回港中概股午后走强，金山云(03896.HK)涨超13%，百济神州(06160.HK)涨超7%，万国数据(09698.HK) 涨超6%，宝尊电商(09991.HK)、BOSS直聘(02076.HK)涨超2%。 ...

Core Viewpoint - Baozun E-commerce (09991) reported a total revenue of 9.478 billion yuan for the fiscal year 2024, representing a year-on-year growth of 6.07%, while the net profit attributable to shareholders was a loss of 185 million yuan, an improvement from a loss of 278 million yuan in the previous year [2] Financial Performance - Total revenue for 2024 was 9.478 billion yuan, up 6.07% year-on-year [2] - Net profit attributable to shareholders was a loss of 185 million yuan, compared to a loss of 278 million yuan in the same period last year [2] - Operating cash flow net amount was 101 million yuan, down 77.41% year-on-year [21] - Basic earnings per share were -1.03 yuan, with a weighted average return on equity of -4.57%, an increase of 2.19 percentage points from the previous year [2][17] Valuation Metrics - As of April 23, the price-to-book ratio (TTM) was approximately 0.25 times, and the price-to-sales ratio (TTM) was about 0.11 times [2] Business Model - Baozun E-commerce primarily provides brand e-commerce solutions, including IT solutions, online store operations, digital marketing, customer service, and warehousing and fulfillment [8] - The company operates under three business models: distribution model, service fee model, and consignment model, offering omnichannel solutions across various platforms [8] Cash Flow and Investment Activities - Cash flow from financing activities was -19.737 million yuan, a decrease of 11.704 million yuan year-on-year [21] - Cash flow from investment activities was -818 million yuan, compared to -340 million yuan in the previous year [21] Asset and Liability Changes - As of the end of 2024, cash and cash equivalents decreased by 30.1%, and right-of-use assets decreased by 28.29% [29] - Prepayments increased by 25.18%, while inventory rose by 6.92% [29] - Lease liabilities decreased by 25.19%, while short-term borrowings increased by 9.43% [32] Liquidity Ratios - The current ratio was 1.93, and the quick ratio was 1.63 as of 2024 [38]

Financial Performance - Baozun achieved 7% year-over-year revenue growth in 2024, reaching operating profit breakeven[8]. - Revenue increased by 6.9% from RMB8,812.0 million in 2023 to RMB9,422.2 million in 2024, primarily due to a 9.2% increase in service revenue[40]. - Total net revenue for the year ended December 31, 2024, was approximately RMB 9,422.2 million (US$ 1,290.8 million), representing a growth of 6.9% compared to RMB 8,812.0 million in 2023, primarily driven by a 9.2% increase in service revenue[84]. - Non-GAAP operating income improved to RMB10.6 million in 2024, compared to a non-GAAP loss from operations of RMB23.7 million in 2023[40]. - Net loss for the Year was approximately RMB138.4 million (US$19.0 million), an improvement from a net loss of RMB222.8 million (US$31.4 million) for the previous year[96]. - For the year ended December 31, 2024, the net loss attributable to ordinary shareholders of Baozun Inc. was RMB185.2 million (US$25.4 million), a decrease from RMB278.4 million in 2023[107]. - The non-GAAP net loss attributable to ordinary shareholders for 2024 was RMB40.4 million (US$5.5 million), compared to RMB65.1 million in 2023[107]. Business Growth and Strategy - Baozun e-Commerce (BEC) supported over 490 brand partners by year-end 2024, up from more than 450 in 2023, with a Net Promoter Score (NPS) increase to 8.53 from 8.23[9]. - Baozun Brand Management (BBM) delivered 16% revenue growth in 2024 while narrowing adjusted operating losses by 10%[10]. - The company anticipates that BEC will enter a phase of quality growth, generating consistent and reliable cash flow post-transformation[16]. - Baozun's strategic transformation aims to align with changing consumer behavior and emerging technologies, ensuring long-term success and resilience[7]. - The company aims to leverage its technology to establish deeper relationships with brand partners and enhance service offerings[38]. - Baozun International is viewed as a long-term opportunity to replicate success in China by providing local market insights[38]. Market Expansion - Baozun International (BZI) expanded its regional presence by introducing the Hunter brand to Singapore and Malaysia in 2024[11]. - The total number of Gap stores in China increased to 152 by the end of 2024, with improved store-level unit economics[10]. - The company opened more than 50 new stores for Gap Shanghai in 2024, ending the fiscal year with a total of 156 offline stores under its Brand Management segment[63]. - Revenue from Gap Shanghai reached RMB 1,314 million in 2024, with plans to open more than 50 new stores in 2025[69]. - Baozun International (BZI) has set up operation offices in 10 markets, including Hong Kong, Taiwan, and Singapore, to replicate its China e-commerce success and empower brands with localized experiences[78]. Operational Efficiency - The company aims to enhance its supply chain efficiency and product innovation, focusing on a shorter supply chain cycle and improved lead times[73]. - Cost of products increased to RMB2,473.8 million (US$338.9 million) for the Year, up from RMB2,409.1 million, primarily due to increased product sales volume from Brand Management[87]. - Fulfillment expenses decreased by 1.8% to RMB2,461.6 million (US$337.2 million) for the Year, down from RMB2,507.3 million, attributed to cost control initiatives and efficiency improvements[88]. - Sales and marketing expenses rose by 19.5% to RMB3,380.7 million (US$463.2 million) for the Year, compared to RMB2,829.0 million, driven by higher revenue from digital marketing services and increased marketing activities[89]. - Technology and content expenses increased by 8.9% to RMB550.3 million (US$75.4 million) for the Year, up from RMB505.2 million, in line with rising revenues from IT solutions[90]. - General and administrative expenses decreased by 16.0% to RMB719.2 million (US$98.5 million) for the Year, down from RMB855.9 million, mainly due to cost control initiatives[92]. Corporate Governance - The Company aims to achieve high standards of corporate governance, having adopted the code provisions in Part 2 of the CG Code[143]. - The independent Directors have confirmed their independence during the Year, with the number exceeding one third of the Board members[154]. - The Board comprises at least three independent Directors, representing at least one-third of the Board, ensuring strong independence[156]. - The Audit Committee held seven meetings during the Year, reviewing annual and quarterly results and overseeing the external audit process[175]. - The Compensation Committee conducted five meetings, reviewing the administration of Share Incentive Plans and the remuneration of Directors[178]. - The Nominating and Corporate Governance Committee held three meetings, assessing the independence of Directors and reviewing board diversity policy[182]. - The Company has a board diversity policy, with one female Director among eight total Directors, promoting diverse professional experiences[183]. Employee and Social Responsibility - The Company emphasizes a "people-first" philosophy, fostering a positive workplace environment and aligning personal achievement with corporate goals[15]. - As of December 31, 2024, the Group has 4,866 male employees (61.80%) and 3,008 female employees (38.20%)[186]. - The senior management consists of 95 male (54.60%) and 79 female (45.40%) members, indicating a good balance in gender diversity[187]. - The Company hired 18 employees with disabilities, promoting a barrier-free working environment[188]. Financial Position - Current assets decreased by 1.1% to RMB7,214.2 million (US$988.3 million) as of December 31, 2024, compared to RMB7,290.8 million[97]. - Accounts receivables decreased by 6.9% to RMB2,033.8 million (US$278.6 million) as of December 31, 2024, down from RMB2,184.7 million[98]. - Accounts payables increased by 10.1% to RMB620.7 million (US$85.0 million) as of December 31, 2024, compared to RMB563.6 million, primarily due to payables related to the acquisition of Gap Shanghai[99]. - As of December 31, 2024, cash and cash equivalents totaled approximately RMB1,289.3 million (US$176.6 million), down from RMB2,149.5 million (US$302.8 million) in 2023[109]. - The company had short-term loans of approximately RMB1,221.0 million (US$167.3 million) as of December 31, 2024, an increase from RMB1,115.7 million in 2023[110]. - The gearing ratio remained stable at 1.08 for both December 31, 2023, and December 31, 2024[112].

Financial Performance - Baozun achieved a revenue growth of 7% year-over-year in 2024, marking a significant milestone in operational efficiency and management capabilities[8]. - The company achieved a revenue of RMB 1.2 billion, which is a 10% increase compared to the previous year[22]. - Total net revenue for the year 2024 was approximately RMB 9,422.2 million (USD 1,290.8 million), representing a growth of 6.9% compared to RMB 8,812.0 million in 2023, primarily driven by a 9.2% increase in service revenue[61]. - Service revenue reached RMB 5,955.3 million, up 9.2% from RMB 5,454.8 million in 2023, largely due to a 22.2% increase in digital marketing and IT solutions[61][63]. - The company anticipates its core business will enter a high-quality growth phase, generating stable cash flow, while brand management is expected to unlock new growth opportunities[14]. - Future guidance indicates expected revenue growth of 12-15% for the upcoming quarter[22]. - The net loss for the year was approximately RMB 138.4 million (USD 19.0 million), an improvement from a net loss of RMB 222.8 million (USD 31.4 million) for the year ended December 31, 2023[73]. - The non-GAAP operating profit for the fiscal year 2023 was RMB 10.6 million, compared to a non-GAAP operating loss of RMB 23.7 million in the previous fiscal year[34]. Market Expansion - The number of brand partners served by Baozun's e-commerce business increased to over 490, up from approximately 450 in 2023, indicating continued market expansion[10]. - Baozun Inc. plans to expand its market presence in Southeast Asia, targeting a 25% growth in that region over the next fiscal year[22]. - The company plans to introduce its brand Hunter into the Singapore and Malaysia markets, enhancing its market coverage and cross-business collaboration[11]. - The company has expanded its business into three lines: Baozun E-commerce (BEC), Baozun Brand Management (BBM), and Baozun International (BZI) to create a synergistic ecosystem[34]. - The company has established two operating segments: E-commerce business (including BEC and BZI) and Brand Management (BBM) following the acquisition of Gap Shanghai[35]. Brand Management - Baozun's brand management segment reported a revenue increase of 16% in 2024, with operating losses narrowing by 10%[10]. - The company has launched a new product line aimed at small and medium-sized enterprises, projected to contribute an additional RMB 200 million in revenue[22]. - 宝尊品牌管理在2024财年实现营收人民币1,314百万，经营GAP在中国内地的152间线下店铺[52]. - 2024年，宝尊品牌管理计划在中国新开设超过50家Gap门店，并在关键城市设立快闪店以测试市场[50]. - 宝尊品牌管理的线下门店总数截至2024财年为156家，显示出持续的市场扩张[50]. Technological Advancements - Baozun was recognized as a representative service provider in the DOM field by Gartner, highlighting its technological capabilities[12]. - The company is investing RMB 300 million in new technology development, focusing on AI-driven logistics solutions[22]. - The company aims to strengthen its technology and content capabilities to support brand operations and enhance consumer engagement[60]. - The company expanded its regional service centers to help reduce costs while actively utilizing AI-generated content tools like ChatGPT and MidJourney to improve efficiency in various areas[48]. Customer Satisfaction - Baozun's net promoter score (NPS) improved from 8.23 to 8.53, with a core customer renewal rate reaching 95%[10]. - As of December 31, 2024, the company provided services to over 490 brand partners, with a net promoter score rising from 8.06 in FY2023 to 8.23 in FY2024, indicating improved customer satisfaction[47]. Corporate Governance - The company has adopted the corporate governance code as its own governance framework, aiming for high standards in corporate governance to protect shareholder interests[121]. - The board consists of eight members, including five executive directors and three independent directors, ensuring diverse business experience[128]. - The company has established mechanisms to ensure independent viewpoints are provided to the board, with independent directors constituting over one-third of the board[131]. - The board will regularly assess the effectiveness of its structure to ensure it meets the company's needs[128]. - The company has implemented a stock option and restricted share unit plan as part of its employee compensation strategy[101]. Environmental, Social, and Governance (ESG) Initiatives - The company has committed to improving its ESG initiatives, with a target of reducing carbon emissions by 30% by 2025[22]. - Three of Baozun's parks received ISO 14064 carbon verification certification, with two achieving PAS 2060 carbon neutrality certification[13]. Employee Development - The company has established a comprehensive training program, including onboarding and on-the-job training, to enhance performance and service quality[102]. - The company upgraded its training facility to the Baosun Capability Development Center in 2024, offering a comprehensive practical training program tailored to different skill levels[102]. - The company has continuously improved its talent development initiatives, particularly through the Baosun New Youth Program, for three consecutive years[102]. Risks and Challenges - The company's financial performance is highly sensitive to changes in China's economic and political conditions, affecting consumer confidence and spending levels[185]. - The group may face challenges in retaining existing brand partners, as contracts typically range from 12 to 36 months and may not be renewed on favorable terms[181]. - The company faces significant risks related to the complexity and challenges that brand partners encounter when seeking online sales, which could impact the demand for its solutions[178]. - The group identified several key uncertainties, including the growth rates of internet penetration and online retail consumer trust in China, which could affect its business outlook[179].

Core Viewpoint - Baozun (NASDAQ: BZUN) is identified as an e-commerce enabler company that has been under observation for a significant period, with a previous buy rating issued despite ongoing market challenges [1]. Company Summary - The company operates in the e-commerce sector, providing enabling services that support online retail [1]. Analyst Coverage - The last coverage of Baozun's stock was conducted last year, indicating a sustained interest in the company's performance and market position [1].

Financial Data and Key Metrics Changes - Baozun Group achieved an 8% year-over-year revenue growth in Q4 2024, with total net revenues reaching RMB 3 billion [20] - E-commerce revenue grew by 6% to RMB 2.5 billion, while brand management revenue increased by 17% to RMB 535 million [20] - Adjusted income from operations totaled RMB 103 million, a 37% improvement year-over-year, with adjusted operating profit from the e-commerce segment improving by 16% [23] - Non-GAAP net income attributable to shareholders for the quarter was RMB 46 million, up from RMB 29 million in the same period last year [24] Business Line Data and Key Metrics Changes - E-commerce services revenue increased by 9% year-over-year to RMB 1.9 billion, driven by a 16% increase in online store operations revenue and a 15% increase in digital marketing and IT solutions [21] - VC product sales revenue decreased by 4% year-over-year to RMB 572 million, primarily due to weak performance in the appliance category [21] - BBM product sales totaled RMB 535 million for the quarter, reflecting a 17% year-over-year growth, mainly driven by strong performance from the Gap brand [21] Market Data and Key Metrics Changes - The e-commerce division resumed annual top-line growth after two years of contraction, achieving a 6% increase [27] - Douyin maintained triple-digit growth during the quarter, contributing 6% of e-commerce revenue [30] - The company expanded its brand portfolio to over 490 brands, up from approximately 450 a year ago [28] Company Strategy and Development Direction - The company is focused on enhancing creative content capabilities and leveraging technology to help brand partners capitalize on platform interconnectivity and data intelligence [14] - A strategic transformation is underway, with a focus on profitability, sustainable growth, and technology as a cornerstone of success [18] - The company plans to open approximately 50 new stores in 2025, prioritizing high-traffic locations to maximize sales potential [38] Management's Comments on Operating Environment and Future Outlook - Management observed positive consumer sentiment and expects higher momentum in consumption sentiment in the future, supported by government subsidies [46] - The company maintains a high expectation for GMV growth, revenue, and operational profits in 2025, despite varying strategies among brand partners [59] - Management emphasized the importance of AI technology in driving efficiency and enhancing both top-line and bottom-line growth [68] Other Important Information - The company successfully completed its share repurchase program, repurchasing approximately 5.3 million ADS for $14.7 million, representing about 9% of total shares outstanding at the beginning of the program [24][25] - The company has strengthened its senior management team to drive the next phase of growth [17] Q&A Session Summary Question: Has management observed any improvement in consumer consumption sentiment over the past two months? - Management noted decent growth in revenue during recent promotional activities and observed rapid growth in categories like home appliances and smartphones, expecting higher momentum in consumption sentiment [45][46] Question: Can management update on Gap China's same store sales growth and performance of other brands under BBN? - Same store sales for Gap showed low single-digit growth in Q4 2024, with Hunter experiencing over 100% same store growth [50][51] Question: What are the key initiatives and top priorities for the company? - Management's focus includes optimizing team structure, enhancing financial management, and driving same store growth through omni-channel initiatives and AI technology [47][48] Question: How should we expect the potential influence of changing competitive landscape in e-commerce? - Management highlighted that GMV growth on Douyin is higher than on other platforms, and they plan to expand services and drive existing partners onto Douyin [56][57] Question: What is Baozun's strategy regarding JD.com and AI tools? - The company plans to help brand partners move their business onto JD.com, especially in fashion apparel, and is leveraging AI to drive efficiency and enhance top-line growth [63][66]

Financial Performance - Total net revenue for the year ended December 31, 2024, was RMB 9,422.2 million (USD 1,290.8 million), an increase of 6.9% year-over-year[4] - Service revenue for the same period was RMB 5,955.3 million (USD 815.9 million), reflecting a year-over-year increase of 9.2%[4] - Operating loss for the year was RMB 114.8 million (USD 15.7 million), improved from an operating loss of RMB 206.4 million in 2023[4] - Net loss attributable to ordinary shareholders was RMB 185.2 million (USD 25.4 million), narrowing from a net loss of RMB 278.4 million in the previous fiscal year[5] - Basic and diluted net loss per American Depositary Share (ADS) was RMB 3.09 (USD 0.42), compared to RMB 4.68 in 2023[5] - Non-GAAP operating profit for the year was RMB 10.6 million (USD 1.5 million), a significant improvement from a non-GAAP operating loss of RMB 23.7 million in 2023[5] - Non-GAAP net loss attributable to ordinary shareholders was RMB 40.4 million (USD 5.5 million), compared to RMB 65.1 million in the previous year[5] - Total net revenue for 2023 was RMB 8,812,013, an increase of 4.9% from RMB 8,400,631 in 2022[11] - The company reported a net loss of RMB 222,776 for 2023, compared to a net loss of RMB 610,374 in 2022, indicating a reduction in losses by 63.5%[12] Revenue Projections - The company expects total net revenue for 2024 to be approximately RMB 9,422,229, reflecting a projected growth of 6.9%[11] - Total revenue for the year ended December 31, 2024, is projected to be RMB 9,422,229, an increase from RMB 8,812,013 in 2023, representing a growth of approximately 6.9%[22] - Revenue from e-commerce sales recognized at a point in time decreased to RMB 1,999,572 in 2024 from RMB 2,092,215 in 2023, a decline of about 4.4%[22] - Revenue from brand management services recognized at a point in time is expected to increase to RMB 1,469,561 in 2024, up from RMB 1,264,987 in 2023, reflecting a growth of approximately 16.2%[22] - Total service revenue for the year ended December 31, 2024, is projected to be RMB 5,955,301, an increase from RMB 5,454,811 in 2023, representing a growth of about 9.2%[22] Assets and Liabilities - Cash, cash equivalents, restricted cash, and short-term investments totaled RMB 2,915.9 million (USD 399.5 million) as of December 31, 2024, down from RMB 3,072.8 million in 2023[5] - Total assets as of December 31, 2024, were RMB 10,207.0 million (USD 1,398.4 million), down from RMB 10,474.5 million in 2023[6] - Total liabilities decreased to RMB 4,426.4 million (USD 606.4 million) from RMB 4,622.7 million in the previous year[7] - The total liabilities and redeemable non-controlling interests and shareholders' equity amounted to RMB 10,474,476 in 2023[10] Operational Highlights - The company expanded its business into three lines: Baozun E-commerce (BEC), Baozun Brand Management (BBM), and Baozun International (BZI) in 2023[34] - The acquisition of Gap's Greater China business was a key strategic move, granting exclusive rights for production, marketing, distribution, and sales of Gap products in the region[41] - Approximately 48.8% of brand partners operated stores across at least two channels as of December 31, 2024, highlighting the focus on omnichannel expansion[40] - The company aims to leverage its technology and operational platform to support brand partners in navigating the evolving e-commerce landscape[34] - The integration of end-to-end e-commerce solutions allows the company to meet the unique needs of brand partners across various business models[39] Cost Management - Operating expenses totaled RMB 9,018,393 in 2023, an increase of 7.8% from RMB 8,367,344 in 2022[11] - Product costs for the year amounted to RMB 2,473.8 million, an increase from RMB 2,409.1 million the previous year, primarily due to higher sales volume in brand management products[55] - Fulfillment expenses decreased by 1.8% to RMB 2,461.6 million, attributed to cost control measures and efficiency improvements[56] - Sales and marketing expenses rose by 19.5% to RMB 3,380.7 million, driven by increased digital marketing services and more active marketing campaigns[57] - Management and administrative expenses decreased by 16.0% to RMB 719.2 million, mainly due to cost control measures[59] Shareholder Information - The company did not recommend any final dividends for the years ended December 31, 2023, and 2024[32] - The company repurchased 4,777,000 American Depositary Shares for a total cash consideration of USD 13.3 million in 2024[33] - The board of directors decided not to recommend a final dividend for the year, maintaining the previous year's dividend at zero[91] Strategic Focus - The company plans to expand its market presence and invest in new product development to drive future growth[11] - The company continues to focus on expanding its e-commerce solutions and brand management services to enhance revenue streams[22] - The company is actively involved in strategic positioning and brand marketing to strengthen its market presence[22] - The company plans to continue monitoring regulatory dynamics and the impact of the OECD's global minimum tax rate initiative[28] Employee and Governance - The total number of full-time employees decreased to 7,650 as of December 31, 2024, from 7,827 as of December 31, 2023, due to process reengineering and efficiency improvements[79] - The group has implemented a comprehensive training program, upgrading its training facility to enhance employee skills and development[82] - The group has adopted corporate governance codes and has complied with them, although the roles of Chairman and CEO are held by the same individual[84][85] Non-GAAP Measures - The company utilizes non-GAAP financial measures to assess operational performance, excluding stock incentive expenses and other non-cash costs[93] - Non-GAAP operating profit (loss) excludes the impact of stock incentive expenses, intangible asset amortization from business acquisitions, and other related costs[94] - The company believes that non-GAAP financial measures help investors better understand operational performance trends and management's financial decisions[95]

Financial Performance - Total net revenue for Q4 2024 was RMB 2,994.4 million (USD 410.2 million), an increase of 7.7% year-over-year from RMB 2,780.4 million[7]. - Operating profit for Q4 2024 reached RMB 73.2 million (USD 10.0 million), significantly improved from RMB 6.4 million in the same period last year, with an operating margin of 2.4% compared to 0.2% in Q4 2023[7]. - Non-GAAP operating profit was RMB 103.3 million (USD 14.2 million), a growth of 36.6% year-over-year from RMB 75.7 million[8]. - Total net revenue reached RMB 9,422.2 million (USD 1,290.8 million), a year-on-year increase of 6.9% compared to RMB 8,812.0 million in the fiscal year 2023[11]. - Operating loss improved to RMB 114.8 million (USD 15.7 million), with an operating loss margin of 1.2%, compared to a loss of RMB 206.4 million and a margin of 2.3% in the fiscal year 2023[11]. - Net loss attributable to ordinary shareholders narrowed to RMB 185.2 million (USD 25.4 million) from RMB 278.4 million in the fiscal year 2023[11]. - The net profit attributable to ordinary shareholders was RMB 0.1 million (USD 0.02 million), a significant recovery from a net loss of RMB 48.4 million in the same period last year[8]. - Non-GAAP net profit attributable to ordinary shareholders was RMB 45.7 million (USD 6.3 million), an increase of 58.9% from RMB 28.8 million in the previous year[8]. Revenue Breakdown - E-commerce business revenue grew by 6% year-over-year, while brand management business revenue increased by 17%[5]. - Adjusted operating profit for the e-commerce segment was RMB 137.4 million (USD 18.8 million), up 16.3% from RMB 118.2 million in the previous year[8]. - E-commerce product sales revenue is RMB 1,999.6 million (USD 273.9 million), a decrease of 4.4% from RMB 2,092.2 million in 2023, primarily due to a decline in brand sales in small appliances and fast-moving consumer goods[28]. - Brand management product sales revenue increased to RMB 1,469.6 million (USD 201.3 million), up 16.2% from RMB 1,265.0 million in the fiscal year 2023[30]. - Service revenue rose by 9.3% to RMB 1,888.5 million (USD 258.7 million), with online store operations revenue increasing by 16.2%[17]. - Digital marketing and technology service revenue surged by 22.2% to RMB 1,735.8 million (USD 290.6 million)[33]. Strategic Initiatives - The company aims to accelerate transformation and drive high-quality growth in 2025, which is positioned as the final year of its strategic transformation[5]. - The company continues to invest in strategic initiatives and implement systematic cost reduction measures to enhance operational efficiency[5]. - The company plans to enhance consumer experience and optimize product strategies to drive future growth[30]. - The company plans to continue expanding its service offerings and enhancing product development to drive future growth[67]. - The company plans to continue its strategy of sustainable business development and technological empowerment for brand partners[56]. Operational Efficiency - The company reported unrealized investment income of RMB 20.9 million (USD 2.9 million), compared to an unrealized investment loss of RMB 8.4 million in the same period last year[25]. - Total operating expenses amount to RMB 2,921.2 million (USD 400.2 million), up from RMB 2,774.0 million in the previous year[23]. - The adjusted operating loss for brand management decreased from RMB 187,663 in fiscal year 2023 to RMB 168,767 in fiscal year 2024, showing improvement in operational efficiency[43]. - The company reported a significant reduction in management and administrative expenses, which were RMB 9.3 million for the three months ended December 31, 2024, down from RMB 13.9 million in the same period of 2023, a decrease of 33.5%[2]. Market Reach - As of December 31, 2024, the company served over 490 brand partners, up from approximately 450 a year earlier[14]. - The number of brand partners collaborating on at least two channels increased to 48.8% from 44.7% year-on-year[14]. - The company managed 156 offline stores for the Gap and Hunter brands as of the fourth quarter of 2024[15]. - The company has a total of over 490 brands served globally as of December 31, 2024, indicating its extensive market reach[56]. Shareholder Information - The company authorized a new share repurchase plan worth up to $20 million, with approximately 5.3 million American Depositary Shares repurchased for about $14.7 million as of January 17, 2025[45]. - The diluted net loss per American Depositary Share (ADS) for the fiscal year 2024 was RMB 0.67, an improvement from RMB 1.09 for fiscal year 2023[3]. - The weighted average number of ordinary shares used in the calculation of diluted net loss per share for the three months ended December 31, 2024, was 178,685,466, compared to 182,780,715 for the same period in 2023[3]. Financial Position - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB 2,915.9 million (USD 399.5 million) as of December 31, 2024, down from RMB 3,072.8 million a year earlier[9]. - The company reported a total asset of RMB 10,474,476 thousand as of December 31, 2023, which is a slight decrease from RMB 10,207,001 thousand in 2024[60]. - The company's total liabilities amounted to RMB 4,622,740 thousand as of December 31, 2023, compared to RMB 4,426,422 thousand in 2024, indicating a decrease of about 4%[62]. - The net accounts receivable was RMB 2,184,729 thousand in 2023, slightly decreasing to RMB 2,033,778 thousand in 2024[60]. - The company reported a significant increase in short-term investments from RMB 720,522 thousand in 2023 to RMB 1,271,618 thousand in 2024, reflecting a growth of approximately 76%[60].

Financial Data and Key Metrics Changes - Total revenues increased by 13% year-over-year to RMB2.1 billion [6][9] - E-commerce revenue grew by 14% to RMB1.8 billion, while brand management revenue increased by 10% to RMB331 million [9] - Adjusted net loss attributable to shareholders improved by 12.5% year-over-year to RMB67 million from RMB76 million [13] Business Line Data and Key Metrics Changes - E-commerce services revenue rose by 15% to RMB1.3 billion, driven by a 40% increase in digital marketing and IT solutions [9][10] - BEC product sales revenue grew by 10% year-over-year to RMB454 million, primarily from beauty and cosmetics categories [10] - BBM product sales totaled RMB330 million, reflecting an 11% year-over-year growth [11] Market Data and Key Metrics Changes - Douyin business achieved triple-digit growth year-over-year, enhancing Baozun's leadership in digital commerce [6][18] - The recent Double 11 shopping festival saw total order value reach a record high with double-digit year-over-year growth [21] Company Strategy and Development Direction - The company is focused on advancing its strategic transformation and enhancing partnerships to integrate global resources with local insights [6][7] - Emphasis on omni-channel marketing and digital innovations to boost brand awareness and sales [18][19] - Plans to continue expanding into new categories while maintaining stronghold in core categories like apparel and luxury [58] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating sustained top-line growth momentum despite macroeconomic pressures [6][21] - The company is committed to optimizing operations and enhancing service quality to support brand partners [59] Other Important Information - Cash and cash equivalents totaled RMB2.7 billion as of September 30, 2024 [14] - The company has repurchased approximately 8.6 million ADS for $9.9 million year-to-date, reflecting confidence in future performance [14] Q&A Session Summary Question: Performance during Singles Day and Gap China sales - Management reported solid performance in apparel, sports, and luxury categories, while small appliances and travel categories underperformed [31][33] - Gap's sales on T-Mall increased by three positions, with double-digit growth in GMV and net sales [36] Question: Strategy adjustment due to GMV growth slowdown in live streaming - Management stated that their omni-channel operations allow flexibility in resource allocation based on channel performance [39][41] Question: Monthly sales performance post Double 11 - Sales softened across categories post Double 11, but recovery is expected in apparel as winter approaches [45][46] Question: JD.com investment in clothing category - Baozun has a strong partnership with JD, with Gap being a top-performing brand on the platform [50][51] Question: Return rates for Ralph Lauren brand - High return rates were noted, but the impact on business was minimized through efficient inventory management [50][51] Question: Outlook for consumption trends and next year's expectations - Management expects stabilization in overall consumption and plans to focus on service quality and innovation [57][59]

D > 3Q 2024 Earnings Presentation November 21, 2024 BAO ZUN yof 0 177 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 ...