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Yahoo
6 days ago
- Business
- Yahoo
Spotlight On Promising Penny Stocks In July 2025
As the U.S. stock market continues to reach new highs, with the S&P 500 and Nasdaq setting records, investors are keenly observing opportunities beyond the major indices. For those willing to explore outside of well-known names, penny stocks—often representing smaller or newer companies—remain a relevant investment area despite their somewhat outdated label. This article will spotlight three penny stocks that exhibit financial strength and potential for growth, offering intriguing possibilities for investors seeking hidden value in quality companies. Top 10 Penny Stocks In The United States Name Share Price Market Cap Financial Health Rating ATRenew (RERE) $3.37 $810.62M ★★★★★★ Waterdrop (WDH) $1.98 $658.23M ★★★★★★ CuriosityStream (CURI) $4.55 $268.34M ★★★★★★ WM Technology (MAPS) $0.951 $164.19M ★★★★★★ Perfect (PERF) $2.48 $259.71M ★★★★★★ Tuniu (TOUR) $0.9326 $100.75M ★★★★★★ Cardno (COLD.F) $0.1701 $6.64M ★★★★★★ BAB (BABB) $0.886 $6.1M ★★★★★★ Lifetime Brands (LCUT) $4.72 $109.16M ★★★★★☆ Tandy Leather Factory (TLF) $3.47 $29.28M ★★★★★★ Click here to see the full list of 412 stocks from our US Penny Stocks screener. Below we spotlight a couple of our favorites from our exclusive screener. PetMed Express Simply Wall St Financial Health Rating: ★★★★★★ Overview: PetMed Express, Inc., along with its subsidiaries, operates as a pet pharmacy in the United States and has a market cap of approximately $77.56 million. Operations: The company generates revenue through its online retail operations, amounting to $247.01 million. Market Cap: $77.56M PetMed Express, Inc. operates with a market cap of US$77.56 million and generates revenue of US$247.01 million through its online pet pharmacy services. Despite becoming profitable recently, the company faces challenges including a large one-off loss impacting recent financial results and an inexperienced board and management team with average tenures of 2.2 and 1.1 years, respectively. The company's short-term assets exceed both its short- and long-term liabilities, indicating solid liquidity despite no debt concerns. Recent delays in SEC filings have led to Nasdaq compliance issues but do not currently affect trading activities or stock listing status. Dive into the specifics of PetMed Express here with our thorough balance sheet health report. Learn about PetMed Express' future growth trajectory here. Mega Matrix Simply Wall St Financial Health Rating: ★★★★★★ Overview: Mega Matrix Inc. operates a streaming platform called FlexTV, specializing in vertical screen entertainment, with a market cap of $107.33 million. Operations: The company's revenue is primarily derived from the Asia-Pacific region ($17.26 million), followed by the United States and Canada ($11.66 million), Europe, Middle East and Africa ($4.54 million), and Latin America ($1.76 million). Market Cap: $107.33M Mega Matrix Inc., with a market cap of US$107.33 million, operates FlexTV, focusing on vertical screen entertainment. The company is unprofitable but maintains a strong cash runway exceeding three years and has no debt. Its recent strategic alliance with Wardour Studios to form AIFLIX LLC aims to leverage AI for short drama production, potentially enhancing its content offerings and global reach. Despite increased volatility and declining sales from US$8.69 million to US$7.74 million year-over-year, the appointment of seasoned investor Yaman Demir as an executive director may bolster its strategic direction in digital assets and innovation initiatives. Click here to discover the nuances of Mega Matrix with our detailed analytical financial health report. Evaluate Mega Matrix's historical performance by accessing our past performance report. Tilly's Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Tilly's, Inc. is a specialty retailer in the United States offering casual apparel, footwear, accessories, and hardgoods for young men and women as well as boys and girls, with a market cap of $49.15 million. Operations: The company generates revenue from its retail segment focused on apparel, totaling $561.21 million. Market Cap: $49.15M Tilly's, Inc., with a market cap of US$49.15 million, has faced challenges as evidenced by its removal from multiple Russell indices. Despite generating US$561.21 million in revenue from its retail segment, the company remains unprofitable with losses increasing over the past five years. Its short-term assets of US$127 million exceed short-term liabilities but fall short of covering long-term liabilities of US$138.5 million. The management and board are experienced, averaging over 10 years tenure each, while the company benefits from being debt-free and trading at good value compared to peers despite high volatility and negative return on equity. Take a closer look at Tilly's potential here in our financial health report. Examine Tilly's earnings growth report to understand how analysts expect it to perform. Seize The Opportunity Click here to access our complete index of 412 US Penny Stocks. Want To Explore Some Alternatives? Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PETS MPU and TLYS. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
30-06-2025
- Business
- Yahoo
ATRenew Announces US$50 Million Share Repurchase Program
SHANGHAI, June 30, 2025 /PRNewswire/ -- ATRenew Inc. ("ATRenew" or the "Company") (NYSE: RERE), a leading technology-driven pre-owned consumer electronics transactions and services platform in China, today announced that its board of directors has authorized a new share repurchase program, under which the Company may repurchase up to US$50 million of its shares (including in the form of American depositary shares) over a 12-month period starting from June 30, 2025. The Company's proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company expects to fund the repurchases out of its existing cash balance. About ATRenew Inc. Headquartered in Shanghai, ATRenew Inc. operates a leading technology-driven pre-owned consumer electronics transactions and services platform in China under the brand ATRenew. Since its inception in 2011, ATRenew has been on a mission to give a second life to all idle goods, addressing the environmental impact of pre-owned consumer electronics by facilitating recycling and trade-in services, and distributing the devices to prolong their lifecycle. ATRenew's open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. Through its end-to-end coverage of the entire value chain and its proprietary inspection, grading, and pricing technologies, ATRenew sets the standard for China's pre-owned consumer electronics industry. ATRenew is a participant in the United Nations Global Compact, and adheres to its principles-based approach to responsible business. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. ATRenew may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ATRenew's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ATRenew's strategies; ATRenew's future business development, financial condition and results of operations; ATRenew's ability to maintain its relationship with major strategic investors; its ability to facilitate pre-owned consumer electronics transactions and provide relevant services; its ability to maintain and enhance the recognition and reputation of its brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ATRenew's filings with the SEC. All information provided in this press release is as of the date of this press release, and ATRenew does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Investor Relations Contact In China:ATRenew RelationsEmail: ir@ In the United States:ICR atrenew@ Tel: +1-212-537-0461 View original content: SOURCE ATRenew Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
ATRenew First Quarter 2025 Earnings: EPS Beats Expectations
Revenue: CN¥4.65b (up 28% from 1Q 2024). Net income: CN¥42.8m (up from CN¥92.9m loss in 1Q 2024). Profit margin: 0.9% (up from net loss in 1Q 2024). EPS: CN¥0.18 (up from CN¥0.38 loss in 1Q 2024). We've discovered 1 warning sign about ATRenew. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 37%. Looking ahead, revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 4.9% growth forecast for the Specialty Retail industry in the US. Performance of the American Specialty Retail industry. The company's shares are down 2.2% from a week ago. We should say that we've discovered 1 warning sign for ATRenew that you should be aware of before investing here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Q1 2025 ATRenew Inc Earnings Call
Jeremy Ji; Director of Corporate Development, Investor Relations; ATRenew Inc Xuefeng Chen; Chairman of the Board, Chief Executive Officer, Founder; ATRenew Inc Chen Chen; Chief Financial Officer, Director; ATRenew Inc Joyce Ju; Analyst; Bank of America Michael Kim; Analyst; Zacks Investment Research Operator Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to ATRenew Inc's first quarter 2025 earnings conference call. (Operator Instructions) I will now turn the call over to the first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the Company. Please go ahead, sir. Jeremy Ji Thank you. Hello everyone, and welcome to ATRenew first quarter 2025 earnings conference call. Speaking first today is Kerry Chen, our Founder, Chairman and CEO, and he will be followed by Rex Chen, our CFO. After that, we'll open the call to questions from analysts. The first quarter 2025 financial results were released early today. The earnings press release and investors slides accompanying this call are now available at our website dotcom. There will also be a transcript following this call for your convenience. For today's agenda, Kerry will share his thoughts of our quarterly performance and business strategy, followed by Rex, who will address the financial highlights. Both Kerry and Rex will participate during the Q&A session. Please note that our safe harbor statements. Some of the information you hear during our discussions today will consist of forward-looking statements, and I refer you to our safe harbor statements in the earnings press release. Any forward-looking statements that management makes on this call are based on assumptions as of today, and that ATRenew does not take any obligations to upgrade our assumptions on these statements. Also this call includes discussions of certain non-GAAP financial measures, please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB and all comparisons on a year to year basis. And now I'd like to turn the call over to Kerry for business and strategy updates. Xuefeng Chen (interpreted) Hello everyone and thank you for joining ATRenew first quarter 2025 earnings conference call. We are excited to share the updates of our performance and business developments and to address your questions about the company's recent progress. Firstly, in terms of operating results, total net revenues for the first quarter once again exceeded the high end of our guidance range, increasing 27.5% year over year to RMB4,653.5 million. On the profitability side, our non-GAAP property income increased by 39.5% year over year to over RMB110 million. Non-GAAP operating margin reached 2.4%, indicating healthy progress compared to the first quarter of last year. The strong and stable growth of total revenue was primarily driven by the accelerated growth of our 1P business. We continue to invest in our 1P business and recycling fulfillment capabilities, enhance supply access and strengthen AHS recycle brand recognition among consumers to further improve the penetration of our 1PtoC retail sales in our sales mix. Let me provide more color for the three key drivers of the 1P business. Firstly, in the first quarter, 1P business revenue grew by 28.8% year over year, excluding the high base impact from Apple's official trading program and overseas business as mentioned during the fourth quarter earnings call. Product revenue in the first quarter increased by over 50% year over year, exceeding our expectations. In terms of trends, supported by the national subsidies for smartphones and digital products, as well as increased demand for user upgrades in the scenario of our strategic partner platform, our C2B consumer electronics recycling value grew by over 50% year over year. We are committed to advancing strategies on direct engagement with consumers at the front of recycling and retailing. On the capability side, we continue to enhance offline fulfillment capabilities, achieving a net addition of 458 AHS stores year on year by the end of March 2025 and broadening our door to door fulfillment coverage with more prompt service. The effort improves multiple metrics indicating C2B recycling customer satisfaction and ensures a high quality experience for trading users via national subsidies. In terms of our strategic partnership with we've strengthened the long-term development supply chain, delivering best in class user experience and efficient fulfillment. By optimizing the trading process, we've reduced barriers to national subsidies, enabling customers to trade in new devices for new ones in a better and cheaper way. This not only stimulates demand but also improves supplies of high quality pre-owned consumer electronics to boost recycling penetration. As a result, the growth of the trade-in segment continues to outpace. Looking ahead, we will continue to enhance our trade-in supply chain and services to expand our market share in the pre-owned consumer electronics industry. Through new media channels with creative marketing and influencer partnerships, encouraging users to experience AHS recycle's wide range of recycling services and accelerating the growth of our recycling channels. We have launched the revived Environmental Protection initiative under the AHS Recycle brand and fully integrated it with our existing initiatives. This encourages more consumer brands to collaborate with us, enhancing user recognition of AHS recycled value proposition and increasing engagement with our services. In April, while celebrating the Earth Day, we collaborated with 12 leading domestic consumer brands to promote initiatives focused on recycling and the circular economy through joint campaigns across online and offline channels. We enhanced our direct to consumer retail operations under the one business. In the first quarter, 1P2C revenue grew by 73.5% year over year. Retail revenue accounted for 33% of 1P revenue, representing an upward trend. Backed by our refurbishment capabilities, we've seen the pilot program of on-demand refurbishment effectively leverage retail capabilities, creating strong synergies with our in-house compliant refurbishment operations. This approach allows us to offer competitively priced, quality assured 1P refurbished products to users across Paipai, AHS selection, and other retail partner channels. As a result, GMV has shown a healthy upward trend quarter over quarter. Additionally, the retail capability of AHS recycles official store network continued to expand, with revenue growing by over 160% year over year. This amplified our product accessibility to consumers. Looking specifically at the Apple official trading business, as mentioned in previous earnings costs, revenue declined year by year in the first quarter due to the high base driven by early stage pricing strategies. However, benefiting from our management capability and operational efficiencies, the margin in this segment improved significantly. For overseas revenues, as we adjusted our business scale, there was a notable improvement in margin as well. Regarding our marketplace businesses, we've seen a marked rise in trading service acceptance among both online and offline users alongside positive shift in merchant demands. In response, we have enhanced our B2B, B2C, and multi-category recycling services to deliver best in class user experience, thereby boosting user loyalty. We've strengthened our industry capabilities as fundamental infrastructure and enhanced services for merchants. As of the end of the first quarter, the number of registered merchants in PJT exceeded 1 million, with a double-digit year over year increase in active trading merchants. The proportion of higher fee OPT services, i.e., shipping quality inspection services, grew, raising PJT marketplaces take rate for the secondhand consumer electronic transactions by 24 basis points. This reflects PJT's growing nationwide prominence as an essential infrastructure within the industry and as a leading exchange for secondhand electronic products. PGT is pioneering the innovation of secondhand sales models by expanding diverse online and offline sales channels for merchants. In March, we launched our first offline flagship store in Shenzhen's Huaqiangbei, driving transparency in the pre-owned consumer electronics industry. The 1,200 square meter store displays nearly 10,000 secondhand phones that have undergone professional inspections. The flagship store operates under a warehouse to retail model, seamlessly integrating storage and sales functions by offering all in one browse intact purchase experience, it significantly reduces the traditional three to five days of restocking cycle, helping merchants reduce inventory costs and minimize logistics delays. On-site procurement also reduces after sales disputes. We will continue to empower more industry merchants, open up our local and national merchant resources to enrich the offline product selection. In addition, we recently began piloting compact authentication warehouses within our self-operated city to streamline the quality inspection process for merchants. These compact warehouses located closer to major trading hubs allow us to operate at lower costs while offering more convenient and accessible services to merchants. At the same time, we are exploring collaborations with influencers on live streaming platforms. We opened our 10 and 3D inventory and supply chain on the PJT marketplace to those influencers, which enables them to help users find high quality and cost effective devices, creating the specialty buyer model and enhancing the service loop between PJT and consumers. Moving forward, we will open up more platform capabilities to merchants to boost quality product sales and promote distribution capabilities and compliant growth of pre-owned consumer electronics across regional centers. This includes expanding merchants to increase the variety and volume of products, strengthening backend systems to improve greater accuracy in pricing and the overall merchant experience while driving higher product turnover. In terms of scale, sales across all categories in the i i consignment business grew by 2.2 times year over year in the first quarter. Looking ahead, we plan to further integrate consignment products into more of our self-operated distribution channels, providing small and medium sized merchants with broader access to retail opportunities. Throughout the development of multi-category recycling services, both gross transaction value and revenue nearly tripled year over year in the first quarter. Gold recycling saw faster growth, while the recycling service fee for luxury goods increased slightly. As a result of these combined factors, the overall multi recycling take rate remains stable year over year. In terms of user experience, we have continued to optimize our SOPs and internal capabilities across multiple areas, including pre-recycling consultation, pricing, and delivery. As a result, overall customer satisfaction and user experience have improved meaningfully. In summary, our core businesses achieved faster than expected growth in the first quarter of this year. We seized growth opportunities arising from national subsidies by providing best in class trad in experience. As we enter the second quarter, we are confident in further strengthening our fulfillment capabilities and brand influence. This will enhance users' awareness of trade in and recycling, enabling us to seize the industry growth opportunities. In the long run, as user recognition of recycling and secondhand products continues to rise, the industry is on a positive growth trajectory. With our long term and steadfast scenarios plus supply chain strategy, we are committed to obtaining growth, more user mindshare. Enhancing user experience, ensuring the efficient circulation of secondhand products, and creating greater value. Now I'd like to turn the call over to CFO Rex, for financial updates. Chen Chen (interpreted) Hello everyone. We are pleased to report strong financial performance in the first quarter of 2025, driven by the national subsidy policies or enhanced fulfillment capabilities and expanded retail network. Total revenue in the first quarter once again exceeded the high end of our guidance, increasing by 27.5% to over RMB4650 million, and adjusted operating income increased by 39.5% to over RMB110 million. Before taking a detailed look at the financials, please note that all amounts are in RMB and all comparisons are on a year over year basis unless otherwise stated. In the first quarter, the growth of total revenues was primarily driven by sustained growth in our net product revenues. Net product revenues increased by 28.8% to RMB4260 million, primarily due to an increase in the sales of free on consumer electronics through our online channels. Net service revenues were 390 million, representing an increase of 14.2%. The increase was primarily due to an increase in the service revenue generated from multicultural recycling business and PJT marketplace. The growth in service revenue went along with the upward trend in our marketplaces overall gross transaction value, delivering an overall marketplace take rate of 5.25% in the first quarter of 2025. During the quarter. Our multi-category recycling business contributed over RMB50 million of revenue, accounting for 13.3% of service revenues. The percentage significantly increased from 5.6% in the same period of 2024. Now let's discuss our operating expenses to provide greater clarity on the trends in our actual operating-based expenses, we will mainly discuss our non-GAAP operating expenses, which better reflect how management views our results of operations. The reconciliation of GAAP and non-GAAP results are available in our earnings release and the corresponding Form 6-K furnished with the U.S. SEC. Merchandise costs increased by 22.7% to RMB3620 million in line with the growth of revenue product sales. Gross profit margin for our 1P business was 15.2% compared with 10.9% in the same period last year. The improvement of gross margin in our 1P business was primarily due to our C2B recycling supply chain capabilities, compliant refurbishment capabilities, and diversified retail channels. In addition, we optimize the business strategy of Apple's official trade-in program. Despite a decrease in business scale from the high base in the first quarter of 2024. The growth margin in the first quarter of 2025 achieved a significant turnaround from losses compared to the same period last year. Fulfillment expenses increased by 38.1% to RMB430 million. Non-GAAP fulfillment expenses increased by 40.2% to RMB430 million. Under the non-GAAP measures, the increase was primarily due to an increase in personnel costs and logistics expenses as we conducted more recycling and transaction activities compared with the same period of 2024 and an increase in operation related expenses as we expanded our store networks and operation center cap capacity in the first quarter of 2025. Then get fulfillment senses as a percentage of total revenues increased to 9.1% from 8.3%. Selling and marketing expenses increased by 30.4% to RMB420 million. Non-GAAP selling and marketing expenses increased by 72.8% to 390 million. The increase was primarily due to an increase in advertising expenses and promotional campaign related expenses, and an increase in commission expenses in relation to channel service fees. Non-GAAP selling and marketing expenses as a percentage of total revenues increased to 8.3% from 6.1%. And administrative expenses decreased by 14.1% to RMB6 million non-GAAP G&A expenses increased by 2.2% to RMB59 million primarily due to an increase in personnel costs. Non- GAAP G&A expenses as a percentage of total revenues decrease to 1.3% from 1.6%. Technology and content expenses increased by 9.6% to RMB55 million. Non-GAAP technology and content expenses increased by 16.5% to RMB53 million. The increase was primarily due to an increase in personnel costs. Non-GAAP technology and content expenses as a percentage of total revenues decreased to 1.1% from 1.2%. As a result, our non-GAAP operating income was RMB110 million in the first quarter of 2025, representing an increase of 39.5% year over year. Non-GAAP operating profit margin was 2.4% compared to 2.2% in the first quarter of 2024. During the first quarter of 2025, we repurchased a total of approximately 0.4 million ADS for approximately USD1.2 million and our current share repurchase program, which authorizes us to repurchase up to USD50 million worth of our shares including ADSs through June 27, 2025. As of March 31, 2025, we had repurchased a total of approximately 10.7 million ADSs for approximately USD27.1 million under this share repurchase. As of March 30, 2025, cash and cash equivalents restricted cash, short-term investment, and funds receivable from third party payment service providers totaled RMB2.78 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns. Now turning to business outlook for the second quarter of 2025, we anticipate total revenues to be between RMB4710 million and RMB4801 million. Representing a year over year increase of 24.7% to 27.4%. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions which are subject to change. This concludes our prepared remarks, operator, we are now ready to take questions. Operator We will now begin the question-and-answer session. (Operator Instructions) Joyce Ju, Bank of America. Joyce Ju (spoken in foreign language) Thanks, management, for taking my questions and congrats for achieving a strong quarter. My first question is on the national subsidy. How effective has the national subsidy been in promoting recycling and trading programs? Do you see the same growth momentum in your secondhand recycling and resale business as a result? Secondly, in the first quarter, we see that both revenue and non-GAAP operating margins showed strong performance. Could you please help to explain the increase in the non-GAAP fulfillment margin and self-marketing margin? Is there any adjustment to this year's total revenue and margins target? Thank you. Xuefeng Chen (interpreted) Thank you for the questions. I will take the first and Rex will take the second. Regarding your first question, according to industry research, the shipment of new smartphones in the domestic market increased by 9% year by year in the first quarter, marking positive growth for the fifth consecutive quarter. Meanwhile, new consumer electronic sales on our partner platform has strong growth momentum. The subsidies for trade-in programs combined with our strong positioning in key recycling channels have jointly driven the accelerated growth of our one business. We have previously shared the view that the national subsidies will definitely boost the mobile phone recycling business. That's why industry leading brand awareness, fulfillment capabilities, and unique advantages in essential application scenarios in recycling. AHS recycle is well positioned to benefit from the increasing adoption of recycling in mainstream channels. Currently, the national subsidy cap for mobile phone trade-in is RMB500. However, our average recycling price in one business is approximately RMB1500. This creates a stronger incentive for users to not only take up the national subsidy but also leverage the trade-in service as of AHS recycle. Looking ahead to the medium to long term, we remain confident in China's strong and consistent commitment to stimulating consumption. In our total transaction volume for pre-owned consumer electronics, mobile phones are the largest category, accounting for approximately 70%. The average replacement cycle for phones is about two years, and there are approximately 300 million new phones and 10million of new laptops and digital devices being shipped annually in China. Currently, the penetration rate for recycling and trading program remains in single digits, but in the long run, we believe there is potential for domestic penetration to raise to over 20%. The main brands and e-commerce platforms we've collaborated with are participating in national subsidy programs with more flexible pricing strategies. Therefore, during the June 18 shopping festival this year, we expect to maintain business growth through trade in services and are committed to strengthening our delivery capabilities to better serve users in recycling and trading. Chen Chen (interpreted) Regarding the second question, the year-on-year improvement of non-GAAP operating profit margin in the first quarter was mainly due to our pricing strategy and balanced control of the overall expense ratio. As Kerry noted in the first quarter of 2024, Apple's official trading program and our overseas business reported high revenue and losses. However, in the first quarter of 2025, as we optimize business and pricing strategies, the profit margin of the two businesses has significantly improved. Meanwhile, by leveraging our supply chain strengths, the proportion of 1P2C retail revenue increased by 8% year over year. During the same period, as our 1P business expanded rapidly, we strategically focused on self-operated stores and increased staff in fulfillment and operation functions. Thus, the non-gap fulfillment expense ratio rose by 0.9% year over year. The non-GAAP selling expenses ratio has increased by 2.2%, mainly due to higher promotion and advertising expenses. With rising business demands, we increased coupon-related promotion expenses this quarter. Meanwhile, to raise brand awareness, we made investments aligned with business growth, such as a new media platform of AHS recycle brand. Additionally, in strengthening recycling and trading collaboration with channel commissions rose as it's expected. Benefiting from our refined management of general and administrative expenses as well as technology and content expenses, both non-GAAP expenses ratios decrease in the first quarter. As a result, the non-gap operating profit margin for the first quarter increased by 0.2% year over year. Looking at the full year of 2025, we remain committed to our goal of accelerating total revenue growth. We will continue to strengthen our fulfillment capacity and brand influence to support growth in trade in volumes driven by national subsidy programs and maintain competitive pricing strategy. In the future, we aim to gradually improve our non-gap operating profit margin, reflecting our effective operating leverage. Operator [Xiao Wang], CICC. (spoken in foreign language) Thank you for taking my question. As you mentioned earlier, your goal is to accelerate store openings this year with a target of 9 out of 800 HS recycled stores. Can you share details on the progress of store opening in the first quarter? Thank you. Xuefeng Chen (interpreted) As of March 30, 2025, there were a total of 1,886 NHS recycled stores nationwide, including 917 self-operated stores and 969 joint operated stores. The total number of stores has increased by a net of 458 compared to the same period last year. Compared to the end of 2024, in certain areas of three high tier cities, we transitioned some of our joint operated stores to a self-operated model to effectively handle the incremental trading volumes from national subsidies and improve user satisfaction. This change allows us to leverage the more efficient self-management, a self-managed operational capabilities to quickly boost the recycling performance of these stores. Over the same period, our two door fulfillment team expanded by 360 people year over year to 1,000 people, strengthening our fulfillment capabilities in more markets. We are increasing the proportion of face-to-face services by extending both in-store and two-door services. In our NPS service, users are much more satisfied with those, with these two face to face offline services featuring instant confirmation than with logistics-based pickup. We will continue to enhance our offline fulfillment capabilities to provide the best in class trade-in experience. Thank you for the question. Operator Michael Kim, Zacks Small Cap Research. Michael Kim Great, good morning and good evening, everyone. Just one question from me, just in terms of your initiatives to enhance the AHS recycle brand, can you discuss how much traction you've seen as a result of your increased focus on marketing and advertising and then just related to that. How should we be thinking about incremental expenses or customer acquisition costs as you continue to prioritize improving brand awareness and loyalty. Thanks. Xuefeng Chen Okay, thank you for your question. (interpreted) AHS Recycle has solidified its position as a leading brand in recycling by providing best of fulfillment services. We believe that high quality services and proactive response to user feedback are the cornerstones of brand reputation. Given the current low penetration rate of recycling services, we have strategically employed well planned new media campaigns to promote our services and enhance brand awareness. On the one hand, we introduce engaging content, showcasing our recycling services, emphasizing AHS recycles competitive pricing, security, and convenience. On the other hand, by leveraging geo targeting, we guide users to nearby AHS recycled stores, driving orders through our mini program, official website, and AHS stores. Furthermore, we enhance the new media presence of our joint operated stores by co-creating content that resonates with local users, thereby attracting more customers to the stores. As a result, in the first quarter, the product revenue from AHS mini program and official websites grew faster than our overall 1P business. The national subsidy has also played a role in increasing user awareness and adoption of our services. Looking ahead, we will continue to strengthen the AHS recycle brand and refine our industry leading recycling service offerings to capture greater market share and reinforce user perception. Michael Kim Okay, thank you. Operator As there are no further questions at this time, I'd like to turn the conference back to management for closing remarks. Jeremy Ji Thank you. Thank you again for joining us. A reply with today's call will be available on our website shortly, followed by a transcript ready. If you have any additional questions, please feel free to email us at ir@ Have a good day. Operator The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
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ATRenew to Report First Quarter 2025 Financial Results on May 20, 2025
SHANGHAI, May 6, 2025 /PRNewswire/ -- ATRenew Inc. ("ATRenew" or the "Company") (NYSE: RERE), a leading technology-driven pre-owned consumer electronics transactions and services platform in China, today announced that it plans to release its unaudited financial results for the first quarter of 2025 before the U.S. market opens on Tuesday, May 20, 2025. The Company's management will hold an earnings conference call at 08:00 A.M. Eastern Time on Tuesday, May 20, 2025 (08:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers: International: 1-412-317-6061 United States Toll Free: 1-888-317-6003 Mainland China Toll Free: 4001-206115 Hong Kong Toll Free: 800-963976 Access Code: 8219500 The replay will be accessible through May 27, 2025 by dialing the following numbers: International: 1-412-317-0088 United States Toll Free: 1-877-344-7529 Replay Access Code: 8341777 A live and archived webcast of the conference call will also be available at the Company's investor relations website at About ATRenew Inc. Headquartered in Shanghai, ATRenew Inc. operates a leading technology-driven pre-owned consumer electronics transactions and services platform in China under the brand ATRenew. Since its inception in 2011, ATRenew has been on a mission to give a second life to all idle goods, addressing the environmental impact of pre-owned consumer electronics by facilitating recycling and trade-in services, and distributing the devices to prolong their lifecycle. ATRenew's open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. Through its end-to-end coverage of the entire value chain and its proprietary inspection, grading, and pricing technologies, ATRenew sets the standard for China's pre-owned consumer electronics industry. ATRenew is a participant in the United Nations Global Compact, and adheres to its principles-based approach to responsible business. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. ATRenew may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ATRenew's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ATRenew's strategies; ATRenew's future business development, financial condition and results of operations; ATRenew's ability to maintain its relationship with major strategic investors; its ability to facilitate pre-owned consumer electronics transactions and provide relevant services; its ability to maintain and enhance the recognition and reputation of its brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ATRenew's filings with the SEC. All information provided in this press release is as of the date of this press release, and ATRenew does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Investor Relations Contact In China:ATRenew RelationsEmail: ir@ In the United States:ICR atrenew@ +1-212-537-0461 View original content: SOURCE ATRenew Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
