- Total net revenues grew by 14.9% to
RMB2,145.7 million (US$320.3 million ) fromRMB1,867.7 million in the second quarter of 2021. - Loss from operations was
RMB168.2 million (US$25.1 million ), compared toRMB507.3 million in the second quarter of 2021. Adjusted loss from operations (non-GAAP)[1] wasRMB42.3 million (US$6.3 million ) compared to an adjusted loss from operations ofRMB51.0 million in the second quarter of 2021. - Total Gross Merchandise Volume ("GMV[2]") increased by 10.3% to
RMB8.6 billion fromRMB7.8 billion in the second quarter of 2021. GMV for product sales increased by 15.8% toRMB2.2 billion fromRMB1.9 billion in the second quarter of 2021. GMV for online marketplaces increased by 8.5% toRMB6.4 billion fromRMB5.9 billion in the second quarter of 2021. - Number of consumer products transacted[3] remained flat at 7.8 million compared to the second 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.
Second Quarter 2022 Financial Results
REVENUE
Total net revenues increased by 14.9% to
- Net product revenues increased by 15.6% to
RMB1,854.1 million (US$276.8 million ) fromRMB1,603.4 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 throughPaipai Marketplace and the Company's overseas channels. - Net service revenues increased by 10.3% to
RMB291.6 million (US$43.5 million ) fromRMB264.3 million in the same period of 2021. The increase was primarily due to the increases in transaction volume and monetization capability ofPJT Marketplace .
OPERATING COSTS AND EXPENSES
Operating costs and expenses decreased by 2.2% to
- Merchandise costs increased by 18.5% to
RMB1,653.8 million (US$246.9 million ) fromRMB1,395.4 million in the same period of 2021. The increase was primarily due to the growth in product sales. - Fulfillment expenses decreased by 0.1% to
RMB275.2 million (US$41.1 million ) fromRMB275.5 million in the same period of 2021. The decrease was primarily due to the decrease of share-based compensation expenses as the Company recognized more expenses with IPO condition in the same period of last year which was offset by the increases in operation center related expenses and personnel cost which were in line with the Company's business growth. - Selling and marketing expenses decreased by 7.2% to
RMB293.4 million (US$43.8 million ) fromRMB316.3 million in the same period of 2021. The decrease was primarily due to (i) a decrease in sales promotion and coupon expenses as a cost control measure during the resurgence of the COVID-19 variants; and (ii) the decrease of share-based compensation expenses as the Company recognized more expenses with IPO condition in the same period of last year. - General and administrative expenses decreased by 85.4% to
RMB45.2 million (US$6.8 million ) fromRMB310.3 million in the same period of 2021. The decrease was primarily due to the decrease of share-based compensation expenses as the Company recognized more expenses resulting from share-based awards granted with an IPO condition in the second quarter of 2021. - Technology and content expenses decreased by 27.1% to
RMB59.7 million (US$8.9 million ) fromRMB81.9 million in the same period of 2021. The decrease was primarily due to the decrease in the recognition of share-based compensation expenses resulting from options granted to employees with an IPO condition compared to the second quarter of 2021.
LOSS FROM OPERATIONS
Loss from operations decreased by 66.8% to
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)[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 increased to
Business Outlook
For the third quarter of 2022, the Company currently expects its total revenues to be between
Environment, Social, and Governance
On
In order to help quantify its commitment to ESG, the Company has leveraged the Circular Footprint Formula for the first time to disclose its contribution of 464,000 metric tons of green-house gas emission reductions through reusing pre-owned mobile phones in 2021.
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: |
7639205 |
The replay will be accessible through
International: |
1-412-317-0088 |
|
United States Toll Free: |
1-877-344-7529 |
|
Access Code: |
6668246 |
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
ATRENEW INC. |
||||||||||||
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 |
1,215,953 |
181,537 |
|||||||||
Restricted cash |
150,000 |
— |
— |
|||||||||
Short-term investments |
510,467 |
1,030,682 |
153,877 |
|||||||||
Amount due from related parties, net |
410,088 |
139,043 |
20,759 |
|||||||||
Inventories |
478,751 |
673,444 |
100,543 |
|||||||||
Funds receivable from third party payment service providers |
405,095 |
347,468 |
51,876 |
|||||||||
Prepayments and other receivables, net |
840,102 |
697,237 |
104,095 |
|||||||||
Total current assets |
4,150,845 |
4,103,827 |
612,687 |
|||||||||
Non-current assets: |
||||||||||||
Long-term investments |
241,527 |
234,457 |
35,004 |
|||||||||
Property and equipment, net |
103,843 |
115,467 |
17,239 |
|||||||||
Intangible assets, net |
1,075,811 |
913,693 |
136,411 |
|||||||||
|
1,803,415 |
1,819,926 |
271,708 |
|||||||||
Other non-current assets |
127,321 |
91,234 |
13,619 |
|||||||||
Total non-current assets |
3,351,917 |
3,174,777 |
473,981 |
|||||||||
TOTAL ASSETS |
7,502,762 |
7,278,604 |
1,086,668 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
94,999 |
146,370 |
21,852 |
|||||||||
Accounts payable |
41,311 |
66,894 |
9,987 |
|||||||||
Contract liabilities |
211,964 |
304,867 |
45,516 |
|||||||||
Accrued expenses and other current liabilities |
296,627 |
387,508 |
57,853 |
|||||||||
Accrued payroll and welfare |
105,787 |
79,654 |
11,892 |
|||||||||
Amount due to related parties |
73,976 |
53,440 |
7,978 |
|||||||||
Total current liabilities |
824,664 |
1,038,733 |
155,078 |
|||||||||
Non-current liabilities: |
||||||||||||
Operating lease liabilities, non-current |
34,501 |
37,109 |
5,540 |
|||||||||
Deferred tax liabilities |
223,138 |
196,106 |
29,278 |
|||||||||
Total non-current liabilities |
257,639 |
233,215 |
34,818 |
|||||||||
TOTAL LIABILITIES |
1,082,303 |
1,271,948 |
189,896 |
|||||||||
TOTAL SHAREHOLDERS' EQUITY |
6,420,459 |
6,006,656 |
896,772 |
|||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
7,502,762 |
7,278,604 |
1,086,668 |
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 |
Six months ended |
|||||||||||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
Net revenues |
||||||||||||||||||||||||
Net product revenues |
1,603,419 |
1,854,133 |
276,815 |
2,913,966 |
3,763,065 |
561,811 |
||||||||||||||||||
Net service revenues |
264,297 |
291,586 |
43,533 |
468,181 |
589,158 |
87,959 |
||||||||||||||||||
Operating expenses (1)(2) |
||||||||||||||||||||||||
Merchandise costs |
(1,395,358) |
(1,653,834) |
(246,911) |
(2,491,054) |
(3,293,856) |
(491,760) |
||||||||||||||||||
Fulfillment expenses |
(275,525) |
(275,201) |
(41,086) |
(498,544) |
(571,421) |
(85,311) |
||||||||||||||||||
Selling and marketing expenses |
(316,295) |
(293,405) |
(43,804) |
(538,875) |
(601,199) |
(89,757) |
||||||||||||||||||
General and administrative expenses |
(310,280) |
(45,227) |
(6,752) |
(339,688) |
(90,185) |
(13,464) |
||||||||||||||||||
Technology and content expenses |
(81,903) |
(59,726) |
(8,917) |
(137,402) |
(123,265) |
(18,403) |
||||||||||||||||||
Total operating expenses |
(2,379,361) |
(2,327,393) |
(347,470) |
(4,005,563) |
(4,679,926) |
(698,695) |
||||||||||||||||||
Other operating income, net |
4,369 |
13,447 |
2,008 |
4,730 |
24,688 |
3,686 |
||||||||||||||||||
Loss from operations |
(507,276) |
(168,227) |
(25,114) |
(618,686) |
(303,015) |
(45,239) |
||||||||||||||||||
Interest expense |
(5,513) |
(2,516) |
(376) |
(12,065) |
(3,519) |
(525) |
||||||||||||||||||
Interest income |
1,013 |
2,053 |
307 |
4,433 |
3,777 |
564 |
||||||||||||||||||
Fair value change in warrant liabilities |
(9,242) |
— |
— |
(9,242) |
— |
— |
||||||||||||||||||
Other (loss) income, net |
(4,862) |
32,739 |
4,888 |
(3,948) |
(5,884) |
(878) |
||||||||||||||||||
Loss before income taxes |
(525,880) |
(135,951) |
(20,295) |
(639,508) |
(308,641) |
(46,078) |
||||||||||||||||||
Income tax benefits |
19,460 |
13,876 |
2,072 |
38,919 |
26,989 |
4,029 |
||||||||||||||||||
Share of gain (loss) in equity method investments |
735 |
(3,175) |
(474) |
123 |
(4,950) |
(739) |
||||||||||||||||||
Net loss |
(505,685) |
(125,250) |
(18,697) |
(600,466) |
(286,602) |
(42,788) |
||||||||||||||||||
Accretion of convertible redeemable preferred shares |
— |
— |
— |
(508,627) |
— |
— |
||||||||||||||||||
Net loss attributable to ordinary |
(505,685) |
(125,250) |
(18,697) |
(1,109,093) |
(286,602) |
(42,788) |
||||||||||||||||||
Net loss per ordinary share: |
||||||||||||||||||||||||
Basic |
(13.47) |
(0.78) |
(0.12) |
(39.30) |
(1.78) |
(0.27) |
||||||||||||||||||
Diluted |
(13.47) |
(0.78) |
(0.12) |
(39.30) |
(1.78) |
(0.27) |
||||||||||||||||||
Weighted average number of shares |
||||||||||||||||||||||||
Basic |
37,552,443 |
161,498,812 |
161,498,812 |
28,219,382 |
161,374,917 |
161,374,917 |
||||||||||||||||||
Diluted |
37,552,443 |
161,498,812 |
161,498,812 |
28,219,382 |
161,374,917 |
161,374,917 |
||||||||||||||||||
Net loss |
(505,685) |
(125,250) |
(18,697) |
(600,466) |
(286,602) |
(42,788) |
||||||||||||||||||
Foreign currency translation adjustments |
2,427 |
(10,885) |
(1,625) |
2,152 |
(10,386) |
(1,551) |
||||||||||||||||||
Total comprehensive loss |
(503,258) |
(136,135) |
(20,322) |
(598,314) |
(296,988) |
(44,339) |
||||||||||||||||||
Accretion of convertible redeemable preferred shares |
— |
— |
— |
(508,627) |
— |
— |
||||||||||||||||||
Total comprehensive loss attributable to |
(503,258) |
(136,135) |
(20,322) |
(1,106,941) |
(296,988) |
(44,339) |
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 |
Six months ended |
|||||||||||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
(1) Includes share-based compensation expenses as follows: |
||||||||||||||||||||||||
Fulfillment expenses |
(42,491) |
(7,518) |
(1,122) |
(42,491) |
(22,281) |
(3,326) |
||||||||||||||||||
Selling and marketing expenses |
(26,264) |
(4,147) |
(619) |
(26,264) |
(19,553) |
(2,919) |
||||||||||||||||||
General and administrative expenses |
(282,070) |
(16,401) |
(2,449) |
(282,070) |
(32,984) |
(4,924) |
||||||||||||||||||
Technology and content expenses |
(27,580) |
(5,170) |
(772) |
(27,580) |
(9,729) |
(1,453) |
||||||||||||||||||
(2) Includes amortization of intangible assets and deferred cost resulting |
||||||||||||||||||||||||
Selling and marketing expenses |
(76,258) |
(91,126) |
(13,605) |
(152,517) |
(176,881) |
(26,407) |
||||||||||||||||||
Technology and content expenses |
(1,580) |
(1,580) |
(236) |
(3,160) |
(3,160) |
(472) |
Reconciliations of GAAP and Non-GAAP Results |
||||||||||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
Three months ended |
Six months ended |
|||||||||||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
Loss from operations |
(507,276) |
(168,227) |
(25,114) |
(618,686) |
(303,015) |
(45,239) |
||||||||||||||||||
Add: |
||||||||||||||||||||||||
Share-based compensation expenses |
378,405 |
33,236 |
4,962 |
378,405 |
84,547 |
12,622 |
||||||||||||||||||
Amortization of intangible assets and deferred cost resulting from |
77,838 |
92,706 |
13,841 |
155,677 |
180,041 |
26,879 |
||||||||||||||||||
Adjusted loss from operations (non-GAAP) |
(51,033) |
(42,285) |
(6,311) |
(84,604) |
(38,427) |
(5,738) |
||||||||||||||||||
Net loss |
(505,685) |
(125,250) |
(18,697) |
(600,466) |
(286,602) |
(42,788) |
||||||||||||||||||
Add: |
||||||||||||||||||||||||
Share-based compensation expenses |
378,405 |
33,236 |
4,962 |
378,405 |
84,547 |
12,622 |
||||||||||||||||||
Amortization of intangible assets and deferred cost resulting from |
77,838 |
92,706 |
13,841 |
155,677 |
180,041 |
26,879 |
||||||||||||||||||
Fair value change in warrant liabilities |
9,242 |
— |
— |
9,242 |
— |
— |
||||||||||||||||||
Less: |
||||||||||||||||||||||||
Tax effects of amortization of intangible assets and deferred cost |
(19,460) |
(13,876) |
(2,072) |
(38,919) |
(26,989) |
(4,029) |
||||||||||||||||||
Adjusted net loss (non-GAAP) |
(59,660) |
(13,184) |
(1,966) |
(96,061) |
(49,003) |
(7,316) |
||||||||||||||||||
Adjusted net loss per ordinary share (non-GAAP): |
||||||||||||||||||||||||
Basic |
(1.59) |
(0.08) |
(0.01) |
(3.40) |
(0.30) |
(0.05) |
||||||||||||||||||
Diluted |
(1.59) |
(0.08) |
(0.01) |
(3.40) |
(0.30) |
(0.05) |
||||||||||||||||||
Weighted average number of shares used in calculating net loss per ordinary share |
||||||||||||||||||||||||
Basic |
37,552,443 |
161,498,812 |
161,498,812 |
28,219,382 |
161,374,917 |
161,374,917 |
||||||||||||||||||
Diluted |
37,552,443 |
161,498,812 |
161,498,812 |
28,219,382 |
161,374,917 |
161,374,917 |
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