管理層發言
Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to ATRenew Inc.'s First Quarter 2026 Earnings Conference Call. Please note, today's event is being recorded. I will now turn the call over to the first speaker today, Ms. Jesse Jin, Head of Investor Relations. Please go ahead, ma'am.
Thank you. 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. 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. There will also be a transcript following this call for your convenience. For today's agenda, Kerry will share his thoughts on 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 statement. Some of the information you will hear during our discussion today will consist of forward-looking statements, and I refer you to our safe harbor statement in the earnings press release. Any forward-looking statements that management makes on this call are based on assumptions as of today, and ATRenew does not take any obligation to update those 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 updates.
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 perspective regarding capability building in the secondhand industry this year. 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 the first quarter. Total net revenues reached RMB 6.6 billion, representing an accelerated growth rate of 32.4%. This momentum was primarily driven by net product revenue, which surged 34.4% year-over-year, while service revenue maintained a healthy 10.4% year-over-year growth rate. Profitability also improved — non-GAAP operating profit grew 7.2% year-over-year to RMB 190 million, while the non-GAAP operating profit margin expanded by 69 basis points to 3.1%. Amid overall revenue and scale expansion, we continue to advance our IP-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 1P ratio by securing first-hand supply sources and enhancing compliant refurbishment. On the supply side, we capitalized on industry trends by prioritizing trading scenarios that deliver superior user experiences while shifting more fulfillment to offline, face-to-face door-to-door services. In 2026, the government maintained strong support for trading and further fiscal and financial coordination. Against this backdrop, ATRenew 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. As a result, within the JD sourcing channel, trading orders outpaced overall growth with volume share further expanding year-over-year to about 70%. Throughout the fulfillment process, we actively guide users towards face-to-face transactions in offline settings. In the first quarter, we expanded our network to 2,156 stores across major cities and scaled up our door-to-door service team to 2,248 professionals, bringing our services directly to user doorsteps. This strategy has lifted our face-to-face fulfillment ratio to 80%, fostering deep connection and trust through ATRenew's recycled 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 improve face-to-face fulfillment timelines and user experience even during the busiest times. 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. Our on-demand refurbishment model was a standout performer, growing by roughly 180% in revenues. Our compliant refurbishment capabilities allowed us to provide more quality secondhand devices directly to consumers. In terms of retail channels, we expanded selection on our official website and new media channels, which drove nearly 150% year-over-year growth in 1P B2C retail revenue from refurbished devices. March marked a significant breakthrough with monthly retail sales of compliant refurbished products topping RMB 200 million; as a result, 1P B2C accounted for 45.1% of our product revenue in the first quarter of 2026, rising 12.1 percentage points year-over-year and 3.4 percentage points quarter-over-quarter from 41.7%. 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. Regarding high-quality products from older generations, specifically minus-3 and minus-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. Turning to our service 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 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 expanding them to small- and medium-sized merchants. By streamlining platform processes, we have lowered the barrier to using the platform and improved both transaction speed and convenience, enabling small- and medium-sized merchants to sell their products at better prices. Leveraging the 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 the 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. 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 joined the platform. This validates the effective implementation of our PJT Marketplace supply chain strategy to penetrate fragmented markets. Under the 3P business model, the pipeline continues to shift towards the consignment model. Under this model, the pipeline team provides merchants with standardized operational services, making pre-owned retail easier for them to manage. Since the second quarter of last year, pipeline consignment has continued to provide merchants with broader access to curated retail channels. In the first quarter, the consignment business maintained rapid double-digit growth, helping bring merchants closer to consumers. Multi-category business sustained rapid growth in the first quarter with overall restructuring GMV up 81.5% year-over-year. Among them, gold recycling GMV grew 83.3% and secondhand luxury goods 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 capability to more self-operated ATRenew stores through the rest of the year while also working with more franchisees to build multi-category 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. In summary, the overall service take rate was 4.92% in the first quarter, in line with our expectations. 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. 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. As national trading policies support consumption and industry upgrades, we are actively positioning ourselves in recycling and trading scenarios — strengthening the brand recognition of ATRenew to serve broader replacement and upgrade needs, enabling more electronic products to achieve a second life cycle and creating greater value for society. Throughout this process, we are first 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 for retail users through a higher portion of retail sales. Stage 2: we are strengthening ATRenew'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 the industry's long-term development path. Brand equity holds enduring value. In trade-in scenarios, we maintain independent and prudent brand investments in ATRenew across regions; combined with revised initiatives, ATRenew 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, ATRenew encourages more younger users to participate in trade-in and green consumption. 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 in the export of China-sourced supplies, we continue to explore a global version of PJT Marketplace and product development while systematically building capabilities to directly serve end consumers. 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 replacement market and both grew against a 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 replacement market remained stable and resilient, laying a solid foundation for the long-term healthy development of 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; their increased investment here supports our efficiency of acquiring first-hand recycling supply. Taking this 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. Now I'd like to turn the call over to our CFO, Rex, for financial updates.
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. As China's circular economy continues to advance and trade-in programs for consumer electronics remain ongoing, we sustained strong growth momentum in the first quarter. During the quarter, we leveraged our direct-to-customer trading scenarios and face-to-face fulfillment capabilities, enhanced our supply chain and retail capabilities and further strengthened our user mind share of the ATRenew brand. In the first quarter, total revenue exceeded the high end of our guidance, increasing by 32.4% to RMB 6.16 billion, while non-GAAP operating income surged 70.2% to over RMB 190 million. 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. 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 RMB 5.73 billion, largely attributable to the growth in online sales of refurbished consumer electronics. Net service revenues were RMB 430 million in the first quarter, representing an increase of 10.4%. The increase was largely driven by PJT Marketplace and marketplace recycling business. The overall take rate of our marketplace sales was 4.92% for the first quarter of 2026. During the quarter, our multi-category recycling business contributed over RMB 83 million revenue, accounting for 19.3% of service revenues. 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. Merchandise costs increased by 33.2% to RMB 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 chain and an increasingly diversified retail channel mix. This allowed us to increase the proportion of higher-margin retail sales with 1P B2C revenue accounting for 45.1% of product revenue in the first quarter of 2026, up from 33% in the same period last year. Fulfillment expenses increased by 22.5% to RMB 520 million. Non-GAAP fulfillment expenses increased by 20.7% to RMB 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 refurbishing and transactions. Non-GAAP fulfillment expenses as a percentage of total revenues decreased to 8.5% from 9.1%. Selling and marketing expenses increased by 17.9% to RMB 490 million. Non-GAAP selling and marketing expenses increased by 27% to RMB 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%. General and administrative expenses increased by 25.9% to RMB 79.8 million. Non-GAAP G&A expenses also increased by 33% to RMB 79 million, primarily due to an increase in personnel costs. Non-GAAP G&A expenses as a percentage of total revenues remained flat year-over-year at 1.3%. Research and development expenses increased by 33.5% to RMB 73.4 million. Non-GAAP R&D expenses increased by 36.4% to RMB 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%. As a result, our non-GAAP operating income exceeded RMB 190 million in the first quarter of 2026 compared to non-GAAP operating income of RMB 110 million in the first quarter of 2025, representing an increase year-over-year. Non-GAAP 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. As of March 31, 2026, cash and cash equivalents, restricted cash, short-term investments and funds receivable from third-party payment service providers totaled RMB 1.72 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns. During the first quarter of 2026, we repurchased a total of approximately 0.5 million ADS for approximately USD 2.7 million. On June 30, 2025, the Board authorized a share repurchase program under which the company may repurchase up to USD 50 million of our shares over 12 months. As of March 30, 2026, we repurchased approximately USD 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. Now turning to the business outlook. For the second quarter of 2026, we anticipate total revenues to be between RMB 6,240 million to RMB 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. This concludes our prepared remarks. Operator, we are now ready to take questions.
分析師問答
The first question today comes from Rafael Fe with DBS.
Congratulations for the brilliant first quarter results. Does management have any updated guidance on revenue and profit growth for the full year of 2026?
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. In terms of scale growth, we've seen the government's continued 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 trade-in scenarios, allow us to capitalize on this momentum and secure more first-hand supply efficiently and at lower cost. These factors also reduce our reliance on traffic-driven marketing and performance advertising for high-value, low-frequency consumer electronics categories. 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 and as our combined export supply chain capabilities gradually strengthen. Meanwhile, we are exploring opportunities to bring more of the capabilities we have built in China to overseas markets. This includes resulting fulfillment platform capabilities and opportunities for automation technologies, among others. We will also remain disciplined in our international expansion investments while actively acquiring new AI technologies to accelerate business from the incubation stage towards rapid growth. As a forecast, we look forward to updating you with more developments from our overseas bases during the next earnings conference call. Regarding efficiency improvement, flexible fulfillment capabilities in our 1P scenarios as well as interworking AI across automated inspection, R&D and operations will be key priorities as we strengthen our 1P 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, reflecting pricing algorithm optimization and quoting efficiency. Going forward, we will gradually expand these applications, laying the groundwork for long-term organizational efficiency gains and improved profitability. 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.
The next question comes from Juan Zhao with CICC.
Congratulations for the strong results. I have one question. Could you please give us more color about your plan for store expansion and door-to-door fulfillment capacity increase?
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. 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 focus on quality — by expanding service categories, we continue to increase the proportion of stores capable of providing multi-category services. By the end of the first quarter, 841 of our 965 self-operated ATRenew stores have enabled multi-category service capabilities alongside more user-friendly store layouts and upgraded in-store experiences, further strengthening ATRenew brand image and fulfillment experience. Our store opening cadence follows a leapfrog pattern: opening new stores, solidifying performance, and then further ramping up openings. We will continue to follow this rhythm. Based on our past experience, the long-term goal of reaching 5,000 stores in China remains unchanged. At the same time, we added nearly 500 door-to-door service team members nationwide year-over-year — this helped increase the proportion of face-to-face fulfillment in key service scenarios, including JD sourcing services, expand fulfillment coverage, improve service speed and further reinforce our industry-leading fulfillment experience. In addition, we are also building our flexible workforce capacity so that in 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.
The next question comes from Brian Lantier with Zach Small Cap.
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. 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?
Thank you for the question. Our recycling and trading business continued to gain user recognition, especially during the trade-in scenarios. As we build stronger user mind share, we are also enhancing the customer experience by offering more attractive pricing against the backdrop of the rising offering 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 higher-cost inventory for faster turnover, and part of it will be sold in the second quarter as inventory normalizes. In addition, the increase in inventory is consistent with our strategy of strengthening 1P B2C sales. On average, inventory turnover days for 1P B2C retail are longer than those of wholesale. Therefore, as our revenue mix continues to shift towards 1P B2C, inventory turnover days may increase to some extent. That said, as PJT Marketplace remains an important piece of industry infrastructure supporting our strong pricing capabilities, the increase in inventory is not expected to have a significant impact on turnover in our core businesses. Thank you for the question.
This concludes our question-and-answer session. I'd like to turn the conference back over to management for closing remarks.
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 e-mail us at ir@atrenew.com. Have a good day.
This conference has now concluded. Thank you for attending today's presentation. You may now disconnect.