Shanghai Securities News China Securities Network News (Reporter Wang Zilin) On November 22, the second-hand consumer electronics trading and service platform Everything New (Love Recycling) Group released its performance report for the third quarter of 2023.
In the third quarter, the total revenue of All Things New Life Group was 3.26 billion yuan, a year-on-year increase of 28.4%, breaking through the performance guidance of high-end. In this quarter, the group achieved a non GAAP operating profit of 73.81 million yuan (non GAAP standard, adjusted standard, excluding employee equity incentive expenses, intangible asset amortization, and deferred cost effects caused by acquisitions, the same below), reaching a new historical high. In addition, through automation technology transformation, warehouse layout optimization, and logistics efficiency improvement, the non GAAP performance fee rate has been decreasing since the first quarter of 2021, from 10.7% in the same period last year to 8.7%.
From the perspective of revenue composition in the third quarter, the sales revenue of 1P (self operated) products reached 2.92 billion yuan, a year-on-year increase of 31.4%, becoming the main growth engine of the group; The revenue from 3P (platform) services was 330 million yuan, a year-on-year increase of 7.2%, and the platform fee rate reached 5.4%. The platform business maintained healthy development.
It is worth noting that in terms of 1P self operated business, in the third quarter, users directly went to the store without reservation to collect revenue, which increased by 6 percentage points compared to the same period last year, indicating an increase in the influence of the Love Recycling brand and the store's direct reach to consumers. In October of this year, Love Recycling achieved a milestone of over 100 million yuan in single city and monthly recycling in Beijing and Shanghai.
Chen Chen, Chief Financial Officer of Everything New, stated: In addition to the positive growth in revenue and recycling performance, we also accelerated the achievement of new profit breakthroughs in the third quarter, achieving an adjusted operating profit of 73.81 million yuan. This is thanks to the improved operational efficiency brought by our automated quality inspection capabilities, combined with the optimization of large and small warehouse networks and the adaptation of material flow plans, and further optimization of the performance fee rate through adjustments. In terms of fund utilization, we balanced strategic cooperation opportunities with brand manufacturers and refined management Fund utilization and source acquisition, with a continuous implementation of the share repurchase plan using $4 million during the quarter. As of the end of the third quarter, the group's cash and cash equivalents, restricted funds, short-term investments, and third-party payment platform account balance amounted to 2.3 billion yuan, ensuring the sustainable development of the group's business
In terms of store expansion, as of September 30, 2023, the offline stores of Everything New have covered 273 cities, with a total of 1952 stores.
Chairman of the board of directors of Everything New CEO Chen Xuefeng stated: In the third quarter of this year, we achieved unexpected results in both revenue and adjusted operating profit. The group's total revenue was 3.26 billion yuan, an increase of 28.4% year-on-year. The product revenue of the 1P business benefited from the continuous demand for recycling and renewal by users, maintaining a year-on-year growth rate of over 30%. On the basis of the year-on-year increase in user activity, the service fee rate of the platform business increased by 95 basis points to 5.4% year-on-year. At the same time, our multi category recycling performance in the third quarter Degree maintains rapid growth, and users are enthusiastic about bringing high value idle goods such as second-hand luxury goods and gold to love recycling and monetization. In the long run, the rebirth of all things has a leading and unique industry positioning in the important development trend of circular economy