Financial Data and Key Metrics Changes - In Q1 2024, Baozun Group achieved a 5% year-over-year revenue growth, reaching RMB2 billion, driven by a 66% revenue increase in the Brand Management (BBM) segment and improved performance in the E-Commerce (BEC) segment [9][13] - Operating cash flow improved by RMB129 million, reflecting enhanced operational efficiency, with the e-commerce segment's operating cash flow turning positive for the first time since 2019 [9][16] - Gross margin for product sales in e-commerce improved by 230 basis points to 13.8%, while the blended gross margin for product sales increased by 700 basis points year-over-year to 31% [14][15] Business Line Data and Key Metrics Changes - E-commerce revenue contributed RMB1.7 billion, with service revenue increasing by 4% to RMB1.2 billion, attributed to growth in sportswear and digital marketing [13][14] - BBM segment revenue increased to RMB330 million, with a gross margin of 53% and a reduction in operating loss to RMB29 million [13][26] Market Data and Key Metrics Changes - The company noted a significant rebound in the kids and baby segments, with plans to open new stores and introduce segmented product offerings [27][30] - Consumer confidence remains below pre-COVID levels, impacting spending patterns across various categories, with local brands performing better than global brands [51][52] Company Strategy and Development Direction - The primary focus for 2024 is on executing transformation plans and enhancing customer satisfaction through omnichannel capabilities and exclusive distribution collaborations [9][10] - The company aims to expand into new business areas and optimize existing distribution businesses while promoting sustainability and ESG initiatives [17][19][18] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and growth potential, particularly in the BBM segment, despite a cautious consumer sentiment [9][30] - The company is committed to maintaining a balance between short-term sales and long-term brand building, emphasizing the importance of digital marketing and IT solutions [38][55] Other Important Information - The company has initiated a share repurchase program of US$20 million over the next 12 months, reflecting confidence in its business outlook [16] - Baozun's ESG rating was raised from C to B, highlighting its commitment to sustainability [18] Q&A Session Summary Question: Online shopping growth and Gap's offline demand shift - Management noted that online penetration is increasing without cannibalizing offline retail, with successful brands adopting omnichannel strategies [32][34] - Gap is experiencing a decrease in offline traffic, but management expects double-digit growth for the year, supported by new store openings [35] Question: Pricing strategy and consumption trends for Gap - Management emphasized the importance of brand positioning and new product introductions to balance pricing competitiveness [36][38] - Different consumption trends were observed, with offline focusing on value and online on price, leading to a strategy of special online products [39] Question: Brand management performance and new brand incorporation - Management reported good performance during the Chinese New Year, but noted slower sales in the following months due to cautious consumer behavior [42] - There are plans to evaluate new brands carefully, with a strong pipeline for both BEC and BBM businesses [44][45] Question: Live streaming e-commerce and GMV performance - Integration with the Hangzhou location is progressing well, with high double-digit growth in live streaming GMV, although it remains a small proportion of overall GMV [48] Question: Consumer sentiment and 618 Shopping Festival outlook - Consumer confidence remains low, with mixed performance across categories, but some segments like sports and outdoor are doing well [51][52]

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 ...

SHANGHAI, May 28, 2024 /PRNewswire/ -- 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 first quarter of 2024. E-Commerce has made progress in growing service rev ...

SHANGHAI, May 14, 2024 /PRNewswire/ -- 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 that it will release its unaudited financial results for the first quarter ended March 31, 2024 on Tuesday, May 28, 2024, before the open of U.S. markets. The Company will host a conference call to discuss the earnings at 7:30 a.m. Eastern Time on Tuesday, May 28, 2024 (7:30 p.m. Beijing  ...

SHANGHAI, May 10, 2024 /PRNewswire/ -- Baozun Inc. (NASDAQ: BZUN and HKEX: 9991) ("Baozun" or the "Company"), a leading brand e-commerce solution provider and digital commerce enabler in China, announced today that it will hold its annual general meeting of shareholders ("AGM") on Wednesday, June 12, 2024, at 2:00 p.m., Hong Kong time (or 2:00 a.m. on Wednesday, June 12, 2024, New York time). The meeting will be held at Unit 1701-1707 & 1716, 17/F., BEA Tower Millennium City 5, 418 Kwun Tong Road, Kwun Tong ...

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]

Core Viewpoint - Baozun (NASDAQ:BZUN) is an e-commerce enabler company that has faced challenges but is now considered undervalued, with a 1-year price target suggesting a potential upside of over 37% from its current trading price [2][11]. Financial Performance - BZUN ended FY 2023 with revenue of RMB 8.8 billion, reflecting a 5% year-over-year growth, although still below the FY 2021 revenue of over RMB 9.4 billion [4]. - The company experienced a GAAP operating loss margin of -2.3% in FY 2023, a decline from a breakeven point of 0.4% in FY 2022 [4]. - Operating cash flow (OCF) reached a record RMB 454 million in FY 2023, helping to maintain a steady cash position of over RMB 3 billion [4]. Business Segments - BZUN operates three business lines: Baozun E-commerce (BEC), Baozun Brand Management (BBM), and Baozun International (BZI) [2]. - The BBM and BZI segments are expected to benefit from expansions in Southeast Asia through a joint venture with Authentic Brand Group [5]. Cost Management Initiatives - The company is leveraging AI Generated Content (AIGC) to drive cost efficiencies, particularly in Sales & Marketing and Technology & Content expenses, which accounted for over 37% of BZUN's revenue in FY 2023 [6][5]. - The BBM business, which incurred an adjusted operating loss of RMB 187.7 million in FY 2023, has significant room for improvement through AIGC [6]. Market Outlook - The e-commerce segment in China has faced a decline of -9.5% year-over-year in FY 2023, despite overall revenue growth of 4.9% [7]. - Weak consumer sentiment in China poses a challenge, with a shift in consumer spending from products to experience-based services like travel and entertainment [7]. Valuation - The target price for BZUN is based on two scenarios: a bull scenario projecting FY 2024 revenue of $1.3 billion (4.7% growth) and a bear scenario projecting $1.24 billion (flat growth) [8]. - The weighted target price for FY 2024 is $3.3 per share, indicating a potential upside from the current price of $2.4 [9][10].

Tevarak Elevator Pitch I have a Buy rating for Baozun Inc. (NASDAQ:BZUN) [9991:HK] shares. Earlier, my January 26, 2024 update touched on the outlook for BZUN's newly acquired business and the company's new $20 million share repurchase plan. This write-up highlights Baozun's recent share price pullback and the read-throughs from its latest financial disclosures. BZUN's shares have been weak in recent weeks, as its e-commerce segment's product sales and the company's overall profitability for the most re ...

M N 25 Mar 2024 CMB International Global Markets | Equity Research | Company Update Baozun (BZUN US) GAP revitalization making good progress Target Price US$4.93 Baozun delivered mixed 4Q23 results with in-line revenue (+9% YoY) but soft (Previous TP US$6.90) bottom line. For 1Q24E, we expect a low-single-digit YoY decline in revenue, with Up/Downside 113.0% a net loss position, for slower BEC (Baozun E-commerce) recovery with soft Current Price US$2.30 consumption sentiment. Despite that, BBM (Baozun Brand ...

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]