Baozun Announces Third Quarter 2022 Unaudited Financial Results
Baozun reported its Q3 2022 financial results, showing total net revenues of RMB1,741.3 million (US$1244.8 million), an 8.3% year-over-year decline. However, service revenues rose by 3.8% to RMB1,244.2 million (US$174.9 million). Operating loss improved to RMB26.3 million (US$3.7 million) from RMB156.5 million a year earlier, with a non-GAAP operating income of RMB16.9 million (US$2.4 million). The company had a cash position of RMB2,899.3 million (US$407.6 million) as of September 30, 2022. Despite challenges, Baozun emphasized its strategic investments and operational resilience.
- Service revenues increased by 3.8% year-over-year.
- Improvement in operating loss to RMB26.3 million from RMB156.5 million in Q3 2021.
- Non-GAAP income from operations turned positive at RMB16.9 million compared to a loss in the prior year.
- Cash position of RMB2,899.3 million provides a solid foundation for future expansion.
- Total net revenues decreased by 8.3% year-over-year.
- Product sales revenue dropped by 29% due to weaker market conditions.
- Non-distribution GMV decreased by 23.2%.
SHANGHAI, China, Nov. 29, 2022 (GLOBE NEWSWIRE) -- Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) (“Baozun” or the “Company”), the leading brand e-commerce service partner and digital commerce enabler that helps brands execute their omni-channel strategies, today announced its unaudited financial results for the third quarter ended September 30, 2022.
Third Quarter 2022 Financial Highlights
- Total net revenues were RMB1,741.3 million (US$1244.8 million), a decrease of
8.3% year-over-year, of which, service revenues were RMB1,244.2 million (US$174.9 million ), an increase of3.8% year-over-year. - Loss from operations was RMB26.3 million (US
$3.7 million ), an improvement from RMB156.5 million in the same quarter of last year. Operating margin was negative1.5% , compared with negative8.2% for the same period of 2021. - Non-GAAP income from operations2 was RMB16.9 million (US
$2.4 million ), compared with non-GAAP loss from operations of RMB84.3 million in the same quarter of last year. Non-GAAP operating margin was1.0% , compared with negative4.4% for the same period of 2021. - Net loss attributable to ordinary shareholders of Baozun Inc. was RMB168.9 million (US
$23.7 million ), an improvement from RMB292.5 million for the same period of 2021. - Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc.3 was RMB13.1 million (US
$1.8 million ), an improvement from RMB88.1 million for the same period of 2021. - Basic and diluted net loss attributable to ordinary shareholders of Baozun Inc. per American Depositary Share (“ADS4”) were both RMB2.88 (US
$0.40) , an improvement from both of RMB4.00 for the same period of 2021. - Basic and diluted non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. per ADS5 were both RMB0.22 (US
$0.03) , an improvement from both of RMB1.21 for the same period of 2021. - Cash, cash equivalents, restricted cash, and short-term investment totaled RMB2,899.3 million (US
$407.6 million ), as of September 30, 2022.
Third Quarter 2022 Operational Highlights
- Total Gross Merchandise Volume (“GMV”)6 was RMB18,632.1 million, an increase of
15.9% year-over-year. - Distribution GMV7 was RMB559.0 million, a decrease of
28.8% year-over-year. - Non-distribution GMV8 was RMB18,073.1 million, an increase of
18.2% year-over-year, of which, consignment model GMV was RMB3,378.6 million, a decrease of23.2% , and service fee model GMV was RMB14,694.5 million, an increase of34.9% year-over-year, driven by strong volume in the electronics category. - GMV generated from non-TMALL marketplaces and channels accounted for approximately
31.1% of total GMV during the quarter, compared with34.0% for the same period of 2021. - Number of brand partners for store operations increased to 362 as of September 30, 2022, from 355 as of June 30, 2022.
Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, “Despite the ongoing challenging environment, I am encouraged with our business resilience. We continue to execute our medium-term plan with discipline, and strategically invest in our business to expand addressable market. Our recent launch of Baozun Brand Management, along with the acquisition of GAP Greater China, further advance our target to evolve into a technology-driven, omni-channel commerce player. While it will take time and hard work to fully actualize our vision, we believe a close-loop demand-to-supply value chain, as well as an integrated offline-and-online commerce, will make brands unique and much more successful.”
Mr. Arthur Yu, Chief Financial Officer of Baozun, commented, “Our effectiveness in maintaining operations and supporting our partners’ success during these periods of macro uncertainty underscores the durability and strength of our business model. Throughout this year, we prioritized cost optimization and working capital efficiency, and our efforts are bearing fruits in terms of higher product sales gross margin, lower operating expenses, and better operating cash flows. We are confident that our cash position provides us with a solid foundation for future expansion. In addition, we completed dual primary listing on November 1, 2022, marking another milestone in our capital market journey that offers more flexibility to our shareholders.”
Third Quarter 2022 Financial Results
Total net revenues were RMB1,741.3 million (US
The following table sets forth a breakdown of total net revenues by segments and business models for the periods indicated:
| For the three months ended September 30, | |||||||||||||||||||
| 2021 | 2022 | ||||||||||||||||||
| RMB | % of Revenue | RMB | US$ | % of Revenue | YoY Change | ||||||||||||||
| (In millions, except for percentage) | |||||||||||||||||||
| Online store operations | 1,040.3 | 55% | 845.0 | 118.8 | 49% | - | |||||||||||||
| Product sales | 699.6 | 497.1 | 69.9 | - | |||||||||||||||
| Services | 340.7 | 347.9 | 48.9 | ||||||||||||||||
| Warehousing and fulfillment | 528.3 | 28% | 492.4 | 69.2 | 28% | - | |||||||||||||
| Digital marketing and IT solutions | 330.2 | 17% | 403.9 | 56.8 | 23% | 22% | |||||||||||||
| Total net revenues | 1,898.8 | 100% | 1,741.3 | 244.8 | 100% | - | |||||||||||||
Breakdown of total net revenues of online store operations by key categories9 :
| For the three months ended September 30, | |||||||||||||||||||
| 2021 | 2022 | ||||||||||||||||||
| RMB | % of Revenue | RMB | US$ | % of Revenue | YoY Change | ||||||||||||||
| (In millions, except for percentage) | |||||||||||||||||||
| Online store operations | |||||||||||||||||||
| Apparel and accessories | 208.3 | 234.2 | 33.0 | ||||||||||||||||
| Luxury | 75.6 | 92.9 | 13.1 | ||||||||||||||||
| Sportswear | 78.4 | 80.4 | 11.3 | ||||||||||||||||
| Other apparel | 54.3 | 60.9 | 8.6 | ||||||||||||||||
| Appliances | 373.1 | 219.4 | 30.8 | - | |||||||||||||||
| Beauty and cosmetics | 94.4 | 100.0 | 14.1 | ||||||||||||||||
| Fast moving consumer goods | 76.8 | 92.0 | 12.9 | ||||||||||||||||
| Others | 287.7 | 199.4 | 28.0 | - | |||||||||||||||
| Total net revenues from online store operations | 1,040.3 | 55% | 845.0 | 118.8 | 49% | - | |||||||||||||
____________________
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 RMB7.1135 to US
2 Non-GAAP income (loss) from operations is a non-GAAP financial measure, which is defined as income (loss) from operations excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisition.
3 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 share-based compensation expenses, amortization of intangible assets resulting from business acquisition, unrealized investment gain/(loss), gain/(loss) on disposal of subsidiaries and investment in equity investee and impairment loss of investments.
4 Each ADS represents three Class A ordinary shares.
5 Basic and diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS are non-GAAP financial measures, which are defined as non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. divided by weighted average number of shares used in calculating basic and diluted net income (loss) per ordinary share multiplied by three, respectively.
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 Key categories refer to the categories that accounted for more than
Product sales revenue was RMB497.1 million (US
Services revenue was RMB1,244.2 million (US
Total operating expenses were RMB1,767.5 million (US
- Cost of products was RMB414.8 million (US
$58.3 million ), compared with RMB596.0 million in the same quarter of last year. The decrease was primarily due to the decline in product sales revenue, as well as an improvement in product sales gross margin. - Fulfillment expenses were RMB575.9 million (US
$81.0 million ), compared with RMB633.9 million in the same quarter of last year. The decrease was primarily due to lower freight expenses resulting from the Company’s divesture of a subsidiary of its warehouse and supply chain businesses that was acquired in the second quarter of 2021, and additional savings in customer services expenses resulting from the Company’s expanding use of regional service centers. - Sales and marketing expenses were RMB602.4 million (US
$84.7 million ), compared with RMB535.6 million in the same quarter of last year. The increase was mainly due to additional front-end staff from an acquired business in the past 12 months, growth in digital marketing revenue and services, and an addition of strategic business development staff, which was partially offset by efficiency improvements. - Technology and content expenses were RMB98.3 million (US
$13.8 million ) compared with RMB113.9 million in the same quarter of last year. The decrease was mainly due to the Company’s cost control initiatives and efficiency improvements, which was partially offset by the Company’s ongoing investment in technological innovation and productization. - General and administrative expenses were RMB97.7 million (US
$13.7 million ), compared with RMB191.1 million in the same quarter of last year. The decrease was attributable to the Company’s effective cost control initiatives and efficiency improvements during the quarter. Additionally, in the same quarter of last year, general and administrative expenses included a write-down of accounts receivable totaling RMB86.1 million.
Loss from operations was RMB26.3 million (US
Non-GAAP income from operations was RMB16.9 million (US
Unrealized investment loss was RMB8.2 million (US
Loss on disposal of subsidiaries and investment in equity investee was RMB99.5 million (US
Exchange loss was RMB8.8 million (US
Net loss attributable to ordinary shareholders of Baozun Inc. was RMB168.9 million (US
Basic and diluted net loss attributable to ordinary shareholders of Baozun Inc. per ADS were both RMB2.88 (US
Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. was RMB13.1 million (US
Basic and diluted non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. per ADS were both RMB0.22 (US
As of September 30, 2022, the Company had RMB2,899.3 million (US
Update in Share Repurchase Programs
During the third quarter of 2022, the Company repurchased approximately 0.7 million of ADSs for approximately US
Conference Call
The Company will host a conference call to discuss the earnings at 6:30 a.m. Eastern Time on Tuesday, November 29, 2022 (7:30 p.m. Beijing time on the same day).
Due to the outbreak of COVID-19, operator assisted conference calls are not available at the moment. All participants wishing to attend the call must preregister online before they can receive the dial-in numbers. Preregistration may require a few minutes to complete. The Company would like to apologize for any inconvenience caused by not having an operator as a result of COVID-19.
Participants can register for the conference call by navigating to https://register.vevent.com/register/BIcf3d6c08b76a4bfab4879f1bfeaabbc1. Once preregistration has been completed, participants will receive dial-in numbers and a unique access pin.
To join the conference, simply dial the number you received after preregistering, enter your personal PIN, and you will join the conference instantly.
A live webcast of the conference call will be available on the Investor Relations section of Baozun’s website at http://ir.baozun.com. An archived webcast will be available through the same link following the call.
Use of Non-GAAP Financial Measures
The Company also uses certain non-GAAP financial measures in evaluating its business. For example, the Company uses non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net margin, non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. and non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS, as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.
The Company defines non-GAAP income (loss) from operations as income (loss) from operations excluding the impact of share-based compensation expenses and amortization of intangible assets resulting from business acquisition. 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, unrealized investment gain/(loss), gain/(loss) on disposal of subsidiaries and investment in equity investee and impairment loss of investments. 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, unrealized investment gain/(loss), gain/(loss) on disposal of subsidiaries and investment in equity investee and impairment loss of investments. The Company defines non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS as non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. divided by weighted average number of shares used in calculating net income (loss) per ordinary share multiplied by three.
The Company presents the non-GAAP financial measures because they are used by the Company’s management to evaluate the Company’s financial and operating performance and formulate business plans. Non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. and Non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS reflect the Company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the Company’s current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the Company’s core operating results and business outlook.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc., and non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS is that they do not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, potentially limiting the comparability of their financial results to the Company’s. In light of the foregoing limitations, the non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net margin, non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. and non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS for the period should not be considered in isolation from or as an alternative to income (loss) from operations, operating margin, net income (loss), net margin, net income (loss) attributable to ordinary shareholders of Baozun Inc. and net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS, or other financial measures prepared in accordance with U.S. GAAP.
The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company’s performance. The company encourages you to review the company’s financial information in its entirety and not rely on a single financial measure. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “Reconciliations of GAAP and Non-GAAP Results.”
Safe Harbor Statements
This press release 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,” “potential,” “continue,” “ongoing,” “targets,” “guidance,” “going forward,” “outlook” and similar statements. Statements that are not historical facts, including quotes from management in this announcement and statements about the Company’s strategies and goals, are or contain 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 the following: the Company’s operations and business prospects; the Company’s business and operating strategies and its ability to implement such strategies; the Company’s ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; the Company’s ability to control costs; the Company’s dividend policy; changes to regulatory and operating conditions in the industry and geographical markets in which the Company operates; timing and results of any current or proposed acquisition activities; and other risks and uncertainties. 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 and the Company’s announcements, notice or other documents published on the website of The Stock Exchange of Hong Kong Limited. All information provided in this press release is as of the date of this press release and is based on assumptions that the Company believes to be reasonable as of this date, and the Company does not undertake any obligation to update any forward-looking statement, except as required under the applicable law.
About Baozun Inc.
Baozun Inc. is the leading brand e-commerce service partner and digital commerce enabler that helps brands execute their omni-channel strategies. Baozun Inc. empowers a broad and diverse range of brands to grow and succeed by leveraging its end-to-end e-commerce service capabilities, omni-channel coverage and technology-driven solutions. Its integrated and technology-empowered one-stop solutions address all core aspects of the e-commerce operations covering IT solutions, online store operations, digital marketing, customer service, warehousing and fulfillment.
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, 2021 | September 30, 2022 | September 30, 2022 | |||||||
| RMB | RMB | US$ | |||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 4,606,545 | 2,292,079 | 322,215 | ||||||
| Restricted cash | 93,219 | 7,254 | 1,020 | ||||||
| Short-term investments | - | 600,000 | 84,347 | ||||||
| Accounts receivable, net | 2,260,918 | 1,956,368 | 275,022 | ||||||
| Inventories, net | 1,073,567 | 864,880 | 121,583 | ||||||
| Advances to suppliers | 527,973 | 327,856 | 46,089 | ||||||
| Prepayments and other current assets | 572,774 | 515,338 | 72,445 | ||||||
| Amounts due from related parties | 68,984 | 71,102 | 9,995 | ||||||
| Total current assets | 9,203,980 | 6,634,877 | 932,716 | ||||||
| Non-current assets | |||||||||
| Investments in equity investees | 330,788 | 257,552 | 36,206 | ||||||
| Property and equipment, net | 652,886 | 682,610 | 95,960 | ||||||
| Intangible assets, net | 395,210 | 317,523 | 44,637 | ||||||
| Land use right, net | 40,516 | 39,746 | 5,587 | ||||||
| Operating lease right-of-use assets | 1,095,570 | 914,016 | 128,490 | ||||||
| Goodwill | 397,904 | 350,297 | 49,244 | ||||||
| Other non-current assets | 87,926 | 69,524 | 9,773 | ||||||
| Deferred tax assets | 114,200 | 115,648 | 16,258 | ||||||
| Total non-current assets | 3,115,000 | 2,746,916 | 386,155 | ||||||
| Total assets | 12,318,980 | 9,381,793 | 1,318,871 | ||||||
| Baozun Inc. | |||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (In thousands, except for share and per share data) | |||||||||
| As of | |||||||||
| December 31, 2021 | September 30, 2022 | September 30, 2022 | |||||||
| RMB | RMB | US$ | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Short-term loan | 2,288,465 | 1,264,499 | 177,760 | ||||||
| Accounts payable | 494,079 | 253,178 | 35,592 | ||||||
| Notes payable | 529,603 | 15,294 | 2,150 | ||||||
| Income tax payables | 127,990 | — | — | ||||||
| Accrued expenses and other current liabilities | 984,519 | 800,935 | 112,594 | ||||||
| Amounts due to related parties | 73,794 | 20,742 | 2,916 | ||||||
| Current operating lease liabilities | 278,176 | 254,838 | 35,825 | ||||||
| Total current liabilities | 4,776,626 | 2,609,486 | 366,837 | ||||||
| Non-current liabilities | |||||||||
| Deferred tax liabilities | 51,525 | 30,058 | 4,225 | ||||||
| Long-term operating lease liabilities | 883,495 | 722,394 | 101,553 | ||||||
| Other non-current liabilities | 125,985 | 81,728 | 11,489 | ||||||
| Total non-current liabilities | 1,061,005 | 834,180 | 117,267 | ||||||
| Total liabilities | 5,837,631 | 3,443,666 | 484,104 | ||||||
| Redeemable non-controlling interests | 1,421,680 | 1,413,918 | 198,765 | ||||||
| Baozun Inc. shareholders’ equity: | |||||||||
| Class A ordinary shares (US | 125 | 116 | 16 | ||||||
| Class B ordinary shares (US | 8 | 8 | 1 | ||||||
| Additional paid-in capital | 4,959,646 | 5,104,651 | 717,600 | ||||||
| Treasury shares | (385,942 | ) | (832,578 | ) | (117,042 | ) | |||
| Retained earnings | 425,125 | 56,104 | 7,887 | ||||||
| Accumulated other comprehensive income | (102,603 | ) | 55,396 | 7,787 | |||||
| Total Baozun Inc. shareholders' equity | 4,896,359 | 4,383,697 | 616,249 | ||||||
| Non-controlling interests | 163,310 | 140,512 | 19,753 | ||||||
| Total equity | 5,059,669 | 4,524,209 | 636,002 | ||||||
| Total liabilities, redeemable non-controlling interests and equity | 12,318,980 | 9,381,793 | 1,318,871 | ||||||
| Baozun Inc. | ||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||
| (In thousands, except for share and per share data and per ADS data) | ||||||||||
| For the three months ended September 30, | ||||||||||
| 2021 | 2022 | |||||||||
| RMB | RMB | US$ | ||||||||
| Net revenues | ||||||||||
| Product sales | 699,645 | 497,098 | 69,881 | |||||||
| Services | 1,199,120 | 1,244,174 | 174,903 | |||||||
| Total net revenues | 1,898,765 | 1,741,272 | 244,784 | |||||||
| Operating expenses (1) | ||||||||||
| Cost of products | (596,047 | ) | (414,776 | ) | (58,308 | ) | ||||
| Fulfillment (2) | (633,884 | ) | (575,875 | ) | (80,955 | ) | ||||
| Sales and marketing (2) | (535,570 | ) | (602,438 | ) | (84,689 | ) | ||||
| Technology and content (2) | (113,946 | ) | (98,301 | ) | (13,819 | ) | ||||
| General and administrative (2) | (191,069 | ) | (97,684 | ) | (13,732 | ) | ||||
| Other operating income, net | 15,226 | 21,546 | 3,029 | |||||||
| Total operating expenses | (2,055,290 | ) | (1,767,528 | ) | (248,474 | ) | ||||
| Loss from operations | (156,525 | ) | (26,256 | ) | (3,690 | ) | ||||
| Other income (expenses) | ||||||||||
| Interest income | 16,744 | 8,485 | 1,193 | |||||||
| Interest expense | (14,238 | ) | (9,724 | ) | (1,367 | ) | ||||
| Unrealized investment loss | (134,327 | ) | (8,219 | ) | (1,155 | ) | ||||
| Impairment loss of investments | — | (8,400 | ) | (1,181 | ) | |||||
| Loss on disposal of subsidiaries and investment in equity investee | — | (99,521 | ) | (13,991 | ) | |||||
| Exchange gain (loss) | 1,508 | (8,818 | ) | (1,240 | ) | |||||
| Loss before income tax and share of income (loss) in equity method investment | (286,838 | ) | (152,453 | ) | (21,431 | ) | ||||
| Income tax expense (3) | (6,349 | ) | (4,259 | ) | (599 | ) | ||||
| Share of income (loss) in equity method investment, net of tax of nil | 177 | (269 | ) | (38 | ) | |||||
| Net loss | (293,010 | ) | (156,981 | ) | (22,068 | ) | ||||
| Net (income) loss attributable to non-controlling interests | 739 | (2,382 | ) | (335 | ) | |||||
| Net income attributable to redeemable non-controlling interests | (235 | ) | (9,495 | ) | (1,335 | ) | ||||
| Net loss attributable to ordinary shareholders of Baozun Inc. | (292,506 | ) | (168,858 | ) | (23,738 | ) | ||||
| Net loss per share attributable to ordinary shareholders of Baozun Inc.: | ||||||||||
| Basic | (1.33 | ) | (0.96 | ) | (0.13 | ) | ||||
| Diluted | (1.33 | ) | (0.96 | ) | (0.13 | ) | ||||
| Net loss per ADS attributable to ordinary shareholders of Baozun Inc.: | ||||||||||
| Basic | (4.00 | ) | (2.88 | ) | (0.40 | ) | ||||
| Diluted | (4.00 | ) | (2.88 | ) | (0.40 | ) | ||||
| Weighted average shares used in calculating net loss per ordinary share | ||||||||||
| Basic | 219,336,549 | 176,164,018 | 176,164,018 | |||||||
| Diluted | 219,336,549 | 176,164,018 | 176,164,018 | |||||||
| Net loss | (293,010 | ) | (156,981 | ) | (22,068 | ) | ||||
| Other comprehensive loss, net of tax of nil: | ||||||||||
| Foreign currency translation adjustment | (2,897 | ) | 83,606 | 11,753 | ||||||
| Comprehensive loss | (295,907 | ) | (73,375 | ) | (10,315 | ) | ||||
(1) Share-based compensation expenses are allocated in operating expenses items as follows:
| For the three months ended September 30, | ||||||
| 2021 | 2022 | |||||
| RMB | RMB | US$ | ||||
| Fulfillment | 5,945 | 2,820 | 396 | |||
| Sales and marketing | 30,029 | 14,643 | 2,059 | |||
| Technology and content | 12,107 | 5,233 | 736 | |||
| General and administrative | 18,340 | 11,133 | 1,565 | |||
| 66,421 | 33,829 | 4,756 | ||||
(2) Including amortization of intangible assets resulting from business acquisition, which amounted to RMB5.8 million and RMB9.3 million for the three months period ended September 30, 2021 and 2022, respectively.
(3) Including income tax benefits of RMB0.9 million and RMB1.8 million related to the reversal of deferred tax liabilities, which was recognized on business acquisition for the three months period ended September 30, 2021 and 2022, respectively.
| 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, | ||||||||||
| 2021 | 2022 | |||||||||
| RMB | RMB | US$ | ||||||||
| Loss from operations | (156,525 | ) | (26,256 | ) | (3,690 | ) | ||||
| Add: Share-based compensation expenses | 66,421 | 33,829 | 4,756 | |||||||
| Amortization of intangible assets resulting from business acquisition | 5,785 | 9,340 | 1,313 | |||||||
| Non-GAAP income (loss) from operations | (84,319 | ) | 16,913 | 2,379 | ||||||
| Net loss | (293,010 | ) | (156,981 | ) | (22,068 | ) | ||||
| Add: Share-based compensation expenses | 66,421 | 33,829 | 4,756 | |||||||
| Amortization of intangible assets resulting from business acquisition | 5,785 | 9,340 | 1,313 | |||||||
| Unrealized investment loss | 134,327 | 8,219 | 1,155 | |||||||
| Impairment loss of investments | — | 8,400 | 1,181 | |||||||
| Loss on disposal of subsidiaries and investment in equity investee | — | 99,521 | 13,990 | |||||||
| Less: Tax effect of amortization of intangible assets resulting from business acquisition | (909 | ) | (1,838 | ) | (258 | ) | ||||
| Non-GAAP net income (loss) | (87,386 | ) | 490 | 69 | ||||||
| Net loss attributable to ordinary shareholders of Baozun Inc. | (292,506 | ) | (168,858 | ) | (23,738 | ) | ||||
| Add: Share-based compensation expenses | 66,421 | 33,829 | 4,756 | |||||||
| Amortization of intangible assets resulting from business acquisition | 4,200 | 7,139 | 1,004 | |||||||
| Unrealized investment loss | 134,327 | 8,219 | 1,155 | |||||||
| Impairment loss of investments | — | 8,400 | 1,181 | |||||||
| Loss on disposal of subsidiaries and investment in equity investee | — | 99,521 | 13,990 | |||||||
| Less: Tax effect of amortization of intangible assets resulting from business acquisition | (577 | ) | (1,396 | ) | (196 | ) | ||||
| Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. | (88,135 | ) | (13,146 | ) | (1,848 | ) | ||||
| Non-GAAP net loss attributable to ordinary shareholders of Baozun Inc. per ADS: | ||||||||||
| Basic | (1.21 | ) | (0.22 | ) | (0.03 | ) | ||||
| Diluted | (1.21 | ) | (0.22 | ) | (0.03 | ) | ||||
| Weighted average shares used in calculating net loss per ordinary share | ||||||||||
| Basic | 219,336,549 | 176,164,018 | 176,164,018 | |||||||
| Diluted | 219,336,549 | 176,164,018 | 176,164,018 | |||||||
FAQ
What were Baozun's Q3 2022 revenue results?
How did Baozun perform in terms of service revenue in Q3 2022?
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What was Baozun's loss from operations in Q3 2022?
