Core Insights - Baosheng E-commerce (NASDAQ:BZUN/HK:9991) reported a 5% year-on-year increase in total net revenue for Q3 2025, reaching 2.2 billion yuan, with e-commerce revenue growing by 2% to 1.8 billion yuan and brand management revenue surging by 20% to 400 million yuan [1] - The company’s strategic transformation is yielding positive results, with significant improvements in operational efficiency and profitability, as indicated by a substantial reduction in operating losses to 10.8 million yuan [1][3] - The focus on sustainable profitability and growth is evident in the company’s strategic layout, which includes optimizing distribution models and enhancing operational efficiency through technology [1][2] E-commerce Business Performance - In Q3 2025, Baosheng's e-commerce business generated net revenue of 1.8 billion yuan, a 2% increase year-on-year, with service revenue rising by 6% to 1.4 billion yuan [1][2] - The gross margin for the e-commerce distribution business improved by 300 basis points to 13.1%, driven by category matrix optimization and better inventory management [2] - The company achieved a turnaround in operating profit for the e-commerce segment, reporting 28 million yuan in Q3, marking a significant improvement compared to the same period last year [1][3] Brand Management Business Performance - The brand management segment continued its strong growth, with revenue increasing by 20% year-on-year to 396 million yuan, supported by improvements in key operational metrics [2][3] - The gross profit for the brand management business rose by 28% to 223 million yuan, with the gross margin increasing by 370 basis points to 56.6% [3] - The adjusted operating loss for the brand management segment narrowed by 30% year-on-year to 39 million yuan, reflecting enhanced operational efficiency [3] Strategic Initiatives - Baosheng E-commerce is expanding its brand management portfolio, including the ongoing rollout of GAP stores, with 11 new stores opened in Q3 2025, bringing the total to 163 [3] - The company is also enhancing its presence in the fashion sector with the introduction of the Hunter brand, which has opened 8 stores, further solidifying its market position [3] - The overall business structure is becoming more balanced, setting a solid foundation for future growth as both e-commerce and brand management segments show improved performance [3]