Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 increased by 5% year-over-year to RMB 2.2 billion, with e-commerce revenue growing by 2.4% to RMB 1.8 billion and brand management revenue rising by 20% to RMB 396 million [8][9] - Non-GAAP operating loss narrowed to RMB 11 million from RMB 85 million a year ago, indicating significant improvement in profitability [4][11] - Blended gross margin for product sales expanded to 34.3%, reflecting a 620 basis points year-over-year increase [9] Business Line Data and Key Metrics Changes - BEC achieved a non-GAAP operating profit of RMB 28 million, compared to an operating loss of RMB 30 million a year ago, marking its most profitable third quarter in recent years [5][6] - BBM revenue grew by 20% year-over-year to RMB 396 million, driven by effective merchandising and marketing initiatives [6][20] - Services revenue for BEC increased by 6.3% year-over-year to RMB 1.4 billion, primarily due to growth in online store operations [8][16] Market Data and Key Metrics Changes - The GAP brand engaged a top-tier brand ambassador, leading to a 25% increase in young customers and significant brand awareness [21][56] - BBM's gross profit margin expanded to 56.5%, up 370 basis points from the previous year, highlighting effective marketing strategies [20] Company Strategy and Development Direction - The company is focused on a strategic transformation with an emphasis on sustainable profitability and growth, anticipating 2026 to be a pivotal year for sustained profitable growth [7][19] - The strategy includes expanding the margin for BEC and optimizing cost efficiency, while BBM focuses on making each brand a successful operation [31][34] Management's Comments on Operating Environment and Future Outlook - Management noted an improvement in consumer sentiment, with consumers increasingly focused on value and targeted purchases [28][29] - The company expects to see strong performance in Q4 2025 and anticipates significant improvements in profitability for 2026 across both business segments [45][46] Other Important Information - The company reclassified an investment related to Tanyo, increasing total equity to RMB 5.5 billion, with no impact on warehouse and logistics operations [13] Q&A Session Summary Question: Observations on consumer sentiment and spending behavior - Management observed that consumer sentiment is improving, with a focus on value-driven purchases, particularly in sports and apparel categories [28][29] Question: 2026 outlook and strategic priorities - Management highlighted margin expansion and cost optimization as key priorities for BEC, while BBM aims to ensure successful operations for existing brands and develop synergies between divisions [31][34] Question: Impact of GAP's brand ambassador on awareness and sales - The collaboration has significantly increased brand awareness and customer engagement, particularly among younger demographics, leading to synergies in sales across product lines [56][57]

Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 increased by 5% year-over-year to RMB 2.2 billion, with e-commerce revenue growing by 2.4% to RMB 1.8 billion and brand management revenue rising by 20% to RMB 396 million [8][9] - Non-GAAP operating loss narrowed to RMB 11 million from RMB 85 million a year ago, indicating significant improvement in profitability [4][11] - Blended gross margin for product sales expanded by 620 basis points year-over-year to 34.3%, with gross profits increasing by 26.1% to RMB 277.4 million [9][11] Business Line Data and Key Metrics Changes - BEC achieved a non-GAAP operating profit of RMB 28 million, compared to an operating loss of RMB 30 million a year ago, marking its most profitable third quarter in recent years [4][5] - BBM revenue grew by 20% year-over-year to RMB 396 million, driven by merchandising and marketing initiatives, with gross profit margin expanding to 56.5% [20][21] Market Data and Key Metrics Changes - Services revenue for BEC grew by 6.3% year-over-year to RMB 1.4 billion, driven by online store operations and additional marketing and IT solutions [8][16] - BEC product sales revenue decreased by 8.9% year-over-year to RMB 413.4 million, primarily due to declines in the appliance and health and nutrition categories [8][9] Company Strategy and Development Direction - The company is focused on a strategic transformation aimed at sustainable profitability and growth, with 2025 seen as a building phase and 2026 anticipated to mark a shift to sustained profitable growth [6][7] - The company is enhancing its distribution model to improve margins and is investing in technology and AI to drive efficiency and profitability [33][37] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment is improving, with consumers increasingly focused on value and willing to spend on premium categories [30][31] - The company expects strong performance in Q4 2025 and anticipates significant improvements in profitability for 2026 across both BEC and BBM segments [47][48] Other Important Information - The company reclassified an investment related to Tanyo, increasing total equity to RMB 5.5 billion, with no impact on warehouse and logistics operations [12] - The company is actively looking for new brands to add to its BBM portfolio while ensuring careful selection to maximize success [37] Q&A Session Summary Question: Observations on consumer sentiment and spending behavior - Management observed that consumer sentiment is improving, with a focus on value and targeted spending, particularly in sports and apparel categories [30][31] Question: 2026 outlook and strategic priorities - Management highlighted margin expansion and cost optimization as key priorities for BEC, while BBM focuses on successful brand operations and synergy between divisions [33][34] Question: Impact of GAP's brand ambassador on awareness and sales - The collaboration with a brand ambassador has increased young customer engagement by 25% and strengthened brand awareness across key product categories [55][56]

Financial Performance - Total net revenue reached RMB 22 billion, a 5% year-over-year increase[5, 7] - Non-GAAP operating loss narrowed by 87% year-over-year, reaching RMB (108) million[5] - Brand Management (BBM) revenue increased by 20% year-over-year, reaching RMB 396 million[5] - E-Commerce revenue increased by 2% year-over-year, reaching RMB 18 billion[5, 7] E-Commerce Strategy - Online Store Operations revenue increased by 16% year-over-year[35] - Digital Marketing & IT Solutions revenue increased by 6% year-over-year[35] - Luxury category revenue within Online Store Operations increased by 14% year-over-year[35] - Other Apparel category revenue within Online Store Operations increased by 25% year-over-year[36] - E-Commerce product sales gross margin increased from 102% in 3Q2024 to 131% in 3Q2025[30] Brand Management Achievements - Brand Management (BBM) net revenues reached RMB 396 million, with a 20% year-over-year growth rate[5, 39] - Brand Management (BBM) gross profit margin was 566% in 3Q2025[39]

Financial Performance - Total net revenue reached RMB 2.1 billion, a year-over-year increase of 4%[8] - E-commerce net revenue was RMB 1.7 billion, up 1% year-over-year[8] - BBM (Brand Management) net revenue increased significantly to RMB 387 million, a 17% increase year-over-year[8] - The company reported a non-GAAP operating loss of RMB 67 million[5] - Net loss attributable to ordinary shareholders was RMB 63 million[5] - Non-GAAP net loss attributable to shareholders was RMB (57) million[5] Gross Profit Margin - Group product sales gross profit margin increased to 32.4% in 1Q2025[10] - E-commerce product sales gross profit margin increased to 15% in 1Q2025[12] - Brand Management product sales gross profit margin was 51.6% in 1Q2025[15] Segment Performance - Adjusted operating loss for E-commerce was RMB -46 million[18] - Adjusted operating loss for Brand Management was RMB -21 million[18] Sustainability - The company achieved a 35.5% reduction in carbon emissions compared to the 2021 baseline[22] - Operational carbon neutrality was achieved in 2 parks[22]