ATRenew (RERE) investor relations material

Conference overview

• The event was the 94th Emerging Growth Conference, featuring presentations from technology-driven recycling and trade-in companies.

• ATRenew, a major Chinese platform for secondhand consumer electronics, presented its business model, growth, and strategy.

• The company leverages a network of over 2,000 physical stores and partnerships with major brands to facilitate device trade-ins and recycling.

• Proprietary automation technologies and a scalable platform ecosystem drive efficiency and pricing transparency.

• International expansion is underway, connecting supply from Japan, the US, and China to global markets.

Business model and operations

• Operates C2B, B2B, and B2C models, collecting devices directly from consumers and selling to both individuals and dealers.

• Runs 1P (inventory-based) and 3P (commission-based) models, with 1P focusing on acquiring and reselling devices, and 3P on luxury goods and gold without inventory risk.

• Automation centers in Dongguan and Changzhou standardize inspection and grading, improving quality and efficiency.

• Collaborates with e-commerce and brand owners like JD.com, Apple, and Huawei for trade-in programs.

• Expanding into new categories such as luxury goods, watches, and sports equipment, leveraging store network and fulfillment capabilities.

Financial performance and growth

• Q1 2026 financial results showed 32% year-over-year top-line growth, outpacing the broader consumer industry.

• Service revenue and net product revenue both grew at double-digit rates, with margin expansion of 60-70 basis points.

• Retail (1P2C) gross profit margin is about 6% higher than wholesale, with retail's share of revenue rising from 25-27% to 45% in recent quarters.

• Shareholder return plan for 2025-2027 targets a 60% payout ratio, including share buybacks and cash dividends.

• $36 million was returned to shareholders last year through repurchases and dividends.