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| Statement |
|---|
| Our efficient system of regional operating centers and centralized self-operated operation stations have further improved our inspection quality and cost controls |
| In the overseas market, we are delighted to see strong interest in our automated technology for Korean owned consumer electronics |
| Both revenue and operating income saw better than expected results |
| I'm pleased to report that 2023 was a year of significant achievements for our company |
| We will continue to drive the core growth flywheel of 1P recycling business and to expand our industry value chain through economy of scale, we aim to expand our operating profit margin further by bringing our operational efficiency to the next level |
| Today, we are delighted to announce a new share buyback program that will allow us to repurchase up to $20 million worth of our shares over the next 12 months based on our confidence in our value creation, business growth momentum, and strong cash flow |
| In terms of fulfillment, we achieved a remarkable efficiency improvement |
| The number of registered merchants on PJT marketplace reached 596,000, a strong growth of 46.2% compared to the previous year, which laid solid foundations for future development |
| At this stage, we believe strategically, allocating appropriate resources to social media traffic will solidify our long term competitive position in this dynamic market |
| We further solidified our secondhand supply chain capabilities, providing more valuable services on our platforms |
| This approach has added benefit to further strengthen our sourcing capabilities and the market position |
| At the profit level, we achieved a solid non-GAAP operating profit of RMB252 million with a non-GAAP operating profit margin of 1.9% exceeding our target for the year |
| Moving on to the fourth quarter 2023, we are pleased to announce another profitable quarter as we recorded another new record in non-GAAP operating income on revenues that once again exceeded the top end of our guidance |
| Secondly, strengthening robust supply chain capabilities as a foundation |
| On the purchasing end, we see a stronger demand for value for money goods from service consumers |
| Our automation capabilities will continue to improve our fulfillment efficiency |
| First, on the recycling front, we continue to successfully execute our customer acquisition strategy by leveraging our precise recycling scenarios |
| In the fourth quarter, total revenues increased by 29.9% to RMB3,873.6 million, driven by strong growth in net product revenues and a rebound in service revenues |
| The recognition from Reuters and the expert panel is a testament to our innovation and our technological achievements |
| As a leading company in this field, we are strategically positioned to capitalize on this upward trend and better facilitate JD and [indiscernible] owners' trade in programs |
| Our long term goal is to improve our non-GAAP operating profit margin by 1% every year |
| Once again, it demonstrates that recycling and trade in are encouraged by national policies as a long term stable industry with high certainty and low policy risks |
| Additionally, in terms of e-commerce partners, we have solidified our collaboration with JD's Mobile and Electronics Retail departments, offering one stop single device and multi device trading services |
| This was mainly driven by [HR] (ph) efficiency improvements from deploying advanced digital CRM tools of the B2B sales team |
| Looking ahead, we will further open up our supply chain advantages and become a high quality supplier for pre-owned products in the industry |
| By expanding our multi cash flow recycling efforts, we have further strengthened the appeal of our recycling scenarios for users |
| The scale effect created by the use of automation technology at operating centers has also had a positive impact |
| In 2023, ATRenew achieved record breaking revenues and profits with a continuously strengthened pre-owned supply chain capability and an ongoing increase in brand recognition |
| We are proud of the proven business model of PJT Marketplace as it's an indispensable infrastructure of the industry |
| Our strong cash position safeguards a sustainable growth outlook |
| Statement |
|---|
| In 2023, we introduced a new confinement model to address the challenges faced by secondhand industry merchants, difficulties in operating to consumer e-commerce stores and the struggle of small businesses |
| However, as this business is relatively new and is still being refined, this gross profit margin is below an ideal level |
| This was a year over year increase of 7.8%, also a lot lower than our revenue growth rate over the same period |
| On distribution, our advantages of an integrated B2C plus B2B platform were further magnified |
| With the release of the iPhone 15 services, we implemented a proactive approach to attract customers with aggressive pricing strategies, causing gross margin compression |
| First, could you provide more color on the higher than expected profitability this year? And what's your profitability target for 2024 for the medium to long term? Second, in late 2023 and early 2024, the iPhone 15 series faced some challenges from Huawei |
| This has driven down shipping and receiving costs |
| These figures correspond to year-over-year decrease of 2.4%, 1.6%, 0.1%, and 0.6%, respectively |
| Non GAAP G&A expenses as a percentage of total revenues decreased to 1.2% from 1.8% |
| As a result of these initiatives, our non-GAAP fulfillment expense as a percentage of total revenue has continued its downward trend, reaching 8.5% for the full year 2023, significantly down from 10.9% in 2022 and this underscores our dedication to achieving further cost reduction at scale |
| Non-GAAP selling and marketing expenses as a percentage of total revenues decreased to 6.4% from 7.5% |
| Non GAAP fulfillment expenses as a percentage of total revenues decreased to 7.6% from 8.7% |
| Looking ahead to the first quarter and the full year of 2024, we believe that ATRenew operates in a sustained circular economy that is impervious to economic fluctuations and technological changes |
| On the fulfilment end we see a unchanging need from secondhand merchants for efficient and hassle free trading and logistics solutions |
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