Exclusive-In high-wage Germany, VW's labour costs outstrip the competition
By Victoria Waldersee and Christoph Steitz
BERLIN/FRANKFURT (Reuters) – As Volkswagen and unions gear up for the next round of talks over wages and plant closures in Germany, company and industry data reviewed by Reuters show that the automaker spends a higher proportion of sales on labour costs than major rivals.
The data, in an internal memo by Volkswagen’s works council reviewed by Reuters, underscores the company’s challenge to remain competitive in its pricey home market as cheaper models from China arrive.
Management will start the next round of negotiations with unions representing roughly 120,000 German workers on Thursday. Unions are demanding a 7% pay rise, while Volkswagen is threatening a 10% cut.
The proportion of revenue spent on labour at Volkswagen globally has fallen from 18.2% in 2020 to 15.4% in 2023 – but that ratio still exceeds BMW, Mercedes-Benz, and Stellantis, which spent between 9.5% and 11% in 2023, according to the works council memo.
At VW AG, the German subsidiary that governs the six plants in question, the ratio was estimated at 15.8-17.5%. Volkswagen says it does not release separate figures for VW AG.
The findings by the works council, an elected body of employees representing them in negotiations with management, are based on annual reports showing companies’ global spending on personnel compared to revenue. The figures include all staff, from factory to white-collar workers. Reuters checked and confirmed the calculations.
Part of the reason the company spends more on labour is that it makes many components, and software, in-house, Stifel analyst Daniel Schwarz said. But pressure on margins from China means the company needs to cut fixed costs.
“The VW brand has been market leader in Europe every year since 2005 … its cars are competitive. The problem is not the product, but the costs,” he told Reuters.
Germany, where Volkswagen employs nearly 45% of its workforce, has the highest labour costs of any passenger car industry worldwide, averaging 62 euros ($66) per hour in 2023, up around a third from a decade ago, according to the German autos association VDA.
Still, union representatives say labour is a small part of the company’s cost base, challenging management to make cuts elsewhere to boost flagging profits.
In an internal flyer to staff, the works council pointed to steep drops in earnings at other parts of the group – Porsche, Audi, and VW Financial Services – in the first nine months of the year, which it said cost the company 5.5 billion euros ($5.8 billion).
Analysis-China's cashed-up crowd is back in the stock market
By Tom Westbrook and Samuel Shen
SHANGHAI/SINGAPORE (Reuters) – Speculative fever in Chinese stocks is running red hot and catching the attention of some global funds, who figure local money is worth following into market segments sheltered from tariffs and likely to ride an eventual economic recovery.
A series of economic stimulus pledges by China in September unleashed the largest rally in Hong Kong shares in a generation and sent mainland stocks to two-year highs.
However, the subsequent lack of a splashy spending centrepiece tempered the euphoria as many big-time investors cashed out rather than wait for a more patient revival, especially as President-elect Donald Trump installs China hawks in top U.S. departments.
Yet while Hong Kong shares have recoiled, mainland stocks have switched gears and the cash streaming in from household savings accounts is highlighting the markets’ hottest pockets.
“Money would rush into whatever stocks are in the speculative limelight,” said Lu Delong, a retail investor in northeast China who said he has 2 million yuan ($275,000) in stocks and made a 40% profit since late September.
He bet on tech shares gaining as China insulates them from possible U.S. restrictions, buying China Great Wall Technology Group and Huawei supplier Visionox Technology, which have doubled since late September.
“For tech stocks, innovation cannot be proved unsuccessful in early stages, thus creating room for speculation,” he said.
The speculative trade has pushed outstanding margin financing, or the money borrowed from stockbrokers for stock buying, to a nine-year high of 1.85 trillion yuan ($256 billion), according to data vendor Datayes.
Average daily volume for the Shanghai Composite has run at 2-1/2 times the ten-year average for the past two months and price moves point to even more action at the smaller end.
The BSE 50 Index of start-ups listed in Beijing is up 112% since late September, compared with the 12% gain left for the Shanghai Composite after its blistering rally.
“Speculative money and retail investors who don’t care about fundamentals remain feverish,” said Li Bei, founder of Shanghai Banxia Investment Management Centre, in a letter to investors.
Still, she increased her own net stock position to a nine-month high of nearly 50% in September and is focused on state-owned construction companies and the property sector, which has collapsed in recent years and is starting to attract bets on a recovery.
Fervour extends into derivatives, with options bets on rising prices also surging, according to David Wei, general manager of Shenzhen Chengyuan Investment Consulting Co, which helps investors buy such products from brokerages.
Kuaishou Technology Announces Third Quarter 2024 Unaudited Financial Results
HONG KONG, Nov. 20, 2024 /PRNewswire/ — Kuaishou Technology (“Kuaishou” or the “Company”; HKD Counter Stock Code: 01024 / RMB Counter Stock Code: 81024), a leading content community and social platform, today announced its unaudited consolidated results for the three months and nine months ended September 30, 2024.
Third Quarter 2024 Key Highlights
- Average DAUs on Kuaishou APP were 407.5 million, representing an increase of 5.4% from 386.6 million for the same period of 2023.
- Average MAUs on Kuaishou APP were 714.1 million, representing an increase of 4.3% from 684.7 million for the same period of 2023.
- Total e-commerce GMV(1) was RMB334.2 billion, representing an increase of 15.1% from RMB290.2 billion for the same period of 2023.
- Total revenue increased by 11.4% to RMB31.1 billion from RMB27.9 billion for the same period of 2023. Online marketing services and live streaming contributed 56.6% and 30.0%, respectively, to the total revenue. The other 13.4% came from other services.
- Gross profit increased by 17.0% to RMB16.9 billion from RMB14.5 billion for the same period of 2023. Gross profit margin in the third quarter of 2024 was 54.3%, improving from 51.7% for the same period of 2023.
- Profit for the period was RMB3.3 billion, compared to RMB2.2 billion for the same period of 2023. Adjusted net profit(2) increased to RMB3.9 billion from RMB3.2 billion for the same period of 2023.
- Operating profit from the domestic segment(3) increased to RMB3.5 billion from RMB3.2 billion for the same period of 2023. Operating loss from the overseas segment(3) decreased to RMB153 million by 75.9% year-over-year.
Mr. Cheng Yixiao, Co-founder, Chairman, and Chief Executive Officer of Kuaishou, said, “In the third quarter of 2024, our commitment to developing breakthrough technology that creates more value for our users propelled our user base to record-breaking heights. The Kuaishou App achieved average DAUs of 407.5 million and MAUs of 714.1 million. Our globally leading large video generation model, Kling AI, is setting new industry standards, redefining how content is created, personalized and experienced. Increased engagement across our ecosystem has fueled steady commercial growth, with total revenue rising 11.4% year-over-year in the third quarter to RMB31.1 billion. Notably, revenue from our core businesses, including online marketing services and e-commerce, grew nearly 20.0% year-over-year. Our adjusted net profit rose 24.4% year-over-year to RMB3.9 billion, showing our ability to increase profitability. Looking ahead, our AI strategy aims to strengthen our current business lines and lay the foundation for sustainable growth across our dynamic user, content and commercial ecosystems.”
Third Quarter 2024 Financial Review
Revenue from our online marketing services increased by 20.0% to RMB17.6 billion for the third quarter of 2024, from RMB14.7 billion for the same period of 2023, primarily attributable to the increased consumption from marketing clients driven by continuous optimization of smart placement capabilities and algorithms.
Revenue from our live streaming business decreased by 3.9% to RMB9.3 billion for the third quarter of 2024 from RMB9.7 billion for the same period of 2023, as a result of our continuous efforts in building a healthy and sustainable live streaming ecosystem.
Revenue from our other services increased by 17.5% to RMB4.2 billion for the third quarter of 2024, from RMB3.5 billion for the same period of 2023, primarily due to the growth of our e-commerce business, represented by the growth in our e-commerce GMV. The growth in e-commerce GMV was driven by increases in the number of e-commerce monthly active paying users and monthly active merchants as a result of our continuous refined omni-domain operations.
Other Key Financial Information for the Third Quarter of 2024
Operating profit was RMB3.1 billion, increasing from RMB2.2 billion for the same period of 2023.
Adjusted EBITDA(4) was RMB5.6 billion, increasing from RMB5.0 billion for the same period of 2023.
Total available funds(5) reached RMB86.7 billion as of September 30, 2024.
Notes:
(1) Placed on or directed to our partners through our platform.
(2) We define “adjusted net profit” as profit for the period adjusted by share-based compensation expenses and net fair value changes on investments.
(3) Unallocated items, which consist of share-based compensation expenses, other income, and other gains, net, are not included.
(4) We define “adjusted EBITDA” as adjusted net profit for the period adjusted by income tax (benefits)/expenses, depreciation of property and equipment, depreciation of right-of-use assets, amortization of intangible assets, and finance income, net.
(5) Total available funds which we considered in cash management included but not limited to cash and cash equivalents, time deposits, financial assets and restricted cash. Financial assets mainly included wealth management products and others.
Business Review
We grew our user base and increased our revenues and profits in the third quarter of 2024 despite a challenging macro environment. We achieved a new milestone of over 400 million quarterly average DAUs and recorded strong financial performance, driven by our unwavering dedication to our technology-driven, user-centric business philosophy. Our total revenue grew by 11.4% year-over-year to RMB31.1 billion, and revenue from our core commercial business, including online marketing services and other services, primarily e-commerce, increased by nearly 20.0% year-over-year in the third quarter of 2024. Our adjusted net profit rose by 24.4% year-over-year to RMB3.9 billion, evidencing our sustained profitability improvements.
We continued to advance the integration and application of large models for content creation, understanding and recommendation, empowering our content and commercial ecosystem. In the third quarter of 2024, average daily spending with AIGC marketing materials from marketing clients surpassed RMB20 million. In September 2024, we unveiled the latest version of our video generation model, Kling AI (可靈AI) 1.5, which sets new industry benchmarks for video quality with higher-quality resolution of 1080p, dynamic performance, semantic responsiveness and feature enhancements such as motion brush.
User and content ecosystem
In the third quarter of 2024, the average DAUs and MAUs on the Kuaishou App reached 408 million and 714 million, respectively, representing year-over-year increases of 5.4% and 4.3%, respectively, which further solidified our leading position as the third largest app in China in terms of quarterly average DAU. The average daily time spent per DAU on the Kuaishou App was 132.2 minutes. Total user time spent on the Kuaishou App increased by 7.3% year-over-year, with average daily live streaming and short video views reaching nearly 110 billion.
In line with our strategy to promote high-quality user growth, we enhanced our capabilities in leveraging marketing channels for user acquisition and optimized product features, while integrating user acquisition initiatives with commercial scenarios such as e-commerce. These efforts enabled us to expand our user base and enabled more users to access our products more frequently. We also progressed our user retention initiatives by enriching the interactive community experience. For example, to drive user engagement and increase user stickiness, we refined private messaging features across various scenarios, introduced more innovative features and enhanced the comment ranking system. In terms of algorithm, we developed new approaches to improve user retention by modeling users’ diverse interests, user-to-user follow relationships and drivers for opening the Kuaishou App.
In terms of content operations, we have established a unique, multi-faceted ecosystem by developing specialized content verticals aligned with users’ interests, supporting standout creators whose content represents Kuaishou’s distinctive brand, and expanding our brand visibility and user reach with high-profile events. In the sports vertical, as a rights-holding broadcaster of the Olympic Games Paris 2024, we delivered a comprehensive content matrix that included panoramic on-demand event coverage, exclusive self-developed IP content, interactive features, and diverse user-generated content, creating an all-encompassing Olympic experience for users. During the Olympic Games Paris 2024, Olympic-related content on the Kuaishou App generated 310.6 billion impressions, with 640 million users watching the Olympic Games on our platform and generating 15.9 billion interactions.
With respect to our search business, in the third quarter of 2024, we optimized the search results page to improve user experience, significantly increasing our search user penetration. In the third quarter of 2024, average MAUs for Kuaishou searches exceeded 500 million, and average daily searches increased by over 20.0% year-over-year to over 700 million with daily searches peaking at over 800 million. Moreover, user searches accelerated the growth of our revenue-generating businesses related to searches by enabling us to gain deeper insights into users’ needs.
Online marketing services
In the third quarter of 2024, revenue from online marketing services grew by 20.0% year-over-year, reaching RMB17.6 billion, demonstrating the sustainable growth of our online marketing services business. By continuously improving our data infrastructure, smart placement products and algorithms, we achieved a higher placement ROI for our marketing clients, leading to increased bids. Additionally, our large AI models’ semantic understanding of marketing content and merchandise characteristics enables us to match users and merchandise more accurately for our merchants, boosting marketing conversion efficiency.
In the third quarter of 2024, revenue growth of our online marketing services was primarily driven by external marketing clients. Marketing spending in media information, e-commerce platforms and local services grew faster year-over-year. In the media information vertical, marketing spending from commercialized short plays grew significantly. We increased user payment conversion rate through high-quality content offerings and the implementation of smart dynamic subsidy strategies, improved placement outcomes for our marketing clients. In the third quarter of 2024, we accelerated the implementation of the In-Apps Ads (IAA, 應用內廣告) short play model, expanding our user base for free short plays. These efforts contributed to a more than three-fold year-over-year increase in short-play marketing spending during the same period. We also introduced differentiated Universal Auto X (UAX, 全自動投放解決方案) placement solutions for various industries and scenarios, enhancing the stability of clients’ marketing placements and driving increased budget allocation. As a result, total marketing spending through UAX accounted for approximately 50.0% of overall marketing spending by external marketing clients in the third quarter of 2024.
Revenue growth of our closed-loop marketing services remained robust in the third quarter of 2024. The number of monthly active merchants using marketing placements increased by over 50.0% year over year. We provided simplified, automated marketing placement services for small and medium-sized merchants, enabling them to increase their GMV through marketing placements and significantly improving the retention rate of these merchants. We focused on policy support, product iterations, and algorithm optimizations to improve the operating efficiency of converting short video traffic to live streaming, which increased marketing spending in this scenario by nearly 20.0% year-over-year in the third quarter of 2024. Smart marketing placement is now a critical element of merchants’ sustainable operations on the Kuaishou App. In the third quarter of 2024, our omni-platform marketing solution and smart hosting products accounted for approximately 50.0% of total closed-loop marketing spending on the Kuaishou App.
In terms of brand marketing services, we provide clients with integrated solutions that drive both brand awareness and sales conversion through marketing science, KOL recommendations, and customized strategies to attract marketing clients. In the third quarter of 2024, we also capitalized on the Olympic Games Paris 2024 by partnering with over 150 brands, including Yili, China Mobile and FAW-Volkswagen, to support these clients’ rapid growth on Kuaishou with innovative marketing solutions empowered by our “sports+” strategy and content ecosystem.
E-commerce
Our e-commerce business in the third quarter of 2024 demonstrated its differentiation and resilience despite the third quarter being a traditionally slow season for e-commerce and ongoing challenges in consumer demand. We maintained strong market presence due to our solid foundation in content-based e-commerce and our strategy to provide “exceptional content, superior product.” By strategically refocusing on live streaming e-commerce, further unlocking the potential of short video e-commerce, and steadily expanding our pan shelf-based e-commerce, we are maximizing synergies across multiple e-commerce scenarios. These efforts to boost e-commerce supply, enrich our e-commerce ecosystem and increase user spending drove a 15.1% year-over-year increase in e-commerce GMV to RMB334.2 billion in the third quarter of 2024.
On the supply side, the number of average monthly active merchants increased by over 40.0% year-over-year in the third quarter of 2024. Small and medium-sized merchants’ performance on our platform exceeded expectations thanks to our strategic new merchant programs, including the Golden Bounty Initiative (斗金計劃), Set Sail Initiative (啟航計劃) and Uplift Initiative (扶搖計劃). These programs help early-stage merchants increase traffic and reduce uncertainties. In the third quarter of 2024, the number of new merchants joining Kuaishou increased by over 30.0% year-over-year. Meanwhile, for existing small and medium-sized merchants, we offered refined methodologies for content-based e-commerce to support various merchants’ operating capabilities on Kuaishou, facilitating their long-term business growth. Our merchants’ healthy growth enriched our platform’s merchandise ecosystem by expanding the number of merchandise categories by over 20.0% year-over-year in the third quarter of 2024 and providing users with a wider selection of high-quality products.
To enhance our content-based e-commerce, we customized operations for KOLs in different tiers. For top-tier KOLs, we introduced marketing features and tools, such as Exclusive Mega Group Buy (購物團) and Mega Crowd Deals (萬人團), to incentivize them to live stream and enhance the value of their content. To support small and medium-sized KOLs, we launched our Rising Star Initiative (新星計劃) in August 2024, which provides cash incentives and traffic support while collaborating with regional service providers for local operations. In the third quarter of 2024, these initiatives helped small and medium-sized KOLs achieve strong growth, increasing their average daily GMV by over 40.0% quarter-over-quarter and average daily number of merchandise sold by over 25.0% quarter-over-quarter. We also launched our Blockbusters Initiative (爆品計劃), offering subsidies for selected merchandise to provide users with more affordable, high-quality products. As a result of these efforts, our GMV achieved by KOLs increased by over 24.0% year-over-year during the 818 Shopping Festival. Short video e-commerce also maintained rapid growth, with its GMV increasing by over 40.0% year-over-year in the third quarter of 2024, driven by blockbuster products and live-streaming highlights. Through strategy optimization such as integrating e-commerce contents with marketing materials, and joint modeling of short video traffic and simple live streaming rooms, we achieved a nearly 40% quarter-over-quarter growth in GMV driven by short videos directing traffic to live streaming rooms in the third quarter of 2024.
While stabilizing and growing our content-based e-commerce, our pan shelf-based e-commerce has become an increasingly effective complement. In the third quarter of 2024, pan shelf-based e-commerce GMV accounted for 27.0% of our total e-commerce GMV, and its growth continued to outperform our overall GMV growth, driven by both strong supply and demand. Average daily active merchants and average daily active paying users in our shopping mall grew by nearly 70.0% and over 60.0% year-over-year, respectively, in the third quarter of 2024.
The continued enrichment of our e-commerce supply and ecosystem and increased synergies across e-commerce scenarios further stimulated user demand. In the third quarter of 2024, the number of e-commerce monthly active paying users grew by 12.2% year-over-year to 133 million, continuing the growth trend established in the second quarter which was the peak season. Our diverse marketing strategies, which include targeted approaches for new, growing and mature users, also supported this growth. Tools such as coupons for live streaming rooms and order incentives have been instrumental in expanding our user base and improving conversion rate and transaction efficiency. Going forward, we remain committed to our user-centric approach. By leveraging integrated live streaming and short video content, along with our pan shelf-based e-commerce strategy, we will continue to empower merchants and KOLs to grow holistically and provide a better shopping experience for our users.
Live streaming
In the third quarter of 2024, revenue from our live-streaming business was RMB9.3 billion, with the year-over-year decline continuing to narrow sequentially. As an instrumental component of our content ecosystem and ongoing driver of user engagement, we remain focused on fostering a healthy, sustainable live-streaming ecosystem. On the supply side, multi-host live streaming and other emerging product categories continued to grow. Increasing professionalism and institutionalization of streamers and our partner talent agencies’ enhanced operational capabilities supported this growth, contributing to more refined and effective content delivery. By the end of the third quarter of 2024, the number of our partner talent agencies increased by more than 40.0%, and the number of talent agency-managed streamers increased by over 60.0%, both on a year-over-year basis.
We continued to expand the variety of high-quality content on our platform, with rich entertainment and local cultural content as foundational pillars. We focused on different niche areas and launched multiple content IPs featuring talented streamers, such as the Grand Stage (直播大舞台) and the New Episodes of National Arts (國藝有新番) live-streaming programs. By integrating content IPs with local culture and tourism, we successfully promoted the development of local cultural and tourism industries. To further enhance our gaming live-streaming ecosystem, we implemented a comprehensive content marketing strategy that included incubation of new games, game distribution through live streaming, and cultivation of top-tier influencers, among other initiatives. We also developed gaming content with distinct Kuaishou characteristics. In the third quarter of 2024, the number of active gaming live-streaming creators exceeded 30 million, strengthening the appeal of our diverse top-notch content to live-streaming users.
Our “live streaming+” services continued to empower traditional industries. For example, we continued to advance our services related to recruitment and real estate, leading to ongoing rapid growth in the number of customers served and transaction scale. In the third quarter of 2024, the average daily number of resume submissions on Kwai Hire (快聘) nearly doubled, and matching rate grew by over 20.0%, both on a year-over-year basis. For Ideal Housing (理想家), daily lead generation surged by over four-fold compared with the same period last year.
Overseas
We progressed our overseas business in Brazil, where Kwai is building strong local brands by deepening local content operations. In the third quarter of 2024, we maintained high-quality, robust user growth, achieving breakthroughs in innovative user acquisition channels and improving user retention. DAUs in Brazil grew by 9.7% year-over-year in the third quarter of 2024. As for content operations, we promoted greater visibility for premium content through algorithm optimizations across multiple verticals such as entertainment, news, everyday life, sports and others. Leveraging Kwai’s strong user base and growing brand influence, we further optimized the monetization mechanism for creators and refined products flow to enhance their earning potential and motivation. Meanwhile, the efficiency of content subsidy programs improved steadily, supporting creators’ sustainable operations. User activity grew consistently, with the average daily time spent per DAU in Brazil rising by 4.2% year-over-year in the third quarter of 2024.
In terms of monetization, we continued to enhance marketing clients’ experience with improved traffic mechanisms and efficiency while ensuring a healthy ecosystem. We also embedded new traffic scenarios to increase marketing revenue, resulting in a year-over-year increase in online marketing revenue that doubled in the third quarter of 2024, and our total overseas revenues reached RMB1.3 billion, growing by 104.1% year-over-year. Along with this rapid revenue growth, we maintained highly efficient operations under an ROI-driven approach. This led to the operating loss from our overseas business decreasing by 75.9% year-over-year to RMB153 million in the third quarter of 2024. In addition, after more than a year of exploring e-commerce business models in Brazil, we made initial progress with our e-commerce business in terms of products, content, services and transaction efficiency, providing overseas users with more functions and services. These initial strides lay a solid foundation for our future growth overseas.
About Kuaishou
Kuaishou is a leading content community and social platform in China and globally, committed to becoming the most customer-obsessed company in the world. Kuaishou uses its technological backbone, powered by cutting-edge AI technology, to continuously drive innovation and product enhancements that enrich its service offerings and application scenarios, creating exceptional customer value. Through short videos and live streams on Kuaishou’s platform, users can share their lives, discover goods and services they need and showcase their talent. By partnering closely with content creators and businesses, Kuaishou provides technologies, products, and services that cater to diverse user needs across a broad spectrum of entertainment, online marketing services, e-commerce, local services, gaming, and much more.
Forward-Looking Statements
Certain statements included in this press release, other than statements of historical fact, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “might”, “can”, “could”, “will”, “would”, “anticipate”, “believe”, “continue”, “estimate”, “expect”, “forecast”, “intend”, “plan”, “seek”, or “timetable”. These forward-looking statements, which are subject to risks, uncertainties, and assumptions, may include our business outlook, estimates of financial performance, forecast business plans, growth strategies and projections of anticipated trends in our industry. These forward-looking statements are based on information currently available to the Group and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, many of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in the future. Underlying these forward-looking statements are a large number of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements. Except as required by law, we are not obligated, and we undertake no obligation, to release publicly any revisions to these forward-looking statements that might reflect events or circumstances occurring after the date of this press release or those that might reflect the occurrence of unanticipated events.
For investor and media inquiries, please contact
Kuaishou Technology
Investor Relations
Email: ir@kuaishou.com
|
CONDENSED CONSOLIDATED INCOME STATEMENT |
|||||||||||
|
Unaudited |
Unaudited |
||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||
|
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
|||||||
|
RMB’Million |
RMB’Million |
RMB’Million |
RMB’Million |
RMB’Million |
|||||||
|
Revenues |
31,131 |
30,975 |
27,948 |
91,514 |
80,909 |
||||||
|
Cost of revenues |
(14,217) |
(13,840) |
(13,495) |
(41,345) |
(40,810) |
||||||
|
Gross profit |
16,914 |
17,135 |
14,453 |
50,169 |
40,099 |
||||||
|
Selling and marketing expenses |
(10,364) |
(10,040) |
(8,939) |
(29,788) |
(26,298) |
||||||
|
Administrative expenses |
(796) |
(792) |
(898) |
(2,050) |
(2,762) |
||||||
|
Research and development expenses |
(3,100) |
(2,805) |
(2,967) |
(8,748) |
(9,042) |
||||||
|
Other income |
194 |
34 |
434 |
346 |
599 |
||||||
|
Other gains, net |
271 |
374 |
128 |
1,090 |
213 |
||||||
|
Operating profit |
3,119 |
3,906 |
2,211 |
11,019 |
2,809 |
||||||
|
Finance income, net |
37 |
66 |
135 |
217 |
404 |
||||||
|
Share of losses of investments |
(6) |
(19) |
(26) |
(28) |
(58) |
||||||
|
Profit before income tax |
3,150 |
3,953 |
2,320 |
11,208 |
3,155 |
||||||
|
Income tax benefits/(expenses) |
120 |
27 |
(138) |
162 |
(368) |
||||||
|
Profit for the period |
3,270 |
3,980 |
2,182 |
11,370 |
2,787 |
||||||
|
Attributable to: |
|||||||||||
|
— Equity holders of the Company |
3,268 |
3,979 |
2,181 |
11,366 |
2,788 |
||||||
|
— Non-controlling interests |
2 |
1 |
1 |
4 |
(1) |
||||||
|
3,270 |
3,980 |
2,182 |
11,370 |
2,787 |
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEET |
||||
|
Unaudited |
Audited |
|||
|
As of September 30, |
As of December 31, 2023 |
|||
|
RMB’Million |
RMB’Million |
|||
|
ASSETS |
||||
|
Non-current assets |
||||
|
Property and equipment |
13,366 |
12,356 |
||
|
Right-of-use assets |
9,759 |
10,399 |
||
|
Intangible assets |
1,064 |
1,073 |
||
|
Investments accounted for using the equity method |
163 |
214 |
||
|
Financial assets at fair value through profit or loss |
20,711 |
5,245 |
||
|
Other financial assets at amortized cost |
74 |
283 |
||
|
Deferred tax assets |
6,264 |
6,108 |
||
|
Long-term time deposits |
18,332 |
9,765 |
||
|
Other non-current assets |
732 |
492 |
||
|
70,465 |
45,935 |
|||
|
Current assets |
||||
|
Trade receivables |
6,215 |
6,457 |
||
|
Prepayments, other receivables and other current assets |
4,599 |
4,919 |
||
|
Financial assets at fair value through profit or loss |
26,846 |
25,128 |
||
|
Other financial assets at amortized cost |
518 |
950 |
||
|
Short-term time deposits |
10,903 |
9,874 |
||
|
Restricted cash |
83 |
128 |
||
|
Cash and cash equivalents |
12,466 |
12,905 |
||
|
61,630 |
60,361 |
|||
|
Total assets |
132,095 |
106,296 |
||
|
CONDENSED CONSOLIDATED BALANCE SHEET |
||||
|
Unaudited |
Audited |
|||
|
As of September 30, |
As of December 31, 2023 |
|||
|
RMB’Million |
RMB’Million |
|||
|
EQUITY AND LIABILITIES |
||||
|
Equity attributable to equity holders of the Company |
||||
|
Share capital |
– |
– |
||
|
Share premium |
269,745 |
273,459 |
||
|
Treasury shares |
– |
(88) |
||
|
Other reserves |
34,718 |
33,183 |
||
|
Accumulated losses |
(246,125) |
(257,491) |
||
|
58,338 |
49,063 |
|||
|
Non-controlling interests |
15 |
11 |
||
|
Total equity |
58,353 |
49,074 |
||
|
LIABILITIES |
||||
|
Non-current liabilities |
||||
|
Borrowings |
9,000 |
– |
||
|
Lease liabilities |
7,592 |
8,405 |
||
|
Deferred tax liabilities |
15 |
18 |
||
|
Other non-current liabilities |
19 |
21 |
||
|
16,626 |
8,444 |
|||
|
Current liabilities |
||||
|
Accounts payables |
26,084 |
23,601 |
||
|
Other payables and accruals |
22,089 |
16,592 |
||
|
Advances from customers |
4,648 |
4,036 |
||
|
Income tax liabilities |
399 |
1,222 |
||
|
Lease liabilities |
3,896 |
3,327 |
||
|
57,116 |
48,778 |
|||
|
Total liabilities |
73,742 |
57,222 |
||
|
Total equity and liabilities |
132,095 |
106,296 |
||
|
Financial Information by Segment |
||||||||||||
|
Unaudited Three Months Ended |
||||||||||||
|
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
||||||||||
|
Domestic |
Overseas |
Unallocated |
Total |
Domestic |
Overseas |
Unallocated |
Total |
Domestic |
Overseas |
Unallocated |
Total |
|
|
RMB’Million |
RMB’Million |
RMB’Million |
||||||||||
|
Revenues |
29,800 |
1,331 |
– |
31,131 |
29,896 |
1,079 |
– |
30,975 |
27,296 |
652 |
– |
27,948 |
|
Operating profit/(loss) |
3,505 |
(153) |
(233) |
3,119 |
4,498 |
(277) |
(315) |
3,906 |
3,155 |
(635) |
(309) |
2,211 |
|
Unaudited Nine Months Ended |
||||||||
|
September 30, 2024 |
September 30, 2023 |
|||||||
|
Domestic |
Overseas |
Unallocated |
Total |
Domestic |
Overseas |
Unallocated |
Total |
|
|
RMB’Million |
RMB’Million |
|||||||
|
Revenues |
88,113 |
3,401 |
– |
91,514 |
79,472 |
1,437 |
– |
80,909 |
|
Operating profit/(loss) |
11,994 |
(698) |
(277) |
11,019 |
7,152 |
(2,238) |
(2,105) |
2,809 |
|
Reconciliation of Non-IFRS Accounting Standards Measures to the Nearest IFRS Accounting Standards Measures |
|||||||||
|
Unaudited |
Unaudited |
||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||
|
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
|||||
|
2024 |
2024 |
2023 |
2024 |
2023 |
|||||
|
RMB’Million |
RMB’Million |
RMB’Million |
RMB’Million |
RMB’Million |
|||||
|
Profit for the period |
3,270 |
3,980 |
2,182 |
11,370 |
2,787 |
||||
|
Adjusted for: |
|||||||||
|
Share-based compensation expenses |
698 |
723 |
871 |
1,713 |
2,917 |
||||
|
Net fair value changes on |
(20) |
(24) |
120 |
(68) |
205 |
||||
|
Adjusted net profit |
3,948 |
4,679 |
3,173 |
13,015 |
5,909 |
||||
|
Adjusted net profit |
3,948 |
4,679 |
3,173 |
13,015 |
5,909 |
||||
|
Adjusted for: |
|||||||||
|
Income tax (benefits)/expenses |
(120) |
(27) |
138 |
(162) |
368 |
||||
|
Depreciation of property and |
997 |
997 |
1,029 |
2,971 |
2,971 |
||||
|
Depreciation of right-of-use assets |
765 |
735 |
737 |
2,216 |
2,333 |
||||
|
Amortization of intangible assets |
25 |
26 |
38 |
78 |
115 |
||||
|
Finance income, net |
(37) |
(66) |
(135) |
(217) |
(404) |
||||
|
Adjusted EBITDA |
5,578 |
6,344 |
4,980 |
17,901 |
11,292 |
||||
|
Note: |
|||||||||
|
(1) Net fair value changes on investments represents net fair value (gains)/losses on financial assets at fair value through profit or loss of our investments in listed and unlisted entities, net (gains)/losses on deemed disposals of investments and impairment provision for investments, which is unrelated to our core business and operating performance and subject to market fluctuations, and exclusion of which provides investors with more relevant and useful information to evaluate our performance. |
|||||||||
View original content:https://www.prnewswire.com/news-releases/kuaishou-technology-announces-third-quarter-2024-unaudited-financial-results-302311164.html
SOURCE Kuaishou Technology
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
ATRenew Inc. Reports Unaudited Third Quarter 2024 Financial Results
SHANGHAI, Nov. 20, 2024 /PRNewswire/ — ATRenew Inc. (“ATRenew” or the “Company”) RERE, a leading technology-driven pre-owned consumer electronics transactions and services platform in China, today announced its unaudited financial results for the three months ended September 30, 2024.
Third Quarter 2024 Highlights
- Total net revenues grew by 24.4% to RMB4,051.2 million (US$577.3 million) from RMB3,256.8 million in the third quarter of 2023.
- Income from operations was RMB24.9 million (US$3.5 million), compared to a loss from operations of RMB28.1 million in the third quarter of 2023. Adjusted income from operations (non-GAAP)[1] was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the third quarter of 2023.
- Number of consumer products transacted[2] was 9.1 million compared to 8.2 million in the third quarter of 2023.
Mr. Kerry Xuefeng Chen, Founder, Chairman, and Chief Executive Officer of ATRenew, commented, “We are delighted to report that our total net revenues reached RMB4.05 billion in the third quarter of 2024, representing a robust year-over-year growth of 24.4%. We are particularly encouraged by the widespread adoption of our consumer electronics trade-in services, which provide consumers with a seamless experience and competitive pricing. Our AHS stores maintain their industry-leading position, serving as the preferred destination for users to recycle reusable consumer products and purchase quality-assured, value-for-money pre-owned electronic devices.”
Mr. Rex Chen, Chief Financial Officer of ATRenew, added, “The third quarter marked another milestone in our path to enhanced profitability, as we achieved positive GAAP income from operations and our non-GAAP income from operations exceeded RMB100 million for the first time. These results reflect our successful initiatives to optimize operating expenses and the diminishing impact of amortization expenses from historical acquisitions. We also demonstrated our commitment to shareholder returns by repurchasing over US$12 million of our shares during the quarter. Looking ahead, we remain focused on driving operational efficiency and delivering sustainable value to our users and shareholders.”
|
[1]. See “Reconciliations of GAAP and Non-GAAP Results” for more information. |
|
[2]. “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. |
Third Quarter 2024 Financial Results
REVENUE
Total net revenues increased by 24.4% to RMB4,051.2 million (US$577.3 million) from RMB3,256.8 million in the same period of 2023.
- Net product revenues increased by 25.6% to RMB3,672.2 million (US$523.3 million) from RMB2,924.0 million in the same period of 2023. The increase was primarily attributable to an increase in the sales of pre-owned consumer electronics both through the Company’s online and offline channels.
- Net service revenues increased by 13.9% to RMB379.0 million (US$54.0 million), compared to RMB332.8 million in the same period of 2023. This increase was primarily due to an increase in the service revenue generated from PJT Marketplace and multi-category recycling business.
OPERATING COSTS AND EXPENSES
Operating costs and expenses were RMB4,028.1 million (US$574.0 million), compared to RMB3,307.5 million in the same period of 2023, representing an increase of 21.8%.
- Merchandise costs were RMB3,242.8 million (US$462.1 million), compared to RMB2,611.0 million in the same period of 2023, representing an increase of 24.2%. This was primarily due to the growth in product sales.
- Fulfillment expenses were RMB347.3 million (US$49.5 million), compared to RMB287.7 million in the same period of 2023, representing an increase of 20.7%. The increase was primarily due to (i) an increase in personnel costs and logistics expenses as the Company conducted more recycling and transaction activities compared with the same period of 2023, and (ii) an increase in operation center related expenses as the Company expanded its store networks in the third quarter of 2024.
- Selling and marketing expenses were RMB315.3 million (US$44.9 million), compared to RMB299.5 million in the same period of 2023, representing an increase of 5.3%. The increase was primarily due to (i) an increase in advertising expenses and promotional campaign related expenses, and (ii) an increase in share-based compensation expenses. The increase was partially offset by a decrease in amortization of intangible assets and deferred cost resulting from assets and business acquisitions as the maturity of some intangible assets and deferred cost in the third quarter of 2023.
- General and administrative expenses were RMB69.3 million (US$9.9 million), compared to RMB69.8 million in the same period of 2023, representing a decrease of 0.7%, primarily due to a decrease in share-based compensation expenses. The decrease was partially offset by an increase in other personnel cost.
- Technology and content expenses were RMB53.4 million (US$7.6 million), compared to RMB39.4 million in the same period of 2023, representing an increase of 35.5%. The increase was primarily due to an increase in personnel costs in connection with the ongoing maintenance of the Company’s operation centers and system.
INCOME (LOSS) FROM OPERATIONS
Income from operations was RMB24.9 million (US$3.5 million), compared to a loss from operations of RMB28.1 million in the same period of 2023.
Adjusted income from operations (non-GAAP) was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the same period of 2023.
NET INCOME (LOSS)
Net income was RMB17.9 million (US$2.6 million), compared to a net loss of RMB44.2 million in the same period of 2023.
Adjusted net income (non-GAAP) was RMB90.1 million (US$12.8 million), compared to RMB47.6 million in the same period of 2023.
BASIC AND DILUTED NET INCOME PER ORDINARY SHARE
Basic and diluted net income per ordinary share were RMB0.11 (US$0.02), compared to basic and diluted net loss of RMB0.27 in the same period of 2023.
Adjusted basic and diluted net income per ordinary share (non-GAAP) were RMB0.56 (US$0.08) and RMB0.55 (US$0.08), compared to RMB0.30 and RMB0.29 in the same period of 2023.
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 were RMB2,350.5 million (US$334.9 million) as of September 30, 2024, as compared to RMB2,854.4 million as of December 31, 2023.
Business Outlook
For the fourth quarter of 2024, the Company currently expects its total revenues to be between RMB4,740.0 million and RMB4,840.0 million, representing an increase of 22.4% to 24.9% year-over-year. 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 August 29, 2024, ATRenew announced an improvement in its Environmental, Social and Governance (ESG) score as assessed by S&P Global’s Corporate Sustainability Assessment in 2024, placing it in the 93rd percentile among its global RTS retailing industry peers. This is primarily attributable to ATRenew’s commitment to ESG, particularly greater transparency in its climate strategy, human capital management, and business ethics.
During the third quarter of 2024, ATRenew repurchased a total of approximately 4.9 million ADSs for approximately US$12.1 million under its current share repurchase program which authorizes the Company to repurchase up to US$50 million worth of its shares (including ADSs) through June 27, 2025. As of September 30, 2024, the Company had repurchased a total of approximately 8.2 million ADSs for approximately US$20.1 million under this share repurchase program.
Conference Call Information
The Company’s management will hold a conference call on Wednesday, November 20, 2024 at 07:00 A.M. Eastern Time (or 08:00 P.M. Beijing Time on the same day) 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: |
3668505 |
The replay will be accessible through November 27, 2024 by dialing the following numbers:
|
International: |
1-412-317-0088 |
|
|
United States Toll Free: |
1-877-344-7529 |
|
|
Access Code: |
3972162 |
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. ATRenew is a participant in the United Nations Global Compact, and adheres to its principles-based approach to responsible business.
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 RMB7.0176 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 September 30, 2024.
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 income from operations, adjusted net income and adjusted net income 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 income from operations is loss from operations excluding the share-based compensation expenses and amortization of intangible assets and deferred cost resulting from assets and business acquisitions. Adjusted net income is net loss excluding the share-based compensation expenses and amortization of intangible assets and deferred cost resulting from assets and business acquisitions and tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions. Adjusted net income per ordinary share is adjusted net income 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 income from operations and adjusted net income 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 income from operations and adjusted net income 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. The share-based compensation expenses, amortization of intangible assets and deferred cost resulting from assets and business acquisitions 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 income from operations, net income, and net income 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 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 September 30, |
|||||||||||
|
2023 |
2024 |
|||||||||||
|
RMB |
RMB |
US$ |
||||||||||
|
ASSETS |
||||||||||||
|
Current assets: |
||||||||||||
|
Cash and cash equivalents |
1,978,696 |
1,347,338 |
191,994 |
|||||||||
|
Restricted cash |
210,000 |
132,000 |
18,810 |
|||||||||
|
Short-term investments |
410,547 |
630,123 |
89,792 |
|||||||||
|
Amount due from related parties, net |
89,592 |
218,771 |
31,175 |
|||||||||
|
Inventories |
1,017,155 |
678,026 |
96,618 |
|||||||||
|
Funds receivable from third party payment service |
253,107 |
241,047 |
34,349 |
|||||||||
|
Prepayments and other receivables, net |
567,622 |
754,617 |
107,532 |
|||||||||
|
Total current assets |
4,526,719 |
4,001,922 |
570,270 |
|||||||||
|
Non-current assets: |
||||||||||||
|
Long-term investments |
467,095 |
558,221 |
79,546 |
|||||||||
|
Property and equipment, net |
148,223 |
159,236 |
22,691 |
|||||||||
|
Intangible assets, net |
270,631 |
100,496 |
14,321 |
|||||||||
|
Other non-current assets |
80,411 |
149,115 |
21,249 |
|||||||||
|
Total non-current assets |
966,360 |
967,068 |
137,807 |
|||||||||
|
TOTAL ASSETS |
5,493,079 |
4,968,990 |
708,077 |
|||||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
|
Current liabilities: |
||||||||||||
|
Short-term borrowings |
349,931 |
307,291 |
43,789 |
|||||||||
|
Accounts payable |
532,293 |
105,314 |
15,007 |
|||||||||
|
Contract liabilities |
119,715 |
81,571 |
11,624 |
|||||||||
|
Accrued expenses and other current liabilities |
465,123 |
478,145 |
68,135 |
|||||||||
|
Accrued payroll and welfare |
146,371 |
148,945 |
21,224 |
|||||||||
|
Amount due to related parties |
78,032 |
116,255 |
16,566 |
|||||||||
|
Total current liabilities |
1,691,465 |
1,237,521 |
176,345 |
|||||||||
|
Non-current liabilities: |
||||||||||||
|
Operating lease liabilities, non-current |
22,495 |
80,366 |
11,452 |
|||||||||
|
Deferred tax liabilities |
67,658 |
42,099 |
5,999 |
|||||||||
|
Total non-current liabilities |
90,153 |
122,465 |
17,451 |
|||||||||
|
TOTAL LIABILITIES |
1,781,618 |
1,359,986 |
193,796 |
|||||||||
|
TOTAL SHAREHOLDERS’ EQUITY |
3,711,461 |
3,609,004 |
514,281 |
|||||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS’ |
5,493,079 |
4,968,990 |
708,077 |
|||||||||
|
ATRENEW INC. |
||||||||||||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND |
||||||||||||||||||||||||
|
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
|
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||||||||||
|
2023 |
2024 |
2023 |
2024 |
|||||||||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
|
Net revenues |
||||||||||||||||||||||||
|
Net product revenues |
2,923,970 |
3,672,239 |
523,290 |
8,135,824 |
10,383,813 |
1,479,682 |
||||||||||||||||||
|
Net service revenues |
332,787 |
378,999 |
54,007 |
956,386 |
1,095,264 |
156,074 |
||||||||||||||||||
|
Operating (expenses) income (1)(2) |
||||||||||||||||||||||||
|
Merchandise costs |
(2,611,018) |
(3,242,843) |
(462,101) |
(7,188,902) |
(9,181,300) |
(1,308,325) |
||||||||||||||||||
|
Fulfillment expenses |
(287,704) |
(347,270) |
(49,486) |
(822,913) |
(985,325) |
(140,408) |
||||||||||||||||||
|
Selling and marketing expenses |
(299,491) |
(315,293) |
(44,929) |
(933,835) |
(990,607) |
(141,160) |
||||||||||||||||||
|
General and administrative expenses |
(69,826) |
(69,302) |
(9,875) |
(203,794) |
(215,671) |
(30,733) |
||||||||||||||||||
|
Technology and content expenses |
(39,430) |
(53,396) |
(7,609) |
(131,905) |
(153,391) |
(21,858) |
||||||||||||||||||
|
Other operating income, net |
22,640 |
1,751 |
250 |
32,512 |
23,082 |
3,289 |
||||||||||||||||||
|
Income (loss) from operations |
(28,072) |
24,885 |
3,547 |
(156,627) |
(24,135) |
(3,439) |
||||||||||||||||||
|
Interest expense |
(2,186) |
(3,615) |
(515) |
(5,498) |
(12,332) |
(1,757) |
||||||||||||||||||
|
Interest income |
11,083 |
8,686 |
1,238 |
24,658 |
20,611 |
2,937 |
||||||||||||||||||
|
Other (loss) income, net |
(4,428) |
47 |
7 |
(6,719) |
(41,305) |
(5,886) |
||||||||||||||||||
|
Income (loss) before income taxes and share |
(23,603) |
30,003 |
4,277 |
(144,186) |
(57,161) |
(8,145) |
||||||||||||||||||
|
Income tax benefits |
10,047 |
5,949 |
848 |
33,607 |
24,536 |
3,496 |
||||||||||||||||||
|
Share of loss in equity method investments |
(30,632) |
(18,069) |
(2,575) |
(48,449) |
(53,028) |
(7,556) |
||||||||||||||||||
|
Net income (loss) |
(44,188) |
17,883 |
2,550 |
(159,028) |
(85,653) |
(12,205) |
||||||||||||||||||
|
Net income (loss) per ordinary share: |
||||||||||||||||||||||||
|
Basic |
(0.27) |
0.11 |
0.02 |
(0.99) |
(0.53) |
(0.08) |
||||||||||||||||||
|
Diluted |
(0.27) |
0.11 |
0.02 |
(0.99) |
(0.53) |
(0.08) |
||||||||||||||||||
|
Weighted average number of shares used in |
||||||||||||||||||||||||
|
Basic |
161,338,983 |
161,405,774 |
161,405,774 |
161,393,190 |
162,011,110 |
162,011,110 |
||||||||||||||||||
|
Diluted |
161,338,983 |
164,258,720 |
164,258,720 |
161,393,190 |
162,011,110 |
162,011,110 |
||||||||||||||||||
|
Net income (loss) |
(44,188) |
17,883 |
2,550 |
(159,028) |
(85,653) |
(12,205) |
||||||||||||||||||
|
Foreign currency translation adjustments |
(5,676) |
(7,093) |
(1,011) |
15,897 |
(7,183) |
(1,024) |
||||||||||||||||||
|
Total comprehensive income (loss) |
(49,864) |
10,790 |
1,539 |
(143,131) |
(92,836) |
(13,229) |
||||||||||||||||||
|
ATRENEW INC. |
||||||||||||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND |
||||||||||||||||||||||||
|
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
|
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||||||||||
|
2023 |
2024 |
2023 |
2024 |
|||||||||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
|
(1) Includes share-based compensation |
||||||||||||||||||||||||
|
Fulfillment expenses |
(5,362) |
(3,021) |
(430) |
(17,910) |
(15,992) |
(2,279) |
||||||||||||||||||
|
Selling and marketing expenses |
(5,165) |
(12,220) |
(1,741) |
(13,266) |
(56,792) |
(8,093) |
||||||||||||||||||
|
General and administrative expenses |
(19,239) |
(13,854) |
(1,974) |
(56,182) |
(45,924) |
(6,544) |
||||||||||||||||||
|
Technology and content expenses |
(5,218) |
(3,657) |
(521) |
(15,649) |
(13,611) |
(1,940) |
||||||||||||||||||
|
(2) Includes amortization of intangible assets |
||||||||||||||||||||||||
|
Selling and marketing expenses |
(66,412) |
(46,263) |
(6,592) |
(222,337) |
(169,154) |
(24,104) |
||||||||||||||||||
|
Technology and content expenses |
(482) |
(130) |
(19) |
(1,446) |
(981) |
(140) |
||||||||||||||||||
|
Reconciliations of GAAP and Non-GAAP Results |
||||||||||||||||||||||||
|
(Amounts in thousands, except share and per share and otherwise noted) |
||||||||||||||||||||||||
|
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||||||||||
|
2023 |
2024 |
2023 |
2024 |
|||||||||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
|
Income (loss) from operations |
(28,072) |
24,885 |
3,547 |
(156,627) |
(24,135) |
(3,439) |
||||||||||||||||||
|
Add: |
||||||||||||||||||||||||
|
Share-based compensation |
34,984 |
32,752 |
4,666 |
103,007 |
132,319 |
18,856 |
||||||||||||||||||
|
Amortization of intangible assets |
66,894 |
46,393 |
6,611 |
223,783 |
170,135 |
24,244 |
||||||||||||||||||
|
Adjusted income from operations |
73,806 |
104,030 |
14,824 |
170,163 |
278,319 |
39,661 |
||||||||||||||||||
|
Net income (loss) |
(44,188) |
17,883 |
2,550 |
(159,028) |
(85,653) |
(12,205) |
||||||||||||||||||
|
Add: |
||||||||||||||||||||||||
|
Share-based compensation |
34,984 |
32,752 |
4,666 |
103,007 |
132,319 |
18,856 |
||||||||||||||||||
|
Amortization of intangible assets |
66,894 |
46,393 |
6,611 |
223,783 |
170,135 |
24,244 |
||||||||||||||||||
|
Less: |
||||||||||||||||||||||||
|
Tax effects of amortization of |
(10,047) |
(6,972) |
(994) |
(33,607) |
(25,559) |
(3,642) |
||||||||||||||||||
|
Adjusted net income (non- |
47,643 |
90,056 |
12,833 |
134,155 |
191,242 |
27,253 |
||||||||||||||||||
|
Adjusted net income per |
||||||||||||||||||||||||
|
Basic |
0.30 |
0.56 |
0.08 |
0.83 |
1.18 |
0.17 |
||||||||||||||||||
|
Diluted |
0.29 |
0.55 |
0.08 |
0.80 |
1.16 |
0.17 |
||||||||||||||||||
|
Weighted average number of |
||||||||||||||||||||||||
|
Basic |
161,338,983 |
161,405,774 |
161,405,774 |
161,393,190 |
162,011,110 |
162,011,110 |
||||||||||||||||||
|
Diluted |
166,112,358 |
164,258,720 |
164,258,720 |
167,609,332 |
165,040,389 |
165,040,389 |
||||||||||||||||||
View original content:https://www.prnewswire.com/news-releases/atrenew-inc-reports-unaudited-third-quarter-2024-financial-results-302311061.html
SOURCE ATRenew Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Chinese Fund Giants Slash ETF Fees Amid Intense Market Competition
Major Chinese fund companies have announced a reduction in fees for a selection of equity exchange-traded funds (ETFs). This move intensifies the price war in the booming $400 billion ETF market.
What Happened: The fee cuts come a day after Wu Qing, China’s chief securities regulator, expressed support for index investment and fee reform in the fund industry. ETFs, which typically track an index and trade on exchanges, have seen significant growth this year as investors turn away from underperforming active fund managers, Reuters reported on Wednesday.
China Asset Management Co (ChinaAMC), leading the ETF market, announced it would reduce fees on eight ETF products, including the 160 billion yuan China SSE 50 ETF. The management fee will drop to 0.15% from 0.5%, and the custodian fee to 0.05% from 0.1%.
See Also: Steve Madden Announces Plans To Move Production To Avoid Trump Tariffs, But There’s A Catch
Other fund companies such as E Fund Management, Huatai-PineBridge Fund Management, Harvest Fund Management, and HuaAn Fund Management have made similar announcements. This trend is expected to attract more capital into the market, with net inflows into China’s onshore ETFs surpassing 900 billion yuan this year, according to BNP Paribas.
Why It Matters: The fee reduction by major Chinese fund companies comes amid a backdrop of economic measures and market fluctuations. In October, investor sentiment was dampened when anticipated large-scale economic stimulus measures from Chinese authorities did not materialize. Despite signals of increased fiscal support, the absence of a substantial economic package left traders underwhelmed.
Furthermore, China’s decision to cut interest rates in late October led to a decline in several China-focused ETFs in the U.S. This move, aimed at stimulating economic growth, instead raised concerns among investors about its broader implications.
Meanwhile, U.S.-listed Chinese ETFs have been providing American investors exposure to Chinese equities, bonds, or a combination of both, while being traded on U.S. stock exchanges. These ETFs are a convenient way for investors to gain diversified exposure to China’s economic growth without the complexities of directly investing in foreign markets. According to Benzinga Pro, KraneShares CSI China Internet ETF KWEB, iShares China Large-Cap ETF FXI, Invesco Golden Dragon China ETF PGJ, and iShares MSCI China ETF MCHI are some of the popular names on the list.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
CrowdStreet's New CEO John Imbriglia Charts a Bold Path for Commercial Real Estate Investors
In a candid interview with Benzinga, CrowdStreet‘s newly appointed CEO, John Imbriglia, shared his vision for redefining the private market investment landscape. With over two decades of experience in alternative investments and technology, Imbriglia leads the company through a transformative phase focused on transparency, security and empowering investors with cutting-edge tools and resources. His leadership represents a turning point as CrowdStreet seeks to scale its operations and solidify its reputation as a trusted platform for independent investors.
Don’t Miss:
Since its founding, CrowdStreet has been a trailblazer in democratizing access to commercial real estate (CRE) investments. The platform has listed over 790 deals from 344 sponsors to date, raising more than $4.4 billion in investment capital. Boasting a realized IRR of 12.2% and an average hold period of 3.4 years, CrowdStreet has consistently delivered results while equipping investors with the tools they need to make confident decisions.
Imbriglia’s vision builds on this legacy, aiming to position CrowdStreet as a “Category of One” in private market investing. He described this approach as providing a trusted, all-in-one platform for education, insights and access to diverse private market opportunities. “This is about empowering our members to achieve their financial goals while maintaining the highest standards of trust, security and innovation,” he emphasized.
“We’re not just building a marketplace; we’re creating an ecosystem where investors can seamlessly explore, evaluate and invest in private market opportunities with confidence,” Imbriglia explained. The Offering Detail Page (ODP) is central to this vision, redesigned to enhance user experience.
The ODP now organizes critical information into clear tabs – Summary, Key Risks, Offering Details and Documents – enabling investors to quickly access vital data such as the sponsor’s pro forma, market insights and CrowdStreet’s due diligence reports. This initiative reflects the company’s commitment to transparency and investor empowerment.
Imbriglia also highlighted CrowdStreet’s expansion into new asset classes for 2025, including private lending, private equity and venture capital. These efforts, led by industry veteran Sheldon Chang, aim to unlock opportunities that were once exclusive to institutions and ultra-high-net-worth individuals. By broadening its offerings, CrowdStreet allows members to diversify their portfolios and pursue financial growth in the private markets.
In response to past challenges, such as the Nightingale incident, CrowdStreet has implemented industry-leading security and oversight measures. Transitioning to a FINRA-regulated broker-dealer model and funding deals through third-party escrow accounts are just a few examples of how CrowdStreet safeguards investor funds. These efforts, combined with tools like Project Status Reports, Quarterly Market Snapshots and an enhanced Offering Detail Page (ODP), reinforce the platform’s dedication to transparency and trust.
With a strengthened leadership team, expanded offerings and a clear focus on transparency, CrowdStreet is poised to lead the private market industry into its next chapter – delivering value, confidence and empowerment to a growing community of independent investors.
Read Next: Want To Grow Your Wealth Passively? These High-Yield Real Estate Notes Might Be Your Holy Grail
Don’t miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga’s favorite high-yield offerings.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
If You Bought Bitcoin At $387 A Decade Ago, You Would Now Have More Than 2X The Average US Retirement Savings
Bitcoin BTC/USD has been on a record-breaking run since Donald Trump was elected president earlier this month.
The leading cryptocurrency has been hitting new all-time highs practically every day, with the latest upswing pushing it beyond $94,000 for the first time.
Interestingly, the bullish run has made one Bitcoin worth more than the average retirement savings of Americans.
What happened: According to the Federal Reserve’s most recent Survey of Consumer Finances, the median retirement savings in the U.S. was estimated to be $86,900. This reflected an increase of 15% from 2019.
A separate study by Transamerica Center in 2023 revealed that millennials, those born between 1981 and 1996, saved only $49,000 in retirement funds, while Generation X, born between 1965 and 1980, saved $82,000.
In contrast, the value of Bitcoin has leapfrogged 23,853% in the last decade, rising from $387 in Nov. 2014 to $92,696 as of this writing.
So, if someone bought $1,000 in Bitcoin ten years ago, their investment would now be worth $239,524, more than twice the estimated retirement savings highlighted above.
Additionally, a report disclosed that the average U.S. adult estimates needing $1.46 million to retire “comfortably” in 2024, with Gen Z and Millennials needing more than $1.6 million.
If they invested around $10,000 of their wealth into Bitcoin 10 years ago, their stockpile would have been worth more than $2.39 million today.
Price Action: At the time of writing, Bitcoin was exchanging hands at $92,696, up 1.01% in the last 24 hours, according to data from Benzinga Pro.
Read Next:
Photo courtesy: Pixabay
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Higher energy bills push UK inflation to 6-month high in October
LONDON (AP) — Inflation in the U.K. rose sharply to a six-month high in October and back above the rate targeted by rate-setters at the Bank of England, official figures showed Wednesday, an increase that is set to cement market expectations that there will be no further cuts in borrowing rates this year.
The Office for National Statistics said higher domestic energy bills pushed up consumer price inflation up to 2.3% in the year to October from the three-year low of 1.7% recorded the previous month. Stubbornly high inflation in the services sector, which accounts for around 80% of the British economy, didn’t help either.
The increase, which was above forecasts for a more modest increase, took inflation above the bank’s target rate of 2%.
Earlier this month, the bank increased its main interest rate by a quarter of a percentage point to 4.75% — the second in three months — after inflation fell to its lowest level since April 2021.
However, Bank Gov. Andrew Bailey cautioned that rates wouldn’t be falling too fast over the coming months, partly because last month’s budget measures from the new Labour government would likely see prices rise by more than they would otherwise have done. Rate-setters will meet once more this year, on Dec. 19, by which time they will be armed with more monthly inflation reading.
Central banks worldwide dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues and then because of Russia’s full-scale invasion of Ukraine which pushed up energy costs. As inflation rates have fallen from multidecade highs, the central banks have started cutting interest rates, though few, if any, economists think that rates will fall back to the super-low levels that persisted in the years after the global financial crisis of 2008-9.
Recent developments have scaled back expectations of rapid cuts from the Bank of England.
In her budget, British Treasury chief Rachel Reeves announced around 70 billion pounds ($90 billion) of extra spending, funded through increased business taxes and borrowing. Economists think that the splurge, coupled with the prospect of businesses cushioning the tax hikes by raising prices, could lead to higher inflation next year.
The global inflation outlook has become more uncertain since Donald Trump was reelected U.S. president. He has indicated that he will cut taxes and introduce tariffs on certain imported goods when he returns to the White House in January. Both policies have the potential to be inflationary both in the U.S. and globally, and thereby keeping interest rates higher than they otherwise would have been.