, a significant portion of consumers purchasing premium models do not utilize these subsidies, given that our one-piece business primarily focuses on Prime premium brands, the proportion of trading orders. Utilizing national trade subsidies was actually quite limited this year. Nevertheless, the natural subsidies have effectively stimulated upgrades within the pre-owned consumer electronics industry, benefiting from our mature trading supply chain. This year, we collaborated with JD.com to create the best-in-class trading user experience. We also worked with brands like Apple, Far Away, and Xiaomi, facilitating device upgrades for more users through trade-in offsets.
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This approach, combined with specific subsidies offered by e-commerce platforms and manufacturers in trading scenarios, is helping users upgrade their devices at a lower cost.
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We estimate that they know and trust recycled achieved upgrade in penetration rates exceeding 10% on JD com this year.
Rex Chen: 在拍拍品类业务中，寄卖模式呢，初见成效，收费率提升至高个位数9%。寄卖的销售类混合品类收费率都有调整的空间。用平台标准化的寄卖模式能够有效地解决小B商家的运营难题，帮他们实现更简单的开店体验，更高的交易效率，更好的价格和销路。随着寄卖业务规模的提升，拍拍平台的收入结构和收费率均有机会进一步优化。
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Filing precise conversions within JD is core consumer electronics business. Furthermore, we see significant potential for further growth in the penetration rate at the retail prices of new devices from Backfriend manufacturers continues to trend upward trading programs are gaining favor among users as a more coffee.
Active upgrade path.
Jeremy Ji: Within the PaiPai Marketplace, the consignment model has shown initial success, driving its take rate into the high single-digit range to 9%. There remains room for optimization in both the sales categories and take rate structure for consignment. This standardized model effectively addresses operational challenges for small merchants by offering a simpler store setup experience, higher transaction efficiency, and better pricing and sales channels. As the consignment business scales, both the revenue structure and take rate of the PaiPai Marketplace have the potential for further optimization.
Tennessee. These programs help manufacturers protect our retail pricing of their new devices, creating a win win situation. The scenario of new device retail presents an important source for US we will continue to collaborate closely with our e-commerce and manufacturing partners to optimize their trade in pricing.
Rate is consistent consistently increasing.
With the operational processes supply chain and user experience, increasing the penetration rate of trading services over the long run.
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Rex Chen: 对于多品类，目前较大比例的交易规模来自黄金回收服务，更标准化，收费率也较低，为低个位数水平。二奢品类的服务收费率呢，在10%上方持续突破。品类拓展方面呢，我们会优先高值、高服务价值、收费率空间更大的品类。
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Regarding the second question, we expect total revenue growth in the fourth quarter to be between 25, 4% and 27, 4%.
There is potential for further growth in this penetration rate, as the retail prices of new devices from brand manufacturers continue to trend upwards. Trading programs are gaining favor among users as a more cost-effective upgrade path. Simultaneously, these programs help manufacturers protect the retail pricing of their new devices, creating a win-win situation.
Jeremy Ji: Regarding our multi-category services, a significant portion of current transaction volume comes from gold recycling, which is more standardized and operates with a low single-digit take rate. The service take rate for the secondhand luxury category continues to exceed 10%. For future category expansion, we will prioritize high-value categories that offer greater service value, and potential for higher take rates.
Electronic trend, we serve have launched more attractive products live here and theyre achieved considerable cells stimulate even stronger consumer demand for device upgrades.
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The scenario of new devices in retail presents an important source to us. We will continue to collaborate closely with our e-commerce and manufacturing partners to optimize the trading and pricing algorithm, operational processes, supply chain, and user experience, increasing the penetration rate of trade-in services over the long run.
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Michael Kim: Got it. Thanks for taking my question.
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Operator: As there are no further questions at this time, I'd like to turn the conference back over to management for closing remarks.
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Based on our fourth quarter outlook, we forecast total revenue for the full year 2025 to be between $20 87 billion RMB and 20 97 billion RMB, representing a year over year increase of 27, 8% to 28, 5% that suggest a path a possibility.
Michael Kim: Thank you.
Operator: Thank you all again for joining us. A replay of today's call will be available on our website shortly, followed by a transcript when ready. If you have any additional questions, please feel free to email us at ir@atrenew.com. Have a good day. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Regarding the second question, we expect total revenue growth in the fourth quarter to be between 25.4% and 27.4%. The major electronic brands we serve have launched more attractive products this year and achieved considerable sales, stimulating stronger consumer demand for device upgrades.
For us to grow faster than our internal budget at the beginning of this year.
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Based on our fourth quarter. Also we focus total revenue for the 4 year 2025 to be between 20.87 billion R&B and 20.97 billion. R&B representing a year-over-year increase of 27.8% to 28.5% this suggests, a post a possibility for us to grow faster than our internal budget at the beginning of this year.
We anticipate accelerated revenue growth this year compared to last year, primarily driven by three factors first the national trade and initiatives have promoted ecommerce platform and brand manufacturers to actively build or enhance their trade in service capabilities.
Integrated trading and supply chain can our integrated trading supply chain efficiently, providing users with the best in class operating experience.
Second we are rapidly expanding our fulfillment network, having established a more granular presence in nearly 300 cities across China to ensure a superior user experience.
Third we are actively building the answers to recycle brands recognizing that brand influence delivers long term value.
We anticipate accelerated revenue growth. This
Compared to last.
Okay.
But until they bought T. G. I think tenure you saw so you say you took place in the Central region Jacques.
Pardon me, if its awfully easy or Michael Union, Liberty's, well Machida and minions credit box gel credit probably turned up for 'twenty. Let me say, we are actively preparing our internal budget, we expect to maintain a relatively rapid year over year growth rate driven by increased penetration of training program.
Primarily driven by three factors. First, the national trading initiative has promoted e-commerce platforms and brand manufacturers to actively build or enhance their trade-in service capabilities. We integrated trade-in supply chain. Can our integrated trading supply chain efficiently provide users with the best-in-class operating experience?
How is the brand power and fulfillment capabilities of air transport recycled and the improvements in our overall supply chain efficiency.
Second, we are rapidly expanding our fulfillment network, having established a more granular presence in nearly 300 cities across China to ensure a superior user experience.
Oh.
Thank you for the question.
Thank you.
Third, we are actively building the AHS recycle brands, recognizing that brand influencers deliver long-term value.
The next question will come from weight body with DBS. Please go ahead.
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I'll recap in English so good evening management and congratulations for the astonishing that quite a bit.
So two questions from my side. The first one is that what is the store opening pace for the fourth quarter and for the mixed shift for keeping you. Thank you.
2026. We are actively preparing our internal annual budget. We expect to maintain a relatively rapid year-over-year growth rate driven by increased penetration of trading programs, enhanced brand power and fulfillment capabilities of AHS Recycle, and improvements in our overall supply chain efficiency.
Thank you for the question.
Thank you.
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The next question will come from Wave 40 with DBS. Please go ahead.
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I'll recap in English, so good evening management and congratulations for the astonishing, third, quarter results. So, 2 questions from our side, the first 1 is that what is the store opening page for the fourth quarter? And for the next year for ATV new, thank you.
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I'll take the first question for the full year of 2025, we will maintain our target of accelerating store openings are strong and our store structure and capabilities. The number of self operated address recycle stores in tier one and tier two cities has grown Saturday.
Self operated stores, we prioritize quality development focusing on delivering a superior user experience through in Hartsville film and capabilities nearly 88% of these self operated stores are now equipped with multi platform services.
According to incorporate a standout story, we actively collaborated with local market partners.
Build crap capabilities together.
Based on empowering them with all of our capabilities and traffic support we work with city partners to serve local users and rapidly advance our store opening goes in some franchise stores scenario, we are prudently exploring service capabilities for high value categories with golf, we're suffering already taking initial shape moving forward.
Well.
Or the pace of new store openings will be dynamically balanced with the expansion of our two north always seems to ensure the efficiency of both our physical locations and personnel.
Okay.
But Meanwhile, you can see that you say that you should consider you're talking late for work.
We're not actually at the Miami two months. So my second question is what are the plans and targets for multi category business in the future. Thank you.
Thank you. I'll take the first question for the 4 year 2025. We maintained our Target of accelerating store openings as strong in our store structure and capabilities. The number of self operated AHS, recycle stores in Tier 1 and tier 2 cities has grown steadily for self operative doors. We prioritize quality development focusing on delivering a superior user experience through enhanced fulfillment capabilities, nearly 88% of these self operated stores are now equipped with Multicultural Services, regarding joint operative, standard stores. We actively collaborate with local market Partners to build capabilities together,
Oh I see.
Based on empowering them with our capabilities and traffic support, we work with city partners to serve local users and rapidly advance our store opening goals.
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In some franchise store scenarios, we are prudently exploring service capabilities for high-value categories, with gold recycling already taking initial shape. Moving forward, the pace of new store openings will be dynamically balanced with the extension of our two-door service teams to ensure the efficiency of both our physical locations and personnel.
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So, uh, my second question is: What are the plans and targets for multi-category business in the future? Thank you.
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In terms of monarch hats, where it is and it has maintained a rapid development trajectory next year benefiting from our improvements in several metrics, including service coverage baseline pricing capabilities for various categories and easy experience our.
Our market cap, where recycling business operates an asset light platform model, which is less so.
Susceptible to policy changes and emphasizes compliant operations. It focuses on core user experience metrics, such as transaction efficiency and pricing we've been does seem to be model.
In the third quarter against the backdrop of against a backdrop of rapidly rising gold prices, we prioritized user transaction experience by reducing or take rate. This approach, providing users with tangible value and benefits while also ensuring their rapid growth our transaction volume.
Looking at leveraging the strength of our Asia recycle brand and our store network, we will prioritize developing high value categories that are convenient for users to bring two hours to work for transactions.
In terms of market category business, it has maintained a rapid development trajectory this year, benefiting from our quick improvements in several metrics, including service coverage, baseline pricing capabilities for various categories, and user experience.
We aim to integrate user demographic profiles, including age and gender to solidify the consumer mindset of Asia recycled go to destination positioning.
Our multi-category recycling business operates on an asset-light platform model, which is less susceptible to policy changes and emphasizes compliant operations. It focuses on core user experience and metrics such as transaction efficiency and pricing. We've been in the C2B model.
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The next question will come from Michael Kim with Zacks small cap research. Please go ahead.
In the third quarter, against the backdrop of uh, against the backdrop of rapidly Rising gold prices. We prioritized user transaction experience by reducing our take rate, this approach provided users with tangible value and benefits while also ensuring the rapid growth of our transaction volume.
Yeah.
Mr. Kim Your line is open.
Leveraging the strengths of our Asia's recycle brand and our store networks, we will prioritize developing high-value categories that are convenient for users to bring to our store for transactions.
Hi can you hear me.
Yes, we can hear you.
We aim to integrate user demographic profiles, including age and gender, to solidify the consumer mindset of AHS Recycles. Go to destination positioning.
Yes.
Okay.
Thank you.
Curious to get your perspective on on the uptake of the enhanced services across your marketplace businesses and how.
Maybe a more favorable mix might impact take rate.
The next question will come from Michael Kim, with Zack Small Cap Research. Please go ahead.
And then just related to that how is the mix trended more recently as it relates to.
Multi category transactions.
Mr. Kim, your line is open.
Okay.
Okay.
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The take rate for P. J T marketplace remains stable at over 6% the slight variation in the platform take rate in third quarter was primarily due to faith adjustments.
Curious to to get your perspective on, on the uptake of, uh, enhanced Services across your Marketplace businesses and how maybe a, more favorable mix might impact take rates. Um, and then just related to that. How is the mixed trended more? Recently as it relates to uh, multi-category transactions. Thanks.
In our merchant service policy.
We allowed by our more flexible returning change options.
A P P. J T actively introduce innovate transaction model such as the specialty by our model and expanded platform of supply chain connectivity to Dorian.
Why it's more of a cluster and small business owners with access to industry supply sources simplified secondhand transactions and offers consumers bathroom products and greater value.
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Perfect. So Chico COPD June should we keep we want within the pipeline marketplace. The consignment model has shown initial success.
The slide variation in the platform tech and software was primarily due to phased adjustments in our merchant service policy, where we allowed buyers more flexible return and exchange options. Some alternative projects actively introduced innovative transaction models, such as the specialty buyer models and expanded platform supply chain connectivity, which provides more opportunities for influencers and small businesses.
Driving is take rate into the high single digit around two 9% there remains room for optimization in both the south categories and take rate structure for consignment. They standardized model effectively addressing operational challenges for small merchants by offering a simpler dwarf that may experience higher transaction efficiency and better pricing.
That's owners with access to industry supply sources. Simply 5, second-hand transactions and offers consumers better products and greater value.
And sales channels.
The consignment business scale, both our revenue structure and take right off the highway marketplace have the potential for further optimization.
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Regarding our multi category or is it a significant portion of current transaction volume comes from gold recycling, which is more than that is that operates with a low single digit take rate the take rate for the second hand luxury category continue.
To exceed 10% for future category expansion, we will prioritize high vitamin category that offer greater service value and potential for higher take rates.
Within the pipeline Marketplace, the consignment model has shown initial success. Driving is decorated into the high single digits, running to 9% there. There remains room for optimization. This involves the sales categories and takeaway structure for consignment. The standardized model effectively addresses operational challenges for small merchants by offering a simpler door setup experience, higher transaction efficiency, and better pricing and sales channels. As the consignment business scales, both the revenue structure and takeaway of the pipeline Marketplace have the potential for further optimization.
Got it thanks for taking my question.
Okay.
And as there are no further questions at this time.
I'd like to turn the conference back over to management for closing remarks.
Chance.
Thank you.
Regarding our multi.
Thank you all again for joining US a replay of today's call will be available on our web.
Portion of current transaction.
So shortly followed by a transcript we're ready if you have any additional questions. Please feel free to email us at IR. If you renew dot com have a good day.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Comes from both reflecting, which is more standardized, and operates with a low single digit. Take rate for the service take rate for the secondhand luxury category continues to exceed 10% for future category extensions. We will prioritize high-value categories that offer greater service value and potential for higher take rates.
Got it. Thanks for taking my question.
Is there? No further questions at this time?
For closing remarks.
Thank you. Thank you all again for joining us. A replay of today's call will be available on our website, shortly followed by a transcript. We're ready. If you have any additional questions, please feel free to email us at ir@atrenew.com. Have a good day.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.