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ATRenew Eyes Global Market as China's Recycling Giant Plots Ambitious Export Push

MarketDash Editorial Team
6 days ago
The electronics recycling specialist reported record profits and a 27% revenue jump in Q3, while unveiling plans to export Chinese devices internationally over the next two to three years. With 14 years of refurbishment expertise and growing margins, ATRenew is betting its AHS Recycle brand can capture global market share.

After spending 14 years perfecting the art of recycling smartphones, computers, and electronics in China, ATRenew Inc. (RERE) thinks it's ready for the world stage. The company has figured out how to collect, refurbish, and resell used gadgets at scale, and now it wants to take that expertise global. The pitch is straightforward: China's leading recycler has state-of-the-art capabilities that took more than a decade to develop, so why not leverage them internationally?

This global expansion ambition took center stage when ATRenew laid out its roadmap for the next two to three years during its earnings call on November 20. The company wasn't just talking about vague future plans, either. It's already moving, with more than 10,000 China-sourced devices heading overseas each month. Hong Kong is emerging as the export hub, which makes sense given its international orientation and position as a gateway between China and the rest of the world.

The international push comes at a moment when ATRenew's core business is humming along nicely. Third-quarter revenue climbed 27% year-over-year to 5.15 billion yuan, driven by growing awareness of its services beyond just smartphones. People are catching on that you can recycle not just your old iPhone, but also luxury handbags and vintage liquor through the company's expanding ecosystem.

Profits Hit Record Levels

Here's what really matters: ATRenew recorded its fifth consecutive quarterly profit, and this one hit a record high. The company's GAAP net income surged 407% to 90.8 million yuan, while adjusted operating income jumped nearly 35% to 140 million yuan. These aren't flukes or accounting tricks. The business is genuinely becoming more efficient as it gains scale and experience.

You can see that efficiency in the margins. Gross margin for product sales, which make up 92% of total revenue, rose to 13.4% from 11.7% a year earlier. That might not sound dramatic, but in a recycling business where you're dealing with used products, every percentage point counts. The company's merchandise costs dropped to 86.6% of total revenue from 88.3% a year earlier, reflecting better operations across the board.

Founder and Chairman Chen Xuefeng (who goes by Kerry in English) explained on the earnings call that international expansion will become a major priority over the next two to three years. The company has dabbled internationally before through partnerships in places like Japan and Sweden, but this sounds more serious. Chen outlined two potential paths forward: launching an international version of its B2B-focused PJT Marketplace platform, and partnering with strategic allies to explore retail opportunities in global markets.

"Looking forward, as domestic recycling penetration rates increase and standards become further clarified, we believe there will be more exports," Chen said. The timing makes sense. As China's domestic recycling market matures, finding new growth avenues becomes essential.

Royal Recognition and Environmental Credentials

The company also dropped an interesting tidbit: it was named a finalist for this year's Earthshot Prize, a global environmental award founded by Britain's Prince William. The prize recognizes "outstanding contributions across five categories aimed at repairing our planet." That kind of recognition could help ATRenew's export campaign by boosting its international profile and environmental credibility.

The international expansion is actually just one piece of a "three-stage development strategy" the company detailed for the next two to three years. The other two components focus on strengthening core capabilities and accelerating the positioning of AHS Recycle as "China's leading recycling brand."

The timing here aligns with China's broader policy environment. The country is currently crafting its 15th Five Year Plan for 2026 to 2030, and recycling will almost certainly feature prominently as part of environmental protection and carbon reduction efforts. Companies like ATRenew stand to benefit from strong state support, which can come in various forms: government grants, low-interest loans, faster approvals for new facilities, and smoother permit processes.

Shifting Strategy on Store Growth

There's an interesting tactical shift happening in how ATRenew reaches customers. The company is giving more emphasis to its rapidly growing team of fulfillment specialists who make in-person visits to people looking to trade in their products. This team of over 1,000 people complements the company's network of 2,195 AHS recycling stores as of September.

But here's the notable change: ATRenew is slowing its aggressive store expansion pace. It added about 100 new outlets in the third quarter, roughly half the 206 it opened in Q2. Chen explained that "the pace of new store openings will be dynamically balanced with the expansion of our to-door service teams to ensure the efficiency of both our physical locations and personnel." Translation: they're finding that sending people to customers' homes might be more cost-effective than opening stores everywhere.

This omnichannel approach combines offline stores and customer service teams with online trading across C2B, B2B, and B2C scenarios. The strategy covers a lot of ground, and it's working. The company isn't just sticking to electronics anymore, either. Its "multi-category" business, launched two years ago, now handles used handbags, gold, and vintage liquor from 1,009 stores. Transaction volumes in this segment jumped 95% year-over-year in Q3.

That said, multi-category remains relatively small, accounting for about 53 million yuan ($7.46 million), or 12.5% of service revenue in the third quarter. The vast majority of revenue still comes from product sales, which grew 28.7% to 4.73 billion yuan from 3.67 billion yuan a year earlier.

Operational Efficiency Gains

The improving financial performance reflects several operational improvements. ATRenew is selling more recycled and refurbished products directly to consumers rather than wholesaling them, which captures more margin. The company has automated more processes and does more recycling at the city level to reduce transportation and logistics costs. These aren't revolutionary changes, but they add up to meaningful margin improvement over time.

The company's ability to consistently turn a profit while growing rapidly suggests it's found a sustainable model. Many high-growth companies struggle to balance expansion with profitability, but ATRenew seems to have cracked that code, at least in its home market. The question now is whether it can replicate that success internationally, where it will face different regulations, consumer behaviors, and competitive dynamics.

With exports already underway and a clear roadmap for the next few years, ATRenew is making a calculated bet that its recycling expertise can travel. If it works, the company could tap into global demand for sustainable consumption and circular economy solutions. If it doesn't, well, at least the core Chinese business is throwing off record profits.

Back to News

ATRenew Eyes Global Market as China's Recycling Giant Plots Ambitious Export Push

MarketDash Editorial Team
6 days ago
The electronics recycling specialist reported record profits and a 27% revenue jump in Q3, while unveiling plans to export Chinese devices internationally over the next two to three years. With 14 years of refurbishment expertise and growing margins, ATRenew is betting its AHS Recycle brand can capture global market share.

After spending 14 years perfecting the art of recycling smartphones, computers, and electronics in China, ATRenew Inc. (RERE) thinks it's ready for the world stage. The company has figured out how to collect, refurbish, and resell used gadgets at scale, and now it wants to take that expertise global. The pitch is straightforward: China's leading recycler has state-of-the-art capabilities that took more than a decade to develop, so why not leverage them internationally?

This global expansion ambition took center stage when ATRenew laid out its roadmap for the next two to three years during its earnings call on November 20. The company wasn't just talking about vague future plans, either. It's already moving, with more than 10,000 China-sourced devices heading overseas each month. Hong Kong is emerging as the export hub, which makes sense given its international orientation and position as a gateway between China and the rest of the world.

The international push comes at a moment when ATRenew's core business is humming along nicely. Third-quarter revenue climbed 27% year-over-year to 5.15 billion yuan, driven by growing awareness of its services beyond just smartphones. People are catching on that you can recycle not just your old iPhone, but also luxury handbags and vintage liquor through the company's expanding ecosystem.

Profits Hit Record Levels

Here's what really matters: ATRenew recorded its fifth consecutive quarterly profit, and this one hit a record high. The company's GAAP net income surged 407% to 90.8 million yuan, while adjusted operating income jumped nearly 35% to 140 million yuan. These aren't flukes or accounting tricks. The business is genuinely becoming more efficient as it gains scale and experience.

You can see that efficiency in the margins. Gross margin for product sales, which make up 92% of total revenue, rose to 13.4% from 11.7% a year earlier. That might not sound dramatic, but in a recycling business where you're dealing with used products, every percentage point counts. The company's merchandise costs dropped to 86.6% of total revenue from 88.3% a year earlier, reflecting better operations across the board.

Founder and Chairman Chen Xuefeng (who goes by Kerry in English) explained on the earnings call that international expansion will become a major priority over the next two to three years. The company has dabbled internationally before through partnerships in places like Japan and Sweden, but this sounds more serious. Chen outlined two potential paths forward: launching an international version of its B2B-focused PJT Marketplace platform, and partnering with strategic allies to explore retail opportunities in global markets.

"Looking forward, as domestic recycling penetration rates increase and standards become further clarified, we believe there will be more exports," Chen said. The timing makes sense. As China's domestic recycling market matures, finding new growth avenues becomes essential.

Royal Recognition and Environmental Credentials

The company also dropped an interesting tidbit: it was named a finalist for this year's Earthshot Prize, a global environmental award founded by Britain's Prince William. The prize recognizes "outstanding contributions across five categories aimed at repairing our planet." That kind of recognition could help ATRenew's export campaign by boosting its international profile and environmental credibility.

The international expansion is actually just one piece of a "three-stage development strategy" the company detailed for the next two to three years. The other two components focus on strengthening core capabilities and accelerating the positioning of AHS Recycle as "China's leading recycling brand."

The timing here aligns with China's broader policy environment. The country is currently crafting its 15th Five Year Plan for 2026 to 2030, and recycling will almost certainly feature prominently as part of environmental protection and carbon reduction efforts. Companies like ATRenew stand to benefit from strong state support, which can come in various forms: government grants, low-interest loans, faster approvals for new facilities, and smoother permit processes.

Shifting Strategy on Store Growth

There's an interesting tactical shift happening in how ATRenew reaches customers. The company is giving more emphasis to its rapidly growing team of fulfillment specialists who make in-person visits to people looking to trade in their products. This team of over 1,000 people complements the company's network of 2,195 AHS recycling stores as of September.

But here's the notable change: ATRenew is slowing its aggressive store expansion pace. It added about 100 new outlets in the third quarter, roughly half the 206 it opened in Q2. Chen explained that "the pace of new store openings will be dynamically balanced with the expansion of our to-door service teams to ensure the efficiency of both our physical locations and personnel." Translation: they're finding that sending people to customers' homes might be more cost-effective than opening stores everywhere.

This omnichannel approach combines offline stores and customer service teams with online trading across C2B, B2B, and B2C scenarios. The strategy covers a lot of ground, and it's working. The company isn't just sticking to electronics anymore, either. Its "multi-category" business, launched two years ago, now handles used handbags, gold, and vintage liquor from 1,009 stores. Transaction volumes in this segment jumped 95% year-over-year in Q3.

That said, multi-category remains relatively small, accounting for about 53 million yuan ($7.46 million), or 12.5% of service revenue in the third quarter. The vast majority of revenue still comes from product sales, which grew 28.7% to 4.73 billion yuan from 3.67 billion yuan a year earlier.

Operational Efficiency Gains

The improving financial performance reflects several operational improvements. ATRenew is selling more recycled and refurbished products directly to consumers rather than wholesaling them, which captures more margin. The company has automated more processes and does more recycling at the city level to reduce transportation and logistics costs. These aren't revolutionary changes, but they add up to meaningful margin improvement over time.

The company's ability to consistently turn a profit while growing rapidly suggests it's found a sustainable model. Many high-growth companies struggle to balance expansion with profitability, but ATRenew seems to have cracked that code, at least in its home market. The question now is whether it can replicate that success internationally, where it will face different regulations, consumer behaviors, and competitive dynamics.

With exports already underway and a clear roadmap for the next few years, ATRenew is making a calculated bet that its recycling expertise can travel. If it works, the company could tap into global demand for sustainable consumption and circular economy solutions. If it doesn't, well, at least the core Chinese business is throwing off record profits.