ATRenew Inc.

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to the AT Renew Inc.' 's third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. We will be hosting a question and answer session after management's prepared remarks. Please note today's call is being recorded. I would now like to turn the conference over to your first speaker today, Mr. Jeremy Gee, head of corporate development. Please go ahead, sir.

Thank you. Hello, everyone, and welcome to ATR News third quarter 2025 earnings conference call. Speaking first today is Kerry Chen, our founder, chairman, and CEO, and he'll be followed by Rex Chen, our CFO. After that, we'll open the call to questions from the analysts. The third quarter 2025 financial results were released early today. The earnings press release and investor slides accompanying this call are now available at our IR website, ir.antirenew.com. There will also be a transcript following this call for your convenience. For today's agenda, Kerry will share his thoughts about 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 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 HVNU 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 are mentioned during this conference call are in RMB, and all comparisons are on year-over-year basis. And now I'd like to turn the call over to Kerry for business and strategy updates.

Thank you. Hello, investors and analysts. Hello everyone and thank you for joining ATV News 3rd Quarter 2025 Earnings Conference Call.

We are pleased to update you on our strengthened operating results, share the progress of our three-stage development strategy, and address key topics of interest.

首先,我们在第三季度再次实现了多个经营指标的新的突破。 集团总收入创历史新高,同比增长27.1%至51.5亿元。 其中,EP产品收入保持快速增长。 with an increase of 28.7% to 47.3 billion yuan. 3P platform service revenue with an increase of 11.6% to 4.2 billion yuan, maintaining a healthy development rhythm. Nungap's operating profit is 1.4 billion yuan, a historical high of 34.9% with an increase of 34.9%. Nungap's operating profit rate is 2.7%, with a steady increase of 1.4 billion yuan. Every three seasons, 我们养精蓄锐,准备9月中下旬头部品牌厂商旗舰机型的发布,并为10月的新机批量出货做交付能力储备,为用户提供更好的回收和移植换新体验。 In the third quarter, we once again achieved new breakthroughs across multiple operational metrics.

SoloNet revenue reached a new record high of 5.15 billion RMB, representing 27.1% year-over-year growth. Our 1P product revenue sustained strong growth momentum, rising 28.7% year-over-year to 4.73 billion RMB, while 3P platform service revenue increased 11.6% year-over-year to 420 million RMB, demonstrating continued healthy growth. Nungat offering profit reached a record high of 140 million RMB, up 34.9% year-over-year, with our non-GAAP operating profit margin achieving 2.7%, demonstrating steady improvements both year-over-year and quarter-over-quarter. During each third quarter, we strategically prepared for the mid- to late-September launch of flagship devices from leading manufacturers while building operational capacity to support uptake in new device treatments throughout October, providing users with better reflecting and trade-in experiences.

Looking at the performance of the third quarter, in a batch of self-sufficiency businesses, we have acquired more resources by using the old-fashioned new scene and the brand that loves to recycle. We have used the supply chain capability of self-sufficiency, and we have provided selected goods for C-end users through the sales channels such as Love Recycling and TaiTai. Among them, the product revenue of the third quarter of the new product has increased by 102%. Looking closer to our third quarter performance, within our 1P business, we have successfully expanded our product acquisition through trade-in programs,

and our AHS Recycle brand. We have effectively leveraged our proprietary combined refurbishment capabilities to deliver premium curated products to consumers through retail channels, including AHS Selection and PiPi. This strategy delivered impressive results, with compliant refurbished product revenues surging 102% year-over-year in the third quarter, 1P2C revenue sustaining robust growth of over 70% year-over-year, and the 1-P2C proportion expanding to 36.4%. We believe that strengthening our retail capabilities will enhance our pricing power in the recycling end and effectively strengthen end-to-end value throughout the industry's supply chain.

From the expansion of the supply chain, we strengthen the new construction of the user-friendly brand. The 3C recycling order volume of the 3C recycling official website maintains a healthy increase of 30%. Meanwhile, Jindong Resuscitation and Restoration is still one of the most sought-after recovery recovery methods. In terms of delivery, we actively build offline delivery capabilities through face-to-face service and customer trust, providing convenience and good-priced recovery services for users. Among them, the total number of self-sufficient and joint-stocked home repair stores has expanded to 2,195 stores, including full-time and full-time stores, On the supply side, we focused on building stronger customer awareness and recognition from the AHS Recycle brand.

Others through the AHS official website maintained a solid 30% growth. While JD.com's trade-in program continues to be a preferred choice for users looking to recycle and upgrade their devices, we also significantly expanded our offline fulfillment capabilities, building customer trust through personalized face-to-face services that offer both convenient and competitive pricing. Our AHS store network grew to 2,195 locations across both self-operated and joint-operated sites. supplemented by a workforce of 1,962 team members who either provide full-time or part-time two-door service. This comprehensive approach ensures that recycling and trade-in services are easily accessible to customers.

在一二线城市的自营店内,我们推广爱惠州国民第一回收品牌,爱惠州啥都收的用户心智。 Through the addition of new asset platform models, high-quality products such as gold, rice wine, and other high-quality products, we create more value for users and improve the quality of our stores. In the three to five-line city, we form a cooperative cooperation with local market experience and business partners to encourage more businesses to develop from just opening a store. deep-rooted a city and hired a number of city partners who love to recycle home appliances. During the process, we provide the business with a low-cost discount and other standard benefits, provide official traffic support, and support local business to form social media influence to acquire local traffic. The two sides work together to make the door shop results better.

In top tier cities, we are positioning AHS Recycle as China's leading recycle brand, promoting AHS Recycle's everything through our self-operative stores. We've expanded our asset-life platform to include high-value categories like luxury goods, gold, and premium liquor, creating more user value while improving store unit economics. In meet to lower tier cities, we partner with local merchants who understand their markets, helping them evolve from single store franchisees into city partners with multiple AHS stores. We support these partners with standardized quality inspection pricing tools, official traffic, and social media guidance to build local customer bases. This collaboration drives mutual success. Stronger store performance enables franchisees to expand locally and scale their businesses. Creating a thought will effect that benefits everyone.

与商家的共赢也体现在我们的平台业务中。 三季度平台业务服务收入保持稳健的双位数增长。 平台综合收费率4.89%。 具体从三个平台业务板块来看,

Our commitment to win-win collaboration with merchants is evident in the performance of our platform business. In the third quarter, service revenue maintained strong double-digit growth with an overall take rate of 4.89%, breaking this down across three key platform segments.

First, B2B. Taiji Lang's trading with small and medium-sized businesses is more inclusive. We actively expand our business to platform businesses. The total number of signing business partners on the Pagetang platform has quickly exceeded 1.37 million at the end of the third quarter. On the one hand, we are proud of the industry-based facilities and business service capabilities of the Pagetang platform. The number of sellers representing the members continues to grow rapidly. On the other hand, as a representative of the Douyin Taitao business, the small B users quickly joined Pagetang. We also quickly improved the supply chain capabilities of small B merchants. In the process of developing suppliers and merchants, in order to ensure the customer experience of the buyer, we allow the buyer to adopt a more flexible purchasing power in stages. Therefore, the platform spending rate of Paiji Tang has made some active efforts in 3D. We maintain confidence in Paiji Tang's long-term currency ability, not only because of Paiji Tang's mature industry infrastructure ability, First, in B2B, PJT Marketplace continues to provide an inclusive trading environment for small and medium-sized merchants.

By the end of the quarter, the number of contracted merchants on the platform quickly surpassed 1.37 million. This was driven by two factors. On one hand, the number of sellers representing product supplies continue to grow rapidly, thanks to BJT Marketplace's strong infrastructure and merchant service capabilities. On the other hand, with the rapid onboarding of small-sized merchants, such as those leveraging the specialty buyer model of DOINN, we accelerated supply chain enhancement for these merchants. To ensure a positive buyer experience during this expansion, we temporarily allowed more flexible post-sale rights and made a strategic adjustment to PJT Marketplace take rate. We remain confident in PJT Marketplace long-term monetization potential, not only because of its mature industry infrastructure, but also because of its flexibility to innovate, expand user reach, optimize services, and create more value over time.

Second, users of B2C Pipeline Platform the service and payment capabilities to achieve the same improvement. While maintaining the service capabilities of the Pop open platform, we have further strengthened the vending service for small and medium-sized businesses, and increased the comprehensive payment rate of B2C PaiPai platform with the same ratio. Under the PaiPai vending mode, small and medium-sized and second-hand businesses no longer need to worry about management of products, store operations, traffic management, and sales, etc. Second, in B2C, PiPi's user service and monetization capabilities achieved another year-over-year improvement.

While maintaining POP open platform functionality, we further strengthened consignment services for small and mid-sized merchants. Under this model, merchants no longer need to worry about product management, store operations, traffic, or after sales, as PiPi provides standardized end-to-end operational solutions. In the third quarter, GMV for consignment grew 180% year-over-year, and take rate continued to trend upward in the high single-digit range, reflecting strong merchant recognition of our service value.

Third, the multi-level recovery service of the new asset platform model maintains rapid development. The recovery transaction rate increased by 95%, continuing to improve the user service experience. As of the end of September, we have launched multi-level recovery services in 878 self-serve stores and 131 self-serve joint stores. The geographical scope of the service is further expanded. The door to the new door to the new door to the new door to the new door to the new door to the new door to the new door

Third, our asset-led platform for multi-category resourcing services sustained rapid growth, with transaction volume increasing by 95% year-over-year, and user experience continues to improve. As of September, 878 self-operated stores and 131 franchisee locations had activated multi-category capabilities. expanding geographic coverage, newly enabled stores typically stabilized performance within two to three months. After allocating front-end and fulfillment costs, multi-category services deliver an average monthly contribution profit of 7,000 RMB per store, optimizing the unit economics of AHS stores. This model supports customer acquisition, repeated orders, and the disciplined rollout of additional high-quality stores.

In terms of efficiency and experience improvement, we continue to embrace automation and AI technology. In the process of rapid growth of the business, the automation self-checking tool and the automation self-checking system at the operation center processing point help us achieve a scale effect and optimize the fee rate. In addition to introducing the AI-improved outsourcing recovery process of the product's automatic identification ability at the last conference, we are also reviewing, We continue our strategic adoption of automation and AI technologies to drive excellence in operation and experience.

As our business scales, automated inspection systems at both the recycling and operational centers generate significant economies of scale and help optimize our fulfillment expense ratio. Beyond the AI-powered automation inspection capabilities for recycling of second-hand luxury goods discussed last quarter, we have also deployed AI applications in customer service, inquiry handling, and training. These initiatives are enhancing the user experience and building robust capacity to handle peak demand periods, such as major promotional events.

以上是我们对于第三季度经营结果的复盘。 我们也希望借助本次电话会的机会为各位投资者和分析师继续分享未来两到三年的三级发展战略。 That concludes our review of third quarter operating results.

Next, we'd like to take this opportunity to continue sharing our three-stage development strategy for the next two to three years.

第一级,继续加强二手手机3C能力的基本盘。 China's largest second-hand mobile phone 3C transaction and service platform. We integrated the concept of C2B plus B2B plus B2C. Formed the industry-leading end-to-end ability. And maximize user and industrial value. In the future, we will continue to consolidate our basic plate from four aspects. 1. Enhance scene capability. Enhance. to coordinate with brand manufacturers such as Jindong and Apple to obtain low-cost and high-efficiency first-hand goods. Second, strengthen the delivery capability. Through the delivery capability of large front-end domestic air-conditioning stores and air-conditioning small stores to ensure a better user experience. Third, strengthen the sales capability of 2C. Through the integration of regulations, The first stage is to continue strengthening the core capabilities of the second-hand consumer electronics.

ItRenew has already become China's largest platform for second-hand consumer electronics transactions and services. We have integrated the entire industry chain across B2B, B2C, and B2C, creating industry-leading end-to-end capabilities and maximizing value for both users and the industry. Going forward, we will reinforce this foundation in four ways. First, by enhancing scenario capabilities and deepening trade-in collaboration in new device sales channels with partners such as JD.com and Apple, enabling low-cost, high-efficiency access to first-hand supply. Second, by strengthening fulfillment capabilities through our nationwide AHS store network and two-door service teams to ensure a superior user experience. Third, by enhancing the capabilities of retail sales through compliant refurbishment and a higher proportion of retail sales to achieve an end-to-end loop and improve supply chain value. And fourth, by advancing technology capabilities, leveraging automation and AI technology to unlock scale efficiencies over the long term.

第二集 加速发展爱回收国民第一回收品牌 结合爱回收门店交付能力 做好新资产平台模式的多品类回收服务 提升用户对爱回收服务的使用频次 At the same time, F&A is entering into a wide community scene in various big cities. Based on the high-end community scene, F&A is working together with more consumer brands to do anti-corruption activities, and to encourage more and more users to participate in the second-hand recycling and circulation economy, and benefit from the sustainable consumption method created by the F&A brand. The second stage is to accelerate the growth of AHS Recycle as China's leading recycling brand.

By combining our store-based fulfillment capabilities with an asset-like platform model, for multi-category recycling, we aim to increase user engagement and frequency of service usage. At the same time, the ecosystem extension of AHS Recycle is expanding into extensive community scenarios across major cities. And AHS Recycle brand will partner with more consumer brands to promote revived initiatives based on high-frequency scenarios. using grain incentives to encourage broader participation in recycling and the circular economy across China so that everyone can benefit from the sustainable consumption model we advocate. With this, we strengthen consumer awareness of our recycling capabilities, improve our active user base of consumer electronics with high-frequency daily grain disposal activities, and promote a closed loop of grain recycling and grain consumption. We are dedicated to building differentiated competitive edges for AHS Recycle.

第三集,筹备国际化战略,讲好中国特色的绿色故事。 我们深耕中国市场15年,积累了丰富的二手手机3C的标准化能力,自动化能力以及平台能力。 随着国内回收渗透率的快速提升,越来越多的二手手机出口到海外,这已经成为了一个确定的趋势。 On the one hand, we are actively involved in the standardization and cross-border coordination of the export of state-of-the-art mobile phones. For example, we participated in the discussion of the cross-border export standard of second-hand products cooperating with the CQC China Quality Verification Center and the RSO International Standardization Organization. On the other hand, compared to the domestic popular model of early-stage high-quality state-of-the-art export, through Hong Kong and other second-hand mobile 3C global free trade centers to meet the needs of overseas users. Currently, the unit sales have reached 10,000 units. In the future, with the further improvement of domestic recovery penetration rate and further clarification of export regulations, we believe there will be more suppliers exported to overseas, and we look forward to applying the efficient platform capability to overseas to build an international version of the Pachinang trading platform. The third stage is to prepare for an international strategy that shares China's green story globally.

Over the past 15 years, we have built deep expertise in standardization, automation, and platform capabilities for secondhand consumer electronic products. The rapid increase in domestic recycling penetration is driving a growing flow of used smartphones to overseas markets, representing a clear trend. On the one hand, we are actively engaging in the development of export standards and international mutual recognition for China market products. For instance, We participate in the expert committee for the cross-border X4 standard for secondhand goods, a joint initiative of the China Quality Certification Center and the International Organization for Standardization. On the other hand, we are channeling high-quality China-sourced devices of earlier generations into the international market. Hong Kong, among others, as a key global trade hub for used electronics, facilitates this flow, allowing us to successfully address the demand abroad. Recently, the monthly export of China-sourced devices has exceeded 10,000 units. Looking forward, as domestic recycling penetration rates increase and standards become further clarified, we believe there will be more exports. We also look forward to replicating our efficient platform capabilities abroad to create an international version of the PJT marketplace. connecting global sources of pre-owned consumer electronics with global merchants. Simultaneously, we will, at the appropriate time, integrate with the international layouts of our strategic partners to provide solutions and jointly explore the broader retail opportunities in the global markets. Looking forward to We remain confident in the healthy development of the second-hand industry and the strong growth trajectory of our company.

补充一项国际今年万物新生认为享有国际盛誉的环保奖项,为地球奋斗奖。 该奖项由英国威廉王子发起,在五个领域分别评选对修复地球具有重要贡献的组织。 We are also proud to share an international recognition

This year, AT Renew is the finalist for the prestigious Earthshot Prize, a global environmental award funded by His Royal Highness Prince William. The prize recognizes outstanding contributions across five categories aimed at repairing our planet. AT Renew was highly recommended by the committee in the Build a Waste-Free World category for its practices in advancing the circular economy through pre-owned product transactions and services. Moving forward, we remain committed to our founding mission of to give a second life to all idle goods and will continue to contribute to the circular economy in China and globally. 下面请CFO Rex对财务数据进行解读。 Now I'd like to turn the call over to CFO Rex for financial updates.

各位投资者和分析师大家好。 我们很高兴与各位分享公司在2025年第三季度取得的亮眼财务表现。 Hello everyone, we are pleased to report outstanding financial performance in the third quarter of 2025.

We continue to capture opportunities from targeted trade-in scenarios, enhanced fulfillment and supply chain capabilities, and an elevated AHS recycle brand presence.

TOTAL REVENUE IN THE THIRD QUARTER WAS AT THE HANDLAND OF OUR GUIDANCE, INCREASING BY 27.1% TO 5,150 MILLION RMB.

ADJUSTED OPERATING INCOME GREW BY 34.9% TO OVER 140 MILLION RMB. 在解读财务处理之前,请注意, 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.

第三季度,集团总收入的增长动力持续来自产品收入的稳健提升,产品收入增长8.7%至47.3亿元。

In the third quarter, total revenue growth was primarily driven by continued net product revenue growth. Net product revenues increased by 28.7% to $4,730 million, largely attributable to the growth in online sales of pre-owned consumer electronics.

Let's service real news for 420 million in the third quarter, representing an increase of 11.6%.

The increase was largely driven by PiPi Marketplace and multi-category recycling business. The overall take rate of our marketplace was 4.89% for the third quarter of 2025. During the quarter, our multi-category recycling businesses contributed nearly 53 million of revenue, accounting for 12.5% of service revenues.

In terms of operating costs, we mainly discuss non-GAAP coaching and cost analysis to show the cost trend from the perspective of the management team. 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 reflects how management views our operating results. The reconfiliations of GAAP and non-GAAP results are available in our earnings release and the corresponding firm 6K furnished with the US SEC.

商品成本增加25.3%至40.9亿元,与产品销售的增长一致。 我们EP业务的毛利率为13.4%,而上年同期为11.7%。 EP毛利率的改善主要得益于我们发挥C2B回收场景,供应链中的合规翻新准备能力,多样化的严选零售渠道的优势。 Merchandise costs increased by 26.3% to $4,090 million in line with the growth in product sales.

Gross profit margin for our 1P business was 13.4% compared with 11.7% in the same period last year. The gross margin improvement in our 1P business was primarily driven by high efficiency C2B recycling scenarios, compliant refurbishment capabilities incorporated in our supply chain, and an increasingly diversified retail channel mix. This allowed us to increase the proportion of higher margin retail sales. with 1P2C revenue accounting for 36.4% of product revenue in the third quarter of 2025, up from 26.4% in the same period last year. Meanwhile, our international business operation efficiency has improved, with continued improvement in both scale and growth margins.

履约费用增长25.9%至4.4亿元,能盖部履约费用增长25.6%至4.3亿元,能盖部履约费用增长主要云有1. Fulfillment expenses increased by 25.9% to 440 million.

Non-GAAP fulfillment expenses increased by 25.6% to 430 million. Under the non-GAAP measures, the increase was mainly driven by higher personnel and logistics expenses, reflecting a greater volume of recycling and transaction activities compared to the same period in 2024. Additionally, operation-related costs rose as we expanded our store network and enhanced operation center capacity in the third quarter of 2025. Non-GAAP fulfillment expenses as a percentage of total revenues decreased to 8.4% from 8.5%.

Selling and marketing expenses increased by 15.4% to $316 million.

NAMGAP selling and marketing expenses increased by 40.6% to $360 million. The increase was primarily driven by higher advertising and promotional campaign-related spending, as well as an increase in commission expenses associated with channel service fees. As a result, NAMGAP selling and marketing expenses as a percentage of total revenues increased to 7.0% from 6.3%.

General and administrative expenses increased by 6.9% to $74.1 million.

Nangat GNA expenses also increased by 17.7% to 65.2 million, primarily due to an increase in tax and surcharges, as well as an increase in consultant fees. Nangat GNA expenses as a percentage of total revenues decreased to 1.3% from 1.4%.

研发费用上升19.5%至6380万元。 Technology and content expenses increased by 19.5% to 63.8 million.

Non-GAAP technology and content expenses increased by 23.2% to 61.1 million as well. The increase was firmly driven by elevated personnel expenses. Non-GAAP technology and content expenses as a percentage of total revenue remain stable at 1.2%.

As a result, our non-GAAP operating income was over 140 million in the third quarter of 2025,

compared to Nanga operating income of 100 million in the third quarter of 2014. Nanga operating profit margin was 2.7% for this quarter, compared to 2.6% in the third quarter of 2024, representing an increase of 16 basis points.

第三季度,我们使用了约210万美元回购近50万股ADS。 我们会持续评估集团整体利润的达成情况, 在适当的时期更新股东回报方案。

During the third quarter of 2025, we repurchased a total of approximately 0.5 million ADSs for approximately 2.1 million US dollars. We will continue to evaluate our overall profitability and update the shareholder return programs at the appropriate time.

截至2025年9月30,现金及现金等家务收现资金,短期投资以及第三方支付平台应收账款合计25.4亿元,

As of September 30, 2025, cash and cash equivalents, restricted cash, short-term investment, and funds receivable from third-party payment service providers totaled 2.54 billion RMB. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.

关于2025年第四季度的资金, Now turning to the business outlook.

For the fourth quarter of 2025, we anticipate total revenues to be between 6,080 million RMB and 6,118 million RMB, representing a year-over-year increase of 25.4% to 27.4%. For the full year 2025, we estimate total revenues to be between 20.87 billion RMB and 20.97 billion RMB, representing a year-over-year increase of 27.8% to 28.5%. Please note that this forecast only reflects our current and presumed reviews on the market and operational conditions, which are subject to change.

This concludes our prepared remarks.

Operator, we are now ready to take questions.

Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. And to withdraw your question, please press star then 2. When asking a question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. At this time, we'll pause momentarily to assemble our roster. And the first question will come from Wang Zhao with CICC. Please go ahead.

Thanks for taking my questions. My first question is we know that recently they're having some changes to the national subsidy policies. Could you please share the impact on your business? And the second one is, could you please give us more color about outlook for Q4 and next year? Thank you.

非常感谢提问,我来回答一下。 第一个问题是,首先关于国补,这是一个很好的问题。 我们可以围绕国补, to analyze the growth and drive of our EP business. The state-funded state-funded state-funded state-funded state-funded state-funded state-funded state-funded state-funded state-funded However, the national stock market has effectively driven the upgrade of the second-hand mobile phone 3C industry. In this year's supply and demand trend, we have a mature supply and demand of supply and demand supply chain, which can create the best supply and demand experience in the industry with Jindong, and pull through brands such as Apple, Huawei, Xiaomi, and other brand manufacturers. Through the way of saving the machine, we can combine e-commerce and brand manufacturers in the supply and demand scene, Thank you for your question.

The first question is about national subsidy. That's a very good question. Let me address it by analyzing the growth drivers of our 1P business in the context of the national subsidy. The national trade-in subsidy directly promotes the sales of new devices. However, these subsidies are only applicable to new devices priced under 6,000 RMB. Therefore, a significant portion of consumers purchasing premium models do not utilize these subsidies. Given that our 1P business primarily focuses on premium brands, the proportion of trading orders utilizing national trade subsidies was actually quite limited this year. Nevertheless, the national subsidies have effectively stimulated upgrades within the pre-owned consumer electronics industry. Benefiting from our mature trading supply chain this year, we collaborated with JD.com to create the best-in-class trading user experience. We also worked with brands like Apple, Huawei, and Xiaomi, facilitating device upgrades for more users through trade-in offsets. This approach, combined with specific subsidies offered by e-commerce platforms and manufacturers in trading scenarios, helping users upgrade their devices at a lower cost.

今年呢,我们估算爱回收在京东实现了10%以上的回收和以中关心的渗透率。 渗透率持续提升,在京东精准的手机3C业务大团里精准实现转化。 这个渗透率还有非常大的提升空间。 As the brand manufacturers' new machines sell at higher prices, the trend of supply and delivery has increased. As a way to upgrade the equipment with higher price advantage, the supply and delivery of new machines has been encouraged by more and more users. At the same time, it helps manufacturers to protect the retail price of new machines and achieve a win-win situation. The retail and retail scene is one of our important members. We will continue to work with e-commerce and manufacturer partners to make good supply and delivery, price calculation, operation process, supply chain, user experience,

We estimate that AHS Recycle achieved a trading penetration rate exceeding 10% on JD.com this year. The penetration rate is consistently increasing, driving precise conversions within JD's core consumer electronics business. Furthermore, we see significant potential for further growth in this penetration rate. As the retail prices of new devices from brand manufacturers continue to trend upwards, 3DN programs are gaining favor among users as a more cost-effective upgrade path. Simultaneously, these programs help manufacturers protect the retail pricing of their new devices, creating a win-win situation. The scenario of new device retail presents an important source for us. We will continue to collaborate closely with our e-commerce and manufacturing partners to optimize the trade-in pricing algorithm, operational processes, supply chain and user experience, increasing the penetration rate of trade-in services over the long run.

关于第二个问题,预计第四季度总收入增速为25.4%至27.4%。 我们所服务的主要电子品牌在今年发布了更具有用户吸引力的产品,并实现了可观的销量,唤起了更多用户的唤机需求。 Regarding the second question, we expect total revenue growth in the fourth quarter to be between 25.4% and 27.4%.

The major electronics brands we serve have launched more attractive products this year and achieved considerable sales. stimulating stronger consumer demand for device upgrades.

基于我们对四季度的业绩展望, 预计2025年全年的总收入达208.7亿元至209.7亿元, 对应同比增长27.8%至28.5%。 这意味着我们有希望较年初内部预算取得了更快的增长,

Based on our fourth quarter outlook, we forecast total revenue for the full year 2025 to be between 20.87 billion RMB and 20.97 billion RMB, representing a year-over-year increase of 27.8% to 28.5%. This suggests a possibility for us to grow faster than our internal budget at the beginning of this year.

It is expected that this year's revenue will accelerate growth as achieved last year, mainly due to the following three reasons. First, this year, the country calls for the resurgence of change. E-commerce and brand manufacturers are actively building or strengthening the service capability of resurgence of change. Our cooperation in the resurgence of change supply chain can effectively provide users with the best resurgence experience in the industry. Second, at the same time, we accelerate the expansion of delivery capability. 在国内近300座城市构建了更加细致的交付网络,服务保障用户的回收换新体验。 3. 我们积极建设爱回收品牌,因为品牌的影响力才是长期的。 We anticipate accelerated revenue growth this year compared to last year, primarily driven by three factors.

First, the National Trading Initiative has promoted e-commerce platform and brand manufacturers. to actively build or enhance their trade-in service capabilities. Our integrated trade-in supply chain can efficiently provide users with the best in-class upgrade experience. Second, we are rapidly expanding our fulfillment network, having established a more granular presence in nearly 300 cities across China to ensure a superior user experience. Third, we are actively building the AHS Recycle brand, recognizing that brand influence delivers long-term value.

For 2026, we are actively preparing our internal annual budget

We expect to maintain a relatively rapid year-over-year growth rate, driven by increased penetration of trading programs, enhanced brand power and fulfillment capabilities of AHS Recycle, and improvements in our overall supply chain efficiency. Thank you for the question.

Thank you. The next question will come from Wei Fadi with DBS. Please go ahead.

I will recap in English. So good evening management and congratulations for the astonishing third quarter results. So two questions from outside. The first one is that what is the store opening pace for the fourth quarter and for the next year for ATB New? Thank you.

非常感谢提问,我回答一下。 对于第一个问题,我们今年全年保持加速开店的目标。 大家可以从我们的门店结构和能力看出来, In the first and second-tier cities, the number of self-sufficiency stores has steadily increased. The priority of self-sufficiency stores is to develop quality and to make good user experience. Of which, nearly 88% of self-sufficiency stores have opened multi-store recovery services. In terms of joint standard stores, we are actively working with local market partners to make good energy supply. Based on the energy and flow supply, we will serve local users together with city partners to quickly promote the goal of opening stores Thank you. I'll take the first question.

For the full year 2025, we will maintain our target of accelerating store openings. As shown in our store structure and capabilities, the number of self-operated AHS recycle stores in Tier 1 and Tier 2 cities has grown steadily. For self-operated stores, we prioritize quality development, focusing on delivering a superior user experience through enhanced fulfillment capabilities. Nearly 88% of these self-operated stores are now equipped with multi-categorized services. Regarding joint operating standard stores, we actively collaborate with local market partners to build capabilities together. Based on empowering them with our capabilities and traffic support, we work with city partners to serve local users and rapidly advance our store opening goals. In some franchise store scenarios, we are prudently exploring service capabilities for high value categories, with goals recycling already taking initial shape. Moving forward, the pace of new store openings will be dynamically balanced with the expansion of our two-door service teams to ensure the efficiency of both our physical locations and personnel.

好的,谢谢。我另外也想请教一下公司对于多品位服务,未来来说有怎么样的一个预期吗? So my second question is, what are the plans and targets for multi-category business in the future? Thank you.

谢谢。 对这个问题,在多品类业务方面, 我们今年保持了高速发展的节奏, 得益于我们快速提升了交付范围, 品类的基准,报价的能力,用户体验等多个指标。 我们的多品类回收业务是轻资产的平台模式, It is not easy to be affected by policy changes and to operate in accordance with them. Pay attention to the efficiency and price of the C2B model and other core user experience indicators. In the third quarter, in the context of the rapid rise in the price of gold, we considered the user's trading experience and adopted a way to reduce the fee rate of the service to provide the user with real value and also ensured the rapid growth of the trading scale. In the future, we will prioritize the ability of love recovery brands and stores

In terms of multi-category business, it has maintained a rapid development trajectory this year, benefiting from our quick improvements in several metrics, including service coverage, baseline pricing capabilities for various categories, and user experience. Our multi-category recycling business operates on an asset-light platform model, which is less susceptible to policy changes and emphasizes combined operations. It focuses on core user experience metrics, such as transaction efficiency and pricing within the C2B model. In the third quarter, against the backdrop of rapidly rising gold prices, we prioritized user transaction experience by reducing our take rate. This approach provided users with tangible value and benefits while also ensuring the rapid growth of our transaction volume. Looking ahead, leveraging the strength of our Ahrefs Recycle brand and our store network, we will prioritize developing high value categories that are convenient for users to bring to our store for transactions. We aim to integrate user demographic profiles, including age and gender, to solidify the consumer mindset of AHS Recycle's go-to destination positioning.

Thank you.

The next question will come from Michael Kim with Zach Small Cap Research. Please go ahead. Mr. Kim, your line is open.

Hi. Can you hear me?

Yes, we can hear you.

Yes? Okay. I'm curious to get your perspective on the uptake of enhanced services across your marketplace businesses and how Maybe a more favorable mix might impact take rates. And then just related to that, how has the mix trended more recently as it relates to multi-category transactions? Thanks.

Okay, thank you. The take rate on the page is stable at more than 6%. The take-place for PGT marketplace remains stable at over 6%.

The slight variation in the platform tick rate in the third quarter was primarily due to phased adjustments in our merchant service policy, where we allowed buyers more flexible return and exchange options. Simultaneously, PJT actively introduced innovative transaction models, such as the specialty buyer model, and expanded platform supply chain connectivity to Douyin. This provides more investors and small business owners with access to industry supply sources, simplifies second-hand transactions, and offers consumers better products and greater value.

In the PaiPai platform, the machine buying mode has improved. The rate of consumption has increased to 9%. The sales rate of machine buying and the rate of consumption of products have been adjusted. The machine buying mode, which is standardized on the platform, can effectively solve the operation problems of small and medium-sized stores. Within the PiPi marketplace, the consignment model has shown initial success.

Driving its take rate into the high single-digit range to 9%. There remains room for optimization in both the sales categories and take rate structure for consignment. This standardized model effectively addresses operational challenges for small merchants by offering a simpler door setup experience, higher transaction efficiency, and better pricing and sales channels. As the confinement business scales, both the revenue structure and take rate of the PiPi marketplace have the potential for further optimization.

对于多品类,目前较大比例的交易规模来自黄金回收应付, 更标准化收费流言较低,为低个位数水平。

Regarding our multi-category services, a significant portion of current transaction volume comes from gold recycling, which is more standardized and operates with a low single-digit take rate. The service take rate for the second-hand luxury category continues to exceed 10%. For future category expansion, we will prioritize high value categories that offer greater service value and potential for higher takeaways.

Got it. Thanks for taking my question.

There are no further questions at this time. I'd like to turn the conference back over to management for closing remarks.

Thank you. Thank you all again for joining us. A replay of today's call will be available on our website shortly, followed by a transcript when ready. If you have any additional questions, please feel free to email us at ir.atrenew.com. Have a good day.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.