Aihuishou (爱回收) says phone price hikes are net positive as Q4 gold-recycling GMV more than doubles

Strong quarter; gold and multi‑category recycling surge

Aihuishou (爱回收) reported a robust Q4 as higher new‑phone prices and offline promotions helped lift its used‑goods business. Total revenue for Q4 reached ¥6.25 billion, up 29% year‑on‑year, with non‑GAAP operating profit of ¥180 million (+38.1%) and non‑GAAP net profit of ¥140 million (+14%). For the full year 2025 the platform recorded 41.7 million transactions and product revenue of ¥19.38 billion, and it has achieved full‑year GAAP profitability for the first time.

The company highlighted particularly strong growth in higher‑margin and niche lines: fourth‑quarter gold‑recycling GMV jumped 136.3% year‑on‑year and multi‑category GMV rose 125.7%, together adding roughly ¥80 million in service revenue. Overseas business is also scaling — reportedly reaching a single‑month peak of ¥50 million — and compliant refurbished product sales climbed 90.8% as 1P (self‑operated) retail mix rose to 41.7% of 1P revenue.

Price shocks, policy pressures, and the second‑hand opportunity

Aihuishou’s management argues the current spike in new‑phone prices is more opportunity than threat. It has been reported that storage shortages tied to massive AI deployments and broader supply‑chain pressure — compounded by export controls and trade frictions affecting chip and component flows — are forcing OEMs to raise handset prices. Omdia expects global smartphone shipments to fall about 7% in 2026, while IDC projects China’s second‑hand (including refurbished) market could exceed 100 million units next year. So who wins when new devices get pricier? Platforms like Aihuishou, the company says.

CEO Chen Xuefeng (陈雪峰) told investors the group views 2026 as “overall more beneficial than harmful” to the second‑hand sector, but he also warned that sustained new‑phone declines would eventually feed back into used supply. To counter that risk, Aihuishou plans to keep a “retail‑first” 1P strategy, push higher C‑end recycling prices, and double down on AI for pricing, quality control and operations to lower costs and lift margins.

Outlook and risks

Aihuishou guided Q1 2026 revenue to ¥5.86–5.96 billion (implying roughly 26–28% year‑on‑year growth), and flagged profitability improvements via scale and tighter expense control. The near‑term picture favours second‑hand channels as consumers trade down or seek better value, but the business still sits inside a cyclical ecosystem: fewer new handset sales today can mean fewer trade‑ins tomorrow. Geopolitical and component‑supply pressures that helped spur this quarter’s tailwind could just as easily become a longer‑term headwind, it has been reported.