BAOZUN(BZUN) - 2021 Q3 - Quarterly Report

Strategic Investment and Business Cooperation This section details Cainiao's strategic investment in Baotong and the rationale for their business cooperation Transaction Details Baozun's logistics subsidiary, Baotong, will receive a US$217.9 million strategic investment from Cainiao Network in exchange for a 30% equity stake, formalized through a Share Purchase and Subscription Agreement Investment Details | Party | Role | Investment Amount | Equity Stake | | :--- | :--- | :--- | :--- | | Cainiao Network | Investor | US$217.9 Million | 30% | | Baotong Inc. | Investee (Baozun's subsidiary) | - | - | - The investment is formalized through a Share Purchase and Subscription Agreement between Baozun, its subsidiary Baotong, and Cainiao Network[1] Strategic Rationale and Business Cooperation The partnership aims to leverage Cainiao's national logistics network to enhance Baotong's service portfolio, improve its cost structure, and capture growth opportunities, alongside a Business Cooperation Agreement for joint digital logistics development - The investment will enable Baozun to leverage Cainiao Network's national logistics expertise to improve its cost structure and enrich its service portfolio[2] - A Business Cooperation Agreement (BCA) was also established for the parties to collaborate on developing cutting-edge, customized, and digitalized logistics solutions and expand service scenarios[2] Management Commentary Management from both Baozun and Cainiao expressed optimism about the partnership, highlighting its potential for end-to-end services, high-end sector expansion, and market penetration - Baozun's management stated the partnership will help develop end-to-end services, particularly for its rapid expansion in the high-end sector[3] - Cainiao's management views the collaboration as a key step to expand its resources and penetrate the high-end logistics service market in China[3] Company Overviews This section provides background on Baozun Inc. and Cainiao Network, outlining their core businesses About Baozun Inc. Baozun Inc. is a leading brand e-commerce service provider in China, offering end-to-end solutions including IT, store operations, digital marketing, customer service, and warehousing/fulfillment - Baozun provides integrated one-stop solutions for e-commerce operations, covering IT, online store management, digital marketing, customer services, and warehousing and fulfillment[4] About Cainiao Network Cainiao Network, founded in 2013, is a global industrial internet company focused on creating customer value through technological innovation in community services, global logistics, and smart supply chains - Cainiao Network, founded in May 2013, is a global industrial internet company specializing in community services, global logistics, and smart supply chains[5] Disclosures and Contacts This section includes legal disclaimers for forward-looking statements and contact information for inquiries Safe Harbor Statements This section contains standard legal disclaimers regarding forward-looking statements, as required by the U.S. Private Securities Litigation Reform Act of 1995, warning that actual results may differ from projections - The press release includes forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995, which involve inherent risks and uncertainties[6] Investor and Media Inquiries This section provides contact details for investor and media inquiries for both Baozun Inc. and its PR firm, Christensen, with contacts in China and the U.S. - Contact information for investor and media inquiries is provided for Baozun and its representatives in China and the U.S[7]