Fourth Quarter 2023 Highlights
- Total net revenues grew by 29.9% to
RMB3,873.6 million (US$545.6 million ) fromRMB2,981.2 million in the fourth quarter of 2022. - Loss from operations was
RMB16.7 million (US$2.4 million ), compared to a loss from operations ofRMB2,210.6 million in the fourth quarter of 2022. Adjusted income from operations (non-GAAP)[1] wasRMB81.6 million (US$11.5 million ), compared toRMB34.6 million in the fourth quarter of 2022. - Number of consumer products transacted[2] was 8.5 million, compared to 7.5 million in the fourth quarter of 2022.
Full Year 2023 Highlights
- Total net revenues grew by 31.4% to
RMB12,965.8 million (US$1,826.2 million ) fromRMB9,869.4 million in the full year of 2022. - Loss from operations was
RMB173.3 million (US$24.4 million ), compared toRMB2,623.7 million in the full year of 2022. Adjusted income from operations (non-GAAP)[1] wasRMB251.7 million (US$35.5 million ) compared toRMB6.9 million in the full year of 2022. - Number of consumer products transacted[2] was 32.3 million, compared to 32.0 million in the full year 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 |
Fourth Quarter 2023 Financial Results
REVENUE
Total net revenues increased by 29.9% to
- Net product revenues increased by 31.1% to
RMB3,522.5 million (US$496.1 million ) fromRMB2,687.9 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 19.7% to
RMB351.1 million (US$49.5 million ), compared toRMB293.3 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
RMB3,150.0 million (US$443.7 million ), compared toRMB2,370.5 million in the same period of 2022, representing an increase of 32.9%. This was primarily due to the growth in product sales. - Fulfillment expenses were
RMB301.1 million (US$42.4 million ), compared toRMB274.9 million in the same period of 2022, representing an increase of 9.5%. The increase was primarily due to an increase in personnel costs as the Company conducted more recycling and transaction activities compared with the same period of 2022. - Selling and marketing expenses were
RMB317.0 million (US$44.7 million ), compared toRMB594.0 million in the same period of 2022, representing a decrease of 46.6%. The decrease was primarily due to (i) the recognition of the impairment loss of intangible assets and deferred cost in fourth quarter of 2022 which was nil in fourth quarter of 2023, and (ii) 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. The decrease was partially offset by an increase in marketing expenses. - General and administrative expenses were
RMB62.2 million (US$8.8 million ), compared toRMB76.6 million in the same period of 2022, representing a decrease of 18.8%, primarily due to (i) a one-off consulting fees incurred in the fourth quarter of 2022, and (ii) a decrease in share-based compensation expenses. - Technology and content expenses were
RMB63.8 million (US$9.0 million ), compared toRMB54.5 million in the same period of 2022, representing an increase of 17.1%. The increase was primarily due to an increase in personnel costs in connection with the future ongoing upgrade of the Company's operation center and system.
LOSS FROM OPERATIONS
Loss from operations was
Adjusted income from operations (non-GAAP) was
NET (LOSS) INCOME
Net income was
Adjusted net income (non-GAAP) was
BASIC AND DILUTED NET INCOME PER ORDINARY SHARE
Basic and diluted net income per ordinary share were
Adjusted basic and diluted net income per ordinary share (non-GAAP) were
Full Year 2023 Financial Results
REVENUE
Total net revenues increased by 31.4% to
- Net product revenues increased by 34.4% to
RMB11,658.3 million (US$1,642.0 million ) fromRMB8,676.7 million in the full year of 2022. The increase was primarily attributable to an increase in the sales of pre-owned consumer electronics through the Company's online and offline channels. - Net service revenues increased by 9.6% to
RMB1,307.5 million (US$184.2 million ) fromRMB1,192.8 million in the full year of 2022. The 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 increased by 22.7% to
- Merchandise costs were
RMB10,338.9 million (US$1,456.2 million ), compared toRMB7,596.6 million in the full year of 2022, representing an increase of 36.1%. The increase was primarily due to the growth in product sales. - Fulfillment expenses were
RMB1,124.0 million (US$158.3 million ), compared toRMB1,123.5 million in the full year of 2022, representing a minor statistic change. This minor change was primarily due to an increase in personnel costs as the Company conducted more recycling and transaction activities compared with the year of 2022, which partially offset by (i) a decrease in logistics expenses and operation center related expenses as the Company kept optimizing its store and operation station networks, and (ii) a decrease in share-based compensation expenses. - Selling and marketing expenses were
RMB1,250.9 million (US$176.2 million ), compared toRMB1,536.1 million in the full year of 2022, representing a decrease of 18.6%. The decrease was primarily due to (i) the recognition of the impairment loss of intangible assets and deferred cost in the year of 2022, which was nil in 2023, (ii) 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 year of 2022, and (iii) a decrease in personnel cost. The decrease was partially offset by an increase in marketing expenses. - General and administrative expenses were
RMB266.0 million (US$37.5 million ), compared toRMB230.4 million in the full year of 2022, representing an increase of 15.5%. The increase was primarily due to (i) an increase in expected credit loss, and (ii) an increase in office related expenses. - Technology and content expenses decreased by 14.1% to
RMB195.7 million (US$27.6 million ) fromRMB227.8 million in the full year of 2022. The decrease was primarily due to the decrease in one-off technological expenses as the Company's platforms become more sustainable.
LOSS FROM OPERATIONS
Loss from operations was
Adjusted income from operations (non-GAAP) was
NET LOSS
Net loss was
Adjusted net income (non-GAAP) 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) 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 first quarter of 2024, 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: |
2934540 |
The replay will be accessible through
International: |
1-412-317-0088 |
|
United States Toll Free: |
1-877-344-7529 |
|
Access Code: |
6692659 |
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 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 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 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 |
1,978,696 |
278,694 |
|||||||||
Restricted cash |
— |
210,000 |
29,578 |
|||||||||
Short-term investments |
782,230 |
410,547 |
57,824 |
|||||||||
Amount due from related parties, net |
115,501 |
89,592 |
12,619 |
|||||||||
Inventories |
433,467 |
1,017,155 |
143,263 |
|||||||||
Funds receivable from third party payment service |
316,277 |
253,107 |
35,649 |
|||||||||
Prepayments and other receivables, net |
539,077 |
567,622 |
79,948 |
|||||||||
Total current assets |
3,890,178 |
4,526,719 |
637,575 |
|||||||||
Non-current assets: |
||||||||||||
Amount due from related parties, net, non-current |
180,000 |
— |
— |
|||||||||
Long-term investments |
219,583 |
467,095 |
65,789 |
|||||||||
Property and equipment, net |
118,600 |
148,223 |
20,877 |
|||||||||
Intangible assets, net |
544,650 |
270,631 |
38,118 |
|||||||||
Other non-current assets |
95,744 |
80,411 |
11,326 |
|||||||||
Total non-current assets |
1,158,577 |
966,360 |
136,110 |
|||||||||
TOTAL ASSETS |
5,048,755 |
5,493,079 |
773,685 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
123,983 |
349,931 |
49,287 |
|||||||||
Accounts payable |
73,335 |
532,293 |
74,972 |
|||||||||
Contract liabilities |
195,369 |
119,715 |
16,862 |
|||||||||
Accrued expenses and other current liabilities |
449,489 |
465,123 |
65,511 |
|||||||||
Accrued payroll and welfare |
132,468 |
146,371 |
20,616 |
|||||||||
Amount due to related parties |
47,604 |
78,032 |
10,991 |
|||||||||
Total current liabilities |
1,022,248 |
1,691,465 |
238,239 |
|||||||||
Non-current liabilities: |
||||||||||||
Operating lease liabilities, non-current |
33,523 |
22,495 |
3,168 |
|||||||||
Deferred tax liabilities |
111,312 |
67,658 |
9,529 |
|||||||||
Total non-current liabilities |
144,835 |
90,153 |
12,697 |
|||||||||
TOTAL LIABILITIES |
1,167,083 |
1,781,618 |
250,936 |
|||||||||
TOTAL SHAREHOLDERS' EQUITY |
3,881,672 |
3,711,461 |
522,749 |
|||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' |
5,048,755 |
5,493,079 |
773,685 |
ATRENEW INC. |
||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
Three months ended |
Years ended |
|||||||||||||||||||||||
2022 |
2023 |
2022 |
2023 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
Net revenues |
||||||||||||||||||||||||
Net product revenues |
2,687,917 |
3,522,474 |
496,130 |
8,676,672 |
11,658,298 |
1,642,037 |
||||||||||||||||||
Net service revenues |
293,256 |
351,098 |
49,451 |
1,192,752 |
1,307,484 |
184,155 |
||||||||||||||||||
Operating (expenses) income(1)(2) |
||||||||||||||||||||||||
Merchandise costs |
(2,370,546) |
(3,149,968) |
(443,664) |
(7,596,613) |
(10,338,870) |
(1,456,199) |
||||||||||||||||||
Fulfillment expenses |
(274,927) |
(301,081) |
(42,406) |
(1,123,495) |
(1,123,994) |
(158,311) |
||||||||||||||||||
Selling and marketing expenses |
(594,027) |
(317,025) |
(44,652) |
(1,536,052) |
(1,250,860) |
(176,180) |
||||||||||||||||||
General and administrative expenses |
(76,605) |
(62,187) |
(8,759) |
(230,421) |
(265,981) |
(37,463) |
||||||||||||||||||
Technology and content expenses |
(54,456) |
(63,774) |
(8,982) |
(227,812) |
(195,679) |
(27,561) |
||||||||||||||||||
Other operating (loss) income, net |
(1,305) |
3,752 |
528 |
41,238 |
36,264 |
5,108 |
||||||||||||||||||
|
(1,819,926) |
— |
— |
(1,819,926) |
— |
— |
||||||||||||||||||
Loss from operations |
(2,210,619) |
(16,711) |
(2,354) |
(2,623,657) |
(173,338) |
(24,414) |
||||||||||||||||||
Interest expense |
(1,078) |
(1,558) |
(219) |
(6,163) |
(7,056) |
(994) |
||||||||||||||||||
Interest income |
2,961 |
13,217 |
1,862 |
17,780 |
37,875 |
5,335 |
||||||||||||||||||
Other (loss) income, net |
(13,678) |
832 |
117 |
38,791 |
(5,887) |
(829) |
||||||||||||||||||
Loss before income taxes and share of loss in |
(2,222,414) |
(4,220) |
(594) |
(2,573,249) |
(148,406) |
(20,902) |
||||||||||||||||||
Income tax benefits |
71,476 |
8,923 |
1,257 |
111,783 |
42,530 |
5,990 |
||||||||||||||||||
Share of loss in equity method investments |
(307) |
(1,925) |
(271) |
(6,471) |
(50,374) |
(7,095) |
||||||||||||||||||
Net (loss) income |
(2,151,245) |
2,778 |
392 |
(2,467,937) |
(156,250) |
(22,007) |
||||||||||||||||||
Net (loss) income per ordinary share: |
||||||||||||||||||||||||
Basic |
(13.23) |
0.02 |
0.00 |
(15.16) |
(0.96) |
(0.14) |
||||||||||||||||||
Diluted |
(13.23) |
0.02 |
0.00 |
(15.16) |
(0.96) |
(0.14) |
||||||||||||||||||
Weighted average number of shares used in |
||||||||||||||||||||||||
Basic |
162,569,309 |
160,765,588 |
160,765,588 |
162,819,410 |
162,160,835 |
162,160,835 |
||||||||||||||||||
Diluted |
162,569,309 |
160,765,588 |
160,765,588 |
162,819,410 |
162,160,835 |
162,160,835 |
||||||||||||||||||
Net (loss) income |
(2,151,245) |
2,778 |
392 |
(2,467,937) |
(156,250) |
(22,007) |
||||||||||||||||||
Foreign currency translation adjustments |
8,751 |
(7,014) |
(988) |
(30,032) |
8,883 |
1,251 |
||||||||||||||||||
Total comprehensive loss |
(2,142,494) |
(4,236) |
(596) |
(2,497,969) |
(147,367) |
(20,756) |
ATRENEW INC. |
||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND |
||||||||||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
Three months ended |
Years ended |
|||||||||||||||||||||||
2022 |
2023 |
2022 |
2023 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
(1) Includes share-based compensation |
||||||||||||||||||||||||
Fulfillment expenses |
(15,665) |
(5,480) |
(772) |
(44,088) |
(23,390) |
(3,294) |
||||||||||||||||||
Selling and marketing expenses |
(12,025) |
(3,974) |
(560) |
(35,547) |
(17,240) |
(2,428) |
||||||||||||||||||
General and administrative expenses |
(21,940) |
(16,974) |
(2,391) |
(72,270) |
(73,156) |
(10,304) |
||||||||||||||||||
Technology and content expenses |
(7,970) |
(4,967) |
(700) |
(22,331) |
(20,616) |
(2,904) |
||||||||||||||||||
(2) Includes amortization of intangible assets |
||||||||||||||||||||||||
Selling and marketing expenses |
(88,747) |
(66,412) |
(9,354) |
(352,748) |
(288,749) |
(40,669) |
||||||||||||||||||
Technology and content expenses |
(1,580) |
(482) |
(68) |
(6,320) |
(1,928) |
(272) |
||||||||||||||||||
(3) Includes impairment loss of deferred cost, |
||||||||||||||||||||||||
Selling and marketing expenses |
(271,114) |
— |
— |
(271,114) |
— |
— |
||||||||||||||||||
Technology and content expenses |
(6,217) |
— |
— |
(6,217) |
— |
— |
||||||||||||||||||
|
(1,819,926) |
— |
— |
(1,819,926) |
— |
— |
Reconciliations of GAAP and Non-GAAP Results |
||||||||||||||||||||||||
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
Three months ended |
Years ended |
|||||||||||||||||||||||
2022 |
2023 |
2022 |
2023 |
|||||||||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
Loss from operations |
(2,210,619) |
(16,711) |
(2,354) |
(2,623,657) |
(173,338) |
(24,414) |
||||||||||||||||||
Add: |
||||||||||||||||||||||||
Share-based compensation |
57,600 |
31,395 |
4,423 |
174,236 |
134,402 |
18,930 |
||||||||||||||||||
Amortization of intangible assets |
90,327 |
66,894 |
9,422 |
359,068 |
290,677 |
40,941 |
||||||||||||||||||
Impairment loss of deferred cost, |
2,097,257 |
— |
— |
2,097,257 |
— |
— |
||||||||||||||||||
Adjusted income from operations |
34,565 |
81,578 |
11,491 |
6,904 |
251,741 |
35,457 |
||||||||||||||||||
Net loss |
(2,151,245) |
2,778 |
392 |
(2,467,937) |
(156,250) |
(22,007) |
||||||||||||||||||
Add: |
||||||||||||||||||||||||
Share-based compensation |
57,600 |
31,395 |
4,423 |
174,236 |
134,402 |
18,930 |
||||||||||||||||||
Amortization of intangible assets |
90,327 |
66,894 |
9,422 |
359,068 |
290,677 |
40,941 |
||||||||||||||||||
Impairment loss of deferred cost, |
2,097,257 |
— |
— |
2,097,257 |
— |
— |
||||||||||||||||||
Less: |
||||||||||||||||||||||||
Tax effects of amortization of |
(71,476) |
(10,047) |
(1,415) |
(111,783) |
(43,654) |
(5,990) |
||||||||||||||||||
Adjusted net income (non- |
22,463 |
91,020 |
12,822 |
50,841 |
225,175 |
31,874 |
||||||||||||||||||
Adjusted net income per |
||||||||||||||||||||||||
Basic |
0.14 |
0.57 |
0.08 |
0.31 |
1.39 |
0.20 |
||||||||||||||||||
Diluted |
0.13 |
0.57 |
0.08 |
0.30 |
1.39 |
0.20 |
||||||||||||||||||
Weighted average number of |
||||||||||||||||||||||||
Basic |
162,569,309 |
160,765,588 |
160,765,588 |
162,819,410 |
162,160,835 |
162,160,835 |
||||||||||||||||||
Diluted |
169,321,970 |
160,765,588 |
160,765,588 |
170,702,595 |
162,160,835 |
162,160,835 |
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