China's leading second-hand consumer electronics platform, Wanwu Xinxing (RERE, Financial), announced its financial results for the third quarter ending September 30, 2024. The company reported a total net revenue of RMB 4.0512 billion, marking a 24.4% increase compared to the same period in 2023. Net profit reached RMB 17.9 million, a significant turnaround from a net loss of RMB 44.2 million in the previous year. Adjusted net profit, not following GAAP standards, was RMB 90.1 million, up from RMB 47.6 million in 2023.
The breakdown of Q3 results shows net product revenue at RMB 3.6722 billion, a 25.6% rise from the previous year, while net service revenue grew by 13.9% to RMB 379 million. Operating costs and expenses rose by 21.8% to RMB 4.0281 billion, with notable increases in cost of goods sold and fulfillment costs, which rose by 24.2% and 20.7% respectively.
Operating profit for the quarter was RMB 24.9 million, compared to an operating loss of RMB 28.1 million in the same period last year. Adjusted operating profit was RMB 104 million, an improvement from RMB 73.8 million in 2023. Basic and diluted earnings per share were RMB 0.11, compared to a loss of RMB 0.27 per share last year. Non-GAAP earnings per share were RMB 0.56 and RMB 0.55, respectively, compared to RMB 0.30 and RMB 0.29 in 2023.
As of September 30, 2024, the company held RMB 2.3505 billion in cash and equivalents, down from RMB 2.8544 billion at the end of 2023. The platform processed 9.1 million consumer product transactions in the third quarter, up from 8.2 million in the same period last year.
During Q3 2024, Wanwu Xinxing repurchased approximately 4.9 million ADS shares for around USD 12.1 million, bringing the total repurchase to about 8.2 million ADS shares valued at USD 20.1 million under its current buyback program.
For the fourth quarter of 2024, Wanwu Xinxing projects total revenue to reach between RMB 4.740 billion and RMB 4.840 billion, representing a year-over-year growth of 22.4% to 24.9%.
