BAOZUN(BZUN) - 2024 Q4 - Annual Report

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$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$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$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$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$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].