Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to ATRenew Inc.'s third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks. Please note, today's event is being recorded. I will now turn the call over to the first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the company. Please go ahead, sir. Thank you. Hello everyone, and welcome to ATRenew's third quarter 2024 earnings conference call. Speaking first today is Kerry Chen, our founder, chairman, and CEO, and he'll be followed by Rex Chen, our CFO. After that, we'll open the call to the questions from analysts. The third quarter 2024 financial results were released earlier today. The earnings press release and investor slides accompanying this call are available at our IR website, ir.atrenew.com. There will also be a transcript following this call for your convenience. For today's agenda, Kerry will share his thoughts of our quarterly performance and business strategy, followed by Rex, who will address the financial highlights. Both Kerry and Rex will join the Q&A session. Please pay attention to the safe harbor statements. Some of the information you will hear during our discussion today will consist of forward-looking statements, and I refer you to our safe harbor statements in the earnings press release. Any forward-looking statements that management makes on this call are based on assumptions as of today, and that ATRenew does not take any obligations to upgrade our assumptions on these statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures. Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in RMB, and all comparisons are on a year-over-year basis. I'd now like to turn the call over to Kerry for business and strategy updates. 各位投资者和分析师，大家好。欢迎各位参加万物新生集团2024年第三季度的业绩电话会。我们很高兴与各位分享集团的业绩，助力消费品以旧换新的最新实践，以及我们对二手行业的战略思考。 Hello everyone, and welcome to ATRenew's third quarter 2024 earnings conference call. We are pleased to share our performance highlights, our latest practices in promoting consumer goods trade-ins, and our strategic insights on the pre-owned industry. 回顾三季度的业绩，集团总收入为40.5亿元人民币，实现了24.4%的同比增长，符合我们之前的预估水平。具体来看，产品收入同比增长达到25.6%，其中内地市场的主营回收业务收入同比增长超过30%。在中国二手手机3C回收与交易的整体市场环境中，我们的主营回收业务大幅领先于行业增速。 Our total revenue for the third quarter raised CNY 4.05 billion, achieving year-over-year growth of 24.4%, which is in line with our focus. To dive deeper, product revenue grew by 25.6% year-over-year. Breakdown by sources, our core recycling business revenue in mainland China increased by over 30% year-over-year, significantly outpacing the growth of the overall second-hand consumer electronics recycling and transaction market in China. 在消费节奏放缓的时期，用户对于闲置物品回收变现的需求持续增长。我们持续加强门店布局。截止2024年三季度末，我们在全国运营1,637间二手门店。线下门店作为回收端的主要交付场景，是提升用户信任和获取一手回收货源的重要渠道。为此，我们会不断提升二手门店的服务能力和用户体验，锁定二手作为第一回收品牌的用户心智。接下来的两到三年，我们预计会加速开店的节奏。 As consumer spending slows down, we keep our pace to open new physical stores to meet growing demand for the recycling of idle goods. At the end of the third quarter this year, we had a total of 1,637 AHS stores nationwide. Physical stores, as our primary consumer touchpoints to collect pre-owned products, remain the most crucial channel for building user trust and securing first-hand sources of supply. We will continue to enhance our AHS stores' service capabilities and user experience to reinforce the top-of-mind brand awareness of AHS Recycle. As a result, we anticipate accelerating our store opening in the next two to three years. 在回收端的趋势上，我们在上一个季度财报会上分享，以旧换新已经成为越来越主流的用户选项。即使是在手机3C品类没有得到国家补贴的情况下，在三季度通过京东渠道的回收和以旧换新业务带来的总回收额的增长超过了40%。其中，以旧换新实现了翻倍的增长。值得一提的是，近期的双十一的大促，通过联合京东通讯共同投入用户体验和交付，我们创造了近年来最快的增速记录。双十一全周期，京东渠道的回收总业绩同比增长77%，其中，以旧换新受到了更广泛用户的喜爱，业绩同比增长246%。严选业务在京东上面的同比增长也达到了71%。这些将反映在我们四季度的业绩表现中。在国家开展大规模消费品以旧换新的消费刺激政策下，我们充分发挥长期储备的供应链能力优势，与京东共建共同建设从回收质检到销售的全链条能力，为用户提供行业最佳的以旧换新服务体验。此外，第三季度我们的苹果官方以旧换新业务也取得了健康增长，毛利率取得了较好的环比改善。 Regarding the trend of our recycling business, we shared interim data during our second quarter earnings call that highlighted the growing mainstream adoption of trade-in services among users. Although smartphones and other consumer electronics have not yet been provided with direct trade-in subsidies, we observed strong demand for trade-in services. In the third quarter, the value of goods collected through JD.com via regular recycling and trade-in services increased by over 40% year-over-year, of which trade-in services doubled year-over-year. It is worth mentioning that in recent Singles' Day grand promotions, we worked closely with JD Electronics Business Group by co-investing in user experience and order fulfillment capabilities. We have achieved the fastest growth rate in recent years. During the grant promotion, the total value of products recycled via JD.com increased by 77% year-over-year. Trade-in solutions became even more popular, generating a year-over-year increase of 246% in value of products collected. On the sales front, 1P retail revenue generated from JD.com increased by 71% year-over-year. These highlights will be reflected in our fourth quarter earnings. Against the backdrop of China's national consumption stimulus and trade-in subsidies, we fully utilized our established supply chain capabilities and end-to-end fulfillment capabilities covering recycling, inspection, and distribution co-built with JD.com, relentlessly advancing cutting-edge trade-in user experience. Additionally, in the third quarter, our Apple official trade-in program also achieved healthy growth, with a steady improvement in gross profit margin sequentially. 多品类回收业务依托二手门店的场景，模式清，体验好，业绩增长亮眼。本季度多品类回收额同比增长超过270%，带来了服务收入同比增长超过400%。截止9月末，全国587间二手门店已配备多品类回收的能力。我们相信，轻资产投入可控的品类拓展可以提升用户服务品质，这帮助我们获取手机3C回收用户的重要途径之一，带动用户更频繁地来到二手门店使用我们的服务，同时为已有的门店贡献增量利润，加强我们门店的行业竞争力。 In our category expansion efforts, the transaction value of goods and the unallotted category recycling business increased by 270% year-over-year. This asset-like platform business, providing innovative user experience, is rooted in our existing stores. In the third quarter, service revenue generated from this segment grew by 400% year-over-year. As of the end of September, 587 AHS stores nationwide offered multi-category recycling services. The asset-like multi-category recycling business also serves as a key driver for obtaining higher service frequency and store visits per user, acquiring cross-selling. It also contributes incremental profit to existing stores and strengthens the competitive position of our stores. 在销售端，用户对于二手优品的接受度正在增加。我们的严选2C零售依托自营回收和质检的供应链，在线上京东开拍的场景，在二手官网及线下门店等场景开展销售，以满足更多用户对于具有性价比的二手手机电子产品的选购需求。三季度，我们的严选二手商品在京东开拍渠道、二手官网渠道和门店的自营渠道，以及自新媒体零售渠道的销售收入分别实现了87.4%、301.3%、114.6%的同比增长。总收入达到9.7亿元，延续了二季度的势头，实现了超过120%的同比增长。 On the selling end, our direct-to-consumer sales have been particularly strong, as consumers are more open to pre-owned products. Leveraging our proprietary supply chain capabilities, our effective consumer engagement channels like Paipai on JD.com, AHS Recycle official websites, and physical stores meet growing user demand for value-driven pre-owned electronic products. In the third quarter, 1P product revenue through Paipai on JD.com, AHS Recycle official websites and stores, as well as new media retail channels grew by 87.4%, 301.3%, and 114.6% year-over-year, respectively. 在平台服务收入方面，三季度实现了13.9%的同比增长，占总收入的比例为9.4%。服务的综合收费率为5.34%，环比稳定。其中拍卖场主营成色机收费率同比提升0.5%。拍卖POP业务适当调低了收费率，向严选和贱卖模式升级转型。 Regarding service revenue, which accounted for 9.4% of total revenues, it increased by 13.9% year-over-year in the third quarter on an aggregated take rate of 5.34%. Take rate of core Paipai Marketplace business had a 0.5% uplift compared to the same period of 2023. Take rate of Paipai POP business adjusted down slightly, while Paipai pivoted for its direct retail functions and upgraded its consignment offering. 利润层面，本季度集团实现了Non-GAAP的经营利润1.04亿元，Non-GAAP的经营利润率达到了2.6%，并首次实现了GAAP层面的经营利润转正，达2,490万元。这与我们的规模效应相关，稍后由CFO Rex展开分享。 On the profitability front, we achieved a Non-GAAP operating income of RMB 104 million this quarter, with a Non-GAAP operating margin of 2.6%, and are reporting our first GAAP operating income of RMB 24.9 million. This achievement is closely tied to our economies of scale, which our CFO Rex will elaborate on later. 下面我来分享一下对于二手行业增速和趋势的理解。行业增速方面，基于IDC二手手机行业的报告和平台交易数据分析，国内二手手机消费电子产品行业正在以10%左右的增速发展。我们的第一个具体判断是，以旧换新的增速超过大盘，是更受国内用户欢迎的回收方式，正在驱动二手行业的发展。第二个判断是，在消费节奏放缓时期，用户对于闲置物品回收的需求，以及对于高品质二手手机的购买需求都将持续增长。 We have observed, referencing IDC market insights, that China's second-hand consumer electronics industry is growing by roughly 10% year-over-year. We believe, firstly, trading becomes a trendy option among users, thus outpacing and driving the growth of the industry. Secondly, as consumer spending slows down, the demand for the disposal of pre-owned products and value-for-money quality assured pre-owned smartphones continues to grow. 正如大家感受到的一样，二手回收和交易是一个处于成长阶段的市场，其中二手手机3C是集团业务的基本盘。我们需要长期坚持的是夯实场景加供应链的核心优势和用户对于二手品牌的信赖，高效率地服务用户并获取更多的一手回收货源。同时，拉通C端和B端的货源，实现一盘货的高效流转。通过自有供应链能力，做好合规的产业链翻新增值，实现更多商品可以2C零售，从而更大规模释放规模效应和产业链的价值。同时，我们也认为在二手消费的大市场中，无论是手机3C消费电子产品，还是黄金首饰、箱包腕表、名酒潮鞋等商品，都具有独特的用户需求和规模化的交易价值。二手回收将不断创新，以体验为核心，服务个人用户对手机数码以及更多品类商品的回收和二手交易需求。 As many of you have experienced, the second-hand market is in its growth stage. For our core second-hand consumer electronics business, which is our business foundation, our long-term strategy focuses on strengthening our scenario plus supply chain advantages and consumer trust in the AHS Recycle brand, efficiently serving users while securing more first-hand sources of supply. By integrating supplies from consumers and businesses, leveraging our supply chain capabilities for compliance refurbishment, and increasing retail sales to consumers, we are achieving effective economies of scale and unleashing the value of the industry. We believe that within this massive second-hand market, whether consumer electronics or gold and accessories, bags and watches, vintage liquor or trendy footwear, there are unique trading characteristics and substantial market value. We will relentlessly focus on innovation, keep user experience centric, and expand our offerings to cover more services and product categories. 品牌上，我们深信用户价值创造将在抖音、快手等新媒体平台上逐步加大投入，对二手第一回收品牌的品牌心智持续教育和加强。 As we remain steadfast in creating user value, we are committed to building AHS Recycle into a top-of-mind brand in the long run. We continue educating consumers of the AHS Recycle brand via progressive brand exposure on new media platforms such as Douyin and Kuaishou. 展望长期发展，万物新生的目标是继续夯实二手回收交易服务与优品零售的领军地位，持续加强第一回收品牌的心智，为用户提供有价格竞争力的回收和以旧换新体验，并在业绩方面努力实现大幅领先于行业增速的成长。 Looking at longer-term development, we are committed to doubling the growth rate of the industry by further acquiring user mindshares, serving their needs for competitive recycling and trading experiences, and solidifying our industry-leading position in the full spectrum of recycling, transaction, and retailing services. 此外，在ESG方面，今年以来，二手与多个知名消费品品牌共同发起返航新生的活动，比如与欧莱雅集团达成战略合作，以新模式的美妆空瓶回收换欧莱雅品牌好礼。通过这些活动提升品牌对于循环经济的参与，鼓励用户积极的环保态度，也提升了二手回收主营业务的认知转化和复购。下面请公司的CFO Rex介绍一下财务情况。 This year, on the front of ESG, AHS Recycle has initiated the Revive 返航新生 campaign in collaboration with leading consumer brands. We established a group-wide strategic partnership with L'Oréal Group, encouraging consumers to responsibly dispose of empty cosmetic containers in exchange for physical gifts of L'Oréal brands. In addition to user attraction and repeated use of our services, this initiative encourages broader consumer brands' participation in eco-friendly recycling while raising awareness about environmental protection. Now, I'd like to turn the call over to our CFO, Rex for financial updates. 各位投资者好，同时大家好。很高兴可以与各位交流万物新生集团的第三季度业绩。本季度集团总收入保持有利的增长，再次实现Non-GAAP经营利润，并在GAAP口径下首次实现季度性的经营利润，达成新的里程碑。在解读财务数据之前，请注意，除非另有说明，所有金额均以人民币为单位，所有增速数据均为同比。 Hello everyone, we are pleased to record another profitable quarter and the Non-GAAP measures, and the first quarterly operating profit milestone and their GAAP measures on strong year-over-year growth of total revenues. Before taking a detailed look at the financials, please note that all amounts are in RMB and all comparisons are on a year-over-year basis unless otherwise stated. 第三季度集团总收入增长24.4%，到了40.51亿元，主要得益于产品收入的持续稳健增长。产品收入增长25.6%，到了36.72亿元，主要得益于公司线上和线下渠道二手消费电子产品销售的增长。 In the third quarter, total revenues increased by 24.4% to CNY 4,051 million, primarily driven by ongoing solid growth in net product revenues. Net product revenues increased by 25.6% to CNY 3,672 million, primarily driven by increased sales of pre-owned consumer electronics through our online and offline channels. 服务收入为3.79亿元，增长13.9%，主要得益于拍机场平台和平台模式的多品类回收业务，产生了服务收入的增加。我们的平台服务收入随交易规模的增长而同步增长。三季度的平台综合收费率为5.34%，服务收入中超过3,000万元来自于快速发展的多品类回收业务。多品类回收的平均收费率健康提升，我们的多品类回收业务在三季度贡献了接近9%的服务收入，而2023年同期为1.7%。 Net service revenues were CNY 379 million, representing an increase of 13.9%. The increase was primarily due to an increase in service revenue generated from Paipai Marketplace and the multi-category recycling business. The growth in service revenues went along with the upward trend in the overall gross transaction value of our marketplaces, delivering an overall marketplace take rate of 5.34% in the third quarter of 2024. During the quarter, multi-category recycling business contributed over CNY 30 million to service revenues, delivering a healthy improvement in take rate. Our multi-category recycling business attributed to close to 9% of service revenues in the third quarter of 2024, compared with 1.7% in the same period of 2023. 在费用端，我们增加了Non-GAAP口径的费用分析，以更清楚地展示实际运营费用的趋势。关于GAAP和Non-GAAP口径之间的调整，请参考我们的季度财务报告与成交给美国证券交易委员会的6K表格。 Now, let's discuss our operating expenses. To provide greater clarity on the trends in our actual operating base expenses, we will also discuss our Non-GAAP operating expenses, which better reflect how management views our results of operations. The reconciliations of GAAP and Non-GAAP measures results are available in our earnings release and the corresponding Form 6K furnished with the U.S. SEC. 商品成本增加了24.2%，至32.43亿元，与产品销售的增长一致。第三季度集团成员的毛利率为20%，而去年同期为19.8%。我们EP业务的毛利率为11.7%，而去年同期为10.7%。 Merchandise cost increased by 24.2% to CNY 3,243 million, in line with the growth in product sales. Gross margin at the group level was 20% in the third quarter, compared with 19.8% in the same period last year. Gross profit margin for our 1P business was 11.7%, compared with 10.7% in the same period last year. 履约费用增长20.7%，至3.47亿元。不含股权激励费用的Non-GAAP履约费用增长21.9%，至3.44亿元。Non-GAAP履约费用增长的主要原因有：一、一方面回收和交易量的增加导致人力和物流费增加；二、另一方面，由于集团在2024年第三季度拓展了线下门店网络，与门店相关的履约费用相应增长。Non-GAAP履约费用率从去年同期的8.7%下降到了8.5%。 Fulfillment expenses increased by 20.7% to RMB 347 million, excluding share-based compensation expenses, which we will refer to as SBC from here on. Non-GAAP fulfillment expenses increased by 21.9% to RMB 344 million. Under the Non-GAAP measures, the increase was primarily due to, first, an increase in personnel costs and logistics expenses as we conducted more recycling and transaction activities compared with the same period of 2023, and second, an increase in operation facility-related expenses as we expanded our store networks in the third quarter of 2024. Non-GAAP fulfillment expenses as a percentage of total revenues decreased to 8.5% from 8.7%. 销售费用增加5.3%至3.15亿元，不含SBC费用以及因收购产生的无形资产摊销和递延成本。Non-GAAP销售费用增加12.7%至2.57亿元，主要原因为广告和促销活动相关的费用增加。Non-GAAP销售费用率从去年同期的7%下降至6.3%。 Selling and marketing expenses increased by 5.3% to CNY 350 million, excluding SBC expenses and amortization of intangible assets and deferred costs resulting from assets and business acquisitions. Non-GAAP selling and marketing expenses increased by 12.7% to CNY 257 million, primarily due to an increase in advertising expenses and promotional campaign-related expenses. Non-GAAP selling and marketing expenses as a percentage of total revenues decreased to 6.3% from 7%. 管理费用减少0.7%至6,930万元，不含SBC费用的Non-GAAP管理费用增加9.5%至5,540万元，主要由于人员成本以及办公相关开支增加。Non-GAAP管理费用率从去年同期的1.6%降至1.4%。 General and administrative expenses decreased by 0.7% to 69.3 million. Excluding SBC expenses, non-GAAP G&A expenses increased by 9.5% to 55.4 million, primarily due to increases in personnel costs and office-related expenses. Non-GAAP G&A expenses as a percentage of total revenues decreased to 1.4% from 1.6%. 研发费用增长35.5%至5,340万元，不含SBC费用与无形资产摊销和递延成本。Non-GAAP研发费用增长47.2%至4,960万元，主要由于与集团运营中心和系统持续维护相关的人员成本增加。Non-GAAP研发费用率从去年同期的1%增加到1.2%。 Technology and content expenses increased by 35.5% to CNY 53.4 million, excluding SBC expenses and amortization of intangible assets and deferred costs resulting from assets and business acquisitions. Non-GAAP technology and content expenses increased by 47.2% to CNY 49.6 million. The increase was primarily due to an increase in personnel costs in connection with the ongoing maintenance of our operation centers and systems. Non-GAAP technology and content expenses as a percentage of total revenues increased to 1.2% from 1%. 利润层面，2024年第三季度的Non-GAAP经营利润为1.04亿元，同比大幅增长40.9%。Non-GAAP经营利润率为2.6%，2023年同期为2.3%。此外，我们本季度实现首次实现GAAP经营利润为2,490万元，这是历史并购摊销进程的重要里程碑。 As a result, our Non-GAAP operating income was CNY 104 million in the third quarter of 2024, representing a substantial increase of 40.9% year-on-year. Non-GAAP operating profit margin was 2.6%, compared to 2.3% in the third quarter of 2023. In addition to Non-GAAP operating income, we are delighted to report our first quarterly operating income and the GAAP measures at CNY 24.9 million. This reflected our milestone of digesting the majority of the impacts from the amortization we have been reporting. 在股东回报方面，我们持续推进回购。现行的回购计划允许我们在2025年6月27号及之前使用至多5,000万美元做回购。在2024年第三季度，我们使用了1,210万美元回购了接近490万股ADS。截至2024年9月30号，我们已经将2,010万美元回馈给股东，共计回购约820万股ADS。 In terms of our ongoing share buyback plan, under which we are authorized to repurchase up to $50 million of our ADSs through June 27, 2025, we have returned approximately $20.1 million to our shareholders for a total of 8.2 million ADSs as of September 30, 2024. In the third quarter of 2024, we used $12.1 million to repurchase approximately 4.9 million ADSs. 截至2024年9月30号，现金及现金等价物、受限资金、短期投资以及应收第三方支付平台款项合计24亿元。三季度末的综合现金较二季度末有所减少，主要是我们在应对9月和10月品牌旗舰机型发行相应的以旧换新、四季度电商大促锁定货源，以及在公开市场进行股票回购消耗了部分现金。我们的综合现金储备仍然充足，可以保障可持续的发展前景。 As of September 30, 2024, cash and cash equivalents, restricted cash, short-term investment, and funds receivable from third-party payment service providers totaled CNY 2.4 billion. As we collected more pre-owned products when flagship smartphone models were released in September and October, and obtained more products in preparation for the grand promotion during the fourth quarter, and repurchased our ADSs in the open market, total cash balance dropped compared with the end as of the second quarter, even though our cash position remains strong, safeguarding a sustainable growth upswing. 关于四季度资金，股东预计总收入将在47.4亿元至48.4亿元，对应同比增长22.4%至24.9%。以上资金仅反映当前我们对市场和运营状况的初步看法，预期有可能有变化。 Now, turning to the business outlook. For the fourth quarter of 2024, we anticipate total revenues to be between RMB 4,740 million and RMB 4,840 million, representing an increase of 22.4% to 24.9% year-over-year. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change. 以上是我们对三季度业绩的重点分享，欢迎各位提问交流。 This concludes our prepared remarks. Operator, we are now ready to take questions. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. When asking the question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. At this time, we will pause momentarily to assemble our roster. The first question today will be from Joyce Ju with Bank of America. Please go ahead. 感谢管理层给我提问的机会。我的问题是想问一下，能不能麻烦就以旧换新的补贴对集团的影响给我们展开一下。具体的话，由以旧换新带来的业务增量应该怎么样去量化，我们可以怎么判断四季度还有2025年以旧换新给我们带来的业绩增长的这个潜力。然后我大概翻一下我的问题。Could management help elaborate a bit on how trade-in subsidies are driving your business growth? Specifically, how do you quantify the incremental business from trade-ins, and what are the expectations for trade-in business in the fourth quarter of 2024 and also the year after? Thank you. 非常感谢提问。首先，我们在国家大规模消费品以旧换新的落地过程中与京东紧密地协作，率先行业在全国范围内支持以旧换新。三季度通过京东渠道的回收和以旧换新业务带来的回收额增长超过40%，其中以旧换新实现了100%以上的翻倍增长。以旧换新的增势在双十一期间继续延续，回收额同比增长超过246%。京东以旧换新的快速增长主要得益于：一、京东和爱回收共同为用户提供了流畅的以旧换新核销渠道，并且在双十一期间做了共同投入；二、叠加了手机品牌在双十一前发布新品的影响，以及品牌对以旧换新的重视提升；三、用户的习惯也从之前在京东下一个普通回收订单到直接下以旧换新订单的选择迁移。虽然到现在为止手机还没有享受到全国以旧换新的直接补贴，但是凭借我们领先的二手供应链能力以及与京东共同打造的跨品类换新能力，今年用旧手机、3C、小家电折抵换购新家电的业务得以火热进行。双十一期间有10万单是用户在购买新品家电时使用旧手机做的以旧换新。 Thank you for your question. We've been working closely with JD.com as a first mover in supporting the National Consumer Goods Trading Program. In the third quarter, our recycling and trading business through JD.com increased by over 40%, with the trading business doubled. This momentum continued during the Singles' Day grand promotion, where trading recycling value increased by 246% year-over-year. There were three factors. First, convenient trading options were offered with joint efforts by JD and AHS Recycle. Second, many phone brands launched new products ahead of the grand promotion coupled with trading subsidies. Third, consumers prefer trading services over regular recycling services. Although smartphones have not yet enjoyed direct subsidies from the current nationwide trading stimulation scheme, our partnership with JD on cross-category tradings is thriving thanks to our industry-leading second-hand supply chain capabilities. Users are actively exchanging their used smartphones and small appliances for discounts on new home appliances. For instance, there were 100,000 orders where users traded in their used phones when purchasing new home appliances during the grant promotion. 我们认为以旧换新的消费方式仍处于早期阶段。万物新增与平台和品牌都仍需要进行持续的用户教育，让更广泛的消费者体验到具有性价比的消费方式。举个例子，我们预计京东通讯一年自营销售超过6,000万台的手机。随着平台合作能级的提升，我们在京东场景继续提升，以旧换新渗透率的空间依然巨大。随着国家经济发展目标与财政政策的逐步明晰，我们期待接下来再加大力度支持大规模设备更新，扩大消费品以旧换新的品种和规模领域做更多的进展和延续的支持政策。我们相信在用户的消费行为变迁中，以旧换新具有成为主流消费方式的必然性。我们坚定做好二手供应链能力，为行业提供高效的基础设施的支撑，支持用户消费情绪的改善。接下来，我们还会继续优化以旧换新的询价、下单、质检和交付的服务体验，进一步提升面对面成交的比例，更好地服务全国用户的以旧换新与购买需求。 We believe that the adoption of trading is still in its early stages. Alongside platforms and brands, we need to continue educating users to help more consumers experience this cost-effective purchasing approach. For instance, we expect that through JD Electronics, there is usually 60 million units of smartphones distributed through this channel annually. And with the advancement of our collaboration, we expect the penetration rate of this scenario has substantial growth rates. As the Ministry of Finance advances its social and economic development objectives and fiscal policies, we look forward to progress on their goal to enhance the support for large-scale equipment upgrades and to extend the variety and scale of consumer goods trading programs. We believe that in the evolution of consumer behavior, trading is destined to become mainstream. We remain committed to strengthening our second-hand supply chain capabilities, providing efficient infrastructure support for the industry, and fostering improvements in consumer sentiment. As the next step, we continue optimizing price inquiry services, order placement, quality inspection, fulfillment experience, uplifting the proportion of face-to-face fulfillment orders, ultimately bringing our services to the next level. 好，谢谢。 Thank you for the question. 谢谢。 The next question comes from Wei Zhao with CICC. Please go ahead. 晚上好，感谢管理层接受我的提问。我的问题是想多了解一下咱们三季度这个多品类业务的进展，因为今年呢，多品类回收业务增长势头也看到了很强劲。那想请教一下这个业务的利润贡献怎么样，以及公司接下来如何去规划多品类回收业务的增长路径。我自己翻译一下。 Thank you for taking my question. Could you please provide more color on the progress of your multi-category recycling business? This business segment has shown strength this year. What's the profit contribution, and how do you plan to further grow this emerging segment? Thank you. 好，谢谢提问。多品类回收业务呢，是基于爱回收长期积累的品牌和现有的爱回收门店快速发展的。这是一个轻资产的平台服务业务。我们面对快速增长的用户需求呢，开展了奢侈品、黄金、珠宝、名酒等有交易价值的商品回收服务。三季度多品类的回收额同比增长超过270%，创造了超过3,000多万元的服务收入及毛利。扣除门店费用和履约费用之后，46%转化为了门店的贡献利润，进一步提升了门店的竞争力。 Thanks for the question. Our multi-category recycling business is built on the AHS Recycle brand and rapidly developed by leveraging the existing AHS stores. It operates as an asset-light platform business model. To meet users' growing demand, we offer recycling services for luxury goods, gold, jewelry, premium liquor, and other high-value items. In the third quarter, the recycling value of multi-category recycling business increased by 270% year-over-year, generating over CNY 30 million in service revenue, which was recognized as gross profit. After deducting store end and fulfillment costs, 46% was converted to store-level operating profit. This has further enhanced the competitive strength of our stores. 商品类差分呢，黄金和二手奢侈品是多品类的核心品类，规模占比分别为77%和18%。但是在服务收入贡献层面，两个品类基本相当。由于回收服务便捷、体验好，价格具有竞争力，报价透明，爱回收的多品类回收服务受到了用户青睐。国内的二手奢侈品存量市场巨大，黄金回收也具有千亿规模。我们在这样巨大的市场中具有服务能力和价格机制的优势。相应的，多品类回收业务的长期市场空间值得期待。 Breaking down by category, gold and luxury goods remain core segments, accounting for 77% and 18% of the multi-category business, respectively. In terms of revenue contribution, the two categories have similar levels. Users have embraced our multi-category recycling services due to the convenient and premium services, competitive pricing, and transparent service take rate. With the huge existing domestic pre-owned luxury market size and gold recycling market size reaching hundreds of millions, we possess the service capabilities and pricing advantages needed to thrive in this massive market, making the long-term potential for our multi-category recycling business promising. 我们在爱回收门店叠加多品类回收服务，目前的769间爱回收自营门店中，已经有587间实现了初步的多品类回收服务的覆盖，未来还会增加更多品类的到店覆盖，充分覆盖一二线城市的优质用户群体。在广大的中低线城市，我们有机会探索黄金等品类在加盟门店的复制。随着爱回收门店体系的进一步的扩张，我们有信心服务好更多用户的回收需求。 Of our 769 self-operated AHS stores, 587 now offer multi-category recycling services, with more services to add on down the road, gradually covering mainstream users in first- and second-tier cities. In extended lower-tier cities, we are exploring opportunities to integrate the services with joint-operated stores. As we continue to expand AHS store networks, we are confident in our ability to meet the recycling needs of more users. 好，谢谢。 Thank you. 谢谢。 The next question comes from Michael Kim with Zacks Small-Cap Research. Please go ahead. Great. Good morning or good evening, everyone. Maybe just to follow up on some of your earlier comments, just curious to get your thoughts on what you're seeing in the market for pre-owned smartphones in terms of transaction volumes. It would seem like there are tailwinds on both the supply side with ongoing growth in shipments of new smartphones in China, as well as on the demand side with rising demand for used phones, just given the somewhat challenging macro backdrop. So just curious to get your thoughts there. 好，非常感谢提问。我先回答一下这个近期二手手机交易量这个问题。首先从供给端来看，在国家大规模推进以旧换新的背景下，虽然我们的主品类的手机尚未直接受益于补贴政策，但是跨品类换新能力支持了我们在供给端更好地把握C端的回收货源。 Thank you for the question. First, on the supply side, under the National Trading Initiative, although our main category of mobile phones has not yet directly benefited from the subsidy policies, our cross-category trading capabilities have enabled us to better capture consumer and recycling sources. 如以往在财报电话会中所交流的，我们拥有行业领先的供应链的能力，包括我们自建的合规翻新整备的能力，帮助我们实现商品的成色提升和销售。今年以来，我们的主营回收货源的合规翻新覆盖率从个位数初步提升到了有意义的双位数，更有效地锁定适合翻新整备的商品。合规翻新商品的收入保持积极的环比与同比增长。一方面呢，通过开机场、亮机场满足更多具备零售能力的商家的供货需求；另一方面也发挥我们自营严选多渠道销售的能力，直接满足C端用户对于具有性价比的高品质二手手机的购买需求。 As mentioned in previous earnings calls, we have industry-leading supply chain capabilities, including our self-developed compliant refurbishment processes that enhance pre-owned product quality and boost sales. This year, the coverage rate of compliant refurbishment in our 1P business has grown from single digits to meaningful double digits preliminarily. We are more effective at identifying products suitable for reconditioning, which has resulted in sustained revenue growth from refurbished products on both a quarterly and annually basis. On one hand, through our Paipai Marketplace, we are meeting the needs of more retailers. On the other hand, we leverage our self-operated AHS retail channels to directly serve consumers seeking quality-assured pre-owned smartphones. 从我们自营的严选销售渠道来看，本季度严选的零售收入实现了120%的同比增长，其中呢，爱回收门店及官网的零售收入同比增长三倍以上。我们认为在消费缓行的趋势下，尤其是在下层人群市场，具有性价比的二手手机电子产品将具有非常大的增长空间。我们也将在严选QC销售的品牌渠道和能力上持续加大投入。 On retail distribution, our 1P to consumer revenue grew by 120% year-over-year. Within this segment, revenue from AHS offline stores and official websites increased by over 300% year-over-year. We believe that cost-effective purchasing options are gaining increasing acceptance, especially from prudent consumers in the mass market. We continue our efforts to advance our retail brand channels and capabilities. Thank you. Great. Thanks for taking my question. This concludes the question and answer session. I would like to turn the conference back over to management for any closing remarks. Thank you. Thank you all again for joining us. A replay of today's call will be available on our website shortly, followed by a transcript when ready. If you have any additional questions, please feel free to reach us at ir@atrenew.com. Have a nice day. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.