Aug 20, 2026 earnings call — 1P growth and overseas expansion focus
Total net revenues rose 32.4% year-over-year to RMB 6.61 billion, exceeding the high end of guidance.
Revenue $1.0B (est $0.9B) · EPS $0.10 (est $0.09)
Key quotes
"In recent years, we have firmly prioritized 1P business because trust and efficiency are critical in the secondhand consumer electronics industry."
"During the major promotional period from May 13 through June 18, the recycling value of mobile phones and consumer electronics at AHS Recycle increased 57% year-over-year."
"In June this year, we hit a milestone with HKD 120 million in monthly sales."
Analyst Q&A 4
iPhone 18 impact and guidance
Q (Hejing Liu · UBS): Will iPhone 18 launch affect financial results? Any update on full-year revenue and margin guidance?
A: Management said they already factored major flagship launches, including iPhone 18, into third quarter guidance. They explained trade-ins become more important when new-device sales soften, which has strengthened their sourcing and supply advantage. They expect to maintain strong revenue and profit growth this year.
"Take the iPhone 18 lineup as an example, current market expectations are that Apple may introduce more premium models and some standard modules could shift to next spring." — Xiaoyi Jin
why service revenue fell and outlook
Q (Wan Jiao · CICC): Why did service revenue decline and what is the outlook?
A: They said second-quarter net service revenue fell mainly for two operational reasons: higher merchant subsidies and fee discounts during promotions. Looking ahead, they expect PJT to grow as it expands into lower-tier markets and they are shifting Paipai B2C toward 1P curated retail and 3P consignment, which may affect short-term revenue but support longer-term growth.
"In the second quarter, net service revenue decreased by 4.2% year-over-year, mainly due to 2 factors." — Xiaoyi Jin
overseas expansion and goals
Q (Brian Lantier · Zacks Small-Cap): What are the plans and goals for international business and performance?
A: They said overseas is mainly B2B today, about 90% of overseas revenue, and they aim to build FoneSquare into a global PJT-like marketplace within 3 years. They plan to expand supply and buyer networks, bring automation overseas, start new regional capabilities in Dubai later this year, and cautiously explore consumer To-C under ReRe.
"Our goal is to build FoneSquare into a global version of PJT marketplace in 3 years." — Xiaoyi Jin
store count changes and plans
Q (Wut Hei Tse · DBS): Why did store numbers drop and how should we forecast store changes this year?
A: They said store count adjustments reflect two choices: closing or repositioning underperforming stores after rapid expansion, and preparing a new tiered themed-store strategy. They will roll out more category-themed stores, keep store-build budgets disciplined with no extra investment, and strengthen in-store and to-door fulfillment.
"Moving forward, we will adopt a tiered store strategy, upgrading select locations into specialized category themed stores." — Xiaoyi Jin