Baozun Announces Second Quarter 2024 Unaudited Financial Results
Baozun (Nasdaq: BZUN) announced its unaudited Q2 2024 financial results. Total net revenues grew by 3.1% year-over-year to RMB2,391.0 million (US$329.0 million). The company reported a net loss of RMB30.6 million (US$4.2 million), up from RMB20.0 million in the same quarter of 2023. Non-GAAP net loss improved to RMB3.9 million (US$0.5 million) from RMB4.4 million last year. E-Commerce revenue increased after ten quarters of contraction, aided by a 10.4% rise in service revenue. Integration of Location, a Douyin partner, bolstered the company's livestreaming capabilities. Brand Management's operating losses shrunk as store expansion accelerated. Notably, Baozun achieved a 3% annual revenue growth and significant improvement in non-GAAP operating profits. However, product sales revenue dropped by 4.4% to RMB579.2 million (US$79.7 million) for E-Commerce and by 9.8% to RMB292.3 million (US$40.2 million) for Brand Management. The company repurchased approximately 2.0 million ADSs worth US$4.9 million year-to-date.
Baozun (Nasdaq: BZUN) ha annunciato i suoi risultati finanziari non certificati per il secondo trimestre del 2024. Le entrate totali nette sono cresciute del 3,1% rispetto all'anno precedente, raggiungendo RMB2.391,0 milioni (US$329,0 milioni). L'azienda ha riportato una perdita netta di RMB30,6 milioni (US$4,2 milioni), in aumento rispetto ai RMB20,0 milioni dello stesso trimestre del 2023. La perdita netta non-GAAP è migliorata a RMB3,9 milioni (US$0,5 milioni) rispetto ai RMB4,4 milioni dell'anno scorso. Le entrate dell'e-commerce sono aumentate dopo dieci trimestri di contrazione, sostenute da un incremento del 10,4% delle entrate per servizio. L'integrazione di Location, un partner di Douyin, ha potenziato le capacità di livestreaming dell'azienda. Le perdite operative nella gestione del marchio sono diminuite mentre l'espansione dei negozi accelerava. È importante notare che Baozun ha raggiunto una crescita annuale del fatturato del 3% e un significativo miglioramento nei profitti operativi non-GAAP. Tuttavia, le entrate delle vendite dei prodotti sono diminuite del 4,4% a RMB579,2 milioni (US$79,7 milioni) per l'e-commerce e del 9,8% a RMB292,3 milioni (US$40,2 milioni) per la gestione del marchio. L'azienda ha riacquistato circa 2,0 milioni di ADS per un valore di US$4,9 milioni dall'inizio dell'anno.
Baozun (Nasdaq: BZUN) anunció sus resultados financieros no auditados para el segundo trimestre de 2024. Los ingresos netos totales crecieron un 3,1% interanual, alcanzando RMB2.391,0 millones (US$329,0 millones). La compañía reportó una pérdida neta de RMB30,6 millones (US$4,2 millones), un aumento respecto a los RMB20,0 millones en el mismo trimestre de 2023. La pérdida neta no-GAAP mejoró a RMB3,9 millones (US$0,5 millones) desde RMB4,4 millones el año anterior. Los ingresos del comercio electrónico aumentaron tras diez trimestres de contracción, impulsados por un aumento del 10,4% en los ingresos por servicios. La integración de Location, un socio de Douyin, fortaleció las capacidades de transmisión en vivo de la empresa. Las pérdidas operativas en la gestión de marca disminuyeron a medida que se aceleró la expansión de tiendas. Es notable que Baozun logró un crecimiento anual de ingresos del 3% y una mejora significativa en las ganancias operativas no-GAAP. Sin embargo, los ingresos por ventas de productos cayeron un 4,4% a RMB579,2 millones (US$79,7 millones) para comercio electrónico y un 9,8% a RMB292,3 millones (US$40,2 millones) para la gestión de marcas. La compañía recompró aproximadamente 2,0 millones de ADS por un valor de US$4,9 millones desde principios de año.
바오준(Baozun) (Nasdaq: BZUN)은 2024년 2분기 감사되지 않은 재무 결과를 발표했습니다. 총 순수익은 전년 대비 3.1% 성장하여 RMB2,391.0 백만(미화 3억 2,900만 달러)에 달했습니다. 회사는 RMB30.6 백만(미화 420만 달러)의 순손실을 보고했으며, 이는 2023년 같은 분기의 RMB20.0 백만에서 증가한 수치입니다. 비-GAAP 순손실은 작년의 RMB4.4 백만에서 RMB3.9 백만(미화 50만 달러)으로 개선되었습니다. 전자상거래 수익은 서비스 수익의 10.4% 증가로 10분기 연속 감소 후 증가했습니다. Douyin 파트너인 Location의 통합은 회사의 라이브 스트리밍 능력을 강화했습니다. 브랜드 관리의 운영 손실은 매장 확장이 가속화됨에 따라 줄어들었습니다. 특히, 바오준은 연간 수익이 3% 증가하고 비-GAAP 운영 이익이显著 개선되었습니다. 그러나 제품 판매 수익은 전자상거래에서 4.4% 감소하여 RMB579.2 백만(미화 7970만 달러)로, 브랜드 관리에서 9.8% 감소하여 RMB292.3 백만(미화 4020만 달러)으로 떨어졌습니다. 회사는 올해 초부터 약 200만 ADS를 미화 490만 달러에 재매입했습니다.
Baozun (Nasdaq: BZUN) a annoncé ses résultats financiers non audités pour le deuxième trimestre 2024. Les revenus nets totaux ont augmenté de 3,1 % par rapport à l'année précédente, atteignant 2 391,0 millions RMB (329,0 millions USD). L'entreprise a enregistré une perte nette de 30,6 millions RMB (4,2 millions USD), en hausse par rapport à 20,0 millions RMB au même trimestre en 2023. La perte nette non-GAAP s'est améliorée à 3,9 millions RMB (0,5 million USD) contre 4,4 millions RMB l'année précédente. Les revenus e-commerce ont augmenté après dix trimestres de contraction, soutenus par une augmentation de 10,4 % des revenus de services. L'intégration de Location, un partenaire de Douyin, a renforcé les capacités de diffusion en direct de l'entreprise. Les pertes opérationnelles dans la gestion de marque ont diminué alors que l'expansion des magasins s'accélérait. Il convient de noter que Baozun a enregistré une croissance annuelle des revenus de 3 % et une amélioration significative des bénéfices d'exploitation non-GAAP. Cependant, les revenus des ventes de produits ont chuté de 4,4 % à 579,2 millions RMB (79,7 millions USD) pour le e-commerce et de 9,8 % à 292,3 millions RMB (40,2 millions USD) pour la gestion de marque. L'entreprise a racheté environ 2,0 millions d'ADS d'une valeur totale de 4,9 millions USD depuis le début de l'année.
Baozun (Nasdaq: BZUN) gab seine nicht geprüften Finanzzahlen für das zweite Quartal 2024 bekannt. Die gesamten Nettoumsätze stiegen im Jahresvergleich um 3,1% auf RMB2.391,0 Millionen (US$329,0 Millionen). Das Unternehmen meldete einen Nettoverlust von RMB30,6 Millionen (US$4,2 Millionen), was einem Anstieg von RMB20,0 Millionen im gleichen Quartal 2023 entspricht. Der nicht-GAAP Nettoverlust verbesserte sich auf RMB3,9 Millionen (US$0,5 Millionen) im Vergleich zu RMB4,4 Millionen im Vorjahr. Die E-Commerce-Einnahmen stiegen nach zehn aufeinanderfolgenden Quartalen des Rückgangs, unterstützt durch einen Anstieg der Dienstleistungseinnahmen um 10,4%. Die Integration von Location, einem Partner von Douyin, stärkte die Live-Streaming-Fähigkeiten des Unternehmens. Die Betriebskosten im Markenmanagement sanken, als die Geschäftserweiterung voranschritt. Bemerkenswert ist, dass Baozun ein jährliches Umsatzwachstum von 3% und eine signifikante Verbesserung des nicht-GAAP Betriebsergebnisses erzielte. Die Einnahmen aus Produktverkäufen hingegen fielen im E-Commerce um 4,4% auf RMB579,2 Millionen (US$79,7 Millionen) und im Markenmanagement um 9,8% auf RMB292,3 Millionen (US$40,2 Millionen). Das Unternehmen hat seit Jahresbeginn etwa 2,0 Millionen ADS im Wert von 4,9 Millionen US-Dollar zurückgekauft.
- Total net revenues grew by 3.1% year-over-year to RMB2,391.0 million (US$329.0 million).
- Non-GAAP net loss improved to RMB3.9 million (US$0.5 million) from RMB4.4 million last year.
- E-Commerce revenue increased after ten quarters of contraction.
- Service revenue rose by 10.4%.
- Annual revenue growth was 3%.
- Significant improvement in non-GAAP operating profits.
- Reduction in Brand Management's operating losses.
- Net loss increased to RMB30.6 million (US$4.2 million) from RMB20.0 million last year.
- Product sales revenue for E-Commerce dropped by 4.4% to RMB579.2 million (US$79.7 million).
- Product sales revenue for Brand Management decreased by 9.8% to RMB292.3 million (US$40.2 million).
Insights
Baozun's Q2 2024 results show mixed signals. While total revenue grew
- E-Commerce revenue returned to growth after 10 quarters of contraction
- Non-GAAP operating profit improved to
RMB10.0 million fromRMB0.7 million last year - Brand Management reduced operating losses
The integration of Location, a top Douyin partner, could strengthen Baozun's position in livestreaming e-commerce. However, investors should monitor the continued losses in Brand Management and weak offline traffic affecting product sales. The
Baozun's Q2 results highlight the shifting dynamics in China's e-commerce landscape. The
However, the
Baozun's Q2 results reflect broader market trends in China's retail sector. The weak offline traffic impacting Brand Management's product sales (
The double-digit growth in digital marketing and IT solutions revenue (
Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, "I'm pleased that in the second quarter, E-Commerce revenue returned to growth after ten quarters of contraction, highlighting our effective revitalization efforts in both services and product sales. Additionally, we smoothly integrated Location, a top Douyin partner, into Baozun's livestreaming business unit. This integration strengthened our value proposition in the Douyin ecosystem. Brand Management continued to reduce its operating losses and accelerated its store expansion plans. We have also been working more closely with Gap Inc to maximize its global assets in the Chinese market. With improved momentum in E-commerce and ongoing progress in building Brand Management, we remain committed to our strategic transformation to drive further growth."
Ms. Catherine Zhu, Chief Financial Officer of Baozun Inc., commented, "I'm delighted to report that Baozun achieved
Second Quarter 2024 Financial Highlights
- Total net revenues were
RMB2,391.0 million (US$[1]329.0 million), representing an increase of3.1% compared withRMB2,320.2 million for the same period of 2023. - Loss from operations was
RMB18.8 million (US ), an improvement from$2.6 million RMB36.4 million in the same quarter of last year which was mainly due to a reduction in losses from Brand Management. Operating margin was negative0.8% , an improvement from negative1.6% for the same period of 2023. - Non-GAAP income from operation[2] was
RMB10.0 million (US ), an improvement from$1.4 million RMB0.7 million in the same quarter of last year which was mainly due to a reduction in losses from Brand Management. Non-GAAP operating margin was0.4% , improved from0.03% for the same period of 2023.- Adjusted operating profit of E-Commerce[3] was
RMB60.2 million (US ), largely in line with$8.3 million RMB60.8 million for the same period of 2023. - Adjusted operating loss of Brand Management[3] was
RMB50.0 million (US ), an improvement from$6.9 million RMB60.1 million for the same period of 2023.
- Adjusted operating profit of E-Commerce[3] was
- Net loss attributable to ordinary shareholders of Baozun Inc. was
RMB30.6 million (US ), compared with$4.2 million RMB20.0 million for the same period of 2023. - Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc.[4] was
RMB3.9 million (US ), compared with$0.5 million RMB4.4 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
RMB0.51 (US ), compared with both$0.07 RMB0.34 for the same period of 2023. - Diluted non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. per ADS[6] was
RMB0.06 (US ), compared with$0.01 RMB0.07 for the same period of 2023. - Cash and cash equivalents, restricted cash, and short-term investments totaled
RMB2,853.3 million (US ), as of June 30, 2024, compared with$392.6 million RMB3,072.8 million as of December 31, 2023.
[1] This announcement contains translations of certain Renminbi (RMB) amounts into |
[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. |
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"
BEC includes our
Omni-channel expansion remains a key theme for our brand partners. By the end of the second quarter, approximately
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
Second Quarter 2024 Financial Results
Total net revenues were
Total product sales revenue was
- Product sales revenue of E-Commerce was
RMB579.2 million (US ), a decrease of$79.7 million 4.4% fromRMB606.1 million in the same quarter of last year. The decrease was primarily attributable to the Company's optimization of its product portfolio in distribution model, especially in the electronics and fast-moving consumer goods sectors.
The following table sets forth a breakdown of product sales revenues of E-Commerce by key categories [7] for the periods indicated:
For the three months ended June 30, | |||||||||||
2023 | 2024 | ||||||||||
RMB | % of | RMB | US$ | % of | YoY | ||||||
(In millions, except for percentage) | |||||||||||
Product Sales of E-Commerce | |||||||||||
Appliances | 276.0 | 12 % | 264.2 | 36.4 | 11 % | -4 % | |||||
Beauty and cosmetics | 104.4 | 4 % | 107.9 | 14.8 | 5 % | 3 % | |||||
Others | 225.7 | 10 % | 207.1 | 28.5 | 8 % | -8 % | |||||
Total net revenues from product | 606.1 | 26 % | 579.2 | 79.7 | 24 % | -4 % |
- Product sales revenue of Brand Management was
RMB292.3 million (US ), a decrease of$40.2 million 9.8% fromRMB324.2 million in the same quarter of last year. The decrease was primarily due to weak offline traffic during the quarter, partially offset by an improved visitor conversion rate.
Services revenue was
The following table sets forth a breakdown of services revenues by service type for the periods indicated:
For the three months ended June 30, | |||||||||||
2023 | 2024 | ||||||||||
RMB | % of | RMB | US$ | % of | YoY | ||||||
(In millions, except for percentage) | |||||||||||
Services revenue | |||||||||||
Online store operations | 388.3 | 17 % | 441.4 | 60.8 | 18 % | 14 % | |||||
Warehousing and fulfillment | 570.5 | 25 % | 587.8 | 80.9 | 25 % | 3 % | |||||
Digital marketing and IT solutions | 446.2 | 19 % | 520.5 | 71.6 | 22 % | 17 % | |||||
Inter-segment eliminations8 | -15.1 | -1 % | -29.0 | -4.0 | -1 % | 92 % | |||||
Total net revenues from services | 1,389.9 | 60 % | 1,520.7 | 209.3 | 64 % | 9 % | |||||
8The 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. |
For the three months ended June 30, | |||||||||||
2023 | 2024 | ||||||||||
RMB | % of | RMB | US$ | % of | YoY | ||||||
(In millions, except for percentage) | |||||||||||
Online store operations in Services revenue | |||||||||||
Apparel and accessories | 258.3 | 11 % | 317.8 | 43.7 | 13 % | 23 % | |||||
- Luxury | 97.9 | 4 % | 96.9 | 13.3 | 4 % | -1 % | |||||
- Sportswear | 95.0 | 4 % | 117.1 | 16.1 | 5 % | 23 % | |||||
- Other apparel | 65.4 | 3 % | 103.8 | 14.3 | 4 % | 59 % | |||||
Others | 130.0 | 6 % | 123.6 | 17.1 | 6 % | -5 % | |||||
Inter-segment eliminations10 | -9.3 | -1 % | -12.0 | -1.7 | -1 % | 29 % | |||||
Total net revenues from online | 379.0 | 16 % | 429.4 | 59.1 | 18 % | 13 % | |||||
[7] Key categories refer to the categories that accounted for no less than |
[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] 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
- Cost of products was
RMB649.7 million (US ), compared with$89.4 million RMB675.1 million in the same quarter of last year. The decrease was primarily due to a decline in product sales volume. - Fulfillment expenses were
RMB627.0 million (US ), compared with$86.3 million RMB658.7 million in the same quarter of last year. The decrease was primarily attributable to the Company's cost control initiatives and efficiency improvements. - Sales and marketing expenses were
RMB844.7 million (US ), compared with$116.2 million RMB706.4 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
RMB129.8 million (US ), compared with$17.9 million RMB129.1 million in the same quarter of last year. The expenses were largely in line with same period last year. - General and administrative expenses were
RMB171.6 million (US ), compared with$23.6 million RMB249.5 million in the same quarter of last year. The decrease was primarily due to higher G&A expenses in the same period of last year, which included higher severance expenses following the acquisition of Gap Shanghai. Additionally, decrease reflects the Company's cost control initiatives and efficiency improvements.
Loss from operations was
Non-GAAP income from operations was
Adjusted operating profit of E-Commerce was
Unrealized investment loss was
Share of loss in equity method investment was
Net loss attributable to ordinary shareholders of Baozun Inc. was
Basic and diluted net loss attributable to ordinary shareholders of Baozun Inc. per ADS were both
Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. was
Diluted non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. per ADS were
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
b> BZI includes our e-commerce businesses outside of mainland
(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
(b) Segments data
The table below provides a summary of the Group's reportable segment results for the three months ended June 30, 2023 and 2024, with prior periods' segment information retrospectively recast to conform to current period presentation:
For the three months ended June 30, | ||||
2023 | 2024 | |||
RMB | RMB | |||
Net revenues: | ||||
E-Commerce | 2,010,976 | 2,130,881 | ||
Brand Management | 324,297 | 294,283 | ||
Inter-segment eliminations * | (15,112) | (34,170) | ||
Total consolidated net revenues | 2,320,161 | 2,390,994 | ||
Adjusted Operating Profits (Losses) **: | ||||
E-Commerce | 60,828 | 60,212 | ||
Brand Management | (60,090) | (49,976) | ||
Total Adjusted Operating Profits | 738 | 10,236 | ||
Inter-segment eliminations * | - | (200) | ||
Unallocated expenses: | ||||
Share-based compensation expenses | (29,264) | (17,478) | ||
Amortization of intangible assets | (7,911) | (10,916) | ||
Cancellation fees of repurchased ADSs | - | (415) | ||
Total other expenses | 22,337 | 4,163 | ||
Loss before income tax | (14,100) | (14,610) |
*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
Conference Call
The Company will host a conference call to discuss the earnings at 7:30 a.m. Eastern Time on Wednesday, August 28, 2024 (7:30 p.m.
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: 9965929
A replay of the conference call may be accessible through September 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: 6727395
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
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
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, | June 30, | June 30, | ||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | 2,149,531 | 1,454,517 | 200,148 | |||
Restricted cash | 202,764 | 242,679 | 33,394 | |||
Short-term investments | 720,522 | 1,156,066 | 159,080 | |||
Accounts receivable, net | 2,184,729 | 1,842,127 | 253,485 | |||
Inventories | 1,045,116 | 1,130,958 | 155,625 | |||
Advances to suppliers | 311,111 | 309,996 | 42,657 | |||
Derivative financial assets | - | 11,179 | 1,538 | |||
Prepayments and other current assets | 590,350 | 678,240 | 93,329 | |||
Amounts due from related parties | 86,661 | 55,874 | 7,689 | |||
Total current assets | 7,290,784 | 6,881,636 | 946,945 | |||
Non-current assets | ||||||
Long term investments | 359,129 | 364,524 | 50,160 | |||
Property and equipment, net | 851,151 | 816,127 | 112,303 | |||
Intangible assets, net | 306,420 | 350,330 | 48,207 | |||
Land use right, net | 38,464 | 37,951 | 5,222 | |||
Operating lease right-of-use assets | 1,070,120 | 857,192 | 117,954 | |||
Goodwill | 312,464 | 369,333 | 50,822 | |||
Other non-current assets | 45,316 | 67,943 | 9,349 | |||
Deferred tax assets | 200,628 | 198,700 | 27,342 | |||
Total non-current assets | 3,183,692 | 3,062,100 | 421,359 | |||
Total assets | 10,474,476 | 9,943,736 | 1,368,304 | |||
LIABILITIES AND SHAREHOLDERS' | ||||||
Current liabilities | ||||||
Short-term loan | 1,115,721 | 1,162,824 | 160,010 | |||
Accounts payable | 563,562 | 439,635 | 60,497 | |||
Notes payable | 506,629 | 418,386 | 57,572 | |||
Income tax payables | 18,768 | 10,255 | 1,411 | |||
Accrued expenses and other current liabilities | 1,188,179 | 1,020,799 | 140,466 | |||
Amounts due to related parties | 32,118 | 22,553 | 3,103 | |||
Current operating lease liabilities | 332,983 | 277,004 | 38,117 | |||
Total current liabilities | 3,757,960 | 3,351,456 | 461,176 | |||
Non-current liabilities | ||||||
Deferred tax liabilities | 24,966 | 36,628 | 5,040 | |||
Long-term operating lease liabilities | 799,096 | 647,321 | 89,074 | |||
Other non-current liabilities | 40,718 | 40,030 | 5,508 | |||
Total non-current liabilities | 864,780 | 723,979 | 99,622 | |||
Total liabilities | 4,622,740 | 4,075,435 | 560,798 | |||
Redeemable non-controlling interests | 1,584,858 | 1,645,177 | 226,384 | |||
Baozun Inc. shareholders' equity: | ||||||
Class A ordinary shares ( | 93 | 95 | 13 | |||
Class B ordinary shares ( | 8 | 8 | 1 | |||
Additional paid-in capital | 4,571,439 | 4,609,277 | 634,258 | |||
Treasury shares (nil and 3,543,606 shares as of | - | (21,630) | (2,976) | |||
Accumulated deficit | (506,587) | (603,844) | (83,092) | |||
Accumulated other comprehensive income | 32,251 | 50,215 | 6,910 | |||
Total Baozun Inc. shareholders' equity | 4,097,204 | 4,034,121 | 555,114 | |||
Non-controlling interests | 169,674 | 189,003 | 26,008 | |||
Total equity | 4,266,878 | 4,223,124 | 581,122 | |||
Total liabilities, redeemable non-controlling | 10,474,476 | 9,943,736 | 1,368,304 |
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 June 30, | |||||
2023 | 2024 | ||||
RMB | RMB | US$ | |||
Net revenues | |||||
Product sales(1) | 930,256 | 870,301 | 119,757 | ||
Services | 1,389,905 | 1,520,693 | 209,255 | ||
Total net revenues | 2,320,161 | 2,390,994 | 329,012 | ||
Operating expenses (1) | |||||
Cost of products | (675,050) | (649,696) | (89,401) | ||
Fulfillment(2) | (658,652) | (626,958) | (86,272) | ||
Sales and marketing (2) | (706,440) | (844,698) | (116,234) | ||
Technology and content(2) | (129,142) | (129,788) | (17,859) | ||
General and administrative(2) | (249,503) | (171,637) | (23,618) | ||
Other operating income, net | 62,189 | 13,010 | 1,789 | ||
Total operating expenses | (2,356,598) | (2,409,767) | (331,595) | ||
Loss from operations | (36,437) | (18,773) | (2,583) | ||
Other income (expenses) | |||||
Interest income | 20,286 | 16,695 | 2,297 | ||
Interest expense | (9,763) | (10,436) | (1,436) | ||
Unrealized investment loss | (9,305) | (2,830) | (389) | ||
Gain on acquisition of subsidiaries | 3,251 | - | - | ||
Exchange loss | -6647 | -10418 | -1434 | ||
Fair value change on financial instruments | 24,515 | 11,152 | 1,535 | ||
Loss before income tax and share of income in equity | (14,100) | (14,610) | (2,010) | ||
Income tax expense (3) | (2,350) | (3,763) | (518) | ||
Share of loss in equity method investment, net of tax of nil | 4,432 | (3,616) | (498) | ||
Net loss | (12,018) | (21,989) | (3,026) | ||
Net loss attributable to | 4,268 | 5,862 | 807 | ||
Net income attributable to | (12,278) | (14,493) | (1,994) | ||
Net loss attributable to ordinary shareholders of | (20,028) | (30,620) | (4,213) | ||
Net loss per share attributable to ordinary | |||||
Basic | (0.11) | (0.17) | (0.02) | ||
Diluted | (0.11) | (0.17) | (0.02) | ||
Net loss per ADS attributable to ordinary | |||||
Basic | (0.34) | (0.51) | (0.07) | ||
Diluted | (0.34) | (0.51) | (0.07) | ||
Weighted average shares used in calculating net loss | |||||
Basic | 177,967,788 | 181,899,568 | 181,899,568 | ||
Diluted | 177,967,788 | 181,899,568 | 181,899,568 | ||
Net loss | (12,018) | (21,989) | (3,026) | ||
Other comprehensive income, net of tax of nil: | |||||
Foreign currency translation adjustment | 39,523 | 6,328 | 871 | ||
Comprehensive loss | 27,505 | (15,661) | (2,155) |
(1) Including product sales from E-Commerce and Brand Management of
(2) Share-based compensation expenses are allocated in operating expenses items as follows:
For the three months ended June 30, | |||||
2023 | 2024 | ||||
RMB | RMB | US$ | |||
Fulfillment | 1,713 | 1,358 | 187 | ||
Sales and marketing | 10,456 | 2,242 | 308 | ||
Technology and content | 3,512 | 2,446 | 337 | ||
General and administrative | 13,583 | 11,432 | 1,573 | ||
29,264 | 17,478 | 2,405 |
(3) Including amortization of intangible assets resulting from business acquisition, which amounted to
(4) Including income tax benefits of
Baozun Inc. Reconciliations of GAAP and Non-GAAP Results (in thousands, except for share and per ADS data) | ||||||
For the three months ended June 30, | ||||||
2023 | 2024 | |||||
RMB | RMB | US$ | ||||
Loss from operations | (36,437) | (18,773) | (2,583) | |||
Add: Share-based compensation expenses | 29,264 | 17,478 | 2,405 | |||
Amortization of intangible assets resulting | 7,911 | 10,916 | 1,502 | |||
Cancellation fees of repurchased ADSs | - | 415 | 57 | |||
Non-GAAP Income from operations | 738 | 10,036 | 1,381 | |||
Net loss | (12,018) | (21,989) | (3,026) | |||
Add: Share-based compensation expenses | 29,264 | 17,478 | 2,405 | |||
Amortization of intangible assets resulting | 7,911 | 10,916 | 1,502 | |||
Cancellation fees of repurchased ADSs | - | 415 | 57 | |||
Unrealized investment loss | 9,305 | 2,830 | 389 | |||
Less: Gain on acquisition of subsidiaries | (3,251) | - | - | |||
Fair value gain on derivative liabilities | (24,515) | - | - | |||
Tax effect of amortization of intangible assets resulting from | (1,507) | (2,259) | (311) | |||
Non-GAAP net income | 5,189 | 7,391 | 1,016 | |||
Net loss attributable to ordinary shareholders of Baozun Inc. | (20,028) | (30,620) | (4,213) | |||
Add: Share-based compensation expenses | 29,264 | 17,478 | 2,405 | |||
Amortization of intangible assets resulting from | 5,991 | 7,523 | 1,035 | |||
Cancellation fees of repurchased ADSs | - | 415 | 57 | |||
Unrealized investment loss | 9,305 | 2,830 | 389 | |||
Less: Gain on acquisition of subsidiaries | (3,272) | - | - | |||
Fair value gain on derivative liabilities | (24,515) | - | - | |||
Tax effect of amortization of intangible assets | (1,127) | (1,510) | (208) | |||
Non-GAAP net loss attributable to ordinary | (4,382) | (3,884) | (535) | |||
Diluted non-GAAP net income (loss) attributable | (0.07) | (0.06) | (0.01) | |||
Weighted average shares used in calculating | 177,967,788 | 181,899,568 | 181,899,568 |
(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-second-quarter-2024-unaudited-financial-results-302232811.html
SOURCE Baozun Inc.
FAQ
How did Baozun's Q2 2024 revenue perform?
What was Baozun's net loss for Q2 2024?
Did Baozun's E-Commerce revenue increase in Q2 2024?
How did Baozun's service revenue perform in Q2 2024?
What is Baozun's stock symbol?