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RERE.US Corporate Blog - August 2021

 

Below is a summary of the recent business development of the Company and the industry headlines in August 2021. Regarding the operational metrics, please refer to the Company’s quarterly earnings release and the filings with the U.S. SEC.

 

Operational update:

  • In August, the Company opened 31 new stores nationwide, further increased the total number to over 900. The store network expansion focused on penetrating mid- and lower-tier cities in central and north China.
  • The number of city-level operation stations totaled 34 – this included 4 additions in north, eastern and central China in August 2021, further increasing the national coverage. These city-level operation stations function as local gateways to further expand the Company’s sourcing capability while providing timely services to the merchants and the mobile markets locally.
  • On 1 August, the Company started charging quality inspection service fees to sellers on PJT Marketplace who sent their devices to our facilities for inspection. This was due to the Company’s improving scalability and accumulating capabilities to serve the merchants.
  • On 15 August, the Company adjusted the basic service fee and value-added service fee for mobile phones in certain price ranges to sellers under the consignment model on Paipai Marketplace. Paipai Marketplace was able to take more initiatives in the pricing strategy due to the improvements in brand recognition and consumer trust.
  • In late August, the Company launched an app named “Jingzhi” (鲸置). It splits the C2C service function from Paipai while upgrading the app of “Paipai” (拍拍) to “Paipai Select” (拍拍严选), so as to keep C2B and B2C at the core of Paipai Marketplace. “Jingzhi” is developed by the Company, and it is currently released through JD’s channel on mobile app stores – this is mutually agreed between the Company and JD.

 

Key highlights:

  1. Released the first quarterly financial results since IPO, and pioneered in issuing the annual ESG report

ATRenew distributed its first quarterly earnings release on 17 August as a public company. To ensure transparency, a full transcript of the earnings conference call has been uploaded to the Company’s investor relations website. Management’s discussion on the Company’s operations and financial performance is included.

At the same time, the Company released its first annual ESG report which reviewed its ESG performance in 2020. With reference to the GRI Standards, the Company identified material ESG issues of the pre-owned electronic device transaction and service industry, and disclosed the Company's measures of information security and user data privacy protection. In addition, the report shared in detail the Company’s systematic approach to bringing employee welfare and caring to the next level, as well as its efforts in setting the standard for the pre-owned consumer electronics industry chain. The Company also reviewed the periodical performance in the aspects of environmental, social, and governance in 2020, aiming at establishing a more solid and comprehensive environmental management system in the future, and providing first-hand experience for energy-saving and emission-reduction management of the pre-owned consumer electronics industry chain. The Company continues to play an active role in advocating the development of a circular economy with its sustainable business model. The full report, in both Simplified Chinese and English, is available under the "ESG" column of the Company’s investor relations website.

 

  1. CITIC Securities and GF Securities initiated coverage of RERE.US at “Buy”

In August 2021, both CITIC Securities and GF Securities initiated coverage of RERE at a “Buy” rating – target prices being USD19.00/ADS and USD20.33/ADS. CITIC Securities is optimistic about the upgrade of the entire value chain of recycling, grading, pricing, and distribution of pre-owned consumer electronic devices successfully established through proprietary technology research and development as well as innovation. It holds a bullish view of the Company's penetration and services capabilities. GF Securities recognizes the company's market leadership and believes that the pre-owned consumer transaction and service business is a supply-driven business that is still in its infancy but is expected to evolve rapidly soon.

 

  1. Promotion of talents

130 outstanding employees were promoted following the semi-annual performance review. The promotion is expected to encourage talents and potentially nurture more future leaders.

 

Industry news:

  1. People Data Research Institute released "Second-hand Trading and Low-Carbon Life Research Report"

In mid-August, People's Daily Online and People Data Research Institute released the "Second-hand Trading and Low-Carbon Life Research Report" – view the report, here. The report reflects on China’s "dual carbon" goals of peak carbon emissions and carbon neutrality and circular economy development policy to discuss the standardization of the "Internet + second-hand goods trading" platforms. The report cited the credit score rating by Qixin, a credit rating system by People’s Daily – to highlight, among a number of peer platforms, AHS Recycle of the Company ranked top.