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November 20, Beijing – ATRenew (NYSE: RERE), a leading platform for pre-owned consumer electronics transactions and services, announced its Q3 2024 financial results, showcasing robust growth and operational milestones. Total revenues reached RMB 4.05 billion ($560 million), a 24.4% year-over-year increase, while non-GAAP operating profit exceeded RMB 104 million ($14.8 million) for the first time. The company also achieved its first-ever GAAP operating profit of RMB 24.9 million ($3.5 million).
“In the third quarter of 2024, we are pleased to report a total revenue of RMB 4.05 billion, achieving a healthy year-over-year growth of 24.4%,” said Kerry Xuefeng Chen, Chairman and CEO of ATRenew. “Trade-ins have become a more mainstream recycling method, providing users with a more convenient and cost-effective experience. Our offline stores remain the industry-leading fulfillment scenario, serving as hubs for consumer electronics recycling and multi-category goods transactions, while our unique self-operated retail channels meet the growing demand for high-quality, value-for-money pre-owned products.”
Revenue Growth and Profitability Milestones
The company’s Q3 revenue growth was driven by a 25.6% increase in 1P (self-operated) product revenues, totaling RMB 3.67 billion ($507 million). 3P (platform) service revenues also increased by 13.9% year-over-year, reaching RMB 379 million ($52 million).
ATRenew’s non-GAAP operating profit surpassed RMB 100 million for the first time, reflecting a 40.9% year-over-year increase, with a non-GAAP operating margin of 2.6%, up from 2.3% in the same period last year. Additionally, non-GAAP net profit rose by 89.3% year-over-year to RMB 90.06 million ($12.4 million), with the non-GAAP net profit margin improving from 1.5% to 2.2%.
“This quarter marks a significant milestone for ATRenew as we achieved non-GAAP operating profit exceeding RMB 100 million and our first-ever GAAP operating profit,” said Rex Chen, Chief Financial Officer of ATRenew. “These achievements reflect our efforts to optimize operational expenses and digest historical amortization costs from acquisitions. Additionally, we returned over $12 million to shareholders through buybacks this quarter. Moving forward, we will continue to enhance efficiency and create greater value for users and shareholders alike.”
Insights into Industry Growth and Long-Term Strategy
During the earnings call, CEO Kerry Chen shared his views on the second-hand consumer electronics industry, citing IDC data showing an annual growth rate of approximately 10%.
“We believe trade-ins are outpacing overall industry growth, becoming the preferred method for recycling among Chinese consumers and driving the market forward,” he explained. “In a cautious spending environment, demand for the disposal of idle goods and value-for-money, quality-assured pre-owned smartphones continues to rise.”
Chen emphasized the company’s core business strategy: “The second-hand market is in a growth phase, and our foundational business of second-hand consumer electronics revolves around strengthening our ‘scenario + supply chain’ advantages and building trust in the AHS Recycle brand. By optimizing supply flows between consumers and businesses, leveraging our compliant refurbishment capabilities, and increasing to-C retail sales, we unlock economies of scale and create greater value across the supply chain.”
Beyond electronics, ATRenew sees opportunities in diverse categories like gold, luxury bags, watches, vintage liquor, and trendy footwear. “Each of these categories has unique demand and transaction value. We aim to innovate continually, delivering excellent user experiences across multiple product categories,” Chen added.
Chen also highlighted the company’s commitment to brand building through new media platforms like Douyin and Kuaishou: “We remain steadfast in creating user value and are increasing our investment in brand awareness to solidify AHS Recycle as the leading recycling brand in users’ minds.”
SEE ALSO: Expansion of Offline Stores and Multi-Category Recycling
As of Q3 2024, ATRenew operated 1,637 offline stores across 263 cities in China. The company plans to accelerate store openings over the next 2–3 years to meet the growing demand for idle goods transactions.
The multi-category recycling business, covering items such as handbags, watches, gold, liquor, shoes, and apparel, continues to thrive. In Q3, the transaction value of multi-category recycling reached RMB 950 million ($131 million), up more than 270% year-over-year, contributing to a 400% growth in related service revenues. By the end of September, 587 stores offered multi-category recycling services.
Direct-to-Consumer Retail Performance
Consumer acceptance of pre-owned products continues to rise. ATRenew’s self-operated retail segment, which includes JD.com’s Paipai platform, AHS Recycle’s official website, and offline stores, generated RMB 970 million ($134 million) in revenues for Q3, a 120% year-over-year increase. Sales revenues on Paipai, the official website and offline stores, and new media retail channels grew by 87.4%, 301.3%, and 114.6%, respectively.
ESG Achievements and Strategic Partnerships
In ESG performance, ATRenew achieved a score of 35 in the latest S&P Global Corporate Sustainability Assessment, surpassing 93% of global retail industry peers. The company also announced a strategic partnership with L’Oréal during the China International Import Expo, exploring solutions for recycling cosmetic containers and promoting sustainable consumption.
Chen added: “This year, we’ve introduced initiatives like the ‘Revive’ campaign in collaboration with L’Oréal, encouraging users to recycle cosmetic containers. These efforts boost awareness of circular economy principles and deepen the connection between our brand and eco-conscious users.”
Outlook
For Q4 2024, ATRenew expects total revenue between RMB 4.74 billion and RMB 4.84 billion, representing a year-over-year increase of 22.4% to 24.9%.
With its strong performance and ongoing expansion, ATRenew continues to solidify its leadership in pre-owned electronics recycling, transaction services, and quality retail, striving for growth that significantly outpaces the industry average.