2025-11-25 12:30Financial 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]