In the second quarter of 2022, despite the impact of the Covid-19, ARTenew maintained growth in key performance metrics such as revenue and GMV.
ATRenew (Chinese: 万物新生，NYSE: RERE), a trading and service platform for used consumer electronics, released its Q2 2022 results report on Aug. 24.
According to the report, total revenue for the second quarter was CNY 2.15 billion (USD 313 million), up 14.9% year over year. The revenue growth rate of ARTenew decreased to 14.9% from 56.2% in the same period last year, which is caused by the weak consumption of communication equipment.
Correspondingly, the GMV was CNY 8.6 billion, up only 10.3% year on year, a significant slowdown in growth. From the second quarter of last year to the first quarter of this year, the year-on-year GMV growth rate of ARTenew was 69.6%, 56.6%, 50.7% and 51.6% respectively. The number of consumer goods traded by ARTenew in the second quarter of this year was 7.8 million pieces, the same as the same period last year.
On the one hand, ARTenew's offline stores continued to expand in the second quarter, with a total of 1,629 stores in 241 cities nationwide by the end of June, an increase of 183 stores compared to the end of the previous quarter. The new stores enable the self-operated business to reach more offline locations.
On the other hand, the above changes are related to the multi-category recycling business piloted by ARTenew. Since the second quarter, in addition to the cell phone 3C recycling business, ARTenew has also added high-value goods recycling services such as used luxury goods and video equipment to more than 30 stores in Beijing and Shanghai, in order to reuse store capacity without additional investment.
Chen Xuefeng, founder, chairman and CEO of ARTenew, has previously said that macro uncertainties still exist in the short term, and ARTenew will prioritize operational efficiency, prudent expansion and more planned use of funds. For the third quarter of 2022, ARTenew expects total revenue to be between USD 2.5 billion and USD 2.55 billion.
This company's competitors include Huishoubao, Xianyu, and Zhuanzhuan.
As of press time, it closed at USD 3.410 apiece, with a market cap of USD 772 million.