SHANGHAI, Aug. 23,
2023 /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 its
unaudited financial results for the second quarter ended
June 30, 2023.
Second Quarter 2023 Highlights
- Total net revenues grew by 38.1% to RMB2,963.7 million (US$408.7 million) from RMB2,145.7 million in the second quarter of
2022.
- Loss from operations narrowed down to RMB61.0 million (US$8.4
million) from RMB168.2 million
in the second quarter of 2022. Adjusted income from operations
(non-GAAP)[1] was RMB52.0
million (US$7.2 million),
compared to an adjusted loss from operations (non-GAAP) of
RMB42.3 million in the second quarter
of 2022.
- Number of consumer products transacted[2] was
7.7 million, compared to 7.8 million in the second quarter of
2022.
Mr. Kerry Xuefeng Chen, Founder,
Chairman, and Chief Executive Officer of ATRenew, commented, "We
are pleased to announce a post-COVID performance that exceeded our
guidance. During the second quarter of 2023, total net revenues
increased by 38.1% year over year to RMB2,963.7 million, further demonstrating the
circular economy business model's capacity for resilient growth. We
remain unwavering in our commitment to our strategic priorities
centering the self-operated business and consumer electronics
recycling and transaction services. At the same time, we retain our
sharp focus on ensuring ample supply sources and a stable supply
chain, while enhancing our competitive edges through improved
customer experience and fulfillment capabilities of new categories.
Furthermore, we will continue to strengthen our brand influence
nationally and collaborate more closely with e-commerce platforms
and electronics brands. These partnerships foster greater synergies
among fast-moving consumer goods brands and provide users with a
seamless circular consumption experience. By successfully executing
these initiatives, we will generate higher levels of long-term
value at a larger scale in the second-hand economy."
Mr. Rex
Chen, Chief Financial Officer of ATRenew, added,
"During the quarter, we made another profitability breakthrough on
the back of a strong recovery of revenue growth. Non-GAAP operating
income reached a new high of RMB52.0
million and our non-GAAP operating profit margin was 1.8%,
representing healthy upticks. Notably, our 1P business' gross
profit margin, calculated as product revenue net of merchandise
costs as a percentage of product revenues, increased by 1
percentage point on a year-over-year basis, as we realized more
value creation through refurbishing and retailing our device
inventories. Thanks to the improvements to our automation
technologies and big data algorithm that contributed to inspection
and logistics efficiencies, the cost efficiency related to our
fulfillment expenses continued to improve. Going forward, we will
continue to maximize efficiency by leveraging cutting-edge
technologies, maintain healthy revenue growth and enhance our
overall efficiency to maximize profits and create greater
value."
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 PJT Marketplace, Paipai Marketplace
and other channels the Company operates in a given period, prior to
returns and cancellations, excluding the number of consumer
products collected through AHS Recycle; a single consumer product
may be counted more than once according to the number of times it
is transacted on PJT Marketplace, Paipai Marketplace and other
channels the Company operates through the distribution process to
end consumer.
|
Second Quarter 2023 Financial Results
REVENUE
Total net revenues increased by 38.1% to RMB2,963.7 million (US$408.7 million) from RMB2,145.7 million in the same period of
2022.
- Net product revenues increased by 42.2% to RMB2,636.7 million (US$363.6 million) from RMB1,854.1 million in the same period of 2022.
The increase was primarily attributable to an increase in the sales
of pre-owned consumer electronics.
- Net service revenues increased by 12.1% to RMB327.0 million (US$45.1
million), compared to RMB291.6
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.
OPERATING COSTS AND EXPENSES
Operating costs and expenses were RMB3,032.5 million (US$418.2 million), compared to RMB2,327.4 million in the same period of 2022,
representing an increase of 30.3%.
- Merchandise costs were RMB2,325.8
million (US$320.7 million),
compared to RMB1,653.8 million in the
same period of 2022, representing an increase of 40.6%. This was
primarily due to the growth in product sales.
- Fulfillment expenses were RMB268.8
million (US$37.1 million),
compared to RMB275.2 million in the
same period of 2022, representing a decrease of 2.3%. The decrease
was primarily due to the decreases in logistics expenses and
operation center related expenses as the Company kept optimizing
its store and operation station networks, but was partially offset
by an increase in personnel costs as the Company's recycling
activities developed compared with the same period of 2022.
- Selling and marketing expenses were RMB335.3 million (US$46.2
million), compared to RMB293.4
million in the same period of 2022, representing an increase
of 14.3%. The increase was primarily due to (i) an increase in
advertising expenses and promotional campaign related expenses,
(ii) an increase in commission expenses in relation to channel
service fees, and (iii) an increase in office and traveling related
expenses. The increase was partially offset by a decrease in
personnel cost and 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.
- General and administrative expenses were RMB57.5 million (US$7.9
million), compared to RMB45.2
million in the same period of 2022, representing an increase
of 27.2%, primarily due to (i) an increase in expected credit loss
relating to credit risk, (ii) an increase in professional service
and consulting fees. The increase was partially offset by a
decrease in personnel cost.
- Technology and content expenses decreased by 24.6% to
RMB45.0 million (US$6.2 million) from RMB59.7 million in the same period of 2022. The
decrease was primarily due to the changes in technological
personnel cost and technology expenses in relation to platforms as
the Company's platforms matured.
LOSS FROM OPERATIONS
Loss from operations was RMB61.0
million (US$8.4 million),
compared to a loss from operations of RMB168.2 million in the same period of 2022.
Adjusted income from operations (non-GAAP)[1] was
RMB52.0 million (US$7.2 million), compared to an adjusted loss
from operations of RMB42.3 million in
the same period of 2022.
NET LOSS
Net loss was RMB64.8 million
(US$8.9 million), compared to a net
loss of RMB125.3 million in the same
period of 2022. Adjusted net income (non-GAAP)[1] was
RMB36.4 million (US$5.0 million), compared to adjusted net loss of
RMB13.2 million in the same period of
2022.
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE
Basic and diluted net loss per ordinary share were RMB0.40 (US$0.05),
compared to RMB0.78 in the same
period of 2022.
Adjusted basic and diluted net income per ordinary share
(non-GAAP)[1] were RMB0.22
(US$0.03), compared to negative
RMB0.08 in the same period of
2022.
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 RMB2,543.1 million
(US$350.7 million) as of June 30, 2023, as compared to RMB2,802.1 million as of December 31, 2022.
Business Outlook
For the third quarter of 2023, the Company currently expects its
total revenues to be between RMB3,150.0
million and RMB3,250.0
million. This forecast only reflects the Company's current
and preliminary views on the market and operational conditions,
which are subject to change.
Recent Development
On December 9, 2022, ATRenew
announced an extension of the Company's existing share repurchase
program under which the Company may repurchase up to US$100 million of its shares for another
twelve-month period starting from December
28, 2022, with all other terms unchanged. During the second
quarter of 2023, the Company repurchased 2,289,309 American
depositary shares ("ADSs") in the open market at an average price
of US$2.81 per ADS, with a total cash
consideration of US$6.4 million. As
of June 30, 2023, the Company had
repurchased a total of 12,264,772 ADSs for approximately
US$44.4 million under this share
repurchase program.
On June 20, 2023, ATRenew released
its third annual environmental, social, and governance ("ESG")
report, highlighting its key achievements in these three areas.
On the environmental front, greenhouse gas emission intensity
associated with the purchase of electricity (scope 2) has continued
to decrease, following the downward trend from when the Company
first disclosed this metric in its 2020 ESG report. In 2022,
ATRenew oversaw the responsible recycling and green disposal of
approximately 270,000 units of electronic devices, reducing
e-wastes by 43.2 tons. The Company also reused 18 tons of packaging
fillers for B2B businesses and 36,000 cardboard boxes for B2C
businesses. In terms of social responsibility, the Company obtained
ISO 9001 quality management system certification and donated a
cumulative amount of RMB1 million to
charity programs during the reporting period. Furthermore, it
remained committed to recruiting and training talents, and provided
themed training sessions to over 8,000 of PJT Marketplace's
merchants. In the corporate governance sphere, ATRenew made
significant strides in bolstering its risk and incident management
capabilities. ATRenew has also taken steps to enhance the diversity
of its board of directors, achieving a composition of 37.5%
independent directors and 25% female directors as of June 2023.
On June 30, 2023, AHS Recycle,
ATRenew's C2B recycling brand, debuted as a trade-in service
provider on Apple's official website and in its flagship stores in
mainland China, opening up the
back-end supply chain to Apple. By offering attractive recycling
prices for more brand partners' trade-in programs, AHS Recycle
helps them meet consumer demand for a seamless smartphone upgrade
experience.
Conference Call Information
The Company's management will hold a conference call on
Wednesday, August 23, 2023 at
08:00 A.M. Eastern Time (or
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:
|
|
9633225
|
The replay will be accessible through August 30, 2023 by dialing the following
numbers:
International:
|
|
1-412-317-0088
|
United States Toll
Free:
|
|
1-877-344-7529
|
Access Code:
|
|
4883084
|
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 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.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at specified rates solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB to
U.S. dollars are made at a rate of RMB7.2513 to US$1.00, the exchange rate set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve System as of June 30,
2023.
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 (loss) income and adjusted net
(loss) 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 U.S. GAAP.
Adjusted income from operations is loss from operations excluding
the impact of share-based compensation expenses and amortization of
intangible assets and deferred cost resulting from assets and
business acquisitions. Adjusted net (loss) income is net loss
excluding the impact of share-based compensation expenses and
amortization of intangible assets and deferred cost resulting from
assets and business acquisitions and tax effects of amortization of
intangible assets and deferred cost resulting from assets and
business acquisitions. Adjusted net (loss) income per ordinary
share is adjusted net (loss) income attributable to ordinary
shareholders divided by weighted average number of shares used in
calculating net loss per ordinary share.
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 (loss) 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 (loss) 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 U.S. GAAP
and are not presented in accordance with U.S. GAAP. The non-GAAP
financial measures have limitations as analytical tools. One of the
key limitations of using non-GAAP financial measures is that they
do not reflect all items of income and expense that affect the
Company's operations. The share-based compensation expenses,
amortization of intangible assets and deferred cost resulting from
assets and business acquisitions and tax effects of amortization of
intangible assets and deferred cost resulting from assets and
business acquisitions have been and may continue to be incurred in
the Company's business and is not reflected in the presentation of
non-GAAP financial measures. Further, the non-GAAP measures may
differ from the non-GAAP measures used by other companies,
including peer companies, potentially limiting the comparability of
their financial results to the Company's. In light of the foregoing
limitations, the non-GAAP financial measures for the period should
not be considered in isolation from or as an alternative to loss
from operations, net loss, and net loss attributable to ordinary
shareholders per share, or other financial measures prepared in
accordance with U.S. GAAP.
The Company compensates for these limitations by reconciling the
non-GAAP financial measures to the nearest U.S. GAAP performance
measures, which should be considered when evaluating the Company's
performance. For reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures,
please see the section of the accompanying tables titled,
"Reconciliations of GAAP and Non-GAAP Results."
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 Inc.
Investor Relations
Email: ir@atrenew.com
In the United States:
ICR LLC.
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 December 31,
|
|
|
As of June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
1,703,626
|
|
|
|
1,492,949
|
|
|
|
205,887
|
|
Restricted
cash
|
|
|
—
|
|
|
|
210,000
|
|
|
|
28,960
|
|
Short-term
investments
|
|
|
782,230
|
|
|
|
599,009
|
|
|
|
82,607
|
|
Amount due from related
parties, net
|
|
|
115,501
|
|
|
|
168,008
|
|
|
|
23,169
|
|
Inventories
|
|
|
433,467
|
|
|
|
735,407
|
|
|
|
101,417
|
|
Funds receivable from
third party payment service
providers
|
|
|
316,277
|
|
|
|
241,178
|
|
|
|
33,260
|
|
Prepayments and other
receivables, net
|
|
|
539,077
|
|
|
|
468,035
|
|
|
|
64,545
|
|
Total current assets
|
|
|
3,890,178
|
|
|
|
3,914,586
|
|
|
|
539,845
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
Amount due from related
parties, net, non-current
|
|
|
180,000
|
|
|
|
—
|
|
|
|
—
|
|
Long-term
investments
|
|
|
219,583
|
|
|
|
485,372
|
|
|
|
66,936
|
|
Property and equipment,
net
|
|
|
118,600
|
|
|
|
121,039
|
|
|
|
16,692
|
|
Intangible assets,
net
|
|
|
544,650
|
|
|
|
404,420
|
|
|
|
55,772
|
|
Other non-current
assets
|
|
|
95,744
|
|
|
|
82,496
|
|
|
|
11,377
|
|
Total non-current assets
|
|
|
1,158,577
|
|
|
|
1,093,327
|
|
|
|
150,777
|
|
TOTAL ASSETS
|
|
|
5,048,755
|
|
|
|
5,007,913
|
|
|
|
690,622
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
123,983
|
|
|
|
278,983
|
|
|
|
38,474
|
|
Accounts
payable
|
|
|
73,335
|
|
|
|
70,364
|
|
|
|
9,704
|
|
Contract
liabilities
|
|
|
195,369
|
|
|
|
257,670
|
|
|
|
35,534
|
|
Accrued expenses and
other current liabilities
|
|
|
449,489
|
|
|
|
320,933
|
|
|
|
44,259
|
|
Accrued payroll and
welfare
|
|
|
132,468
|
|
|
|
119,171
|
|
|
|
16,434
|
|
Amount due to related
parties
|
|
|
47,604
|
|
|
|
73,647
|
|
|
|
10,156
|
|
Total current liabilities
|
|
|
1,022,248
|
|
|
|
1,120,768
|
|
|
|
154,561
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
Operating lease
liabilities, non-current
|
|
|
33,523
|
|
|
|
17,857
|
|
|
|
2,463
|
|
Deferred tax
liabilities
|
|
|
111,312
|
|
|
|
87,753
|
|
|
|
12,102
|
|
Total non-current liabilities
|
|
|
144,835
|
|
|
|
105,610
|
|
|
|
14,565
|
|
TOTAL LIABILITIES
|
|
|
1,167,083
|
|
|
|
1,226,378
|
|
|
|
169,126
|
|
TOTAL SHAREHOLDERS' EQUITY
|
|
|
3,881,672
|
|
|
|
3,781,535
|
|
|
|
521,496
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
5,048,755
|
|
|
|
5,007,913
|
|
|
|
690,622
|
|
ATRENEW INC.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
|
(Amounts in
thousands, except share and per share and otherwise
noted)
|
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
Net revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net product
revenues
|
|
|
1,854,133
|
|
|
|
2,636,676
|
|
|
|
363,614
|
|
|
|
3,763,065
|
|
|
|
5,211,854
|
|
|
|
718,748
|
|
Net service
revenues
|
|
|
291,586
|
|
|
|
326,983
|
|
|
|
45,093
|
|
|
|
589,158
|
|
|
|
623,599
|
|
|
|
85,998
|
|
Operating (expenses) income
(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandise
costs
|
|
|
(1,653,834)
|
|
|
|
(2,325,763)
|
|
|
|
(320,737)
|
|
|
|
(3,293,856)
|
|
|
|
(4,577,884)
|
|
|
|
(631,319)
|
|
Fulfillment
expenses
|
|
|
(275,201)
|
|
|
|
(268,823)
|
|
|
|
(37,072)
|
|
|
|
(571,421)
|
|
|
|
(535,209)
|
|
|
|
(73,809)
|
|
Selling and marketing
expenses
|
|
|
(293,405)
|
|
|
|
(335,303)
|
|
|
|
(46,240)
|
|
|
|
(601,199)
|
|
|
|
(634,344)
|
|
|
|
(87,480)
|
|
General and
administrative expenses
|
|
|
(45,227)
|
|
|
|
(57,528)
|
|
|
|
(7,933)
|
|
|
|
(90,185)
|
|
|
|
(133,968)
|
|
|
|
(18,475)
|
|
Technology and content
expenses
|
|
|
(59,726)
|
|
|
|
(45,042)
|
|
|
|
(6,212)
|
|
|
|
(123,265)
|
|
|
|
(92,475)
|
|
|
|
(12,753)
|
|
Other operating income,
net
|
|
|
13,447
|
|
|
|
7,836
|
|
|
|
1,081
|
|
|
|
24,688
|
|
|
|
9,872
|
|
|
|
1,361
|
|
Loss from operations
|
|
|
(168,227)
|
|
|
|
(60,964)
|
|
|
|
(8,406)
|
|
|
|
(303,015)
|
|
|
|
(128,555)
|
|
|
|
(17,729)
|
|
Interest
expense
|
|
|
(2,516)
|
|
|
|
(2,501)
|
|
|
|
(345)
|
|
|
|
(3,519)
|
|
|
|
(3,312)
|
|
|
|
(457)
|
|
Interest
income
|
|
|
2,053
|
|
|
|
5,623
|
|
|
|
775
|
|
|
|
3,777
|
|
|
|
13,575
|
|
|
|
1,872
|
|
Other income (loss),
net
|
|
|
32,739
|
|
|
|
(1,721)
|
|
|
|
(237)
|
|
|
|
(5,884)
|
|
|
|
(2,291)
|
|
|
|
(316)
|
|
Loss before income taxes and share of loss in
equity method investments
|
|
|
(135,951)
|
|
|
|
(59,563)
|
|
|
|
(8,213)
|
|
|
|
(308,641)
|
|
|
|
(120,583)
|
|
|
|
(16,630)
|
|
Income tax
benefits
|
|
|
13,876
|
|
|
|
11,700
|
|
|
|
1,614
|
|
|
|
26,989
|
|
|
|
23,560
|
|
|
|
3,249
|
|
Share of loss in equity
method investments
|
|
|
(3,175)
|
|
|
|
(16,978)
|
|
|
|
(2,341)
|
|
|
|
(4,950)
|
|
|
|
(17,817)
|
|
|
|
(2,457)
|
|
Net loss
|
|
|
(125,250)
|
|
|
|
(64,841)
|
|
|
|
(8,940)
|
|
|
|
(286,602)
|
|
|
|
(114,840)
|
|
|
|
(15,838)
|
|
Net loss per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.78)
|
|
|
|
(0.40)
|
|
|
|
(0.05)
|
|
|
|
(1.78)
|
|
|
|
(0.71)
|
|
|
|
(0.10)
|
|
Diluted
|
|
|
(0.78)
|
|
|
|
(0.40)
|
|
|
|
(0.05)
|
|
|
|
(1.78)
|
|
|
|
(0.71)
|
|
|
|
(0.10)
|
|
Weighted average number of shares used in
calculating net loss per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
161,498,812
|
|
|
|
162,923,637
|
|
|
|
162,923,637
|
|
|
|
161,374,917
|
|
|
|
162,541,334
|
|
|
|
162,541,334
|
|
Diluted
|
|
|
161,498,812
|
|
|
|
162,923,637
|
|
|
|
162,923,637
|
|
|
|
161,374,917
|
|
|
|
162,541,334
|
|
|
|
162,541,334
|
|
Net loss
|
|
|
(125,250)
|
|
|
|
(64,841)
|
|
|
|
(8,940)
|
|
|
|
(286,602)
|
|
|
|
(114,840)
|
|
|
|
(15,838)
|
|
Foreign currency
translation adjustments
|
|
|
(10,885)
|
|
|
|
32,103
|
|
|
|
4,427
|
|
|
|
(10,386)
|
|
|
|
21,573
|
|
|
|
2,975
|
|
Total comprehensive loss
|
|
|
(136,135)
|
|
|
|
(32,738)
|
|
|
|
(4,513)
|
|
|
|
(296,988)
|
|
|
|
(93,267)
|
|
|
|
(12,863)
|
|
ATRENEW INC.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND
COMPREHENSIVE LOSS (CONTINUED)
|
(Amounts in
thousands, except share and per share and otherwise
noted)
|
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
(1) Includes share-based compensation
expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfillment
expenses
|
|
|
(7,518)
|
|
|
|
(7,041)
|
|
|
|
(971)
|
|
|
|
(22,281)
|
|
|
|
(12,548)
|
|
|
|
(1,730)
|
|
Selling and marketing
expenses
|
|
|
(4,147)
|
|
|
|
(4,297)
|
|
|
|
(593)
|
|
|
|
(19,553)
|
|
|
|
(8,101)
|
|
|
|
(1,117)
|
|
General and
administrative expenses
|
|
|
(16,401)
|
|
|
|
(17,944)
|
|
|
|
(2,475)
|
|
|
|
(32,984)
|
|
|
|
(36,943)
|
|
|
|
(5,095)
|
|
Technology and content
expenses
|
|
|
(5,170)
|
|
|
|
(5,745)
|
|
|
|
(792)
|
|
|
|
(9,729)
|
|
|
|
(10,431)
|
|
|
|
(1,439)
|
|
(2) Includes amortization of intangible assets
and deferred cost resulting from assets and
business acquisitions as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(91,126)
|
|
|
|
(77,430)
|
|
|
|
(10,678)
|
|
|
|
(176,881)
|
|
|
|
(155,925)
|
|
|
|
(21,503)
|
|
Technology and content
expenses
|
|
|
(1,580)
|
|
|
|
(482)
|
|
|
|
(66)
|
|
|
|
(3,160)
|
|
|
|
(964)
|
|
|
|
(133)
|
|
Reconciliations of GAAP and Non-GAAP
Results
|
(Amounts in
thousands, except share and per share and otherwise
noted)
|
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
Loss from operations
|
|
|
(168,227)
|
|
|
|
(60,964)
|
|
|
|
(8,406)
|
|
|
|
(303,015)
|
|
|
|
(128,555)
|
|
|
|
(17,729)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
expenses
|
|
|
33,236
|
|
|
|
35,027
|
|
|
|
4,831
|
|
|
|
84,547
|
|
|
|
68,023
|
|
|
|
9,381
|
|
Amortization of
intangible assets
and deferred cost resulting from
assets and business acquisitions
|
|
|
92,706
|
|
|
|
77,912
|
|
|
|
10,744
|
|
|
|
180,041
|
|
|
|
156,889
|
|
|
|
21,636
|
|
Adjusted (loss) income from
operations (non-GAAP)
|
|
|
(42,285)
|
|
|
|
51,975
|
|
|
|
7,169
|
|
|
|
(38,427)
|
|
|
|
96,357
|
|
|
|
13,288
|
|
Net loss
|
|
|
(125,250)
|
|
|
|
(64,841)
|
|
|
|
(8,940)
|
|
|
|
(286,602)
|
|
|
|
(114,840)
|
|
|
|
(15,838)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
expenses
|
|
|
33,236
|
|
|
|
35,027
|
|
|
|
4,831
|
|
|
|
84,547
|
|
|
|
68,023
|
|
|
|
9,381
|
|
Amortization of
intangible assets
and deferred cost resulting from
assets and business acquisitions
|
|
|
92,706
|
|
|
|
77,912
|
|
|
|
10,744
|
|
|
|
180,041
|
|
|
|
156,889
|
|
|
|
21,636
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effects of
amortization of
intangible assets and deferred cost
resulting from assets and business
acquisitions
|
|
|
(13,876)
|
|
|
|
(11,700)
|
|
|
|
(1,614)
|
|
|
|
(26,989)
|
|
|
|
(23,560)
|
|
|
|
(3,249)
|
|
Adjusted net (loss) income (non-
GAAP)
|
|
|
(13,184)
|
|
|
|
36,398
|
|
|
|
5,021
|
|
|
|
(49,003)
|
|
|
|
86,512
|
|
|
|
11,930
|
|
Adjusted net (loss) income per
ordinary share (non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.08)
|
|
|
|
0.22
|
|
|
|
0.03
|
|
|
|
(0.30)
|
|
|
|
0.53
|
|
|
|
0.07
|
|
Diluted
|
|
|
(0.08)
|
|
|
|
0.22
|
|
|
|
0.03
|
|
|
|
(0.30)
|
|
|
|
0.51
|
|
|
|
0.07
|
|
Weighted average number of
shares used in calculating net loss
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
161,498,812
|
|
|
|
162,923,637
|
|
|
|
162,923,637
|
|
|
|
161,374,917
|
|
|
|
162,541,334
|
|
|
|
162,541,334
|
|
Diluted
|
|
|
161,498,812
|
|
|
|
168,037,389
|
|
|
|
168,037,389
|
|
|
|
161,374,917
|
|
|
|
168,910,942
|
|
|
|
168,910,942
|
|
View original
content:https://www.prnewswire.com/news-releases/atrenew-inc-reports-unaudited-second-quarter-2023-financial-results-301907753.html
SOURCE ATRenew Inc.