Conference Transcript - RERE 2026-05-13

Operator

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to AT Renew Inc.'s first quarter 2026 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, Ms. Jessie Jin, Head of Investor Relations. Please go ahead, ma'am.

Jessie Jin, Head of Investor Relations

Thank you. Hello, everyone, and welcome to AQRI News First Quarter 2026 Earnings Conference Call. Speaking first today is Kerry Chen, our founder, chairman, and CEO, and he will be followed by Rex Chen, our CFO. After that, we will open the call to questions from the analysts. The First Quarter 2026 financial results were released earlier today. earnings press release and investor slides accompanying this call are now 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 participate during the Q&A session. Please note our safe harbor statements. Some of Most of the information you will hear during our discussion today will consist of forward-looking statements, and I refer to you our safe harbor statement in the earnings press release. Any forward-looking statements that management makes on this call are based on assumptions as of today, and that actual renew 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 request release, which contains a reconciliation of non-GAP measures to GAP 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. Now, I'd like to turn the call over to Kerry for business and strategy updates.

Kerry Chen, Chairman

We are very happy to share with you the success of this year, and to improve some ideas of the development of the two-time business industry.

Jessie Jin, Head of Investor Relations

Hello everyone, and thank you for joining AT3NEWS' first quarter of 2026 Earnings Conference Call. We are pleased to review our operating results and share our latest perspectives regarding capability building in the second-time industry this year.

Kerry Chen, Chairman

今年年初,我们延续了春节不打羊的运营策略,如期实现了业绩开门红,于第一季度实现了整体业绩的加速增长,集团总收入61.6亿元加速增长了32.4%,其中EP产品的收入增长同比增长34.4%为主要驱动力, 3P服务增长同比增长10.4% 保持健康的发展节奏 在利润端,Nangap经营利润同比增长70.2%至1.9亿元 Nangap的经营利润率健康提升69个基点至3.1%

Jessie Jin, Head of Investor Relations

At the beginning of the year, we maintained and interrupted services during the Chinese New Year holiday achieving a strong start and delivering accelerated overall growth in the first quarter. Total net revenues reached R&B $6.16 billion, representing an accelerated growth rate of 32.4%. This momentum was primarily driven by 1P product revenue, which surged 34.4% year-over-year, while 3P service revenue maintained a healthy 10.4% year-over-year growth rate. Profitability also improved. Non-GAAP operating profit grew 70.2% over a year to 190 million RMB, while the non-GAAP operating profit margin expanded by 69 basis points to 3.16%.

Kerry Chen, Chairman

In the entire revenue and scale growth process, we are firmly in the main strategy of the U.P. as the main strategy. 巩固二手手机3C回收业交易的业务基本盘 在加强对中奔用户的价值创造过程中 我们通过抓一手扩援提升合规翻新的产出 进一步提升了EP2C的占比

Jessie Jin, Head of Investor Relations

Amid overall revenue and scale expansion We continue to advance our 1P-centric strategy to restrain our core foundation in the recycling and trading of second-hand consumer electronics. To drive greater value for retail users, we optimized our 1P2C ratio by securing first-hand supply sources and enhancing compliant refurbishment output.

Kerry Chen, Chairman

以旧欢心的大力支持,推进财政金融协同。在该背景下,爱护售与京东继续为消费者打造行业最佳的以旧欢心消费方案,以更好的一站式换机体验和更有综合优势的价格,切实服务消费者多元化的购买需求。 因此,在金灯扩援中,宇宙欢新呈现出更快速的增长业绩 定单量占比在去年进一步提升至七成

Jessie Jin, Head of Investor Relations

On the supply side, we capitalized on industry trends by prioritizing trade-in scenarios that deliver superior use experiences, while shifting more fulfillment to offline via two-door services In 2026, the government maintained strong support for trade-in and further advanced fiscal and financial coordination. Against this backdrop, AHS Recycle continues to work closely with JD.com to create industry-leading trade-in solutions, providing a seamless one-stop trade-in experience at highly competitive prices to meet diverse consumer needs. As a result, within the JD sourcing channel, trading orders outpaced overall growth, with volume share further expanding year over year to about 70%.

Kerry Chen, Chairman

48 位专业的上门人员将交付服务带到用户面前 面对面的交付比例达到80% 以爱回收的旅游能力和品牌与用户建立连接与信任 预计在大处和品牌旗舰机发付等业务旺季 我们将探索采用盘性运力方案

Jessie Jin, Head of Investor Relations

throughout the recycling fulfillment process, we actively guide users towards face-to-face transactions in offline settings. In the first quarter, we expanded beyond our network of 2,156 stores across major cities and scaled up our door-to-door service team to 2,248 professionals, bringing our services directly to users' doorsteps. This strategy has lifted our face-to-face fulfillment ratio to 80%, fostering deep connection and trust through AHS Recycle's fulfillment capabilities and brand presence. Looking ahead to peak seasons, like major promotional campaigns and flagship device launches, we will further implement flexible workforce solutions to enhance face-to-face fulfillment timeliness and user experience even during the busiest times.

Kerry Chen, Chairman

加强了产业量的厚度,三星产品的整体收入同比增加76.1%,其中比销定修业务模式收入同比增长有180%。 我们的合规三星能力为2C的零售扩充了更多的优质二手商品。 In the form of it, through the September 24th, the Apple network, and the March, the three-week and the new Apple news, the new e-week quarter, the two-week market market sell. The average market will be believed to have a 50% of the year. As a result, the three-week market share of the two new e-week market sell, the 2 million dollars, which achieved more than two-week Eisemabons. 业务里程碑 级别以上 今年一季度产品收入的2C零售占比提升至45.1% 对比去年同期的33%和去年四季度的41.7% 分别上升了12.1%和3.4% During the first quarter, we leveraged our proprietary compliant refurbishment business to add depth to our supply chain.

Jessie Jin, Head of Investor Relations

with compliant refurbished product revenue increasing 76.1% year-over-year. Our on-demand refurbishment model was a standout performer, growing by roughly 180% in revenue. Our compliant refurbishment capabilities allowed us to provide more quality second-hand devices directly to consumers. In terms of retail channels, we expanded across PyPySelection, our official website, and new media channels, which drove nearly 150% year-over-year growth in 1P2C retail revenue from refurbished devices. March marked a significant breakthrough with monthly retail sales of compliant refurbished products topping $200 million. As a result, 1P2C accounted for 45.1% of our product revenue in the first quarter of 2026, rising 12.1 percentage points from 33% young year and 3.4 percentage points from 41.7% quarter over quarter. This strategic pivot toward direct-to-consumer sales allows us to align our recycling prices with real-time retail trends, ensuring we offer better recycling prices, maintain a strong price advantage, and create greater value for end-users. Regarding N-3 and N-4 models, we targeted differentiated demand for device generation in the international markets to drive compliant exports. This strategy allows us to steadily expand our global scale and unlock an additional over 4% growth profit margin.

Kerry Chen, Chairman

We will allow our customers to increase the performance of the market by using a simple standard for the medium-sized market to reduce the use of the medium-sized market.

Jessie Jin, Head of Investor Relations

Turning to our 3T business, PJT Marketplace also delivered healthy and rapid growth in both scale and revenue, further reinforcing its position as industry infrastructure. As we onboarded more new users, we offered pre-shipping on the first three orders to those new users on PJT Marketplace. We are also replicating the operational capabilities PJT Marketplace has built in serving large clients and extending them to small and medium-sized merchants. By streamlining platform processes, we have lowered the barrier to using the platform and improved both transaction efficiency and convenience, enabling small and medium-sized

Kerry Chen, Chairman

merchants to sell their products at better prices. to the platform on the platform. This also has been confirmed that the price tag供应链 has been effective.

Jessie Jin, Head of Investor Relations

Leveraging TJT Marketplace's robust supply chain capabilities as the industry's leading B2B platform, we deliver high-quality supply through those merchants while reaching fragmented markets through the user base. By the end of the first quarter, the number of total registered merchants on TJT Marketplace the PGT marketplace nearly doubled year-over-year to almost 2 million. Mostly, the number of registered contracted buyers surged by over 120%, as an influx of small and micro buyers seeking high-quality value for money products came up to the platform. This validates the effective implementation of our PGT marketplace supply chain strategy to penetrate fragmented markets.

Kerry Chen, Chairman

在三宾模式下 拍拍仍在向寄卖模式做倾斜 由拍拍团队提供更标准化 经营起来更轻松的二手民售服务 自去年二季度以来 拍拍寄卖进一步帮用户帮商家打通了个多元的严选渠道的销路 一季度寄卖业务规模保持了快速的双位数增长 In our 3P business model, PyPy continues to shift toward the consignment model.

Jessie Jin, Head of Investor Relations

Under this model, the PyPy team provides merchants with standardized operational services, making the pre-owned retail easier for them to manage. Since the second quarter of last year, PyPy consignment has continued to provide merchants with broader access to curated retail channels. In the first quarter, the confinement business maintained a rapid double-digit growth, helping pre-owned retail merchants move closer to consumers.

Kerry Chen, Chairman

We will still have 966新闻店開通了多品內回收業務 til去年3月末增加了近300家 We are there, we will be prepared for more of loving shops 開通多品內回收能力 包括與更多的加入商、協作、 建設黃金回收等服務能力 And together with more of the first-time, 愛回收門店的位置和空間都在升級 for new users to provide a better交互 environment and product value.

Jessie Jin, Head of Investor Relations

Multi-category recycling sustained rapid growth in the first quarter, with overall recycling GMV up 81.5% year-over-year. Among them, gold recycling GMV grew 83.3% and second-hand luxury recycling GMV grew 58.8%, both showing solid growth momentum. By the end of March, we launched multi-category recycling services across 966 AHS stores, adding nearly 300 stores compared to the end of March last year. Looking ahead, we expect to roll out this capacity to more self-operated AHS stores through the rest of the year, while also working with more franchisees to build those recycling service capabilities. Alongside the growth of our multicultural business, we are also upgrading the locations and layouts of our stores, creating a better fulfillment experience and conveying greater brand value to both new and existing users. In summary, the overall 3P service take rate was 4.92% in the first quarter, in line with our expectations.

Kerry Chen, Chairman

第二是复盘战略的长期性。 We will provide more information with user-friendly and better quality services. We will provide more care, and provide more information with the most effective services. In the process, we will try to build a lot of tools, and then build a value of AI and the experience. 中专用户的服务,工业的效率,通过合规翻新来扩大产业链的价值厚度,通过更多比例的QC零售来提升产业链的价值。

Jessie Jin, Head of Investor Relations

These results validated the effectiveness of the three-stage development strategy we previously shared. Based on 2026 market dynamics, let me revisit the long-term nature of our strategy. Stage one, we continue to solidify the healthy growth of our core second-hand consumer electronics business. In our category assessment within the second-hand industry, we identified second-hand consumer electronics as a category with both scale and enormous room for further penetration. As national trading policies promote consumption and industry upgrades, we are actively positioning ourselves in recycling and trading scenarios, strengthening the brand recognition of AHF Recycle to serve broader user replacement and upgrade needs, enabling more electronic products to achieve a second life cycle, and creating greater value for society. Throughout this process, we are steadfastly building our 1P business capabilities, increasing our use of AI tools, optimizing pricing experiences and end-user services, and supply chain efficiency, while expanding our industry value chain through compliant refreshment and creating more value to retail users through a higher portion of retail sales.

Kerry Chen, Chairman

我们在已旧换新场景之外 在抖音小红书保持对爱回收品牌的独立且审慎的品牌投入 结合返航新生项目 爱回收年动越来越多的消费品牌 从社区到商圈到校园到职场 走进更多大众消费商圈 占据独特的场景与地理位置 鼓励更多年轻用户参与到回收与绿色消费

Jessie Jin, Head of Investor Relations

Stage two, we are strengthening AHS Recycle's position as China's leading recycling brand. We believe that in the second-hand service industry, pricing, trust, and convenience are the three core pillars that define the long-term use experience. And in the industry's long-term development path, brand equity holds enduring value. Young trade-in scenarios, we maintain independent and prudent brand investments in AHS Recycle across Douyin and Xiaohongshu. Combined with the REVIVE initiative, AHS Recycle has partnered with an increasing number of consumer brands to penetrate more mainstream commercial districts, from local communities to shopping districts, from campuses to workplaces. By securing these unique scenarios and locations, AHS Recycle encourages more younger users to participate in recycling and grain consumption.

Kerry Chen, Chairman

第三季战略,推进海外战略的突破,海外市场的B2B的商业模式,通过国行产品出口外销,积累口碑与能力,持续推进在海外版开市场的全球B2B平台和产品研发方面的探索,并有节奏地推进直接服务C端用户的能力建设。

Jessie Jin, Head of Investor Relations

Stage three, we continue to advance breakthroughs in our overseas strategy. The B2B business in overseas markets represents a business model we are familiar with. By accumulating reputation and capabilities of export of China-sourced supplies, we continue to explore global versions of TJT marketplace and product development, while systematically building capabilities to directly serve end consumers.

Kerry Chen, Chairman

二、二、二、二、六年以来的市场环境,据行业数据显示,中国市场的新机出货量小,从品牌结构来看,二手市场具有主流地位的苹果与华为产品,在新机市场出现了逆势的上涨,这得益于更具优势的规定能力与定价。 为此我们此前判断了三个机遇方向得以验证 及一 二手市场的价格走势整体平稳坚平 夯实了行业长期健康发展的基础 第二点 与我们业务核心驱动力高度相关的苹果产品 在市场份额方面显示出很大的优势 Now, let me share a few thoughts on the 2026 market environment.

Jessie Jin, Head of Investor Relations

Industry data shows that new device shipments in China have dipped slightly this year by about 4%. However, if we look at the brand mix, Apple and Huawei remain mainstream brands in the print-owned market. Both grew against a broader trend in the new device market, supported by their supply chain capabilities and pricing advantages. This has validated the three opportunities we previously identified. First, pricing trends in the print-owned market remain broadly stable and resilient, laying a solid foundation for the long-term healthy development for the industry. Second, Apple products, which are closely tied to our core business drivers, have demonstrated market share advantages. Third, brands and platforms continue to place greater emphasis on trading programs. Their increased investment here supports our efficiency in acquiring first-hand recycling supplies. Taking these together, we expect to deliver robots and rapid growth this year by leveraging our efficient automated quality inspection technology and value-added supply chain capabilities, we will further unlock economies of scale. Now I'd like to turn the call over to our CFO RACs for financial updates.

Rex Chen, CFO

Good day everyone, I'm pleased to share our financial performance for the first quarter of

Jessie Jin, Head of Investor Relations

2026, our revenues grew rapidly and profits reached a record high. As China's circular economy continues to advance and trading programs for consumer electronics remain ongoing, we sustained strong growth momentum in the first quarter. During the quarter, we leveraged our direct-to-customer recycling scenarios and face-to-face fulfillment capabilities, enhanced our supply chain and retail capabilities, and further strengthened user mindshare of the AHS Recycle Brand. The first quarter, total revenue exceeded the high end of our guidance, increasing by 32.4% to 6.16 billion RMB, while non-GAAP operating income surged by 70.2% to over 190 million RMB. To review the financials in detail, please note that all figures are in RMB and all comparisons are on a year-over-year basis unless otherwise stated.

Rex Chen, CFO

In the first quarter, total revenue growth was primarily driven by continued growth in net product revenue.

Jessie Jin, Head of Investor Relations

Net product revenues increased by 34.4% to $5.73 billion, largely attributable to the growth in online sales of free-owned consumer electronics.

Rex Chen, CFO

Service revenues were $430 million in the first quarter, with presenting an increase of 10.4%.

Jessie Jin, Head of Investor Relations

The increase was largely driven by PJP marketplace and multi-cat-ware recycling business. The overall tick rate of our market space was 4.92% for the first quarter of 2026. During the quarter, our multi-culture recycling business contributed over $83 million RMB in revenue, accounting for 19.3% of service revenue.

Rex Chen, CFO

To discuss operating expenses, to provide greater clarity on the trends of our actual operating-based expenses,

Jessie Jin, Head of Investor Relations

we will mainly discuss our non-GAAP operating expenses, which better reflect how management views our operating results. The reconciliations of GAAP to non-GAAP results are available in our earnings release and the corresponding Form 6K furnished with the USSEP.

Rex Chen, CFO

Some of the costs increased by 33.2% to $4.82 billion, in line with the growth in product sales.

Jessie Jin, Head of Investor Relations

Growth profit margin for our 1P business was 15.9%. Margin improvement in pre-recycling scenarios, compliant refurbishment capabilities incorporated in our supply chains, and an increasingly diversified retail channel mix. This allowed us to increase the proportion of higher margin retail sales, with 1P2C revenue accounting for 45.1% of product revenue in the first quarter of 2026, up from 33% in the same period last year.

Rex Chen, CFO

that the financial system increased by 22.5% to $520 million.

Jessie Jin, Head of Investor Relations

NGAP fulfillment expenses increased by 22.7% to $520 million. Under the NGAP measures, we are driven by higher personnel costs, driven by the growth of our business compared to the same period in 2025. Additionally, operating center-related expenses rose along with the increasing volumes of rights, resulting in transactions. Lent gap fulfillment expenses as a percentage of total revenues decreased to 8.5% from 9.1%.

Rex Chen, CFO

Selling and marketing expenses increased by 17.9% to 490 million.

Jessie Jin, Head of Investor Relations

Lent gap selling and marketing expenses increased by 27% to 490 million. primarily driven by an increase in commission expenses in relation to channel service fees. Lung Gap selling and marketing expenses as a percentage of total revenues decreased to 8% from 8.3%.

Rex Chen, CFO

General and administrative expenses increased by 25.9% to $79.8 million.

Jessie Jin, Head of Investor Relations

Lung Gap G&A expenses also increased by 33% to $79 million, primarily due to an increase in personnel costs. Lengap G&A expenses as a percentage of total revenues remain flat year-over-year at 1.3%.

Rex Chen, CFO

Research and development expenses increased by 33.5% to 73.4 million.

Jessie Jin, Head of Investor Relations

Lengap R&D expenses increased by 36.4% to 72.3 million. primarily due to an increase in personnel costs. Lengap R&D expenses as a percentage of total revenues increased to 1.2% from 1.1%.

Rex Chen, CFO

As a result, our Lengap operating income exceeded $190 million in the first quarter of 2026

Jessie Jin, Head of Investor Relations

compared to Lengap operating income of $110 million in the first quarter of 2025 the quarter, compared to 2.4% in the first quarter of 2025, representing an increase of

Rex Chen, CFO

69 basis of 2026 cash and cash equivalents, restricted cash short-party payment service

Jessie Jin, Head of Investor Relations

providers, total $1.72 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns.

Rex Chen, CFO

During the first quarter of 2026, we repurchased a total of approximately 0.5 million ADSs for approximately 2.7 million U.S. dollars.

Jessie Jin, Head of Investor Relations

On the 30th of 2025, the board has authorized a share repurchase program under which the company may repurchase up to 50 million U.S. dollars of our shares over 12 months. In 2026, we repurchased approximately 11 million U.S. dollars under this program, authorized the extension of the existing share repurchase program for 12 months from June 30, 2026, with key terms unchanged. Turning to the business outlook, for the second quarter of 2026, we anticipate total revenues to be between 6,240 million RMB to 6,340 million RMB, representing an increase of 25% to 27% 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. Concludes our prepared remarks. Operator, we are now ready to take questions.

Operator

Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone 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 2. 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. The first question today comes from Rafael Tse with DBS. Please go ahead.

Rafael Tse, Analyst — DBS

Hey, hey, hey, can you hear me?

Jessie Jin, Head of Investor Relations

Can you hear me?

Rafael Tse, Analyst — DBS

Okay, well, I'm Kerry and Weston. 大家各个管理层晚上好啊 我是DBS的Rafael 然后非常恭喜公司一季度有非常亮丽的业绩啊 想请问管理层对于2026年全年的收入与利润的增长 有没有新的指引啊 I'll recap in English Congratulations for the brilliant first quarter results Does management have any updated guidance on revenue and profit growth for the full year of 2026? Thank you

Kerry Chen, Chairman

Thank you for the question.

Jessie Jin, Head of Investor Relations

We continue to actively pursue our four-year operating targets. From a strategic perspective, we will continue to prioritize our 1P business, which spans the end-to-end value chain and enables us to deliver a better user experience and create greater value.

Kerry Chen, Chairman

In terms of scale growth, we've seen the government's continued promotion of consumer

Jessie Jin, Head of Investor Relations

electronics trading programs, the expansion of eligible categories and meaningful subsidy support. Together with dedicated investments by brand manufacturers and platforms including JD.com in trading scenarios. These factors allow us to capitalize on this momentum and secure more for first-hand supply efficiently and at lower cost. They also reduce our reliance on traffic-driven marketing and performance advertising for a high-value low-frequency consumer electronics category.

Kerry Chen, Chairman

備用於合規出口供應鏈能力逐步夯實後 國內紮實的現有貨盤支撐了這個業務的成長 同時我們再進一步探索將國內積累的能力 包括回收交付 平台能力 自動化技術等的出口機會 For our international business, we are advancing at a steady pace.

Jessie Jin, Head of Investor Relations

In the first quarter, overseas revenue grew rapidly year over year. This was largely driven by our solid domestic inventory base as our confined export supply chain capabilities gradually strengthened. Meanwhile, we are exploring opportunities to bring more of the capabilities we have built in China to overseas markets. These include resecting fulfillment, platform capabilities, and export opportunities of automation technologies, among others. We will also remain disciplined in our international expansion investments while actively applying new AI technologies to accelerate business from the incubation stage towards rapid growth.

Kerry Chen, Chairman

As a forecast, we look forward to update you with more developments from the overseas business during the next Earnings Conference call. will be our important important task for our AI-to-reporting system. In the AI-to-reporting system, we will be actively encouraging the AI-to-reporting system and share with the development of the internal network, the improvement of the recovery, the improvement of the data, the improvement of the data, and the improvement of the data, and the improvement of the data. We will be able to expand the environment for long-term and increase the performance of the system.

Jessie Jin, Head of Investor Relations

Regarding efficiency improvements, building flexible fulfillment capabilities in our 1P scenarios, as well as incorporating AI across automated quality inspection, R&D, and operations, will be key priorities as we strengthen our 1P model. In terms of AI-enabled productivity, we actively encourage AI learning and knowledge sharing across the organization. We have already made progress in areas such as in-store compliance audits and risk control, resecting pricing algorithm, optimization, and coding efficiency. Going forward, we will gradually expand these applications, laying the groundwork for long-term organizational efficiency gains and improved profitability.

Kerry Chen, Chairman

Taken together, we expect to scale in 2026 at a pace faster than what we expected internally

Jessie Jin, Head of Investor Relations

at the beginning of the year. We also expect to achieve meaningful margin improvement. Thank you for the question.

Operator

The next question comes from Wang Zhao with CICC. Please go ahead.

Jessie Jin, Head of Investor Relations

Congratulations for the strong results. I have one question. Could you please give us more color about your plan for store expansion and to draw fulfillment capacity in 2026? Thank you.

Kerry Chen, Chairman

Thank you for your question. 今季度末在965家爱回收自行门店中有841家开通了多品类的服务能力,实现了更加用户友好的门店形象和空间设计,进一步提升了爱回收的品牌形象和交付体验。 Thank you for the question.

Jessie Jin, Head of Investor Relations

During the first quarter, we reviewed our nationwide store network based on sectors such as location quality and traffic performance. We optimized our store footprint by phasing out certain end-performing stores while further improving the efficiency of our high-quality stores so they can better and more efficiently capture online traffic. We also maintained focus on store quality. By expanding service categories, we continued to increase the proportion of stores capable of providing multi-category-recycling services. By the end of the first quarter, 841 of our 965 self-operated AHS stores have enabled multi-category service capabilities, alongside more user-friendly store layouts and upgraded in-store experiences, further strengthening AHS recycles brand image and fulfillment experience. We have our AHS velocity at store openings. It follows a leapfrog pattern, opening new stores, solidifying store performance, and then further ramping up store openings. We will continue to follow this rhythm based on our past experience. Looking at the long term, our goal of reaching 5,000 stores in China remains unchanged.

Kerry Chen, Chairman

同期呢 我们全国上门团队的交付人数同比增加近500人 支持重点业务场景 尤其是京东的面对面的比例 京东以旧黄金的面对面比例 保证了履约交付的范围提高了时效性 巩固了行业领先的交付体验 此外呢 我们也为弹性运力做储备 at the same time, we added nearly 500 two-door service teams nationwide year-over-year.

Jessie Jin, Head of Investor Relations

This helped increase the proportion of face-to-face fulfillment in key service scenarios, including JD's trading services, expand fulfillment coverage, improve service speed, and further reinforce our industry-leading fulfillment experience. In addition, we are also building up flexible workforce capacity. During peak seasons, such as major promotional campaigns and flagship device launches, we can quickly activate additional two-door capacity to ensure fulfillment experience and quality while meeting face-to-face demand.

Kerry Chen, Chairman

Okay. Thank you.

Operator

it if you will. Thank you for the question. The next question comes from Brian Lantier with

Brian Lantier, Analyst — Zach Smallcap

Zach Smallcap. Please go ahead. Good evening, and I'll add my congratulations on the strong performance this quarter. I was wondering if you could provide some insight into the growth of inventory in the first quarter. Specifically, is the inventory build mostly due to anticipated demand growth or changes in the product mix, and how should we think about normalized inventory

Rex Chen, CFO

going forward. 像EP2C倾斜的过程中存货的多段天数会有一定的增长 由于排基堂人士行业的基础设施 我们掌握了行业的价格能力 因此存货的增加并不会对核心业务动产生显速的影响 QE 因为部分品牌厂商在新品发布过程中才用了提价的策略 因此我们判断二手的价格会相对稳定 存货的价格也相对稳定 所以我们在QE没有加速降价的销售 Thank you for the question.

Jessie Jin, Head of Investor Relations

Our recycling and trading business continue to gain user recognition, especially during the trading scenarios. As we build stronger user mindshare, we are also enhancing the customer experience by offering more attractive pricing. against the backdrop of the rising uptrend costs for new devices, especially memory price hikes. Second-hand market prices have remained relatively stable compared to past cycles, and we have even seen price increases in some products. As a result, we are not in a hurry to reprice our high-quality inventory for faster turnover, and part of it will be sold in the second quarter as inventory will normalize. In addition, the increase in inventory is consistent with our strategy of strengthening 1P2C sales. On average, inventory turnover days for 1P2C retail are longer than those of bulk sales. Therefore, as our revenue mix continues to shift towards 1P2C, inventory turnover days may increase to some extent. That said, as PJT marketplace remains an important piece of industry infrastructure, it supports our strong pricing capabilities. Therefore, the increase in inventory is not expected to have significant impact on turnover in our core businesses. Thank you for the question.

Operator

This concludes our question and answer session. I'd like to turn the conference back over to management for closing remarks.

Jessie Jin, Head of Investor Relations

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 when ready. If you have any additional questions, please feel free to email us at ir.atrenew.com. Have a good day.

Operator

This conference is now concluded. Thank you for attending today's presentation. You may now disconnect.