First Quarter 2023 Highlights
- Total net revenues grew by 30.2% to
RMB2,871.8 million (US$418.2 million ) fromRMB2,206.5 million in the first quarter of 2022. - Loss from operations was
RMB67.6 million (US$9.8 million ), compared toRMB134.8 million in the first quarter of 2022. Adjusted income from operations (non-GAAP)1 wasRMB44.4 million (US$6.5 million ), compared toRMB3.9 million in the first quarter of 2022. - Number of consumer products transacted2 was 7.9 million, compared to 8.4 million in the first quarter of 2022.
Mr.
Mr.
1. See "Reconciliations of GAAP and Non-GAAP Results" for more information. |
2. "Number of consumer products transacted" represents the number of consumer products distributed to merchants and consumers through transactions on the Company's |
First Quarter 2023 Financial Results
REVENUE
Total net revenues increased by 30.2% to
- Net product revenues increased by 34.9% to
RMB2,575.2 million (US$375.0 million ) fromRMB1,908.9 million in the same period of 2022. The increase was primarily attributable to an increase in the sales of pre-owned consumer electronics both through the Company's online and offline channels. - Net service revenues were
RMB296.6 million (US$43.2 million ), compared toRMB297.6 million in the same period of 2022, representing a decrease of 0.3%. This was primarily due to the lessened consignment business ofPaipai Marketplace as the Company pivoted its strategic focus, which was partially offset by an increase in the service revenue generated fromPJT Marketplace .
OPERATING COSTS AND EXPENSES
Operating costs and expenses were
- Merchandise costs were
RMB2,252.1 million (US$327.9 million ), compared toRMB1,640.0 million in the same period of 2022, representing an increase of 37.3%. This was primarily due to the growth in product sales. - Fulfillment expenses decreased by 10.1% to
RMB266.4 million (US$38.8 million ) fromRMB296.2 million in the same period of 2022. The decrease was primarily due to (i) a decrease in operation center related expenses as the Company optimized its store and operation station networks, (ii) a decrease in share-based compensation expenses, and (iii) a decrease in logistics expenses benefiting from the reduction of unit cost. - Selling and marketing expenses decreased by 2.9% to
RMB299.0 million (US$43.5 million ) fromRMB307.8 million in the same period of 2022. The decrease was primarily due to a decrease in share-based compensation expenses, which was partially offset by the increases in marketing expenses and office related expenses mainly composed of travelling expenses in relation to business development. - General and administrative expenses were
RMB76.4 million (US$11.1 million ), compared toRMB45.0 million in the same period of 2022, representing an increase of 69.8%, primarily due to an increase in professional service and consulting fees. - Technology and content expenses decreased by 25.4% to
RMB47.4 million (US$6.9 million ) fromRMB63.5 million in the same period of 2022. The decrease was primarily due to the changes in technological personnel cost relating to platforms as the Company's platforms matured.
LOSS FROM OPERATIONS
Loss from operations was
Adjusted income from operations (non-GAAP)1 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 income 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, short-term investments and funds receivable from third party payment service providers were
Business Outlook
For the second quarter of 2023, the Company currently expects its total revenues to be between
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: |
7263243 |
The replay will be accessible through
International: |
1-412-317-0088 |
|
United States Toll Free: |
1-877-344-7529 |
|
Access Code: |
2795571 |
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 income from operations, adjusted net (loss) income and adjusted net (loss) income 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 income from operations and adjusted net (loss) income 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 income from operations and adjusted net (loss) income 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
ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||
As of |
As of |
|||||||||||
2022 |
2023 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
1,703,626 |
1,565,659 |
227,978 |
|||||||||
Short-term investments |
782,230 |
644,280 |
93,814 |
|||||||||
Amount due from related parties, net |
115,501 |
102,618 |
14,942 |
|||||||||
Inventories |
433,467 |
583,398 |
84,949 |
|||||||||
Funds receivable from third party payment service |
316,277 |
292,780 |
42,632 |
|||||||||
Prepayments and other receivables, net |
539,077 |
608,165 |
88,556 |
|||||||||
Total current assets |
3,890,178 |
3,796,900 |
552,871 |
|||||||||
Non-current assets: |
||||||||||||
Amount due from related parties, net, non-current |
180,000 |
— |
— |
|||||||||
Long-term investments |
219,583 |
493,334 |
71,835 |
|||||||||
Property and equipment, net |
118,600 |
111,838 |
16,285 |
|||||||||
Intangible assets, net |
544,650 |
474,535 |
69,098 |
|||||||||
Other non-current assets |
95,744 |
87,638 |
12,761 |
|||||||||
Total non-current assets |
1,158,577 |
1,167,345 |
169,979 |
|||||||||
TOTAL ASSETS |
5,048,755 |
4,964,245 |
722,850 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
123,983 |
318,983 |
46,448 |
|||||||||
Accounts payable |
73,335 |
84,552 |
12,312 |
|||||||||
Contract liabilities |
195,369 |
89,584 |
13,044 |
|||||||||
Accrued expenses and other current liabilities |
449,489 |
390,046 |
56,795 |
|||||||||
Accrued payroll and welfare |
132,468 |
93,814 |
13,660 |
|||||||||
Amount due to related parties |
47,604 |
38,016 |
5,536 |
|||||||||
Total current liabilities |
1,022,248 |
1,014,995 |
147,795 |
|||||||||
Non-current liabilities: |
||||||||||||
Operating lease liabilities, non-current |
33,523 |
23,682 |
3,448 |
|||||||||
Deferred tax liabilities |
111,312 |
99,452 |
14,481 |
|||||||||
Total non-current liabilities |
144,835 |
123,134 |
17,929 |
|||||||||
TOTAL LIABILITIES |
1,167,083 |
1,138,129 |
165,724 |
|||||||||
TOTAL SHAREHOLDERS' EQUITY |
3,881,672 |
3,826,116 |
557,126 |
|||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' |
5,048,755 |
4,964,245 |
722,850 |
ATRENEW INC. 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 |
1,908,932 |
2,687,917 |
2,575,178 |
374,975 |
||||||||||||
Net service revenues |
297,572 |
293,256 |
296,616 |
43,191 |
||||||||||||
Operating (expenses) income (1)(2)(3) |
||||||||||||||||
Merchandise costs |
(1,640,022) |
(2,370,546) |
(2,252,121) |
(327,934) |
||||||||||||
Fulfillment expenses |
(296,220) |
(274,927) |
(266,386) |
(38,789) |
||||||||||||
Selling and marketing expenses |
(307,794) |
(594,027) |
(299,041) |
(43,544) |
||||||||||||
General and administrative expenses |
(44,958) |
(76,605) |
(76,440) |
(11,131) |
||||||||||||
Technology and content expenses |
(63,539) |
(54,456) |
(47,433) |
(6,907) |
||||||||||||
|
— |
(1,819,926) |
— |
— |
||||||||||||
Other operating income (loss), net |
11,241 |
(1,305) |
2,036 |
296 |
||||||||||||
Loss from operations |
(134,788) |
(2,210,619) |
(67,591) |
(9,843) |
||||||||||||
Interest expense |
(1,003) |
(1,078) |
(811) |
(118) |
||||||||||||
Interest income |
1,724 |
2,961 |
7,952 |
1,158 |
||||||||||||
Other loss, net |
(38,623) |
(13,678) |
(570) |
(83) |
||||||||||||
Loss before income taxes |
(172,690) |
(2,222,414) |
(61,020) |
(8,886) |
||||||||||||
Income tax benefits |
13,113 |
71,476 |
11,860 |
1,727 |
||||||||||||
Share of loss in equity method investments |
(1,775) |
(307) |
(839) |
(122) |
||||||||||||
Net loss |
(161,352) |
(2,151,245) |
(49,999) |
(7,281) |
||||||||||||
Net loss per ordinary share: |
||||||||||||||||
Basic |
(0.99) |
(13.23) |
(0.31) |
(0.04) |
||||||||||||
Diluted |
(0.99) |
(13.23) |
(0.31) |
(0.04) |
||||||||||||
Weighted average number of shares used in calculating |
||||||||||||||||
Basic |
162,576,959 |
162,569,309 |
163,827,229 |
163,827,229 |
||||||||||||
Diluted |
162,576,959 |
162,569,309 |
163,827,229 |
163,827,229 |
||||||||||||
Net loss |
(161,352) |
(2,151,245) |
(49,999) |
(7,281) |
||||||||||||
Foreign currency translation adjustments |
499 |
8,751 |
(10,530) |
(1,533) |
||||||||||||
Total comprehensive loss |
(160,853) |
(2,142,494) |
(60,529) |
(8,814) |
ATRENEW INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (CONTINUED) (Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||
Three months ended, |
||||||||||||||||
March |
December |
|
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(1) Includes share-based compensation expenses as |
||||||||||||||||
Fulfillment expenses |
(14,763) |
(15,665) |
(5,507) |
(802) |
||||||||||||
Selling and marketing expenses |
(15,406) |
(12,025) |
(3,804) |
(554) |
||||||||||||
General and administrative expenses |
(16,583) |
(21,940) |
(18,999) |
(2,766) |
||||||||||||
Technology and content expenses |
(4,559) |
(7,970) |
(4,686) |
(682) |
||||||||||||
(2) Includes amortization of intangible assets and |
||||||||||||||||
Selling and marketing expenses |
(85,755) |
(88,747) |
(78,495) |
(11,430) |
||||||||||||
Technology and content expenses |
(1,580) |
(1,580) |
(482) |
(70) |
||||||||||||
(3) Includes impairment loss of deferred cost, intangible |
||||||||||||||||
Selling and marketing expenses |
— |
(271,114) |
— |
— |
||||||||||||
Technology and content expenses |
— |
(6,217) |
— |
— |
||||||||||||
|
— |
(1,819,926) |
— |
— |
Reconciliations of GAAP and Non-GAAP Results (Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||
Three months ended, |
||||||||||||||||
|
December |
|
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Loss from operations |
(134,788) |
(2,210,619) |
(67,591) |
(9,843) |
||||||||||||
Add: |
||||||||||||||||
Share-based compensation expenses |
51,311 |
57,600 |
32,996 |
4,804 |
||||||||||||
Amortization of intangible assets and deferred cost resulting |
87,335 |
90,327 |
78,977 |
11,500 |
||||||||||||
Impairment loss of deferred cost, intangible assets and |
— |
2,097,257 |
— |
— |
||||||||||||
Adjusted income from operations (non-GAAP) |
3,858 |
34,565 |
44,382 |
6,461 |
||||||||||||
Net loss |
(161,352) |
(2,151,245) |
(49,999) |
(7,281) |
||||||||||||
Add: |
||||||||||||||||
Share-based compensation expenses |
51,311 |
57,600 |
32,996 |
4,804 |
||||||||||||
Amortization of intangible assets and deferred cost resulting |
87,335 |
90,327 |
78,977 |
11,500 |
||||||||||||
Impairment loss of deferred cost, intangible assets and |
— |
2,097,257 |
— |
— |
||||||||||||
Less: |
||||||||||||||||
Tax effects of impairment loss of deferred cost and intangible |
(13,113) |
(71,476) |
(11,860) |
(1,727) |
||||||||||||
Adjusted net (loss) income (non-GAAP) |
(35,819) |
22,463 |
50,114 |
7,296 |
||||||||||||
Adjusted net (loss) income per ordinary share (non- |
||||||||||||||||
Basic |
(0.22) |
0.14 |
0.31 |
0.04 |
||||||||||||
Diluted |
(0.22) |
0.13 |
0.30 |
0.04 |
||||||||||||
Weighted average number of shares used in calculating |
||||||||||||||||
Basic |
162,576,959 |
162,569,309 |
163,827,229 |
163,827,229 |
||||||||||||
Diluted |
162,576,959 |
169,321,970 |
169,151,003 |
169,151,003 |
View original content:https://www.prnewswire.com/news-releases/atrenew-inc-reports-unaudited-first-quarter-2023-financial-results-301831752.html
SOURCE