万物新生(RERE.US)2025年第一季度业绩电话会
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会议摘要
In Q1 2025, Renew Inc. exceeded financial guidance with a 27.5% year-over-year increase in total net revenues to RMB 4653.5 million and a 39.5% rise in non-GAAP operating income to over RMB 110 million. The growth was driven by the expansion of the 1P business, supported by national subsidies and increased demand for upgrades on JD.com. Key highlights include significant growth in 1P revenues, a 30% increase in product revenue, and a 73.5% year-over-year increase in 1P2C revenue. Strategic initiatives include enhancing the partnership with JD.com for supply chain development.
会议速览
Renew Inc's Q1 2025 Earnings Conference CallA conference call is held for Renew Inc's first quarter earnings of 2025, with participants in listen-only mode until the Q&A session following management's remarks.
Review's 2025 Q1 Earnings Conference Call SummaryThe founder, chairman, and CEO discusses quarterly performance and business strategy, followed by the CFO addressing financial highlights. The call includes a reminder about forward-looking statements and non-GAAP measures.
First Quarter 2025 Earnings Update: Robust Growth and Strategic DevelopmentsThe company reports a 27.5% year-over-year increase in total net revenues, exceeding guidance, with non-GAAP operating income rising significantly. The growth is attributed primarily to the accelerated expansion of the 1P business, enhanced recycling fulfillment capabilities, and strengthened brand recognition. Strategic partnerships, particularly with JD Com, have optimized trading processes and improved customer experiences, boosting market share in the pre-owned consumer electronics sector. Marketing initiatives and environmental campaigns further elevate brand presence and user engagement.
Lypse's Q1 2025 Supply Chain Optimization and Retail Expansion SuccessIn Q1 2025, leveraging a mature supply chain, Lypse achieved a 73.5% YoY growth in 1P2C revenue, with retail revenue constituting 33% of 1P revenue. The on-demand refurbishment pilot program effectively synergized with in-house operations, expanding product accessibility and driving a healthy GMV trend. Despite a YoY decline in Apple official trading business revenue, operational efficiencies led to significant margin improvements.
PGT's Expansion and Innovation in Second-Hand Electronics MarketplacePGT reports a significant rise in service acceptance and merchant demand, enhancing BTB BTC and Multicare services, registering over a million merchants with double-digit growth. Innovations include the first offline flagship store in Shenzhen, compact authentication warehouses, and collaborations with live streaming influencers to boost sales and distribution of pre-owned consumer electronics.
First Quarter Growth and Strategic Expansion in Second-Hand IndustryThe company experienced significant growth in the first quarter, with a focus on enhancing services for small merchants in the second-hand industry, integrating products into distribution channels, and optimizing user experience in recycling services. Plans include further strengthening fulfillment capabilities and brand influence for long-term industry growth opportunities.
Financial Performance Update for Q1 2025The CFO reported strong Q1 2025 financial performance, with total revenue increasing by 27.5% and adjusted operating income rising by 39.5%. Key drivers included national subsidies, enhanced fulfillment capabilities, and an expanded retail network. Net product revenues saw significant growth, particularly in consumer electronics sales, while service revenues increased by 14.2%, boosted by the company's marketplace and recycling business. Operating expenses grew, mainly due to increased personnel and logistics costs, but the company maintained a healthy financial position, including a share repurchase program and substantial cash reserves.
Business Outlook for Q2 2025: Revenue Forecast and Preliminary Market ViewsThe company forecasts total revenues between RMB 4000.710 million and RMB 4008.1 million for Q2 2025, expecting a year-over-year increase of 24.4% to 20%. This forecast is based on current and preliminary assessments of market and operational conditions, subject to change.
Strong Q1 Performance and Growth Strategies in Second-hand Electronics RecyclingThe company reports strong Q1 performance attributed to effective national subsidies for recycling and trading programs, leading to accelerated growth in their second-hand electronics business. They discuss the impact of pricing strategies and operational efficiency on improved non-GAAP margins, aiming for continued revenue growth and margin improvement throughout the year.
Ehrs Recycled Stores Expansion and Operational Model Shift UpdateAs of March 31, 2025, there are 1886 Ehrs recycled stores nationwide, with a net increase of 458 stores compared to the previous year. The company has transitioned some joint operated stores in high tier cities to self operated to improve efficiency and user satisfaction, and the fulfillment team has expanded to 1000 million people to strengthen market capabilities.
Enhancing Offline Fulfillment for Superior Customer SatisfactionThe company is expanding face-to-face services, emphasizing in-store and door-to-door options, and finds higher user satisfaction with instant confirmation offline services compared to logistic-based pickups. Plans include further improving offline capabilities for a top-tier trading experience.
Ahs Recycle's Enhanced Brand Awareness and Marketing StrategiesAhs Recycle has seen significant traction from increased marketing and advertising efforts, enhancing brand awareness and driving revenue growth through strategic video campaigns and targeted promotions. The company plans to continue prioritizing high-quality service and user feedback to capture greater market share and reinforce user perception, leveraging national subsidies and enhancing new media presence for joint operating stores.
Closing Remarks and Post-Conference Details - May 21, 2025Management concludes the conference, thanking attendees and announcing the availability of the call replay and transcript on the website. They invite further questions via email.
要点回答
Q：What are the highlights of At Renew Inc's first quarter 2025 earnings conference call?
A：The highlights of At Renew Inc's first quarter 2025 earnings conference call include the presentation of quarterly performance and business strategy by Carrie, followed by the CFO, Rex, addressing the financial highlights. Notable achievements include total net revenues exceeding the high end of guidance, year-over-year growth, and a strong non GAAP operating income. The call also covered operational updates and strategies related to the P2C retail business and the partnership with JD.com.
Q：What were the year-over-year changes in total net revenues and non GAAP operating income for the first quarter?
A：For the first quarter, total net revenues increased 27.5% year over year to RMB 4653 million. The non GAAP operating income increased significantly, and the non GAAP operating margin reached 2.4%, indicating progress compared to the first quarter of the previous year.
Q：How did the 1 P business contribute to the revenue growth?
A：The 1 P business experienced a significant contribution to the revenue growth, with a focus on investing in veck business, recycling fulfillment capabilities, enhancing supply access, and strengthening the Ahs recycled brand recognition across China. This strategy helped improve the script PTC retail sales in the company's sales mix.
Q：What were the key factors driving the growth in one key business revenue?
A：The key factors driving the growth in one key business revenue, which excludes the high base impact from Apple's official trading program and overseas business, include the strong and stable growth of total revenue, supported by national subsidies for smartphones and digital products, and increased user upgrades demand on the JD Com platform.
Q：How has the partnership with JD.com influenced the used consumer electronics market?
A：The partnership with JD.com has positively influenced the used consumer electronics market by strengthening the long-term development supply chain, providing best-in-class user experiences, and efficient fulfillment. This has not only stimulated demand but also improved the supply of high-quality pre-owned consumer electronics, leading to a higher trade-in segment growth.
Q：What measures have been taken to enhance the brand presence of AHS recycled?
A：To enhance the brand presence of AHS recycled, the company has leveraged new media channels for creative marketing and influencer partnerships, encouraging users to experience a wide range of recycling services and growing the recycling channel. Initiatives like the Environmental Protection Initiative and Aa Trust Recycle brand integration have also been announced to increase brand recognition and user engagement.
Q：How has the company's 1P2C retail operation performed?
A：The 1P2C retail operation has shown strong performance with a 73.5% year-over-year revenue growth. This growth is attributed to refurbishment capabilities and the synergies created with in-house compliant refurbishment operations, leading to a competitive pricing strategy for Edp refurbished products across various retail channels.
Q：What were the changes in the Apple official trading business and marketplace businesses?
A：In the Apple official trading business, revenue declined year over year due to a high base effect from early-stage pricing strategies. However, the margin in this segment improved significantly. For marketplace businesses, there was a marked rise in trade-in service acceptance, both online and offline, and a positive shift in merchant demand. The company enhanced its B2B, B2C, and Multicare seconding services to deliver best-in-class user experiences, which in turn boosted user loyalty. Additionally, the number of registered merchants in PJT exceeded 4 million with a double-digit year-over-year increase in active trading merchants.
Q：What is the purpose of PGT's offline flagship store in Shenzhen Huaqiang Bay?
A：The purpose of PGT's offline flagship store in Shenzhen Huaqiang Bay is to drive transparency in the pre-owned consumer electronics industry by offering a professional inspection and seamless warehouse to retail model that reduces the restocking cycle and inventory costs for merchants, as well as minimizing logistics delays and after sales disputes.
Q：What is the impact of PGT's collaboration with influencers on live streaming platforms?
A：The impact of PGT's collaboration with influencers on live streaming platforms is to enable them to help users find high-quality and cost-effective devices, creating a specialty buyer model and enhancing the service loop between PGT and consumers.
Q：How is the company planning to integrate confinement products into its self-operate distribution channels?
A：The company plans to integrate confinement products into more of its self-operate distribution channels to provide small and medium-sized merchants with broader access to retail opportunities.
Q：What were the year-over-year changes in revenue and take rate for the multi recycling services?
A：Revenue for the multi recycling services nearly tripled year over year in the first quarter, with gold recycling experiencing faster growth and a slight increase in the recycling service fee for luxury goods. The overall multi recycling take rate remained stable year over year.
Q：What is the growth trend of total revenues and adjusted operating income?
A：The total revenue grew by 27.5% to over 4000 650 million, and the adjusted operating income increased by 39.5% to over 110 million in the first quarter, driven by the national subsidy and enhanced fulfillment capabilities.
Q：What is the growth of net product revenues and how does it affect total revenue?
A：Net product revenues increased by Ed Ed to RV Za Za primarily due to an increase in the sales of consumer electronics through online channels, which significantly contributed to the overall total revenue growth.
Q：What are the changes in non GAAP operating expenses and what factors contributed to these changes?
A：Non GAAP operating expenses increased due to various factors: merchandise costs increased by 22.7%, fulfillment expenses increased by 38.1%, and selling and marketing expenses increased by 72.8%. These increases were attributed to growth in personnel costs, logistics expenses, and operational costs related to recycling and transaction activities, as well as advertising and promotional expenses.
Q：How did general and administrative expenses change and what was the reason for the change?
A：General and administrative expenses decreased by 14.1%, while non GAAP G&A expenses increased by 2.2%. The decrease in GAAP G&A expenses and the increase in non GAAP G&A expenses were primarily due to changes in personnel costs.
Q：What was the percentage increase in non GAAP Technology and content expenses?
A：Non GAAP Technology and content expenses increased by Ed million, with the increase primarily due to an increase in personnel costs. However, non GAAP technology and content expenses as a percentage of total revenues decreased to Ed Ed to 1.2.
Q：What was the non GAAP operating income for the first quarter of the year?
A：The non GAAP operating income for the first quarter of the year was Ed million, representing an increase of Ed Ed year over year.
Q：How much was spent on share repurchase in the first quarter, and how many shares have been repurchased under the current program?
A：In the first quarter, approximately 0.4 million Adss were repurchased for approximately 1.2 million U.S. dollars. As of March 31st, 2025, a total of approximately 10.7 million Adss have been repurchased for approximately 27.1 million U.S. dollars under the current share repurchase program, which authorizes the repurchase of up to 50 million U.S. dollars worth of the company's shares, including Adss.
Q：What is the total amount of cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers as of March 31st, 2025?
A：As of March 31, 2025, cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers totaled Ed ed billion RMB.
Q：What is the projected total revenue range for the second quarter of 2025?
A：The projected total revenue range for the second quarter of 2025 is between RMB 4000 710 million and RMB 4008 1 million, representing a year-over-year increase of 24.4% to 20% LLY.
Q：How effective has the national subsidy been in promoting recycling and trading programs, and what is the impact on the company's second-hand recycling and resale business?
A：The national subsidy has been effective in promoting recycling and trading programs. The shipment of new smartphones in the domestic market increased by Ed year over year in the first quarter, indicating positive growth. New consumer electronics sales on the company's partner platform, JD Com, have strong growth momentum. The subsidies for trade-in programs, combined with the company's strong positioning in key recycling channels, have driven the accelerated growth of its one business. The company's national subsidy has led to a stronger incentive for users to engage in recycling and trade-in services.
Q：What was the reason for the year-over-year improvement in non-scattered margin in the first quarter?
A：The year-over-year improvement in non-scattered margin in the first quarter was mainly due to the company's pricing strategy and better control of the overall expense ratio. Additionally, the optimization of business and pricing strategies, as well as a shift in the supply chains, contributed to the profit margin improvement.
Q：What is the company's goal for total revenue growth and non GAAP operating profit margin for the full year?
A：The company remains committed to accelerating total revenue growth. It will continue to strengthen fulfillment capacity and brand influence to support growth driven by national subsidy programs and maintain a competitive pricing strategy. In the future, the company aims to gradually improve its non GAAP operating profit margin, reflecting effective operating leverage.
Q：What is the progress on store openings in the first quarter and how many Ehrs recycled stores were there as of March 31st, 2025?
A：As of March 31, 2025, there were a total of 1886 Ehrs recycled stores nationwide, including 917 self-operated stores and 969 joint-operated stores. This represents a net increase of 458 stores compared to the same period last year. The company transitioned some joint-operated stores to self-operated stores in high-tier cities to handle the increase in trading volumes from national subsidies and improve user satisfaction.
Q：What initiatives have been taken to enhance the AHS recycle brand, and how is the company tracking the progress in customer acquisition costs?
A：To enhance the AHS recycle brand, the company has solidified its position by providing best-in-class fulfillment services. It plans to continue using well-planned new video campaigns to promote services and raise brand awareness. By leveraging targeting, it guides users to nearby AHS recycled stores, driving orders through various channels. The company is tracking progress in customer acquisition costs related to these initiatives to prioritize improving brand awareness and loyalty.
Q：How has the national subsidy influenced user awareness and adoption of the company's services?
A：The national subsidy has played a role in increasing user awareness and adoption of the company's recycling services. The company plans to continue strengthening the AHS Recycle brand and refining recycling service offerings to capture greater market share and reinforce user perception.
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