SHANGHAI, July 13, 2021 /PRNewswire/ -- AiHuiShou International Co. Ltd. ("ATRenew" or the "Company") /zigman2/quotes/227438161/composite RERE +1.02% , a leading technology-driven pre-owned consumer electronics transactions and services platform in China, today announced its response to the 14th Five-Year Plan (2021-2025) for Circular Economy Development released by the National Development and Reform Commission (the "NDRC"). The Company pursues its mission "to give a second life to all idle goods," supporting the development of a circular economy. As of March 31, 2021, the Company had donated pre-owned iPads procured from AHS Recycle worth over RMB0.6 million in value to elementary schools in rural areas to support local education, helping tens of thousands of students.
On July 7, the NDRC pointed out that in this new stage of development, China must develop a circular economy by establishing a resource-recycling industrial system and a recycling system for discarded goods. This plan encourages the development of the online pre-owned transaction model, strengthens the management responsibilities of internet trading platforms, tightens the supervision of transactions, and encourages platforms to introduce third-party pre-owned transaction merchants. In addition, the plan highlights the importance to establish and improve the standards for identification, evaluation, and classification of pre-owned products such as vehicles, household appliances, and mobile phones to improve regulation and standardize the circulation and transactions for pre-owned goods.
As an environmentally friendly company contributing to the recycling of pre-owned consumer products, ATRenew serves as an example for companies focused on environmental, social, and governance (ESG) criteria. The Company commits to the research and development of user data removal technology to ensure user privacy, extends the lifecycle of electronic products to reduce carbon emissions and environmental pollution, and improves the supply chain capabilities for pre-owned electronic devices to promote the sustainability and standardization of the industry.
Currently, the company's business lines include AHS Recycle (China's leading online and offline offering for recycle and trade-in services primarily for reuse), PJT Marketplace (China's leading B2B marketplace for trading electronic products and services), and Paipai Marketplace (a retail marketplace for pre-owned products of certified quality) and AHS Device (the Company's international portal for pre-owned consumer electronics). Through the combination of AHS Recycle, PJT Marketplace, and Paipai Marketplace, ATRenew transacts with consumers and merchants on both the supply and demand side, integrating C2B, B2B, and B2C capabilities to cover the entire pre-owned consumer electronics value chain. ATRenew obtains pre-owned consumer electronics, processes the devices for resale through its proprietary inspection, grading, and pricing technologies at its operation centers, then distributes the processed devices to a variety of purchasers. By setting new industry standards, the Company makes transactions and services for pre-owned consumer electronics more user-friendly, standardized, and efficient.
The number of consumer products transacted on the Company's platforms reached 23.6 million in 2020. These products were primarily consumer electronics, approximately 67.7% of which were mobile phones. According to the China Insights Consultancy, an independent research firm commissioned by the Company, China's pre-owned consumer electronics transactions and services market by total number of devices transacted to merchants and consumers is expected to grow at a compound annual growth rate of 23.7% from 2020 to 2025 and is forecasted to reach 545.8 million units by 2025. Currently, the penetration rate of consumer electronic devices relative to number of consumer electronic devices in circulation, which is calculated as: number of unique traded pre-owned devices divided by total number of devices in circulation, is still as low as 3.7% in 2020, implying significant growth potential.
Mr. Huiqiang Zheng, Chairman of the Shanghai Services Federation and director of the Industrial Innovation Ecosystem Research Center of Tongji University, Shanghai Soft Science Research Base, commented, "ATRenew integrates corporate social responsibility and sustainable business practices into its daily operations. This not only improves standardization and enlarges the scale of the pre-owned consumer electronics transactions and services industry, but also promotes the industry's sustainable development through enhanced technology and supply chain capabilities. ATRenew was the first company in the industry to begin developing an automated operations system for the transportation, quality inspection, sorting, and storage of pre-owned consumer electronics. Doing so has improved efficiency in the circulation of pre-owned consumer electronics and helps the industry leap into the era of automation."
Mr. Kerry Xuefeng Chen, Founder and CEO of ATRenew, said, "We will continue to carry out our mission of 'giving a second life to all idle goods' and adhere to our vision of 'enabling pre-owned consumer electronics transactions and services globally'. In doing so, we will help to promote the development of the circular economy in accordance with the NDRC's Five-Year Plan, while continuing to focus on long-term value creation for our shareholders."
About AiHuiShou International Co. Ltd.
Headquartered in Shanghai, AiHuiShou International Co. Ltd. ("ATRenew") /zigman2/quotes/227438161/composite RERE +1.02% operates a leading technology-driven pre-owned consumer electronics transactions and services platform in China under the brand ATRenew, which stands for "All Things Renew." 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.
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.
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