SHANGHAI, May 28, 2024
/PRNewswire/ -- Baozun Inc. (Nasdaq: BZUN and HKEX: 9991)
("Baozun", the "Company" or the "Group"), a leading brand
e-commerce solution provider and digital commerce enabler in
China, today announced its
unaudited financial results for the first quarter ended
March 31, 2024.
Mr. Vincent Qiu, Chairman and
Chief Executive Officer of Baozun, commented, "I'm pleased with our
solid execution of transformation in the first quarter of 2024.
E-Commerce has made progress in growing service revenue and
introducing high-quality exclusive distribution models. Brand
Management continues to advance in transforming Gap China,
launching several China-for-China products and merchandising programs,
which have shown positive market acceptance. With these encouraging results, we are
confident and committed to our strategic transformation to drive
growth."
Ms. Catherine Zhu, Chief
Financial Officer of Baozun, commented, "I'm delighted to report
that Baozun achieved a 5% year-over-year revenue growth, driven by
Brand Management's increased
contributions and better topline momentum from E-Commerce. We also
enriched operating cash flows and free cash flow, achieving a solid
year-over-year improvement. Additionally, the operating cash flow
for our E-Commerce segment in the first quarter turned positive for
the first time since 2019. As we navigate through 2024, our focus
remains on driving strategic growth, ensuring financial stability,
and creating sustainable value for our shareholders."
First Quarter 2024 Financial Highlights
- Total net revenues were RMB1,979.8
million (US$[1]274.2 million), representing an
increase of 4.9% compared with RMB1,887.8
million for the same period of 2023.
- Loss from operations was RMB54.8
million (US$7.6 million),
compared with RMB40.6 million in the
same quarter of last year. Operating margin was negative 2.8%,
compared with negative 2.2% for the same period of 2023.
- Non-GAAP loss from operations[2] was RMB17.5 million (US$2.4
million), compared with RMB9.7
million in the same quarter of last year, with the increase
loss mainly due to loss from Brand Management. Non-GAAP operating
margin was negative 0.9%, compared with negative 0.5% for the same
period of 2023.
- Adjusted operating profit
of E-Commerce[3] was RMB11.8 million (US$1.6 million), compared with RMB25.2 million for the same period of 2023.
- Adjusted operating loss of Brand Management[3] was
RMB29.3 million (US$4.0 million), compared with RMB34.9 million for the same period of 2023.
- Net loss attributable to ordinary shareholders of Baozun
Inc. was RMB66.6 million
(US$9.2 million), narrowed
from RMB83.5 million for the same period of 2023.
- Non-GAAP net loss attributable to ordinary shareholders
of Baozun Inc.[4] was RMB15.4 million (US$2.1 million), compared
with RMB13.1 million for the same period of 2023.
- Basic and diluted net loss attributable to ordinary
shareholders of Baozun Inc. per American Depositary Share
("ADS[5]") were both RMB1.10 (US$0.15), improved from both
RMB1.42 for the same period of
2023.
- Basic and diluted non-GAAP net loss attributable to ordinary
shareholders of Baozun Inc. per ADS[6] were both
RMB0.25 (US$0.03), respectively,
compared with both RMB0.22 for
the same period of 2023.
- Cash and cash equivalents, restricted cash, and short-term
investments totaled RMB2,946.7
million (US$408.1 million), as
of March 31, 2024, compared
with RMB 3,072.8 million as of December
31, 2023.
[1]
This announcement contains translations of certain Renminbi (RMB)
amounts into U.S. dollars (US$) at a specified rate solely for the
convenience of the reader. Unless otherwise noted, the translation
of RMB into US$ has been made at RMB7.2203 to US$1.00, the noon
buying rate in effect on March 29, 2024 as set forth in the
H.10 Statistical Release of the Federal Reserve Board.
|
[2]
Non-GAAP income (loss) from operations is a non-GAAP financial
measure, which is defined as income (loss) from operations
excluding the impact of share-based compensation expenses,
amortization of intangible assets resulting from business
acquisition, acquisition-related expenses, impairment of goodwill,
loss on variance from expected contingent acquisition payment, and
cancellation fees of repurchased ADSs and returned ADSs.
|
[3]
Following the acquisition of Gap Shanghai, the Group updated its
operating segment structure resulting in two segments, which were
(i) E-Commerce; (ii) Brand Management, for more information, please
refer to Supplemental Information.
|
[4]
Non-GAAP net income (loss) attributable to ordinary shareholders of
Baozun Inc. is a non-GAAP financial measure, which is defined as
net income (loss) attributable to ordinary shareholders of Baozun
Inc. excluding the impact of share-based compensation
expenses, amortization of intangible assets resulting from business
acquisition, acquisition-related expenses, impairment of goodwill
and investments, loss on variance from expected contingent
acquisition payment, cancellation fees of repurchased ADSs and
returned ADSs, fair value loss on derivative liabilities, loss on
disposal of subsidiaries and investment in equity investee, and
unrealized investment loss.
|
[5]
Each ADS represents three Class A ordinary shares.
|
[6]
Basic and diluted non-GAAP net income (loss) attributable to
ordinary shareholders of Baozun Inc. per ADS are non-GAAP financial
measures, which are respectively defined as non-GAAP net income
(loss) attributable to ordinary shareholders of Baozun Inc. divided
by weighted average number of shares used in calculating basic and
diluted net income (loss) per ordinary share multiplied by
three, respectively.
|
Reconciliations of GAAP measures to non-GAAP measures presented
above are included at the end of this results announcement.
Adjusted operating profits/losses by segment are included in the
Segments data of Segment Information.
Business Highlights
Baozun e-Commerce, or "BEC"
Baozun e-Commerce includes our China e-commerce businesses, such as brands'
store operations, customer services and value-added services in
logistics and supply chain management, IT and digital marketing.
During the quarter, total service revenue returned to growth, with
double digit growth in sportswear store operation revenues and
strong performance in digital marketing and IT services.
Omni-channel expansion remains a key theme for our brand
partners. By the end of the first quarter, approximately 42.8% of
our brand partners engaged with us for store operations of at least
two channels.
Baozun Brand Management, or "BBM"
BBM engages in holistic brand management, including strategy and
tactic positioning, branding and marketing, retail and e-commerce
operations, supply chain and logistics, and technology empowerment.
We aim to leverage our portfolio of technologies to forge longer
and deeper relationships with brands.
Currently, we have Gap brand and Hunter brand under our Brand
Management business line. During the quarter, product sales revenue
for Brand Management totaled RMB312.9
million, a year-over-year increase of 65.6% from
RMB189.0 million in the same quarter
of last year. The year-over-year comparison also included a timing impact, as
the Company started consolidation of Gap Shanghai in February
2023. Gross profit margin of
product sales for Brand Management in the first quarter of 2024 was
53.1%.
First Quarter 2024 Financial Results
Total net revenues were RMB1,979.8
million (US$274.2 million), an
increase of 4.9% from RMB1,887.8
million in the same quarter of last year. The increase in
total net revenues was mainly driven by a 65.6% increase in product
sales revenue of Brand Management.
Total product sales revenue was RMB707.5 million (US$98.0
million), compared with RMB666.1
million in the same quarter of last year, of which,
- Product sales revenue of E-Commerce was
RMB394.6 million (US$54.7 million), a decrease of 17.3% from
RMB477.1 million in the same quarter
of last year. The decrease was primarily attributable to the
Company's optimization of its product portfolio in distribution
model, especially in the fast-moving consumer goods sector.
The following table sets forth a breakdown of product sales
revenues of E-Commerce by key categories[7] for the
periods indicated:
|
|
For the three months
ended March 31,
|
|
|
2023
|
|
2024
|
|
|
|
RMB
|
|
% of
Net
Revenues
|
|
RMB
|
|
US$
|
|
% of
Net
Revenues
|
|
YoY
Change
|
|
(In millions, except
for percentage)
|
Product Sales
of E-Commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
Appliances
|
|
225.3
|
|
11 %
|
|
190.7
|
|
26.4
|
|
10 %
|
|
-15 %
|
Beauty and
cosmetics
|
|
66.5
|
|
4 %
|
|
69.0
|
|
9.6
|
|
3 %
|
|
4 %
|
Fast moving consumer
goods
|
|
66.6
|
|
4 %
|
|
32.6
|
|
4.5
|
|
2 %
|
|
-51 %
|
Others
|
|
118.7
|
|
6 %
|
|
102.3
|
|
14.2
|
|
5 %
|
|
-14 %
|
Total net revenues
from product
sales of E-Commerce
|
|
477.1
|
|
25 %
|
|
394.6
|
|
54.7
|
|
20 %
|
|
-17 %
|
[7] Key categories refer to
the categories that accounted for no less than 10% of product sales
of E-Commerce revenues during the periods indicated.
|
- Product sales revenue of Brand Management was
RMB312.9 million (US$43.3 million), an increase of 65.6% from
RMB189.0 million in the same quarter
of last year. The increase was primarily attributable to a full
three-month operational period in this quarter compared to
two-month operational period in the same quarter of last year.
Services revenue was RMB1,272.2
million (US$176.2 million), an
increase of 4.1% from RMB1,221.7
million in the same quarter of last year. The increase was
primarily due to the double-digit growth in digital marketing and
IT solutions.
The following table sets forth a breakdown of services revenues
by service type for the periods indicated:
|
|
For the three months
ended March 31,
|
|
|
2023
|
|
2024
|
|
|
|
|
RMB
|
|
% of
Net
Revenues
|
|
RMB
|
|
US$
|
|
% of
Net
Revenues
|
|
YoY
Change
|
|
(In millions, except
for percentage)
|
Services revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Online store
operations
|
|
364.1
|
|
19 %
|
|
366.6
|
|
50.7
|
|
19 %
|
|
1 %
|
Warehousing and
fulfillment
|
|
487.3
|
|
26 %
|
|
461.9
|
|
64.0
|
|
23 %
|
|
-5 %
|
Digital marketing and
IT
solutions
|
|
377.4
|
|
20 %
|
|
462.2
|
|
64.1
|
|
23 %
|
|
22 %
|
Inter-segment
eliminations[8]
|
|
(7.1)
|
|
0 %
|
|
(18.5)
|
|
(2.6)
|
|
-1 %
|
|
161 %
|
Total net revenues
from services
|
|
1,221.7
|
|
65 %
|
|
1,272.2
|
|
176.2
|
|
64 %
|
|
4 %
|
Breakdown of total net revenues of online store operations of
services by key categories[9] of services for the
periods indicated:
|
|
For the three months
ended March 31,
|
|
|
2023
|
|
2024
|
|
|
|
|
RMB
|
|
% of
Net
Revenues
|
|
RMB
|
|
US$
|
|
% of
Net
Revenues
|
|
YoY
Change
|
|
(In millions, except
for percentage)
|
|
|
Online store
operations in
Services revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Apparel and
accessories
|
|
255.6
|
|
14 %
|
|
277.2
|
|
38.4
|
|
14 %
|
|
8 %
|
-
Luxury
|
|
99.0
|
|
5 %
|
|
96.4
|
|
13.4
|
|
5 %
|
|
-3 %
|
-
Sportswear
|
|
88.9
|
|
5 %
|
|
111.7
|
|
15.4
|
|
6 %
|
|
26 %
|
-
Other apparel
|
|
67.7
|
|
4 %
|
|
69.1
|
|
9.6
|
|
3 %
|
|
2 %
|
Others
|
|
108.5
|
|
6 %
|
|
89.4
|
|
12.3
|
|
4 %
|
|
-18 %
|
Inter-segment
eliminations[10]
|
|
(5.4)
|
|
-1 %
|
|
(8.1)
|
|
(1.1)
|
|
0 %
|
|
50 %
|
Total net revenues
from online
store operations in services
|
|
358.7
|
|
19 %
|
|
358.5
|
|
49.6
|
|
18 %
|
|
0 %
|
[8]
The inter-segment eliminations mainly consist of revenues from
digital marketing and IT services provided by E-Commerce to Gap, a
brand under Brand Management.
|
[9]
Key categories refer to the categories that accounted for no less
than 10% of services revenue of E-Commerce during the periods
indicated.
|
[10]
The inter-segment eliminations mainly consist of revenues from
store operation services provided by E-Commerce to Gap, a brand
under Brand Management.
|
Total operating cost and expenses were RMB2,034.6 million (US$281.8 million), compared with RMB1,928.4 million in the same quarter of last
year.
- Cost of products was RMB487.1 million (US$67.5
million), compared with RMB505.1
million in the same quarter of last year. The decrease was
primarily due to the decline in product sales volume of E commerce,
partially offset by the cost of product increase related to Gap
Shanghai, a subsidiary the Company acquired in the first quarter of
2023.
- Fulfillment expenses were RMB546.4 million (US$75.7
million), compared with RMB567.6
million in the same quarter of last year. The decrease was
primarily due to a decline in E-commerce warehouse and logistics
revenue, together with savings in Gap logistics expenses
post-acquisition.
- Sales and marketing expenses were RMB694.0 million (US$96.1
million), compared with RMB592.7
million in the same quarter of last year. The increase was
mainly due to more active performance-driven digital marketing
activities during the quarter.
- Technology and content expenses were RMB133.2 million (US$18.4
million), compared with RMB114.9
million in the same quarter of last year. The increase was
mainly due to more revenues from IT solutions during the quarter,
partially offset by the Company's cost control initiatives and
efficiency improvements.
- General and administrative expenses were RMB179.1 million (US$24.8
million), compared with RMB163.2
million in the same quarter of last year. The increase was
primarily due to the increase in staff cost, as well as strategic
investments in initiatives in high-quality digitalized
distribution, Creative Content to Commerce business and brand
management.
Loss from operations was RMB54.8
million (US$7.6 million),
compared with RMB40.6 million in the
same quarter of last year. Operating margin was negative 2.8%,
compared with negative 2.2% in the same quarter of last year.
Non-GAAP loss from operations was RMB17.5 million (US$2.4
million), compared with RMB9.7
million in the same quarter of last year. The loss was
mainly due to the loss generated from Brand Management business.
Non-GAAP operating margin was negative 0.9%, compared with negative
0.5% in the same quarter of last year.
Adjusted operating profit of E-Commerce was RMB11.8 million (US$1.6
million), compared with RMB25.2
million in the same quarter of last year. Adjusted
operating loss of Brand Management was RMB29.3 million (US$4.0
million), compared with RMB34.9
million in the same quarter of last year.
Unrealized investment loss was RMB17.0 million (US$2.4
million), compared with RMB42.6
million unrealized investment loss in the same quarter of
last year. The unrealized investment loss of this quarter was
mainly related to the decrease in the trading price of Lanvin
Group, a company successfully listed on the New York stock exchange in December 2022 that the Company invested in
June 2021.
Net loss attributable to ordinary shareholders of
Baozun Inc. was RMB66.6 million
(US$9.2 million), compared with
RMB83.5 million in the same quarter
of last year.
Basic and diluted net loss attributable to ordinary
shareholders of Baozun Inc. per ADS were both RMB1.10 (US$0.15),
compared with both RMB1.42 for the
same period of 2023.
Non-GAAP net loss attributable to ordinary
shareholders of Baozun Inc. was RMB15.4
million (US$2.1 million),
compared with RMB13.1 million in the
same quarter of last year.
Basic and diluted non-GAAP net loss attributable to
ordinary shareholders of Baozun Inc. per ADS were both
RMB0.25 (US$0.03), compared with RMB0.22 for the same period of 2023.
Segment Information
(a) Description of segments
Following the acquisition of Gap Shanghai, the Group updated its
operating segments structure resulting in two segments, which were
(i) E-Commerce and (ii) Brand Management;
The following summary describes the operations in each of the
Group's operating segment:
(i) E-Commerce focuses on Baozun traditional
e-commerce service business and comprises two business lines, BEC
(Baozun E-Commerce) and BZI (Baozun International).
a> BEC includes our mainland
China e-commerce businesses, such
as brands' store operations, customer services and value-added
services in logistics and supply chain management, IT and digital
marketing.
b> BZI includes our e-commerce
businesses outside of mainland China, including locations such as
Hong Kong, Macau, Taiwan, South East
Asia and Europe.
(ii) Brand Management engages in holistic brand
management, encompassing strategy and tactic positioning, branding
and marketing, retail and e-commerce operations, supply chain and
logistics and technology empowerment to leverage our portfolio of
technologies to forge into longer and deeper relationships with
brands. Currently, the Company runs brand management operations for
the Gap and Hunter brands in Greater
China.
(b) Segments data
The table below provides a summary of the Group's reportable
segment results for the three months ended March 31, 2023 and 2024, with prior periods'
segment information retrospectively recast to conform to current
period presentation:
|
|
For the three months
ended March 31,
|
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
Net
revenues:
|
|
|
|
|
E-Commerce
|
|
1,705,797
|
|
1,684,276
|
Brand
Management
|
|
189,124
|
|
313,988
|
Inter-segment
eliminations *
|
|
(7,125)
|
|
(18,494)
|
Total consolidated
net revenues
|
|
1,887,796
|
|
1,979,770
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Profits (Losses) **:
|
|
|
|
|
E-Commerce
|
|
25,272
|
|
11,758
|
Brand
Management
|
|
(34,947)
|
|
(29,303)
|
Total Adjusted
Operating Losses
|
|
(9,675)
|
|
(17,545)
|
Inter-segment
eliminations *
|
|
-
|
|
-
|
Unallocated
expenses:
|
|
|
|
|
Share-based
compensation expenses
|
|
(20,103)
|
|
(29,324)
|
Amortization of
intangible assets resulting from business
acquisition
|
|
(8,142)
|
|
(7,911)
|
Acquisition-related
expenses
|
|
(2,709)
|
|
-
|
Total other
expenses
|
|
(37,016)
|
|
(8,236)
|
Loss before income tax and
share of income in equity method investment
|
|
(77,645)
|
|
(63,016)
|
|
*The inter-segment
eliminations mainly consist of revenues from services provided by
E-Commerce to Brand Management.
|
**Adjusted Operating
Profits (Losses) represent segment profits (losses), which is
income (loss) from operations from each segment without
allocating share-based compensation expenses, acquisition-related
expenses and amortization of intangible assets resulting from
business
acquisition.
|
Update in Share Repurchase Programs
On January 24, 2024, the Company's board of
directors authorized the management to set up and implement a new
share repurchase program under which the Company may repurchase up
to US$20 million worth of its outstanding (i) American
depositary shares ("ADSs"), each representing three Class A
ordinary shares, and/or (ii) Class A ordinary shares over the next
12 months starting from January 24, 2024. In April, the
Company repurchased approximately 845 thousand of ADSs for
approximately US$2.1 million under
its share repurchase program through open market.
Conference Call
The Company will host a conference
call to discuss the earnings at 7:30 a.m.
Eastern Time on Tuesday, May 28, 2024 (7:30 p.m. Beijing time on the same day).
Dial-in details for the earnings conference call are as
follows:
United
States:
|
1-888-317-6003
|
Hong Kong:
|
800-963-976
|
Singapore:
|
800-120-5863
|
Mainland
China:
|
4001-206-115
|
International:
|
1-412-317-6061
|
Passcode:
|
3291050
|
A replay of the conference call may be accessible through
June 4, 2024 by dialing the following
numbers:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Canada:
|
855-669-9658
|
Replay Access
Code:
|
2965819
|
A live webcast of the conference call will be available on the
Investor Relations section of Baozun's website at
http://ir.baozun.com. An archived webcast will be available through
the same link following the call.
Use of Non-GAAP Financial Measures
The Company also uses certain non-GAAP financial measures in
evaluating its business. For example, the Company uses non-GAAP
income (loss) from operations, non-GAAP operating margin, non-GAAP
net income (loss), non-GAAP net margin, non-GAAP net income (loss)
attributable to ordinary shareholders of Baozun Inc. and
non-GAAP net income (loss) attributable to ordinary shareholders
of Baozun Inc. per ADS, as supplemental measures to
review and assess its financial and operating performance. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation, or as a substitute for the financial
information prepared and presented in accordance
with U.S. GAAP.
The Company defines non-GAAP income (loss) from operations as
income (loss) from operations excluding the impact of share-based
compensation expenses, amortization of intangible assets resulting
from business acquisition, acquisition-related expenses, impairment
of goodwill, loss on variance from expected contingent acquisition
payment, and cancellation fees of repurchased ADSs and returned
ADSs. The Company defines non-GAAP operating margin as non-GAAP
income (loss) from operations as a percentage of total net
revenues. The Company defines non-GAAP net income (loss) as net
income (loss) excluding the impact of share-based compensation
expenses, amortization of intangible assets resulting from business
acquisition, acquisition-related expenses, impairment of goodwill
and investments, loss on variance from expected contingent
acquisition payment, cancellation fees of repurchased ADSs and
returned ADSs, fair value loss on derivative liabilities, loss on
disposal of subsidiaries and investment in equity investee, and
unrealized investment loss. The Company defines non-GAAP net margin
as non-GAAP net income (loss) as a percentage of total net
revenues. The Company defines non-GAAP net income (loss)
attributable to ordinary shareholders of Baozun Inc. as
net income (loss) attributable to ordinary shareholders
of Baozun Inc. excluding the impact of share-based
compensation expenses, amortization of intangible assets resulting
from business acquisition, acquisition-related expenses, impairment
of goodwill and investments, loss on variance from expected
contingent acquisition payment, cancellation fees of repurchased
ADSs and returned ADSs, fair value loss on derivative liabilities,
loss on disposal of subsidiaries and investment in equity investee,
and unrealized investment loss. The Company defines non-GAAP net
income (loss) attributable to ordinary shareholders of Baozun
Inc. per ADS as non-GAAP net income (loss) attributable to
ordinary shareholders of Baozun Inc. divided by weighted
average number of shares used in calculating net income (loss) per
ordinary share multiplied by three.
The Company presents the non-GAAP financial measures because
they are used by the Company's management to evaluate the Company's
financial and operating performance and formulate business plans.
Non-GAAP income (loss) from operations, non-GAAP net income (loss),
non-GAAP net income (loss) attributable to ordinary shareholders
of Baozun Inc. and Non-GAAP net income (loss)
attributable to ordinary shareholders of Baozun Inc. per
ADS reflect the Company's ongoing business operations in a manner
that allows more meaningful period-to-period comparisons. The
Company believes that the use of the non-GAAP financial measures
facilitates investors to understand and evaluate the Company's
current operating performance and future prospects in the same
manner as management does, if they so choose. The Company also
believes that the non-GAAP financial measures provide useful
information to both management and investors by excluding certain
expenses, gain/loss and other items that are not expected to result
in future cash payments or that are non-recurring in nature or may
not be indicative of the Company's core operating results and
business outlook.
The non-GAAP financial measures are not defined
under U.S. GAAP and are not presented in accordance
with U.S. GAAP. The non-GAAP financial measures have
limitations as analytical tools. One of the key limitations of
using non-GAAP income (loss) from operations, non-GAAP net income
(loss), non-GAAP net income (loss) attributable to ordinary
shareholders of Baozun Inc., and non-GAAP net income (loss)
attributable to ordinary shareholders of Baozun Inc. per
ADS is that they do not reflect all items of income and expense
that affect the Company's operations. Further, the non-GAAP
measures may differ from the non-GAAP measures used by other
companies, including peer companies, potentially limiting the
comparability of their financial results to the Company's. In light
of the foregoing limitations, the non-GAAP income (loss) from
operations, non-GAAP operating margin, non-GAAP net income (loss),
non-GAAP net margin, non-GAAP net income (loss) attributable to
ordinary shareholders of Baozun Inc. and non-GAAP net
income (loss) attributable to ordinary shareholders of Baozun
Inc. per ADS for the period should not be considered in
isolation from or as an alternative to income (loss) from
operations, operating margin, net income (loss), net margin, net
income (loss) attributable to ordinary shareholders of Baozun
Inc. and net income (loss) attributable to ordinary
shareholders of Baozun Inc. per ADS, or other financial
measures prepared in accordance with U.S. GAAP.
The Company compensates for these limitations by reconciling the
non-GAAP financial measures to the nearest U.S. GAAP
performance measures, which should be considered when evaluating
the Company's performance. The company encourages you to review the
company's financial information in its entirety and not rely on a
single financial measure. For reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures, please see the section of the accompanying tables titled,
"Reconciliations of GAAP and Non-GAAP Results."
Safe Harbor Statements
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident," "potential," "continues,"
"ongoing," "targets," "guidance," "going forward," "looking
forward," "outlook" or other similar expressions. Statements that
are not historical facts, including but not limited to statements
about Baozun's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to Baozun's filings with the
United States Securities and Exchange Commission and its
announcements, notices or other documents published on the website
of The Stock Exchange of Hong Kong Limited. All information
provided in this announcement is as of the date hereof and is based
on assumptions that Baozun believes to be reasonable as of this
date, and Baozun undertakes no obligation to update such
information, except as required under applicable law.
About Baozun Inc.
Founded in 2007, Baozun Inc. is a leader in brand e-commerce
service, brand management, and digital commerce service. It
serves more than 450 brands from various industries and sectors
around the world, including East and Southeast Asia, Europe and North
America.
Baozun Inc. comprises three major business lines - Baozun
e-Commerce (BEC), Baozun Brand Management (BBM) and Baozun
International (BZI) and is committed to accelerating high-quality
and sustainable growth. Driven by the principle that
"Technology Empowers the Future Success", Baozun's business lines
are devoted to empowering their clients' business and navigating
their new phase of development.
For more information, please visit http://ir.baozun.com.
For investor and media inquiries, please contact:
Baozun Inc.
Ms. Wendy
Sun
Email: ir@baozun.com
Baozun
Inc.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
December 31,
2023
|
|
March
31,
2024
|
|
March
31,
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,149,531
|
|
1,946,648
|
|
269,608
|
Restricted
cash
|
|
202,764
|
|
352,777
|
|
48,859
|
Short-term
investments
|
|
720,522
|
|
647,239
|
|
89,642
|
Accounts receivable,
net
|
|
2,184,729
|
|
1,713,723
|
|
237,348
|
Inventories
|
|
1,045,116
|
|
1,084,466
|
|
150,197
|
Advances to
suppliers
|
|
311,111
|
|
264,877
|
|
36,685
|
Prepayments and other
current assets
|
|
590,350
|
|
688,773
|
|
95,394
|
Amounts due from
related parties
|
|
86,661
|
|
86,191
|
|
11,937
|
Total current
assets
|
|
7,290,784
|
|
6,784,694
|
|
939,670
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Long term
investments
|
|
359,129
|
|
347,107
|
|
48,074
|
Property and
equipment, net
|
|
851,151
|
|
821,130
|
|
113,725
|
Intangible assets,
net
|
|
306,420
|
|
297,276
|
|
41,172
|
Land use right,
net
|
|
38,464
|
|
38,208
|
|
5,292
|
Operating lease
right-of-use assets
|
|
1,070,120
|
|
952,432
|
|
131,910
|
Goodwill
|
|
312,464
|
|
312,464
|
|
43,276
|
Other non-current
assets
|
|
45,316
|
|
71,143
|
|
9,853
|
Deferred tax
assets
|
|
200,628
|
|
204,409
|
|
28,310
|
Total
non-current assets
|
|
3,183,692
|
|
3,044,169
|
|
421,612
|
|
|
|
|
|
|
|
Total
assets
|
|
10,474,476
|
|
9,828,863
|
|
1,361,282
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term
loan
|
|
1,115,721
|
|
1,099,789
|
|
152,319
|
Accounts
payable
|
|
563,562
|
|
454,686
|
|
62,973
|
Notes
payable
|
|
506,629
|
|
373,137
|
|
51,679
|
Income tax
payables
|
|
18,768
|
|
12,802
|
|
1,773
|
Accrued expenses and
other current
liabilities
|
|
1,188,179
|
|
986,727
|
|
136,660
|
Amounts due to related
parties
|
|
32,118
|
|
4,515
|
|
625
|
Current operating
lease liabilities
|
|
332,983
|
|
301,358
|
|
41,738
|
Total current
liabilities
|
|
3,757,960
|
|
3,233,014
|
|
447,767
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
24,966
|
|
23,271
|
|
3,223
|
Long-term operating
lease liabilities
|
|
799,096
|
|
708,487
|
|
98,124
|
Other non-current
liabilities
|
|
40,718
|
|
40,115
|
|
5,556
|
Total non-current
liabilities
|
|
864,780
|
|
771,873
|
|
106,903
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,622,740
|
|
4,004,887
|
|
554,670
|
|
Baozun
Inc.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except for share and per share data)
|
|
|
|
As of
|
|
|
December 31,
2023
|
|
March
31,
2024
|
|
March
31,
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
1,584,858
|
|
1,590,390
|
|
220,266
|
|
|
|
|
|
|
|
Baozun Inc.
shareholders' equity:
|
|
|
|
|
|
|
Class A ordinary
shares (US$0.0001 par
value; 470,000,000 shares authorized,
167,901,880 and 169,928,854
shares
issued and outstanding as of December
31, 2023, and March
31, 2024,
respectively)
|
|
93
|
|
95
|
|
13
|
Class B ordinary
shares (US$0.0001 par
value; 30,000,000 shares authorized,
13,300,738 shares issued and
outstanding
as of December 31, 2023,
and March 31,
2024, respectively)
|
|
8
|
|
8
|
|
1
|
Additional paid-in
capital
|
|
4,571,439
|
|
4,597,336
|
|
636,724
|
Treasury
shares
|
|
-
|
|
-
|
|
-
|
Accumulated
deficit
|
|
(506,587)
|
|
(573,226)
|
|
(79,390)
|
Accumulated other
comprehensive income
|
|
32,251
|
|
43,887
|
|
6,078
|
|
|
|
|
|
|
|
Total Baozun Inc.
shareholders' equity
|
|
4,097,204
|
|
4,068,100
|
|
563,426
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
169,674
|
|
165,486
|
|
22,920
|
|
|
|
|
|
|
|
Total
equity
|
|
4,266,878
|
|
4,233,586
|
|
586,346
|
|
|
|
|
|
|
|
Total liabilities, redeemable
non-
controlling interests and equity
|
|
10,474,476
|
|
9,828,863
|
|
1,361,282
|
Baozun
Inc.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
(In thousands,
except for share and per share data and per ADS
data)
|
|
|
|
|
|
|
|
|
|
For the three
months ended
March 31,
|
|
|
|
2023
|
|
2024
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
Product sales
(1)
|
|
666,069
|
|
707,524
|
|
97,991
|
|
Services
|
|
1,221,727
|
|
1,272,246
|
|
176,204
|
|
Total net
revenues
|
|
1,887,796
|
|
1,979,770
|
|
274,195
|
|
|
|
|
|
|
|
|
|
Operating
expenses (1)
|
|
|
|
|
|
|
|
Cost of
products
|
|
(505,087)
|
|
(487,111)
|
|
(67,464)
|
|
Fulfillment(2)
|
|
(567,629)
|
|
(546,391)
|
|
(75,674)
|
|
Sales and
marketing (2)
|
|
(592,687)
|
|
(694,043)
|
|
(96,124)
|
|
Technology and
content(2)
|
|
(114,891)
|
|
(133,187)
|
|
(18,446)
|
|
General and
administrative(2)
|
|
(163,227)
|
|
(179,087)
|
|
(24,804)
|
|
Other operating
income, net
|
|
15,096
|
|
5,269
|
|
730
|
|
Total operating
expenses
|
|
(1,928,425)
|
|
(2,034,550)
|
|
(281,782)
|
|
Loss from operations
|
|
(40,629)
|
|
(54,780)
|
|
(7,587)
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
Interest
income
|
|
17,853
|
|
19,174
|
|
2,656
|
|
Interest
expense
|
|
(10,955)
|
|
(10,205)
|
|
(1,413)
|
|
Unrealized
investment loss
|
|
(42,569)
|
|
(17,025)
|
|
(2,358)
|
|
Exchange
loss
|
|
(1,345)
|
|
(180)
|
|
(25)
|
|
Loss before income
tax and share of income in equity
method investment
|
|
(77,645)
|
|
(63,016)
|
|
(8,727)
|
|
Income tax
expense (3)
|
|
(1,755)
|
|
(7,102)
|
|
(984)
|
|
Share of loss in
equity
method investment, net of tax
of
nil
|
|
224
|
|
4,826
|
|
668
|
|
Net
loss
|
|
(79,176)
|
|
(65,292)
|
|
(9,043)
|
|
Net
loss attributable to
noncontrolling
interests
|
|
523
|
|
4,188
|
|
580
|
|
Net
income attributable to
redeemable
noncontrolling interests
|
|
(4,894)
|
|
(5,533)
|
|
(766)
|
|
Net loss
attributable to ordinary shareholders of Baozun
Inc.
|
|
(83,547)
|
|
(66,637)
|
|
(9,229)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary shareholders of
Baozun Inc.:
|
|
|
|
|
|
|
|
Basic
|
|
(0.47)
|
|
(0.37)
|
|
(0.05)
|
|
Diluted
|
|
(0.47)
|
|
(0.37)
|
|
(0.05)
|
|
Net loss per ADS
attributable to ordinary shareholders of
Baozun Inc.:
|
|
|
|
|
|
|
|
Basic
|
|
(1.42)
|
|
(1.10)
|
|
(0.15)
|
|
Diluted
|
|
(1.42)
|
|
(1.10)
|
|
(0.15)
|
|
Weighted average
shares used in calculating net loss per
ordinary share
|
|
|
|
|
|
|
|
Basic
|
|
176,786,718
|
|
181,634,752
|
|
181,634,752
|
|
Diluted
|
|
176,786,718
|
|
181,634,752
|
|
181,634,752
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(79,176)
|
|
(65,292)
|
|
(9,043)
|
|
Other comprehensive
income, net of tax of nil:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(7,797)
|
|
11,636
|
|
1,612
|
|
Comprehensive
loss
|
|
(86,973)
|
|
(53,656)
|
|
(7,431)
|
|
(1) Including product sales from E-Commerce and Brand Management
of RMB394.6 million and RMB312.9 million for the three months period
ended March 31, 2024, respectively,
compared with product sales E-Commerce and Brand Management of
RMB477.1 million and RMB189.0 million for the three months period
ended March 31, 2023.
(2) Share-based compensation expenses are allocated in operating
expenses items as follows:
|
|
For the three
months ended
March 31,
|
|
|
|
2023
|
|
2024
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
Fulfillment
|
|
1,011
|
|
2,062
|
|
286
|
|
Sales and
marketing
|
|
7,866
|
|
10,009
|
|
1,386
|
|
Technology and
content
|
|
1,543
|
|
4,292
|
|
594
|
|
General and
administrative
|
|
9,683
|
|
12,961
|
|
1,795
|
|
|
|
20,103
|
|
29,324
|
|
4,061
|
|
(2) Including amortization of intangible assets resulting from
business acquisition, which amounted to RMB8.1 million and RMB7.9
million for the three months period ended March 31, 2023 and 2024, respectively.
(3) Including income tax benefits of RMB1.6 million and RMB1.5
million related to the reversal of deferred tax liabilities,
which was recognized on business acquisition for the three months
period ended March 31, 2023 and 2024,
respectively.
Baozun
Inc.
|
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
(in thousands,
except for share and per ADS data)
|
|
|
|
|
|
For the three
months ended
March 31,
|
|
|
|
2023
|
|
2024
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
Loss
from operations
|
|
(40,629)
|
|
(54,780)
|
|
(7,587)
|
|
Add: Share-based
compensation expenses
|
|
20,103
|
|
29,324
|
|
4,061
|
|
Amortization of
intangible assets resulting from
business acquisition
|
|
8,142
|
|
7,911
|
|
1,095
|
|
Acquisition-related
expenses
|
|
2,709
|
|
-
|
|
-
|
|
Non-GAAP
loss from operations
|
|
(9,675)
|
|
(17,545)
|
|
(2,431)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(79,176)
|
|
(65,292)
|
|
(9,043)
|
|
Add: Share-based
compensation expenses
|
|
20,103
|
|
29,324
|
|
4,061
|
|
Amortization of
intangible assets resulting from
business acquisition
|
|
8,142
|
|
7,911
|
|
1,095
|
|
Acquisition-related
expenses
|
|
2,709
|
|
-
|
|
-
|
|
Unrealized investment
loss
|
|
42,569
|
|
17,025
|
|
2,358
|
|
Less: Tax effect
of amortization of intangible assets
resulting from business
acquisition
|
|
(1,565)
|
|
(1,507)
|
|
(209)
|
|
Non-GAAP net
loss
|
|
(7,218)
|
|
(12,539)
|
|
(1,738)
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to ordinary shareholders of Baozun
Inc.
|
|
(83,547)
|
|
(66,637)
|
|
(9,229)
|
|
Add: Share-based
compensation expenses
|
|
20,103
|
|
29,324
|
|
4,061
|
|
Amortization of
intangible assets resulting from
business acquisition
|
|
6,233
|
|
5,991
|
|
830
|
|
Acquisition-related
expenses
|
|
2,709
|
|
-
|
|
-
|
|
Unrealized investment
loss
|
|
42,569
|
|
17,025
|
|
2,358
|
|
Less: Tax effect
of amortization of intangible assets
resulting from business
acquisition
|
|
(1,188)
|
|
(1,127)
|
|
(156)
|
|
Non-GAAP
net loss attributable to ordinary
shareholders of Baozun Inc.
|
|
(13,121)
|
|
(15,424)
|
|
(2,136)
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
loss attributable to ordinary
shareholders of Baozun Inc. per ADS:
|
|
|
|
|
|
|
|
Basic
|
|
(0.22)
|
|
(0.25)
|
|
(0.03)
|
|
Diluted
|
|
(0.22)
|
|
(0.25)
|
|
(0.03)
|
|
Weighted average
shares used in calculating net loss
per ordinary share
|
|
|
|
|
|
|
|
Basic
|
|
176,786,718
|
|
181,634,752
|
|
181,634,752
|
|
Diluted
|
|
176,786,718
|
|
181,634,752
|
|
181,634,752
|
|
View original
content:https://www.prnewswire.com/news-releases/baozun-announces-first-quarter-2024-unaudited-financial-results-302156556.html
SOURCE Baozun Inc.