Third Quarter 2022 Highlights
- Total net revenues grew by 29.2% to
RMB2,536.0 million (US$356.5 million ) fromRMB1,962.3 million in the third quarter of 2021. - Loss from operations was
RMB110.0 million (US$15.5 million ), compared toRMB150.5 million in the third quarter of 2021. Adjusted income from operations (non-GAAP)[1] wasRMB10.8 million (US$1.5 million ) compared to adjusted loss from operations ofRMB28.5 million in the third quarter of 2021. - Total Gross Merchandise Volume ("GMV[2]") increased by 14.5% to
RMB9.5 billion fromRMB8.3 billion in the third quarter of 2021. GMV for product sales increased by 31.6% toRMB2.5 billion fromRMB1.9 billion in the third quarter of 2021. GMV for online marketplaces increased by 9.4% toRMB7.0 billion fromRMB6.4 billion in the third quarter of 2021. - Number of consumer products transacted[3] increased by 5.1% to 8.3 million from 7.9 million in the third quarter of 2021.
Mr.
Mr.
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 PJT Marketplace, Paipai Marketplace and other channels the Company operates in a given period, prior to returns and cancellations, excluding the number of consumer products collected through AHS Recycle; a single consumer product may be counted more than once according to the number of times it is transacted on PJT Marketplace, Paipai Marketplace and other channels the Company operates through the distribution process to end consumer. |
Third Quarter 2022 Financial Results
REVENUE
Total net revenues increased by 29.2% to
- Net product revenues increased by 33.7% to
RMB2,225.7 million (US$312.9 million ) fromRMB1,665.0 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 ,PJT Marketplace and the Company's offline channels. - Net service revenues increased by 4.4% to
RMB310.3 million (US$43.6 million ) fromRMB297.3 million in the same period of 2021. The increase was primarily due to increases in transaction volume and monetization capability ofPJT Marketplace .
OPERATING COSTS AND EXPENSES
Operating costs and expenses increased by 25.4% to
- Merchandise costs increased by 33.8% to
RMB1,932.2 million (US$271.6 million ) fromRMB1,443.9 million in the same period of 2021. The increase was primarily due to the growth in product sales. - Fulfillment expenses increased by 1.4% to
RMB277.1 million (US$39.0 million ) fromRMB273.4 million in the same period of 2021. The increase was primarily due to (i) an increase in personnel cost in connection with the Company's growing business; and (ii) an increase in expenses in relation to the upgrade of technology server, which were partially offset by a decrease in operation center related expenses as the Company optimized its strategy for its city-level operation stations. - Selling and marketing expenses increased by 14.0% to
RMB340.8 million (US$47.9 million ) fromRMB299.0 million in the same period of 2021. The increase was primarily due to (i) an increase in personnel cost in connection with the Company's growing business; and (ii) an increase in marketing expenses related to business development. - General and administrative expenses increased by 51.4% to
RMB63.6 million (US$8.9 million ) fromRMB42.0 million in the same period of 2021. The increase was primarily due to (i) an increase in personnel cost in connection with the Company's growing business, (ii) an increase in office related expenses, and (iii) an increase in professional service fees. - Technology and content expenses decreased by 23.2% to
RMB50.1 million (US$7.0 million ) fromRMB65.2 million in the same period of 2021. The decrease was primarily due to the changes in personnel cost in relation to the Company's adjustment to its spending in research and development.
LOSS FROM OPERATIONS
Loss from operations was
Adjusted income from operations (non-GAAP)[1], excluding amortization of intangible assets and deferred cost resulting from assets and business acquisitions and recognition of share-based compensation expense resulting from options and restricted stock units granted to employees, was
NET LOSS
Net loss was
The management of the Company noted that the Company`s market capitalization has been lower than its net assets and is closely monitoring the possibility of the impairment of goodwill and intangible assets.
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, restricted cash, short-term investments and funds receivable from third party payment service providers increased to
Business Outlook
For the fourth quarter of 2022, the Company currently expects its total revenues to be between
Environment, Social, and Governance
During the third quarter of 2022,
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: |
7165816 |
The replay will be accessible through
International: |
1-412-317-0088 |
|
United States Toll Free: |
1-877-344-7529 |
|
Access Code: |
1277252 |
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) 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 (loss) 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 (loss) 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 |
|||||||||||
2021 |
2022 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
1,356,342 |
1,270,326 |
178,580 |
|||||||||
Restricted cash |
150,000 |
— |
— |
|||||||||
Short-term investments |
510,467 |
1,013,094 |
142,419 |
|||||||||
Amount due from related parties, net |
410,088 |
125,673 |
17,667 |
|||||||||
Inventories |
478,751 |
454,078 |
63,833 |
|||||||||
Funds receivable from third party payment service providers |
405,095 |
389,242 |
54,719 |
|||||||||
Prepayments and other receivables, net |
840,102 |
690,421 |
97,058 |
|||||||||
Total current assets |
4,150,845 |
3,942,834 |
554,276 |
|||||||||
Non-current assets: |
||||||||||||
Long-term investments |
241,527 |
229,670 |
32,286 |
|||||||||
Property and equipment, net |
103,843 |
118,340 |
16,636 |
|||||||||
Intangible assets, net |
1,075,811 |
832,634 |
117,050 |
|||||||||
|
1,803,415 |
1,819,926 |
255,841 |
|||||||||
Other non-current assets |
127,321 |
103,352 |
14,529 |
|||||||||
Total non-current assets |
3,351,917 |
3,103,922 |
436,342 |
|||||||||
TOTAL ASSETS |
7,502,762 |
7,046,756 |
990,618 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
94,999 |
75,744 |
10,648 |
|||||||||
Accounts payable |
41,311 |
56,771 |
7,981 |
|||||||||
Contract liabilities |
211,964 |
148,953 |
20,939 |
|||||||||
Accrued expenses and other current liabilities |
296,627 |
407,150 |
57,236 |
|||||||||
Accrued payroll and welfare |
105,787 |
127,402 |
17,910 |
|||||||||
Amount due to related parties |
73,976 |
36,567 |
5,141 |
|||||||||
Total current liabilities |
824,664 |
852,587 |
119,855 |
|||||||||
Non-current liabilities: |
||||||||||||
Operating lease liabilities, non-current |
34,501 |
38,769 |
5,450 |
|||||||||
Deferred tax liabilities |
223,138 |
182,788 |
25,696 |
|||||||||
Total non-current liabilities |
257,639 |
221,557 |
31,146 |
|||||||||
TOTAL LIABILITIES |
1,082,303 |
1,074,144 |
151,001 |
|||||||||
TOTAL SHAREHOLDERS' EQUITY |
6,420,459 |
5,972,612 |
839,617 |
|||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
7,502,762 |
7,046,756 |
990,618 |
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 |
Nine months ended |
|||||||||||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
Net revenues |
||||||||||||||||||||||||
Net product revenues |
1,664,972 |
2,225,690 |
312,883 |
4,578,938 |
5,988,755 |
841,886 |
||||||||||||||||||
Net service revenues |
297,328 |
310,338 |
43,627 |
765,509 |
899,496 |
126,449 |
||||||||||||||||||
Operating expenses (1)(2) |
||||||||||||||||||||||||
Merchandise costs |
(1,443,851) |
(1,932,211) |
(271,626) |
(3,934,905) |
(5,226,067) |
(734,669) |
||||||||||||||||||
Fulfillment expenses |
(273,394) |
(277,147) |
(38,961) |
(771,938) |
(848,568) |
(119,290) |
||||||||||||||||||
Selling and marketing expenses |
(299,007) |
(340,826) |
(47,913) |
(837,882) |
(942,025) |
(132,428) |
||||||||||||||||||
General and administrative expenses |
(42,043) |
(63,631) |
(8,945) |
(381,731) |
(153,816) |
(21,623) |
||||||||||||||||||
Technology and content expenses |
(65,196) |
(50,091) |
(7,042) |
(202,598) |
(173,356) |
(24,370) |
||||||||||||||||||
Total operating expenses |
(2,123,491) |
(2,663,906) |
(374,487) |
(6,129,054) |
(7,343,832) |
(1,032,380) |
||||||||||||||||||
Other operating income, net |
10,697 |
17,855 |
2,510 |
15,427 |
42,543 |
5,981 |
||||||||||||||||||
Loss from operations |
(150,494) |
(110,023) |
(15,467) |
(769,180) |
(413,038) |
(58,064) |
||||||||||||||||||
Interest expense |
(2,928) |
(1,566) |
(220) |
(14,993) |
(5,085) |
(715) |
||||||||||||||||||
Interest income |
1,851 |
11,042 |
1,552 |
6,284 |
14,819 |
2,083 |
||||||||||||||||||
Other income, net |
6,882 |
58,353 |
8,203 |
2,934 |
52,469 |
7,376 |
||||||||||||||||||
Loss before income taxes |
(144,689) |
(42,194) |
(5,932) |
(774,955) |
(350,835) |
(49,320) |
||||||||||||||||||
Income tax benefits |
22,841 |
13,318 |
1,872 |
61,760 |
40,307 |
5,666 |
||||||||||||||||||
Share of gain (loss) in equity method |
161 |
(1,214) |
(171) |
284 |
(6,164) |
(867) |
||||||||||||||||||
Net loss |
(121,687) |
(30,090) |
(4,231) |
(712,911) |
(316,692) |
(44,521) |
||||||||||||||||||
Accretion of convertible redeemable |
— |
— |
— |
(508,627) |
— |
— |
||||||||||||||||||
Net loss attributable to ordinary |
(121,687) |
(30,090) |
(4,231) |
(1,221,538) |
(316,692) |
(44,521) |
||||||||||||||||||
Net loss per ordinary share: |
||||||||||||||||||||||||
Basic |
(0.75) |
(0.19) |
(0.03) |
(16.61) |
(1.94) |
(0.27) |
||||||||||||||||||
Diluted |
(0.75) |
(0.19) |
(0.03) |
(16.61) |
(1.94) |
(0.27) |
||||||||||||||||||
Weighted average number of shares used |
||||||||||||||||||||||||
Basic |
162,659,593 |
162,297,853 |
162,297,853 |
73,551,073 |
163,214,601 |
163,214,601 |
||||||||||||||||||
Diluted |
162,659,593 |
162,297,853 |
162,297,853 |
73,551,073 |
163,214,601 |
163,214,601 |
||||||||||||||||||
Net loss |
(121,687) |
(30,090) |
(4,231) |
(712,911) |
(316,692) |
(44,521) |
||||||||||||||||||
Foreign currency translation adjustments |
(1,303) |
(28,397) |
(3,992) |
849 |
(38,783) |
(5,452) |
||||||||||||||||||
Total comprehensive loss |
(122,990) |
(58,487) |
(8,223) |
(712,062) |
(355,475) |
(49,973) |
||||||||||||||||||
Accretion of convertible redeemable |
— |
— |
— |
(508,627) |
— |
— |
||||||||||||||||||
Total comprehensive loss attributable to |
(122,990) |
(58,487) |
(8,223) |
(1,220,689) |
(355,475) |
(49,973) |
ATRENEW INC. |
||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND |
||||||||||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
Three months ended |
Nine months ended |
|||||||||||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
(1) Includes share-based compensation |
||||||||||||||||||||||||
Fulfillment expenses |
(6,801) |
(6,142) |
(864) |
(49,292) |
(28,423) |
(3,996) |
||||||||||||||||||
Selling and marketing expenses |
(3,599) |
(3,969) |
(558) |
(29,863) |
(23,522) |
(3,307) |
||||||||||||||||||
General and administrative expenses |
(15,864) |
(17,346) |
(2,438) |
(297,934) |
(50,330) |
(7,073) |
||||||||||||||||||
Technology and content expenses |
(4,359) |
(4,632) |
(651) |
(31,939) |
(14,361) |
(2,019) |
||||||||||||||||||
(2) Includes amortization of intangible assets |
||||||||||||||||||||||||
Selling and marketing expenses |
(89,783) |
(87,120) |
(12,247) |
(242,300) |
(264,001) |
(37,113) |
||||||||||||||||||
Technology and content expenses |
(1,580) |
(1,580) |
(222) |
(4,740) |
(4,740) |
(666) |
Reconciliations of GAAP and Non-GAAP Results |
||||||||||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
Three months ended |
Nine months ended |
|||||||||||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
Loss from operations |
(150,494) |
(110,023) |
(15,467) |
(769,180) |
(413,038) |
(58,064) |
||||||||||||||||||
Add: |
||||||||||||||||||||||||
Share-based compensation expenses |
30,623 |
32,089 |
4,511 |
409,028 |
116,636 |
16,395 |
||||||||||||||||||
Amortization of intangible assets |
91,363 |
88,700 |
12,469 |
247,040 |
268,741 |
37,779 |
||||||||||||||||||
Adjusted (loss) income from |
(28,508) |
10,766 |
1,513 |
(113,112) |
(27,661) |
(3,890) |
||||||||||||||||||
Net loss |
(121,687) |
(30,090) |
(4,231) |
(712,911) |
(316,692) |
(44,521) |
||||||||||||||||||
Add: |
||||||||||||||||||||||||
Share-based compensation expenses |
30,623 |
32,089 |
4,511 |
409,028 |
116,636 |
16,395 |
||||||||||||||||||
Amortization of intangible assets |
91,363 |
88,700 |
12,469 |
247,040 |
268,741 |
37,779 |
||||||||||||||||||
Less: |
||||||||||||||||||||||||
Tax effects of amortization of |
(22,841) |
(13,318) |
(1,872) |
(61,760) |
(40,307) |
(5,666) |
||||||||||||||||||
Adjusted net (loss) income (non- |
(22,542) |
77,381 |
10,877 |
(118,603) |
28,378 |
3,987 |
||||||||||||||||||
Adjusted net (loss) income per |
||||||||||||||||||||||||
Basic |
(0.14) |
0.48 |
0.07 |
(1.61) |
0.17 |
0.02 |
||||||||||||||||||
Diluted |
(0.14) |
0.46 |
0.06 |
(1.61) |
0.17 |
0.02 |
||||||||||||||||||
Weighted average number of |
||||||||||||||||||||||||
Basic |
162,659,593 |
162,297,853 |
162,297,853 |
73,551,073 |
163,214,601 |
163,214,601 |
||||||||||||||||||
Diluted |
162,659,593 |
169,499,714 |
169,499,714 |
73,551,073 |
170,702,595 |
170,702,595 |
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