Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to ATRenew Inc.'s Fourth Quarter and Full Year 2025 Earnings Conference Call. [Operator Instructions] 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.

Thank you. Hello, everyone, and welcome to ATRenew's Fourth Quarter and Full Year 2025 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 fourth quarter and full year 2025 financial results were released earlier today. The 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 statement. Some of the information you will hear during the discussion today will consist of forward-looking statements, and I refer you to 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 ATRenew does not take any obligation to update our assumptions on these statements. Also, the 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.

[Interpreted] Hello, everyone, and thank you for joining ATRenew's Fourth Quarter and Full Year 2025 Earnings Conference Call. We are pleased to review our rapidly improving quarterly operating results and share our outlook for 2026 in alignment with our long-term development strategy. I would like to begin by expressing my gratitude to our team for their hard work and dedication throughout 2025. By steadfastly strengthening our core capabilities and enhancing the user experience, we successfully seized upon the growing domestic demand for second-hand consumer electronics recycling and trade-in services, delivering robust growth across the company. In the fourth quarter, we once again achieved strong growth in both revenue and profit. Total net revenues reached RMB 6.25 billion, representing a 29% year-over-year growth. Non-GAAP operating profit reached RMB 180 million, up 38.1% year-over-year. For the full year 2025, total net revenues grew 28.9% year-over-year to RMB 21.05 billion, while non-GAAP operating profit reached RMB 560 million (sic) [ RMB 555 million ] up 35.5% year-over-year. Both revenue and profit exceeded the expectations we set internally at the beginning of the year. Looking closer at our fourth quarter performance. We continue to prioritize our 1P strategy, which drove a robust 30.7% growth in net product revenue. By coordinating with major flagship device launches and the e-commerce promotional campaigns, we effectively carried out recycling and trade-in programs. Throughout this period, we further strengthened our off-line presence and fulfillment capabilities, expanding our face-to-face reach through a network of 2,195 AHS stores and a team of 2,154 to-door service members. Notably, the proportion of offline fulfillment for JD.com's trade-in program increased compared to the first half of the year. Together with JD.com, we made joint efforts across multiple dimensions, including recycling prices, negotiated rates and fulfillment timeliness. Those efforts continue to define the industry best-in-class…

[Interpreted] Good day, everyone. I'm pleased to report our fourth quarter and full year results of 2025, marked by both revenue and profits reaching record highs. Over the past year, we effectively leveraged the strategic opportunities arising from China's trade-in programs and industry dynamics. By consistently enhancing fulfillment capabilities, we deliver best-in-class trade-in experiences while solidifying our brand presence as China's leading recycling brand, further reinforcing our market leadership. In the fourth quarter, our total revenue exceeded the high end of our guidance, increasing by 29% to RMB 6.25 billion, while non-GAAP operating income surged by 38.1% to over RMB 180 million. For the full year, revenue grew by 28.9% to RMB 21.05 billion, while non-GAAP operating income rose by 35.5% to nearly RMB 560 million. These results underscore our robust fulfillment capabilities on the recycling side and the growing influence of our brand, which has been pivotal amid the rapid development of China's circular economy. 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. In the fourth quarter, total revenue growth was primarily driven by continued net product revenue growth. Net product revenues increased by 30.7% to RMB 5.83 billion, largely attributable to the growth in online sales of pre-owned consumer electronics. Net product revenue for the full year reached RMB 19.38 billion, representing a year-over-year increase of 30.6%. Net service revenues were RMB 420 million in the fourth quarter, representing an increase of 8.8%. The increase was largely driven by PJT Marketplace and the multi-category recycling business. The overall take rate of our marketplaces was 4.79% for the fourth quarter of 2025. During the quarter, our multi-category recycling business contributed nearly RMB 80 million of revenue, accounting for 18.8% of…

[Operator Instructions] The first question today comes from Wan Jiao with CICC.

[Interpreted] Congratulations for the strong quarter. I have one question. During the recent 2 sessions, the government confirmed the scale of national subsidies for consumer trading programs. However, storage prices have been rising for several quarters. And in March, we've seen manufacturers raising more devices prices. How do you view the impact on the pre-owned consumer electronics industry this year? And will you revise your 2026 guidance?

[Interpreted] I'd like to take the first question. For 2026, the government has extended trading subsidies for mobile phones, tablets and smart watches. Smart glasses have now also been added to the list. In 2025, the trade-in subsidy has been applied to the new device sales, which were priced under RMB 6,000, which we were not eligible to compensate this kind of national subsidy. However, as we were able to capture the upgrade, the need from consumer trading process that we will benefit from the similar process in 2026. For our pre-owned consumer electronics businesses, our role hasn't been changed. We help users monetize their old devices, and we make trade-in hassle free. To be clear, we are not involved -- but with that said, with the broader policy push, including measures insurance subsidies for retail users continues to strengthen public awareness of trade-ins that growing awareness drives momentum that works directly in our favor. In 2025, driven by large-scale AI deployment and applications, the industry began to see memory shortages and significant price increases, putting component cost pressure on new device manufacturers, particularly in smartphones. In 2026, as memory prices rose more rapidly, Android manufacturers had to raise new device prices, while Apple kept its pricing relatively stable. This widening gap has reinforced Apple's position in the preowned market, and we have seen the share of Apple products in our business increase on a sequential basis. More broadly, rising new device prices created both opportunities and challenges. On the one hand, trade-ins are likely to become a higher priority for e-commerce platforms and manufacturers. Certain trade-in scenarios can be combined with national subsidies and by offering more competitive recycling prices, we can serve more users' trade-in needs and drive rapid growth in supply sourcing. On the other hand, competitive pricing and high-quality user experiences have become even more crucial as more consumers adopt the preowned alternatives. On pricing, we remain committed to our retail-first strategy, maintaining our target of retail revenue at 50% of our 1P business. We are exploring using 2C curative sales prices as a benchmark to set more competitive trade-in prices. On experience, our user experience committee established last year will continue to run frequent and rigorous reviews across key satisfactory metrics, ensuring we remain responsive to user feedback and act on it swiftly. Looking ahead to the full year, we expect the growth of our total net revenue to continue outpacing the double-digit growth of the broader industry. Continued scale expansion and disciplined cost control positions us to return margins to an upward trajectory.

The next question comes from [ Rafale Fe ] with [ DBS ].

[Foreign Language] I'll translate in English. May I ask the management what is the store opening target in 2026.

[Interpreted] Looking back at 2025, we recognized early that national subsidies would accelerate pre-owned industry growth. So we invested decisively in offline fulfillment, expanding our store network and scaling up our 2-door service team. In 2025, we had a net addition of 451 AHS standard stores. Going forward, we -- our priority remains the expansion of our standard stores with consumer electronics as the core. We will also increase the proportion of multi-category recycling services for high-value products across our stores, which will drive higher per store profit contribution. In lower-tier cities, we will continue to grow through local franchisee partners and city partners to jointly develop the pre-owned market, allowing us to extend our store coverage in an asset-light way. Beyond stores, we also built a nationwide to-door service team. Daily order generating headcount grew by over 1,000, effectively expanding our store network with a flexible workforce. This on-demand capacity allowed us to quickly fill the fulfillment gap when trading volumes surged. With both our store network and door team working together, our face-to-face trading fulfillment ratio exceeded 70% and user experience continued to improve. For 2026, we will follow the same approach. We will enhance store quality in high-tier cities, expand our store footprint in lower-tier cities and flexibly adjust our 2-door service team to match seasonal demand. Our AHS stores serves not only as fulfillment locations, but also as important touch points for our brands. Our store network and online traffic need to grow in tandem and reinforce each other. Over the medium to long term, our target of 5,000 stores remains unchanged, but we will adjust the pace of store openings as needed based on online traffic growth and our broader brand strategy.

The next question comes from Brian Lantier with Zacks Small-Cap Research.

[indiscernible] more color on the long-term improvement trajectory.

[Interpreted] The pre-owned consumer electronics industry has stable fundamentals and a well-established brand landscape. Rising new device prices reinforce our commitment to the 1P retail strategy. And we expect both recycling and retail prices to trend upward. Meanwhile, as higher-margin retail product revenue represents a growing share of our mix, we anticipate gradual 1P gross margin expansion as well. Over the long term, what matters to us is the improvement in our non-GAAP operating margin driven by economies of scale. This plays out in several areas. One comes from our automated quality inspection technology, which can reduce quality inspection costs for order by approximately 30% compared to manual inspection. We continue to refine our automation road map and are scaling these capabilities at our Dongguan and Changzhou operation centers to drive efficiency gains. We are also beginning to deploy automated logistics infrastructure on a smaller scale. Together, these efforts are expected to improve our non-GAAP fulfillment expense ratio. On the selling and marketing side, the industry is still at an early stage. We do not need to -- though we do need to increase our pricing attractiveness with sales vouchers. Over the medium to long term, we plan to maintain disciplined spending in brand marketing to solidify AHS Recycle as a top brand for recycling services in consumers' minds. As the industry matures and brand trust deepens, we see a clear opportunity to improve our selling and marketing expense ratio.

There are no further questions at this time. I'd like to turn the conference back over to management for closing remarks.

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, feel free to e-mail us at ir@atrenew.com. Have a great day.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]