SHANGHAI, March 10, 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 fourth quarter
and full year ended December 31,
2021.
Fourth Quarter 2021 Highlights
- Total net revenues grew by 48.2% to RMB2,435.8 million (US$382.2 million) from RMB1,644.1 million in the fourth quarter of
2020.
- Loss from operations was RMB125.9
million (US$19.8 million),
compared to RMB59.1 million in the
fourth quarter of 2020. Adjusted income from operations
(non-GAAP)[1] was RMB9.7 million (US$1.5
million) compared to RMB18.7
million in the fourth quarter of 2020.
- Total Gross Merchandise Volume
("GMV[2]") increased by 50.7% to
RMB10.1 billion from RMB6.7 billion in the fourth quarter of 2020.
GMV for product sales increased by 52.9% to RMB2.6 billion from RMB1.7
billion in the fourth quarter of 2020. GMV for online
marketplaces increased by 50.0% to RMB7.5 billion from RMB5.0
billion in the fourth quarter of 2020.
- Number of consumer products transacted[3]
increased by 26.4% to 9.1 million from 7.2 million in the fourth
quarter of 2020.
Full Year 2021 Highlights
- Total net revenues grew by 60.1% to RMB7,780.3 million (US$1,220.9 million) from RMB4,858.2 million in the full year of 2020.
- Loss from operations was RMB895.1
million (US$140.5 million),
compared to RMB458.8 million in the
full year of 2020. Adjusted loss from operations
(non-GAAP)[1] was RMB103.4 million (US$16.2
million) compared to RMB143.7
million in the full year of 2020.
- Total Gross Merchandise Volume ("GMV[2]")
increased by 65.8% to RMB32.5 billion
from RMB19.6 billion in the full year
of 2020. GMV for product sales increased by 69.6% to
RMB7.8 billion from RMB4.6 billion in the full year 2020. GMV for
online marketplaces increased by 64.7% to RMB24.7 billion from RMB15.0 billion in the full year of 2020.
- Number of consumer products
transacted[3] increased by 32.2% to 31.2
million from 23.6 million in the full year of 2020.
[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, "During the fourth quarter of 2021, we generated total
revenues that exceeded our previous guidance. This continued
revenue growth is a testament to the efficacy of our monetization
capabilities, which enabled us to earn a non-GAAP operating profit
of RMB9.7 million. Our development of
the infrastructure and consumer habits for recycling and reuse of
electronic goods has established a vibrant economic ecosystem. We
continue polishing our strategy and operational capabilities,
enhance our control over supply sourcing, and deepen the
penetration of digital transactions with our city-level service
integration model. We also continue to upgrade our automated
inspection technology to enhance operational efficiency and ensure
that compliance and integrity remain at the core of our business.
Looking ahead, we aim to empower consumers and merchant users for
the mutual benefit of all our stakeholders and shareholders. 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."
Mr. Rex Chen, the Chief Financial
Officer of ATRenew, added, "We are delighted to announce our
achievement in reaching the profitability milestone this quarter.
Our solid growth in product revenue was driven by our success in
increasing the density of our AHS stores and continuing to focus on
improving their industry-leading unit economics. Service revenues
benefited from increases in transaction volume and a new record
high in average commission rate of 4.8% in the fourth quarter 2021,
indicating that our digital solutions and technology empowerment
are in high demand. In the future, we pledge to further improve our
cost structure, and will continue to strengthen our competitive
moat by enhancing our C2B2C closed-loop supply chain and our
automation technologies. With sufficient cash on hand, we are
confident in our ability to generate long-term value for society
and all of our stakeholders."
Fourth Quarter 2021 Financial Results
REVENUE
Total net revenues increased by 48.2% to RMB2,435.8 million (US$382.2 million) from RMB1,644.1 million in the same period of
2020.
- Net product revenues increased by 43.9% to RMB2,076.0 million (US$325.8 million) from RMB1,442.3 million in the same period of 2020.
The increase 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.
- Net service revenues increased by 78.3% to RMB359.9 million (US$56.5
million) from RMB201.8 million
in the same period of 2020. The increase was primarily due to the
increases in transaction volume on PJT Marketplace and Paipai
Marketplace and an increase in the average commission rate.
OPERATING COSTS AND EXPENSES
Operating costs and expenses increased by 50.1% to RMB2,573.2 million (US$403.8 million) from RMB1,714.8 million in the same period of
2020.
- Merchandise costs increased by 45.6% to RMB1,800.5 million (US$282.5 million) from RMB1,236.5 million in the same period of 2020.
The increase was in line with the growth in product revenue.
- Fulfillment expenses increased by 52.8% to RMB290.1 million (US$45.5
million) from RMB189.9 million
in the same period of 2020. The increase was primarily due to (i)
an increase in personnel cost in connection with the Company's
growing business; (ii) the increases in logistics expenses and
operation center related expenses, which were in line with the
increase in sales of pre-owned consumer electronics; and (iii) the
recognition of share-based compensation expense resulting from
options granted to employees with an IPO condition since second
quarter of 2021.
- Selling and marketing expenses increased by 74.0% to
RMB368.8 million (US$57.9 million) from RMB212.0 million in the same period of 2020. The
increase was primarily due to (i) an increase in sales promotion
and coupon expenses in connection with business development; (ii)
an increase in personnel cost in connection with the Company's
growing business; and (iii) the recognition of share-based
compensation expense resulting from options granted to employees
with an IPO condition since second quarter of 2021.
- General and administrative expenses increased by 41.0% to
RMB51.9 million (US$8.1 million) from RMB36.8 million in the same period of 2020. The
increase was primarily due to the increase in the recognition of
share-based compensation expense resulting from options granted to
employees with an IPO condition since second quarter of 2021.
- Technology and content expenses increased by 55.8% to
RMB62.0 million (US$9.7 million) from RMB39.8 million in the same period of 2020. The
increase was primarily due to (i) the increase in personnel cost in
connection to the expansion of the Company's research and
development activities; and (ii) the recognition of share-based
compensation expense resulting from options granted to employees
with an IPO condition since second quarter of 2021.
LOSS (INCOME) FROM OPERATIONS
Loss from operations was RMB125.9
million (US$19.8 million),
compared to RMB59.1 million in the
same period of 2020. Adjusted income from operations
(non-GAAP)[1], excluding amortization of intangible
assets and deferred cost resulting from assets and business
acquisitions and recognition of share-based compensation
expense resulting from options granted to employees, was
RMB9.7 million (US$1.5 million), compared to RMB18.7 million in the same period of 2020.
NET LOSS
Net loss was RMB103.6 million
(US$16.3 million), compared to
RMB82.9 million in the same period of
2020. Adjusted net loss (non-GAAP)[1] was
RMB50.2 million (US$7.9 million), compared to RMB16.7 million in the same period of 2020.
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE
Basic and diluted net loss per ordinary share were RMB0.63 (US$0.10),
compared to RMB22.69 in the same
period of 2020.
Adjusted basic and diluted net loss per ordinary share
(non-GAAP)[1] were RMB0.31 (US$0.05),
compared to RMB0.89 in the same
period of 2020.
Full Year 2021 Financial Results
REVENUE
Total net revenues increased by 60.1% to RMB7,780.3 million (US$1,220.9 million) from RMB4,858.2 million in the full year of 2020.
- Net product revenues increased by 56.8% to RMB6,654.9 million (US$1,044.3 million) from RMB4,244.0 million in the full year of 2020. The
increase was primarily attributable to an increase in sourcing
volume and the corresponding increase in sales of pre-owned
consumer electronics through PJT Marketplace, and Paipai
Marketplace.
- Net service revenues increased by 83.2% to RMB1,125.4 million (US$176.6 million) from RMB614.2 million in the full year of 2020. The
increase was primarily due to the increases in transaction volume
on PJT Marketplace and Paipai Marketplace and an increase in the
average commission rate.
OPERATING COSTS AND EXPENSES
Operating costs and expenses increased by 62.8% to RMB8,702.3 million (US$1,365.6 million) from RMB5,346.4 million in the full year of 2020.
- Merchandise costs increased by 58.9% to RMB5,735.4 million (US$900.0 million) from RMB3,610.4 million in the full year of 2020. The
increase was in line with the growth in product revenue.
- Fulfillment expenses increased by 59.4% to RMB1,062.1 million (US$166.7 million) from RMB666.3 million in the full year of 2020. The
increase was primarily due to (i) an increase in personnel cost in
connection with the Company's growing business; (ii) the increases
in logistics expenses and operation center related expenses, which
were in line with the increase in sales of pre-owned consumer
electronics; and (iii) the recognition of share-based compensation
expense of RMB59.6 million
(US$9.4 million) resulting from
options granted to employees with an IPO condition.
- Selling and marketing expenses increased by 62.9% to
RMB1,206.6 million (US$189.4 million) from RMB740.5 million in the full year of 2020. The
increase was primarily due to (i) an increase in sales promotion
and coupon expenses in connection with business development; (ii)
an increase in sales commissions in connection with traffic
acquisition and sourcing of pre-owned devices; (iii) an increase in
personnel cost in connection with the Company's growing business;
and (iv) the recognition of share-based compensation expense of
RMB38.5 million (US$6.0 million) resulting from options granted to
employees with an IPO condition.
- General and administrative expenses increased by 144.3% to
RMB433.6 million (US$68.0 million) from RMB177.5 million in the full year of 2020. The
increase was primarily due to (i) the share-based compensation
expense of RMB220.3 million
(US$34.6 million) in connection with
the restricted share units and options granted to the management
with an IPO condition and the recognition of share-based
compensation expense of RMB96.6
million (US$15.2 million)
resulting from options granted to employees with an IPO condition;
and (ii) the decrease in other administrative expenses resulting
from the improved management efficiency.
- Technology and content expenses increased by 74.7% to
RMB264.6 million (US$41.5 million) from RMB151.5 million in the full year of 2020. The
increase was primarily due to (i) the increase in personnel cost in
connection to the expansion of the Company's research and
development activities; and (ii) the recognition of share-based
compensation expense of RMB39.6
million (US$6.2 million)
resulting from options granted to employees with an IPO
condition.
LOSS FROM OPERATIONS
Loss from operations was RMB895.1
million (US$140.5 million),
compared to RMB458.8 million in the
full year of 2020. Adjusted loss from operations
(non-GAAP)[1], excluding amortization of intangible
assets and deferred cost resulting from assets and business
acquisitions and recognition of share-based compensation
expense resulting from options granted to employees, was
RMB103.4 million (US$16.2 million), compared to RMB143.7 million in the full year of 2020.
NET LOSS
Net loss was RMB816.5 million
(US$128.1 million), compared to
RMB470.6 million in the full year of
2020. Adjusted net loss (non-GAAP)[1] was
RMB168.8 million (US$26.5 million), compared to RMB202.8 million in the full year of 2020.
BASIC AND DILUTED NET LOSS PER ORDINARY SHARE
Basic and diluted net loss per ordinary share were RMB13.76 (US$2.16),
compared to RMB94.51 in the full year
of 2020.
Adjusted basic and diluted net loss per ordinary share
(non-GAAP)[1] were RMB1.75 (US$0.27),
compared to RMB10.80 in the full year
of 2020.
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 RMB2,421.9
million (US$380.0 million) as
of December 31, 2021, from
RMB1,140.2 million as of December 31, 2020, primarily due to net proceeds
from the Company's initial public offering in June 2021.
Business Outlook
For the first quarter of 2022, the Company currently expects its
total revenues to be between RMB2,150.0
million and RMB2,200.0
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 28, the Company
announced a share repurchase program, that the Company may
repurchase up to US$100 million of
its shares over a twelve-month period starting from December 28, 2021, upon the authorization of its
board of directors.
Conference Call Information
The Company's management will hold a conference call
Thursday, March 10, 2022, at
08:00 A.M. Eastern Time (or
09:00 P.M. Beijing Time on
Thursday, March 10, 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:
|
|
5744975
|
The replay will be accessible through March 17, 2022, by dialing the following
numbers:
International:
|
|
1-412-317-0088
|
United States Toll
Free:
|
|
1-877-344-7529
|
Access
Code:
|
|
4421939
|
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 RMB6.3726 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 December 31,
2021.
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 and tax effect 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.
Adjusted net loss attributable to ordinary shareholders is net loss
attributable to ordinary shareholders excluding the impact of
share-based compensation expenses, amortization of intangible
assets and deferred cost resulting from assets and business
acquisitions and tax effect of amortization of intangible assets
and deferred cost resulting from assets and business
acquisitions.
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 and tax effect 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 December
31,
|
|
|
|
2020
|
|
|
2021
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
918,076
|
|
|
|
1,356,342
|
|
|
|
212,840
|
|
Restricted
cash
|
|
|
—
|
|
|
|
150,000
|
|
|
|
23,538
|
|
Short-term
investments
|
|
|
97,866
|
|
|
|
510,467
|
|
|
|
80,103
|
|
Amount due from
related parties, net
|
|
|
289,156
|
|
|
|
410,088
|
|
|
|
64,352
|
|
Inventories
|
|
|
176,994
|
|
|
|
478,751
|
|
|
|
75,126
|
|
Funds receivable from
third party payment service providers
|
|
|
124,262
|
|
|
|
405,095
|
|
|
|
63,568
|
|
Prepayments and other
receivables, net
|
|
|
268,284
|
|
|
|
840,102
|
|
|
|
131,830
|
|
Total current
assets
|
|
|
1,874,638
|
|
|
|
4,150,845
|
|
|
|
651,357
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
investments
|
|
|
96,362
|
|
|
|
241,527
|
|
|
|
37,901
|
|
Property and
equipment, net
|
|
|
69,562
|
|
|
|
103,843
|
|
|
|
16,295
|
|
Intangible assets,
net
|
|
|
1,367,841
|
|
|
|
1,075,811
|
|
|
|
168,818
|
|
Operating lease
right-of-use assets[4]
|
|
|
—
|
|
|
|
69,612
|
|
|
|
10,924
|
|
Goodwill
|
|
|
1,803,415
|
|
|
|
1,803,415
|
|
|
|
282,995
|
|
Other non-current
assets
|
|
|
14,520
|
|
|
|
57,709
|
|
|
|
9,056
|
|
Total non-current
assets
|
|
|
3,351,700
|
|
|
|
3,351,917
|
|
|
|
525,989
|
|
TOTAL
ASSETS
|
|
|
5,226,338
|
|
|
|
7,502,762
|
|
|
|
1,177,346
|
|
LIABILITIES,
MEZZANINE EQUITY AND EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
369,657
|
|
|
|
94,999
|
|
|
|
14,907
|
|
Amount due to related
parties
|
|
|
114,669
|
|
|
|
73,976
|
|
|
|
11,608
|
|
Accounts
payable
|
|
|
27,201
|
|
|
|
41,311
|
|
|
|
6,483
|
|
Contract
liabilities
|
|
|
33,884
|
|
|
|
211,964
|
|
|
|
33,262
|
|
Accrued expenses and
other current liabilities
|
|
|
362,728
|
|
|
|
260,679
|
|
|
|
40,906
|
|
Accrued payroll and
welfare
|
|
|
115,400
|
|
|
|
105,787
|
|
|
|
16,600
|
|
Operating lease
liabilities, current
|
|
|
—
|
|
|
|
35,948
|
|
|
|
5,641
|
|
Convertible
bonds
|
|
|
160,000
|
|
|
|
—
|
|
|
|
—
|
|
Total current
liabilities
|
|
|
1,183,539
|
|
|
|
824,664
|
|
|
|
129,407
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
borrowings
|
|
|
32,624
|
|
|
|
—
|
|
|
|
—
|
|
Operating lease
liabilities, non-current
|
|
|
—
|
|
|
|
34,501
|
|
|
|
5,414
|
|
Deferred tax
liabilities
|
|
|
341,960
|
|
|
|
223,138
|
|
|
|
35,015
|
|
Total non-current
liabilities
|
|
|
374,584
|
|
|
|
257,639
|
|
|
|
40,429
|
|
TOTAL
LIABILITIES
|
|
|
1,558,123
|
|
|
|
1,082,303
|
|
|
|
169,836
|
|
TOTAL MEZZANINE
EQUITY
|
|
|
8,879,894
|
|
|
|
—
|
|
|
|
—
|
|
TOTAL (DEFICIT)
EQUITY
|
|
|
(5,211,679)
|
|
|
|
6,420,459
|
|
|
|
1,007,510
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND EQUITY
(DEFICIT)
|
|
|
5,226,338
|
|
|
|
7,502,762
|
|
|
|
1,177,346
|
|
|
[4] On
January 1, 2021, the Company adopted ASC 842, the new lease
standard, using the modified retrospective method.
|
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
December 31,
|
|
|
Years ended
December 31,
|
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net product
revenues
|
|
|
1,442,318
|
|
|
|
2,075,955
|
|
|
|
325,763
|
|
|
|
4,244,023
|
|
|
|
6,654,893
|
|
|
|
1,044,298
|
|
Net service
revenues
|
|
|
201,770
|
|
|
|
359,873
|
|
|
|
56,472
|
|
|
|
614,176
|
|
|
|
1,125,382
|
|
|
|
176,597
|
|
Operating
expenses(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandise
costs
|
|
|
(1,236,462)
|
|
|
|
(1,800,488)
|
|
|
|
(282,536)
|
|
|
|
(3,610,434)
|
|
|
|
(5,735,393)
|
|
|
|
(900,008)
|
|
Fulfillment
expenses
|
|
|
(189,910)
|
|
|
|
(290,128)
|
|
|
|
(45,527)
|
|
|
|
(666,317)
|
|
|
|
(1,062,066)
|
|
|
|
(166,661)
|
|
Selling and marketing
expenses
|
|
|
(211,961)
|
|
|
|
(368,767)
|
|
|
|
(57,868)
|
|
|
|
(740,542)
|
|
|
|
(1,206,649)
|
|
|
|
(189,350)
|
|
General and
administrative expenses
|
|
|
(36,764)
|
|
|
|
(51,898)
|
|
|
|
(8,144)
|
|
|
|
(177,542)
|
|
|
|
(433,629)
|
|
|
|
(68,046)
|
|
Technology and
content expenses
|
|
|
(39,751)
|
|
|
|
(61,962)
|
|
|
|
(9,723)
|
|
|
|
(151,536)
|
|
|
|
(264,560)
|
|
|
|
(41,515)
|
|
Total operating
expenses
|
|
|
(1,714,848)
|
|
|
|
(2,573,243)
|
|
|
|
(403,798)
|
|
|
|
(5,346,371)
|
|
|
|
(8,702,297)
|
|
|
|
(1,365,580)
|
|
Other operating
income, net
|
|
|
11,651
|
|
|
|
11,523
|
|
|
|
1,808
|
|
|
|
29,395
|
|
|
|
26,950
|
|
|
|
4,229
|
|
Loss from
operations
|
|
|
(59,109)
|
|
|
|
(125,892)
|
|
|
|
(19,755)
|
|
|
|
(458,777)
|
|
|
|
(895,072)
|
|
|
|
(140,456)
|
|
Interest
expense
|
|
|
(5,213)
|
|
|
|
(1,785)
|
|
|
|
(280)
|
|
|
|
(21,090)
|
|
|
|
(16,778)
|
|
|
|
(2,633)
|
|
Interest
income
|
|
|
1,080
|
|
|
|
2,086
|
|
|
|
327
|
|
|
|
9,321
|
|
|
|
8,370
|
|
|
|
1,313
|
|
Other loss,
net
|
|
|
(31,146)
|
|
|
|
(53,301)
|
|
|
|
(8,364)
|
|
|
|
(39,866)
|
|
|
|
(50,367)
|
|
|
|
(7,904)
|
|
Loss before income
taxes
|
|
|
(94,388)
|
|
|
|
(178,892)
|
|
|
|
(28,072)
|
|
|
|
(510,412)
|
|
|
|
(953,847)
|
|
|
|
(149,680)
|
|
Income tax
benefits
|
|
|
11,688
|
|
|
|
82,103
|
|
|
|
12,884
|
|
|
|
47,320
|
|
|
|
143,863
|
|
|
|
22,575
|
|
Share of loss in
equity method investments
|
|
|
(176)
|
|
|
|
(6,847)
|
|
|
|
(1,074)
|
|
|
|
(7,526)
|
|
|
|
(6,563)
|
|
|
|
(1,030)
|
|
Net
loss
|
|
|
(82,876)
|
|
|
|
(103,636)
|
|
|
|
(16,262)
|
|
|
|
(470,618)
|
|
|
|
(816,547)
|
|
|
|
(128,135)
|
|
Accretion of
convertible redeemable
preferred shares
|
|
|
(343,392)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,304,498)
|
|
|
|
(508,627)
|
|
|
|
(79,815)
|
|
Net loss
attributable to ordinary
shareholders of the Company
|
|
|
(426,268)
|
|
|
|
(103,636)
|
|
|
|
(16,262)
|
|
|
|
(1,775,116)
|
|
|
|
(1,325,174)
|
|
|
|
(207,950)
|
|
Net loss per
ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(22.69)
|
|
|
|
(0.63)
|
|
|
|
(0.10)
|
|
|
|
(94.51)
|
|
|
|
(13.76)
|
|
|
|
(2.16)
|
|
Diluted
|
|
|
(22.69)
|
|
|
|
(0.63)
|
|
|
|
(0.10)
|
|
|
|
(94.51)
|
|
|
|
(13.76)
|
|
|
|
(2.16)
|
|
Weighted average
number of shares used
in calculating net loss per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
18,782,620
|
|
|
|
163,367,269
|
|
|
|
163,367,269
|
|
|
|
18,782,620
|
|
|
|
96,306,113
|
|
|
|
96,306,113
|
|
Diluted
|
|
|
18,782,620
|
|
|
|
163,367,269
|
|
|
|
163,367,269
|
|
|
|
18,782,620
|
|
|
|
96,306,113
|
|
|
|
96,306,113
|
|
Net
loss
|
|
|
(82,876)
|
|
|
|
(103,636)
|
|
|
|
(16,262)
|
|
|
|
(470,618)
|
|
|
|
(816,547)
|
|
|
|
(128,135)
|
|
Foreign currency
translation adjustments
|
|
|
1,659
|
|
|
|
1,390
|
|
|
|
218
|
|
|
|
2,441
|
|
|
|
2,239
|
|
|
|
351
|
|
Total
comprehensive loss
|
|
|
(81,217)
|
|
|
|
(102,246)
|
|
|
|
(16,044)
|
|
|
|
(468,177)
|
|
|
|
(814,308)
|
|
|
|
(127,784)
|
|
Accretion of
convertible redeemable
preferred shares
|
|
|
(343,392)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,304,498)
|
|
|
|
(508,627)
|
|
|
|
(79,815)
|
|
Total
comprehensive loss attributable to
ordinary shareholders
|
|
|
(424,609)
|
|
|
|
(102,246)
|
|
|
|
(16,044)
|
|
|
|
(1,772,675)
|
|
|
|
(1,322,935)
|
|
|
|
(207,599)
|
|
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
December 31,
|
|
|
Years ended
December 31,
|
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
(1) Includes
share-based compensation expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfillment
expenses
|
|
|
—
|
|
|
|
(10,291)
|
|
|
|
(1,615)
|
|
|
|
—
|
|
|
|
(59,583)
|
|
|
|
(9,350)
|
|
Selling and marketing
expenses
|
|
|
—
|
|
|
|
(8,600)
|
|
|
|
(1,350)
|
|
|
|
—
|
|
|
|
(38,463)
|
|
|
|
(6,036)
|
|
General and
administrative expenses
|
|
|
—
|
|
|
|
(18,977)
|
|
|
|
(2,978)
|
|
|
|
—
|
|
|
|
(316,911)
|
|
|
|
(49,731)
|
|
Technology and
content expenses
|
|
|
—
|
|
|
|
(7,656)
|
|
|
|
(1,201)
|
|
|
|
—
|
|
|
|
(39,595)
|
|
|
|
(6,213)
|
|
(2) Includes
amortization of intangible assets and deferred
cost resulting from assets and business acquisitions as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(76,258)
|
|
|
|
(88,455)
|
|
|
|
(13,880)
|
|
|
|
(308,803)
|
|
|
|
(330,755)
|
|
|
|
(51,902)
|
|
Technology and
content expenses
|
|
|
(1,580)
|
|
|
|
(1,580)
|
|
|
|
(248)
|
|
|
|
(6,320)
|
|
|
|
(6,320)
|
|
|
|
(992)
|
|
Reconciliations of
GAAP and Non-GAAP Results
|
(Amounts in
thousands, except share and per share and otherwise
noted)
|
|
|
|
Three months ended
December 31,
|
|
|
Years ended
December 31,
|
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
Loss from
operations
|
|
|
(59,109)
|
|
|
|
(125,892)
|
|
|
|
(19,755)
|
|
|
|
(458,777)
|
|
|
|
(895,072)
|
|
|
|
(140,456)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
|
—
|
|
|
|
45,524
|
|
|
|
7,144
|
|
|
|
—
|
|
|
|
454,552
|
|
|
|
71,330
|
|
Amortization of
intangible assets and deferred cost resulting
from assets and business acquisitions
|
|
|
77,838
|
|
|
|
90,035
|
|
|
|
14,128
|
|
|
|
315,123
|
|
|
|
337,075
|
|
|
|
52,894
|
|
Adjusted income
(loss) from operations
|
|
|
18,729
|
|
|
|
9,667
|
|
|
|
1,517
|
|
|
|
(143,654)
|
|
|
|
(103,445)
|
|
|
|
(16,232)
|
|
Net
loss
|
|
|
(82,876)
|
|
|
|
(103,636)
|
|
|
|
(16,262)
|
|
|
|
(470,618)
|
|
|
|
(816,547)
|
|
|
|
(128,135)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense
|
|
|
—
|
|
|
|
45,524
|
|
|
|
7,144
|
|
|
|
—
|
|
|
|
454,552
|
|
|
|
71,330
|
|
Amortization of
intangible assets and deferred cost resulting
from assets and business acquisitions
|
|
|
77,838
|
|
|
|
90,035
|
|
|
|
14,128
|
|
|
|
315,123
|
|
|
|
337,075
|
|
|
|
52,894
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect of
amortization of intangible assets and deferred
cost resulting from assets and business acquisitions
|
|
|
(11,688)
|
|
|
|
(82,103)
|
|
|
|
(12,884)
|
|
|
|
(47,320)
|
|
|
|
(143,863)
|
|
|
|
(22,575)
|
|
Adjusted net
loss
|
|
|
(16,726)
|
|
|
|
(50,180)
|
|
|
|
(7,874)
|
|
|
|
(202,815)
|
|
|
|
(168,783)
|
|
|
|
(26,486)
|
|
Adjusted net loss
per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.89)
|
|
|
|
(0.31)
|
|
|
|
(0.05)
|
|
|
|
(10.80)
|
|
|
|
(1.75)
|
|
|
|
(0.27)
|
|
Diluted
|
|
|
(0.89)
|
|
|
|
(0.31)
|
|
|
|
(0.05)
|
|
|
|
(10.80)
|
|
|
|
(1.75)
|
|
|
|
(0.27)
|
|
Weighted average
number of shares used in calculating net
loss per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
18,782,620
|
|
|
|
163,367,269
|
|
|
|
163,367,269
|
|
|
|
18,782,620
|
|
|
|
96,306,113
|
|
|
|
96,306,113
|
|
Diluted
|
|
|
18,782,620
|
|
|
|
163,367,269
|
|
|
|
163,367,269
|
|
|
|
18,782,620
|
|
|
|
96,306,113
|
|
|
|
96,306,113
|
|
View original
content:https://www.prnewswire.com/news-releases/atrenew-inc-reports-unaudited-fourth-quarter-and-full-year-2021-financial-results-301499776.html
SOURCE ATRenew Inc.