Second Quarter 2021 Highlights
- Total net revenues grew by 56.2% to
RMB1,867.7 million (US$289.3 million ) fromRMB1,195.8 million in the second quarter of 2020. - Loss from operations was
RMB507.3 million (US$78.6 million ), compared toRMB116.0 million in the second quarter of 2020. Adjusted loss from operations (non-GAAP)[1] wasRMB51.0 million (US$7.9 million ), compared toRMB36.6 million in the second quarter of 2020. - Total Gross Merchandise Volume ("GMV[2]") increased by 69.6% to
RMB7.8 billion fromRMB4.6 billion in the second quarter of 2020. GMV for product sales increased by 72.7% toRMB1.9 billion fromRMB1.1 billion in the second quarter of 2020. GMV for online marketplaces increased by 68.6% toRMB5.9 billion fromRMB3.5 billion in the second quarter of 2020. - Number of consumer products transacted[3] increased by 27.9% to 7.8 million from 6.1 million in the second quarter of 2020.
[1] See "Reconciliations of GAAP and Non-GAAP Results" for more information. |
[2] "GMV" represents the total dollar value of goods distributed to merchants and consumers through transactions on the Company's platform in a given period for which payments have been made, prior to returns and cancellations, excluding shipping cost but including sales tax. |
[3] "Number of consumer products transacted" represents the number of consumer products distributed to merchants and consumers through transactions on the Company's |
Mr.
Mr.
Second Quarter 2021 Financial Results
REVENUE
Total net revenues increased by 56.2% to
- Net product revenues increased by 53.1% to
RMB1,603.4 million (US$248.3 million ) fromRMB1,047.2 million in the same period of 2020. The increase was attributable to an increase in the sales of pre-owned consumer electronics throughPJT Marketplace ,Paipai Marketplace and the Company's offline trade-in channels. GMV for product sales increased by 72.7% toRMB1.9 billion fromRMB1.1 billion in the second quarter of 2020. - Net service revenues increased by 77.9% to
RMB264.3 million (US$40.9 million ) fromRMB148.6 million in the same period of 2020. The increase was primarily due to the increases in transaction volume onPJT Marketplace andPaipai Marketplace and an increase in the average commission rate. GMV for online marketplaces increased by 68.6% toRMB5.9 billion fromRMB3.5 billion in the second quarter of 2020.
OPERATING COSTS AND EXPENSES
Operating costs and expenses increased by 81.0% to
- Merchandise costs increased by 56.9% to
RMB1,395.4 million (US$216.1 million ) fromRMB889.5 million in the same period of 2020. The increase was primarily due to the growth in product sales. - Fulfillment expenses increased by 84.4% to
RMB275.5 million (US$42.7 million ) fromRMB149.4 million in the same period of 2020. The increase was primarily due to (i) an increase in personnel cost in connection with the Company's growing business and the immediate recognition of share-based compensation expense ofRMB42.5 million (US$6.6 million ) resulting from options granted to employees with an IPO condition; and (ii) the increases in logistics expenses and operation center related expenses which were in line with the increase in sales of pre-owned consumer electronics. - Selling and marketing expenses increased by 60.3% to
RMB316.3 million (US$49.0 million ) fromRMB197.3 million in the same period of 2020. The increase was primarily due to (i) an increase in personnel cost in connection with the Company's growing business and the immediate recognition of share-based compensation expense ofRMB26.3 million (US$4.1 million ) resulting from options granted to employees with an IPO condition; and (ii) an increase in sales commissions in connection with traffic acquisition and sourcing of pre-owned devices. - General and administrative expenses increased by 593.2% to
RMB310.3 million (US$48.1 million ) fromRMB44.8 million in the same period of 2020. The increase was primarily due to the share-based compensation expense ofRMB220.1 million (US$34.1 million ) in connection with the restricted share units and options granted to the management immediately prior to the IPO and the immediate recognition of share-based compensation expense ofRMB62.0 million (US$9.6 million ) resulting from options granted to employees with an IPO condition. - Technology and content expenses increased by 144.5% to
RMB81.9 million (US$12.7 million ) fromRMB33.5 million in the same period of 2020. The increase was primarily due to the increase in personnel cost in connection to the expansion of the research and development team and the immediate recognition of share-based compensation expense ofRMB27.6 million (US$4.3 million ) resulting from options granted to employees with an IPO condition.
LOSS FROM OPERATIONS
Loss from operations was
NET LOSS
Net loss was
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE
Basic and diluted net loss per ordinary share were
Adjusted basic and diluted net loss per ordinary share (non-GAAP)[5] were
[4] See "Reconciliations of GAAP and Non-GAAP Results" for more information. |
[5] See "Reconciliations of GAAP and Non-GAAP Results" for more information. |
CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
Cash and cash equivalents and short-term investments increased to
Business Outlook
For the third quarter of 2021, the Company currently expects its total revenues to be between
Environment, Social, and Governance
On
On
On
Conference Call Information
The Company's management will hold a conference call on
International: |
1-412-317-6061 |
|
United States Toll Free: |
1-888-317-6003 |
|
Mainland |
4001-206115 |
|
Hong Kong Toll Free: |
800-963976 |
|
Access Code: |
6346736 |
The replay will be accessible through
International: |
1-412-317-0088 |
|
United States Toll Free: |
1-877-344-7529 |
|
Access Code: |
10159327 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at ir.aihuishou.com.
About
Headquartered in
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Use of Non-GAAP Financial Measures
The Company also uses certain non-GAAP financial measures in evaluating its business. For example, the Company uses adjusted loss from operations, adjusted net loss and adjusted net loss per ordinary share as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with
The Company presents non-GAAP financial measures because they are used by the Company's management to evaluate the Company's financial and operating performance and formulate business plans. The Company believes that adjusted loss from operations and adjusted net loss help identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that are included in loss from operations and net loss. The Company also believes that the use of non-GAAP financial measures facilitates investors' assessment of the Company's operating performance. The Company believes that adjusted loss from operations and adjusted net loss provide useful information about the Company's operating results, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision making.
The non-GAAP financial measures are not defined under
The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the
Investor Relations Contact
In China:
Investor Relations
Email: ir@aihuishou.com
In
Email: aihuishou@icrinc.com
Tel: +1-212-537-0461
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||
As of |
As of |
|||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
918,076 |
2,785,542 |
431,426 |
|||||||||
Short-term investments |
97,866 |
50,000 |
7,744 |
|||||||||
Amount due from related parties |
289,156 |
305,441 |
47,307 |
|||||||||
Inventories, net |
176,994 |
352,326 |
54,568 |
|||||||||
Funds receivable from third party payment service providers |
124,262 |
191,221 |
29,616 |
|||||||||
Prepayments and other receivables, net |
268,284 |
562,352 |
87,097 |
|||||||||
Total current assets |
1,874,638 |
4,246,882 |
657,758 |
|||||||||
Non-current assets: |
||||||||||||
Investment in equity investees |
96,362 |
114,112 |
17,674 |
|||||||||
Property and equipment, net |
69,562 |
78,265 |
12,122 |
|||||||||
Intangible assets, net |
1,367,841 |
1,241,364 |
192,263 |
|||||||||
|
1,803,415 |
1,803,415 |
279,313 |
|||||||||
Other non-current assets |
14,520 |
98,115 |
15,196 |
|||||||||
Total non-current assets |
3,351,700 |
3,335,271 |
516,568 |
|||||||||
TOTAL ASSETS |
5,226,338 |
7,582,153 |
1,174,326 |
|||||||||
LIABILITIES, MEZZANINE EQUITY AND EQUITY (DEFICIT) |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
369,657 |
209,205 |
32,402 |
|||||||||
Accounts payable |
27,201 |
48,317 |
7,483 |
|||||||||
Accrued expenses and other current liabilities |
396,612 |
394,331 |
61,074 |
|||||||||
Accrued payroll and welfare |
115,400 |
107,319 |
16,622 |
|||||||||
Convertible bonds |
160,000 |
— |
— |
|||||||||
Amount due to related parties |
114,669 |
45,067 |
6,980 |
|||||||||
Total current liabilities |
1,183,539 |
804,239 |
124,561 |
|||||||||
Non-current liabilities: |
||||||||||||
Long-term borrowings |
32,624 |
14,066 |
2,179 |
|||||||||
Warrant liability |
— |
19,587 |
3,034 |
|||||||||
Deferred tax liabilities |
341,960 |
350,341 |
54,261 |
|||||||||
Total non-current liabilities |
374,584 |
383,994 |
59,474 |
|||||||||
TOTAL LIABILITIES |
1,558,123 |
1,188,233 |
184,035 |
|||||||||
TOTAL MEZZANINE EQUITY |
8,879,894 |
— |
— |
|||||||||
EQUITY (DEFICIT) |
||||||||||||
TOTAL EQUITY (DEFICIT) |
(5,211,679) |
6,393,920 |
990,291 |
|||||||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY |
5,226,338 |
7,582,153 |
1,174,326 |
|
||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND |
||||||||||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
Three months ended |
Six months ended |
|||||||||||||||||||||||
2020 |
2021 |
2020 |
2021 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
Net revenues |
||||||||||||||||||||||||
Net product revenues |
1,047,248 |
1,603,419 |
248,338 |
1,653,351 |
2,913,966 |
451,316 |
||||||||||||||||||
Net service revenues |
148,564 |
264,297 |
40,934 |
234,673 |
468,181 |
72,512 |
||||||||||||||||||
Operating expenses (1)(2) |
||||||||||||||||||||||||
Merchandise costs |
(889,469) |
(1,395,358) |
(216,113) |
(1,390,269) |
(2,491,054) |
(385,815) |
||||||||||||||||||
Fulfillment expenses |
(149,391) |
(275,525) |
(42,673) |
(307,345) |
(498,544) |
(77,215) |
||||||||||||||||||
Selling and marketing expenses |
(197,305) |
(316,295) |
(48,988) |
(341,455) |
(538,875) |
(83,461) |
||||||||||||||||||
General and administrative expenses |
(44,758) |
(310,280) |
(48,056) |
(98,658) |
(339,688) |
(52,611) |
||||||||||||||||||
Technology and content expenses |
(33,524) |
(81,903) |
(12,685) |
(73,689) |
(137,402) |
(21,281) |
||||||||||||||||||
Total operating expenses |
(1,314,447) |
(2,379,361) |
(368,515) |
(2,211,416) |
(4,005,563) |
(620,383) |
||||||||||||||||||
Other operating income |
2,661 |
4,369 |
677 |
8,472 |
4,730 |
733 |
||||||||||||||||||
Loss from operations |
(115,974) |
(507,276) |
(78,566) |
(314,920) |
(618,686) |
(95,822) |
||||||||||||||||||
Interest expense |
(7,604) |
(5,513) |
(854) |
(11,139) |
(12,065) |
(1,869) |
||||||||||||||||||
Interest income |
5,360 |
1,013 |
157 |
7,270 |
4,433 |
687 |
||||||||||||||||||
Other income, net |
846 |
(4,862) |
(753) |
7,405 |
(3,948) |
(611) |
||||||||||||||||||
Fair value change in warrant liabilities |
— |
(9,242) |
(1,431) |
— |
(9,242) |
(1,431) |
||||||||||||||||||
Loss before income taxes |
(117,372) |
(525,880) |
(81,447) |
(311,384) |
(639,508) |
(99,046) |
||||||||||||||||||
Income tax benefits |
11,914 |
19,460 |
3,014 |
23,942 |
38,919 |
6,028 |
||||||||||||||||||
Share of income (loss) in equity method |
(1,801) |
735 |
114 |
(6,082) |
123 |
19 |
||||||||||||||||||
Net loss |
(107,259) |
(505,685) |
(78,319) |
(293,524) |
(600,466) |
(92,999) |
||||||||||||||||||
Accretion of convertible redeemable preferred |
(326,123) |
— |
— |
(652,246) |
(508,627) |
(78,776) |
||||||||||||||||||
Net loss attributable to ordinary shareholders |
(433,382) |
(505,685) |
(78,319) |
(945,770) |
(1,109,093) |
(171,775) |
||||||||||||||||||
Net loss per ordinary share: |
||||||||||||||||||||||||
Basic |
(23.07) |
(13.47) |
(2.09) |
(50.35) |
(39.30) |
(6.09) |
||||||||||||||||||
Diluted |
(23.07) |
(13.47) |
(2.09) |
(50.35) |
(39.30) |
(6.09) |
||||||||||||||||||
Weighted average number of shares used in |
||||||||||||||||||||||||
Basic |
18,782,620 |
37,552,443 |
37,552,443 |
18,782,620 |
28,219,382 |
28,219,382 |
||||||||||||||||||
Diluted |
18,782,620 |
37,552,443 |
37,552,443 |
18,782,620 |
28,219,382 |
28,219,382 |
||||||||||||||||||
Net loss |
(107,259) |
(505,685) |
(78,319) |
(293,524) |
(600,466) |
(92,999) |
||||||||||||||||||
Foreign currency translation adjustments |
16 |
2,427 |
376 |
(614) |
2,152 |
333 |
||||||||||||||||||
Total comprehensive loss |
(107,243) |
(503,258) |
(77,943) |
(294,138) |
(598,314) |
(92,666) |
||||||||||||||||||
Accretion of convertible redeemable preferred |
(326,123) |
— |
— |
(652,246) |
(508,627) |
(78,776) |
||||||||||||||||||
Total comprehensive loss attributable to |
(433,366) |
(503,258) |
(77,943) |
(946,384) |
(1,106,941) |
(171,442) |
|
||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (CONTINUED) |
||||||||||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
Three months ended |
Six months ended |
|||||||||||||||||||||||
2020 |
2021 |
2020 |
2021 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
(1) Includes share-based compensation expenses as follows: |
||||||||||||||||||||||||
Fulfillment expenses |
— |
(42,491) |
(6,581) |
— |
(42,491) |
(6,581) |
||||||||||||||||||
Selling and marketing expenses |
— |
(26,264) |
(4,068) |
— |
(26,264) |
(4,068) |
||||||||||||||||||
General and administrative expenses |
— |
(282,070) |
(43,686) |
— |
(282,070) |
(43,686) |
||||||||||||||||||
Technology and content expenses |
— |
(27,580) |
(4,272) |
— |
(27,580) |
(4,272) |
||||||||||||||||||
(2) Includes amortization of intangible assets resulting from |
||||||||||||||||||||||||
Selling and marketing expenses |
(77,766) |
(76,258) |
(11,811) |
(156,286) |
(152,517) |
(23,622) |
||||||||||||||||||
Technology and content expenses |
(1,580) |
(1,580) |
(245) |
(3,160) |
(3,160) |
(489) |
Reconciliations of GAAP and Non-GAAP Results |
||||||||||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
Three months ended |
Six months ended |
|||||||||||||||||||||||
2020 |
2021 |
2020 |
2021 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
Loss from operations |
(115,974) |
(507,276) |
(78,566) |
(314,920) |
(618,686) |
(95,822) |
||||||||||||||||||
Add: |
||||||||||||||||||||||||
Share-based compensation expense |
— |
378,405 |
58,607 |
— |
378,405 |
58,607 |
||||||||||||||||||
Amortization of intangible assets resulting from business |
79,346 |
77,838 |
12,056 |
159,446 |
155,677 |
24,111 |
||||||||||||||||||
Adjusted loss from operations |
(36,628) |
(51,033) |
(7,903) |
(155,474) |
(84,604) |
(13,104) |
||||||||||||||||||
Net loss |
(107,259) |
(505,685) |
(78,319) |
(293,524) |
(600,466) |
(92,999) |
||||||||||||||||||
Add: |
||||||||||||||||||||||||
Share-based compensation expense |
— |
378,405 |
58,607 |
— |
378,405 |
58,607 |
||||||||||||||||||
Amortization of intangible assets resulting from business |
79,346 |
77,838 |
12,056 |
159,446 |
155,677 |
24,111 |
||||||||||||||||||
Fair value change in warrant liabilities |
— |
9,242 |
1,431 |
— |
9,242 |
1,431 |
||||||||||||||||||
Less: |
||||||||||||||||||||||||
Tax effect of amortization of intangible assets resulting from |
(11,914) |
(19,460) |
(3,014) |
(23,942) |
(38,919) |
(6,028) |
||||||||||||||||||
Adjusted net loss |
(39,827) |
(59,660) |
(9,239) |
(158,020) |
(96,061) |
(14,878) |
||||||||||||||||||
Adjusted net loss per ordinary share: |
||||||||||||||||||||||||
Basic |
(2.12) |
(1.59) |
(0.25) |
(8.41) |
(3.40) |
(0.53) |
||||||||||||||||||
Diluted |
(2.12) |
(1.59) |
(0.25) |
(8.41) |
(3.40) |
(0.53) |
||||||||||||||||||
Weighted average number of shares used in calculating net |
||||||||||||||||||||||||
Basic |
18,782,620 |
37,552,443 |
37,552,443 |
18,782,620 |
28,219,382 |
28,219,382 |
||||||||||||||||||
Diluted |
18,782,620 |
37,552,443 |
37,552,443 |
18,782,620 |
28,219,382 |
28,219,382 |
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