First Quarter 2022 Highlights
- Total net revenues grew by 45.7% to
RMB2,206.5 million (US$348.1 million ) fromRMB1,514.4 million in the first quarter of 2021. - Loss from operations was
RMB134.8 million (US$21.3 million ), compared toRMB111.4 million in the first quarter of 2021. Adjusted income from operations (non-GAAP)[1] wasRMB3.9 million (US$0.6 million ) compared to an adjusted loss from operations ofRMB33.6 million in the first quarter of 2021. - Total Gross Merchandise Volume ("GMV[2]") increased by 51.6% to
RMB9.4 billion fromRMB6.2 billion in the first quarter of 2021. GMV for product sales increased by 57.1% toRMB2.2 billion fromRMB1.4 billion in the first quarter of 2021. GMV for online marketplaces increased by 50.0% toRMB7.2 billion fromRMB4.8 billion in the first quarter of 2021. - Number of consumer products transacted[3] increased by 31.3% to 8.4 million from 6.4 million in the first quarter of 2021.
[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.
First Quarter 2022 Financial Results
REVENUE
Total net revenues increased by 45.7% to
- Net product revenues increased by 45.7% to
RMB1,908.9 million (US$301.1 million ) fromRMB1,310.5 million in the same period of 2021. The increase was primarily attributable to an increase in the sourcing volume and the corresponding sales of pre-owned consumer electronics throughPJT Marketplace ,Paipai Marketplace and the Company's offline channels. - Net service revenues increased by 46.0% to
RMB297.6 million (US$46.9 million ) fromRMB203.9 million in the same period of 2021. The increase was primarily due to the increases in transaction volume onPJT Marketplace andPaipai Marketplace .
OPERATING COSTS AND EXPENSES
Operating costs and expenses increased by 44.7% to
- Merchandise costs increased by 49.7% to
RMB1,640.0 million (US$258.7 million ) fromRMB1,095.7 million in the same period of 2021. The increase was primarily due to the growth in product revenues. - Fulfillment expenses increased by 32.8% to
RMB296.2 million (US$46.7 million ) fromRMB223.0 million in the same period of 2021. The increase was primarily due to (i) the increases in logistics expenses and operation center related expenses, which were in line with the increase in sales of pre-owned consumer electronics; (ii) an increase in personnel cost in connection with the Company's growing business; and (iii) an increase in the recognition of share-based compensation expense resulting from options granted to employees with an IPO condition since the second quarter of 2021. - Selling and marketing expenses increased by 38.3% to
RMB307.8 million (US$48.6 million ) fromRMB222.6 million in the same period of 2021. The increase was primarily due to (i) an increase in sales promotion and coupon expenses in connection with business development; (ii) an increase in personnel cost in connection with the Company's growing business; and (iii) an increase in the recognition of share-based compensation expense resulting from options granted to employees with an IPO condition since the second quarter of 2021. - General and administrative expenses increased by 53.1% to
RMB45.0 million (US$7.1 million ) fromRMB29.4 million in the same period of 2021. The increase was primarily due to the increase in the recognition of share-based compensation expense resulting from options granted to employees with an IPO condition since the second quarter of 2021. - Technology and content expenses increased by 14.4% to
RMB63.5 million (US$10.0 million ) fromRMB55.5 million in the same period of 2021. The increase was primarily due to (i) the increases in operation center and system upgrade related expenses in connection with the Company's growing business; and (ii) the increase in the recognition of share-based compensation expense resulting from options granted to employees with an IPO condition since the second quarter of 2021.
LOSS (INCOME) FROM OPERATIONS
Loss from operations increased by 21.0% to
NET LOSS
Net loss increased by 70.3% to
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)[1] were
CASH AND CASH EQUIVALENTS, RESTRICTED CASH, SHORT-TERM INVESTMENTS AND FUNDS RECEIVABLE FROM THIRD PARTY PAYMENT SERVICE PROVIDERS
Cash and cash equivalents, restricted cash, short-term investments and funds receivable from third party payment service providers decreased to
Business Outlook
For the second quarter of 2022, the Company currently expects its total revenues to be between
On
Conference Call Information
The Company's management will hold a conference call
International: |
1-412-317-6061 |
|
United States Toll Free: |
1-888-317-6003 |
|
Mainland |
4001-206115 |
|
Hong Kong Toll Free: |
800-963976 |
|
Access Code: |
8697849 |
The replay will be accessible through
International: |
1-412-317-0088 |
|
United States Toll Free: |
1-877-344-7529 |
|
Access Code: |
7316914 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at ir.atrenew.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@atrenew.com
In
Email: atrenew@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 |
|||||||||||
2021 |
2022 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
1,356,342 |
1,126,509 |
177,702 |
|||||||||
Restricted cash |
150,000 |
— |
— |
|||||||||
Short-term investments |
510,467 |
880,000 |
138,817 |
|||||||||
Amount due from related parties, net |
410,088 |
304,907 |
48,098 |
|||||||||
Inventories |
478,751 |
667,833 |
105,348 |
|||||||||
Funds receivable from third party payment service providers |
405,095 |
412,958 |
65,143 |
|||||||||
Prepayments and other receivables, net |
840,102 |
776,980 |
122,566 |
|||||||||
Total current assets |
4,150,845 |
4,169,187 |
657,674 |
|||||||||
Non-current assets: |
||||||||||||
Long-term investments |
241,527 |
237,746 |
37,504 |
|||||||||
Property and equipment, net |
103,843 |
102,149 |
16,114 |
|||||||||
Intangible assets, net |
1,075,811 |
994,752 |
156,918 |
|||||||||
|
1,803,415 |
1,803,415 |
284,482 |
|||||||||
Other non-current assets |
127,321 |
105,118 |
16,582 |
|||||||||
Total non-current assets |
3,351,917 |
3,243,180 |
511,600 |
|||||||||
TOTAL ASSETS |
7,502,762 |
7,412,367 |
1,169,274 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
94,999 |
154,364 |
24,350 |
|||||||||
Accounts payable |
41,311 |
74,974 |
11,827 |
|||||||||
Contract liabilities |
211,964 |
258,784 |
40,822 |
|||||||||
Accrued expenses and other current liabilities |
296,627 |
368,817 |
58,179 |
|||||||||
Accrued payroll and welfare |
105,787 |
75,249 |
11,870 |
|||||||||
Amount due to related parties |
73,976 |
65,787 |
10,378 |
|||||||||
Total current liabilities |
824,664 |
997,975 |
157,426 |
|||||||||
Non-current liabilities: |
||||||||||||
Operating lease liabilities, non-current |
34,501 |
35,511 |
5,602 |
|||||||||
Deferred tax liabilities |
223,138 |
210,025 |
33,131 |
|||||||||
Total non-current liabilities |
257,639 |
245,536 |
38,733 |
|||||||||
TOTAL LIABILITIES |
1,082,303 |
1,243,511 |
196,159 |
|||||||||
TOTAL SHAREHOLDERS' EQUITY |
6,420,459 |
6,168,856 |
973,115 |
|||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
7,502,762 |
7,412,367 |
1,169,274 |
|
||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||
Three months ended, |
||||||||||||||||
|
|
|
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Net revenues |
||||||||||||||||
Net product revenues |
1,310,547 |
2,075,955 |
1,908,932 |
301,127 |
||||||||||||
Net service revenues |
203,884 |
359,873 |
297,572 |
46,941 |
||||||||||||
Operating expenses (1)(2) |
||||||||||||||||
Merchandise costs |
(1,095,696) |
(1,800,488) |
(1,640,022) |
(258,707) |
||||||||||||
Fulfillment expenses |
(223,019) |
(290,128) |
(296,220) |
(46,728) |
||||||||||||
Selling and marketing expenses |
(222,580) |
(368,767) |
(307,794) |
(48,553) |
||||||||||||
General and administrative expenses |
(29,408) |
(51,898) |
(44,958) |
(7,092) |
||||||||||||
Technology and content expenses |
(55,499) |
(61,962) |
(63,539) |
(10,023) |
||||||||||||
Total operating expenses |
(1,626,202) |
(2,573,243) |
(2,352,533) |
(371,103) |
||||||||||||
Other operating income, net |
361 |
11,523 |
11,241 |
1,773 |
||||||||||||
Loss from operations |
(111,410) |
(125,892) |
(134,788) |
(21,262) |
||||||||||||
Interest expense |
(6,552) |
(1,785) |
(1,003) |
(158) |
||||||||||||
Interest income |
3,420 |
2,086 |
1,724 |
272 |
||||||||||||
Other income (loss), net |
914 |
(53,301) |
(38,623) |
(6,093) |
||||||||||||
Loss before income taxes |
(113,628) |
(178,892) |
(172,690) |
(27,241) |
||||||||||||
Income tax benefits |
19,459 |
82,103 |
13,113 |
2,069 |
||||||||||||
Share of loss in equity method investments |
(612) |
(6,847) |
(1,775) |
(280) |
||||||||||||
Net loss |
(94,781) |
(103,636) |
(161,352) |
(25,452) |
||||||||||||
Accretion of convertible redeemable preferred shares |
(508,627) |
— |
— |
— |
||||||||||||
Net loss attributable to ordinary shareholders of |
(603,408) |
(103,636) |
(161,352) |
(25,452) |
||||||||||||
Net loss per ordinary share: |
||||||||||||||||
Basic |
(32.13) |
(0.63) |
(0.99) |
(0.16) |
||||||||||||
Diluted |
(32.13) |
(0.63) |
(0.99) |
(0.16) |
||||||||||||
Weighted average number of shares used in |
||||||||||||||||
Basic |
18,782,620 |
163,367,269 |
162,576,959 |
162,576,959 |
||||||||||||
Diluted |
18,782,620 |
163,367,269 |
162,576,959 |
162,576,959 |
||||||||||||
Net loss |
(94,781) |
(103,636) |
(161,352) |
(25,452) |
||||||||||||
Foreign currency translation adjustments |
(275) |
1,390 |
499 |
79 |
||||||||||||
Total comprehensive loss |
(95,056) |
(102,246) |
(160,853) |
(25,373) |
||||||||||||
Accretion of convertible redeemable preferred shares |
(508,627) |
— |
— |
— |
||||||||||||
Total comprehensive loss attributable to |
(603,683) |
(102,246) |
(160,853) |
(25,373) |
|
||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (CONTINUED) |
||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||
Three months ended, |
||||||||||||||||
|
|
|
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(1) Includes share-based compensation expenses as follows: |
||||||||||||||||
Fulfillment expenses |
— |
(10,291) |
(14,763) |
(2,329) |
||||||||||||
Selling and marketing expenses |
— |
(8,600) |
(15,406) |
(2,430) |
||||||||||||
General and administrative expenses |
— |
(18,977) |
(16,583) |
(2,616) |
||||||||||||
Technology and content expenses |
— |
(7,656) |
(4,559) |
(719) |
||||||||||||
(2) Includes amortization of intangible assets and deferred cost resulting |
||||||||||||||||
Selling and marketing expenses |
(76,258) |
(88,455) |
(85,755) |
(13,528) |
||||||||||||
Technology and content expenses |
(1,580) |
(1,580) |
(1,580) |
(249) |
Reconciliations of GAAP and Non-GAAP Results |
||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||
Three months ended, |
||||||||||||||||
|
|
|
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Loss from operations |
(111,410) |
(125,892) |
(134,788) |
(21,262) |
||||||||||||
Add: |
||||||||||||||||
Share-based compensation expense |
— |
45,524 |
51,311 |
8,094 |
||||||||||||
Amortization of intangible assets and deferred cost resulting from assets and |
77,838 |
90,035 |
87,335 |
13,777 |
||||||||||||
Adjusted (loss) income from operations (non-GAAP) |
(33,572) |
9,667 |
3,858 |
609 |
||||||||||||
Net loss |
(94,781) |
(103,636) |
(161,352) |
(25,452) |
||||||||||||
Add: |
||||||||||||||||
Share-based compensation expense |
— |
45,524 |
51,311 |
8,094 |
||||||||||||
Amortization of intangible assets and deferred cost resulting from assets and |
77,838 |
90,035 |
87,335 |
13,777 |
||||||||||||
Less: |
||||||||||||||||
Tax effect of amortization of intangible assets and deferred cost resulting |
(19,459) |
(82,103) |
(13,113) |
(2,069) |
||||||||||||
Adjusted net loss (non-GAAP) |
(36,402) |
(50,180) |
(35,819) |
(5,650) |
||||||||||||
Adjusted net loss per ordinary share (non-GAAP): |
||||||||||||||||
Basic |
(1.94) |
(0.31) |
(0.22) |
(0.03) |
||||||||||||
Diluted |
(1.94) |
(0.31) |
(0.22) |
(0.03) |
||||||||||||
Weighted average number of shares used in calculating net loss per |
||||||||||||||||
Basic |
18,782,620 |
163,367,269 |
162,576,959 |
162,576,959 |
||||||||||||
Diluted |
18,782,620 |
163,367,269 |
162,576,959 |
162,576,959 |
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