SHANGHAI, Aug. 24,
2022 /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, 2022.
Second Quarter 2022 Highlights
- Total net revenues grew by 14.9% to RMB2,145.7 million (US$320.3 million) from RMB1,867.7 million in the second quarter of
2021.
- Loss from operations was RMB168.2
million (US$25.1 million),
compared to RMB507.3 million in the
second quarter of 2021. Adjusted loss from operations
(non-GAAP)[1] was RMB42.3 million (US$6.3
million) compared to an adjusted loss from operations of
RMB51.0 million in the second quarter
of 2021.
- Total Gross Merchandise Volume
("GMV[2]") increased by 10.3% to
RMB8.6 billion from RMB7.8 billion in the second quarter of 2021.
GMV for product sales increased by 15.8% to RMB2.2 billion from RMB1.9
billion in the second quarter of 2021. GMV for online
marketplaces increased by 8.5% to RMB6.4
billion from RMB5.9 billion in
the second quarter of 2021.
- Number of consumer products transacted[3]
remained flat at 7.8 million compared to the second quarter of
2021.
[1] See
"Reconciliations of GAAP and Non-GAAP Results" for more
information.
|
[2] "GMV" represents
the total dollar value of goods distributed to merchants and
consumers through transactions on the Company's platform in a given
period for which payments have been made, prior to returns and
cancellations, excluding shipping cost but including sales
tax.
|
[3] "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.
|
Mr. Kerry Xuefeng Chen, the
Founder, Chairman, and Chief Executive Officer of ATRenew,
commented, "Despite the challenges posed by the COVID-19
resurgence, our quarterly revenue surpassed the guidance we
provided, as our team proactively adjusted our operations to adapt
to changes. Although our business is facing short-term headwinds
from the pandemic, we firmly believe that the demand for electronic
device recycling, trade-in, and other value-added services will
grow concurrently with the long-term development of the circular
economy in China. Going forward,
we will continue to focus on executing our city-level integration
strategy while constantly increasing the penetration of our
recycling offerings. At the same time, we will maintain our
investment in automation to improve cost efficiency. Furthermore,
we will increase strategic investment in category expansion and
corresponding capabilities while continuing to provide consumers
with more diverse and convenient recycling services."
Mr. Rex Chen, the Chief Financial
Officer of ATRenew, added, "The pandemic has disrupted domestic
consumption and adversely impacted our self-operated store business
as well as marketplace transactions. Facing such challenges, we
responded nimbly by adjusting our operating strategy and
implementing cost control measures. As a result, our losses
narrowed compared with the same period of last year. Since June,
when cities including Shanghai and
Beijing resumed normal production
and daily life, our self-operated recycling and trade-in businesses
went on a visible path to recovery. In addition, as of June 30, 2022, we have sufficient cash reserves
to support our business in the face of a dynamic operating
environment. Looking ahead, we plan to tap into new categories and
further generate synergies from our city-level integration
strategy. We look forward to expanding our market share and
delivering long-term value to shareholders and society."
Second Quarter 2022 Financial Results
REVENUE
Total net revenues increased by 14.9% to RMB2,145.7 million (US$320.3 million) from RMB1,867.7 million in the same period of
2021.
- Net product revenues increased by 15.6% to RMB1,854.1 million (US$276.8 million) from RMB1,603.4 million in the same period of 2021.
The increase was primarily attributable to an increase in the
sourcing volume and the corresponding sales of pre-owned consumer
electronics through Paipai Marketplace and the Company's overseas
channels.
- Net service revenues increased by 10.3% to RMB291.6 million (US$43.5
million) from RMB264.3 million
in the same period of 2021. The increase was primarily due to the
increases in transaction volume and monetization capability of PJT
Marketplace.
OPERATING COSTS AND EXPENSES
Operating costs and expenses decreased by 2.2% to RMB2,327.4 million (US$347.5 million) from RMB2,379.4 million in the same period of
2021.
- Merchandise costs increased by 18.5% to RMB1,653.8 million (US$246.9 million) from RMB1,395.4 million in the same period of 2021.
The increase was primarily due to the growth in product sales.
- Fulfillment expenses decreased by 0.1% to RMB275.2 million (US$41.1
million) from RMB275.5 million
in the same period of 2021. The decrease was primarily due to the
decrease of share-based compensation expenses as the Company
recognized more expenses with IPO condition in the same period of
last year which was offset by the increases in operation center
related expenses and personnel cost which were in line with the
Company's business growth.
- Selling and marketing expenses decreased by 7.2% to
RMB293.4 million (US$43.8 million) from RMB316.3 million in the same period of 2021. The
decrease was primarily due to (i) a decrease in sales promotion and
coupon expenses as a cost control measure during the resurgence of
the COVID-19 variants; and (ii) the decrease of share-based
compensation expenses as the Company recognized more expenses with
IPO condition in the same period of last year.
- General and administrative expenses decreased by 85.4% to
RMB45.2 million (US$6.8 million) from RMB310.3 million in the same period of 2021. The
decrease was primarily due to the decrease of share-based
compensation expenses as the Company recognized more expenses
resulting from share-based awards granted with an IPO condition in
the second quarter of 2021.
- Technology and content expenses decreased by 27.1% to
RMB59.7 million (US$8.9 million) from RMB81.9 million in the same period of 2021. The
decrease was primarily due to the decrease in the recognition of
share-based compensation expenses resulting from options granted to
employees with an IPO condition compared to the second quarter of
2021.
LOSS FROM OPERATIONS
Loss from operations decreased by 66.8% to RMB168.2 million (US$25.1
million) from RMB507.3 million
in the same period of 2021. Adjusted loss from operations
(non-GAAP), excluding amortization of intangible assets and
deferred cost resulting from assets and business acquisitions and
recognition of share-based compensation expenses resulting from
options and restricted stock units granted to employees, decreased
by 17.1% to RMB42.3 million
(US$6.3 million) from RMB51.0 million in the same period of 2021.
NET LOSS
Net loss was RMB125.3 million
(US$18.7 million), compared to
RMB505.7 million in the same period
of 2021. Adjusted net loss (non-GAAP)[1] was RMB13.2
million (US$2.0 million),
compared to RMB59.7 million in the
same period of 2021.
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE
Basic and diluted net loss per ordinary share were RMB0.78 (US$0.12),
compared to RMB13.47 in the same
period of 2021.
Adjusted basic and diluted net loss per ordinary share
(non-GAAP)[1] were
RMB0.08 (US$0.01), compared to RMB1.59 in the same period of 2021.
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 increased to RMB2,594.1
million (US$387.3 million) as
of June 30, 2022, from RMB2,421.9 million as of December 31, 2021.
Business Outlook
For the third quarter of 2022, the Company currently expects its
total revenues to be between RMB2,500.0
million and RMB2,550.0
million. This forecast only reflects the Company's current
and preliminary views on the market and operational conditions,
which are subject to change.
Environment, Social, and Governance
On June 9, 2022, ATRenew published
its second annual environmental, social, and governance ("ESG")
report (the "Report") incorporating the Task Force on
Climate-related Financial Disclosures recommendations, a framework
set by the G20's Financial Stability Board, for the first time. In
the Report, the Company explores the climate-change-related
opportunities and challenges it faces in its operation and reuse of
pre-owned electronic devices through the perspectives of
governance, strategy, risk management, and metrics and targets.
In order to help quantify its commitment to ESG, the Company has
leveraged the Circular Footprint Formula for the first time to
disclose its contribution of 464,000 metric tons of green-house gas
emission reductions through reusing pre-owned mobile phones in
2021.
Recent Development
On December 28, 2021, ATRenew
announced a share repurchase program, effective immediately, to
repurchase up to US$100 million of
its shares over a twelve-month period. During the second quarter
2022, the Company repurchased 2,881,811 American depositary shares
("ADSs") in the open market at an average price of US$3.14 per ADS, with a total cash consideration
of US$9.0 million. As at the end of
the second quarter 2022, the Company repurchased a total of
7,635,651 ADSs for approximately US$31.5
million under its share repurchase program.
Conference Call Information
The Company's management will hold a conference call on
Wednesday, August 24, 2022, at
08:00 A.M. Eastern Time (or
08:00 P.M. Beijing Time on
Wednesday, August 24, 2022) 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:
|
|
7639205
|
The replay will be accessible through August 31, 2022, by dialing the following
numbers:
International:
|
|
1-412-317-0088
|
United States Toll
Free:
|
|
1-877-344-7529
|
Access Code:
|
|
6668246
|
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 RMB6.6981 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,
2022.
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
loss from operations, adjusted net loss and adjusted net loss 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 loss
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 is net loss excluding the impact of
share-based compensation expenses, amortization of intangible
assets and deferred cost resulting from assets and business
acquisitions, fair value change in warrant liabilities and tax
effects of amortization of intangible assets and deferred cost
resulting from assets and business acquisitions. Adjusted net loss
per ordinary share is adjusted net loss 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 loss from operations and
adjusted net loss 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 loss from
operations and adjusted net loss 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. Share-based compensation expenses,
amortization of intangible assets and deferred cost resulting from
assets and business acquisitions, fair value change in warrant
liabilities 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
provide 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,
|
|
|
|
2021
|
|
|
2022
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
1,356,342
|
|
|
|
1,215,953
|
|
|
|
181,537
|
|
Restricted
cash
|
|
|
150,000
|
|
|
|
—
|
|
|
|
—
|
|
Short-term
investments
|
|
|
510,467
|
|
|
|
1,030,682
|
|
|
|
153,877
|
|
Amount due from related
parties, net
|
|
|
410,088
|
|
|
|
139,043
|
|
|
|
20,759
|
|
Inventories
|
|
|
478,751
|
|
|
|
673,444
|
|
|
|
100,543
|
|
Funds receivable from
third party payment service providers
|
|
|
405,095
|
|
|
|
347,468
|
|
|
|
51,876
|
|
Prepayments and other
receivables, net
|
|
|
840,102
|
|
|
|
697,237
|
|
|
|
104,095
|
|
Total current assets
|
|
|
4,150,845
|
|
|
|
4,103,827
|
|
|
|
612,687
|
|
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
investments
|
|
|
241,527
|
|
|
|
234,457
|
|
|
|
35,004
|
|
Property and equipment,
net
|
|
|
103,843
|
|
|
|
115,467
|
|
|
|
17,239
|
|
Intangible assets,
net
|
|
|
1,075,811
|
|
|
|
913,693
|
|
|
|
136,411
|
|
Goodwill
|
|
|
1,803,415
|
|
|
|
1,819,926
|
|
|
|
271,708
|
|
Other non-current
assets
|
|
|
127,321
|
|
|
|
91,234
|
|
|
|
13,619
|
|
Total non-current assets
|
|
|
3,351,917
|
|
|
|
3,174,777
|
|
|
|
473,981
|
|
TOTAL ASSETS
|
|
|
7,502,762
|
|
|
|
7,278,604
|
|
|
|
1,086,668
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
94,999
|
|
|
|
146,370
|
|
|
|
21,852
|
|
Accounts
payable
|
|
|
41,311
|
|
|
|
66,894
|
|
|
|
9,987
|
|
Contract
liabilities
|
|
|
211,964
|
|
|
|
304,867
|
|
|
|
45,516
|
|
Accrued expenses and
other current liabilities
|
|
|
296,627
|
|
|
|
387,508
|
|
|
|
57,853
|
|
Accrued payroll and
welfare
|
|
|
105,787
|
|
|
|
79,654
|
|
|
|
11,892
|
|
Amount due to related
parties
|
|
|
73,976
|
|
|
|
53,440
|
|
|
|
7,978
|
|
Total current liabilities
|
|
|
824,664
|
|
|
|
1,038,733
|
|
|
|
155,078
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
liabilities, non-current
|
|
|
34,501
|
|
|
|
37,109
|
|
|
|
5,540
|
|
Deferred tax
liabilities
|
|
|
223,138
|
|
|
|
196,106
|
|
|
|
29,278
|
|
Total non-current liabilities
|
|
|
257,639
|
|
|
|
233,215
|
|
|
|
34,818
|
|
TOTAL LIABILITIES
|
|
|
1,082,303
|
|
|
|
1,271,948
|
|
|
|
189,896
|
|
TOTAL SHAREHOLDERS' EQUITY
|
|
|
6,420,459
|
|
|
|
6,006,656
|
|
|
|
896,772
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
7,502,762
|
|
|
|
7,278,604
|
|
|
|
1,086,668
|
|
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,
|
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
Net revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net product
revenues
|
|
|
1,603,419
|
|
|
|
1,854,133
|
|
|
|
276,815
|
|
|
|
2,913,966
|
|
|
|
3,763,065
|
|
|
|
561,811
|
|
Net service
revenues
|
|
|
264,297
|
|
|
|
291,586
|
|
|
|
43,533
|
|
|
|
468,181
|
|
|
|
589,158
|
|
|
|
87,959
|
|
Operating expenses
(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandise
costs
|
|
|
(1,395,358)
|
|
|
|
(1,653,834)
|
|
|
|
(246,911)
|
|
|
|
(2,491,054)
|
|
|
|
(3,293,856)
|
|
|
|
(491,760)
|
|
Fulfillment
expenses
|
|
|
(275,525)
|
|
|
|
(275,201)
|
|
|
|
(41,086)
|
|
|
|
(498,544)
|
|
|
|
(571,421)
|
|
|
|
(85,311)
|
|
Selling and marketing
expenses
|
|
|
(316,295)
|
|
|
|
(293,405)
|
|
|
|
(43,804)
|
|
|
|
(538,875)
|
|
|
|
(601,199)
|
|
|
|
(89,757)
|
|
General and
administrative expenses
|
|
|
(310,280)
|
|
|
|
(45,227)
|
|
|
|
(6,752)
|
|
|
|
(339,688)
|
|
|
|
(90,185)
|
|
|
|
(13,464)
|
|
Technology and content
expenses
|
|
|
(81,903)
|
|
|
|
(59,726)
|
|
|
|
(8,917)
|
|
|
|
(137,402)
|
|
|
|
(123,265)
|
|
|
|
(18,403)
|
|
Total operating expenses
|
|
|
(2,379,361)
|
|
|
|
(2,327,393)
|
|
|
|
(347,470)
|
|
|
|
(4,005,563)
|
|
|
|
(4,679,926)
|
|
|
|
(698,695)
|
|
Other operating income,
net
|
|
|
4,369
|
|
|
|
13,447
|
|
|
|
2,008
|
|
|
|
4,730
|
|
|
|
24,688
|
|
|
|
3,686
|
|
Loss from operations
|
|
|
(507,276)
|
|
|
|
(168,227)
|
|
|
|
(25,114)
|
|
|
|
(618,686)
|
|
|
|
(303,015)
|
|
|
|
(45,239)
|
|
Interest
expense
|
|
|
(5,513)
|
|
|
|
(2,516)
|
|
|
|
(376)
|
|
|
|
(12,065)
|
|
|
|
(3,519)
|
|
|
|
(525)
|
|
Interest
income
|
|
|
1,013
|
|
|
|
2,053
|
|
|
|
307
|
|
|
|
4,433
|
|
|
|
3,777
|
|
|
|
564
|
|
Fair value change in
warrant liabilities
|
|
|
(9,242)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,242)
|
|
|
|
—
|
|
|
|
—
|
|
Other (loss) income,
net
|
|
|
(4,862)
|
|
|
|
32,739
|
|
|
|
4,888
|
|
|
|
(3,948)
|
|
|
|
(5,884)
|
|
|
|
(878)
|
|
Loss before income taxes
|
|
|
(525,880)
|
|
|
|
(135,951)
|
|
|
|
(20,295)
|
|
|
|
(639,508)
|
|
|
|
(308,641)
|
|
|
|
(46,078)
|
|
Income tax
benefits
|
|
|
19,460
|
|
|
|
13,876
|
|
|
|
2,072
|
|
|
|
38,919
|
|
|
|
26,989
|
|
|
|
4,029
|
|
Share of gain (loss) in
equity method investments
|
|
|
735
|
|
|
|
(3,175)
|
|
|
|
(474)
|
|
|
|
123
|
|
|
|
(4,950)
|
|
|
|
(739)
|
|
Net loss
|
|
|
(505,685)
|
|
|
|
(125,250)
|
|
|
|
(18,697)
|
|
|
|
(600,466)
|
|
|
|
(286,602)
|
|
|
|
(42,788)
|
|
Accretion of
convertible redeemable preferred shares
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(508,627)
|
|
|
|
—
|
|
|
|
—
|
|
Net loss attributable to ordinary
shareholders of the Company
|
|
|
(505,685)
|
|
|
|
(125,250)
|
|
|
|
(18,697)
|
|
|
|
(1,109,093)
|
|
|
|
(286,602)
|
|
|
|
(42,788)
|
|
Net loss per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(13.47)
|
|
|
|
(0.78)
|
|
|
|
(0.12)
|
|
|
|
(39.30)
|
|
|
|
(1.78)
|
|
|
|
(0.27)
|
|
Diluted
|
|
|
(13.47)
|
|
|
|
(0.78)
|
|
|
|
(0.12)
|
|
|
|
(39.30)
|
|
|
|
(1.78)
|
|
|
|
(0.27)
|
|
Weighted average number of shares
used in calculating net loss per ordinary
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
37,552,443
|
|
|
|
161,498,812
|
|
|
|
161,498,812
|
|
|
|
28,219,382
|
|
|
|
161,374,917
|
|
|
|
161,374,917
|
|
Diluted
|
|
|
37,552,443
|
|
|
|
161,498,812
|
|
|
|
161,498,812
|
|
|
|
28,219,382
|
|
|
|
161,374,917
|
|
|
|
161,374,917
|
|
Net loss
|
|
|
(505,685)
|
|
|
|
(125,250)
|
|
|
|
(18,697)
|
|
|
|
(600,466)
|
|
|
|
(286,602)
|
|
|
|
(42,788)
|
|
Foreign currency
translation adjustments
|
|
|
2,427
|
|
|
|
(10,885)
|
|
|
|
(1,625)
|
|
|
|
2,152
|
|
|
|
(10,386)
|
|
|
|
(1,551)
|
|
Total comprehensive loss
|
|
|
(503,258)
|
|
|
|
(136,135)
|
|
|
|
(20,322)
|
|
|
|
(598,314)
|
|
|
|
(296,988)
|
|
|
|
(44,339)
|
|
Accretion of
convertible redeemable preferred shares
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(508,627)
|
|
|
|
—
|
|
|
|
—
|
|
Total comprehensive loss attributable to
ordinary shareholders
|
|
|
(503,258)
|
|
|
|
(136,135)
|
|
|
|
(20,322)
|
|
|
|
(1,106,941)
|
|
|
|
(296,988)
|
|
|
|
(44,339)
|
|
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,
|
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
(1) Includes share-based compensation expenses as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfillment
expenses
|
|
|
(42,491)
|
|
|
|
(7,518)
|
|
|
|
(1,122)
|
|
|
|
(42,491)
|
|
|
|
(22,281)
|
|
|
|
(3,326)
|
|
Selling and marketing
expenses
|
|
|
(26,264)
|
|
|
|
(4,147)
|
|
|
|
(619)
|
|
|
|
(26,264)
|
|
|
|
(19,553)
|
|
|
|
(2,919)
|
|
General and
administrative expenses
|
|
|
(282,070)
|
|
|
|
(16,401)
|
|
|
|
(2,449)
|
|
|
|
(282,070)
|
|
|
|
(32,984)
|
|
|
|
(4,924)
|
|
Technology and content
expenses
|
|
|
(27,580)
|
|
|
|
(5,170)
|
|
|
|
(772)
|
|
|
|
(27,580)
|
|
|
|
(9,729)
|
|
|
|
(1,453)
|
|
(2) Includes amortization of intangible assets and
deferred cost resulting
from assets and business acquisitions as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(76,258)
|
|
|
|
(91,126)
|
|
|
|
(13,605)
|
|
|
|
(152,517)
|
|
|
|
(176,881)
|
|
|
|
(26,407)
|
|
Technology and content
expenses
|
|
|
(1,580)
|
|
|
|
(1,580)
|
|
|
|
(236)
|
|
|
|
(3,160)
|
|
|
|
(3,160)
|
|
|
|
(472)
|
|
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,
|
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
Loss from operations
|
|
|
(507,276)
|
|
|
|
(168,227)
|
|
|
|
(25,114)
|
|
|
|
(618,686)
|
|
|
|
(303,015)
|
|
|
|
(45,239)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses
|
|
|
378,405
|
|
|
|
33,236
|
|
|
|
4,962
|
|
|
|
378,405
|
|
|
|
84,547
|
|
|
|
12,622
|
|
Amortization of
intangible assets and deferred cost resulting from
assets and business acquisitions
|
|
|
77,838
|
|
|
|
92,706
|
|
|
|
13,841
|
|
|
|
155,677
|
|
|
|
180,041
|
|
|
|
26,879
|
|
Adjusted loss from operations
(non-GAAP)
|
|
|
(51,033)
|
|
|
|
(42,285)
|
|
|
|
(6,311)
|
|
|
|
(84,604)
|
|
|
|
(38,427)
|
|
|
|
(5,738)
|
|
Net loss
|
|
|
(505,685)
|
|
|
|
(125,250)
|
|
|
|
(18,697)
|
|
|
|
(600,466)
|
|
|
|
(286,602)
|
|
|
|
(42,788)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses
|
|
|
378,405
|
|
|
|
33,236
|
|
|
|
4,962
|
|
|
|
378,405
|
|
|
|
84,547
|
|
|
|
12,622
|
|
Amortization of
intangible assets and deferred cost resulting from
assets and business acquisitions
|
|
|
77,838
|
|
|
|
92,706
|
|
|
|
13,841
|
|
|
|
155,677
|
|
|
|
180,041
|
|
|
|
26,879
|
|
Fair value change in
warrant liabilities
|
|
|
9,242
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,242
|
|
|
|
—
|
|
|
|
—
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effects of
amortization of intangible assets and deferred cost
resulting from assets and business acquisitions
|
|
|
(19,460)
|
|
|
|
(13,876)
|
|
|
|
(2,072)
|
|
|
|
(38,919)
|
|
|
|
(26,989)
|
|
|
|
(4,029)
|
|
Adjusted net loss (non-GAAP)
|
|
|
(59,660)
|
|
|
|
(13,184)
|
|
|
|
(1,966)
|
|
|
|
(96,061)
|
|
|
|
(49,003)
|
|
|
|
(7,316)
|
|
Adjusted net loss per ordinary share
(non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(1.59)
|
|
|
|
(0.08)
|
|
|
|
(0.01)
|
|
|
|
(3.40)
|
|
|
|
(0.30)
|
|
|
|
(0.05)
|
|
Diluted
|
|
|
(1.59)
|
|
|
|
(0.08)
|
|
|
|
(0.01)
|
|
|
|
(3.40)
|
|
|
|
(0.30)
|
|
|
|
(0.05)
|
|
Weighted average number of shares used in calculating
net loss per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
37,552,443
|
|
|
|
161,498,812
|
|
|
|
161,498,812
|
|
|
|
28,219,382
|
|
|
|
161,374,917
|
|
|
|
161,374,917
|
|
Diluted
|
|
|
37,552,443
|
|
|
|
161,498,812
|
|
|
|
161,498,812
|
|
|
|
28,219,382
|
|
|
|
161,374,917
|
|
|
|
161,374,917
|
|
View original
content:https://www.prnewswire.com/news-releases/atrenew-inc-reports-unaudited-second-quarter-2022-financial-results-301611457.html
SOURCE ATRenew Inc.