ATRenew Achieves Record Revenue and Profit in 2024 as Trade-in Momentum Accelerates
ATRenew Inc. (NYSE: RERE), a leading Chinese platform for pre-owned consumer electronics trading and recycling, announced robust financial results for the fourth quarter and full year of 2024 on March 11, highlighting strong revenue growth and profitability driven by accelerating trade-in services and diversified product offerings.
The company’s total revenue for Q4 reached RMB 4.85 billion ($664 million), marking a 25.2% year-over-year increase, while annual revenue climbed to a record-high RMB 16.33 billion ($2.24 billion), up 25.9% from 2023.
Non-GAAP operating profit rose substantially, reaching RMB 410 million ($56.2 million) for the full year, with ATRenew reporting its first-ever annual GAAP operating profit of RMB 28.97 million ($4 million).
“In the fourth quarter, we achieved robust revenue growth driven by strong consumer preference for trade-in services, which accounted for over half of our recycling volume,” said Kerry Xuefeng Chen, Chairman and CEO of ATRenew. “Amid cautious consumer spending, users increasingly favor cost-effective, sustainable solutions, fueling ongoing growth in the pre-owned electronics market. Our extensive offline store network continues to be a primary fulfillment channel, strengthened by our proprietary refurbishment capabilities, enabling us to offer high-quality, affordable products directly to consumers.”
ATRenew CFO Chen Chen highlighted the financial achievements, stating, “This quarter, we reached another milestone with quarterly non-GAAP operating profit of RMB 130 million ($17.8 million) and annual non-GAAP operating profit of RMB 410 million ($56 million). Our profitability was driven by rapid revenue growth across key retail channels such as Paipai Selection, offline AHS stores, and new media platforms. We remain committed to enhancing operational efficiency and have continued our shareholder return efforts through our ongoing share repurchase program.”
By the end of 2024, ATRenew operated 1,861 offline stores across 283 cities nationwide, with plans to accelerate expansion over the next three years. The company’s multi-category recycling initiative, including categories like luxury handbags, watches, gold, liquor, and apparel, also continued its rapid growth, with 673 stores now providing multi-category recycling services.
During the earnings call, CEO Chen elaborated on the industry outlook: “The second-hand electronics market in China has sustained a double-digit growth annually, as per IDC data. Trade-ins are now surpassing overall market growth as a preferred recycling method. We remain strategically focused on reinforcing our core competitive strengths in supply-chain capabilities and user trust, integrating consumer and business inventories effectively, and enhancing direct-to-consumer retail opportunities. Our unique capabilities in refurbishment allow us to significantly scale retail-to-consumer operations, maximizing industry value.”
In 2024, ATRenew facilitated 35.3 million second-hand product transactions, underscoring its pivotal role in promoting circular economic practices. The company also furthered its ESG commitments through partnerships with leading brands, notably collaborating with L’Oréal to enhance consumer participation in recycling initiatives.
Looking ahead, ATRenew unveiled its “551 Initiative,” aiming to triple store capabilities within three years by significantly expanding its offline network and community recycling infrastructure.
Chen concluded, “We aim to reinforce ATRenew’s leadership position in recycling, transaction services, and retailing. By consistently innovating our offerings and improving customer experience, we are poised to capture increasing consumer demand driven by trade-ins, ultimately creating sustainable, long-term value for our shareholders.”
SEE ALSO: ATRenew Posts Record Profit in Q3 2024 as Diversification and Self-operated Retailing Drive Growth
