ATRenew (RERE) Sidoti Small-Cap Virtual Investor Conference summary

Business overview and evolution

• Operates the largest secondhand consumer electronics platform in China, supporting circulation of 42 million products in 2025 and expanding into new categories like luxury goods and gold recycling.

• Developed a nationwide network of over 2,100 physical stores across 300 cities, enabling face-to-face services and strategic partnerships with major distributors like JD.com.

• Launched PJT Marketplace in 2017, now the largest B2B electronics marketplace in China with 2 million users, and adopted automation technologies to scale operations.

• Acquired Paipai Marketplace from JD.com in 2019, becoming the exclusive secondhand electronics partner on JD.com and setting prices through this channel.

• Expanded internationally with a Hong Kong headquarters, focusing on global smartphone circulation, especially iPhones, and leveraging automation for efficiency.

Operational capabilities and business model

• Provides consumer-facing recycling through physical stores and door-to-door services, supported by proprietary data wiping technology certified by ADISA.

• PJT Marketplace sets industry inspection standards and offers warranties, while Paipai Marketplace provides one-year quality assurance for B2C sales.

• Operates both 1P (inventory-taking) and 3P (marketplace) business models, generating product and service revenue, with eight regional operation centers handling up to 200,000 devices daily.

• Uses automation and unmanned systems in operation centers, reducing fulfillment expenses as a percentage of revenue over five years.

• Multi-category recycling services, including luxury and gold, have grown 70%-80% in recycling volume, leveraging store assets for new categories.

Financial performance and strategic direction

• Achieved CNY 21 billion in net revenue in the last year, growing 29% year-over-year, outperforming peers in the sector.

• Non-GAAP operating profit margin remained flat due to investments in store expansion and marketing, but solid growth in both top line and margin is expected this year.

• Plans to return at least 60% of Non-GAAP net income to shareholders from 2025-2027 via share repurchases or dividends; $36 million returned last year.

• Focuses on improving cost ratios and leveraging scale as transaction volume and ASP rise, with ongoing investments in automation and AI.