Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to ATRenew's First Quarter 2025 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. Welcome to AT Renew's first quarter 2025 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 questions from analysts. The first quarter 2025 financial results were released early today. The earnings press release and investor slides accompanying this call are now available at our website, air.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 participate during the Q&A session. Please note our safe harbor statements. Some of the information you'll hear during our discussions 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。欢迎参加万物新增集团2025年第一季度业绩电话会。我们很高兴与各位更新2025年的开局战绩和业务动态，并回应各位对于集团发展近况的关注。 Hello everyone, and thank you for joining AT Renew's First Quarter 2025 Earnings Conference Call. We are excited to share the updates of our performance and business development and to address your questions about the company's recent progress. 首先在经营业绩层面，一季度总收入再次超出区间指引高端，同比增长27.5%至46.53亿元。在利润达成方面，Non-GAAP的经营利润同比增长39.5%至1.1亿元，Non-GAAP的经营利润率为2.4%，较去年一季度同期实现了健康的提升。 Firstly, in terms of operating results, total net revenues for the first quarter once again exceeded the high end of our guidance range, increasing 27.5% year-over-year to RMB 4,653.5 million. On the profitability side, our Non-GAAP operating income increased by 39.5% year-over-year to over RMB 110 million. Non-GAAP operating margin raised 2.4%, indicating healthy progress compared to the first quarter of last year. 整体收入的快速健康增长得益于我们主要得益于我们EP业务实现的加速增长。我们持续投入EP自营业务与回收的交付能力建设，巩固一手货源获取与二回收品牌的用户心智，并逐步实现更高比例的To C的严选销售。我会就这三点EP业务的增长驱动力进行进一步的说明。 The strong and stable growth of total revenue was primarily driven by the accelerated growth of our 1P business. We continue to invest in our 1P business and recycling fulfillment capabilities, enhance supply access, and strengthen AHS Recycle brand recognition among consumers to further improve the penetration of our 1P To C retail sales in our sales mix. Let me provide more color for the three key drivers of the 1P business. 首先，第一季度EP产品收入取得了同比增长28.8%。如果扣除四季度电话会上提到的苹果官方回收和海外业务去年一季度的高收入基数影响，产品收入同比增长超过50%，超出了我们对于大盘业务的业绩预期，预业绩预，业绩预期。 Firstly, in the first quarter, 1P business revenue grew by 28.8% year-over-year, excluding the high base impact from Apple's official trade-in program and overseas business, as mentioned during the fourth quarter earnings call. Product revenue in the first quarter increased by over 50% year-over-year, exceeding our expectations. 趋势上，受受益于手机数码品类国家补贴的发放，以及京东场景的用户换新需求拉动，二回收的C2B手机数码回收额同比增长也超过了50%。我们继续践行从更多从C端消费者回收，更多向C端消费者销售的发展策略。能力方面，我们继续夯实线下服务能力的建设，同比去年一季度末竞争458间二回收门店，上门团队所支付的交付范围也更加扩大，交付也更加及时。共同助推C2B回收用户的满意度相关的多个指标向好提升，让借助国补体验以旧换新的用户同样拥有好的体验。 In terms of trends, supported by the national subsidies for smartphones and digital products, as well as increased demand for user upgrades in the scenario of our strategic partner JD.com's platform, our C2B consumer electronics recycling value grew by over 50% year-over-year. We are committed to advancing strategies on direct engagement with consumers at the front of recycling and retailing. On the capability side, we continue to enhance offline fulfillment capabilities, achieving a net addition of 458 AHS Recycle stores year-on-year by the end of March 2025, and broadening our door-to-door fulfillment coverage with more prompt service. The effort improves multiple metrics indicating C2B recycling customer satisfaction and ensures a high-quality experience for trading users via national subsidies. 在京东战略合作方面，我们继续发挥与京东长期共建的独特供应链优势，保持着行业领先的用户体验和交付能力，进一步加强以旧换新的交付响应，降低了用户参与国补的门槛。通过协作以旧换新，我们和京东帮助用户以又好又便宜的方式抵扣新品购买成本，有效激发用户的消费需求，并抓住更多优质的二手手机、手二手手机3C产品货源，实现二手回收渗透率的提升。作为结果，一季度以旧换新的业业绩增长继续领跑京东大盘。我们将继续努力提升以旧换新供应链能力和服务能力的建设，以进一步扩大在二手手机3C货源端的获取能力和份额。 In terms of our strategic partnership with JD.com, we've strengthened the long-term development supply chain, delivering best-in-class user experience and efficient fulfillment. By optimizing the trading process, we've reduced barriers to national subsidies, enabling customers to trade in used devices for new ones in a better and cheaper way. This not only stimulates demand, but also improves supplies of high-quality pre-owned consumer electronics to boost recycling penetration. As a result, the growth of the trade-in segment continues to outpace. Looking ahead, we will continue to enhance our trade-in supply chain and services to expand our market share in the pre-owned consumer electronics industry. 同时，我们加码二回收品牌能力的建设，通过创新的新媒体内容营销和环保达人互动，鼓励用户体验二回收更加丰富的服务选项，支持二回收现有渠道实现更快速的回收业绩增长。通过二回收品牌，我们提出了返航新生的环保倡议，并实现了两者的全面连接打通，鼓励更多消费品牌参与互动，促进更多用户对二回收品牌价值的认可，提升用户对二回收品牌的感知和使用二回收服务的品质。在今年4月的世界地球日期间，二回收与返航新生携手12个国内一线的消费品牌推出以二手手机和循环经济为主题的营销活动，于线上和线下渠道促进用户参与二手回收。 At the same time, we have strengthened AHS Recycle's brand presence through new media channels with creative marketing and influencer partnerships, encouraging users to experience AHS Recycle's wide range of recycling services and accelerating the growth of our recycling channels. We have launched the Revive Environmental Protection Initiative under the AHS Recycle brand and fully integrated it with our existing initiatives. This encourages more consumer brands to collaborate with us, enhancing user recognition of AHS Recycle's value proposition and increasing engagement with our services. In April, while celebrating Earth Day, we collaborated with 12 leading domestic consumer brands to promote initiatives focused on recycling and the circular economy through joint campaigns across online and offline channels. 在一季度，我们继续发挥成熟的端到端供应链能力，加强自营商品的To C零售。一季度EP To C的收入同比增长73.5%，EP收入的To C占比进一步提升至33%。其中呢，我们看到以销定修项目在自有的合规翻新整备能力基础上，放大发挥To C零售效能，为拍拍二回收严选零售合作渠道的用户提供价格更好、售后放心的产品。GMV环比呈现健康提升，同时二回收门店官网的零售能力持续发展，收入同比增长超过160%，让更多严选严选好货唾手可得。 By continuously leveraging our mature end-to-end supply chain, we enhanced our direct-to-consumer retail operations under the 1P business. In the first quarter, 1P To C revenue grew by 73.5% year-over-year. Retail revenue accounted for 33% of 1P revenue, representing an upward trend. Backed by our refurbishment capabilities, we've seen the pilot program of on-demand refurbishment effectively leverage retail capabilities, creating strong synergies with our in-house compliant refurbishment operations. This approach allows us to offer competitively priced, quality-assured 1P refurbished products to users across PJT, AHS Recycle, and other retail partner channels. As a result, GMV has shown a healthy upward trend quarter over quarter. Additionally, the retail capability of AHS Recycle's official store network continued to expand, with revenue growing by over 160% year-over-year. This amplified our product accessibility to consumers. 单独看苹果官方以旧换新业务，如此前的业绩电话会沟通，由于有历史价格策略产生的高基数影响，该业务板块一季度收入同比有有所下降，但得益于我们的超盘能力与效率提升，苹果业务的利润利润率水平显著改善。海外收入方面，我们主动进行业务规模的调整，利润率水平同样在一季度实现了显著的优化。 Looking specifically at the Apple official trade-in business, as mentioned in previous earnings calls, revenue declined year-over-year in the first quarter due to the high base driven by early-stage pricing strategies. However, benefiting from our management capability and operational efficiencies, the margin in this segment improved significantly. For overseas revenues, as we adjusted our business scale, there was a notable improvement in margin as well. 平台业务方面，今年以来，除了看到线上线下用户对于以旧换新的接受度的显著提升，行业商家的需求也在发生一些积极的变化。为此，我们的B2B、B2C多品类回收业务进行了服务能力升级，通过领先的体验提升了用户的粘性。 Regarding our marketplace businesses, we've seen a marked rise in trading service acceptance among both online and offline users, alongside positive shifts in merchant demands. In response, we have enhanced our B2B, B2C, and multi-category recycling services to deliver best-in-class user experience, thereby boosting user loyalty. 我们不断加强拍皮糖的行业基础设施能力，提升对于商家的服务。截止一季度末，拍皮糖的累计注册商家数量突破了100万，交易商家的数量呈现显著的双位数的同比增长，收费率更高的入仓质检收入占比提升，带动了拍皮糖成拍皮糖平台成色机收费率同比增同比提升24个基点。这些也印证了拍皮糖作为行业基础设施、作为二手手机3C交易所的定位，被全国商家更广泛的认可。 We've strengthened our industry capabilities as fundamental infrastructure and enhanced services for merchants. As of the end of the first quarter, the number of registered merchants in PJT exceeded 1 million, with a double-digit year-over-year increase in active trading merchants. The proportion of higher fee OPT services, i.e., shipping quality inspection services, grew, raising PJT marketplace's take rate for second-hand consumer electronic transactions by 24 basis points. This reflects PJT's growing nationwide prominence as an essential infrastructure within the industry and as a leading exchange for second-hand electronic products. 拍皮糖引领二手销售方式的创新，增加更多样的线上线下出货方式。今年3月，我们在深圳华江北开幕了拍皮糖全国首家线下旗舰店，引领二手3C行业的透明化升级。该店占地1,200个平方米，现场陈列近万台专业检测的二手手机。拍皮糖旗舰店采用了仓储前前置模式的仓卖一体模式，通过构建看验采一体化的场景，比传统的销售渠道缩短3到5天的是调货周期，帮助B端的商家降低囤货成本与物流等待时期等待周期。通过现场看货还有利于降低售后争议。我们将继续探索更多行业商家的赋能，向本地及全国商家货源开放，进一步夯实线下的选购丰富度。 PJT is pioneering the innovation of second-hand sales models by expanding diverse online and offline sales channels for merchants. In March, we launched our first offline flagship store in Shenzhen's Huacheng Bay, driving transparency in the pre-owned consumer electronics industry. The 1,200 sq m store displays nearly 10,000 second-hand phones that have undergone professional inspections. The flagship store operates under a warehouse to retail model, seamlessly integrating storage and sales functions. By offering an all-in-one browse inspect purchase experience, it significantly reduces the traditional three to five days of restocking cycle, helping merchants reduce inventory costs and minimize logistics delays. On-site procurement also reduces after-sales disputes. We will continue to empower more industry merchants, open up our local and national merchant resources to enrich the offline product selection. 此外，我们近期在自营城市测试开设取证仓，简化商户简化商家的入仓质检流程，以更低的成本成本经营，位于城市交易中心的小仓距离商家更近，商家服务也更加便捷。同时，我们探索直播平台的主播达人合作，开放拍皮糖EP和3P货源货盘和供应链，由二手手机3C行业的主播达人帮助C端用户在拍皮糖上淘到高性价比的机器，打造代淘的模式，补充从拍皮糖到C端消费者的服务闭环。未来我们将进一步探索，开放更多平台能力给到行业商家，增加优质商品的销售机会，助力区域中心城市的二手手机3C的商品集散和合规发展。 In addition, we recently began piloting compact authentication warehouses within our self-operated city to streamline the quality inspection process for merchants. These compact warehouses, located closer to major trading hubs, allow us to operate at lower costs while offering more convenient and accessible services to merchants. At the same time, we are exploring collaborations with influencers on live streaming platforms. We opened our 1P and 3P inventory and supply chain on the PJT marketplace to those influencers, which enables them to help users find high-quality and cost-effective devices, creating the specialty buyer model and enhancing the service loop between PJT and consumers. Moving forward, we will open up more platform capabilities to merchants to boost quality product sales and promote distribution capabilities and compliant growth of pre-owned consumer electronics across regional centers. 拍拍为更多二手行业的中小商家提供寄卖转型，通过扩大招商，增加平台货品的在售规模，强化商家后台建设，优化商家体验和定价水平，综合提高货品的动销率，同时加强完善售后质检和服务策略，以提升用提升流量和用户的购买体验。规模上，拍拍寄卖全品类一季度的销售额同比增加2.2倍。我们将探索把寄卖商品打通到更多的自营销售场景中，为中小商家提供更加丰富的零售通路。 As part of the ongoing transformation of the Paipai Consignment business, we are focused on better serving small merchants in the second-hand industry. This includes expanding merchants to increase the variety and volume of available products, strengthening back-end systems to improve greater accuracy in pricing and the overall merchant experience, while driving higher product turnover. In terms of scale, sales across all categories in the Paipai Consignment business grew by 2.2x year-over-year in the first quarter. Looking ahead, we plan to further integrate consignment products into more of our self-operated distribution channels, providing small and medium-sized merchants with broader access to retail opportunities. 在多品类回收服务发展方面，一季度多品类的回收交易GMV和收入均实现了接近200%的同比增长，增长势头依然强劲。其中收费率较低的黄金回收的业绩增长较快，奢侈品回收方面收费率实现了小幅度的提升。综合影响下，多品类回收的综合费率综合收费率同比稳定。在用户体验方面，我们从多品类回收前的咨询体验、价格体验、交付体验等多方面持续优化SOP和内部能力，用户体验与满意度得到了有效的改善。 Throughout the development of multi-category recycling services, both gross transaction value and revenue nearly tripled year-over-year in the first quarter. Gold recycling saw faster growth, while the recycling service fee for luxury goods increased slightly. As a result of these combined factors, the overall multi-category recycling take rate remained stable year-over-year. In terms of user experience, we have continued to optimize our SOPs and internal capabilities across multiple areas, including pre-recycling consultation, pricing, and delivery. As a result, overall customer satisfaction and user experience have improved meaningfully. 总结而言，我们主营业务在今年的第一季度实现了超出预期的快速增长，以行业最佳的以旧换新体验抓住了国补带来的发展机会。进入二季度，我们有信心持续加强交付力和品牌力的建设，为用户形成更强的以旧换新消费与回收心智，进一步抓住行业发展的助推力。长期看，随着用户对于回收和二手认可度的提升，二手行业继续上行向好发展，我们以长期坚定的场景加供应链的战略，加强爱回收品牌心智建设，持续优化用户体验，做好二手商品的高效流转，实现更多价值创更多价值创造。 In summary, our core businesses achieved faster than expected growth in the first quarter of this year. We seized growth opportunities arising from national subsidies by providing best-in-class trading experience. As we enter the second quarter, we are confident in further strengthening our fulfillment capabilities and brand influence. This will enhance users' awareness of trade-in and recycling, enabling us to seize the industry growth opportunities. In the long run, as user recognition of recycling and second-hand products continues to rise, the industry is on a positive growth trajectory. With our long-term and steadfast scenarios plus supply chain strategy, we are committed to obtaining more user mind share, enhancing user experience, ensuring the efficient circulation of second-hand products, and creating greater value. 下面请CFO Rex对于财务数据进行解读。 Now I'd like to turn the call over to CFO Rex Chen for financial updates. 各位投资投资者和分析师大家好，我们很高兴与各位分享公司2025年第一季度出色的财务表现。伴随国补政策的落地，集团履约交付能力的加强，零售能力的拓展，我们再度突破指引区间高端。2025年第一季度营收超过46.5亿元，同比增长27.5%，能GAP净利润同比增长39.5%，超过1.1亿元。 Hello everyone, we are pleased to report strong financial performance in the first quarter of 2025. Driven by the national subsidy policies, our enhanced fulfillment capabilities and expanded retail network, total revenue in the first quarter once again exceeded the high end of our guidance, increasing by 27.5% to over RMB 4,650 million, and adjusted operating income increased by 39.5% to over RMB 110 million. 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。 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. 第一季度集团总收入的增长动力主要来自产品收入的持续稳健增长，产品收入增长28.8%至42.6亿元，主要得益于公司线上渠道二手消费电子产品销售的增长。 In the first quarter, the growth of total revenues was primarily driven by sustained growth in our net product revenues. Net product revenues increased by 28.8% to RMB 4,260 million, primarily due to an increase in the sales of pre-owned consumer electronics through our online channels. 服务收入为3.9亿元，同比增长14.2%，主要得益于多品类回收业务以及拍皮糖平台业务贡献的服务收入增长。平台服务收入随交易规模同步增长，一季度的平台综合收费率为5.25%，期间多品类回收业务贡献超过5,000万元的服务收入，占本季度服务收入的13.3%，相比2024年同期的5.6%大幅提升。 Net service revenues were RMB 390 million, representing an increase of 14.2%. The increase was primarily due to an increase in the service revenue generated from multi-category recycling business and PJT marketplace. The growth in service revenue went along with the upward trend in our marketplace's overall gross transaction value, delivering an overall marketplace take rate of 5.25% in the first quarter of 2025. During the quarter, our multi-category recycling business contributed over RMB 50 million of revenue, accounting for 13.3% of service revenues. The percentage significantly increased from 5.6% in the same period of 2024. 在运营费用方面，我们主要讨论能GAP口径的费用分析，以展示管理团队视角的费用趋势。关于GAP和能GAP口径之间的调整，请参考我们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-based expenses, we will mainly discuss our non-GAAP operating expenses, which better reflect how management views our results of operations. The reconciliations of GAAP and non-GAAP results are available in our earnings release and the corresponding Form 6K furnished with the U.S. SEC. 商品成本增加22.7%至36.2亿元，与产品销售的增长一致。我们EP业务的毛利率为15.2%，而上年同期为10.9%。EP毛利率的改善主要得益于我们发挥C2B回收供应链和规范性整备能力，以及多重零售渠道的优势，实现更多毛利较高的QC零售。我们在同期优化苹果官方以旧换新的业务策略，业务规模较2024年一季度的高技术下降，毛利率较去年同期显著扭亏。 Merchandise cost increased by 22.7% to RMB 3,620 million. In line with the growth of product sales, gross profit margin for our 1P business was 15.2%, compared with 10.9% in the same period last year. The improvement of gross margin in our 1P business was primarily due to our C2B recycling supply chain capabilities, compliant refurbishment capabilities, and diversified retail channels. In addition, we optimized the business strategy of Apple's official trade-in program. Despite a decrease in business scale from the high base in the first quarter of 2024, the gross margin in the first quarter of 2025 achieved a significant turnaround from losses compared to the same period last year. 履约费用增长38.1%至4.3亿元，能GAP履约费用增长40.2%至4.3亿元。能GAP履约费用增长的主要原因有：一、与2024年同期相比，回收和交易量的增加导致人力和物流费用增加；第二点，2025年第一季度拓展线下交付网络和运营中心产能运营费用相应增长，能GAP履约费用率从8.3%上升至9.1%。 Fulfillment expenses increased by 38.1% to RMB 430 million. Non-GAAP fulfillment expenses increased by 40.2% to RMB 430 million. Under the non-GAAP measures, the increase was primarily due to an increase in personnel costs and logistics expenses as we conducted more recycling and transaction activities compared with the same period of 2024, and an increase in operation-related expenses as we expanded our store network and operation center capacity in the first quarter of 2025. Non-GAAP fulfillment expenses as a percentage of total revenues increased to 9.1% from 8.3%. 销售费用增加30.4%至4.2亿元，能GAP销售费用增加72.8%至3.9亿元。主要原因为广告和推广活动相关的费用增加，以及与渠道服务相关的佣金费用增加，能GAP销售费用率从6.1%上升至8.3%。 Selling and marketing expenses increased by 30.4% to RMB 420 million. Non-GAAP selling and marketing expenses increased by 72.8% to RMB 390 million. The increase was primarily due to an increase in advertising expenses and promotional campaign-related expenses, and an increase in commission expenses in relation to channel service fees. Non-GAAP selling and marketing expenses as a percentage of total revenues increased to 8.3% from 6.1%. 管理费用降低40.1%至6,300万元，能GAP管理费用提升2.2%至5,900万元。主要由于人员成本增加，能GAP管理费用率从1.6%下降至1.3%。 General and administrative expenses decreased by 14.1% to RMB 63 million. Non-GAAP G&A expenses increased by 2.2% to RMB 59 million, primarily due to an increase in personnel costs. Non-GAAP G&A expenses as a percentage of total revenues decreased to 1.3% from 1.6%. 研发费用上升9.6%至5,500万元，能GAP研发费用上升16.5%至5,300万元。主要由于人员成本增加，能GAP研发费用率从1.2%下降至1.1%。 Technology and content expenses increased by 9.6% to RMB 55 million. Non-GAAP technology and content expenses increased by 16.5% to RMB 53 million. The increase was primarily due to an increase in personnel costs. Non-GAAP technology and content expenses as a percentage of total revenues decreased to 1.1% from 1.2%. 利润层面，第一季度的能GAP经营利润为1.1亿元，同比增长39.5%。能GAP经营利润率为2.4%，上年同期为2.2%。 As a result, our non-GAAP operating income was RMB 110 million in the first quarter of 2025, representing an increase of 39.5% year-over-year. Non-GAAP operating profit margin was 2.4%, compared to 2.2% in the first quarter of 2024. 在2025年第一季度，我们使用了约120万美元回购金40万股ADS。现行的回购计划允许我们在2025年6月27日及之前使用不超过5,000万美元做回购。截止2025年3月31日，我们在此回购计划下已使用2,710万美元回购了约1,070万股ADS。 During the first quarter of 2025, we repurchased a total of approximately 0.4 million ADSs for approximately $1.2 million under our current share repurchase program, which authorizes us to repurchase up to $50 million worth of our shares, including ADSs, through June 27, 2025. As of March 31, 2025, we had repurchased a total of approximately 10.7 million ADSs for approximately $27.1 million under this share repurchase program. 截至2025年3月31日，现金及现金等价物受限资金、短期投资以及第三方支付平台应收款项合计27.8亿元。公司的资金储备充足，支持对业务发展的再投入和股东回报。 As of March 31, 2025, cash and cash equivalents, restricted cash, short-term investment, and funds receivable from third-party payment service providers total RMB 2.78 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns. 关于2025年第二季度的指引，我们预计总收入将在47.1亿元至48.1亿元，对应同比增长24.7%至27.4%。以上指引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 business outlook, for the second quarter of 2025, we anticipate total revenues to be between RMB 4,710 million and RMB 4,801 million, representing a year-over-year increase of 24.7% - 27.4%. Please note that this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change. 以上是我们的业绩重点分享，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 telephone keypad. 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 a question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. We'll pause momentarily to assemble our roster. Your first question comes from Joyce Ju with Bank of America. Please go ahead. 感谢关铁成介绍我的提问。首先恭喜这个季度取得了成绩，我这边有两个问题。第一个问题是想请教我们看到的国补对回收和以旧换新的促进力度如何，在二手回收和销售业务增长上能否看到持续性。第二个问题是关于履约和销售费用率的提升。我们第一季度的收入和 non-GAAP 的经营利润率都取得了优秀的成绩，那想请教一下如何理解 non-GAAP 履约和销售费用率的提升。另外就是我们今年的收入和利润率的目标是否有所调整。那我翻译一下。 Thanks management for taking my questions and congrats for achieving a strong quarter. My first question is on the national subsidy. How effective has the national subsidy been in promoting recycling and trade-in programs? Do you see sustained growth momentum in your second-hand recycling and resale business as a result? Secondly, in the first quarter, we see that both revenue and non-GAAP operating margins showed strong performance. Could you please help to explain the increase in the non-GAAP fulfillment margin and self-marketing margin? Is there any adjustment to this year's total revenue and margins target? Thank you. 好，谢谢提问。我先回答第一个问题，第二个问题 Rex 来回答。第一个问题是，据统计我们一季度国内智能手机新机出货量同比增长了 9%，连续五个季度实现了正增长。我们所服务的京东平台的手机 3C 品类的性能很强，换新提升了更多用户的换机的动力。我们基于在主流回收场景提前锁定的这样的一个优势位置，实现了 EP 自营业绩的加速增长。 Thank you for the questions. I will take the first, and Rex will take the second. Regarding your first question, according to industry research, the shipment of new smartphones in the domestic market increased by 9% year-over-year in the first quarter, marking positive growth for the fifth consecutive quarter. Meanwhile, new consumer electronic sales on our partner platform JD.com has strong growth momentum. The subsidies for trade-in programs, combined with our strong positioning in key recycling channels, have jointly driven the accelerated growth of our 1P business. The long run, there is room for the domestic penetration rate to increase to above 20%. We have previously shared the view that the national subsidies will definitely boost the mobile phone recycling business. That's why industry-leading brand awareness, fulfillment capabilities, and unique advantages in essential application scenarios in recycling, AHS Recycle is well positioned to benefit from the increasing adoption of recycling and in mainstream channels. Currently, the national subsidy cap for mobile phone trade-ins is RMB 500. However, our average recycling price in 1P business is approximately RMB 1,500. This creates a stronger incentive for users to not only take up the national subsidy, but also leverage the trade-in service as of AHS Recycle. Looking ahead to the medium to long term, we remain confident in China's strong and consistent commitment to stimulating consumption. In our total transaction volume for pre-owned consumer electronics, mobile phones are the largest category, accounting for approximately 70%. The average replacement cycle for phones is about two years, and there are approximately 300 million new phones and tens of millions of new laptops and digital devices being shipped annually in China. Currently, the penetration rate for recycling and trade-in programs remains in single digits. In the long run, we believe there is potential for domestic penetration to rise to over 20%. 我们所服务的主要品牌和电商平台在以更灵活的价格策略更进一步地参与到国补。在今年已经开启的 618 电商大促期间，我们期待以旧换新能进一步提升业务的增长动能。二回收也将以更优质的交付能力承接用户的回收和换新服务。 The main brands and e-commerce platforms we've collaborated with are participating in national subsidy programs with more flexible pricing strategies. Therefore, during the June 18th Shopping Festival this year, we expect to maintain business growth through trade-in services and are committed to strengthening our delivery capabilities to better serve users in recycling and trade-in. the proportion of EP2C retail revenue increased by 8% year over year. Regarding the second question, the year-on-year improvement of non-GAAP operating profit margin in the first quarter was mainly due to our pricing strategy and balanced control of the overall expense ratio. As Kerry noted, in the first quarter of 2024, Apple's official trade-in program and our overseas business reported high revenue and losses. However, in the first quarter of 2025, as we optimize business and pricing strategies, the profit margin of the two businesses has significantly improved. Meanwhile, by leveraging our supply chain strength, the proportion of 1P2C retail revenue increased by 8% year-over-year. 同期，随着自营业务规模的快速增长，我们阶段性地撤动自营门店的发展，在履约和处置端均增加人手。因此，non-GAAP 费用履约费用率同比增加 0.9%。 During the same period, as our 1P business expanded rapidly, we strategically focused on self-operated stores and increased staff in fulfillment and operations functions. Thus, the non-GAAP fulfillment expense ratio rose by 0.9% year-over-year. Non-GAAP 销售费用率同比增加 2.2%。主要影响因素来自推广和广告费用。本季度随着业务需求增加，我们增加了优惠券等推广类费用，配合品牌认知度提升的需求，我们进行了符合业务增长预期的投入规划，比如之前分享的对二回收品牌的新媒体投入。另外，在与京东加强回收和以旧换新协同的过程中，渠道佣金出现了在预期内的一些提升。 The non-GAAP selling expenses ratio has increased by 2.2%, mainly due to higher promotion and advertising expenses. With rising business demands, we increased coupon-related promotion expenses this quarter. Meanwhile, to raise brand awareness, we made investments aligned with business growth, such as in new media platform of AHS Recycle brand. Additionally, in strengthening recycling and trade-in collaboration with JD.com, channel commissions rose as expected. 由于集团精细化的管理和研发运营，一季度的 non-GAAP 管理与研发费用率均呈现下降趋势。故本季度 non-GAAP 经营利润率可以同比提升 0.2%。 Benefiting from our refined management of general and administrative expenses, as well as technology and content expenses, both non-GAAP expense ratios decreased in the first quarter. As a result, the non-GAAP operating profit margin for the first quarter increased by 0.2% year-over-year. reflect more effective operating leverage. Looking at the full year of 2025, we remain committed to our goal of accelerating total revenue growth. We will continue to strengthen our fulfillment capacity and brand influence to support growth in trade-in volumes driven by national subsidy programs and maintain competitive pricing strategies. In the future, we aim to gradually improve our non-GAAP operating profit margin, reflecting our effective operating leverage. Your next question comes from Zhao Wang with CICC. Please go ahead. 关铁成，晚上好。感谢接受我的提问。我有一个问题，就是咱们此前的管理层也讲到说计划今年会加速开店，全年可能会有一个净新增 800 家的这样一个二回收门店的规模。那请问能否分享一下一季度的这样一个开店进度？我来自己翻译一下。 Thank you for taking my question. As you mentioned earlier, your goal is to accelerate store openings this year with a target of a net add of 800 AHS Recycle stores. Can you share details on the progress of store opening in the first quarter? Thank you. We converted some stores to self-operated mode to enhance the recycling performance of these stores through more efficient self-operated management and operational capabilities. As of March 31, 2025, there were a total of 1,886 AHS Recycle stores nationwide, including 917 self-operated stores and 969 joint-operated stores. The total number of stores has increased by a net of 458 compared to the same period last year. Compared to the end of 2024, in certain areas of three high-tier cities, we transitioned some of our joint-operated stores to a self-operated model to effectively handle the incremental trade-in volumes from national subsidies and improve user satisfaction. This change allows us to leverage the more efficient self-managed operational capabilities to quickly boost the recycling performance of these stores. 同期，我们快速建设上门交付能力建设。上门团队的人员规模突破了 1,000 人，同比竞争约 360 人，在更加广泛的用户市场形成了交付力的提升。 Over the same period, our two-door fulfillment team expanded by 360 people year-over-year to 1,000 people, strengthening our fulfillment capabilities in more markets. 到店回收与到家回收齐头并进，进一步提升了二回收面对面服务的比例。在用户进推荐值 NPS 的调研过程中，到店回收与上门回收两种线下当场确认的交付方式的用户满意度持续大幅领先于物流取件的回收方式。我们将坚持夯实线下交付履约能力，为用户提供行业最佳的以旧换新体验。 We are increasing the proportion of face-to-face services by extending both in-store and two-door services. In our NPS service, users are much more satisfied with these two face-to-face offline services featuring instant confirmation than with logistics-based pickup. We will continue to enhance our offline fulfillment capabilities to provide the best-in-class trade-in experience. 好，谢谢。 Thank you for the question. Your next question comes from Michael Kim with Zacks Small Cap Research. Please go ahead. Great. Good morning and good evening, everyone. Just one question from me. Just in terms of your initiatives to enhance the AHS Recycle brand, can you discuss how much traction you've seen as a result of your increased focus on marketing and advertising? Then just related to that, how should we be thinking about incremental expenses or customer acquisition costs as you continue to prioritize improving brand awareness and loyalty? Thanks. still very low, we are promoting through some prudent new media marketing activities. AHS Recycle has solidified its position as a leading brand in recycling by providing best-in-class fulfillment services. We believe that high-quality services and proactive response to user feedback are the cornerstones of brand reputation. Given the current low penetration rate of recycling services, we have strategically employed well-planned new media campaigns to promote our services and enhance brand awareness. 一方面，我们记录并制作真实有趣的回收服务工作，向更广泛的用户介绍二回收价格好、安全且便捷的回收服务。另一方面，我们基于地理位置向用户推送附近的二回收门店，转化用户从二回收小程序、官网、门店的下单。此外，我们支持门店加盟商与加盟商共同制作对本地用户更有共鸣的内容，为加盟商门店新媒体账号进行赋能，带动本地用户到店体验回收服务。作为结果，今年一季度二回收小程序官网来源产品的收入增长显著，收入增速显著快于 EP 整体的增速。 On the one hand, we introduce engaging content showcasing our recycling services, emphasizing AHS Recycle's competitive pricing, security, and convenience. On the other hand, by leveraging geotargeting, we guide users to nearby AHS Recycle stores, driving orders through our mini program, official website, and AHS stores. Furthermore, we enhance the new media presence of our joint operating stores by co-creating content that resonates with local users, thereby attracting more customers to the stores. As a result, in the first quarter, the product revenue from AHS mini program and official website grew faster than our overall 1P business. 值得强调的是，在国补的促进作用下，更多用户接触到或使用了二手回收服务。我们相信，随着我们有节奏地建设二回收品牌力，并提供行业领先的回收服务体验，二回收将进一步提升市场份额和用户心智认知。 The national subsidy has also played a role in increasing user awareness and adoption of our services. Looking ahead, we will continue to strengthen the AHS Recycle brand and refine our industry-leading recycling service offerings to capture greater market share and reinforce user perception. Okay, thank you. As there are no further questions at this time, I'd like to turn the conference back to management for closing remarks. Thank you. Thank you all again for joining us. A replay of today's call will be available on our IR website shortly, followed by a transcript ready. If you have any additional questions, please feel free to email us at ir@atrenew.com. Have a good day. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.