Third Quarter 2023 Highlights
- Total net revenues grew by 28.4% to
RMB3,256.8 million (US$446.4 million ) fromRMB2,536.0 million in the third quarter of 2022. - Loss from operations was
RMB28.1 million (US$3.8 million ), compared to a loss from operations ofRMB110.0 million in the third quarter of 2022. Adjusted income from operations (non-GAAP)[1] wasRMB73.8 million (US$10.1 million ), compared toRMB10.8 million in the third quarter of 2022. - Number of consumer products transacted[2] was 8.2 million, compared to 8.3 million in the third 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 |
Third Quarter 2023 Financial Results
REVENUE
Total net revenues increased by 28.4% to
- Net product revenues increased by 31.4% to
RMB2,924.0 million (US$400.8 million ) fromRMB2,225.7 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 increased by 7.3% to
RMB332.8 million (US$45.6 million ), compared toRMB310.3 million in the same period of 2022. This increase was primarily due to the recovery of Paipai and PJT marketplaces from the COVID-19 pandemic's negative impact during 2022.
OPERATING COSTS AND EXPENSES
Operating costs and expenses were
- Merchandise costs were
RMB2,611.0 million (US$357.9 million ), compared toRMB1,932.2 million in the same period of 2022, representing an increase of 35.1%. This was primarily due to the growth in product sales. - Fulfillment expenses were
RMB287.7 million (US$39.4 million ), compared toRMB277.1 million in the same period of 2022, representing an increase of 3.8%. The increase was primarily due to an increase in personnel costs as the Company conducted more recycling activities compared with the same period of 2022. - Selling and marketing expenses were
RMB299.5 million (US$41.0 million ), compared toRMB340.8 million in the same period of 2022, representing a decrease of 12.1%. The decrease was primarily due to (i) a decrease in amortization of intangible assets and deferred cost resulting from assets and business acquisitions, after recognizing the impairment loss of intangible assets and deferred cost in the fourth quarter of 2022, and (ii) a decrease in expenses related to marketing activities. - General and administrative expenses were
RMB69.8 million (US$9.6 million ), compared toRMB63.6 million in the same period of 2022, representing an increase of 9.7%, primarily due to an increase in share-based compensation expenses. - Technology and content expenses decreased by 21.4% to
RMB39.4 million (US$5.4 million ) fromRMB50.1 million in the same period of 2022. The decrease was primarily due to the changes in technological expenses 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, restricted cash, short-term investments and funds receivable from third party payment service providers were
Business Outlook
For the fourth 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: |
2731308 |
The replay will be accessible through
International: |
1-412-317-0088 |
|
United States Toll Free: |
1-877-344-7529 |
|
Access Code: |
3634904 |
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 (loss) from operations, adjusted net income and adjusted net 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 (loss) from operations and adjusted net 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 (loss) from operations and adjusted net 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 |
1,432,166 |
196,295 |
|||||||||
Restricted cash |
— |
212,000 |
29,057 |
|||||||||
Short-term investments |
782,230 |
348,061 |
47,706 |
|||||||||
Amount due from related parties, net |
115,501 |
233,820 |
32,048 |
|||||||||
Inventories |
433,467 |
672,394 |
92,159 |
|||||||||
Funds receivable from third party payment service |
316,277 |
321,499 |
44,065 |
|||||||||
Prepayments and other receivables, net |
539,077 |
601,794 |
82,483 |
|||||||||
Total current assets |
3,890,178 |
3,821,734 |
523,813 |
|||||||||
Non-current assets: |
||||||||||||
Amount due from related parties, net, non-current |
180,000 |
— |
— |
|||||||||
Long-term investments |
219,583 |
469,233 |
64,314 |
|||||||||
Property and equipment, net |
118,600 |
131,015 |
17,957 |
|||||||||
Intangible assets, net |
544,650 |
337,525 |
46,262 |
|||||||||
Other non-current assets |
95,744 |
77,215 |
10,583 |
|||||||||
Total non-current assets |
1,158,577 |
1,014,988 |
139,116 |
|||||||||
TOTAL ASSETS |
5,048,755 |
4,836,722 |
662,929 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
123,983 |
199,981 |
27,410 |
|||||||||
Accounts payable |
73,335 |
116,532 |
15,972 |
|||||||||
Contract liabilities |
195,369 |
158,086 |
21,667 |
|||||||||
Accrued expenses and other current liabilities |
449,489 |
343,795 |
47,121 |
|||||||||
Accrued payroll and welfare |
132,468 |
142,605 |
19,546 |
|||||||||
Amount due to related parties |
47,604 |
36,069 |
4,944 |
|||||||||
Total current liabilities |
1,022,248 |
997,068 |
136,660 |
|||||||||
Non-current liabilities: |
||||||||||||
Operating lease liabilities, non-current |
33,523 |
19,926 |
2,731 |
|||||||||
Deferred tax liabilities |
111,312 |
77,705 |
10,650 |
|||||||||
Total non-current liabilities |
144,835 |
97,631 |
13,381 |
|||||||||
TOTAL LIABILITIES |
1,167,083 |
1,094,699 |
150,041 |
|||||||||
TOTAL SHAREHOLDERS' EQUITY |
3,881,672 |
3,742,023 |
512,888 |
|||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' |
5,048,755 |
4,836,722 |
662,929 |
|
||||||||||||||||||||||||
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 |
|||||||||||||||||||||||
2022 |
2023 |
2022 |
2023 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
Net revenues |
||||||||||||||||||||||||
Net product revenues |
2,225,690 |
2,923,970 |
400,763 |
5,988,755 |
8,135,824 |
1,115,107 |
||||||||||||||||||
Net service revenues |
310,338 |
332,787 |
45,612 |
899,496 |
956,386 |
131,084 |
||||||||||||||||||
Operating (expenses) income (1)(2) |
||||||||||||||||||||||||
Merchandise costs |
(1,932,211) |
(2,611,018) |
(357,870) |
(5,226,067) |
(7,188,902) |
(985,321) |
||||||||||||||||||
Fulfillment expenses |
(277,147) |
(287,704) |
(39,433) |
(848,568) |
(822,913) |
(112,790) |
||||||||||||||||||
Selling and marketing expenses |
(340,826) |
(299,491) |
(41,049) |
(942,025) |
(933,835) |
(127,993) |
||||||||||||||||||
General and administrative expenses |
(63,631) |
(69,826) |
(9,570) |
(153,816) |
(203,794) |
(27,932) |
||||||||||||||||||
Technology and content expenses |
(50,091) |
(39,430) |
(5,404) |
(173,356) |
(131,905) |
(18,079) |
||||||||||||||||||
Other operating income, net |
17,855 |
22,640 |
3,103 |
42,543 |
32,512 |
4,456 |
||||||||||||||||||
Loss from operations |
(110,023) |
(28,072) |
(3,848) |
(413,038) |
(156,627) |
(21,468) |
||||||||||||||||||
Interest expense |
(1,566) |
(2,186) |
(300) |
(5,085) |
(5,498) |
(754) |
||||||||||||||||||
Interest income |
11,042 |
11,083 |
1,519 |
14,819 |
24,658 |
3,380 |
||||||||||||||||||
Other income (loss), net |
58,353 |
(4,428) |
(607) |
52,469 |
(6,719) |
(921) |
||||||||||||||||||
Loss before income taxes and share of |
(42,194) |
(23,603) |
(3,236) |
(350,835) |
(144,186) |
(19,763) |
||||||||||||||||||
Income tax benefits |
13,318 |
10,047 |
1,377 |
40,307 |
33,607 |
4,606 |
||||||||||||||||||
Share of loss in equity method investments |
(1,214) |
(30,632) |
(4,198) |
(6,164) |
(48,449) |
(6,640) |
||||||||||||||||||
Net loss |
(30,090) |
(44,188) |
(6,057) |
(316,692) |
(159,028) |
(21,797) |
||||||||||||||||||
Net loss per ordinary share: |
||||||||||||||||||||||||
Basic |
(0.19) |
(0.27) |
(0.04) |
(1.94) |
(0.99) |
(0.14) |
||||||||||||||||||
Diluted |
(0.19) |
(0.27) |
(0.04) |
(1.94) |
(0.99) |
(0.14) |
||||||||||||||||||
Weighted average number of shares used |
||||||||||||||||||||||||
Basic |
162,297,853 |
161,338,983 |
161,338,983 |
163,214,601 |
161,393,190 |
161,393,190 |
||||||||||||||||||
Diluted |
162,297,853 |
161,338,983 |
161,338,983 |
163,214,601 |
161,393,190 |
161,393,190 |
||||||||||||||||||
Net loss |
(30,090) |
(44,188) |
(6,057) |
(316,692) |
(159,028) |
(21,797) |
||||||||||||||||||
Foreign currency translation adjustments |
(28,397) |
(5,676) |
(778) |
(38,783) |
15,897 |
2,179 |
||||||||||||||||||
Total comprehensive loss |
(58,487) |
(49,864) |
(6,835) |
(355,475) |
(143,131) |
(19,618) |
|
||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND |
||||||||||||||||||||||||
COMPREHENSIVE LOSS (CONTINUED) |
||||||||||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
Three months ended |
Nine months ended |
|||||||||||||||||||||||
2022 |
2023 |
2022 |
2023 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
(1) Includes share-based compensation |
||||||||||||||||||||||||
Fulfillment expenses |
(6,142) |
(5,362) |
(735) |
(28,423) |
(17,910) |
(2,455) |
||||||||||||||||||
Selling and marketing expenses |
(3,969) |
(5,165) |
(708) |
(23,522) |
(13,266) |
(1,818) |
||||||||||||||||||
General and administrative expenses |
(17,346) |
(19,239) |
(2,637) |
(50,330) |
(56,182) |
(7,700) |
||||||||||||||||||
Technology and content expenses |
(4,632) |
(5,218) |
(715) |
(14,361) |
(15,649) |
(2,145) |
||||||||||||||||||
(2) Includes amortization of intangible assets |
||||||||||||||||||||||||
Selling and marketing expenses |
(87,120) |
(66,412) |
(9,103) |
(264,001) |
(222,337) |
(30,474) |
||||||||||||||||||
Technology and content expenses |
(1,580) |
(482) |
(66) |
(4,740) |
(1,446) |
(198) |
Reconciliations of GAAP and Non-GAAP Results |
|||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
|||||||||||
Three months ended |
Nine months ended |
||||||||||
2022 |
2023 |
2022 |
2023 |
||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||
Loss from operations |
(110,023) |
(28,072) |
(3,848) |
(413,038) |
(156,627) |
(21,468) |
|||||
Add: |
|||||||||||
Share-based compensation |
32,089 |
34,984 |
4,795 |
116,636 |
103,007 |
14,118 |
|||||
Amortization of intangible |
88,700 |
66,894 |
9,169 |
268,741 |
223,783 |
30,672 |
|||||
Adjusted income (loss) from operations (non-GAAP) |
10,766 |
73,806 |
10,116 |
(27,661) |
170,163 |
23,322 |
|||||
Net loss |
(30,090) |
(44,188) |
(6,057) |
(316,692) |
(159,028) |
(21,797) |
|||||
Add: |
|||||||||||
Share-based compensation |
32,089 |
34,984 |
4,795 |
116,636 |
103,007 |
14,118 |
|||||
Amortization of intangible |
88,700 |
66,894 |
9,169 |
268,741 |
223,783 |
30,672 |
|||||
Less: |
|||||||||||
Tax effects of amortization of |
(13,318) |
(10,047) |
(1,377) |
(40,307) |
(33,607) |
(4,606) |
|||||
Adjusted net income (non- |
77,381 |
47,643 |
6,530 |
28,378 |
134,155 |
18,387 |
|||||
Adjusted net income per |
|||||||||||
ordinary share (non-GAAP): |
|||||||||||
Basic |
0.48 |
0.30 |
0.04 |
0.17 |
0.83 |
0.11 |
|||||
Diluted |
0.46 |
0.29 |
0.04 |
0.17 |
0.80 |
0.11 |
|||||
Weighted average number of |
|||||||||||
Basic |
162,297,853 |
161,338,983 |
161,338,983 |
163,214,601 |
161,393,190 |
161,393,190 |
|||||
Diluted |
169,499,714 |
166,112,358 |
166,112,358 |
170,702,595 |
167,609,332 |
167,609,332 |
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