Baozun Inc. (Nasdaq: BZUN) ("Baozun" or the "Company"), the leading
brand e-commerce service partner that helps brands execute their
e-commerce strategies in China, today announced its unaudited
financial results for the fourth quarter and fiscal year ended
December 31, 2018.
Fourth Quarter 2018 Financial
Highlights
- Total net revenues were RMB2,201.9 million (US$1320.3 million),
an increase of 40.7% year-over-year. Services revenue was
RMB1,226.6 million (US$178.4 million), an increase of 56.7%
year-over-year. Product sales revenue was RMB975.4 million
(US$141.9 million), an increase of 24.6% year-over-year.
- Income from operations was RMB229.8 million (US$33.4 million),
an increase of 30.8% year-over-year. Operating margin was 10.4%,
compared with 11.2% in the same quarter of last year.
- Non-GAAP income from operations2 was RMB247.1 million (US$35.9
million), an increase of 30.1% year-over-year. Non-GAAP operating
margin was 11.2%, compared with 12.1% in the same quarter of last
year.
- Net income attributable to ordinary shareholders of Baozun Inc.
was RMB188.2 million (US$27.4 million), an increase of 28.4%
year-over-year.
- Non-GAAP net income attributable to ordinary shareholders of
Baozun Inc.3 was RMB205.3 million (US$29.9 million), an increase of
27.8% year-over-year.
- Basic and diluted net income attributable to ordinary
shareholders of Baozun Inc. per American Depository Share (“ADS4”)
were RMB3.29 (US$0.48) and RMB3.17 (US$0.46), respectively,
compared with basic and diluted net income attributable to ordinary
shareholders of Baozun Inc. per ADS of RMB2.67 and RMB2.48,
respectively, for the same period of 2017.
- Basic and diluted non-GAAP net income attributable to ordinary
shareholders of Baozun Inc. per ADS5 were RMB3.59 (US$0.52) and
RMB3.46 (US$0.50), respectively, compared with basic and diluted
non-GAAP net income attributable to ordinary shareholders of Baozun
Inc. per ADS of RMB2.93 and RMB2.72, respectively, for the same
period of 2017.
Fourth Quarter 2018 Operational Highlights
- Total Gross Merchandise Volume (“GMV”)6 was RMB12,037.7
million, an increase of 42.8% year-over-year.
- Distribution GMV7 was RMB1,118.7 million, an increase of 23.3%
year-over-year.
- Non-distribution GMV8 was RMB10,919.0 million, an increase of
45.2% year-over-year.
- Number of brand partners increased to 185 as of December 31,
2018, from 152 as of December 31, 2017.
- Number of GMV brand partners increased to 178 as of December
31, 2018, from 146 as of December 31, 2017.
Fiscal Year 2018 Financial Highlights
- Total net revenues were RMB5,393.0 million (US$784.4 million),
an increase of 30.0% year-over-year.
- Income from operations was RMB355.8 million (US$51.7 million),
an increase of 38.8% year-over-year.
- Non-GAAP income from operations was RMB433.2 million (US$63.0
million), an increase of 37.4% year-over-year.
- Net income attributable to ordinary shareholders of Baozun Inc.
was RMB269.7 million (US$39.2 million), an increase of 29.1%
year-over-year.
- Non-GAAP net income attributable to ordinary shareholders of
Baozun Inc. was RMB346.2 million (US$50.3 million), an increase of
29.5% year-over-year.
- Basic and diluted net income attributable to ordinary
shareholders of Baozun Inc. per ADS were RMB4.76 (US$0.69) and
RMB4.51 (US$0.66), respectively, compared with basic and diluted
net income attributable to ordinary shareholders of Baozun Inc. per
ADS of RMB3.87 and RMB3.56, respectively, for fiscal year
2017.
- Basic and diluted non-GAAP net income attributable to ordinary
shareholders of Baozun Inc. per ADS were RMB6.11 (US$0.89) and
RMB5.79 (US$0.84), respectively, compared with basic and diluted
non-GAAP net income attributable to ordinary shareholders of Baozun
Inc. per ADS of RMB4.95 and RMB4.55, respectively, for fiscal year
2017.
Fiscal Year 2018 Operational Highlights
- Total GMV was RMB29,426.0 million, an increase of 54.0%
year-over-year.
- Distribution GMV was RMB2,902.0 million, an increase of 10.8%
year-over-year.
- Non-distribution GMV was RMB26,524.0 million, an increase of
60.8% year-over-year.
“We closed out the year strongly with solid financial and
operational results driven primarily by strong growth from existing
online stores, improved efficiency as a result of the application
of innovative proprietary technologies and tools, and growth in our
digital marketing services,” commented Mr. Vincent Qiu, Chairman
and Chief Executive Officer of Baozun. “Despite some uncertainties
in macroeconomic, I am confident in our ability to develop new
technologies and apply them to our expanding portfolio of
omni-channel services which will create more value for our brand
partners and drive future sustainable growth. We continue to see
the number of new brand partners coming on board accelerating and
we are confident that our investments in strengthening our
long-term technological competitive advantage will further
reinforce our market leading position in China’s brand e-commerce
market.”
Mr. Robin Lu, Chief Financial Officer of Baozun
commented, “We are pleased to deliver another strong quarter of
growth with GMV increasing by 42.8% year-over-year. Total net
revenue also increased significantly, growing by 40.7%
year-over-year. Investments in technological innovation and
productization during the quarter were RMB21.0 million, which we
believe will enable us to expand our addressable market and
strengthen our long-term competitiveness. We remain confident in
our strategy and the effectiveness of our operations and services,
and expect GMV to grow by 40% to 50% year-over-year and total net
revenues to increase to over RMB7.2 billion during fiscal year
2019. For the first quarter of 2019, we expect GMV to grow by 55%
to 60% year-over-year.”
Fourth Quarter 2018 Financial Results
Total net revenues were RMB2,201.9 million
(US$320.3 million), an increase of 40.7% from RMB1,565.4 million in
the same quarter of last year.
Product sales revenue was RMB975.4 million
(US$141.9 million), an increase of 24.6% from RMB782.8 million
in the same quarter of last year. The increase was primarily
attributable to the increase in product sales revenue resulting
from the increased popularity of brand partners’ products and
Baozun’s increasingly effective marketing and promotional
campaigns.
Services revenue was RMB1,226.6 million
(US$178.4 million), an increase of 56.7% from RMB782.6 million
in the same quarter of last year. The increase was primarily
attributable to the rapid growth in sales from existing brand
partners and the addition of new brand partners under the Company’s
consignment model and service fee model.
Total operating expenses were RMB1,972.2
million (US$286.8 million), compared with RMB1,389.7 million in the
same quarter of last year.
- Cost of products was RMB790.1
million (US$114.9 million), compared with RMB630.3 million in the
same quarter of last year. The increase was primarily due to higher
costs associated with an increase in product sales revenue.
- Fulfillment expenses were RMB512.0 million
(US$74.5million), compared with RMB339.5 million in the same
quarter of last year. The increase was primarily due to an increase
in GMV from the Company’s distribution and consignment model
business and increased warehouse rental expenses.
- Sales and marketing expenses were RMB543.7
million (US$79.1 million), compared with RMB343.0 million in the
same quarter of last year. The increase was primarily due to the
addition of online store operational staff, an increase in
promotional and marketing expenses, including digital marketing
expenses.
- Technology and content expenses were RMB84.0
million (US$12.2 million), compared with RMB44.9 million in the
same quarter of last year. The increase was primarily due to
increased investments in innovation and productization, and
recruitment of additional technology-focused staff.
- General and administrative expenses were
RMB42.8 million (US$6.2 million), compared with RMB33.0 million in
the same quarter of last year. The increase was primarily due to an
increase in administrative, corporate strategy, and business
planning staff.
Income from operations was RMB229.8 million
(US$33.4 million), compared with RMB175.7 million in the same
quarter of last year. Operating margin was 10.4%, compared
with 11.2% in the same quarter of last year.
Non-GAAP income from operations was RMB247.1
million (US$35.9 million), compared with RMB189.9 million in the
same quarter of last year. Non-GAAP operating margin was 11.2%,
compared with 12.1% in the same quarter of last year.
Net income attributable to ordinary
shareholders of Baozun Inc. was RMB188.2 million (US$27.4 million),
an increase of 28.4% from the same quarter of last year. Basic and
diluted net income attributable to ordinary shareholders of Baozun
Inc. per ADS were RMB3.29 (US$0.48) and RMB3.17 (US$0.46),
respectively, compared with basic and diluted net income
attributable to ordinary shareholders of Baozun Inc. per ADS of
RMB2.67 and RMB2.48, respectively, in the same period of 2017.
Non-GAAP net income attributable to ordinary
shareholders of Baozun Inc. was RMB205.3 million (US$29.9 million),
an increase of 27.8% from the same quarter of last year. Basic
and diluted non-GAAP net income attributable to ordinary
shareholders of Baozun Inc. per ADS were RMB3.59 (US$0.52) and
RMB3.46 (US$0.50), respectively, compared with basic and diluted
non-GAAP net income attributable to ordinary shareholders of Baozun
Inc. per ADS of RMB2.93 and RMB2.72, respectively, in the same
period of 2017.
Fiscal Year 2018 Financial Results
Total net revenues were RMB5,393.0
million (US$784.4 million), an increase of 30.0%
from RMB4,148.8 million in fiscal year 2017.
Product sales revenue was RMB2,516.9
million (US$366.1 million), an increase of 11.5%
from RMB2,257.6 million in fiscal year 2017. The increase
was primarily attributable to the increase in product sales revenue
resulting from the increased popularity of brand partners’ products
and Baozun’s increasingly effective marketing and promotional
campaigns, which were partially offset by the transition of a
leading electronics brand partner’s business from the distribution
model to the consignment model in September 2017.
Services revenue was RMB2,876.2
million (US$418.3 million), an increase of 52.1%
from RMB1,891.2 million in fiscal year 2017. The increase
was primarily attributable to the rapid growth in sales from
existing brand partners and the addition of new brand partners
under the Company’s consignment model and service fee model.
Total operating
expenses were RMB5,037.3 million (US$732.6
million), compared with RMB3,892.5 million in fiscal year
2017.
- Cost of products was RMB2,034.9
million (US$296.0 million), compared with RMB1,917.5
million in fiscal year 2017. The increase was primarily due to
higher costs associated with an increase in product sales revenue,
which were partially offset by the transition of a leading
electronics brand partner’s business from the distribution model to
the consignment model in September 2017.
- Fulfillment expenses were RMB1,262.3
million (US$183.6 million), compared with RMB818.2
million in fiscal year 2017. The increase was primarily due to
an increase in GMV from the Company’s distribution and consignment
model business and increased warehouse rental expenses.
- Sales and marketing
expenses were RMB1,339.0 million (US$194.7
million), compared with RMB910.8 million in fiscal year 2017.
The increase was primarily due to the addition of online store
operational staff and an increase in promotional and marketing
expenses.
- Technology and content
expenses were RMB269.0 million (US$39.1
million), compared with RMB140.7 million in fiscal year 2017.
The increase was primarily due to increased investments in
innovation and productization, and recruitment of additional
technology-focused staff.
- General and administrative
expenses were RMB154.8 million (US$22.5
million), compared with RMB116.6 million in fiscal year 2017.
The increase was primarily due to an increase in administrative,
corporate strategy, and business planning staff.
Income from operations was RMB355.8 million
(US$51.7 million), compared with RMB256.3 million in 2017.
Operating margin was 6.6%, compared with 6.2% last year.
Non-GAAP income from operations was RMB433.2
million (US$63.0 million), compared with RMB315.3 million in 2017.
Non-GAAP operating margin was 8.0%, compared with 7.6% last
year.
Net income attributable to ordinary
shareholders of Baozun Inc. was RMB269.7 million (US$39.2 million),
an increase of 29.1% from RMB208.9 million in fiscal year 2017.
Basic and diluted net income attributable to ordinary shareholders
of Baozun Inc. per ADS were RMB4.76 (US$0.69) and RMB4.51
(US$0.66), respectively, compared with basic and diluted net income
attributable to ordinary shareholders of Baozun Inc. per ADS of
RMB3.87 and RMB3.56, respectively, for fiscal year 2017.
Non-GAAP net income attributable to ordinary
shareholders of Baozun Inc. was RMB346.2 million (US$50.3 million),
an increase of 29.5% from RMB267.4 million in fiscal year
2017. Basic and diluted non-GAAP net income attributable to
ordinary shareholders of Baozun Inc. per ADS were RMB6.11 (US$0.89)
and RMB5.79 (US$0.84), respectively, compared with basic and
diluted non-GAAP net income attributable to ordinary shareholders
of Baozun Inc. per ADS of RMB4.95 and RMB4.55, respectively, for
fiscal year 2017.
As of December 31, 2018, the Company had RMB513.9 million
(US$74.7 million) in cash, cash equivalents and short-term
investment, a decrease from RMB557.4 million as of
December 31, 2017.
Business Outlook
Based on current macroeconomic and operating conditions, for the
first quarter of 2019, the Company expects total net revenues to be
between RMB1.25 billion and RMB1.30 billion, with services revenue
to increase by over 45% on a year-over-year basis.
Conference Call
The Company will host a conference call to discuss the earnings
at 7:30 a.m. Eastern Time on Wednesday, March 6, 2019 (8:30 p.m.
Beijing time on the same day).
Dial-in numbers for the live conference call are as follows:
International |
|
+852-3027-6500 |
U.S. Toll Free |
|
+1-855-824-5644 |
Mainland China Toll Free |
|
8009-880-563 |
Hong Kong |
|
3027-6500 |
Passcode: |
|
59357923# |
A telephone replay of the call will be available after the
conclusion of the conference call through 11:59 p.m. Hong Kong
Time, March 13, 2019.
Dial-in numbers for the replay are as follows:
International Dial-in |
|
+852-3027-6520 |
U.S. Toll Free |
|
+1 646-982-0473 |
Passcode: |
|
319313381# |
A live and archived webcast of the conference call will be
available on the Investor Relations section of Baozun’s website at
http://ir.baozun.com/.
Use of Non-GAAP Financial Measures
The Company uses 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. Non-GAAP
income/(loss) from operations is income/(loss) from operations
excluding the impact of share-based compensation expenses and
amortization of intangible assets resulting from business
acquisition. Non-GAAP operating margin is non-GAAP income from
operations as a percentage of total net revenues. Non-GAAP net
income/(loss) is net income/(loss) excluding the impact of
share-based compensation expenses and amortization of intangible
assets resulting from business acquisition. Non-GAAP net margin is
non-GAAP net income as a percentage of total net revenues.
Non-GAAP net income (loss) attributable to ordinary shareholders of
Baozun Inc. is net income (loss) attributable to ordinary
shareholders of Baozun Inc. excluding the impact of share-based
compensation expenses and amortization of intangible assets
resulting from business acquisition. Non-GAAP net income (loss)
attributable to ordinary shareholders of Baozun Inc. per ADS is
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 and non-GAAP net
income/(loss) enable the Company’s management to assess the
Company’s financial and operating results without considering the
impact of share-based compensation expenses and amortization of
intangible assets resulting from business acquisition. The Company
also believes that the use of the non-GAAP measures facilitates
investor assessment of the Company’s financial and operating
performance.
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. Share-based compensation expenses
and amortization of intangible assets resulting from business
acquisition have been and may continue to be incurred in the
Company’s business and is not reflected in the presentation of
non-GAAP income/(loss) from operations and non-GAAP net
income/(loss). Further, the non-GAAP measures may differ from the
non-GAAP measures used by other companies, including peer
companies, and therefore their comparability may be limited. 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. 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 news release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in 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," "target,"
"going forward," "outlook" and similar statements. For example, our
statement about our expectations for Company performance in the
first quarter and fiscal year 2019 is a forward-looking statement
and is inherently uncertain. Such statements are based upon
management's current expectations and current market and operating
conditions, and relate to events that involve known or unknown
risks, uncertainties and other factors, all of which are difficult
to predict and many of which are beyond the Company's control,
which may cause the Company's actual results, performance or
achievements to differ materially from those in the forward-looking
statements. For example, the level of consumer economic activity in
China could impact our sales results in unpredicted ways. Further
information regarding these and other risks, uncertainties or
factors is included in the Company's filings with the U.S.
Securities and Exchange Commission. The Company does not undertake
any obligation to update any forward-looking statement as a result
of new information, future events or otherwise, except as required
under law.
About Baozun Inc.
Baozun is the leading brand e-commerce service partner that
helps brands execute their e-commerce strategies in China by
selling their goods directly to customers online or by providing
services to assist with their e-commerce operations. The Company's
integrated end-to-end brand e-commerce capabilities encompass all
aspects of the e-commerce value chain, covering IT solutions, store
operations, digital marketing, customer services, warehousing and
fulfillment.
For more information, please visit http://ir.baozun.com
For investor and media inquiries, please contact:
Baozun Inc.Ms. Coco Shiir@baozun.com
ChristensenIn ChinaMr. Christian ArnellPhone:
+86-10-5900-1548E-mail: carnell@christensenir.com
In U.S.Ms. Linda BergkampPhone: +1-480-614-3004Email:
lbergkamp@ChristensenIR.com
Baozun Inc. |
UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS |
(In thousands) |
|
|
|
|
|
|
|
|
|
As of |
|
|
December 31,
2017 |
|
December 31,
2018 |
|
December 31,
2018 |
|
|
RMB |
|
RMB |
|
US$ |
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
244,809 |
|
457,340 |
|
66,517 |
Restricted cash |
|
48,848 |
|
125,515 |
|
18,255 |
Short-term investment |
|
312,614 |
|
56,535 |
|
8,223 |
Accounts
receivable, net9 |
|
1,085,669 |
|
1,547,631 |
|
225,094 |
Inventories1 |
|
382,028 |
|
650,348 |
|
94,589 |
Advances to suppliers |
|
88,881 |
|
166,076 |
|
24,155 |
Prepayments and other current assets1 |
|
214,636 |
|
286,149 |
|
41,619 |
Amounts due from related parties |
|
88,795 |
|
32,270 |
|
4,693 |
Total current assets |
|
2,466,280 |
|
3,321,864 |
|
483,145 |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Investments in equity investees |
|
24,268 |
|
33,974 |
|
4,941 |
Property and equipment, net |
|
330,924 |
|
402,740 |
|
58,576 |
Intangible assets, net |
|
66,150 |
|
132,393 |
|
19,256 |
Land
use right, net |
|
44,618 |
|
43,593 |
|
6,340 |
Goodwill |
|
13,158 |
|
13,158 |
|
1,914 |
Other non-current assets |
|
18,043 |
|
30,021 |
|
4,366 |
Deferred tax assets |
|
15,528 |
|
38,081 |
|
5,539 |
Total non-current
assets |
|
512,689 |
|
693,960 |
|
100,932 |
|
|
|
|
|
|
|
Total assets |
|
2,978,969 |
|
4,015,824 |
|
584,077 |
Baozun Inc. |
UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS |
(In thousands, except for share
and per share data) |
|
|
|
|
|
|
|
|
|
As of |
|
|
December
31,2017 |
|
December 31,
2018 |
|
December 31,
2018 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Short-term loan |
|
172,000 |
|
|
436,200 |
|
63,443 |
Accounts payable |
|
583,532 |
|
|
886,340 |
|
128,912 |
Notes payable |
|
48,000 |
|
|
26,770 |
|
3,894 |
Income tax payables |
|
30,420 |
|
|
62,764 |
|
9,129 |
Accrued expenses and other current liabilities1 |
|
314,870 |
|
|
322,668 |
|
46,930 |
Amounts due to related parties |
|
- |
|
|
13,994 |
|
2,035 |
Total current liabilities |
|
1,148,822 |
|
|
1,748,736 |
|
254,343 |
|
|
|
|
|
|
|
Long-term loan |
|
- |
|
|
68,753 |
|
10,000 |
Deferred tax liability |
|
3,710 |
|
|
3,319 |
|
483 |
Total non-current liabilities |
|
3,710 |
|
|
72,072 |
|
10,483 |
|
|
|
|
|
|
|
Total liabilities |
|
1,152,532 |
|
|
1,820,808 |
|
264,826 |
|
|
|
|
|
|
|
Baozun Inc. shareholders’ equity: |
|
|
|
|
|
|
Class A ordinary shares (US$0.0001 par value;
470,000,000 shares authorized, 152,824,659 and 159,247,873
shares issued and outstanding as of December 31, 2017 and 2018,
respectively) |
|
95 |
|
|
98 |
|
14 |
Class B ordinary shares (US$0.0001 par value;
30,000,000 shares authorized, 13,300,738 shares issued and
outstanding as of December 31, 2017 and 2018, respectively) |
|
8 |
|
|
8 |
|
1 |
Additional paid-in capital |
|
1,823,925 |
|
|
1,903,503 |
|
276,853 |
Accumulated profit (deficit) |
|
(25,000 |
) |
|
244,712 |
|
35,592 |
Accumulated other comprehensive income |
|
9,995 |
|
|
29,222 |
|
4,250 |
|
|
|
|
|
|
|
Total Baozun Inc. shareholders' equity |
|
1,809,023 |
|
|
2,177,543 |
|
316,710 |
|
|
|
|
|
|
|
Noncontrolling interests |
|
17,414 |
|
|
17,473 |
|
2,541 |
Total equity |
|
1,826,437 |
|
|
2,195,016 |
|
319,251 |
|
|
|
|
|
|
Total liabilities
and shareholders'
equity |
2,978,969 |
|
|
4,015,824 |
|
584,077 |
Baozun
Inc.UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In
thousands, except for share and per share data and per ADS
data)
|
|
|
For the three months ended
December
31, |
For the year ended December 31, |
|
|
2017 |
2018 |
2017 |
2018 |
|
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
Product sales |
|
782,798 |
975,395 |
141,865 |
2,257,632 |
2,516,862 |
366,062 |
Services |
|
782,560 |
1,226,552 |
178,395 |
1,891,176 |
2,876,175 |
418,322 |
Total net revenues |
|
1,565,358 |
2,201,947 |
320,260 |
4,148,808 |
5,393,037 |
784,384 |
|
|
|
|
|
|
|
|
Operating expenses (1) |
|
|
|
|
|
|
|
Cost
of products |
|
(630,276) |
(790,131) |
(114,920) |
(1,917,467) |
(2,034,852) |
(295,957) |
Fulfillment |
|
(339,530) |
(511,967) |
(74,463) |
(818,173) |
(1,262,302) |
(183,594) |
Sales and marketing (2) |
|
(343,007) |
(543,658) |
(79,071) |
(910,843) |
(1,338,970) |
(194,745) |
Technology and content |
|
(44,929) |
(83,995) |
(12,217) |
(140,689) |
(268,973) |
(39,121) |
General
and administrative |
|
(33,033) |
(42,794) |
(6,224) |
(116,554) |
(154,845) |
(22,521) |
Other
operating income (loss), net |
|
1,067 |
370 |
54 |
11,250 |
22,678 |
3,298 |
Total operating expenses |
|
(1,389,708) |
(1,972,175) |
(286,841) |
(3,892,476) |
(5,037,264) |
(732,640) |
Income from operations |
|
175,650 |
229,772 |
33,419 |
256,332 |
355,773 |
51,744 |
Other income (expenses) |
|
|
|
|
|
|
|
Interest income |
|
3,545 |
1,415 |
206 |
13,350 |
8,017 |
1,166 |
Interest expense |
|
(3,497) |
(4,897) |
(712) |
(4,252) |
(13,058) |
(1,899) |
Gain
on disposal of investment |
|
4,664 |
- |
- |
5,464 |
- |
- |
Impairment loss of investments |
|
(6,227) |
(7,497) |
(1,090) |
(6,227) |
(9,021) |
(1,312) |
Exchange gain (loss) |
|
928 |
1,279 |
186 |
(21) |
(5,991) |
(871) |
Income before
income tax |
|
175,063 |
220,072 |
32,009 |
264,646 |
335,720 |
48,828 |
Income tax expense (3) |
|
(28,586) |
(31,936) |
(4,645) |
(54,251) |
(64,953) |
(9,447) |
Share of income (loss) in equity method investment, net of tax of
nil |
|
17 |
312 |
45 |
(1,265) |
(996) |
(145) |
Net income |
|
146,494 |
188,448 |
27,409 |
209,130 |
269,771 |
39,236 |
Net
(income) loss attributable to noncontrolling interests |
|
66 |
(205) |
(30) |
(264) |
(59) |
(9) |
Net income attributable to ordinary shareholders of Baozun
Inc. |
|
146,560 |
188,243 |
27,379 |
208,866 |
269,712 |
39,227 |
|
|
|
|
|
|
|
|
Net income per share attributable to ordinary shareholders
of Baozun Inc.: |
|
|
|
|
|
|
|
Basic |
|
0.89 |
1.10 |
0.16 |
1.29 |
1.59 |
0.23 |
Diluted |
|
0.83 |
1.06 |
0.15 |
1.19 |
1.50 |
0.22 |
Net income per ADS attributable to ordinary shareholders of
Baozun Inc.: |
|
|
|
|
|
|
|
Basic |
|
2.67 |
3.29 |
0.48 |
3.87 |
4.76 |
0.69 |
Diluted |
|
2.48 |
3.17 |
0.46 |
3.56 |
4.51 |
0.66 |
Weighted average shares used in calculating net income per
ordinary share |
|
|
|
|
|
|
|
Basic |
|
164,471,581 |
171,399,524 |
171,399,524 |
162,113,815 |
169,884,906 |
169,884,906 |
Diluted |
|
177,081,330 |
178,026,070 |
178,026,070 |
176,115,049 |
179,327,029 |
179,327,029 |
|
|
|
|
|
|
|
|
Net income |
|
146,494 |
188,448 |
27,409 |
209,130 |
269,771 |
39,236 |
Other
comprehensive income, net of tax of nil: |
|
|
|
|
|
|
|
Foreign
currency translation adjustment |
|
(10,317) |
1,022 |
149 |
(34,353) |
19,227 |
2,796 |
Comprehensive income |
|
136,177 |
189,470 |
27,558 |
174,777 |
288,998 |
42,032 |
(1) Share-based compensation expenses are allocated in operating
expenses items as follows:
|
|
For the three months ended
December
31, |
|
For the year ended December 31, |
|
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfillment |
|
720 |
|
2,174 |
|
316 |
|
2,904 |
|
5,831 |
|
848 |
Sales and marketing |
|
5,120 |
|
6,509 |
|
947 |
|
20,363 |
|
28,346 |
|
4,123 |
Technology and content |
|
2,818 |
|
2,367 |
|
344 |
|
13,822 |
|
13,445 |
|
1,956 |
General and administrative |
|
5,212 |
|
5,853 |
|
851 |
|
21,142 |
|
28,240 |
|
4,107 |
|
|
13,870 |
|
16,903 |
|
2,458 |
|
58,231 |
|
75,862 |
|
11,034 |
(2) Including amortization of intangible assets
resulting from business acquisition, which amounted to RMB0.4
million for both the three months period ended December 31, 2017
and 2018. Including amortization of intangible assets resulting
from business acquisition, which amounted to RMB0.8 million and
RMB1.6 million for the year ended December 31, 2017 and 2018,
respectively.
(3) Including income tax benefits of RMB0.1
million related to the reversal of deferred tax liabilities, which
was recognized on business acquisition for both the three months
period ended December 31, 2017 and 2018. Including income tax
benefits of RMB0.2 million and RMB0.4 million related to the
reversal of deferred tax liabilities, which was recognized on
business acquisition for the year ended December 31, 2017 and 2018,
respectively.
Baozun
Inc.Reconciliations of GAAP and Non-GAAP
Results(in thousands, except for share and per ADS
data)
|
|
For the three months ended
December
31, |
|
For the year ended December 31, |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
175,650 |
|
|
229,772 |
|
|
33,419 |
|
|
256,332 |
|
|
355,773 |
|
|
51,744 |
|
Add:
Share-based compensation expenses |
|
13,870 |
|
|
16,903 |
|
|
2,458 |
|
|
58,231 |
|
|
75,862 |
|
|
11,034 |
|
Amortization
of intangible assets resulting from business acquisition |
|
391 |
|
|
391 |
|
|
57 |
|
|
782 |
|
|
1,564 |
|
|
228 |
|
Non-GAAP income
from operations |
|
189,911 |
|
|
247,066 |
|
|
35,934 |
|
|
315,345 |
|
|
433,199 |
|
|
63,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
146,494 |
|
|
188,448 |
|
|
27,409 |
|
|
209,130 |
|
|
269,771 |
|
|
39,236 |
|
Add:
Share-based compensation expenses |
|
13,870 |
|
|
16,903 |
|
|
2,458 |
|
|
58,231 |
|
|
75,862 |
|
|
11,034 |
|
Amortization
of intangible assets resulting from business acquisition |
|
391 |
|
|
391 |
|
|
57 |
|
|
782 |
|
|
1,564 |
|
|
228 |
|
Less: Tax
effect of amortization of intangible assets resulting from business
acquisition |
|
(98 |
) |
|
(98 |
) |
|
(14 |
) |
|
(196 |
) |
|
(392 |
) |
|
(57 |
) |
Non-GAAP net
income |
|
160,657 |
|
|
205,644 |
|
|
29,910 |
|
|
267,947 |
|
|
346,805 |
|
|
50,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
ordinary shareholders of Baozun Inc. |
|
146,560 |
|
|
188,243 |
|
|
27,379 |
|
|
208,866 |
|
|
269,712 |
|
|
39,227 |
|
Add:
Share-based compensation expenses |
|
13,870 |
|
|
16,903 |
|
|
2,458 |
|
|
58,231 |
|
|
75,862 |
|
|
11,034 |
|
Amortization
of intangible assets resulting from business acquisition |
|
199 |
|
|
199 |
|
|
29 |
|
|
398 |
|
|
796 |
|
|
116 |
|
Less: Tax
effect of amortization of intangible assets resulting from business
acquisition |
|
(50 |
) |
|
(50 |
) |
|
(7 |
) |
|
(100 |
) |
|
(200 |
) |
|
(29 |
) |
Non-GAAP
net income attributable to ordinary
shareholders of Baozun Inc. |
|
160,579 |
|
|
205,295 |
|
|
29,859 |
|
|
267,395 |
|
|
346,170 |
|
|
50,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
net income attributable to
ordinary shareholders of Baozun Inc. per ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
2.93 |
|
|
3.59 |
|
|
0.52 |
|
|
4.95 |
|
|
6.11 |
|
|
0.89 |
|
Diluted |
|
2.72 |
|
|
3.46 |
|
|
0.50 |
|
|
4.55 |
|
|
5.79 |
|
|
0.84 |
|
Weighted average
shares used in calculating net income per ordinary
share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
164,471,581 |
|
|
171,399,524 |
|
|
171,399,524 |
|
|
162,113,815 |
|
|
169,884,906 |
|
|
169,884,906 |
|
Diluted |
|
177,081,330 |
|
|
178,026,070 |
|
|
178,026,070 |
|
|
176,115,049 |
|
|
179,327,029 |
|
|
179,327,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 RMB6.8755 to US$1.00,
the noon buying rate in effect on December 31, 2018 as set forth in
the H.10 Statistical Release of the Federal Reserve Board.
2 Non-GAAP income from operations is a non-GAAP financial
measure, which is defined as income from operations excluding
share-based compensation expenses and amortization of intangible
assets resulting from business acquisition.
3 Non-GAAP net income attributable to ordinary shareholders of
Baozun Inc. is a non-GAAP financial measure, which is defined as
net income attributable to ordinary shareholders of Baozun Inc.
excluding share-based compensation expenses and amortization of
intangible assets resulting from business acquisition.
4 Each ADS represents three Class A ordinary shares.
5 Basic and diluted non-GAAP net income attributable to ordinary
shareholders of Baozun Inc. per ADS are non-GAAP financial
measures, which are defined as non-GAAP net income attributable to
ordinary shareholders of Baozun Inc. divided by weighted average
number of shares used in calculating basic and diluted net income
per ordinary share multiplied by three, respectively.
6 GMV includes value added tax and excludes (i) shipping
charges, (ii) surcharges and other taxes, (iii) value of the goods
that are returned and (iv) deposits for purchases that have not
been settled.
7 Distribution GMV refers to the GMV under the distribution
business model.
8 Non-distribution GMV refers to the GMV under the service fee
business model and the consignment business model.
9 Certain reclassifications in accounts receivable,
inventories, prepayments and other current assets and accrued
expenses and other current liabilities as of December 31, 2017 were
retrospectively adjusted as a result of the adoption of a new
revenue accounting standard effective on January 1, 2018.
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