New business from a national trade-in program to boost consumer spending, combined with transaction value growth for its diversified products, helped to lift recycling specialist ATRenew Inc. (RERE.US) to its strongest quarterly growth in more than a year during the first quarter. The company also recorded its second-highest quarterly profit during the period as it continued to sell more of its recycled smartphones and electronics directly to consumers.

ATRenew started out as a mostly pass-through middleman between people selling their used smartphones and third-party merchants who specialized in used phone sales. But over time it has increased its own direct sales to consumers, a business that carries higher margins. It has also stepped up its refurbishing capabilities, which helps to boost margins by allowing it to charge higher prices for its reconditioned products.

To raise its profile and more easily sell directly to consumers, the company has been aggressively building out a national retail store network where people can personally inspect products before buying them. It’s also deepening a partnership with e-commerce giant JD.com (JD.US; 9618.HK), which has also helped to boost ATRenew’s direct-to-consumer sales. Last but not least, the company has also been raising its profile as a consumer brand by spending more heavily on marketing, including promotions over popular social media platforms like Douyin and RedNote.