ATRenew Inc. Provides Update on Its Status Under the Holding Foreign Companies Accountable Act

Rhea-AI Summary

ATRenew Inc. (NYSE: RERE) provided an update regarding its status under the Holding Foreign Companies Accountable Act (HFCAA) on May 5, 2022. Following the filing of its annual report on Form 20-F for 2021, the U.S. SEC provisionally identified the Company as a Commission-Identified Issuer. This designation indicates that the Company's auditor's working papers cannot be fully inspected by the PCAOB. ATRenew emphasizes its commitment to comply with regulations and its mission to support a circular economy through pre-owned electronics services.

Positive

• Commitment to compliance with laws and regulations in both China and the U.S.
• Focus on contributing to the development of a circular economy.
• Technology-driven platform aimed at empowering small and mid-merchants.

Negative

• Provisional identification as a Commission-Identified Issuer due to PCAOB inspection issues.

SHANGHAI, May 5, 2022 /PRNewswire/ -- ATRenew Inc. ("ATRenew" or the "Company") (NYSE: RERE), a leading technology-driven pre-owned consumer electronics transactions and services platform in China, today provides an update on its status under the Holding Foreign Companies Accountable Act (the "HFCAA").

On May 4, 2022, as expected in its implementation of the HFCAA, the U.S. Securities and Exchange Commission (the "SEC") provisionally named the Company as a Commission-Identified Issuer, following the Company's filing of its annual report on Form 20-F for the fiscal year ended December 31, 2021 with the SEC on April 27, 2022.

ATRenew understands the SEC made such identification pursuant to the HFCAA and its implementation rules issued thereunder, and this indicates that the SEC determines that the Company used an auditor whose working paper cannot be inspected or investigated completely by the PCAOB, to issue the audit opinion for its financial statements for the fiscal year ended December 31, 2021.

In accordance with the HFCAA, a company will be delisted from a U.S. stock exchange only if the company has been identified by the SEC for three consecutive years due to PCAOB's inability to inspect auditor's working paper.

Mr. Kerry Xuefeng Chen, the Founder, Chairman, and Chief Executive Officer of ATRenew, commented, "We will continue to comply with applicable laws and regulations in both China and the U.S. and to monitor market developments and evaluate all strategic options. We will uphold our mission 'to give a second life to all idle goods', continuously contribute to the development of a circular economy, offer consumers safe and convenient recycling and trade-in services, and leverage technology to empower mid- and small-merchants with efficient pre-owned electronics trading services."

About ATRenew Inc.

Headquartered in Shanghai, ATRenew Inc. operates a leading technology-driven pre-owned consumer electronics transactions and services platform in China under the brand ATRenew. Since its inception in 2011, ATRenew has been on a mission to give a second life to all idle goods, addressing the environmental impact of pre-owned consumer electronics by facilitating recycling and trade-in services, and distributing the devices to prolong their lifecycle. ATRenew's open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. Through its end-to-end coverage of the entire value chain and its proprietary inspection, grading, and pricing technologies, ATRenew sets the standard for China's pre-owned consumer electronics industry.

Investor Relations Contact

In China:
ATRenew Inc.
Investor Relations
Email: ir@atrenew.com

In the United States:
ICR LLC.
Email: atrenew@icrinc.com
Tel: +1-212-537-0461

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SOURCE ATRenew Inc.

FAQ

What is the SEC's designation for ATRenew under the HFCAA?

ATRenew was provisionally named as a Commission-Identified Issuer by the SEC.

What does the SEC's identification mean for ATRenew?

It indicates that the auditor's working papers for ATRenew's financial statements cannot be fully inspected by the PCAOB.

What could happen to ATRenew if it remains under the HFCAA for three years?

If identified for three consecutive years, ATRenew could face delisting from U.S. stock exchanges.

What is ATRenew's mission?

ATRenew's mission is to give a second life to all idle goods and promote recycling and trade-in services.

When did ATRenew file its annual report on Form 20-F?

ATRenew filed its annual report on Form 20-F for the fiscal year ending December 31, 2021, on April 27, 2022.