Exhibit 99.1 Baozun Announces First Quarter 2024 Unaudited Financial Results SHANGHAI, China, May 28, 2024 - Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) ("Baozun", the "Company" or the "Group"), a leading brand e-commerce solution provider and digital commerce enabler in China, today announced its unaudited financial results for the first quarter ended March 31, 2024. Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, "I'm pleased with our solid execution of transformation in the firs ...

Acquisitions and Strategic Partnerships - In February 2023, Baozun successfully acquired Gap's Greater China business, significantly enhancing its operational foundation through localized products and marketing strategies, supply chain restructuring, and IT system upgrades[5]. - Baozun announced a strategic acquisition of 51% stake in Hangzhou Luokexun Information Technology Co., enhancing its capabilities in the Douyin ecosystem[21]. - The acquisition of a 51% stake in ABG Group established a joint venture for the British high-end outdoor brand Hunter in Greater China and Southeast Asia[5]. - The acquisition of Hunter's related intellectual property has been completed, with plans to diversify distribution channels and expand new categories in China, Singapore, and Malaysia[45]. - The acquisition of Gapp (Shanghai) Commercial Co., Ltd. was completed on January 31, 2023, and efforts are ongoing to finalize the acquisition of Gapp Taiwan Co., Ltd.[88]. - The company has made a strategic acquisition of a leading service provider on Douyin, enhancing its content creation and live streaming capabilities[135]. - The company has established a joint venture to acquire a 51% stake in Hunter IP Holdco, which holds the intellectual property rights for the Hunter brand in Greater China and Southeast Asia[171]. Financial Performance - The total net revenue for the year was approximately RMB 8,812.0 million (USD 1,241.1 million), representing a growth of about 4.9% compared to RMB 8,400.6 million in 2022[48]. - The company recorded a net loss of approximately RMB 222.8 million (USD 31.4 million) for the year, an improvement from a net loss of RMB 610.4 million (USD 88.5 million) in the previous year[34]. - Other operating profit increased by 29.5% to RMB 123.4 million (USD 17.4 million) from RMB 95.3 million (USD 13.8 million) in the previous year, mainly due to incremental profits related to the acquisition of Cap Shanghai[33]. - For the year ended December 31, total revenue reached RMB 8,812.0 million, representing a 4.9% increase from RMB 8,400.6 million in the previous year[173]. - Product sales revenue increased to RMB 3,357.2 million, accounting for 38.1% of total revenue, while service revenue decreased to RMB 5,454.8 million, making up 61.9% of total revenue[173]. - Other income (expenses) netted approximately RMB 10.6 million, a significant decrease of about 98.3% from RMB 613.6 million in the previous year, mainly due to losses from derivative liabilities[178]. Operational Efficiency and Technology - The integration of over 70 historical operating systems led to the launch of Gap China's omnichannel retail operations platform, improving sales efficiency and inventory turnover rates[7]. - Baozun's technology innovation center streamlined system architecture, laying a solid foundation for future growth[7]. - The company has streamlined its backend operations through technology-driven process reengineering, further supporting cost reduction and efficiency improvements[128]. - The local supply chain has improved significantly, reducing the time from design to shelf from 3-6 months to a few weeks, resulting in a 70-day reduction in inventory[187]. - The company aims to enhance efficiency and drive sales through its omnichannel digital operation platform (BOCDOP) and innovative business models[183]. Market Expansion and Business Lines - The company aims to expand its business into three lines: Baozun E-commerce (BEC), Baozun Brand Management (BBM), and Baozun International (BZI) in 2023[18]. - The company aims to expand into high-potential categories such as alcohol, health and beauty, and automotive in 2024[44]. - The company has established operational departments in six regions outside mainland China, including Hong Kong, Taiwan, Singapore, Malaysia, the Philippines, and France[40]. - The company plans to introduce the Hunter brand into the Southeast Asian markets of Singapore and Malaysia in 2024, leveraging synergies across its business segments[126]. - The company has established a unique business ecosystem through its three main business lines: Baozun E-commerce, Baozun Brand Management, and Baozun International, enhancing service experience and solutions for a broader range of partners and customers[125]. Employee and Administrative Changes - The company had 7,827 full-time employees as of December 31, 2023, an increase from 7,588 employees as of December 31, 2022, primarily due to the acquisition of a subsidiary, Gapp Shanghai, in Q1 2023[89]. - Management and administrative expenses increased by 130.4% from RMB 371.5 million (USD 53.9 million) to RMB 855.9 million (USD 120.6 million) due to increased costs associated with the acquisition of subsidiary Gaipu Shanghai and strategic investments in brand management[52]. Shareholder Value and Financial Management - The board has authorized a new share repurchase plan, allowing the company to repurchase up to USD 20 million of its issued shares over the next twelve months starting January 24, 2024[91]. - The board does not recommend any final dividend for the year ended December 31, 2023[200]. - The company remains cautiously optimistic about the macroeconomic uncertainties while focusing on sustainable and patient execution of its strategic transformation plan[139]. Risk Management and Future Outlook - The company has not utilized financial instruments to hedge foreign exchange risks during the year, but will continue to monitor and take prudent measures to mitigate such risks[87]. - The company will continue to focus on foreign exchange risks and will take appropriate actions as necessary[87]. - The management team remains committed to enhancing operational efficiency and exploring new market opportunities[90]. - The company is actively pursuing strategic acquisitions to expand its market presence and capabilities[88].

Financial Performance - Net revenues for the year ended December 31, 2023, reached RMB 8,812,013 thousand, representing an increase of 4.9% from RMB 8,400,631 thousand in 2022[44] - The company reported a net income of RMB 222,776 thousand for 2023, a significant recovery from a net loss of RMB 610,374 thousand in 2022[44] - Total net revenues increased from RMB 7,278.2 million in 2019 to RMB 8,812.0 million (US$1,241.1 million) in 2023, representing a compound annual growth rate of 4.9%[81] - The company recorded a net loss of RMB 222.8 million (approximately USD 31.4 million) in 2023, following net losses of RMB 610.4 million in 2022 and RMB 206.0 million in 2021[66] - The overall financial performance indicates a positive trend, with a focus on improving operational efficiency and profitability moving forward[44] Revenue Sources and Concentration - Revenues from Shanghai Zunyi contributed 8.6%, 6.8%, and 6.2% of total net revenues in 2021, 2022, and 2023, respectively[20] - In 2023, net revenues related to the top 10 brand partners comprised approximately 55.3% of total net revenues, with the top two brand partners contributing 14.4% and 14.0% respectively[63] - The total GMV related to the top 10 brand partners comprised a significant portion of the company's total GMV in 2023, highlighting the reliance on key partnerships[63] Cash Flow and Liquidity - For the year ended December 31, 2023, the net cash provided by operating activities was RMB 448,255 thousand, a significant increase from RMB 382,605 thousand in 2022[46] - The net cash used in investing activities for 2023 was RMB (340,372) thousand, compared to RMB (1,306,661) thousand in 2022, indicating a reduction in cash outflow[46] - The net cash provided by financing activities in 2023 was RMB (8,033) thousand, a notable change from RMB (1,650,402) thousand in 2022[46] Assets and Liabilities - As of December 31, 2023, total assets amounted to RMB 10,474,476 thousand, a slight increase from RMB 10,122,470 thousand in 2022[39][41] - Total liabilities as of December 31, 2023, were RMB 4,622,740 thousand, compared to RMB 4,446,132 thousand in 2022, reflecting an increase in financial obligations[39][41] - Cash and cash equivalents decreased to RMB 2,149,531 thousand as of December 31, 2023, down from RMB 2,144,020 thousand in 2022[39][41] Operational Efficiency - Accounts receivable, net, decreased to RMB 2,184,729 thousand in 2023 from RMB 2,292,678 thousand in 2022, indicating improved collection efficiency[39][41] - The company’s inventories, net, increased to RMB 1,045,116 thousand in 2023 from RMB 942,997 thousand in 2022, suggesting a strategy to support future sales[39][41] - The increase in accounts receivable turnover days from 2022 to 2023 was attributed to improved capital management and shortened payment cycles from a newly acquired business[113] Investments and Growth Strategy - The company plans to focus on market expansion and new product development to drive future growth, although specific figures were not disclosed[44] - The company has made significant investments in technology and product innovation, aiming to enhance competitive advantage in the market[44] - The company has entered into business transformation, expanding into three major business lines: Baozun E-Commerce, Baozun Brand Management, and Baozun International[86] Regulatory and Compliance Risks - The PRC government has indicated an intent to exert more oversight over overseas offerings by domestic companies, with new regulations implemented on March 31, 2023[27] - The company is subject to PRC regulatory restrictions on foreign investment, which could lead to severe penalties or loss of interests in operations if deemed non-compliant[199] - The company must comply with various PRC regulations, and failure to do so could result in administrative penalties or loss of licenses[145] Market and Competitive Environment - The company faces intense competition in the brand e-commerce solutions market, which may lead to reduced pricing or service scope[73] - The company relies heavily on e-commerce channels, with a substantial majority of GMV derived from merchandise sold on platforms like Tmall[69] - The company anticipates that operating expenses will increase substantially in the foreseeable future, which may impact the ability to return to profitability[66] Risks and Challenges - The company may continue to incur losses in the future and may not be able to maintain profitability, which could significantly affect the value of the company and its shares[66] - The company faces risks associated with strategic alliances and acquisitions, which may adversely affect its business and financial condition[94] - External factors such as natural disasters and health epidemics could adversely affect the company's operations and financial results[198] Human Resources and Labor Market - Competition for talent in the PRC e-commerce industry is intense, leading to potential increases in compensation and benefits to attract and retain key personnel[155] - The company faces a tightening labor market and rising labor costs in China, which could materially and adversely affect its business operations[159] Data Security and Cybersecurity - The company generates and processes large amounts of data, and any failure to protect this data could harm its reputation and business prospects[161] - Compliance with evolving PRC laws regarding data security and protection may increase operational costs and expose the company to legal risks[165] - The company may be required to undergo cybersecurity reviews for data processing activities that affect national security, which could impact its operations[170] Shareholder and VIE Relations - The shareholders of the VIE, including the founder and CEO, may have conflicts of interest that could adversely affect the company's ability to control the VIE and receive economic benefits from it[213] - There are currently no arrangements in place to address potential conflicts of interest between the company and the shareholders of the VIE, which could lead to reliance on legal proceedings if disputes arise[214] - The company may face adverse tax consequences if the PRC tax authorities determine that the contractual arrangements with the VIE were not conducted at arm's length, potentially increasing tax liabilities and reducing net income[215]

Financial Performance - For the fiscal year ending December 31, 2023, Baozun Inc. reported a net loss attributable to ordinary shareholders of RMB 222,776,000, compared to a net loss of RMB 610,374,000 for the previous year, representing a decrease of approximately 63.5%[7] - The total comprehensive loss attributable to ordinary shareholders for the year was RMB 143,568,000, a significant reduction from RMB 535,009,000 in 2022, indicating an improvement of about 73.1%[7] - The basic and diluted net loss per American depositary share (ADS) for 2023 was RMB 4.68, compared to RMB 10.69 in 2022, showing a decrease of about 56.3%[19] - The total comprehensive loss for the year 2023 was RMB 87,922,000, a significant improvement from RMB 492,093,000 in 2022, representing a reduction of approximately 82.1%[7] - The net loss attributable to ordinary shareholders was RMB 278.4 million (USD 39.2 million), narrowing from RMB 653.3 million in the previous fiscal year[25] - The company reported a significant decrease in non-GAAP operating loss to RMB 23.7 million (USD 3.3 million) from a profit of RMB 256.1 million in 2022[25] - The company incurred share-based compensation expenses of RMB 103,449 million in 2023, a decrease from RMB 142,381 million in 2022[186] - The impairment of goodwill and investments increased to RMB 35,212 million in 2023 from RMB 21,555 million in 2022[186] - The company reported unrealized investment losses of RMB 68,031 million in 2023, compared to RMB 97,827 million in the previous year[186] Revenue and Expenses - Total net revenue for the year was RMB 8,812.0 million (USD 1,241.1 million), representing a year-over-year increase of 4.9%[24] - Service revenue amounted to RMB 5,454.8 million (USD 768.3 million), a decrease of 5.2% year-over-year[24] - The operating loss for the year was RMB 206.4 million (USD 29.1 million), compared to an operating profit of RMB 33.3 million in 2022[24] - Total operating expenses for the year were RMB 9,018.4 million (USD 1,270.2 million), an increase from RMB 8,367.3 million in 2022[28] - Revenue from product sales increased mainly due to the contribution from BBM product sales, including retail revenue from the Shanghai business, which was partially offset by a decline in BEC product sales due to weak performance in small appliances and electronics[117] - Service revenue decreased due to the disposal of a loss-making subsidiary in Q4 2022 and a reduction in warehousing business volume, leading to a decrease of RMB 202.6 million in warehousing and fulfillment revenue and RMB 100.6 million in digital marketing revenue[118] Assets and Liabilities - The company's total equity increased slightly from RMB 4,238,256,000 in 2022 to RMB 4,266,878,000 in 2023, reflecting a growth of approximately 0.7%[11] - The total liabilities and redeemable non-controlling interests increased from RMB 10,122,470,000 in 2022 to RMB 10,474,476,000 in 2023, marking an increase of approximately 3.5%[11] - As of December 31, 2023, total liabilities increased to RMB 4,622,740, up from RMB 4,446,132 in 2022, representing a growth of approximately 4%[33] - Current liabilities totaled RMB 3,757,960 as of December 31, 2023, compared to RMB 3,681,645 in 2022, indicating an increase of about 2%[33] - The company's short-term loans rose to RMB 1,115,721 in 2023, up from RMB 1,016,071 in 2022, reflecting a growth of approximately 10%[33] - The total non-current liabilities reached RMB 864,780 in 2023, up from RMB 764,487 in 2022, which is an increase of about 13%[33] - The company reported a total asset of RMB 10,474.5 million (USD 1,475.3 million) as of December 31, 2023[32] - Cash and cash equivalents were RMB 2,149.5 million (USD 302.8 million), slightly up from RMB 2,144.0 million in 2022[32] Shareholder Information - The company did not recommend any final dividends for the years ended December 31, 2022, and December 31, 2023[56] - The company reported a net loss per share for the year ended December 31, 2023, with 1,843,486 unexercised restricted share units excluded from the diluted earnings per share calculation[63] - The board of directors has decided not to recommend the payment of a final dividend for the year, consistent with the previous year where no dividend was paid[181] Strategic Initiatives - The company plans to focus on market expansion and new product development in the upcoming fiscal year[25] - The company aims to replicate its successful e-commerce business model in international markets, leveraging local market insights and key e-commerce infrastructure[85] - The company aims to enhance its omnichannel capabilities, particularly focusing on Douyin and other content-based channels for future growth[98] - The company has established operations in six regions outside mainland China, including Hong Kong, Taiwan, Singapore, Malaysia, the Philippines, and France, with over 100 overseas employees[95] - The company announced a strategic acquisition intention to acquire 51% of Hangzhou Luokexun Information Technology Co., enhancing its position in the Douyin ecosystem[79] - The company launched a new product line in Gap Shanghai, which includes three series: trendy college style, urban functional style, and minimalist style, well-received by Chinese consumers[83] - The company established a creative content business center to better capture emerging demands for content creation and live streaming, with five studios launched by December 31, 2023[89] Employee and Governance - The company had 7,827 full-time employees as of December 31, 2023, an increase from 7,588 employees as of December 31, 2022, reflecting a growth of about 3.2% due to the acquisition of a subsidiary in Q1 2023[163] - The company has upgraded its internal training program, launching a comprehensive practical training plan at its training facility, Baoshun University, in 2023[9] - The company aims to achieve high standards of corporate governance, adopting the corporate governance code as its own[10] Tax and Compliance - The effective tax rate for 2023 was reported at 5.53%, a decrease from 4.56% in 2022, indicating a slight increase in tax burden[44] - The company has five subsidiaries certified as "High-tech Enterprises," benefiting from a reduced tax rate of 15% since 2018[43] - The company's income tax expense for the year was RMB 12.0 million ($1.7 million), a decrease from RMB 26.5 million ($3.8 million) for the year ended December 31, 2022[8] Financial Reporting and Auditing - The company’s management uses non-GAAP financial measures to assess operational performance, excluding stock-based compensation and intangible asset amortization from acquisitions[183] - The company’s auditor has verified the unaudited consolidated financial statements for the year ended December 31, 2023, but did not provide any assurance or audit opinion on the preliminary announcement[182]

Financial Data and Key Metrics Changes - Total revenues for the group grew 5% year-over-year to RMB8.8 billion, driven by contributions from Baozun Brand Management (BBM) [10][15] - Annual operating cash flow and free cash flow both grew by double digits year-over-year, reaching record highs [9][16] - In Q4 2023, total revenues expanded nearly 9% to RMB2.8 billion, with e-commerce revenue declining to RMB2.4 billion due to a weaker economic environment [13][15] Business Line Data and Key Metrics Changes - E-commerce revenue decreased 23% year-over-year, particularly in appliances, electronics, and fast-moving consumer goods, while healthcare and beauty categories saw increased sales [13][14] - BBM generated total revenue of RMB458 million in Q4, a sequential improvement of 53%, with product sales revenue growing by 36% to RMB1 billion [14] - Gross profit for product sales more than doubled to RMB315 million, with a gross margin of 30%, significantly improved from 17% a year ago [14] Market Data and Key Metrics Changes - The company has established a strong presence in luxury and premium apparel categories on Tmall and JD platforms, acquiring over 50 new brands in 2023 [18][21] - The company is focusing on expanding into high-potential categories such as wine and spirit, health and beauty, and luxury automotive in 2024 [21][22] Company Strategy and Development Direction - The company aims to fortify its market leadership position while expanding into new product categories and enhancing omnichannel capabilities [21][22] - A new business model has been introduced where Baozun serves as the exclusive distribution partner for brands in China, managing all sales channels [23] - The company is strategically investing in interest and content-based e-commerce, including live streaming and partnerships with platforms like Douyin [19][20] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about macro uncertainties but is confident that ongoing transformation has strengthened business fundamentals [12] - The focus for 2024 is on executing business strategies to create high-quality and sustainable growth, with an emphasis on customer satisfaction and operational efficiency [21][24] Other Important Information - The company has been recognized as a representative vendor in Gartner's 2024 market guide for distributed order management systems, highlighting its technical capabilities [11] - A new share repurchase program of USD20 million has been approved by the board to enhance shareholder value [12] Q&A Session Summary Question: What is the latest consumption shopping sentiment observed in 2024? - Management noted that consumer confidence remains low, but certain categories like outdoor and healthy food are performing better [34] Question: Have you noticed any differences in user spending habits between online and offline stores? - The premiumization progress is faster offline, but online gross margins have improved significantly [36] Question: What is the growth outlook for non-Tmall channels? - Non-Tmall channels are becoming increasingly important, with a focus on Douyin and Tencent channels [41] Question: Can you discuss the strategies for Baozun's international business in 2024? - The company has established a full team for e-commerce services in Southeast Asia and plans to open online and offline stores for brands like Honda [49] Question: How is AIGC being utilized in the company's business? - AIGC is being integrated across various functions, with a focus on generating content and enhancing operational efficiency [51] Question: What measures can be adopted to improve the margin of Gap in the future? - Continued discipline on discounts and refining product offerings are key to improving margins [56]

4Q 2023 Earnings Presentation Disclaimer This presentation does not constitute an offer to sell or issue or solicitation of an offer to buy or acquire securities of Baozun Inc. (the “Company”) in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respe ...

Financial Performance - For Q4 2023, Baozun reported an operating profit of RMB 75.7 million (USD 10.7 million), down from RMB 182.6 million in the same period last year, resulting in an operating profit margin of 2.7% compared to 7.2% in Q4 2022[7]. - The net loss attributable to ordinary shareholders was RMB 48.4 million (USD 6.8 million), significantly narrowing from RMB 284.3 million in the same period last year[9]. - Total net revenue for the fiscal year was RMB 8,812.0 million (USD 1,241.1 million), representing a year-over-year increase of 4.9% from RMB 8,400.6 million[11]. - The adjusted net profit attributable to ordinary shareholders was RMB 28.8 million (USD 4.1 million), compared to RMB 138.3 million in the same period last year[9]. - Operating profit for 2023 was RMB 6.4 million (USD 0.9 million), with an operating profit margin of 0.2%, down from 4.9% in 2022[23]. - The company reported an operating loss of RMB 206.4 million (USD 29.1 million) for the fiscal year, compared to an operating profit of RMB 33.3 million in the previous year[11]. - The basic and diluted net loss per American Depositary Share was RMB 1.09 (USD 0.15), compared to a profit of RMB 2.16 in the previous fiscal year[14]. - The company reported a net loss attributable to ordinary shareholders of RMB 278.4 million (USD 39.2 million), significantly narrowing from a net loss of RMB 653.3 million in fiscal year 2022[71]. Revenue Breakdown - Total revenue for 2023 reached RMB 8.8 billion, a year-on-year increase of 5%[22]. - Net revenue for Q4 was RMB 2,780.4 million (USD 391.6 million), up 8.9% from RMB 2,553.2 million in the same period last year[22]. - E-commerce business product sales revenue was RMB 3,357.2 million (USD 472.9 million), up from RMB 2,644.2 million in the 2022 fiscal year[46]. - E-commerce product sales revenue for Q4 2023 was RMB 597.5 million (USD 84.2 million), a decrease of 22.6% from RMB 772.4 million in the same period last year[52]. - Service revenue for 2023 was RMB 1,727.4 million (USD 243.3 million), a decrease of 3% from RMB 1,780.8 million in the previous year[38]. - The brand management segment generated net revenue of RMB 457.9 million for the three months ended December 31, 2023[93]. Expenses and Costs - Total operating expenses increased to RMB 2,774.0 million (USD 390.7 million) from RMB 2,429.1 million, primarily due to the acquisition of Gap Shanghai[39]. - Product costs rose to RMB 737.8 million (USD 103.9 million), up from RMB 643.3 million, mainly due to the acquisition of Gap Shanghai[41]. - Sales and marketing expenses increased to RMB 892.4 million (USD 125.7 million) from RMB 787.7 million, driven by the acquisition of Gap Shanghai[42]. - Technology and content expenses increased to RMB 140.8 million (USD 19.8 million) from RMB 112.1 million in the same period last year, driven by continued investment in technological innovation[57]. - The company’s fulfillment expenses decreased to RMB 2,507.3 million (USD 353.1 million) from RMB 2,719.7 million in fiscal year 2022, mainly due to cost savings from the expansion of regional service centers[66]. - The company incurred goodwill impairment losses of RMB 35,212 in Q4 2023, compared to RMB 13,155 in Q4 2022[136]. Business Developments - The company launched a new business line in Q1 2023, contributing to an 8.9% increase in total net revenue to RMB 2,780.4 million (USD 391.6 million) from RMB 2,553.2 million in the same period last year[19]. - Baozun was recognized by Gartner as a representative vendor in its 2024 Distributed Order Management Systems report, marking it as the only Asian vendor included[16]. - The company has restructured its operating segments into e-commerce and brand management following the acquisition of GAP Shanghai[92]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[136]. Assets and Liabilities - Total assets increased from RMB 10,122,470 thousand as of December 31, 2022, to RMB 10,474,476 thousand as of December 31, 2023, representing a growth of approximately 3.5%[104]. - Current assets decreased slightly from RMB 7,397,121 thousand to RMB 7,290,784 thousand, a decline of about 1.4%[104]. - Total liabilities rose from RMB 4,446,132 thousand to RMB 4,622,740 thousand, an increase of about 4%[120]. - Non-current assets increased significantly from RMB 2,725,349 thousand to RMB 3,183,692 thousand, a growth of about 16.8%[104]. - The total equity attributable to shareholders increased from RMB 1,438,082 thousand to RMB 1,584,858 thousand, representing a growth of approximately 10.2%[121]. Future Outlook - The company plans to hold a conference call on March 21, 2024, to discuss earnings[111].

Baozun Inc. (NASDAQ:BZUN) Q3 2023 Earnings Conference Call November 22, 2023 6:30 AM ET Company Participants Wendy Sun - Senior Director of Corporate Development and Investor Relations Vincent Qiu - Chairman and Chief Executive Officer Arthur Yu - Chief Financial Officer and President of Baozun E-Commerce Sandrine Zerbib - President of Baozun Brand Management Conference Call Participants Alicia Yap - Citigroup Thomas Chong - Jefferies Sophie Huang - CMBI Operator Good morning, ladies and gentlemen, and than ...

Financial Performance - Total net revenue for Q3 2023 was RMB 1,823.6 million (USD 250.0 million), an increase of 4.7% from RMB 1,741.3 million in the same period last year [4]. - Product sales revenue reached RMB 707.9 million (USD 97.0 million), up from RMB 497.1 million in the previous year [4]. - Service revenue was RMB 1,115.8 million (USD 152.9 million), down 10.3% from RMB 1,244.2 million in the previous year [8]. - The company reported a net loss of RMB 129.6 million (USD 17.8 million) for the three months ended September 30, 2023 [94]. - The net loss attributable to ordinary shareholders of Baozun E-commerce Ltd. was RMB 126.4 million (USD 17.3 million), compared to RMB 168.9 million in the same period last year [43]. - The basic and diluted net loss per American Depositary Share was RMB 2.12 (USD 0.29), compared to RMB 2.88 in the same period last year [43]. - The company reported a net loss of RMB 129,599 for the three months ended September 30, 2023, compared to a net loss of RMB 156,981 for the same period in 2022, reflecting an improvement of about 17.4% [77]. Operating Loss and Expenses - Adjusted operating loss for brand management business was RMB 50.1 million (USD 6.9 million) [1]. - Operating loss for Q3 2023 was RMB 135.7 million (USD 18.6 million), compared to an operating loss of RMB 26.3 million in the same period last year, with an operating loss margin of 7.4% [28]. - Non-GAAP operating loss for Q3 2023 was RMB 90.4 million (USD 12.4 million), a significant decline from a non-GAAP operating profit of RMB 16.9 million in Q3 2022 [28]. - Total operating expenses amounted to RMB 1,959.4 million (USD 268.6 million), an increase from RMB 1,767.5 million in the same period last year, primarily due to the acquisition of Gap Shanghai [27]. - The company’s operating expenses for the three months ended September 30, 2023, were RMB 1,959,354, up from RMB 1,767,528 for the same period in 2022, representing an increase of approximately 10.9% [75]. Revenue Breakdown - E-commerce product sales revenue was RMB 411.6 million (USD 56.4 million), a decrease of 17.2% compared to RMB 497.1 million in the same period last year [4]. - Brand management product sales revenue was RMB 296.3 million (USD 40.6 million), primarily from Gap Shanghai's retail income [7]. - Approximately 40.2% of total GMV came from non-Tmall platforms, up from 31.1% in the previous year [14]. - Product costs for Q3 2023 were RMB 491.2 million (USD 67.3 million), up from RMB 414.8 million in the same period last year, largely due to the acquisition of Gap Shanghai [22]. Cash and Assets - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB 2,930.7 million (USD 401.7 million) as of September 30, 2023 [11]. - Cash and cash equivalents as of September 30, 2023, were RMB 2,157,961, slightly up from RMB 2,144,020 as of December 31, 2022 [72]. - Total assets decreased to RMB 9,999,674 as of September 30, 2023, from RMB 10,122,470 as of December 31, 2022, a decline of approximately 1.2% [72]. - Total liabilities decreased to RMB 4,153,471 as of September 30, 2023, from RMB 4,446,132 as of December 31, 2022, a reduction of about 6.6% [73]. Strategic Initiatives - The company plans to acquire a 51% stake in LeKexun, a leading service provider in the Douyin ecosystem, to enhance its capabilities in live commerce [27]. - The company signed a term sheet to acquire 51% of Lokar Xun, indicating a strategic move towards market expansion [100]. - The company has restructured its operating segments into two divisions: e-commerce and brand management, focusing on brand empowerment and strategic positioning [44]. - The company aims to leverage technology to enhance business futures and support its brand partners in achieving new growth stages [70]. Market Presence and Growth - The company reported double-digit GMV growth in both WeChat and Douyin ecosystems during the quarter [28]. - Baozun Group serves over 400 brands across various industries globally, with operations in East Asia, Southeast Asia, Europe, and North America [59]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth [75].

Executive Summary [CEO's Remarks](index=1&type=section&id=CEO%27s%20Remarks) CEO Vincent Qiu noted **5% YoY revenue growth**, improved operating cash flow, Gap Shanghai transformation, and a strategic Location acquisition - Baozun Group achieved **5% YoY revenue growth** and **significant YoY improvement in operating cash flow**[2](index=2&type=chunk) - BBM is transforming GAP Shanghai by shifting from a discount-driven approach to building consumer love for the brand, including new products, store openings, and increased marketing[2](index=2&type=chunk) - **Contemplated 51% equity acquisition** of Hangzhou Location Information Technology Co., Ltd. ("Location"), a top-tier Douyin partner specializing in Apparel and Accessories, to enhance leadership in the Douyin ecosystem[2](index=2&type=chunk) [CFO's Remarks](index=1&type=section&id=CFO%27s%20Remarks) CFO Arthur Yu reported positive Q3 operating cash flow, a first since IPO, driven by optimization and efficiency, with **double-digit GMV growth** - Achieved **positive operating cash flow in Q3 2023**, the first time since IPO, due to business optimization, cost reduction, and improved working capital efficiency[3](index=3&type=chunk) - Achieved **double-digit GMV growth** from both Tencent mini-program and Douyin ecosystems[3](index=3&type=chunk) - Strategic alliance with Location is expected to strengthen the company's position in the dynamic e-commerce environment[3](index=3&type=chunk) Third Quarter 2023 Financial Highlights [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) Total net revenues grew **4.7%** to **RMB1,823.6 million**, but operating and non-GAAP losses widened, while net loss attributable to ordinary shareholders decreased | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | Q3 2023 (US$ million) | YoY Change | | :----------------------------------- | :-------------------- | :-------------------- | :-------------------- | :--------- | | Total Net Revenues | 1,741.3 | 1,823.6 | 250.0 | +4.7% | | Loss from Operations | (26.3) | (135.7) | (18.6) | -416.0% | | Operating Margin | -1.5% | -7.4% | - | -5.9 pp | | Non-GAAP Loss from Operations | 16.9 (Income) | (90.4) | (12.4) | -634.9% | | Non-GAAP Operating Margin | 1.0% | -5.0% | - | -6.0 pp | | Adjusted Operating Loss (E-Commerce) | N/A | (40.3) | (5.5) | N/A | | Adjusted Operating Loss (Brand Management) | N/A | (50.1) | (6.9) | N/A | | Net Loss Attributable to Ordinary Shareholders | (168.9) | (126.4) | (17.3) | +25.2% | | Non-GAAP Net Loss Attributable to Ordinary Shareholders | (13.1) | (76.4) | (10.5) | -483.2% | | Basic & Diluted Net Loss per ADS | (2.88) | (2.12) | (0.29) | +26.4% | | Basic & Diluted Non-GAAP Net Loss per ADS | (0.22) | (1.28) | (0.18) | -481.8% | | Cash & Cash Equivalents, Restricted Cash, Short-term Investments (as of Sep 30, 2023) | 3,141.1 (Dec 31, 2022) | 2,930.7 | 401.7 | -6.7% (vs Dec 31, 2022) | Business Highlights [Baozun e-Commerce (BEC)](index=3&type=section&id=Baozun%20e-Commerce%20(BEC)) BEC saw YoY revenue growth in Apparel and Accessories, with non-TMALL GMV at **40.2%** and multi-channel brand partner engagement at **45.0%** - Revenue from store operations of Apparel and Accessories delivered **year-over-year growth**[8](index=8&type=chunk) - GMV from non-TMALL marketplaces and channels increased to **40.2% of total GMV** in Q3 2023, up from **31.1%** in Q3 2022[8](index=8&type=chunk) - **45.0% of brand partners** engaged in store operations across at least two channels, up from **42.4%** a year ago[8](index=8&type=chunk) [Baozun Brand Management (BBM)](index=3&type=section&id=Baozun%20Brand%20Management%20(BBM)) BBM transformed Gap Shanghai towards consumer loyalty, achieving **RMB296.3 million** in product sales with a **55.5% gross profit margin** - BBM focused on **transforming Gap Shanghai** to build consumer love for the brand, moving away from a discount-driven approach[9](index=9&type=chunk) | Metric | Q3 2023 (RMB million) | | :-------------------- | :-------------------- | | BBM Product Sales | 296.3 | | BBM Gross Profit Margin (Product Sales) | 55.5% | Third Quarter 2023 Financial Results [Total Net Revenues](index=3&type=section&id=Total%20Net%20Revenues) Total net revenues increased **4.7%** YoY to **RMB1,823.6 million**, primarily due to the new Brand Management business line | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Total Net Revenues | 1,741.3 | 1,823.6 | +4.7% | - Increase mainly due to incremental revenue from BBM, a new business line launched in Q1 2023[10](index=10&type=chunk) [Product Sales Revenue](index=3&type=section&id=Product%20Sales%20Revenue) Total product sales revenue increased **42.4%** to **RMB707.9 million**, driven by Brand Management, despite a **17.2%** decrease in E-Commerce | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Total Product Sales Revenue | 497.1 | 707.9 | +42.4% | | Product Sales Revenue of E-Commerce | 497.1 | 411.6 | -17.2% | | Product Sales Revenue of Brand Management | - | 296.3 | N/A | - Decrease in E-Commerce product sales attributed to **macro-economic weakness**, stronger seasonality, and optimization of product distribution model[10](index=10&type=chunk) [E-Commerce Product Sales Breakdown](index=4&type=section&id=E-Commerce%20Product%20Sales%20Breakdown) E-Commerce product sales decreased across most categories, with significant declines in Fast Moving Consumer Goods and Electronics, while Others saw a slight increase | Category | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------------------------- | :-------------------- | :-------------------- | :--------- | | Appliances | 212.2 | 179.5 | -15% | | Beauty and cosmetics | 76.2 | 76.3 | 0% | | Fast moving consumer goods | 66.1 | 31.7 | -52% | | Electronics | 50.5 | 25.8 | -49% | | Others | 92.1 | 98.3 | 7% | | Total net revenues from product sales of E-Commerce | 497.1 | 411.6 | -17% | [Brand Management Product Sales](index=4&type=section&id=Brand%20Management%20Product%20Sales) Brand Management product sales totaled **RMB296.3 million**, mainly from Gap Shanghai's retail business, both offline and online - Product sales revenue of Brand Management was **RMB296.3 million**, mainly from Gap Shanghai's retail business (both offline and online)[13](index=13&type=chunk) [Services Revenue](index=4&type=section&id=Services%20Revenue) Services revenue decreased **10.3%** YoY to **RMB1,115.8 million**, mainly due to reductions in warehousing, fulfillment, digital marketing, and IT solutions | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Services Revenue | 1,244.2 | 1,115.8 | -10.3% | - Decrease primarily due to **RMB65.7 million reduction** from warehousing and fulfillment and **RMB44.3 million reduction** from Digital marketing and IT solutions[14](index=14&type=chunk) [Services Revenue Breakdown by Business Model](index=4&type=section&id=Services%20Revenue%20Breakdown%20by%20Business%20Model) Services revenue declined across all categories, with warehousing and fulfillment, and digital marketing and IT solutions seeing the largest reductions | Category | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------------------------- | :-------------------- | :-------------------- | :--------- | | Online store operations | 347.9 | 340.7 | -2% | | Warehousing and fulfillment | 492.4 | 431.7 | -12% | | Digital marketing and IT solutions | 403.9 | 362.7 | -10% | | Total net revenues from services | 1,244.2 | 1,115.8 | -10% | [Online Store Operations Revenue Breakdown](index=5&type=section&id=Online%20Store%20Operations%20Revenue%20Breakdown) Online store operations revenue decreased **5%**, with growth in Sportswear offsetting declines in Luxury and other categories | Category | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------------------------- | :-------------------- | :-------------------- | :--------- | | Apparel and accessories | 231.9 | 248.4 | 7% | | - Luxury | 92.9 | 86.3 | -7% | | - Sportswear | 80.4 | 101.3 | 26% | | - Other apparel | 58.6 | 60.8 | 4% | | Others | 116.0 | 92.3 | -20% | | Total net revenues from online store operations in services | 347.9 | 329.5 | -5% | [Operating Expenses](index=5&type=section&id=Operating%20Expenses) Total operating expenses rose **10.9%** to **RMB1,959.4 million**, mainly due to Gap Shanghai acquisition, but decreased **7.8%** excluding it | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Total Operating Expenses | 1,767.5 | 1,959.4 | +10.9% | - Increase mainly attributed to the acquisition of Gap Shanghai; excluding Gap Shanghai, operating expenses decreased by **7.8%**[16](index=16&type=chunk) [Cost of Products](index=5&type=section&id=Cost%20of%20Products) Cost of products increased **18.4%** to **RMB491.2 million**, primarily driven by incremental costs related to Gap Shanghai | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Cost of Products | 414.8 | 491.2 | +18.4% | - Increase primarily due to incremental cost of **RMB130.5 million** related to Gap Shanghai[17](index=17&type=chunk) [Fulfillment Expenses](index=5&type=section&id=Fulfillment%20Expenses) Fulfillment expenses decreased **11.0%** to **RMB513.0 million**, driven by lower revenue, freight savings, and customer service optimization | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Fulfillment Expenses | 575.9 | 513.0 | -11.0% | - Decrease due to lower warehouse/logistics revenue, **RMB27.7 million freight savings** from subsidiary divestiture, and customer service savings from regional service centers[17](index=17&type=chunk) [Sales and Marketing Expenses](index=5&type=section&id=Sales%20and%20Marketing%20Expenses) Sales and marketing expenses increased **5.8%** to **RMB637.5 million**, mainly due to incremental costs from Gap Shanghai | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Sales and Marketing Expenses | 602.4 | 637.5 | +5.8% | - Increase mainly due to incremental **RMB81.7 million** related to Gap Shanghai[18](index=18&type=chunk) [Technology and Content Expenses](index=6&type=section&id=Technology%20and%20Content%20Expenses) Technology and content expenses increased **22.5%** to **RMB120.4 million**, reflecting ongoing investment in innovation and productization | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Technology and Content Expenses | 98.3 | 120.4 | +22.5% | - Increase due to **ongoing investment in technological innovation and productization**, partially offset by cost control[19](index=19&type=chunk) [General and Administrative Expenses](index=6&type=section&id=General%20and%20Administrative%20Expenses) General and Administrative expenses surged **119.5%** to **RMB214.5 million**, primarily due to Brand Management and strategic investments | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | General and Administrative Expenses | 97.7 | 214.5 | +119.5% | - Increase primarily due to incremental **RMB110.2 million** related to Brand Management (including Gap Shanghai) and strategic investments in Creative Content to Commerce[19](index=19&type=chunk) [Operating and Net Loss](index=6&type=section&id=Operating%20and%20Net%20Loss) Operating loss significantly widened, and non-GAAP operating loss turned negative, while net loss attributable to ordinary shareholders decreased YoY [Loss from Operations](index=6&type=section&id=Loss%20from%20Operations) Loss from operations widened by **416.0%** to **RMB135.7 million**, with non-GAAP loss from operations turning negative due to Gap Shanghai and BEC | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Loss from Operations | (26.3) | (135.7) | -416.0% | | Operating Margin | -1.5% | -7.4% | -5.9 pp | | Non-GAAP Loss from Operations | 16.9 (Income) | (90.4) | -634.9% | - Non-GAAP loss from operations mainly due to **loss from Gap Shanghai** (though narrowed on comparable basis) and **lower BEC profitability** from weak macro conditions and seasonality[20](index=20&type=chunk) [Net Loss Attributable to Ordinary Shareholders](index=6&type=section&id=Net%20Loss%20Attributable%20to%20Ordinary%20Shareholders) Net loss attributable to ordinary shareholders decreased by **25.2%** to **RMB126.4 million**, with basic and diluted net loss per ADS also improving | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :----------------------------------- | :-------------------- | :-------------------- | :--------- | | Net Loss Attributable to Ordinary Shareholders | (168.9) | (126.4) | +25.2% | | Basic & Diluted Net Loss per ADS | (2.88) | (2.12) | +26.4% | [Non-GAAP Net Loss Attributable to Ordinary Shareholders](index=6&type=section&id=Non-GAAP%20Net%20Loss%20Attributable%20to%20Ordinary%20Shareholders) Non-GAAP net loss attributable to ordinary shareholders increased by **483.2%** to **RMB76.4 million**, with non-GAAP net loss per ADS also rising | Metric | Q3 2022 (RMB million) | Q3 2023 (RMB million) | YoY Change | | :----------------------------------- | :-------------------- | :-------------------- | :--------- | | Non-GAAP Net Loss Attributable to Ordinary Shareholders | (13.1) | (76.4) | -483.2% | | Basic & Diluted Non-GAAP Net Loss per ADS | (0.22) | (1.28) | -481.8% | Segment Information [Description of Segments](index=7&type=section&id=Description%20of%20Segments) Baozun updated its operating segments to E-Commerce and Brand Management following the Gap Shanghai acquisition, detailing their respective focuses - Operating segments **updated to (i) E-Commerce and (ii) Brand Management** after Gap Shanghai acquisition[23](index=23&type=chunk) - E-Commerce segment comprises **BEC (mainland China e-commerce services) and BZI (e-commerce outside mainland China)**[23](index=23&type=chunk) - Brand Management segment focuses on **holistic brand management**, including strategy, marketing, retail, e-commerce operations, supply chain, and technology[24](index=24&type=chunk) [Segments Data](index=7&type=section&id=Segments%20Data) E-Commerce net revenues decreased by **11.4%**, while Brand Management contributed **RMB299.6 million**; both segments reported adjusted operating losses | Metric | Q3 2022 (RMB thousand) | Q3 2023 (RMB thousand) | YoY Change | | :----------------------------------- | :---------------------- | :---------------------- | :--------- | | Net Revenues (E-Commerce) | 1,741,272 | 1,543,276 | -11.4% | | Net Revenues (Brand Management) | - | 299,645 | N/A | | Total Consolidated Net Revenues | 1,741,272 | 1,823,642 | +4.7% | | Adjusted Operating Profits (Losses) (E-Commerce) | 16,913 | (40,300) | -338.3% | | Adjusted Operating Profits (Losses) (Brand Management) | - | (50,091) | N/A | | Total Adjusted Operating Profits | 16,913 | (90,391) | -634.9% | Supplemental Information [Location Acquisition](index=8&type=section&id=Location%20Acquisition) Baozun signed a non-binding Term Sheet in November 2023 to acquire a **51%** equity interest in Hangzhou Location Information Technology Co., Ltd - Baozun signed a Term Sheet to acquire **51% equity interest** in Hangzhou Location Information Technology Co., Ltd. ("Location") in November 2023[27](index=27&type=chunk) - Acquisition will be through **capital increase and equity transfer**[27](index=27&type=chunk) - Terms of the Term Sheet are **not legally binding** until definitive transaction documents are signed[27](index=27&type=chunk) Conference Call Details [Dial-in Information](index=8&type=section&id=Dial-in%20Information) Baozun hosted an earnings conference call on November 22, 2023, providing dial-in details and replay access for investors - **Conference call held on November 22, 2023**, at 6:30 a.m. Eastern Time[28](index=28&type=chunk) | Region | Dial-in Number | Passcode | | :---------------- | :---------------- | :---------------- | | United States | 1-888-317-6003 | 6234438 | | Hong Kong | 800-963-976 | 6234438 | | Singapore | 800-120-5863 | 6234438 | | Mainland China | 4001-206-115 | 6234438 | | International | 1-412-317-6061 | 6234438 | - Replay accessible through **November 29, 2023**, with **access code 3958715**[30](index=30&type=chunk)[31](index=31&type=chunk) Use of Non-GAAP Financial Measures [Non-GAAP Definitions](index=8&type=section&id=Non-GAAP%20Definitions) Non-GAAP measures exclude share-based compensation, amortization of acquisition-related intangibles, and other non-recurring or non-cash items - Non-GAAP income (loss) from operations **excludes share-based compensation**, **amortization of acquisition-related intangible assets**, and **acquisition-related expenses**[33](index=33&type=chunk) - Non-GAAP net income (loss) attributable to ordinary shareholders **excludes share-based compensation**, **amortization of acquisition-related intangible assets**, **acquisition-related expenses**, **impairment of goodwill and investments**, loss on variance from expected contingent acquisition payment, cancellation fees of repurchased ADSs and returned ADSs, fair value loss on derivative liabilities, loss on disposal of subsidiaries and investment in equity investee, and unrealized investment loss[33](index=33&type=chunk) [Rationale for Non-GAAP Measures](index=9&type=section&id=Rationale%20for%20Non-GAAP%20Measures) Non-GAAP measures help management evaluate performance and provide investors with a clearer view of core operating results - Non-GAAP measures are used by management to **evaluate financial and operating performance** and **formulate business plans**[34](index=34&type=chunk) - They **reflect ongoing business operations** for more meaningful period-to-period comparisons[34](index=34&type=chunk) - Provide useful information by **excluding expenses/gains not expected to result in future cash payments** or that are **non-recurring/not indicative of core operating results**[34](index=34&type=chunk) [Limitations of Non-GAAP Measures](index=9&type=section&id=Limitations%20of%20Non-GAAP%20Measures) Non-GAAP measures are not U.S. GAAP defined, have analytical limitations, and may not be comparable to other companies' metrics - Non-GAAP measures are **not defined under U.S. GAAP** and **should not be considered in isolation or as a substitute for GAAP financial information**[35](index=35&type=chunk)[36](index=36&type=chunk) - A key limitation is that they **do not reflect all items of income and expense affecting operations**[35](index=35&type=chunk) - **May differ from non-GAAP measures used by other companies, limiting comparability**[36](index=36&type=chunk) Safe Harbor Statements [Safe Harbor Statements](index=11&type=section&id=Safe%20Harbor%20Statements) This announcement contains forward-looking statements subject to inherent risks and uncertainties, with no obligation to update except as required by law - This announcement contains **forward-looking statements**, **identifiable by terms like "will," "expects," "anticipates," etc.**[38](index=38&type=chunk) - **Forward-looking statements involve inherent risks and uncertainties**, which could cause actual results to differ materially[38](index=38&type=chunk) - Baozun undertakes **no obligation to update this information**, except as required by applicable law[38](index=38&type=chunk) About Baozun Inc. [About Baozun Inc.](index=11&type=section&id=About%20Baozun%20Inc.) Founded in 2007, Baozun Inc. is a leading brand e-commerce and management service provider, serving over **400 brands** globally through three business lines - Founded in 2007, Baozun Inc. is a **leader in brand e-commerce service, brand management, and digital commerce service**[39](index=39&type=chunk) - Serves **over 400 brands globally** across various industries[39](index=39&type=chunk) - Comprises **three major business lines: Baozun e-Commerce (BEC), Baozun Brand Management (BBM), and Baozun International (BZI)**[39](index=39&type=chunk) Unaudited Condensed Consolidated Financial Statements [Unaudited Condensed Consolidated Balance Sheets](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **RMB9,999.7 million**, while total liabilities also decreased, with notable changes in accounts receivable and inventories | Metric | Dec 31, 2022 (RMB thousand) | Sep 30, 2023 (RMB thousand) | Sep 30, 2023 (US$ thousand) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Assets | 10,122,470 | 9,999,674 | 1,370,572 | | Total Liabilities | 4,446,132 | 4,153,471 | 569,286 | | Total Shareholders' Equity | 4,238,256 | 4,285,408 | 587,362 | | Cash and cash equivalents | 2,144,020 | 2,157,961 | 295,773 | | Short-term investments | 895,425 | 718,655 | 98,500 | | Accounts receivable, net | 2,292,678 | 1,664,731 | 228,170 | | Inventories | 942,997 | 1,130,888 | 155,001 | | Operating lease right-of-use assets | 847,047 | 1,087,413 | 149,042 | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=14&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Total net revenues increased to **RMB1,823.6 million**, but loss from operations significantly widened, while net loss improved to **RMB129.6 million** | Metric | Q3 2022 (RMB thousand) | Q3 2023 (RMB thousand) | Q3 2023 (US$ thousand) | | :----------------------------------- | :---------------------- | :---------------------- | :---------------------- | | Total Net Revenues | 1,741,272 | 1,823,642 | 249,951 | | Product Sales | 497,098 | 707,855 | 97,020 | | Services | 1,244,174 | 1,115,787 | 152,931 | | Total Operating Expenses | (1,767,528) | (1,959,354) | (268,552) | | Loss from Operations | (26,256) | (135,712) | (18,601) | | Net Loss | (156,981) | (129,599) | (17,765) | | Net Loss Attributable to Ordinary Shareholders | (168,858) | (126,433) | (17,331) | [Reconciliations of GAAP and Non-GAAP Results](index=16&type=section&id=Reconciliations%20of%20GAAP%20and%20Non-GAAP%20Results) Reconciliation details adjustments from GAAP to non-GAAP measures, primarily adding back share-based compensation and acquisition-related expenses to reduce reported losses | Metric | Q3 2022 (RMB thousand) | Q3 2023 (RMB thousand) | Q3 2023 (US$ thousand) | | :----------------------------------- | :---------------------- | :---------------------- | :---------------------- | | Loss from operations (GAAP) | (26,256) | (135,712) | (18,601) | | Add: Share-based compensation expenses | 33,829 | 29,415 | 4,032 | | Add: Amortization of intangible assets | 9,340 | 7,911 | 1,084 | | Add: Acquisition-related expenses | - | 7,995 | 1,096 | | Non-GAAP income (loss) from operations | 16,913 | (90,391) | (12,389) | | Net loss attributable to ordinary shareholders (GAAP) | (168,858) | (126,433) | (17,331) | | Non-GAAP net loss attributable to ordinary shareholders | (13,146) | (76,354) | (10,467) | - Key adjustments for non-GAAP measures include **adding back share-based compensation expenses**, **amortization of intangible assets from business acquisition**, and **acquisition-related expenses**[50](index=50&type=chunk)