SHANGHAI, Nov. 21,
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 third quarter ended
September 30, 2024.
Mr. Vincent Qiu, Chairman and
Chief Executive Officer of Baozun, commented, "I'm pleased that
Baozun is advancing our strategic vision, with robust topline
growth driven by transformative initiatives. In the third quarter
of 2024, Baozun Group achieved a 12.8% year-over-year revenue
increase, powered by solid performances from both Baozun E-Commerce
(BEC) and Baozun Brand Management (BBM). For the first time, BBM
delivered topline growth in its underlying China business for Gap, underscoring our brand
management capability and localization of brand appeal. The third
quarter has been a pivotal quarter of growth and progress across
our segments, reflecting the resilience and adaptability of our
strategies."
Ms. Catherine Zhu, Chief
Financial Officer of Baozun Inc., commented, "Baozun delivered
double-digit topline growth in the third quarter of 2024, with
E-Commerce revenue up 13.9% and Brand Management revenue increasing
by 10.3% year-over-year. Notably, BEC product sales resumed growth
following twelve quarters of contraction. Furthermore, our
proactive positioning in creative content commerce continued to
drive triple-digit annual revenue growth on Douyin, highlighting
our agility and leadership in digital commerce. BBM remained
focused on strengthening our localization efforts and building a
sustainable foundation. With confidence in our long-term growth, we
continued to execute our share repurchase program with US$9.9 million worth of ADSs repurchased
year-to-date."
Third Quarter 2024 Financial Highlights
- Total net revenues were RMB2,057.0
million (US$[1]293.1 million), representing an
increase of 12.8% compared with RMB1,823.6
million for the same period of 2023.
- Loss from operations was RMB114.5
million (US$16.3 million), an
improvement from RMB135.7 million in
the same quarter of last year, primarily due to a reduction in
losses from E-Commerce. Operating margin was negative 5.6%, an
improvement from negative 7.4% for the same period of 2023.
- Non-GAAP loss from operation[2] was RMB85.2 million (US$12.1
million), an improvement from RMB90.4
million in the same quarter of last year, primarily due to a
reduction in losses from E-Commerce. Non-GAAP operating margin was
negative 4.1%, improved from negative 5.0% for the same period of
2023.
- Adjusted operating loss of E-Commerce[3] was
RMB29.8 million (US$4.2 million), an improvement from RMB40.3 million for the same period of 2023.
- Adjusted operating loss of Brand Management[3] was
RMB55.3 million (US$7.9 million), compared with RMB50.1 million for the same period of 2023.
- Net loss attributable to ordinary shareholders of Baozun Inc.
was RMB88.1 million (US$12.6 million), an improvement from
RMB126.4 million for the same period
of 2023.
- Non-GAAP net loss attributable to ordinary shareholders of
Baozun Inc.[4] was RMB66.8
million (US$9.5 million), an
improvement from RMB76.4 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 RMB1.48 (US$0.21),
compared with both RMB2.12 for the
same period of 2023.
- Diluted non-GAAP net loss attributable to ordinary shareholders
of Baozun Inc. per ADS[6] was RMB1.12 (US$0.16),
compared with RMB1.28 for the same
period of 2023.
- Cash and cash equivalents, restricted cash, and short-term
investments totaled RMB2,655.2
million (US$378.4 million), as
of September 30, 2024, compared with
RMB3,072.8 million as of December 31, 2023.
Reconciliations of GAAP measures to non-GAAP measures presented
above are included at the end of this results announcement.
Adjusted operating profits/losses by segment are included in the
Segments data of Segment Information.
[1] This
announcement contains translations of certain Renminbi (RMB)
amounts into U.S. dollars (US$) at a specified rate solely for the
convenience of the reader. Unless otherwise noted, the translation
of RMB into US$ has been made at RMB7.0176 to US$1.00, the noon
buying rate in effect on September 30, 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] 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 diluted net income
(loss) per ordinary share multiplied by three,
respectively.
|
Business Highlights
Baozun e-Commerce, or "BEC"
BEC encompasses our China
e-commerce businesses, including brand store operations, customer
services, and value-added services in logistics and supply chain
management, IT and digital marketing. During the quarter, total
revenue from BEC achieved a 13.9% year-over-year increase, with
double-digit growth in both product sales and service offerings
within Baozun E-Commerce. The growth in product sales was mainly
driven by strong performance in the Beauty and Cosmetics
categories, while service growth was mainly attributed to higher
demand for digital marketing and IT solutions.
Omni-channel expansion remains a key theme for our brand
partners. By the end of the third quarter of 2024, approximately
48.2% 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, our Brand Management business line includes the Gap
and Hunter brands. During the quarter, product sales revenue for
Brand Management totaled RMB329.8
million (US$47.0 million),
with a gross profit margin of 52.8%. By the end of the third
quarter of 2024, Gap and Hunter brands have 146 offline stores
under our management.
Third Quarter 2024 Financial Results
Total net revenues were RMB2,057.0
million (US$293.1 million), an
increase of 12.8% from RMB1,823.6
million in the same quarter of last year. The increase in
total net revenues was mainly driven by a 14.2% increase in service
revenue.
Total product sales revenue was RMB783.1 million (US$111.6
million), compared with RMB707.9
million in the same quarter of last year, of which:
- Product sales revenue of E-Commerce was RMB454.0 million (US$64.7
million), an increase of 10.3% from RMB411.6 million in the same quarter of last
year. The increase was primarily attributable to introduction of
high-quality new distribution businesses, partially offset by the
Company's optimization of its product portfolio in distribution
model, especially in the electronics and fast-moving consumer goods
sectors.
The following table sets forth a breakdown of product sales
revenues of E-Commerce by key categories[7] for the
periods indicated:
|
|
For the three months
ended September 30,
|
|
|
2023
|
|
2024
|
|
|
RMB
|
|
% of
Net
Revenues
|
|
RMB
|
|
US$
|
|
% of
Net
Revenues
|
|
YoY
Change
|
|
(In millions, except
for percentage)
|
Product Sales
of E-Commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
Appliances
|
|
179.5
|
|
11 %
|
|
177.1
|
|
25.2
|
|
9 %
|
|
-1 %
|
Beauty and
cosmetics
|
|
76.3
|
|
4 %
|
|
89.7
|
|
12.8
|
|
4 %
|
|
18 %
|
Others
|
|
155.8
|
|
8 %
|
|
187.2
|
|
26.7
|
|
9 %
|
|
20 %
|
Total net revenues
from product
sales of E-Commerce
|
|
411.6
|
|
23 %
|
|
454.0
|
|
64.7
|
|
22 %
|
|
10 %
|
- Product sales revenue of Brand Management was
RMB329.8 million (US$47.0 million), an increase of 11.3% from
RMB296.3 million in the same quarter
of last year. The increase was primarily driven by sales increase
from the Gap brand, as the Company continued to optimize its
merchandising plans and enhance customer experiences.
Services revenue was RMB1,273.9
million (US$181.5 million), an
increase of 14.2% from RMB1,115.8
million in the same quarter of last year. The increase was
primarily attributable to a 40.0% year-over-year growth in digital
marketing and IT solutions, driven by content creation and
technology monetization.
The following table sets forth a breakdown of services revenues
by service type for the periods indicated:
|
|
For the three months
ended September 30,
|
|
|
2023
|
|
2024
|
|
|
RMB
|
|
% of
Net
Revenues
|
|
RMB
|
|
US$
|
|
% of
Net
Revenues
|
|
YoY
Change
|
|
(In millions, except
for percentage)
|
Services revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Online store
operations
|
|
340.7
|
|
19 %
|
|
362.6
|
|
51.6
|
|
18 %
|
|
6 %
|
Warehousing and
fulfillment
|
|
431.7
|
|
23 %
|
|
433.8
|
|
61.8
|
|
21 %
|
|
0 %
|
Digital marketing and
IT
solutions
|
|
362.7
|
|
20 %
|
|
507.7
|
|
72.4
|
|
24 %
|
|
40 %
|
Inter-segment
eliminations[8]
|
|
(19.3)
|
|
-1 %
|
|
(30.2)
|
|
(4.3)
|
|
-1 %
|
|
56 %
|
Total net revenues
from services
|
|
1,115.8
|
|
61 %
|
|
1,273.9
|
|
181.5
|
|
62 %
|
|
14 %
|
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 September 30,
|
|
|
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
|
|
248.4
|
|
14 %
|
|
275.7
|
|
39.2
|
|
13 %
|
|
11 %
|
-
Luxury
|
|
86.3
|
|
5 %
|
|
86.8
|
|
12.3
|
|
4 %
|
|
1 %
|
-
Sportswear
|
|
101.3
|
|
6 %
|
|
100.7
|
|
14.3
|
|
5 %
|
|
-1 %
|
-
Other apparel
|
|
60.8
|
|
3 %
|
|
88.2
|
|
12.6
|
|
4 %
|
|
45 %
|
Others
|
|
92.3
|
|
5 %
|
|
86.9
|
|
12.4
|
|
5 %
|
|
-6 %
|
Inter-segment
eliminations[10]
|
|
(11.2)
|
|
-1 %
|
|
(20.5)
|
|
(2.9)
|
|
-1 %
|
|
83 %
|
Total net revenues
from online
store operations in services
|
|
329.5
|
|
18 %
|
|
342.1
|
|
48.7
|
|
17 %
|
|
4 %
|
[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.
|
[8] The
inter-segment eliminations mainly consist of revenues from online
store operations, warehousing and fulfillment, and 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 expenses were RMB2,171.5 million (US$309.4 million), compared with RMB1,959.4 million in the same quarter of last
year.
- Cost of products was RMB563.1
million (US$80.2 million),
compared with RMB491.2 million in the
same quarter of last year. The increase was primarily due to an
increase in product sales volume.
- Fulfillment expenses were RMB519.4 million (US$74.0
million), compared with RMB513.0
million in the same quarter of last year. Fulfillment
expenses were remain flat, which is in line with the warehousing
and fulfillment service revenue.
- Sales and marketing expenses were RMB800.6 million (US$114.1
million), compared with RMB637.5
million in the same quarter of last year. The increase was
mainly due to higher revenue contributions from digital marketing
services for BEC, as well as increased marketing activities and
offline stores for BBM during the quarter.
- Technology and content expenses were RMB140.7 million (US$20.1
million), compared with RMB120.4
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 RMB176.6 million (US$25.2
million), compared with RMB214.5
million in the same quarter of last year. The decrease was
primarily due to the Company's cost control initiatives and
efficiency improvements.
Loss from operations was RMB114.5
million (US$16.3million), an
improvement from RMB135.7 million in
the same quarter of last year. The operating margin
was negative 5.6%, an improvement from negative 7.4% in the
same quarter of last year.
Non-GAAP loss from operations was RMB85.2 million (US$12.1
million), an improvement from RMB90.4
million in the same quarter of last year. The improvement
was mainly due to the narrowed loss in the E-Commerce business.
Non-GAAP operating margin was negative 4.1%, an improvement from
negative 5.0% in the same quarter of last year.
Adjusted operating loss of E-Commerce was RMB29.8 million (US$4.2
million), an improvement from RMB40.3
million in the same quarter of last year. Adjusted
operating loss of Brand Management was RMB55.3 million (US$7.9
million), compared with RMB50.1
million in the same quarter of last year.
Unrealized investment gain was RMB3.9 million (US$0.5
million), compared with an unrealized investment loss of
RMB7.8 million in the same quarter of
last year. The unrealized investment gain of this quarter was
mainly related to the increase in the trading price of iClick
Interactive Asia Group Limited, or iClick Interactive, a public
company listed on the Nasdaq Global Market that the Company
invested in January 2021.
Fair value change on financial instruments was a loss of
RMB17.0 million (US$2.4million), compared with nil in the same
quarter of last year. The fair value change on financial
instruments is primarily due to the losses recognized related to
the financial instruments the Company invested in the second
quarter of 2024.
Exchange gain was RMB11.9
million (US$1.7 million), due
to exchange rate fluctuation between Hong
Kong dollars and Japanese Yen in the quarter ended
September 30, 2024, compared to net
exchange loss of RMB1.3 million in
the same quarter last year.
Net loss attributable to ordinary shareholders of
Baozun Inc. was RMB88.1 million
(US$12.6 million), compared with
RMB126.4 million in the same quarter
of last year.
Basic and diluted net loss attributable to ordinary
shareholders of Baozun Inc. per ADS were both RMB1.48 (US$0.21),
compared with both RMB2.12 for the
same period of 2023.
Non-GAAP net loss attributable to ordinary
shareholders of Baozun Inc. was RMB66.8
million (US$9.5 million),
compared with RMB76.4 million in the
same quarter of last year.
Diluted non-GAAP net loss attributable to ordinary
shareholders of Baozun Inc. per ADS were RMB1.12 (US$0.16),
compared with RMB1.28 for the same
period of 2023.
Segment Information
(a) Description of segments
Following the acquisition of Gap Shanghai in February 2023, 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 September 30, 2023 and 2024, with prior periods'
segment information retrospectively recast to conform to current
period presentation:
|
|
For the three months
ended September 30,
|
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
Net
revenues:
|
|
|
|
|
E-Commerce
|
|
1,543,276
|
|
1,757,320
|
Brand
Management
|
|
299,645
|
|
330,605
|
Inter-segment
eliminations *
|
|
(19,279)
|
|
(30,905)
|
Total consolidated
net revenues
|
|
1,823,642
|
|
2,057,020
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Operating Losses **:
|
|
|
|
|
E-Commerce
|
|
(40,300)
|
|
(29,781)
|
Brand
Management
|
|
(50,091)
|
|
(55,331)
|
Inter-segment
eliminations *
|
|
-
|
|
(51)
|
Total Adjusted
Operating Losses
|
|
(90,391)
|
|
(85,163)
|
|
|
|
|
|
Unallocated
expenses:
|
|
|
|
|
Share-based
compensation expenses
|
|
(29,415)
|
|
(19,628)
|
Amortization of
intangible assets resulting from business
acquisition
|
|
(7,911)
|
|
(9,529)
|
Cancellation fees of
repurchased ADSs
|
|
-
|
|
(162)
|
Acquisition-related
expenses
|
|
(7,995)
|
|
-
|
Total other
income
|
|
4,198
|
|
4,596
|
Loss before income tax and
share of income (loss) in equity method
investment
|
|
(131,514)
|
|
(109,886)
|
|
*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, and cancellation fees of
repurchased ADSs.
|
Update in Share Repurchase Programs
On January 24, 2024, the Company's
board of directors (the "Board") 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. As of November 21, 2024,
the Company repurchased approximately 3.6 million of ADSs for
approximately US$9.9 million under
its share repurchase program through the open market. The remaining
amount of Board authorization for our share repurchase program,
which is effective through January
2025, was US$10.1 million as
of November 21, 2024.
Conference Call
The Company will host a conference call to discuss the earnings
at 6:30 a.m. Eastern Time on
Thursday, November 21, 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:
5542701
A replay of the conference call may be accessible through
November 28, 2024 by dialing the
following numbers:
United
States:
1-877-344-7529
International:
1-412-317-0088
Canada:
855-669-9658
Replay Access
Code:
8102663
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
diluted 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 diluted
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 diluted 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 diluted 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 diluted
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
|
|
September
30,
2024
|
|
September
30,
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,149,531
|
|
1,066,670
|
|
151,999
|
Restricted
cash
|
|
202,764
|
|
325,603
|
|
46,398
|
Short-term
investments
|
|
720,522
|
|
1,262,966
|
|
179,971
|
Accounts receivable,
net
|
|
2,184,729
|
|
1,860,841
|
|
265,168
|
Inventories
|
|
1,045,116
|
|
1,388,312
|
|
197,833
|
Advances to
suppliers
|
|
311,111
|
|
360,448
|
|
51,363
|
Prepayments and other
current assets
|
|
590,350
|
|
696,139
|
|
99,199
|
Amounts due from
related parties
|
|
86,661
|
|
6,006
|
|
856
|
Total current
assets
|
|
7,290,784
|
|
6,966,985
|
|
992,787
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Long term
investments
|
|
359,129
|
|
366,182
|
|
52,181
|
Property and
equipment, net
|
|
851,151
|
|
821,363
|
|
117,043
|
Intangible assets,
net
|
|
306,420
|
|
349,889
|
|
49,859
|
Land use right,
net
|
|
38,464
|
|
37,695
|
|
5,371
|
Operating lease
right-of-use assets
|
|
1,070,120
|
|
832,004
|
|
118,560
|
Goodwill
|
|
312,464
|
|
369,333
|
|
52,630
|
Other non-current
assets
|
|
45,316
|
|
66,393
|
|
9,461
|
Deferred tax
assets
|
|
200,628
|
|
213,258
|
|
30,389
|
Total
non-current assets
|
|
3,183,692
|
|
3,056,117
|
|
435,494
|
|
|
|
|
|
|
|
Total
assets
|
|
10,474,476
|
|
10,023,102
|
|
1,428,281
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term
loan
|
|
1,115,721
|
|
1,101,172
|
|
156,916
|
Accounts
payable
|
|
563,562
|
|
648,695
|
|
92,439
|
Notes
payable
|
|
506,629
|
|
515,866
|
|
73,510
|
Income tax
payables
|
|
18,768
|
|
-
|
|
-
|
Accrued expenses and
other current liabilities
|
|
1,188,179
|
|
1,028,470
|
|
146,556
|
Derivative
liabilities
|
|
-
|
|
6,063
|
|
864
|
Amounts due to related
parties
|
|
32,118
|
|
3,093
|
|
441
|
Current operating
lease liabilities
|
|
332,983
|
|
267,888
|
|
38,174
|
Total current
liabilities
|
|
3,757,960
|
|
3,571,247
|
|
508,900
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
24,966
|
|
34,585
|
|
4,928
|
Long-term operating
lease liabilities
|
|
799,096
|
|
631,252
|
|
89,953
|
Other non-current
liabilities
|
|
40,718
|
|
43,835
|
|
6,246
|
Total non-current
liabilities
|
|
864,780
|
|
709,672
|
|
101,127
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,622,740
|
|
4,280,919
|
|
610,027
|
|
|
|
Baozun
Inc.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except for share and per share data)
|
|
|
|
As of
|
|
|
December 31,
2023
|
|
September
30,
2024
|
|
September
30,
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
1,584,858
|
|
1,651,946
|
|
235,400
|
|
|
|
|
|
|
|
Baozun Inc.
shareholders' equity:
|
|
|
|
|
|
|
Class A ordinary
shares (US$0.0001 par
value; 470,000,000 shares authorized,
167,901,880 and 175,967,894 shares
issued, 167,901,880 and 171,385,456
shares outstanding, as of December 31,
2023, and September 30, 2024,
respectively)
|
|
93
|
|
95
|
|
14
|
Class B ordinary
shares (US$0.0001 par
value; 30,000,000 shares authorized,
13,300,738 shares issued and outstanding
as of December 31, 2023, and September
30, 2024)
|
|
8
|
|
8
|
|
1
|
Additional paid-in
capital
|
|
4,571,439
|
|
4,626,123
|
|
659,217
|
Treasury shares (nil
and 8,718,300 shares
as of December 31,2023 and September
30,2024, respectively)
|
|
-
|
|
(52,824)
|
|
(7,527)
|
Accumulated
deficit
|
|
(506,587)
|
|
(691,914)
|
|
(98,597)
|
Accumulated other
comprehensive
income
|
|
32,251
|
|
29,841
|
|
4,252
|
|
|
|
|
|
|
|
Total Baozun Inc.
shareholders' equity
|
|
4,097,204
|
|
3,911,329
|
|
557,360
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
169,674
|
|
178,908
|
|
25,494
|
|
|
|
|
|
|
|
Total
equity
|
|
4,266,878
|
|
4,090,237
|
|
582,854
|
|
|
|
|
|
|
|
Total liabilities, redeemable
non-
controlling interests and equity
|
|
10,474,476
|
|
10,023,102
|
|
1,428,281
|
Baozun Inc.
|
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
(In thousands,
except for share and per share data and per ADS
data)
|
|
|
|
For the three
months ended September 30,
|
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
Product sales
(1)
|
|
707,855
|
|
783,132
|
|
111,595
|
Services
|
|
1,115,787
|
|
1,273,888
|
|
181,529
|
Total net
revenues
|
|
1,823,642
|
|
2,057,020
|
|
293,124
|
|
|
|
|
|
|
|
Operating
expenses (2)
|
|
|
|
|
|
|
Cost of
products
|
|
(491,160)
|
|
(563,110)
|
|
(80,243)
|
Fulfillment(3)
|
|
(512,997)
|
|
(519,379)
|
|
(74,011)
|
Sales and
marketing (3)
|
|
(637,488)
|
|
(800,562)
|
|
(114,079)
|
Technology and
content(3)
|
|
(120,382)
|
|
(140,725)
|
|
(20,053)
|
General and
administrative(3)
|
|
(214,487)
|
|
(176,611)
|
|
(25,167)
|
Other operating
income, net
|
|
17,160
|
|
28,885
|
|
4,116
|
Total operating
expenses
|
|
(1,959,354)
|
|
(2,171,502)
|
|
(309,437)
|
Loss from operations
|
|
(135,712)
|
|
(114,482)
|
|
(16,313)
|
Other income
(expenses)
|
|
|
|
|
|
|
Interest
income
|
|
24,466
|
|
14,585
|
|
2,078
|
Interest
expense
|
|
(11,190)
|
|
(8,727)
|
|
(1,244)
|
Unrealized investment
(loss) gain
|
|
(7,805)
|
|
3,855
|
|
549
|
Exchange (loss)
gain
|
|
(1,273)
|
|
11,851
|
|
1,689
|
Fair value change on
financial instruments
|
|
-
|
|
(16,968)
|
|
(2,418)
|
Loss before income
tax and share of income (loss) in
equity
method investment
|
|
(131,514)
|
|
(109,886)
|
|
(15,659)
|
Income tax (expense)
benefit (4)
|
|
(1,946)
|
|
18,569
|
|
2,646
|
Share of income (loss)
in equity method investment,
net
of tax of nil
|
|
3,861
|
|
(1,938)
|
|
(276)
|
Net
loss
|
|
(129,599)
|
|
(93,255)
|
|
(13,289)
|
Net (income) loss
attributable to
noncontrolling
interests
|
|
(4,734)
|
|
10,193
|
|
1,452
|
Net loss (income)
attributable to
redeemable
noncontrolling interests
|
|
7,900
|
|
(5,008)
|
|
(714)
|
Net loss
attributable to ordinary shareholders of Baozun
Inc.
|
|
(126,433)
|
|
(88,070)
|
|
(12,551)
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary shareholders of
Baozun Inc.:
|
|
|
|
|
|
|
Basic
|
|
(0.71)
|
|
(0.49)
|
|
(0.07)
|
Diluted
|
|
(0.71)
|
|
(0.49)
|
|
(0.07)
|
Net loss per ADS
attributable to ordinary shareholders of
Baozun Inc.:
|
|
|
|
|
|
|
Basic
|
|
(2.12)
|
|
(1.48)
|
|
(0.21)
|
Diluted
|
|
(2.12)
|
|
(1.48)
|
|
(0.21)
|
Weighted average
shares used in calculating net loss per
ordinary share
|
|
|
|
|
|
|
Basic
|
|
178,755,231
|
|
178,284,818
|
|
178,284,818
|
Diluted
|
|
178,755,231
|
|
178,284,818
|
|
178,284,818
|
|
|
|
|
|
|
|
Net loss
|
|
(129,599)
|
|
(93,255)
|
|
(13,289)
|
Other comprehensive
income (loss), net of tax of nil:
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
8,630
|
|
(20,372)
|
|
(2,903)
|
Comprehensive loss
|
|
(120,969)
|
|
(113,627)
|
|
(16,192)
|
(1) Including product sales from E-Commerce and Brand
Management of RMB454.0 million and
RMB329.8 million for the three months
period ended September 30, 2024,
respectively, compared with product sales E-Commerce and Brand
Management of RMB411.6 million and
RMB296.3 million for the three months
period ended September 30, 2023.
(2) Share-based compensation expenses are allocated in operating
expenses items as follows:
|
|
For the three
months ended September 30,
|
|
|
|
2023
|
|
2024
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
Fulfillment
|
|
1,846
|
|
733
|
|
104
|
|
Sales and
marketing
|
|
10,394
|
|
4,617
|
|
658
|
|
Technology and
content
|
|
3,448
|
|
2,475
|
|
353
|
|
General and
administrative
|
|
13,727
|
|
11,803
|
|
1,682
|
|
|
|
29,415
|
|
19,628
|
|
2,797
|
|
(3) Including amortization of intangible assets resulting from
business acquisition, which amounted to RMB7.9 million and RMB9.5
million for the three months period ended September 30, 2023 and 2024, respectively.
(4) Including income tax benefits of RMB1.5 million and RMB2.0
million related to the reversal of deferred tax liabilities
for the three months period ended September
30, 2023 and 2024, respectively, which was recognized on
business acquisition.
Baozun Inc.
|
|
Reconciliations of GAAP and Non-GAAP
Results
|
|
(In thousands,
except for share and per ADS data)
|
|
|
|
|
|
For the three
months ended
September 30,
|
|
|
|
2023
|
|
2024
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(135,712)
|
|
(114,482)
|
|
(16,313)
|
|
Add: Share-based
compensation expenses
|
|
29,415
|
|
19,628
|
|
2,797
|
|
Amortization of
intangible assets resulting from
business acquisition
|
|
7,911
|
|
9,529
|
|
1,358
|
|
Acquisition-related
expenses
|
|
7,995
|
|
-
|
|
-
|
|
Cancellation fees of
repurchased ADSs
|
|
-
|
|
162
|
|
23
|
|
Non-GAAP
loss from operations
|
|
(90,391)
|
|
(85,163)
|
|
(12,135)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(129,599)
|
|
(93,255)
|
|
(13,289)
|
|
Add: Share-based
compensation expenses
|
|
29,415
|
|
19,628
|
|
2,797
|
|
Amortization of
intangible assets resulting from
business acquisition
|
|
7,911
|
|
9,529
|
|
1,358
|
|
Cancellation fees of
repurchased ADSs
|
|
-
|
|
162
|
|
23
|
|
Unrealized investment
loss (gain)
|
|
7,805
|
|
(3,855)
|
|
(549)
|
|
Acquisition-related
expenses
|
|
7,995
|
|
-
|
|
|
|
Less: Tax
effect of amortization of intangible assets
resulting from business acquisition (1)
|
|
(1,507)
|
|
(2,043)
|
|
(291)
|
|
Non-GAAP net
loss
|
|
(77,980)
|
|
(69,834)
|
|
(9,951)
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to ordinary shareholders of Baozun
Inc.
|
|
(126,433)
|
|
(88,070)
|
|
(12,551)
|
|
Add: Share-based
compensation expenses
|
|
29,415
|
|
19,628
|
|
2,797
|
|
Amortization of
intangible assets resulting from
business acquisition (1)
|
|
5,991
|
|
6,734
|
|
960
|
|
Cancellation fees of
repurchased ADSs
|
|
-
|
|
162
|
|
23
|
|
Unrealized investment
loss (gain)
|
|
7,805
|
|
(3,855)
|
|
(549)
|
|
Acquisition-related
expenses
|
|
7,995
|
|
-
|
|
-
|
|
Less: Tax
effect of amortization of intangible assets
resulting from business acquisition (1)
|
|
(1,127)
|
|
(1,388)
|
|
(198)
|
|
Non-GAAP
net loss attributable to ordinary
shareholders of Baozun Inc.
|
|
(76,354)
|
|
(66,789)
|
|
(9,518)
|
|
|
|
|
|
|
|
|
|
Diluted non-GAAP net loss
attributable to ordinary
shareholders of Baozun Inc. per ADS
|
|
(1.28)
|
|
(1.12)
|
|
(0.16)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in calculating diluted net
loss per ordinary share
|
|
178,755,231
|
|
178,284,818
|
|
178,284,818
|
|
|
|
(1) The Company
evaluated the non-GAAP adjustments items and concluded that these
items have immaterial
income tax effects except for amortization of intangible assets
resulting from business acquisition.
|
|
View original
content:https://www.prnewswire.com/news-releases/baozun-announces-third-quarter-2024-unaudited-financial-results-302312676.html
SOURCE Baozun Inc.