Q1 2026 ATRenew Inc Earnings Call

May 19, 2026

Operator: Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to ATRenew Inc.'s Q1 2026 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, Miss Jeremy Ji, Head of Investor Relations. Please go ahead, ma'am.

Speaker #2: 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.

Speaker #2: I will now turn the call over to the first speaker today, Ms. Jessie Chen, Head of Investor Relations. Please go ahead, ma'am. Thank you.

Jessie Jin: Thank you. Hello, everyone, and welcome to ATRenew's Q1 2026 Earnings Conference Call. Speaking first today is Kerry Chen, our Founder, Chairman, and CEO, and he will be followed by Rex Chen, our CFO. After that, we will open the call to questions from the analysts. The Q1 2026 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 will share his thoughts of our quarterly performance and business strategy, followed by Rex, who will address the financial highlights. Both Kerry and Rex will participate during the Q&A session. Please note our safe harbor statements.

Speaker #2: Hello, everyone, and welcome to ATRenew's first quarter 2026 earnings conference call. Speaking first today is Kerry Chen, our founder, chairman, and CEO, and he will be followed by Rex Chen, our CFO.

Speaker #2: After that, we will open the call to questions from the analysts. The first quarter 2026 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.

Speaker #2: There will also be a transcript following this call for your convenience. For today's agenda, Kerry will share his thoughts of our quarterly performance and business strategy, followed by Rex, who will address the financial highlights.

Speaker #2: Both Kerry and Rex will participate during the Q&A session. Please note our Safe Harbor statements. Some of the information you will hear during our discussion today will consist of forward-looking statements, and I refer to you our Safe Harbor statements in the earnings press release.

Jessie Jin: Some of the information you will hear during our discussion today will consist of forward-looking statements. I refer to you 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 ATRenew 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. Now I'd like to turn the call over to Kerry for business and strategy update.

Speaker #2: Any forward-looking statements that management makes on this call are based on assumptions as of today, and that ATRenew does not take any obligations to upgrade our assumptions on these statements.

Speaker #2: 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 #2: 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.

Speaker #2: Now I'd like to turn the call over to Kerry for business and strategy updates.

Speaker #3: Billy, thank you. 欢迎参加万维新闻集团2026年第一季度的业绩电话会。我们很高兴与各位交流今年以来的经营成果，并更新对于今年二手行业能力建设的一些思考。

Kerry Chen: 各位投资者、分析师，大家好。欢迎参加爱回收集团二零二六年第一季度的业绩电话会。我们很高兴与各位交流今年以来的经营成果，并更新对于今年二手行业能力建设的一些思考。

Speaker #4: Hello, everyone, and thank you for joining ATRenew's first quarter 2026 earnings conference call. We are pleased to review our operating results and share our latest perspectives regarding capability building in the second-time industry this year.

Jessie Jin: Hello, everyone, thank you for joining ATRenew Q1 2026 Earnings Conference Call. We are pleased to review our operating results and share our latest perspective regarding capability building in the second-hand industry this year.

[Translator]: Hello, everyone, thank you for joining ATRenew Q1 2026 Earnings Conference Call. We are pleased to review our operating results and share our latest perspective regarding capability building in the second-hand industry this year.

Speaker #3: 今年年初，我们延续了春节过打烊的运营策略，如期实现了业绩开门红。于第一季度实现了整体业绩的加速增长。集团总收入61.6亿元加速增长了32.4%，其中EP产品的收入增长同比增长34%.4%为主要驱动力。3P服务增长同比增长10.4%，保持健康的发展节奏。在利润端，non-GAAP经营利润同比增长70.2%至1.9亿元。non-GAAP的经营利润率健康提升69个基点至3.1%。

Kerry Chen: 今年年初，我们延续了春节不打烊的运营策略，如期实现了业绩开门红，于第一季度实现了整体业绩的加速增长。集团总收入61.6亿元，加速增长了32.4%。其中，1P产品的收入同比增长34.4%，为主要驱动力。3P服务同比增长10.4%，保持健康的发展节奏。在利润端，Non-GAAP经营利润同比增长70.2%至1.9亿元。Non-GAAP的经营利润率健康提升69个基点至3.1%。

Speaker #4: At the beginning of the year, we maintained an interrupted services during the Chinese New Year holiday, achieving a strong start and delivering accelerated overall growth in the first quarter.

Jessie Jin: At the beginning of the year, we maintained uninterrupted services during the Chinese New Year holiday, achieving a strong start and delivering accelerated overall growth in Q1. Total net revenues reached RMB 6.16 billion, representing an accelerated growth rate of 32.4%. This momentum was primarily driven by 1P product revenue, which surged 34.4% year-over-year, while 3P service revenue maintained a healthy 10.4% year-over-year growth rate. Profitability also improved. Non-GAAP operating profit grew 70.2% year-over-year to RMB 190 million, while the Non-GAAP operating profit margin expanded by 69 basis points to 3.16%.

[Translator]: At the beginning of the year, we maintained uninterrupted services during the Chinese New Year holiday, achieving a strong start and delivering accelerated overall growth in Q1. Total net revenues reached RMB 6.16 billion, representing an accelerated growth rate of 32.4%. This momentum was primarily driven by 1P product revenue, which surged 34.4% year-over-year, while 3P service revenue maintained a healthy 10.4% year-over-year growth rate. Profitability also improved. Non-GAAP operating profit grew 70.2% year-over-year to RMB 190 million, while the Non-GAAP operating profit margin expanded by 69 basis points to 3.16%.

Speaker #4: Total net revenues reached R&B 6.16 billion, representing an accelerated growth rate of 32.4%. This momentum was primarily driven by 1P product revenue, which surged 34.4% year over year, while 3P service revenue maintained a healthy 10.4% year over year growth rate.

Speaker #4: Profitability also improved. Non-GAAP operating profit grew 70.2% year over year to 190 million R&B, while the non-GAAP operating profit margin expanded by 69 basis points to 3.16%.

Speaker #3: 在整体收入和规模增长过程中，我们坚定推进以EP为核心的战略。巩固二手手机、3C回收以交易的业务基本盘。在加强对终端用户的价值创造过程中，我们通过抓一手货源提升合规翻新的产出，进一步提升了EP2C的占比。

Kerry Chen: 在整体收入和规模增长过程中，我们坚定推进以1P为核心的战略，巩固二手手机3C回收与交易的业务基本盘。在加强对终端用户的价值创造过程中，我们通过抓一手货源，提升回归翻新的产出，进一步提升了1P2C的占比。

Speaker #4: I mean, overall revenue and scale expansion, we continue to advance our 1P-centric strategy, strengthening our core foundation in the recycling and trading of secondhand consumer electronics to drive greater value for retail users.

Jessie Jin: Amid overall revenue and scale expansion, we continue to advance our 1P-centric strategy, strengthening our core foundation in the recycling and trading of secondhand consumer electronics. To drive greater value for retail users, we optimized our 1P2C ratio by securing firsthand supply sources and enhancing compliant refurbishment output.

[Translator]: Amid overall revenue and scale expansion, we continue to advance our 1P-centric strategy, strengthening our core foundation in the recycling and trading of secondhand consumer electronics. To drive greater value for retail users, we optimized our 1P2C ratio by securing firsthand supply sources and enhancing compliant refurbishment output.

Speaker #4: We optimized our 1P2C ratio by securing firsthand supply sources and enhancing compliant refurbishment output.

Speaker #3: 在货源端，我们抓住了当下的行业趋势，优先发展更具有用户体验优势的以旧换新场景。将更多履约交付通过上门服务牵引至线下，2026年国家延续对以旧换新的大力支持，推进财政金融协同。在该背景下，爱护手与京东继续为消费者打造行业最佳的以旧换新消费方案，以更好的一站式换机体验和更有综合优势的价格，切实消费者服务消费者多元化的购买需求。因此，在京东货源中，以旧换新呈现出更快速的增长业绩。订单量占比较去年进一步提升至七成。

Kerry Chen: 在货源端，我们抓住了当下的行业趋势，优先发展更具有用户体验优势的以旧换新场景，将更多履约交付通过上门服务牵引至线下。2026年，国家延续对以旧换新的大力支持，推进财政金融协同。在该背景下，爱回收与京东继续为消费者打造行业最佳的以旧换新消费方案，以更好的一站式换机体验和更有综合优势的价格，切实服务消费者多元化的购买需求。因此，在京东货源中，以旧换新呈现出更快速的增长业绩，订单量占比较去年进一步提升至七成。

Speaker #4: On the supply side, we capitalized on industry trends by prioritizing trading scenarios that deliver superior user experiences. While shifting more fulfillment to offline via two-door services, in 2026, the government maintains strong support for trading and further advanced fiscal and financial coordination.

Jessie Jin: On the supply side, we capitalize on industry trends by prioritizing trading scenarios that deliver superior user experiences while shifting more fulfillment to offline via two-door services. In 2026, the government maintained strong support for trade-ins and further advanced fiscal and financial coordination. Against this backdrop, AHS Recycle continues to work closely with JD.com to create industry-leading trade-in solutions, providing a seamless one-stop trade-in experience at highly competitive prices to meet diverse consumer needs. As a result, within the JD sourcing channel, trade-in orders outpaced overall growth, with volume share further expanding year over year to about 70%.

[Translator]: On the supply side, we capitalize on industry trends by prioritizing trading scenarios that deliver superior user experiences while shifting more fulfillment to offline via two-door services. In 2026, the government maintained strong support for trade-ins and further advanced fiscal and financial coordination. Against this backdrop, AHS Recycle continues to work closely with JD.com to create industry-leading trade-in solutions, providing a seamless one-stop trade-in experience at highly competitive prices to meet diverse consumer needs. As a result, within the JD sourcing channel, trade-in orders outpaced overall growth, with volume share further expanding year over year to about 70%.

Speaker #4: Against this backdrop, AHS Recycle continues to work closely with JD.com to create industry-leading trading solutions, providing a seamless, one-stop trading experience at highly competitive prices to meet diverse consumer needs.

Speaker #4: As a result, within the JD sourcing channel, trading orders outpaced overall growth, with volume share further expanding year over year to about 70%.

Speaker #3: 在回收交付过程中，我们持续迁移用户在线下场景进行面对面的交付。依记录，一季度在遍布全国主要城市的2,156家门店之外，我们进一步扩大了上门交付的团队规模，由2,248位专业的上门人员将交付服务带到用户面前。面对面的交付比例达到80%。以爱回收的履约能力和品牌与用户建立连接与信任。预计在大促和品牌旗舰机发布等业务旺季，我们将探索采用弹性运营方案，重点提升高峰期的面对面交付时效和用户体验。

Kerry Chen: 在回收交付过程中，我们持续牵引用户在线下场景进行面对面的交付。一季度，在遍布全国主要城市的两千一百五十六家门店之外，我们进一步扩大了上门交付的团队规模。有两千两百四十八位专业的上门人员将交付服务带到用户面前。面对面的交付比例达到80%。以爱回收的履约能力和品牌与用户建立连接与信任。预计在大促和品牌旗舰机发布等业务旺季，我们将探索采用弹性运力方案，重点提升高峰期的面对面交付时效和用户体验。

Speaker #4: Throughout the recycling fulfillment process, we actively guide users towards face-to-face transactions in offline settings. In the first quarter, we expanded beyond our network of 2,156 stores across major cities and scaled up our door-to-door service team to 2,248 professionals.

Jessie Jin: Throughout the recycling fulfillment process, we actively guide users towards face-to-face transactions in offline settings. In Q1, we expanded beyond our network of 2,156 stores across major cities and scaled up our door-to-door service team to 2,248 professionals, bringing our services directly to users' doorsteps. This strategy has lifted our face-to-face fulfillment ratio to 80%, fostering deep connection and trust through AHS Recycle's fulfillment capabilities and brand presence. Looking ahead to peak seasons like major promotional campaigns and flagship device launches, we will further implement flexible workforce solutions to enhance face-to-face fulfillment, timeliness, and user experience even during the busiest times.

[Translator]: Throughout the recycling fulfillment process, we actively guide users towards face-to-face transactions in offline settings. In Q1, we expanded beyond our network of 2,156 stores across major cities and scaled up our door-to-door service team to 2,248 professionals, bringing our services directly to users' doorsteps. This strategy has lifted our face-to-face fulfillment ratio to 80%, fostering deep connection and trust through AHS Recycle's fulfillment capabilities and brand presence. Looking ahead to peak seasons like major promotional campaigns and flagship device launches, we will further implement flexible workforce solutions to enhance face-to-face fulfillment, timeliness, and user experience even during the busiest times.

Speaker #4: Bringing our services directly to users' doorsteps. This strategy has lifted our face-to-face fulfillment ratio to 80%, fostering deeper connection and trust through AHS recycle's fulfillment capabilities and brand presence.

Speaker #4: Looking ahead to peak seasons like major promotional campaigns and flagship device launches, we will further implement flexible workforce solutions to enhance face-to-face fulfillment timeliness and user experience even during the busiest times.

Speaker #3: 今年一季度，我们通过自营的合规翻新业务加强了产业链的厚度。翻新产品的整体收入同比增加76.1%，其中以销订修业务模式收入同比增长约180%。我们的合规翻新能力为2C的零售扩充了更多的优质二手商品。在零售渠道方面，通过同步发力，开发严选爱回收官网、新媒体三个渠道，合规翻新机的2C销售收入同比增长近150%，其中今年3月份严选业务的合规翻新机的销售单月业绩突破了2亿元，再次实现了新的业务里程碑。基于以上，今年一季度产品收入的2C零售占比提升至45.1%，对比去年同期的33%和去年四季度的41.7%，分别上升了12.1%和3.4个百分点。在EP2C占比提升的过程中，我们更充分地捕捉到2C零售的价格走势，由此向回收端传输。支持我们为用户提供更好的回收价格体验，形成更强的价格优势，为终端用户创造更大的价值。

Kerry Chen: 今年一季度，我们通过智银的合规翻新业务加强了产业链的厚度。翻新产品的整体收入同比增加76.1%，其中以销定修业务模式收入同比增长约180%。我们的合规翻新能力为To C的零售扩充了更多的优质二手商品。在零售渠道方面，通过同步发力拍拍严选、爱回收官网、新媒体三个渠道，合规翻新机的To C销售收入同比增长近150%。其中，今年三月份严选业务的合规翻新机的销售单月业绩突破了两亿元，再次实现了新的业务里程碑。基于以上，今年一季度产品收入的To C零售占比提升至45.1%，对比去年同期的33%和去年四季度的41.7%，分别上升了12.1和3.4个百分点。在1P2C占比提升的过程中，我们更充分地捕捉到To C零售的价格走势，由此向回收端传输，支持我们为用户提供更好的回收价格体验，形成更强的价格优势，为终端用户创造更大的价值。

Speaker #4: During the first quarter, we leveraged our proprietary compliant refurbishment business to add depth to our supply chain with compliant refurbished product revenue increasing 76.1% year over year.

Jessie Jin: During Q1, we leveraged our proprietary compliant refurbishment business to add depth to our supply chain. With compliant refurbished product revenue increasing 76.1% year over year. Our on-demand refurbishment model was a standout performer, growing by roughly 180% in revenue. Our compliant refurbishment capabilities allowed us to provide more quality secondhand devices directly to consumers. In terms of retail channels, we expanded across Paipai Selection, our official website, and new media channels, which drove nearly 150% year over year growth in 1P2C retail revenue from refurbished devices. March marked a significant breakthrough, with monthly retail sales of compliant refurbished products topping RMB 200 million.

[Translator]: During Q1, we leveraged our proprietary compliant refurbishment business to add depth to our supply chain. With compliant refurbished product revenue increasing 76.1% year over year. Our on-demand refurbishment model was a standout performer, growing by roughly 180% in revenue. Our compliant refurbishment capabilities allowed us to provide more quality secondhand devices directly to consumers. In terms of retail channels, we expanded across Paipai Selection, our official website, and new media channels, which drove nearly 150% year over year growth in 1P2C retail revenue from refurbished devices. March marked a significant breakthrough, with monthly retail sales of compliant refurbished products topping RMB 200 million.

Speaker #4: Our on-demand refurbishment model was a standout performer, growing by roughly 180% in revenue. Our compliant refurbishment capabilities allowed us to provide more quality secondhand devices directly to consumers.

Speaker #4: In terms of retail channels, we expanded across pipeline selection, our official website, and new media channels, which drove nearly 150% year over year growth in 1P2C retail revenue from refurbished devices.

Speaker #4: March marked a significant breakthrough, with monthly retail sales of compliant refurbished products topping RMB 200 million. As a result, 1P2C accounted for 45.1% of our product revenue in the first quarter of 2026, rising 12.1 percentage points from 33% year on year and 3.4 percentage points from 41.7% quarter over quarter.

Jessie Jin: As a result, 1P2C accounted for 45.1% of our product revenue in Q1 2026, rising 12.1 percentage points from 33% year on year and 3.4 percentage points from 41.7% quarter over quarter. This strategic pivot towards direct-to-consumer sales allows us to align our recycling prices with real-time retail trends, ensuring we offer better recycling prices, maintain a strong price advantage, and create greater value for end users.

[Translator]: As a result, 1P2C accounted for 45.1% of our product revenue in Q1 2026, rising 12.1 percentage points from 33% year on year and 3.4 percentage points from 41.7% quarter over quarter. This strategic pivot towards direct-to-consumer sales allows us to align our recycling prices with real-time retail trends, ensuring we offer better recycling prices, maintain a strong price advantage, and create greater value for end users.

Speaker #4: This strategic pivot toward direct-to-consumer sales allows us to align our recycling prices with real-time retail trends, ensuring we offer better recycling prices, maintain a strong price advantage, and create greater value for end users.

Speaker #3: 这一部分N减三及N减四代的优质商品，针对国际市场差异化的产品代际需求，我们进行了合规出口，扎实地扩张业务规模。这部分出口商品可以额外拓展4%以上的毛利率空间。

Kerry Chen: 对于部分N减三及N减四代的优质商品，针对国际市场差异化的产品代际需求，我们进行了合规出口，扎实地扩张业务规模。这部分出口商品可以额外拓展4%以上的毛利率空间。

Speaker #4: Regarding high-quality products from older generations, specifically M-3 and M-4 models, we targeted differentiated demand for device generations in the international markets to drive compliant exports.

Jessie Jin: Regarding high quality products from older generations, specifically N-3 and N, and N-4 models. We targeted differentiated demand for device generations in the international markets to drive compliant exports. This strategy allows us to steadily expand our global scale and unlock an additional over 4% gross profit margin.

[Translator]: Regarding high quality products from older generations, specifically N-3 and N, and N-4 models. We targeted differentiated demand for device generations in the international markets to drive compliant exports. This strategy allows us to steadily expand our global scale and unlock an additional over 4% gross profit margin.

Speaker #4: This strategy allows us to steadily expand our global scale and unlock an additional over 4% gross profit margin.

Speaker #3: 在3P业务模式下，拍剧堂也保持着健康快速的规模与收入增长。持续巩固其行业基础设施的定位，再拓展用户的过程中，拍剧堂平台向新注册签约商家提供前三单免邮优惠。同时，将服务大客户的操盘能力进行复制，通过简化标准，为中小商家降低平台的使用门槛，并提升了交易效率和便捷程度，让中小商家把货卖出更好的价格。

Kerry Chen: 在3P业务模式下，拍机堂也保持着健康快速的规模与收入增长，持续巩固其行业基础设施的定位。在拓展用户的过程中，拍机堂平台向新注册签约商家提供前三单免邮优惠。同时将服务大客户的操盘能力进行复制，通过简化标准为中小商家降低平台的使用门槛，并提升了交易效率和便捷程度，让中小商家把货卖出更好的价格。

Speaker #4: Turning to our 3T business, PJT marketplace also delivered healthy and rapid growth in both scale and revenue, further reinforcing its position as industry infrastructure.

Jessie Jin: Turning to our 3P business, PJT Marketplace also delivered healthy and rapid growth in both scale and revenue, further reinforcing its position as industry infrastructure. As we onboarded more new users, we offered free shipping on the first 3 orders to those new users on PJT Marketplace. We are also replicating the operational capabilities PJT Marketplace has built in serving large clients and extending them to small and medium-sized merchants. By streamlining platform processes, we have lowered the barrier to using the platform and improved both transaction efficiency and convenience, enabling small and medium-sized merchants to sell their products at better prices.

[Translator]: Turning to our 3P business, PJT Marketplace also delivered healthy and rapid growth in both scale and revenue, further reinforcing its position as industry infrastructure. As we onboarded more new users, we offered free shipping on the first 3 orders to those new users on PJT Marketplace. We are also replicating the operational capabilities PJT Marketplace has built in serving large clients and extending them to small and medium-sized merchants. By streamlining platform processes, we have lowered the barrier to using the platform and improved both transaction efficiency and convenience, enabling small and medium-sized merchants to sell their products at better prices.

Speaker #4: As we onboarded more new users, we offered free shipping on the first three orders to those new users on PJT marketplace. We are also replicating the operational capabilities PJT marketplace has built in serving large clients and extending them to small and medium-sized merchants.

Speaker #4: By streamlining platform processes, we have lowered the barrier to using platform and improved both transaction efficiency and convenience. Enabling small and medium-sized merchants to sell their products at better prices.

Speaker #3: 拍剧堂发挥行业最大的B2B交易平台的供应链能力，为中小商家提供优质货源，通过抖音供应链做好分散下沉。截止一季度末，拍剧堂平台的注册商家总数近200万，同比增长接近三倍。其中，注册签约买家用户数快速增长超过120%。在此过程中，我们看到越来越多的偏好性价比的小微用户到平台上面来淘货，这也验证了拍剧堂供应链分散下沉策略有效落地。

Kerry Chen: 拍机堂发挥行业最大的B2B交易平台的供应链能力，为中小商家提供优质货源，通过抖音供应链做好分拣下沉。截止一季度末，拍机堂平台的注册商家总数近200万，同比增长接近3倍。其中注册签约买家用户数快速增长超过120%。在这过程中，我们看到越来越多的偏好性价比的小微用户到平台上面来淘货，这也验证了拍机堂供应链分散下沉策略有效落地。

Speaker #4: Leveraging PJT marketplace's robust supply chain capabilities as an industry's leading B2B platform, we deliver high-quality supplies to those merchants while reaching fragmented markets through Douyin's user base, by the end of the first quarter, the number of total registered merchants on PJT marketplace nearly doubled year over year to almost 2 million.

Jessie Jin: Leveraging PJT Marketplace's robust supply chain capabilities as the industry's leading B2B platform, we deliver high quality supplies to those merchants while reaching fragmented markets through Douyin's user base. By the end of Q1, the number of total registered merchants on PJT Marketplace nearly doubled year-over-year to almost 2 million. Notably, the number of registered contracted buyers surged by over 120% as an influx of small and micro buyers seeking high quality value for money products came up to the platform. This validates the effective implementation of our PJT Marketplace supply chain strategy to penetrate fragmented markets.

[Translator]: Leveraging PJT Marketplace's robust supply chain capabilities as the industry's leading B2B platform, we deliver high quality supplies to those merchants while reaching fragmented markets through Douyin's user base. By the end of Q1, the number of total registered merchants on PJT Marketplace nearly doubled year-over-year to almost 2 million. Notably, the number of registered contracted buyers surged by over 120% as an influx of small and micro buyers seeking high quality value for money products came up to the platform. This validates the effective implementation of our PJT Marketplace supply chain strategy to penetrate fragmented markets.

Speaker #4: Mostly, the number of registered contracted buyers surged by over 120%, as an influx of small and micro buyers seeking high-quality, value-for-money products came up to the platform.

Speaker #4: This validates the effective implementation of our PJT marketplace supply chain strategy to penetrate fragmented markets.

Speaker #3: 在3P模式下，拍拍仍在向寄卖模式做倾斜，由拍拍团队提供更标准化、经营起来更轻松的二手零售服务。自去年二季度以来，拍拍寄卖进一步帮用户帮商家打通了多元的严选渠道的销路，一季度寄卖业务规模保持了快速的双位数增长。待二手用户走进终端用户，在待二手零售商家走进终端用户。

Kerry Chen: 在三拼模式下，拍拍仍在向寄卖模式做倾斜，由拍拍团队提供更标准化、经营起来更轻松的二手零售服务。自去年二季度以来，拍拍寄卖进一步帮用户、帮商家打通了多元的严选渠道的销路。一季度寄卖业务规模保持了快速的双位数增长，带二手用户走进终端用户，带二手零售商家走进终端用户。

Speaker #4: In our 3P business model, Paipai continues to shift toward the consignment model, and in this model, the Paipai team provides merchants with standardized operational services, making the pre-owned retail easier for them to manage.

Jessie Jin: In our 3P business model, Paipai continues to shift towards the consignment model. Under this model, the Paipai team provides merchants with standardized operational services, making the pre-owned retail easier for them to manage. Since Q2 of last year, Paipai Consignment has continued to provide merchants with broader access to curated retail channels. In Q1, the consignment business maintained a rapid double-digit growth, helping pre-owned retail merchants move closer to consumers.

[Translator]: In our 3P business model, Paipai continues to shift towards the consignment model. Under this model, the Paipai team provides merchants with standardized operational services, making the pre-owned retail easier for them to manage. Since Q2 of last year, Paipai Consignment has continued to provide merchants with broader access to curated retail channels. In Q1, the consignment business maintained a rapid double-digit growth, helping pre-owned retail merchants move closer to consumers.

Speaker #4: Since the second quarter of last year,拍拍 consignment has continued to provide merchants with broader access to curated retail channels. In the first quarter, the consignment business maintained a rapid double-digit growth, helping pre-owned retail merchants move closer to consumers.

Speaker #3: COVID-19回收于一季度保持了高速的业绩增长，整体回收规模同比增长81.5%，其中黄金交易规模增速83.3%。二次二的交易规模增速58.8%，均呈现扎实的成长性。截止今年的3月末，我们在966家二回收门店开通了多品类回收业务，较去年3月末增加了近300家。预计今年年内我们将在更多的二回收自营门店开通多品类回收能力，包括与更多的加盟商协作，建设黄金回收等服务能力。结合多品类的业务发展，二回收门店的位置和空间都在升级，为新老用户提供更好的交付环境和品牌价值传递。

Kerry Chen: 多品类回收于一季度保持了高速的业绩增长，整体回收规模同比增长81.5%，其中黄金交易规模增速83.3%，二手的交易规模增速58.8%，均呈现扎实的成长性。截止今年的三月末，我们在966家爱回收门店开通了多品类回收业务，较去年三月末增加了近300家。预计今年年内，我们将在更多的爱回收直营门店开通多品类回收能力，包括与更多的加盟商协作建设黄金回收等服务能力，结合多品类的业务发展，爱回收门店的位置和空间都在升级，为新老用户提供更好的交互环境和品牌价值传递。

Speaker #4: Multi-category recycling sustained rapid growth in the first quarter, with overall recycling GMV up 81.5% year over year. Among them, gold recycling GMV grew 83.3%, and second-hand luxury recycling GMV grew 58.8%.

Jessie Jin: Multi-category recycling sustained rapid growth in Q1, with overall recycling GMV up 81.5% year-over-year. Among them, gold recycling GMV grew 83.3%, and secondhand luxury recycling GMV grew 58.8%, both showing solid growth momentum. By the end of March, we launched multi-category recycling services across 966 AHS stores, adding nearly 300 stores compared to the end of March last year. Looking ahead, we expect to roll out this capacity to more self-operated AHS stores through the rest of the year, while also working with more franchisees to build gold recycling service capabilities. Alongside the growth of our multi-category business, we are also upgrading the locations and layouts of our stores, creating a better fulfillment experience and conveying greater brand value to both new and existing users.

[Translator]: Multi-category recycling sustained rapid growth in Q1, with overall recycling GMV up 81.5% year-over-year. Among them, gold recycling GMV grew 83.3%, and secondhand luxury recycling GMV grew 58.8%, both showing solid growth momentum. By the end of March, we launched multi-category recycling services across 966 AHS stores, adding nearly 300 stores compared to the end of March last year. Looking ahead, we expect to roll out this capacity to more self-operated AHS stores through the rest of the year, while also working with more franchisees to build gold recycling service capabilities. Alongside the growth of our multi-category business, we are also upgrading the locations and layouts of our stores, creating a better fulfillment experience and conveying greater brand value to both new and existing users.

Speaker #4: Both showing solid growth momentum. By the end of March, we launched multi-category recycling services across 966 AHS stores adding nearly 300 stores compared to the end of March last year.

Speaker #4: Looking ahead, we expect to roll out this capacity to more self-operated AHS stores through the rest of the year, while also working with more franchisees to build gold recycling service capabilities.

Speaker #4: Alongside the growth of our multi-category business, we are also upgrading the locations and layouts of our stores, creating a better fulfillment experience and conveying greater brand value to both new and existing users.

Speaker #3: 综上，第一季度3P的服务综合收费率为4.92%，符合我们的业务预期。

Kerry Chen: 综上，第一季度3P的服务综合收费率为4.92%，符合我们的业务预期。

Speaker #4: In summary, the overall 3P service take rate was 4.92% in the first quarter, in line with our expectations.

Jessie Jin: In summary, the overall 3P service take rate was 4.92% in Q1, in line with our expectations.

[Translator]: In summary, the overall 3P service take rate was 4.92% in Q1, in line with our expectations.

Speaker #3: 以上业绩印证了我们此前分享的三级发展战略的有效性。基于2026年的市场动态，我们再次重申，再次复盘战略的长期性。第一级战略，继续夯实二手手机3C业务基本盘的健康增长，待在二手行业的品类判断中，我们识别到具备规模和巨大渗透率发展空间的二手手机3C品类，在国家以旧换新促进消费和行业升级的过程中，我们积极布局回收和以旧换新的场景，加强二回收的品牌心智建设，来服务更广泛的用户的汰换和升级需求，为更多电子产品实现第二生命周期，并为社会创造更多价值。过程中，我们坚定地建设一批能力，增加对AI工具的使用，做好价格体验，终端用户的服务，供应链的效率，通过合规翻新来扩大产业链的价值厚度，通过更多比例的QC零售来提升产业链的价值。

Kerry Chen: 以上业绩印证了我们此前分享的三级发展战略的有效性。基于2026年的市场动态，我们再次重申，再次复盘战略的长期性。第一级战略继续，继续夯实二手手机3C业务基本盘的健康增长。在二手行业的品类判断中，我们识别到具备规模和巨大渗透率发展空间的二手手机3C品类。在国家以旧换新、促进消费和行业升级的过程中，我们积极布局回收和以旧换新的场景，加强爱回收的品牌心智建设，来服务更广泛的用户的汰换和升级需求，为更多电子产品实现第二生命周期，并为社会创造更多价值。过程中，我们坚定地建设1P能力，增加对AI工具的使用，做好价格体验、终端用户的服务、供应链的效率，通过合规翻新来扩大产业链的价值厚度，通过更多比例的To C零售来提升产业链的价值。

Speaker #4: These results validated the effectiveness of the three-stage development strategy we previously shared. Based on 2026 market dynamics, let me revisit the long-term nature of our strategy.

Jessie Jin: These results validated the effectiveness of the 3-stage development strategy we previously shared. Based on 2026 market dynamics, let me revisit the long-term nature of our strategy. Stage 1, we continue to solidify the healthy growth of our core secondhand consumer electronics business. In our category assessment within the secondhand industry, we identified secondhand consumer electronics as a category with both scale and enormous room for further penetration.

[Translator]: These results validated the effectiveness of the 3-stage development strategy we previously shared. Based on 2026 market dynamics, let me revisit the long-term nature of our strategy. Stage 1, we continue to solidify the healthy growth of our core secondhand consumer electronics business. In our category assessment within the secondhand industry, we identified secondhand consumer electronics as a category with both scale and enormous room for further penetration.

Speaker #4: Stage one, we continue to solidify the healthy growth of our core second-hand consumer electronics business. In our category assessment within the second-hand industry, we identified second-hand consumer electronics as a category with both scale and enormous room for further penetration.

Speaker #4: As national trading policies promote consumption and industry upgrades, we are actively positioning ourselves in recycling and trading scenarios, strengthening the brand recognition of AHS Recycle to serve broader user replacement and upgrade needs, enabling more electronic products to achieve a second-hand life cycle, and creating greater value for society.

Jessie Jin: As national trade-in policies promote consumption and industry upgrades, we are actively positioning ourselves in recycling and trade-in scenarios, strengthening the brand recognition of AHS Recycle to serve broader user replacement and upgrade needs, enabling more electronic products to achieve a secondhand life, a second lifecycle, and creating greater value for society. Throughout this process, we are steadfastly building our business capabilities, increasing our use of AI tools, optimizing pricing experiences and end user services and supply chain efficiency, while expanding our industry value chain through compliant refurbishment and creating more value to retail users through higher portion of retail sales.

[Translator]: As national trade-in policies promote consumption and industry upgrades, we are actively positioning ourselves in recycling and trade-in scenarios, strengthening the brand recognition of AHS Recycle to serve broader user replacement and upgrade needs, enabling more electronic products to achieve a secondhand life, a second lifecycle, and creating greater value for society. Throughout this process, we are steadfastly building our business capabilities, increasing our use of AI tools, optimizing pricing experiences and end user services and supply chain efficiency, while expanding our industry value chain through compliant refurbishment and creating more value to retail users through higher portion of retail sales.

Speaker #4: Throughout this process, we are steadfastly building our 1P business capabilities, increasing our use of AI tools, optimizing pricing experiences, and end user services, and supply chain efficiency, while expanding our industry value chain through compliant refurbishment and creating more value to retail users through higher portion of retail sales.

Speaker #3: 第二级战略，持续加强二回收国民第一回收品牌的定位。我们相信在二手服务行业里面，价格、信任、便捷是长期的用户体验三角。在行业的长期发展路径中，品牌是具有长期价值的。我们在以旧换新场景之外，再抖音、小红书保持对二回收品牌的独立且审慎的品牌投入，结合返还新增项目，二回收联动越来越多的消费品牌，从社区到商圈到校园到职场，走进更多大众消费商圈，占据独特的场景与地理位置，鼓励更多年轻用户参与到回收与绿色消费。

Kerry Chen: 第二级战略，持续加强爱回收国民第一回收品牌的定位。我们相信在二手服务行业里面，价格、信任、便捷是长期的用户体验三角。在行业的长期发展路径中，品牌是具有长期价值的。我们在以旧换新场景之外，在抖音、小红书保持对爱回收品牌的独立且审慎的品牌投入。结合反黄兴升项目，爱回收联动越来越多的消费品牌，从社区到商圈，到校园，到职场，走进更多大众消费商圈，占据独特的场景与地理位置，鼓励更多年轻用户参与到回收与绿色消费。

Speaker #4: Stage two, we are strengthening AHS Recycle's position as China's leading recycling brand. We believe that in the second-hand service industry, pricing, trust, and convenience are the three core pillars that define the long-term user experience. In the industry's long-term development path, brand equity holds enduring value.

Jessie Jin: Stage 2, we are strengthening AHS Recycle's position as China's leading recycling brand. We believe that in the secondhand service industry, pricing, trust, and convenience are the three core pillars that define the long-term user experience and an industry's long-term development path. Brand equity holds enduring value. Beyond trade-in scenarios, we maintain independent and prudent brand investments in AHS Recycle across Douyin and Xiaohongshu. Combined with the Revive initiative, AHS Recycle has partnered with an increasing number of consumer brands to penetrate more mainstream commercial districts, from local communities to shopping districts, from campuses to workplaces. By securing these unique scenarios and locations, AHS Recycle encourages more younger users to participate in recycling and green consumption.

[Translator]: Stage 2, we are strengthening AHS Recycle's position as China's leading recycling brand. We believe that in the secondhand service industry, pricing, trust, and convenience are the three core pillars that define the long-term user experience and an industry's long-term development path. Brand equity holds enduring value. Beyond trade-in scenarios, we maintain independent and prudent brand investments in AHS Recycle across Douyin and Xiaohongshu. Combined with the Revive initiative, AHS Recycle has partnered with an increasing number of consumer brands to penetrate more mainstream commercial districts, from local communities to shopping districts, from campuses to workplaces. By securing these unique scenarios and locations, AHS Recycle encourages more younger users to participate in recycling and green consumption.

Speaker #4: Beyond trade-in scenarios, we maintain independent and prudent brand investments in AHS recycle across Douyin and Xiaohongshu, combined with the revive initiative, AHS recycle has partnered with an increasing number of consumer brands to penetrate more mainstream commercial districts from local communities to shopping districts, from campuses to workplaces.

Speaker #4: By securing this unique scenarios and locations, AHS recycle encourages more younger users to participate in recycling and grain consumption.

Speaker #3: 第三级战略，推进海外战略的突破。海外市场的B2B业务是我是一个我们熟悉的商业模式。通过国行产品出口、外销、积累口碑与能力，持续推进在海外版拍子党的全球B2B平台和产品研发方面的探索，并有节奏地推进直接服务C端用户的能力建设。

Kerry Chen: 第三级战略，推进海外战略的突破。海外市场的B2B业务是一个我们熟悉的商业模式。通过国行产品出口、外销积累口碑与能力，持续推进在海外版拍机堂的全球B2B平台和产品研发方面的探索，并有节奏地推进直接服务C端用户的能力建设。

Speaker #4: Stage three, we continue to advance breakthroughs in our overseas strategy. The B2B business in overseas markets represents a business model we are familiar with.

Jessie Jin: Stage 3, we continue to advance breakthroughs in our overseas strategy. The B2B business in overseas markets represents a business model we are familiar with. By accumulating reputation and capabilities of export of China source supplies, we continue to explore global version of PJT Marketplace and product development, while systematically building capabilities to directly serve end consumers.

[Translator]: Stage 3, we continue to advance breakthroughs in our overseas strategy. The B2B business in overseas markets represents a business model we are familiar with. By accumulating reputation and capabilities of export of China source supplies, we continue to explore global version of PJT Marketplace and product development, while systematically building capabilities to directly serve end consumers.

Speaker #4: By accumulating reputation and capabilities of export of China-sourced supplies, we continue to explore global versions of TJT marketplace and product development while systematically building capabilities to directly serve end consumers.

Speaker #3: 德国2026年以来的市场环境，据行业数据显示，中国市场的新机出货量小幅下滑4%。不过，从品牌结构来看，二手市场具有主流地位的苹果与华为产品，在新机市场出现了逆势的上涨。这得益于更具优势的供应链能力与定价。为此，我们此前判断的三个机遇方向得以验证及：一，二手市场的价格走势整体平稳坚挺，夯实了行业长期健康发展的基础；第二，与我们业务核心驱动力高度相关的苹果产品在市场份额方面显示出很大的优势；第三，品牌厂商与平台对以旧换新的重视度和投入仍在提升。我们获取一手货源、一手回收货源的效率得到保障。

Kerry Chen: 回顾2026年以来的市场环境，据行业数据显示，中国市场的新机出货量小幅下滑4%。不过从品牌结构来看，二手市场具有主流地位的苹果与华为产品在新机市场出现了逆势的上涨，这得益于更具优势的供应链能力与定价。为此，我们此前判断了三个机遇方向得于验证。即，一、二手市场的价格走势整体平稳坚挺，夯实了行业长期健康发展的基础。第二点，与我们业务核心驱动力高度相关的苹果产品在市场份额方面显示出很大的优势。第三点，品牌厂商与平台对以旧换新的重视度和投入仍在提升。我们获取一手货源、回收货源的效率得到保障。

Speaker #4: Now let me share a few thoughts on the 2026 market environment. In industry data shows that new device shipments in China have dipped slightly this year by about 4%.

Jessie Jin: Now let me share a few thoughts on the 2026 market environment. Industry data shows that new device shipments in China have dipped slightly this year by about 4%. However, if we look at the brand mix, Apple and Huawei remain mainstream brands in the pre-owned market. Both grew against the broader trend in the new device market, supported by their supply chain capabilities and pricing advantages. This has validated the three opportunities we previously identified. First, pricing trends in the pre-owned market remain broadly stable and resilient, laying a solid foundation for the long term healthy development for the industry. Second, Apple products, which are closely tied to our core business drivers, have demonstrated market share advantages. Third, brands and platforms continue to place greater emphasis on trade-in programs. Their increased investments here supports our efficiency in acquiring first hand recycling supplies.

[Translator]: Now let me share a few thoughts on the 2026 market environment. Industry data shows that new device shipments in China have dipped slightly this year by about 4%. However, if we look at the brand mix, Apple and Huawei remain mainstream brands in the pre-owned market. Both grew against the broader trend in the new device market, supported by their supply chain capabilities and pricing advantages. This has validated the three opportunities we previously identified. First, pricing trends in the pre-owned market remain broadly stable and resilient, laying a solid foundation for the long term healthy development for the industry. Second, Apple products, which are closely tied to our core business drivers, have demonstrated market share advantages. Third, brands and platforms continue to place greater emphasis on trade-in programs. Their increased investments here supports our efficiency in acquiring first hand recycling supplies.

Speaker #4: However, if we look at the brand mix, Apple and Huawei remain mainstream brands in the pre-owned market. Both grew against a broader trend in the new device market, supported by their supply chain capabilities and pricing advantages.

Speaker #4: This has validated the three opportunities we previously identified. First, pricing trends in the pre-owned market remain broadly stable and resilient, laying a solid foundation for the long-term healthy development of the industry.

Speaker #4: Second, Apple products, which are closely tied to our core business drivers, have demonstrated market share advantages. Third, brands and platforms continue to place greater emphasis on trading programs.

Speaker #4: Their increased investment here supports our efficiency in acquiring first-hand recycling supplies.

Speaker #3: 因此，我们预期今年可以实现扎实且快速的规模增长。结合高效的自动化自检技术和供应链增值能力，我们的规模效应可以得到进一步的体现。

Kerry Chen: 因此，我们预期今年可以实现扎实且快速的规模增长，结合高效的自动化质检技术和供应链增值能力，我们的规模效应可以得到进一步的体现。

Speaker #4: Taking these together, we expect to deliver robust and rapid growth this year by leveraging our efficient automated quality inspection technology and value-added supply chain capabilities.

Jessie Jin: Taking these together, we expect to deliver robust and rapid growth this year by leveraging our efficient automated quality inspection technology and value added supply chain capabilities, we will further unlock economies of scale.

[Translator]: Taking these together, we expect to deliver robust and rapid growth this year by leveraging our efficient automated quality inspection technology and value added supply chain capabilities, we will further unlock economies of scale.

Speaker #4: We will further unlock economies of scale.

Speaker #3: 下面请Circle Reps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。

Speaker #4: Now I'd like to turn the call over to our CFO Rex for financial updates.

Jessie Jin: Now I'd like to turn the call over to our CFO Rex for financial updates.

[Translator]: Now I'd like to turn the call over to our CFO Rex for financial updates.

Speaker #5: 各位投资和分析师大家好，我很高兴向大家分享公司2026年第一季度的业绩表现。我们的收入快速增长，盈利水平创下历史新高。随着中国循环经济的持续深化以及消费电子旧换新政策的延续，一季度我们充分发挥一手回收货源场景与面对面履约交付能力优势，深化供应链与零售能力建设，进一步加强化该回收的品牌心智，延续了良好的增长势头。

Rex Chen: 各位投资者和分析师大家好，我很高兴向大家分享公司2026年第一季度的业绩表现。我们的收入快速增长，盈利水平创下历史新高。随着中国循环经济的持续深化，以及消费电子旧换新政策的延续，一季度，我们充分发挥一手回收货源场景与面对面预约交付能力优势，深化供应链与零售能力建设，进一步加强爱回收的品牌心智，延续了良好的增长势头。

Speaker #4: Good day, everyone. I'm pleased to share our financial performance for the first quarter of 2026. Our revenues grew rapidly, and profits reached a record high.

Jessie Jin: Good day everyone. I'm pleased to share our financial performance for Q1 2026. Our revenues grew rapidly and profits reached a record high. As China's circular economy continues to advance and trade-in programs for consumer electronics remain ongoing, we sustained strong growth momentum in Q1. During the quarter, we leveraged our direct to customer recycling scenarios and face-to-face fulfillment capabilities, enhanced our supply chain and retail capabilities, and further strengthened our user mindshare of the AHS Recycle brand.

[Translator]: Good day everyone. I'm pleased to share our financial performance for Q1 2026. Our revenues grew rapidly and profits reached a record high. As China's circular economy continues to advance and trade-in programs for consumer electronics remain ongoing, we sustained strong growth momentum in Q1. During the quarter, we leveraged our direct to customer recycling scenarios and face-to-face fulfillment capabilities, enhanced our supply chain and retail capabilities, and further strengthened our user mindshare of the AHS Recycle brand.

Speaker #4: As China's circular economy continues to advance and trade-in programs for consumer electronics remain ongoing, our sustained strong growth momentum in the first quarter. During the quarter, we leveraged our direct-to-customer recycling scenarios and face-to-face fulfillment capabilities, enhanced our supply chain and retail capabilities, and further strengthened user mindshare of the AHS recycle brand.

Speaker #5: 第一季度收入突破指引出现高端达到61.6亿元，同比增长32.4%。冷gap净利润超1.9亿元，同比增长70.2%。

Rex Chen: 一季度收入突破指引，触及高端，达到61.6亿元，同比增长32.4%。Non-GAAP经营利润超1.9亿元，同比增长70.2%。

Speaker #4: In the first quarter, total revenue exceeded the high end of our guidance, increasing by 32.4% to 6.16 billion RMB, while non-gap operating income surged by 70.2% to over 190 million RMB.

Jessie Jin: In Q1, total revenue exceeded the high end of our guidance, increasing by 32.4% to RMB 6.16 billion, while Non-GAAP operating income surged by 70.2% to over RMB 190 million.

[Translator]: In Q1, total revenue exceeded the high end of our guidance, increasing by 32.4% to RMB 6.16 billion, while Non-GAAP operating income surged by 70.2% to over RMB 190 million.

Speaker #3: 在解读财务数据之前，请注意，除非另有说明，所有金融的均以人民币为单位。所有增速数据均为同比。

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，所有数据均为同比。

Speaker #4: Before we review the financials in detail, please note that all figures are in RMB and all comparisons are on a year-over-year basis unless otherwise stated.

Jessie Jin: Before we review the financials in detail, please note that all figures are in RMB and all comparisons are on a year-over-year basis unless otherwise stated.

[Translator]: Before we review the financials in detail, please note that all figures are in RMB and all comparisons are on a year-over-year basis unless otherwise stated.

Speaker #5: 第一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34.4%，自57.3亿元，主要得益于公司线上渠道二手消费电子产品销售的增长。

Rex Chen: 一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34.4%，至57.3亿元。主要得益于公司线上渠道二手消费电子产品销售的增长。

Speaker #4: In the first quarter, total revenue growth was primarily driven by continued growth in net product revenue. Net product revenues increased by 34.4% to $5.73 billion, largely attributable to the growth in online sales of pre-owned consumer electronics.

Jessie Jin: In Q1, total revenue growth was primarily driven by continued growth in net product revenue. Net product revenues increased by 34.4% to CNY 5.73 billion, largely attributable to the growth in online sales of pre-owned consumer electronics.

[Translator]: In Q1, total revenue growth was primarily driven by continued growth in net product revenue. Net product revenues increased by 34.4% to CNY 5.73 billion, largely attributable to the growth in online sales of pre-owned consumer electronics.

Speaker #5: 服务收入为4.3亿元，同比增长10.4%，主要得益于拍机堂业务以及平台模式开展的多种类回收业务，贡献了服务收入增长。一季度平台综合收费率为4.92%，本季度多品类回收业务贡献超8,300万元服务收入，占服务收入19.3%。

Rex Chen: 服务收入为4.3亿元，同比增长10.4%。主要得益于拍机堂业务以及平台模式开展多品类回收业务贡献的服务收入增长。一季度平台综合收费率为4.92%。本季度多品类回收业务贡献超8,300万元服务收入，占服务收入19.3%。

Speaker #4: Net service revenues were 430 million in the first quarter, representing an increase of 10.4%. The increase was largely driven by PJT marketplace and multi-category recycling business.

Jessie Jin: Net service revenues were 430 million in Q1, representing an increase of 10.4%. The increase was largely driven by PJT Marketplace and multi-category recycling business. The overall take rate of our marketplace was 4.92% for Q1 2026. During the quarter, our multi-category recycling business contributed over CNY 83 million in revenue, accounting for 19.3% of service revenues.

[Translator]: Net service revenues were 430 million in Q1, representing an increase of 10.4%. The increase was largely driven by PJT Marketplace and multi-category recycling business. The overall take rate of our marketplace was 4.92% for Q1 2026. During the quarter, our multi-category recycling business contributed over CNY 83 million in revenue, accounting for 19.3% of service revenues.

Speaker #4: The overall take rate of our marketplace was 4.92% for the first quarter of 2026. During the quarter, our multi-category recycling business contributed over 83 million RMB in revenue, accounting for 19.3% of service revenues.

Speaker #3: 在运营费用方面，我们主要讨论冷gap口径的费用分析，以展示管理团队视角的费用趋势。关于gap和冷gap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。

Rex 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。

Speaker #4: Now let's discuss operating expenses. To provide greater clarity on the trends of our actual operating-based expenses, we will mainly discuss our non-gap operating expenses, which better reflect how management views our operating results.

Jessie Jin: Now let's discuss operating expenses. To provide greater clarity on the trends of 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 to Non-GAAP results are available in our earnings release, and the corresponding Form 6-K furnished with the U.S. SEC.

[Translator]: Now let's discuss operating expenses. To provide greater clarity on the trends of 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 to Non-GAAP results are available in our earnings release, and the corresponding Form 6-K furnished with the U.S. SEC.

Speaker #4: The reconciliations of GAAP to non-GAAP results are available in our earnings release and the corresponding Form 6-K furnished with the U.S. SEC.

Speaker #5: 商品成本增加33.2%至48.2亿元，与产品销售的增长一致。我们EP业务的毛利率为15.9%，而上年同期为15.2%。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，提升毛利较高的QC零售占比，第一季度EPQC占比及产品收入中的零售收入占比达到45.1%。去年同期为33%。

Rex Chen: 商品成本增加33.2%，至48.2亿元，与产品销售的增长一致。我们1P业务的毛利率为15.9%，而上年同期为15.2%。1P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储备能力，多样化的严选零售渠道优势，提升毛利较高的2C的零售占比。第一季度1P2C占比，即产品收入中的零售收入占比达到45.1%，去年同期为33%。

Speaker #4: Merchandise costs increased by 33.2% to $4.82 billion. In line with the growth in product sales, gross profit margin for our 1P business was 15.9%, compared with 15.2% in the same period last year.

Jessie Jin: Merchandise costs increased by 33.2% to CNY 4.82 billion in line with the growth in product sales. Gross profit margin for our 1P business was 15.9%, compared with 15.2% 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 chains, and an increasingly diversified retail channel mix. This allowed us to increase the proportion of higher margin retail sales, with 1P2C revenue accounting for 45.1% of product revenue in Q1 2026, up from 33% in the same period last year.

[Translator]: Merchandise costs increased by 33.2% to CNY 4.82 billion in line with the growth in product sales. Gross profit margin for our 1P business was 15.9%, compared with 15.2% 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 chains, and an increasingly diversified retail channel mix. This allowed us to increase the proportion of higher margin retail sales, with 1P2C revenue accounting for 45.1% of product revenue in Q1 2026, up from 33% in the same period last year.

Speaker #4: The gross margin improvement in our 1P business—this was primarily driven by high-efficiency C2B recycling scenarios, compliant refurbishment capabilities incorporated in our supply chains, and an increasingly diversified retail channel mix.

Speaker #4: This allowed us to increase the proportion of higher margin retail sales, with 1P2C revenue accounting for 45.1% of product revenue in the first quarter of 2026.

Speaker #4: Up from 33% in the same period last year.

Speaker #5: 履约费用增长22.5%至5.2亿元，冷gap履约费用增长22.7%至5.2亿元，冷gap履约费用增长的主要原因有：一、2025年同期相比，回收和交易量的增加导致人力费用增加；第二点，2026年运营中心相关费用随回收与交易业务量增加而增长；冷gap履约费用率从9.1%下降至8.5%。

Rex Chen: 履约费用增长22.5%，至5.2亿元。Non-GAAP履约费用增长22.7%，至5.2亿元。Non-GAAP履约费用增长的主要原因有：一，与2025年同期相比，回收和交易量的增加导致人力费用增加。第二点，2026年运营中心相关费用随回收与交易业务量增加而增长。Non-GAAP履约费用率从9.1%下降至8.5%。

Speaker #4: Fulfillment expenses increased by 22.5% to 520 million. Non-gap fulfillment expenses increased by 22.7% to 520 million. Under the non-gap measures, the increase was mainly driven by higher personnel costs, driven by the growth of our business compared to the same period in 2025.

Jessie Jin: Fulfillment expenses increased by 22.5% to CNY 520 million. Non-GAAP fulfillment expenses increased by 22.7% to CNY 520 million. Under the Non-GAAP measures, the increase was mainly driven by higher personnel costs, driven by the growth of our business compared to the same period in 2025. Additionally, operating center-related expenses rose along with the increasing volumes of recycling and transactions. Non-GAAP fulfillment expenses as a percentage of total revenues decreased to 8.5% from 9.1%.

[Translator]: Fulfillment expenses increased by 22.5% to CNY 520 million. Non-GAAP fulfillment expenses increased by 22.7% to CNY 520 million. Under the Non-GAAP measures, the increase was mainly driven by higher personnel costs, driven by the growth of our business compared to the same period in 2025. Additionally, operating center-related expenses rose along with the increasing volumes of recycling and transactions. Non-GAAP fulfillment expenses as a percentage of total revenues decreased to 8.5% from 9.1%.

Speaker #4: Additionally, operating center-related expenses rose along with the increasing volumes of recycling and transactions. Non-gap fulfillment expenses, as a percentage of total revenues, decreased to 8.5% from 9.1%.

Speaker #5: 销售费用增加17.9%至4.9亿元，冷gap销售费用增加27%至4.9亿元，主要由于与渠道服务相关的佣金费用增加。冷gap销售费用率从8.3%下降至8%。

Rex Chen: 销售费用增加17.9%至4.9亿元，Non-GAAP销售费用增加27%至4.9亿元。主要由于与渠道服务相关的佣金费用增加，Non-GAAP销售费用率从8.3%下降至8%。

Speaker #4: Selling and marketing expenses increased by 17.9% to 490 million. Non-gap selling and marketing expenses increased by 27% to 490 million. Primarily driven by an increase in commission expenses in relation to channel service fees.

Jessie Jin: Selling and marketing expenses increased by 17.9% to CNY 490 million. Non-GAAP selling and marketing expenses increased by 27% to CNY 490 million. Primarily driven by an increase in commission expenses in relation to channel service fees. Non-GAAP selling and marketing expenses as a percentage of total revenues decreased to 8% from 8.3%.

[Translator]: Selling and marketing expenses increased by 17.9% to CNY 490 million. Non-GAAP selling and marketing expenses increased by 27% to CNY 490 million. Primarily driven by an increase in commission expenses in relation to channel service fees. Non-GAAP selling and marketing expenses as a percentage of total revenues decreased to 8% from 8.3%.

Speaker #4: Non-gap selling and marketing expenses, as a percentage of total revenues, decreased to 8% from 8.3%.

Speaker #5: 管理费用增加25.9%至7,980万元，冷gap管理费用增加33%至7,900万元，主要由于人力费用的增加。冷gap管理费用率为1.3%，同比持平。

Rex Chen: 管理费用增加25.9%至7,980万元。Non-GAAP管理费用增加33%至7,900万元，主要由于人力费用的增加。Non-GAAP管理费用率为1.3%，同比持平。

Speaker #4: General and administrative expenses increased by 25.9% to $79.8 million. Non-GAAP G&A expenses also increased by 33% to $79 million, primarily due to an increase in personnel costs.

Jessie Jin: General and administrative expenses increased by 25.9% to CNY 79.8 million. Non-GAAP G&A expenses also increased by 33% to CNY 79 million. Primarily due to an increase in personnel costs. Non-GAAP G&A expenses as a percentage of total revenues remain flat year-over-year at 1.3%.

[Translator]: General and administrative expenses increased by 25.9% to CNY 79.8 million. Non-GAAP G&A expenses also increased by 33% to CNY 79 million. Primarily due to an increase in personnel costs. Non-GAAP G&A expenses as a percentage of total revenues remain flat year-over-year at 1.3%.

Speaker #4: Non-GAAP G&A expenses, as a percentage of total revenues, remain flat year over year at 1.3%.

Speaker #5: 研发费用上升33.5%至7,340万元，冷gap研发费用上升36.4%至7,230万元，主要由于人员成本增加。冷gap研发费用率从1.1%上升至1.2%。

Rex Chen: 研发费用上升33.5%至7,340万元。Non-GAAP研发费用上升36.4%至7,230万元，主要由于人员成本增加。Non-GAAP研发费用率从1.1%上升至1.2%。

Speaker #4: Research and development expenses increased by 33.5% to 73.4 million. Non-gap R&D expenses increased by 36.4% to 72.3 million. Primarily due to an increase in personnel costs.

Jessie Jin: Research and development expenses increased by 33.5% to CNY 73.4 million. Non-GAAP R&D expenses increased by 36.4% to CNY 72.3 million. Primarily due to an increase in personnel costs. Non-GAAP R&D expenses as a percentage of total revenues increased to 1.2% from 1.1%.

[Translator]: Research and development expenses increased by 33.5% to CNY 73.4 million. Non-GAAP R&D expenses increased by 36.4% to CNY 72.3 million. Primarily due to an increase in personnel costs. Non-GAAP R&D expenses as a percentage of total revenues increased to 1.2% from 1.1%.

Speaker #4: Non-gap R&D expenses, as a percentage of total revenues, increased to 1.2% from 1.1%.

Speaker #5: 利润层面，第一季度的冷gap净利润超1.9亿元，去年同期冷gap净利润为1.1亿元，同比增长70.2%。本季度冷gap净利润率为3.1%，去年同期为2.4%。较上年同期增长69个基点。

Rex Chen: 利润层面，第一季度的Non-GAAP经营利润超1.9亿元，去年同期Non-GAAP经营利润为1.1亿元，同比增长70.2%。本季度Non-GAAP经营利润率为3.1%，去年同期为2.4%，较上年同期增长69个基点。

Speaker #4: As a result, our non-GAAP operating income exceeded $190 million in the first quarter of 2026, compared to non-GAAP operating income of $110 million in the first quarter of 2025, representing an increase of 70.2% year over year.

Jessie Jin: As a result, our Non-GAAP operating income exceeded CNY 190 million in Q1 2026, compared to Non-GAAP operating income of CNY 110 million in Q1 2025, representing an increase of 70.2% year over year. Non-GAAP operating profit margin was 3.1% for the quarter, compared to 2.4% in Q1 2025, representing an increase of 69 basis points.

[Translator]: As a result, our Non-GAAP operating income exceeded CNY 190 million in Q1 2026, compared to Non-GAAP operating income of CNY 110 million in Q1 2025, representing an increase of 70.2% year over year. Non-GAAP operating profit margin was 3.1% for the quarter, compared to 2.4% in Q1 2025, representing an increase of 69 basis points.

Speaker #4: Non-gap operating profit margin was 3.1% for the quarter, compared to 2.4% in the first quarter of 2025, representing an increase of 69 basis points.

Speaker #5: 截至2026年3月23日的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17.2亿元。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。

Rex Chen: 截至2026年3月31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17.2亿元。公司的资金储备充足，能够支持业务发展、再投入和股东回报。

Speaker #4: As of March 31st, 2026, cash and cash equivalent restricted cash short-term investments and funds receivable from third-party payment service providers, total 1.72 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.

Jessie Jin: As of 31 March 2026, cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers totaled CNY 1.72 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.

[Translator]: As of 31 March 2026, cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers totaled CNY 1.72 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.

Speaker #5: 第一季度我们使用了约270万美元回购近50万股AES。自2025年6月30日经董事会批准，我们启动了至多为期12个月的回购计划，可以至多回购5,000万美元的股票。截至今年3月31日，我们在该计划下一共回购了近1,100万美元的股票。今天在董事会的批准下，我们将该回购计划延长12个月有效期，总额度及条款保持不变。

Rex Chen: 第一季度我们使用了约270万美元回购近50万股ADS。自2025年6月三十日经董事会批准，我们启动了至多为期十二个月的回购计划，可以至多回购5,000万美元的股票。截至今年三月三十一日，我们在该计划下，一共回购了近1,100万美元的股票。今天在董事会的批准下，我们将该回购计划延长十二个月有效期，总额度及条款保持不变。

Speaker #4: During the first quarter of 2026, we repurchased a total of approximately 0.5 million ADSs for approximately 2.7 million US dollars. On June 30th, on June 30th, 2025, the board has authorized a share repurchase program under which the company may repurchase up to 50 million US dollars of our shares over 12 months.

Jessie Jin: During Q1 2026, we repurchased a total of approximately 0.5 million ADSs for approximately $2.7 million. On 30 June 2025, the board has authorized a share repurchase program under which the company may repurchase up to $50 million of our shares over 12 months. As of 30 March 2026, we repurchased approximately $11 million under this program. Today, the board has authorized the extension of the existing share repurchase program for 12 months from 30 June 2026, with key terms unchanged.

[Translator]: During Q1 2026, we repurchased a total of approximately 0.5 million ADSs for approximately $2.7 million. On 30 June 2025, the board has authorized a share repurchase program under which the company may repurchase up to $50 million of our shares over 12 months. As of 30 March 2026, we repurchased approximately $11 million under this program. Today, the board has authorized the extension of the existing share repurchase program for 12 months from 30 June 2026, with key terms unchanged.

Speaker #4: As of March 30, 2026, we repurchased approximately $11 million under this program. Today, the board has authorized the extension of the existing share repurchase program for 12 months from June 30, 2026, with key terms unchanged.

Speaker #5: 关于2026年第二季度的指引，我们预计总收入将在62.4亿元至63.4亿元。对应同比增长25%到27%。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。

Rex Chen: 关于2026年第二季度的指引，我们预计总收入将在62.4亿元至63.4亿元，对应同比增长25%到27%。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。

Speaker #4: Now turning to the business outlook. For the second quarter of 2026, we anticipate total revenues to be between 6,240 million RMB to 6,340 million RMB, representing an increase of 25% to 27% year over year.

Jessie Jin: Now turning to the business outlook. For Q2 2026, we anticipate total revenues to be between RMB 6,240 to 6,340 million, representing an increase of 25% to 27% year over year. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change.

[Translator]: Now turning to the business outlook. For Q2 2026, we anticipate total revenues to be between RMB 6,240 to 6,340 million, representing an increase of 25% to 27% year over year. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change.

Speaker #4: Please note that this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change.

Speaker #5: 以上是我们的业绩重点分享。欢迎各位提问交流。

Rex 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.

Jessie Jin: This concludes our prepared remarks. Operator, we are now ready to take questions.

[Translator]: This concludes our prepared remarks. Operator, we are now ready to take questions.

Speaker #1: 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.

Operator: 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 you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like 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. The first question today comes from Raphael Tse with DBS. Please go ahead.

Speaker #1: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two.

Speaker #1: 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.

Speaker #1: The first question today comes from Rafael Tse with DBS. Please go ahead.

Speaker #2: Hey, Weiwei. 各位观众想听到吗？

Raphael Tse: 各位管理层听到吗？

Speaker #3: 可以听到。

Jessie Jin: 可以听到。

Speaker #2: 好的。Carry on, rest on。大家各位观众请晚上好。我是DBS的Rafael，然后非常恭喜公司一季度有非常亮丽的业绩。想请问管理层对于2026年全年的收入与利润的增长有没有新的指引？I'll recap in English. Congratulations for the brilliant first quarter results. Does management have any updated guidance on revenue and profit growth for the full year of 2026?

Raphael Tse: 哎，好的， Kerry 总， Rex 总，大家各位管理层晚上好！我是 DBS 的 Raphael。非常恭喜公司 Q1 有非常靓丽的业绩。想请问管理层对于 2026 全年的收入与利润的增长有没有新的指引呢？ I will recap in English. Congratulations for the brilliant Q1 results. Does management have any updated guidance on revenue and profit growth for the full year of 2026? Thank you.

Speaker #2: Thank you.

Kerry Chen: 感谢提问。这个对于全年的经营目标，我们保持积极地推进。从战略角度来看，我们发展的重点仍然向覆盖产业链端到端用户体验，以与价值创造最大的自营业务倾斜。

Speaker #5: 感谢提问。对于全年的经营目标，我们保持积极的推进。从战略角度来看，我们发展的重点仍然向覆盖产业链端到端、用户体验与价值创造最大的自营业务倾斜。

Speaker #4: Thank you for the question. We continue to actively pursue our full year operating targets. From a strategic perspective, we will continue to prioritize our one-piece business, which spans the end-to-end value chain and enables us to deliver a better user experience and create greater value.

Jessie Jin: Thank you for the question. We continue to actively pursue our full year operating targets. From a strategic perspective, we will continue to prioritize our 1P business, which spans the end-to-end value chain and enables us to deliver a better user experience and create greater value.

[Translator]: Thank you for the question. We continue to actively pursue our full year operating targets. From a strategic perspective, we will continue to prioritize our 1P business, which spans the end-to-end value chain and enables us to deliver a better user experience and create greater value.

Speaker #5: 在业绩规模增长方面，我们看到了国家对消费电子以旧换新的宣传品类或扩容与切实的补贴，但随着品牌厂商与京东等平台对于以旧换新场景的专项投入，基于这样的场景，我们顺势而为，低成本、高效率的锁定更多的一手货源。节约不必要的流量营销和对高值低频消费电子产品的效果广告投入。

Kerry Chen: 在业绩规模增长方面，我们看到了国家对消费电子以旧换新的宣传、品类扩容与切实的补贴。但随着品牌厂商与京东等平台对于旧换新场景的专项投入，基于这样的场景，我们顺势而为，低成本高效率地锁定更多的一手货源，节约不必要的流量营销和对高值、低频消费电子产品的效果广告投入。

Speaker #4: In terms of scale growth, we've seen the government continue the promotion of consumer electronics trading programs. The extension of eligible categories and meaningful subsidy support, together with dedicated investments by brand manufacturers and platforms, including JD.com in trading scenarios—these factors allow us to capitalize on this momentum and secure more firsthand supply efficiently and at lower cost.

Jessie Jin: In terms of scale growth, we've seen the government's continuing the promotion of consumer electronics trading programs, the expansion of eligible categories and meaningful subsidy support, together with dedicated investments by brand manufacturers and platforms including JD.com in trading scenarios. These factors allow us to capitalize on this momentum and secure more for first hand supply efficiently and at lower costs. They also reduce our reliance on traffic driven marketing and performance advertising for high value, low frequency consumer electronics categories.

[Translator]: In terms of scale growth, we've seen the government's continuing the promotion of consumer electronics trading programs, the expansion of eligible categories and meaningful subsidy support, together with dedicated investments by brand manufacturers and platforms including JD.com in trading scenarios. These factors allow us to capitalize on this momentum and secure more for first hand supply efficiently and at lower costs. They also reduce our reliance on traffic driven marketing and performance advertising for high value, low frequency consumer electronics categories.

Speaker #4: They also reduce our reliance on traffic-driven marketing and high-value, low-frequency consumer electronics categories.

Speaker #5: 在国际业务方面，我们保持有节奏的推进。一季度海外的业务收入同比实现快速的增长，这主要得益于合规出口、供应链能力、逐步夯实后国内扎实的现有货盘支撑了这个业务的成长。同时，我们在进一步探索将国内积累的能力，包括回收交付、平台能力、自动化技术等的出口机会。我们将保持国际化探索相关投入的纪律性，更好地应用新的AI技术应用，加速从种子培育到快速成长的阶段。

Kerry Chen: 在国际业务方面，我们保持有节奏地推进。一季度呢，海外的业务收入同比实现快速的增长，这主要得益于合规出口供应链能力逐步夯实后，国内扎实的现有货盘支撑了这个业务的成长。同时呢，我们在进一步探索将国内积累的能力，包括回收交付、平台能力、自动化技术等，的出口机会。我们将保持国际化探索相关投入的纪律性，更好地应用新的AI技术应用，加速从种子培育到快速成长的阶段。

Speaker #4: For our international business, we are advancing at a steady pace. In the first quarter, overseas revenue grew rapidly year over year. This was largely driven by our solid domestic inventory base, as our compliant export supply chain capabilities gradually strengthened.

Jessie Jin: For our international business, we are advancing at a steady pace. In the first quarter, overseas revenue grew rapidly year-over-year. This was largely driven by our solid domestic inventory as a base as our combined export supply chain capabilities gradually strengthened. Meanwhile, we are exploring opportunities to bring more of the capabilities we have built in China to overseas markets. These include recessing fulfillment, platform capabilities, and export opportunities of automation technologies and among others. We will also remain disciplined in our international expansion investments, while actively applying new AI technologies to accelerate business from the incubation stage towards rapid growth.

[Translator]: For our international business, we are advancing at a steady pace. In the first quarter, overseas revenue grew rapidly year-over-year. This was largely driven by our solid domestic inventory as a base as our combined export supply chain capabilities gradually strengthened. Meanwhile, we are exploring opportunities to bring more of the capabilities we have built in China to overseas markets. These include recessing fulfillment, platform capabilities, and export opportunities of automation technologies and among others. We will also remain disciplined in our international expansion investments, while actively applying new AI technologies to accelerate business from the incubation stage towards rapid growth.

Speaker #4: Meanwhile, we are exploring opportunities to bring more of the capabilities we have built in China to overseas markets. This includes reassessing fulfillment platform capabilities and export opportunities of automation technologies, among others.

Speaker #4: We will also remain disciplined in our international expansion investments while actively applying new AI technologies to accelerate business from the incubation stage toward rapid growth.

Speaker #5: 在这里面可能预告一下，我们在希望能够在下个季度的财报会能够更新一下我们的海外战略的进展。

Kerry Chen: 在这里面可能预告一下，我们期望能够在下个季度的财报会能够更新一下我们的海外战略的进展。

Speaker #4: As a forecast, we look forward to update you with more developments from the overseas business during the next earnings conference call.

Jessie Jin: As a forecast, we look forward to update you with more developments from the overseas business during the next earnings conference call.

[Translator]: As a forecast, we look forward to update you with more developments from the overseas business during the next earnings conference call.

Speaker #5: 在效率提升方面，自营场景中灵活的履约交付能力建设、自动化质检、研发与操盘等场景的AI技术应用都将是我们加强自营能力与提效的重要事项。在AI提效领域，我们积极鼓励组织内的AI学能力学习与分享，从前端门店的集合风控、回收算法的优化、代码效率的提升等多个领域积累能力，并逐步扩大应用范围，为长期的组织提效与盈利提升做储备。

Kerry Chen: 在效率提升方面，自营场景中灵活的履约交付能力建设、自动化质检、研发与操盘等场景的AI技术应用，都将是我们加强自营能力与提效的重要事项。在AI提效领域，我们积极鼓励组织内的AI能力学习与分享，从前端门店的稽核风控、回收算法的优化、代码效率的提升等多个领域积累能力，并逐步扩大应用范围，为长期的组织提效与盈利提升做储备。

Speaker #4: Regarding efficiency improvements, building flexible fulfillment capabilities in our one-piece scenarios, as well as integrating AI across automated quality inspection R&D and operations, will be key priorities as we strengthen our one-piece model.

Jessie Jin: Regarding efficiency improvements, building flexible fulfillment capabilities in our scenarios, as well as integrating AI across automated quality inspection, R&D and operations, will be key priorities as we strengthen our model. In terms of AI enabled productivity, we actively encourage AI learning and knowledge sharing across the organization. We have already made progress in areas such as in-store compliance, audits and risk control, re-assessing pricing, algorithm optimization, and coding efficiency. Going forward, we will gradually expand these applications, laying the groundwork for long term organizational efficiency gains and improved profitability.

[Translator]: Regarding efficiency improvements, building flexible fulfillment capabilities in our scenarios, as well as integrating AI across automated quality inspection, R&D and operations, will be key priorities as we strengthen our model. In terms of AI enabled productivity, we actively encourage AI learning and knowledge sharing across the organization. We have already made progress in areas such as in-store compliance, audits and risk control, re-assessing pricing, algorithm optimization, and coding efficiency. Going forward, we will gradually expand these applications, laying the groundwork for long term organizational efficiency gains and improved profitability.

Speaker #4: In terms of AI-enabled productivity we actively encourage AI learning and knowledge sharing across the organization. We have already made progress in areas such as in-store compliance audits and risk control, recessing pricing algorithm optimization and coding efficiency, going forward we will gradually expand these applications laying the groundwork for long-term organizational efficiency gains and improved profitability.

Speaker #5: 综上，在2026年我们有望实现比年初内部预期更快的规模增长，并取得有效的利润率的提升。

Kerry Chen: 综上呢，在2026年呢，我们有望实现比年初内部预期更快的规模增长，并取得有效的利润、利润率的提升。

Speaker #4: Taken together, we expect to scale in 2026 at a pace faster than what we expected internally at the beginning of the year. We also expect to achieve meaningful margin improvements.

Jessie Jin: Taken together, we expect to scale in 2026 at a pace faster than what we expected internally at the beginning of the year. We also expect to achieve meaningful margin improvement.

[Translator]: Taken together, we expect to scale in 2026 at a pace faster than what we expected internally at the beginning of the year. We also expect to achieve meaningful margin improvement.

Speaker #5: 好的，感谢。

Kerry Chen: 好的，感谢。

Speaker #4: Thank you for the question.

Jessie Jin: Thank you for the question.

[Translator]: Thank you for the question.

Speaker #2: The next question comes from Wan Jiao with CICC. Please go ahead.

Operator: The next question comes from Liping Zhao with CICC. Please go ahead.

Speaker #4: Hey, 观众朋友晚上好。感谢接受我的提问。首先恭喜咱们取得了强劲的业绩。我的问题是请问管理层能不能分享一下咱们今年的开店以及上门能力建设的目标，谢谢。我自己翻译一下。Corporate Innovations for this strong results. I have one question. Could you please give us more color about your plan for store expansion and two-door fulfillment capacity in 2026?

Liping Zhao: 管理层晚上好，感谢接受我的提问。首先恭喜咱们取得了强劲的业绩。那我的问题呢，是请问管理层能不能分享一下咱们今年的开店以及上门能力建设的目标，谢谢。我自己翻译一下。Congratulations for this strong results. I have one question, could you please give us more color about your plan for store expansion and to door fulfillment capacity in 2026? Thank you.

Wan Jiao: 管理层晚上好，感谢接受我的提问。首先恭喜咱们取得了强劲的业绩。那我的问题呢，是请问管理层能不能分享一下咱们今年的开店以及上门能力建设的目标，谢谢。我自己翻译一下。Congratulations for this strong results. I have one question, could you please give us more color about your plan for store expansion and to door fulfillment capacity in 2026? Thank you.

Speaker #4: Thank you.

Speaker #5: 好，感谢提问。一季度期间我们盘点了全国的门店，从点位、流量等维度评估，淘汰了一些尾部的门店。同时也让我们的优质门店进一步的提效，更集中并高效地承接来自线上的流量。我们非常注重门店的质量，并且以扩充品类的方式提升了开通多品类回收服务能力的门店的比例。截止一季度末，在965家爱护州自营门店中有841家开通了多品类的服务能力，实现了更加用户友好的门店形象和空间设计。进一步提升了爱护州的品牌形象和交付体验。爱护州过去多年的开店经验是跳跃式的发展。新开一批夯实一批，继续新开。在开店策略上，我们将继续遵循这样的经验操作。中长期来看，我们全国5000家门店的目标不会改变。

Kerry Chen: 好，感谢提问。一季度期间，我们盘点了全国的门店，从点位、流量等维度评估，淘汰了一些尾部的门店。同时也让我们的优质门店进一步起效，更集中并高效地承接来自线上的流量。我们非常注重门店的质量，并且以扩充品类的方式，提升了开通多品类回收服务能力的门店的比例。截止一季度末，在965家爱回收经营门店中，有841家开通了多品类的服务能力，实现了更加用户友好的门店形象和空间设计，进一步提升了爱回收的品牌形象和交付体验。爱回收过去多年的开店经验，是跳跃式的发展，新开一批，夯实一批，继续新开。在开店策略上，我们将继续遵循这样的经验操作。中长期来看，我们全国5,000家门店的目标不会改变。

Speaker #4: Thank you for the question. During the first quarter, we reviewed our nationwide store network based on factors such as location quality and traffic performance.

Jessie Jin: Thank you for the question. During Q1, we reviewed our nationwide store network based on factors such as location quality and traffic performance. We optimized our store footprint by phasing out certain underperforming stores, while further improving the efficiency of our high quality stores so they can better and more efficiently capture online traffic. We also maintain focused on store quality. By expanding service categories, we continue to increase the proportion of stores capable of providing multi-category recycling services. By the end of Q1, 841 of our 965 self-operated AHS stores had enabled multi-category service capabilities. Alongside more user-friendly store layouts and upgraded in-store experiences, further strengthening AHS Recycle's brand image and fulfillment experience. We have our AHS velocity at store openings. It follows a leapfrog pattern, opening new stores, solidifying store performance, and then further ramping up store openings. We will continue to follow this rhythm based on our past experience. Looking at the long term, our goal of reaching 5,000 stores in China remains unchanged.

[Translator]: Thank you for the question. During Q1, we reviewed our nationwide store network based on factors such as location quality and traffic performance. We optimized our store footprint by phasing out certain underperforming stores, while further improving the efficiency of our high quality stores so they can better and more efficiently capture online traffic. We also maintain focused on store quality. By expanding service categories, we continue to increase the proportion of stores capable of providing multi-category recycling services. By the end of Q1, 841 of our 965 self-operated AHS stores had enabled multi-category service capabilities. Alongside more user-friendly store layouts and upgraded in-store experiences, further strengthening AHS Recycle's brand image and fulfillment experience. We have our AHS velocity at store openings. It follows a leapfrog pattern, opening new stores, solidifying store performance, and then further ramping up store openings. We will continue to follow this rhythm based on our past experience. Looking at the long term, our goal of reaching 5,000 stores in China remains unchanged.

Speaker #4: We optimized our store footprint by phasing out certain underperforming stores, while further improving the efficiency of our high-quality stores so they can better and more efficiently capture online traffic.

Speaker #4: We also maintain focus on store quality by expanding service categories. We continue to increase the proportion of store capable of providing multi-category recycling services.

Speaker #4: By the end of the first quarter, 841 of our 965 self-operated HS stores had enabled multi-category service capabilities. Alongside more user-friendly store layouts and upgraded in-store experiences, further strengthening AHS recycles brand image and fulfillment experience.

Speaker #4: We have our AHS velocity at store openings. It follows a leapfrog pattern. Opening new stores solidifying store performance and then further ramping up store openings.

Speaker #4: We will continue to follow this rhythm based on our past experience. Looking at the long term, our goal of reaching 5000 stores in China remains unchanged.

Speaker #5: 同期我们全国上门团队的交付人数同比增加近500人。支持重点业务场景，尤其是京东的，以面对面的比例。京东以旧换新的面对面比例进一步提升，保证了履约交付的范围，提高了时效性，巩固了行业领先的交付体验。此外，我们也为弹性运力做储备，在包括大促和旗舰机型发布期间的业务高峰期，快速激活增量的上门运力，保障交付体验与履约质量，满足面对面的需求。

Kerry Chen: 同期，我们全国上门团队的交付人数同比增加近500人，支持重点业务场景，尤其是京东的以面对面的比例。京东以旧换新的面对面比例进一步提升，保证了预约交付的范围，提高了时效性，巩固了行业领先的交付体验。此外，我们也为弹性运力做储备。在包括大促和旗舰机型发布期间的业务高峰期，快速激活增量的上门运力，保障交付体验与预约质量，满足面对面的需求。

Speaker #4: At the same time, we added nearly 500 two-door service team nationwide year over year. This helped increase the proportion of face-to-face fulfillment in key service scenarios, including JD's trading services.

Jessie Jin: At the same time, we added nearly 500 door-to-door service team nationwide year-over-year. This helps increase the proportion of face-to-face fulfillment in key service scenarios, including JD's trading services, extend fulfillment coverage, improve service speed, and further reinforce our industry leading fulfillment experience. In addition, we are also building up flexible workforce capacity. During peak seasons, such as major promotional campaigns and flagship device launches, we can quickly activate additional door-to-door capacity to ensure fulfillment experience and quality, while meeting face-to-face demand.

[Translator]: At the same time, we added nearly 500 door-to-door service team nationwide year-over-year. This helps increase the proportion of face-to-face fulfillment in key service scenarios, including JD's trading services, extend fulfillment coverage, improve service speed, and further reinforce our industry leading fulfillment experience. In addition, we are also building up flexible workforce capacity. During peak seasons, such as major promotional campaigns and flagship device launches, we can quickly activate additional door-to-door capacity to ensure fulfillment experience and quality, while meeting face-to-face demand.

Speaker #4: Expand fulfillment coverage improves service speed and further reinforce our industry-leading fulfillment experience. In addition, we are also building up flexible workforce capacity. During peak seasons, such as major promotional campaigns and flagship device launches, we can quickly activate additional two-door capacity to ensure fulfillment experience and quality while meeting face-to-face demand.

Speaker #5: 好的，非常感谢提问。

Kerry Chen: 好的，非常感谢提问。

Speaker #4: Thank you for the question.

Jessie Jin: Thank you for the question.

[Translator]: Thank you for the question.

Speaker #2: The next question comes from Brian Lantier with Zach's Small Cap. Please go ahead.

Operator: The next question comes from Brian Lindauer with Zacks Small-Cap Research. Please go ahead.

Speaker #6: Good evening. And I'll add my congratulations on the strong performance this quarter. I was wondering if you could provide some insight into the growth of inventory in the first quarter.

Brian Lindauer: Good evening, I'll add my congratulations on the strong performance this quarter. I was wondering if you could provide some insight into the growth of inventory in Q1. Specifically, is the inventory build mostly due to anticipated demand growth or changes in the product mix? How should we think about normalized inventory going forward?

Brian Lantier: Good evening, I'll add my congratulations on the strong performance this quarter. I was wondering if you could provide some insight into the growth of inventory in Q1. Specifically, is the inventory build mostly due to anticipated demand growth or changes in the product mix? How should we think about normalized inventory going forward?

Speaker #6: Specifically, is the inventory build mostly due to anticipated demand growth or changes in the product mix? And how should we think about normalized inventory going forward?

Speaker #5: 好的，非常感谢。好的，谢谢。我先来回答这个问题。对，回收和以旧换新业务受到了用户的非常高的认可。所以说我们在培养用户心智的过程中，以好的价格来夯实用户的价格体验。这个季度的存货的增加与业务加强，EPQC的战略是一致的，因为QC零售的库存周转天数平均比QB销售多两到三周。在收入结构上EPQC倾斜的过程中，存货的周转天数会有一定的增长。由于拍机场人事行业的基础设施，我们掌握了行业的价格能力，因此存货的增加并不会对核心业务的周转产生显著的影响。QE因为部分品牌厂商在新品发布过程中采用了提价的策略，因此我们判断二手的价格会相对稳定，存货的价格也相对稳定。所以说我们在QE没有加速降价的销售。所以说我们预计在第二季度末，我们的存货会回到一个相对低的水平。因为去年第二季度回收和以旧换新的需求也比较。

Kerry Chen: 好的，非常感谢。

Rex Chen: 好的，谢谢。我先来回答这个问题。回收和以旧换新业务呢，受到了用户非常高的认可，所以说我们在培养用户心智的过程中呢，以好的价格来夯实用户的价格体验。这个季度的存货的增加呢，与业务加强拍机堂QC的战略是一致的。因为QC零售的库存周转天数呢，平均比QC销售多了两到三周。在收入结构向拍机堂QC清理的过程中，存货的周转天数呢会有一定的增长。由于拍机堂作为行业的基础设施，我们掌握了行业的价格能力，因此存货的增加呢，并不会对核心业务周转产生显著的影响。Q1呢，因为部分品牌厂商在新品发布过程中采用了提价的策略，因此判断二手的价格呢会相对稳定，存货的价格呢也相对稳定。所以说我们在Q1呢没有加速降价的销售。所以说我们预计呢在第二季度末呢，我们的存货回到一个相对低的水平。因为呢去年第二季度呢，回收可以置换新的需求也比较

Speaker #4: Thank you for the question. Our recycling and trading business continue to gain user recognition, especially during the trading scenarios. As we build stronger user mind share, we are also enhancing the customer experience by offering more attractive pricing.

Jessie Jin: Thank you for the question. Our recycling and trading business continue to gain user recognition, especially during the trading scenarios. As we build stronger user mindshare, we are also enhancing the customer experience by offering more attractive pricing. Against the backdrop of the rising upstream cost for new devices, especially memory price hikes, secondhand market prices have remained relatively stable compared to past cycles, and we have even seen price increases in some products. As a result, we are not in a hurry to reprice our high quality inventory for faster turnover, and part of it will be sold in the second quarter as inventory will normalize. In addition, the increase in inventory is consistent with our strategy of strengthening 1P2C sales. On average, inventory turnover days for 1P2C retail are longer than those of bulk sales.

[Translator]: Thank you for the question. Our recycling and trading business continue to gain user recognition, especially during the trading scenarios. As we build stronger user mindshare, we are also enhancing the customer experience by offering more attractive pricing. Against the backdrop of the rising upstream cost for new devices, especially memory price hikes, secondhand market prices have remained relatively stable compared to past cycles, and we have even seen price increases in some products. As a result, we are not in a hurry to reprice our high quality inventory for faster turnover, and part of it will be sold in the second quarter as inventory will normalize. In addition, the increase in inventory is consistent with our strategy of strengthening 1P2C sales. On average, inventory turnover days for 1P2C retail are longer than those of bulk sales.

Speaker #4: Against the backdrop of the rising upstream costs for new devices, especially memory price hikes, secondhand market prices have remained relatively stable compared to past cycles, and we have been seeing we have even seen price increases in some products.

Speaker #4: As a result, we are not in a hurry to reprice our high-quality inventory for faster turnover. And part of it will be sold in the second quarter as inventory will normalize.

Speaker #4: In addition, the increase in inventory is consistent with our strategy of strengthening 1P2C sales. On average, inventory turnover days for 1P2C retail are longer than those of bulk sales.

Speaker #4: Therefore, as our revenue mix continues to shift towards 1P2C, inventory turnover days may increase to some extent. That said, as PJT marketplace remains an important piece of industry infrastructure, it supports our strong pricing capabilities.

Jessie Jin: Therefore, as our revenue mix continues to shift towards 1P2C, inventory turnover days may increase to some extent. That said, as PJT Marketplace remains an important piece of industry infrastructure, it supports our strong pricing capabilities. Therefore, the increase in inventory is not expected to have significant impact on turnover in our core businesses. Thank you for the question.

[Translator]: Therefore, as our revenue mix continues to shift towards 1P2C, inventory turnover days may increase to some extent. That said, as PJT Marketplace remains an important piece of industry infrastructure, it supports our strong pricing capabilities. Therefore, the increase in inventory is not expected to have significant impact on turnover in our core businesses. Thank you for the question.

Speaker #4: Therefore, the increase in inventory is not expected to have significant impact on turnover in our core businesses. Thank you for the question.

Speaker #2: This concludes our question and answer session. I'd like to turn the conference back over to management for closing remarks.

Operator: This concludes our question and answer session. I'd like to turn the conference back over to management for closing remarks.

Speaker #4: Thank you all again for joining us. Our replay of today's call will be available on our IR website shortly, followed by a transcript when ready.

Jessie Jin: Thank you all again for joining us. A replay of today's call will be available on our IR 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.

[Translator]: Thank you all again for joining us. A replay of today's call will be available on our IR 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.

Speaker #4: If you have any additional questions, please feel free to email us at iratrenew.com. Have a good day.

Operator: This conference is now concluded. Thank you for attending today's presentation. You may now disconnect.