Consumer Discretionary Author：EqualOcean News , Xiangru Chen Editor：Tao Ni Mar 16, 2022 12:18 AM (GMT+8)

As the first US-listed ESG Chinese stock, ATRenew has achieved continuous revenue growth in the past years with soaring GMV and a refined business model

Aihuishou

ATRenew Inc (AiHuiShou) (NYSE: RERE), China's largest consumer-to-business (C2B) platform for secondhand consumer electronics, saw its total net revenue spike to CNY 2,435.8 million (USD 382.2 million) in its Q4 2021 financial report, up 48.2% YoY, thanks to a YoY 50.7% jump in GMV.

This continued revenue growth earned the company a non-GAAP operating profit of RMB 9.7 million, exemplifying its monetization capabilities and efficacy. However, its operating loss more than doubled during the same period from CNY 59.1 million in Q4 2020 to CNY 125.9 million (USD 19.8 million) 

Since its inception in 2011, ATRenew, headquartered in Shanghai, has been on a mission to give a new lease on life toidle electronic goods. It aims to alleviate the environmental impact of pre-owned consumer electronics by facilitating recycling and trade-in services and distributing the devices to prolong their lifecycle. 

After 10 years of development, it now has four major business segments, realizing a C2B + B2B + B2C closed-loop value chain: C2B recycling platform (AiHuiShou), B2B trading platform (PJT Marketplace), B2C retail platform (Paipai Marketplace), as well as its overseas business (AHS Recycle). 

On the supply side, offline stores operated by AiHuiShou and its financial backer JD.com (NASDAQ: JD) recycle pre-owned consumer electronics. It has set up seven regional operation centers and 23 city-level operation stations in China for proprietary inspection, grading, and pricing.

In terms of sales, the PJT Marketplace can accelerate the move of products (shortening the process by three times), while the B2C platform can make the products go directly to consumers to improve the profit margin.

In Q4 2021, the net product revenue increased by 43.9% to CNY 2,076.0 million (USD 325.8 million) from CNY 1,442.3 million in Q4 2020. The growth was primarily attributable to an increase in the sourcing volume and the corresponding sales of pre-owned consumer electronics through PJT Marketplace and Paipai Marketplace.

In line with the growth in product revenue, merchandise costs grew by 45.6% to CNY 1,800.5 million (USD282.5 million) from CNY 1,236.5 million in Q4 2020.

ATRenew’s net service revenue amounted to CNY 359.9 million (USD 56.5 million) from CNY 201.8 million in Q4 2020, up 78.3% YoY, primarily due to the increases in transaction volume on PJT Marketplace and Paipai Marketplace and an increase in the average commission rate.

"Looking ahead, we aim to empower consumers and merchant users for the mutual benefit of all our stakeholders and shareholders," said Kerry Xuefeng Chen, the Founder, Chairman and CEO of ATRenew. "By leveraging our well-established position in China's circular economy. We will continue to drive steady improvements in our user experience and our profitability."

For Q1 2022, the company expects its total revenue to be between CNY 2,150.0 million and CNY 2,200.0 million.