Financial Data and Key Metrics Changes - Total revenue grew by 7% year over year, reaching RMB2.6 billion [6][12] - Adjusted operating income expanded to RMB59 million, a significant improvement from RMB10 million in the same period last year [6][17] - Blended gross margin for product sales at a group level was 28.4%, an expansion of 310 basis points year over year [14] - Non-GAAP income from operations was RMB6.1 million, with adjusted non-GAAP income from operations at RMB59 million, a sharp improvement from RMB10 million in the same period last year [17] Business Line Data and Key Metrics Changes - E-commerce revenue grew by 3.4% to RMB2.2 billion, while brand management revenue rose by 35.4% to RMB398 million [12][13] - BEC revenue grew by 3%, with adjusted operating profits rising 56% year over year to RMB94 million, the highest second quarter level in four years [7][17] - BBM revenue grew by 35% year over year, up from 23% in the previous quarter [8] Market Data and Key Metrics Changes - Strong performance in beauty and cosmetics and alcohol categories contributed to e-commerce product sales revenue growth of 3.3% year over year [13][20] - BBM product sales totaled RMB396 million, representing a 35.5% year over year growth, mainly driven by the strong performance of the Gap brand [13] Company Strategy and Development Direction - The company is focused on leveraging technology and data-driven solutions to enhance retail operations and optimize decision-making [9][10] - BEC aims to elevate its role from a distribution partner to a comprehensive trade partner, emphasizing quality over volume [19][20] - BBM is expanding its footprint with new store openings and enhancing its merchandising strategy to capture demand across categories [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the potential for sustainable long-term value creation [6][10] - The company anticipates a promising second half of the year, driven by strong brand partner confidence and planned marketing initiatives [45][68] - Management noted that the recent six-eighteen promotions exceeded expectations, leading to increased confidence among brand partners for the upcoming Double Eleven promotion [45][84] Other Important Information - A one-time write-off of RMB53 million in accounts receivable was recorded due to a conservative assessment of recovery likelihood [11][12] - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB2.7 billion as of June 30, 2025 [18] Q&A Session Summary Question: Contribution from Tmall and impact of instant retail shopping - Management noted significant GMV growth on Tmall and JD during the six-eighteen promotion, with Tmall's growth outpacing JD [40] - Instant retail shopping is gaining popularity, and the company is testing various categories in this space [41][42] Question: Future momentum of BBM business and profitability timeline - Management remains confident in BBM's growth momentum and anticipates achieving GAAP breakeven in Q4 [43][44] Question: E-commerce operational cost benefits and traffic allocation - The company has benefited from rebate programs with platforms, which encourage driving top-line growth [50][51] - Traffic allocation strategies vary by category, with premium brands receiving higher quality traffic [52][53] Question: Brand acquisition and collaboration criteria - The company aims to leverage experience from managing existing brands like Gap and Hunter to support new brand collaborations [56][57] Question: Growth outlook for BEC and benefits from RedNote partnership - Management emphasized ongoing operational efficiency improvements and confidence in the second half of the year [66][71] Question: AI application progress and future direction - The focus on AI is primarily on increasing internal efficiency rather than directly driving revenue [82] - Brands are preparing for the Double Eleven promotion, leveraging insights from previous campaigns [84]

Financial Data and Key Metrics Changes - Baozun Group achieved a total net revenue of RMB2.1 billion for Q1 2025, representing a 4.3% year-over-year increase [13] - E-commerce revenue grew slightly by 1.4% to RMB1.7 billion, while brand management revenue rose by 23% to RMB387 million [13] - The blended gross margin for product sales at the group level was 32.4%, with gross profit increasing by 18.9% year-over-year [15] Business Line Data and Key Metrics Changes - E-commerce product sales revenue increased by 7.3% year-over-year to RMB423 million, driven by strong performance in new categories [14] - Gross margin for e-commerce product sales expanded to 15%, a 130 basis point improvement compared to 13.7% a year ago [15] - Brand management (BBM) achieved 23% year-on-year sales growth, with a gross margin of 51.6% [25][31] Market Data and Key Metrics Changes - The home appliance and consumer electronics categories are performing well, supported by government subsidies [38] - Luxury and fashion apparel categories are also gaining traction, with strong performance noted during promotional campaigns [60] Company Strategy and Development Direction - The company is focused on enhancing its omni-channel capabilities and leveraging technology and AI applications for operational efficiency [9][19] - Baozun plans to open three new stores in major cities to capitalize on growth momentum [11] - The company aims to balance scale expansion with profitability, targeting the opening of 50 new stores in 2025 [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and strategic initiatives, emphasizing a focus on long-term value creation [11] - The company is cautiously optimistic about onboarding new brands due to the current macroeconomic situation [55] Other Important Information - Baozun published its 2024 sustainability report, achieving a 36% reduction in Scope 1-2 carbon emissions compared to the base year 2021 [17] - The company received multiple awards for its content creation efforts at the Alibaba Ecosystem Conference [22] Q&A Session Summary Question: Expectations for the 6.18 campaign and platform performance - Management noted that the 6.18 campaign is the longest yet, with strong early results and improved conversion rates compared to last year [35][37] Question: Updates on BBM strategy and potential acquisitions - The strategy for Gap includes enhancing product marketing and balancing local assortments with global products, with plans to open new stores [43][46] - The company is cautious about acquiring new brands but sees potential synergies between existing brands [55] Question: Key drivers behind strong performance in apparel and sports categories - The apparel and sportswear categories are benefiting from targeted marketing and consumer segmentation strategies [60][62] Question: Integration opportunities between BBM and BEC during the 6.18 campaign - The integration allows for better resource management and responsiveness to platform needs, enhancing overall performance [63]

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 [11][22] - E-commerce revenue grew 6% to RMB 2.5 billion, while brand management revenue increased by 17% to RMB 535 million [22][23] - Adjusted income from operations totaled RMB 103 million, an improvement of 37% year-over-year [27] - Non-GAAP net income attributable to shareholders for the quarter was RMB 46 million, a 59% increase from RMB 29 million in the same period last year [28] Business Line Data and Key Metrics Changes - E-commerce division saw a 16% increase in non-GAAP operating profits, while brand management (BBM) narrowed its losses by 20% [11] - Online store operations revenue increased by 16% year-over-year, and value-added services, including digital marketing and IT solutions, grew by 15% [12][23] - BBM product sales totaled RMB 535 million for the quarter, reflecting a 17% year-over-year growth, driven by strong performance from the Gap brand [24] Market Data and Key Metrics Changes - Douyin maintained triple-digit growth during the quarter, contributing 6% of e-commerce revenue [36] - The company expanded its brand portfolio to over 490, up from approximately 450 a year ago [32] 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 [12] - The year 2025 is seen as a pivotal year for strategic transformation and future growth, with a strengthened senior management team [16] - The company aims to optimize its existing team structure and implement a salary structure and incentive program to enhance profitability [60] Management's Comments on Operating Environment and Future Outlook - Management observed positive consumer sentiment and expects higher momentum in consumption in the future, particularly in categories like home appliances and smartphones [56][57] - The company maintains a high expectation for GMV growth, revenue, and operational profit in 2025 [73] Other Important Information - The company successfully completed its share repurchase program, repurchasing approximately 5.3% of ADS for $14.7 million [29] - Cash and cash equivalents totaled RMB 2.9 billion as of December 31, 2024, compared to RMB 3.1 billion a year ago [30] Q&A Session Summary Question: Improvement in consumer consumption sentiment and expectations for 2025 growth - Management observed decent growth in revenue during recent promotional activities and expects higher momentum in consumption sentiment moving forward [56][57] Question: Update on Gap China's same-store sales growth and performance of other brands under BBM - Same-store sales for Gap China showed low single-digit growth in Q4 2024, with Hunter experiencing over 100% same-store growth last year [63][64] Question: Impact of changing competitive landscape in e-commerce - Management noted that GMV growth on Douyin is higher than on other platforms, and they plan to expand services on Douyin while harmonizing traffic with Tmall and JD [69][70] Question: Baozun's strategy regarding JD.com and AI tools - The company plans to help existing clients move their business onto JD.com, especially in the fashion apparel category, and is leveraging AI to drive efficiency and top-line growth [78][82]