(BZUN) 2022 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and thank you for standing by for the Baozun's Third Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference call is being recorded. I will now turn the meeting over to your host for today's call, Ms. Wendy Sun, Senior Director of Corporate Development and Investor Relations of Baozun. Please proceed, Wendy.

女士們，先生們，早上好，感謝大家耐心等待寶尊2022年第三季度財報電話會議。 （操作員說明）提醒一下，今天的電話會議正在錄製中。我現在將會議轉交給今天的主持人，寶尊企業發展與投資者關係高級總監孫文迪女士。請繼續，溫迪。

Thank you, operator. Hello, everyone, and thank you for joining us today. Our third quarter 2022 earnings release was distributed earlier and it is available on our IR website at ir.baozun.com as well as on GlobeNewswire services. They have also posted a PowerPoint presentation that accompanies our comments to the same IR website where they are available for download.

謝謝你，運營商。大家好，感謝您今天加入我們。我們的 2022 年第三季度財報發布較早，可在我們的 IR 網站 ir.baozun.com 以及 GlobeNewswire 服務上獲取。他們還在同一個 IR 網站上發布了一份 PowerPoint 演示文稿，其中附有我們的評論，可供下載。

On the call today from Baozun, we have Mr. Vincent Qiu, Chairman, and Chief Executive Officer; Mr. Arthur Yu, Chief Financial Officer; Ms. Tracy Li, our Vice President of Strategic Business Development; (inaudible) of Baozun Brand Management. Mr. Qiu will review the business operations and the company highlights, followed by Mr. Yu, who will discuss financials and key operating matric. They will all be available to answer your questions during the Q&A session that follows.

寶尊董事長兼首席執行官 Vincent Qiu 先生今天接到電話。首席財務官Arthur Yu先生；我們的戰略業務發展副總裁 Tracy Li 女士； （聽不清）寶尊品牌管理。邱先生將回顧業務運營和公司亮點，隨後余先生將討論財務和關鍵運營矩陣。在接下來的問答環節中，他們都可以回答您的問題。

Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions and relates to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results to differ materially from those in the forward-looking statements.

在我們開始之前，我想提醒您，本次電話會議包含 1934 年《證券交易法》和 1995 年《美國私人證券訴訟改革法》含義內的前瞻性陳述。這些前瞻性陳述基於管理層當前的預期和當前的市場和經營狀況，以及涉及已知或未知風險、不確定性和其他因素的事件，所有這些都難以預測，其中許多超出了公司的控制範圍，這可能導致公司的實際結果有所不同實質上來自前瞻性陳述中的內容。

Further information regarding these and other risks, uncertainties, or factors is included in the company's filings with the U.S. SEC and announcement on the website of Hong Kong Stock Exchange. The company does not take any obligation to update any forward-looking statements, except as required and applicable law. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB and the comparators are on a year-over-year basis.

有關這些和其他風險、不確定性或因素的更多信息包含在公司向美國證券交易委員會提交的文件和香港聯合交易所網站上的公告中。公司不承擔任何更新任何前瞻性陳述的義務，除非有要求和適用法律。最後請注意，除非另有說明，本次電話會議中提及的所有數據均以人民幣為單位，比較對象為同比數據。

It is now my pleasure to introduce our Chairman and Chief Executive Officer, Mr. Vincent Qiu. Vincent, please go ahead.

現在我很高興介紹我們的董事長兼首席執行官 Vincent Qiu 先生。文森特，請繼續。

Thank you, Wendy. Hello, everyone. And thank you all for your time. Despite the ongoing challenging environment, we are encouraged with resilience of business. As shown on Slide #2. The addition we deliver double digit growth in several categories, including luxury, fashion apparel, and FMCG. Moreover, digital marketing and IT solutions revenue increased by 22%. Well, product sales continue to decline as planned as we keep optimizing distribution model. Service revenue grows 4% year-over-year.

謝謝你，溫迪。大家好。謝謝大家的寶貴時間。儘管環境持續充滿挑戰，但我們對業務的韌性感到鼓舞。如幻燈片 #2 所示。此外，我們在多個類別中實現了兩位數的增長，包括奢侈品、時尚服裝和快速消費品。此外，數字營銷和 IT 解決方案收入增長了 22%。那麼，隨著我們不斷優化分銷模式，產品銷量繼續按計劃下降。服務收入同比增長 4%。

Business development during the quarter was on track with a net addition of 7 brand partners of store operations. For existing client base, it's worth note nothing that our business development also speaks to higher engagement in company channel and more value-added services. Our integrated omni-channel operations help brands to timely identify evolving e-commerce trends, thus enhancing resource allocation efficiency.

本季度的業務發展步入正軌，門店運營品牌合作夥伴淨增7家。對於現有的客戶群，值得注意的是我們的業務發展也意味著更高的公司渠道參與度和更多的增值服務。我們整合的全渠道運營幫助品牌及時識別不斷變化的電子商務趨勢，從而提高資源配置效率。

During the quarter, over 42% of our brand engaged with us on an omni-channel approach. We continuously develop new features and tools to augment bundle the value-added service. This quarter, we launched the short video cleaning tool, which automatically converts long video or live streaming record to short videos. We also co-developed with a market place an AI-based outbound calling system to make proactive communications to targeted brand customers. This helps us with better purchase frequency and conversion. We expanded the regional service centers to more sites recently and added new scope to them, supported by our customer service management systems or semi as a backbone. We improved not only service quality but also efficiency. The new module named S-ANY, which means even anywhere has been developed and reported on to S-ANY centrally managed content creation tool during the quarter.

在本季度，超過 42% 的品牌通過全渠道方式與我們互動。我們不斷開發新的功能和工具來增強捆綁增值服務。本季度，我們推出了短視頻清理工具，可以自動將長視頻或直播記錄轉換為短視頻。我們還與市場共同開發了基於人工智能的外呼系統，以主動與目標品牌客戶進行溝通。這有助於我們提高購買頻率和轉化率。我們最近將區域服務中心擴展到更多站點，並為其增加了新的範圍，由我們的客戶服務管理系統或 semi 作為骨干支持。我們不僅提高了服務質量，還提高了效率。名為 S-ANY 的新模塊，這意味著甚至在本季度已開發並報告給 S-ANY 集中管理的內容創建工具。

Despite the short-term headwinds from macro environment, we are glad to see that brand partners still take China as one of the most critical markets with a lot of potential. We continue to see a trend of digital transformation such as the rapid convergence between online and offline or OMO continues. Along with the digital transformation trend and the emphasis on our China for China strategy, where are investing in IT solutions for the long term. As such, our technology-related revenue sees notable growth with a sound pipeline for additional growth. In light of the strong demand, we officially launched a BOCDOP, a Baozun omni-channel digital operation platform, a package solution with powerful customization capabilities.

儘管宏觀環境存在短期逆風，但我們很高興看到品牌合作夥伴仍然將中國視為最重要的市場之一，潛力巨大。我們繼續看到數字化轉型的趨勢，例如線上和線下之間的快速融合或 OMO 持續。隨著數字化轉型趨勢和我們對 China for China 戰略的重視，我們正在對 IT 解決方案進行長期投資。因此，我們與技術相關的收入有了顯著增長，並有良好的額外增長渠道。針對旺盛的需求，我們正式推出寶尊全渠道數字化運營平台BOCDOP，這是一套具有強大定制能力的一攬子解決方案。

BOCDOP in a center on multiple channel order fulfillment and deliveries power for omni-channel D2C, data intelligence and decision support functionalities to our brand partners. Following many years of non-stock investment in technology, we started expanding upstream in recent years and target to evolve into a technology-driven omni-channel commerce player. Early this November, we announced our acquisition of GAAP Grade China, one of the largest American specialty apparel brands. Along with acquisition, we launched the Baozun brand management, a new line of business that we see as a strategic addition that naturally flows from our core e-commerce service and technology offering.

BOCDOP 以多渠道訂單履行為中心，為我們的品牌合作夥伴提供全渠道 D2C、數據智能和決策支持功能。經過多年的非股票技術投資，我們近年來開始向上游擴張，目標是發展成為技術驅動的全渠道商業公司。今年 11 月初，我們宣布收購美國最大的專業服裝品牌之一 GAAP Grade China。在收購的同時，我們推出了寶尊品牌管理，這是一個新的業務線，我們將其視為一項戰略補充，自然而然地源自我們的核心電子商務服務和技術產品。

The acquisition is a good fit to develop BBM since we have worked with the brand for many years. We love it and we believe in it. It has only been a few weeks since our announcement, and we are still in the process of finalizing the acquisition. It is encouraging that since of news with our name, many other brands have come to us to discuss about China for China strategy and about our technology-driven approach. It has become obvious that our brand management offering clearly can add more to our value proposition, and it differentiates us from traditional service providers. While it will make time -- 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 integrating offline and online commerce will make brands unique and much more successful than before.

此次收購非常適合發展 BBM，因為我們與該品牌合作多年。我們喜歡它，我們相信它。自我們宣布以來只有幾週時間，我們仍在完成收購的過程中。令人鼓舞的是，自從我們的名字出現後，許多其他品牌都來找我們討論中國戰略和我們的技術驅動方法。很明顯，我們的品牌管理服務顯然可以為我們的價值主張增加更多，並且它使我們有別於傳統服務提供商。雖然這需要時間——完全實現我們的願景需要時間和努力，但我們相信，對供應價值鏈的閉環需求以及線下和線上商務的整合將使品牌變得獨一無二，並且比以往更加成功。

I shall now hand over the call to Arthur to go over our financials. Thank you.

我現在將電話轉交給亞瑟，讓他檢查我們的財務狀況。謝謝你。

Okay. Thank you, Vincent, and hello, everyone. Please turn to Slide 4. During the quarter, our total GMV increased by 16% to RMB 18.6 billion, mainly due to outstanding performance of one leading electronics brand. Excluding this brand, the adjusted GMV would have been flat on a year-over-year basis. Total revenues declined by 8% to RMB 1.7 billion of rate product sales declined by 29%, while service revenue increased by 4% compared with the same period of last year.

好的。謝謝你，文森特，大家好。請轉到幻燈片 4。本季度，我們的總 GMV 增長了 16% 至人民幣 186 億元，這主要是由於一個領先的電子品牌的出色表現。排除該品牌，調整後的 GMV 同比持平。總收入下降8%至人民幣17億元，利率產品銷售額下降29%，服務收入同比增長4%。

Now let's turn to Slide #5 for a breakdown of revenue. Despite a decline in total revenue, several categories, including apparel and FMCG achieved double-digit growth. The value-added services has shown more resilience in this quarter, where digital marketing and IT solutions increased by 22%, and warehousing and fulfillment service revenue declined by only 7%. Overall, the contribution from value-added service increased to 23% of total revenue in this quarter.

現在讓我們轉到幻燈片 #5 了解收入明細。儘管總收入下降，但包括服裝和快速消費品在內的多個品類實現了兩位數的增長。增值服務在本季度表現出更強的彈性，其中數字營銷和 IT 解決方案增長了 22%，而倉儲和履行服務收入僅下降了 7%。總體而言，本季度增值服務對總收入的貢獻增加至 23%。

Please turn to Slide #6. In this quarter, our cost of products decreased by 30% to RMB 45 million, mainly due to continued efforts in optimizing product sales business. As a result despite a reduction of 29% in product sales revenue, the gross margin for product sales improved by 175 bps to 16.6%. Moreover, our overall gross margin improved by 800 bps to 76.2% driven by a combination of a higher service revenue mix and improving gross profit margin.

請轉到幻燈片#6。本季度，我們的產品成本下降了30%至人民幣4,500萬元，主要是由於持續優化產品銷售業務。因此，儘管產品銷售收入減少了 29%，但產品銷售毛利率提高了 175 個基點至 16.6%。此外，由於更高的服務收入組合和提高的毛利率，我們的整體毛利率提高了 800 個基點，達到 76.2%。

Now turning to Slide #7. Our non-GAAP income from operations was RMB 17 million during the quarter, representing a non-GAAP operating profit margin of 1%. Non-GAAP net income was breakeven this quarter, mainly impacted by unfavorable exchange rate movements. Once again, we have prepared waterfall diagrams depicting our analysis of how our top line and bottom line evolved year-over-year. As a reminder, this analysis is unaudited and should solely used as supporting members to aid discussion.

現在轉到幻燈片#7。本季度我們的非美國通用會計準則營業收入為人民幣 1700 萬元，相當於 1% 的非美國通用會計準則營業利潤率。本季度非 GAAP 淨收入實現盈虧平衡，主要受不利匯率變動的影響。我們再次準備了瀑布圖，描述我們對我們的收入和利潤如何逐年演變的分析。提醒一下，此分析未經審計，應僅用作支持成員以幫助討論。

First, on Slide #8. This diagram shows our net revenue work from 3/4 2021 to 3/4 2022. In red, you can see the biggest item impacting our revenue this quarter was product sales, as we continued our efforts to optimize low-quality distribution revenue. Revenue from DM and IT services, which we view as value-added services grew by 22% this quarter. Revenue from warehouse and logistics declined by 7%, mainly due to our decision to devise a subsidiary in the business, which I will address more later. Excluding such investment, revenue from warehouse and logistics should have been a slight increase year-over-year. On a positive note, this initiative led to better profitability.

首先，在幻燈片 #8 上。該圖顯示了我們從 2021 年 3 月 4 日到 2022 年 3 月 4 日的淨收入工作。在紅色部分，您可以看到本季度影響我們收入的最大項目是產品銷售，因為我們繼續努力優化低質量的分銷收入。本季度來自 DM 和 IT 服務的收入增長了 22%，我們將其視為增值服務。來自倉儲和物流的收入下降了 7%，這主要是由於我們決定在該業務中設立一家子公司，我將在稍後詳細說明。剔除此類投資，倉儲物流收入同比略有增長。從積極的方面來看，這一舉措帶來了更好的盈利能力。

Now please turn to Slide #9 for the indicative work of non-GAAP operating profits. As mentioned earlier, the combination of higher COVID-related costs and general operating deleverage due to lower revenue resulting in less profit for online store operation businesses, generally across all categories. However, a show non-GAAP operating profit from digital marketing and IT improved by RMB 30 million year-over-year. In addition, the optimization of low-quality distribution business contributed RMB 3 million and profits from warehouse and logistics business improved slightly by RMB 1 million. We also generated a positive savings of RMB 3 million from back-office cost optimization.

現在請轉到幻燈片 #9，了解非 GAAP 營業利潤的指示性工作。如前所述，較高的 COVID 相關成本和較低的收入導致的一般運營去槓桿化相結合，導致在線商店運營業務的利潤減少，通常在所有類別中。然而，來自數字營銷和 IT 的非美國通用會計準則營業利潤同比增長了 3000 萬元人民幣。此外，劣質配送業務優化貢獻300萬元，倉儲物流業務利潤微增100萬元。我們還通過後台成本優化節省了 300 萬元人民幣。

In cost optimization, we continue to gain higher efficiency by centralizing our operating capabilities, Russian rising incentives and consolidating office footprint. More significantly, this quarter, we selected small cities such as (inaudible), Chengdu and [Antin] to expand the scope and scale of our regional service center.

在成本優化方面，我們通過集中我們的運營能力、俄羅斯不斷增加的激勵措施和鞏固辦公室足跡，繼續獲得更高的效率。更重要的是，本季度，我們選擇了（聽不清）、成都和[安田]等小城市來擴大我們區域服務中心的範圍和規模。

Now approximately 60% of our customer service staff are allocated in regional service centers. By placing customer service staff in regional centers, increased service flexibility and agility to better cope against Huawei's induced topline. Moreover, we expanded beyond customer service and added more operating functions at regional service centers and live stream studios.

現在我們大約60%的客戶服務人員被分配到區域服務中心。通過將客戶服務人員安置在區域中心，提高了服務的靈活性和敏捷性，以更好地應對華為誘導的收入。此外，我們在客戶服務之外，在區域服務中心和直播間增加了更多的運營功能。

We also further deepened our cooperation with Cainiao to leverage (inaudible) established infrastructure and network. As you may recall, in the second quarter, we began to manage Cainiao's warehouses in the apparel category. Got business referrals in luxury and premium sectors and also launched the small solution for some of our key sports ware brands. Motivated by this -- by the synergies and after further careful evaluation, we decided to reduce our shareholding of Baobida, a last-mile delivery agency to minimize duplication with Cainiao. As you may recall, last year, priority to our strategic alliance was Cainiao, we invested into Baobida to expand our logistics capabilities. However, now with Cainiao's aligns, we decided to (inaudible) our investors to a minority holding in Baobida.

我們還進一步加深了與菜鳥的合作，以利用（聽不清）已建立的基礎設施和網絡。大家可能還記得，在二季度，我們開始在服裝品類上管理菜鳥的倉庫。獲得了奢侈品和高端行業的業務推薦，並為我們的一些主要運動用品品牌推出了小型解決方案。受此激勵——基於協同效應，在進一步審慎評估後，我們決定減持最後一公里配送公司寶必達的股權，以盡量減少與菜鳥的重複。你可能還記得，去年我們戰略聯盟的重點是菜鳥，我們投資了寶必達，以擴大我們的物流能力。然而，現在與菜鳥結盟，我們決定（聽不清）我們的投資者持有寶必達的少數股權。

Now turning to Slide #10 about our cash flow. As of September 30, 2022, our cash and cash equivalents totaled RMB 2.9 billion. In light of macro uncertainty, we continue to improve working capital efficiency. During the quarter, we launched new initiatives to further advance our (inaudible) process to improve inventory management, billing and collected activities. Historically, in order to prepare for the Double 11 festival, the first quarter typically require peak operating cash flow. This third quarter benefiting from the program in our inventory procurement planning, we were able to narrow the operating cash outflow to only RMB 113 million compared with RMB 74 million a year ago. During the quarter, we repurchased approximately 700,000 ADS for approximately USD 6.1 million. To date, with our share buyback effort, we repurchased a cumulative total of USD 68 million in the last 9 months.

現在轉到幻燈片 #10，了解我們的現金流。截至 2022 年 9 月 30 日，我們的現金及現金等價物總額為人民幣 29 億元。鑑於宏觀不確定性，我們繼續提高營運資金效率。在本季度，我們推出了新舉措，以進一步推進我們的（聽不清）流程，以改善庫存管理、計費和收集活動。從歷史上看，為了備戰雙十一，一季度通常需要運營現金流高峰期。第三季度，受益於我們庫存採購計劃的計劃，我們能夠將經營現金流出從一年前的人民幣 7,400 萬元縮減至人民幣 1.13 億元。本季度，我們以約 610 萬美元的價格回購了約 700,000 份美國存託憑證。迄今為止，通過我們的股票回購努力，我們在過去 9 個月累計回購了 6800 萬美元。

Lastly, the voluntary conversion into a primary listing status on the main board of the stock exchange of Hong Kong Limited became effective on the 1st of November. Baozun is now a due primary leasing company on both Hong Kong Stock Exchange and the Nasdaq Global Select market. This marks a significant milestone in our capital market journey. Overall, our effectiveness in maintaining operations and supporting our partners' success during this period of macro uncertainty understand the durability and strength of our business model. Throughout this year, we prioritized the cost transformation and working capital efficiency and our efforts are bearing fruits in terms of higher gross margin, lower operating expense and better cash flows. The establishment of Baozun brand management, along with the acquisition of cash grade China will provide us with good opportunity for future growth.

最後，自願轉換為香港聯合交易所有限公司主板第一上市地位於11月1日生效。寶尊現已成為香港聯交所和納斯達克全球精選市場的主要租賃公司。這標誌著我們資本市場之旅的一個重要里程碑。總的來說，我們在這個宏觀不確定時期維持運營和支持合作夥伴成功的有效性理解我們商業模式的持久性和優勢。今年全年，我們將成本轉型和營運資本效率放在首位，我們的努力在更高的毛利率、更低的運營費用和更好的現金流方面取得了成果。寶尊品牌管理的建立，以及現金等級中國的收購將為我們提供未來增長的良好機會。

This is my financial review section, and that concludes our prepared remarks. Thank you. Operator, we are now ready to begin the Q&A session.

這是我的財務回顧部分，總結了我們準備好的評論。謝謝你。接線員，我們現在準備開始問答環節。

(Operator Instructions) Our first question comes from the line of Alicia Yap from Citi.

（操作員說明）我們的第一個問題來自花旗的 Alicia Yap。

I have 2 questions. First, if management can share with us any preliminary color that you are seeing in terms of the consumption sentiment and across all the channels post a single stage. So in relation to that, how should we think about the overall GMV and revenue growth for the fourth quarter? And if management also have any preliminary view on the 2023 outlook.

我有兩個問題。首先，如果管理層可以與我們分享您在消費情緒方面看到的任何初步顏色，並且在所有渠道發布一個階段。那麼與此相關的是，我們應該如何看待第四季度的整體 GMV 和收入增長？如果管理層對2023年的前景也有任何初步看法。

Second question is your digital marketing and IT solution is actually doing pretty well. If you can elaborate a little bit what type of the brand's customer and the operation metrics like the take rate that you can share with us related to this service? And will this revenue line continue to deliver decent growth in the coming quarters? So how should we think about that?

第二個問題是您的數字營銷和 IT 解決方案實際上做得很好。如果您能詳細說明一下品牌的客戶類型和運營指標，例如您可以與我們分享與此服務相關的採用率？這條收入線會在未來幾個季度繼續實現可觀的增長嗎？那麼我們應該如何考慮呢？

Okay. Thank you, Alicia. So maybe, Tracy can comment on the Double 11 performance and the consumption segment. And I can answer about the view of Q4 and next year. If that's okay? Tracy?

好的。謝謝你，艾麗西亞。所以也許，Tracy 可以評論一下雙11 的表現和消費部分。我可以回答關於第四季度和明年的觀點。如果這樣可以嗎？特蕾西？

No problem. Thanks for the question. I think right now, the China consumer is still very largely impact from the COVID-19 and also you can see in recent 2 months, actually from the logistics point of view, there's still a lot of lockdown and the impact on that. But on the Double 11 number, we can see the overhead number is still under pressure, which means there is no big increase. But the (inaudible) is a very important window we see the trends on different categories. So on that part, actually, I can summarize some of the observation from our core from our BI system and also from the public system. We see from the consumption trend, the upward consumption, home improvement, self-scale and the sports lifestyle are the 4 heated schemes.

沒問題。謝謝你的問題。我認為現在，中國消費者仍然在很大程度上受到 COVID-19 的影響，而且最近 2 個月你也可以看到，實際上從物流的角度來看，仍然有很多封鎖及其影響。但是在雙11號上，我們可以看到架空號還是有壓力的，也就是說沒有大的增長。但是（聽不清）是一個非常重要的窗口，我們可以看到不同類別的趨勢。因此，實際上，在這一部分，我可以總結我們的 BI 系統和公共系統的核心觀察結果。從消費趨勢來看，向上消費、家裝、自我縮放和運動生活方式是4大熱點。

Take the sport lifestyle scheme for example, the sales of the category outdoor, sports equipment, huger and also the sports footwear were listed by range from 28% to 9% year-on-year increase representative. And also, you can see the fitness mountain climbing, skinny, urban sports, camping, and the running and basketball contributes most of the category. And also, we can see the luxury and also previous screwy bags and luggage has been several -- I mean a few of the categories are still reached steady growth in the past 4 quarters.

以運動生活方式方案為例，戶外類目、運動裝備類、運動鞋類以及運動鞋類的銷售額均以28%至9%的同比增幅為代表。此外，您還可以看到健身登山、瘦身、城市運動、露營以及跑步和籃球貢獻了大部分類別。而且，我們可以看到奢侈品和以前的螺絲包和行李箱已經有好幾個——我的意思是，在過去的四個季度中，一些類別仍然實現了穩定增長。

So I think among these 4 areas, we still can see the opportunity for next year. But also, there are also down trends category like the fashion accessories and also men's and women's footwear. And this has been reflected over 2 or 3 quarters decline in most of the daily sales and the big promotion. So for all of those part, we still need a steady growth way to sickout.

所以我覺得在這4個方面，明年還是可以看到機會的。而且，還有流行趨勢類別，例如時尚配飾以及男女鞋類。這已經反映在大部分日常銷售額和大型促銷活動中超過 2 或 3 個季度的下降。因此，對於所有這些部分，我們仍然需要一種穩定增長的方式來病假。

And besides the category shift, I think we also see the platform pay more attention on the user retention and the acceleration of private domain (inaudible) new business incrementals like Alisports (inaudible) and doing newly added store member enrollment benefits, the membership compound and membership gifts. And all of this have gave our potential to collaborate brands and platform together on the digital marketing and also interactive technology related. So I think on that part, we can back to other parts to talk about our next year's plan, yes.

除了品類轉移，我認為我們還看到平台更注重用戶留存和加速私域（聽不清）新業務增量，如阿里體育（聽不清）和新增加的商店會員註冊福利，會員複合和會員禮物。所有這些都給了我們在數字營銷和互動技術相關方面合作品牌和平台的潛力。所以我認為在這一部分，我們可以回到其他部分來討論我們明年的計劃，是的。

Okay. Thank you, Tracy. In regarding to the Q4 outlook, our current view is from the GMV perspective. We see some good momentum in electronics and FMCG. But we also see some strong headwinds in terms of the apparel and sportswear. So overall, we believe our Q4 GMV will be in line with the market, which is likely to be flat year-over-year. In terms of the revenue, at this moment, we still see the optimization of the low-quality product sales will continue unless the market sentiment pick up. So from a revenue perspective, we think there will be a low decline year-over-year. The main contributor factor is the product sales, which we continue to optimize.

好的。謝謝你，特蕾西。關於第四季度的展望，我們目前的觀點是從 GMV 的角度來看。我們在電子產品和快速消費品領域看到了一些良好的勢頭。但我們也看到了服裝和運動服方面的一些強勁逆風。所以總的來說，我們相信我們的第四季度 GMV 將與市場保持一致，這可能與去年同期持平。在收入方面，目前我們仍然看到低質量產品銷售的優化將繼續，除非市場情緒回暖。因此，從收入的角度來看，我們認為同比下降幅度較小。主要貢獻因素是產品銷售，我們將繼續優化。

In terms of the next year, I think it's a little bit too early to comment because there are still some very big factor, which is in the overall micro kind of condition and also the COVID policy. But our view for next year from a current perspective is conservative. And we want to plan on a conservative basis for the next year as well, i.e., to focus on the quality inside of focus on the growth.

就明年而言，我認為現在評論還為時過早，因為還有一些非常大的因素，即整體微觀條件和 COVID 政策。但從目前的角度來看，我們對明年的看法是保守的。我們也想在保守的基礎上計劃明年，即關注增長的內部質量。

But on the -- on your second question, Alicia, regarding the digital marketing and IT solutions, i.e., overview on the value-added service. I think that's one of the areas we see there's a quite strong momentum from our client base. So basically, at this moment, our brand partners start to focus on the medium- and long-term investments of the business in China. So therefore, we have seen a strong kind of the pipeline from the value-added service like the IT solutions like the digital marketing and the market-related kind of proposals from our offerings.

但是關於 - 關於你的第二個問題，Alicia，關於數字營銷和 IT 解決方案，即增值服務的概述。我認為這是我們看到客戶群勢頭強勁的領域之一。所以基本上，在這個時候，我們的品牌合作夥伴開始關注在中國業務的中長期投資。因此，我們從增值服務中看到了強大的渠道，例如數字營銷等 IT 解決方案以及我們產品中與市場相關的提案。

So we think that will continue. And given the investments into the technology in the last few years, I think Baozun is well positioned to take on those opportunities at the current market situation.

所以我們認為這會繼續下去。鑑於過去幾年對該技術的投資，我認為寶尊在當前市場形勢下完全有能力抓住這些機會。

We will take our next question. Our next question comes from the line of Charlie Chen from China Renaissance.

我們將回答下一個問題。我們的下一個問題來自華興資本的Charlie Chen。

I got 2 questions here. The first one is regarding the GMV combination. So I can see in this quarter, the GMV contribution from non-Tmall channel seems to be a little bit lower than last year, 4-Q 2021. So can you explain what's the rationale and background behind this? And what's the long-term goal of this GMV growth between Tmall and non-Tmall channel? That's the first question.

我在這裡有 2 個問題。第一個是關於GMV組合。所以我可以看到在本季度，非天貓渠道的 GMV 貢獻似乎比去年 2021 年第四季度略低。那麼你能解釋一下這背後的理由和背景嗎？天貓和非天貓渠道GMV增長的長期目標是什麼？這是第一個問題。

And the second question is regarding the GAAP acquisition as well as the whole restructuring. So can you give us more color about the progress after you acquired announced the acquisition of GAAP. And also, I can see Baozun seems to be transforming from a pure marketing agency to a more comprehensive service company. So how do you expect the length of this transition period? When do you see the synergies or integration should be completed and we can see some results or impact going forward?

第二個問題是關於 GAAP 收購以及整個重組。那麼，在你宣布收購 GAAP 之後，你能否給我們更多關於進展的顏色。而且，我看到寶尊似乎正在從一個單純的營銷機構向一個更綜合的服務公司轉型。那麼您如何看待這個過渡期的長度？您認為什麼時候應該完成協同作用或整合，我們可以看到一些結果或影響？

(technical difficulty)

（技術難度）

Actually, how about Charlie, do you have to talk about the brand management for the second question? Maybe [Sandrine], can you take this one when we tie together this is ready.

其實，查理呢，第二個問題是不是要談品牌管理？也許 [Sandrine]，當我們捆綁在一起時，你能拿走這個嗎？這個已經準備好了。

Yes, sure. Hello, Charlie. This is Sandrine. Thank you for your question.

是的，當然。你好，查理。這是桑德琳。謝謝你的問題。

So it's about 3 weeks, we have signed with (inaudible), we have not (technical difficulty) the acquisition (inaudible) happen and generally, if everything goes smoothly on the approval procedure. So we are very mobilized in the corporation, which now focuses on really taking a deep dive with a different GAAP function to enable a deeper (inaudible) operation today and (inaudible). And then based on this we will be able to pretty much more detail.

所以大約 3 週，我們已經與（聽不清）簽約，我們還沒有（技術困難）收購（聽不清）發生，一般來說，如果批准程序一切順利的話。因此，我們在公司中非常動員，現在專注於真正深入研究不同的 GAAP 功能，以實現更深入的（聽不清）今天和（聽不清）的操作。然後基於此，我們將能夠了解更多細節。

But still I understand you want to have it bit of color. So for the time being, what we are learning from the feedback confirming what we were seeing in the -- what we're seeing here in the (inaudible). That the one hand, there will be some quick wins in terms of a bit of a restructuring and cost cutting, mainly can the fact that we are now managing from (inaudible) we're now managing from China, a Chinese company. And then going forward, as we mentioned earlier, we see some real (inaudible) around product that can be (inaudible) relevant way. And as you may remember, we have full free on the supply chain.

但我仍然理解你想要它有點顏色。因此，就目前而言，我們從反饋中學到的東西證實了我們在 - 我們在這裡看到的（聽不清）。一方面，在一些重組和削減成本方面會有一些快速的勝利，主要是因為我們現在正在管理（聽不清）我們現在正在管理一家中國公司的中國。然後向前看，正如我們之前提到的，我們看到一些真實的（聽不清）圍繞產品可以（聽不清）相關的方式。您可能還記得，我們在供應鏈上完全免費。

The supply chain is ours, so we can really improve the speed market reactivity to trends and also bring some elements that are more locally relevant to in the product design and development. That's one aspect.

供應鍊是我們的，所以我們可以真正提高市場對趨勢的反應速度，並在產品設計和開發中引入一些與當地更相關的元素。這是一方面。

The other aspect is ready to work and actually, the first one, we're also trending to date, to work on the gross margin and reduce the discount level, which are in our view, too high today. And we believe that by differentiating products by channels, which is not really done today, we can really improve the (inaudible).

另一個方面已經準備好工作，實際上，第一個方面，我們迄今為止也傾向於在毛利率上工作並降低折扣水平，我們認為今天的折扣水平太高了。我們相信，通過渠道區分產品，這在今天還沒有真正做到，我們可以真正改善（聽不清）。

The third aspect, which would be (inaudible) is for us to revamp the current portfolio of stores. So it's not a about opening many more stores (inaudible) going to be really to make the current stores both in terms of (inaudible) and in terms of operations much better than what we have today. So this is pretty as much cover I can give to the based. With all this, financially, we think that it can translate into a very significant reduction of the loss in '23. We consider that loss can be reduced by (inaudible) it be in '22. Then we will see a further reduction of loss in '24 in order to reach breakeven point in '25 and profit in '26. So that is for GAAP. And I would leave it to Wendy to allocate the other questions to add some other people.

第三個方面（聽不清）是我們要改造當前的商店組合。因此，這並不是要開設更多的商店（聽不清），而是要真正使當前的商店在（聽不清）和運營方面都比我們今天擁有的更好。所以這幾乎是我可以為基地提供的掩護。有了這一切，在財務上，我們認為它可以轉化為 23 年損失的非常顯著的減少。我們認為損失可以減少（聽不清）它是在 22 年。然後我們將看到 24 年的虧損進一步減少，以在 25 年達到盈虧平衡點並在 26 年實現盈利。這就是 GAAP。我會留給 Wendy 分配其他問題以添加其他人。

Okay. Thanks Sandrine. Charlie, let me maybe answer your question on the Tmall. So the trends you have seen is actually impacted by a major electronics brands outperforming in 3/4. So if we -- excluding the increase of this one single brand, our Tmall percentage has actually dropped a non-Tmall has increased by a single digit. So that's the true reflection of what's going on in the non-Tmall channel. And in addition, our omni-channel strategy is actually not ways of purpose to push the people from the Tmall to a non-Tmal channel. It's actually to encourage people to go for the omni-channel, which has increased the stickiness and to a more value-added service from Baozun to the client.

好的。謝謝桑德琳。查理，也許讓我在天貓上回答你的問題。因此，您所看到的趨勢實際上受到了 3/4 表現出色的主要電子品牌的影響。因此，如果我們 - 排除這個單一品牌的增長，我們的天貓百分比實際上下降了一個非天貓增加了一位數。所以這就是非天貓渠道正在發生的事情的真實反映。此外，我們的全渠道戰略實際上並不是將人們從天貓推向非天貓渠道的目的。其實就是鼓勵大家走全渠道，增加了粘性，也讓寶尊給客戶提供了更多的增值服務。

So by this quarter, we have 42% of our total brand partners through spoken to operate of omni-channel holder. So this is our current situation. Thank you.

因此，到本季度，我們有 42% 的品牌合作夥伴通過全渠道持有人的口頭操作。所以這就是我們目前的情況。謝謝你。

We will take our next question. Our next question comes from the line of Thomas Chong from Jefferies.

我們將回答下一個問題。我們的下一個問題來自 Jefferies 的 Thomas Chong。

I have 2 questions. My first question is, could management share some color about change of domestic versus international brands? And my second question is, could management share some updates about the cooperation with Cainiao and (inaudible) about expansion into Southeast Asia market?

我有兩個問題。我的第一個問題是，管理層能否就國內品牌與國際品牌的變化分享一些色彩？我的第二個問題是，管理層能否分享一些關於與菜鳥合作的最新消息，以及（聽不清）關於向東南亞市場擴張的消息？

Okay. So Tracy, if you can take the first one, then I will take the second one.

好的。所以 Tracy，如果你能接受第一個，那麼我會接受第二個。

Sure. No problem. Thanks for the question. I think in terms of the -- to win in the consumer side, I think they're facing the same pressure no matters following our local brands, how to solve the short-term problem and how to invest in longer program to win (inaudible). But for the online segments, we can see actually most of the players are still emphasizing the importancy of the online part because of the relatively for store performance in recent quarters. So right now, actually, we are working with our brand partners to come out with a 3-year plan to talk about how to connect with their consumers directly and then how to allocate their budgets smartly, I mean, cross-channel and also to reach the direct communication with the consumer.

當然。沒問題。謝謝你的問題。我認為，就贏得消費者方面而言，我認為他們面臨著同樣的壓力，無論是跟隨我們的本地品牌，如何解決短期問題以及如何投資更長期的計劃來取勝（聽不清).但是對於在線部分，我們可以看到實際上大多數玩家仍然強調在線部分的重要性，因為最近幾個季度的商店表現相對而言。所以現在，實際上，我們正在與我們的品牌合作夥伴合作制定一個 3 年計劃，討論如何直接與他們的消費者聯繫，然後如何巧妙地分配他們的預算，我的意思是，跨渠道以及達到與消費者的直接溝通。

And also from the -- for the local brands part, we are -- we are very likely to share. We have some break during the past few months to seek the collaboration opportunity in professional way areas like IT service, content marketing, an interactive marketing technology and the consumer customer service. I think in the longer run, the professional in specific areas still will be the win in the service market.

而且對於本地品牌而言，我們也很可能會分享。在過去的幾個月裡，我們有一些休息時間，在 IT 服務、內容營銷、互動營銷技術和消費者客戶服務等專業領域尋求合作機會。我認為從長遠來看，特定領域的專業仍然是服務市場的製勝法寶。

Okay. Thank you, Tracy. In regarding to the Cainiao, we have continued our good progress in terms of catching the synergy. So as we mentioned in the past, we see the synergy coming from 3 areas. So the first one is join BD. So where is the Cainiao and Alibaba ecosystem, we would be able to -- I mean, we are seeing some additional BD opportunity coming in from the ecosystem. So which is hoping both Baozun logistics and also Baozun as whole to conduct new business.

好的。謝謝你，特蕾西。在菜鳥方面，我們在抓住協同效應方面繼續取得良好進展。因此，正如我們過去提到的，我們看到來自 3 個領域的協同作用。所以第一個是加入BD。那麼菜鳥和阿里巴巴生態系統在哪裡，我們能夠——我的意思是，我們看到生態系統帶來了一些額外的 BD 機會。所以希望無論是寶尊物流，還是寶尊整體，都能夠開展新的業務。

The second one, we see is actually to utilizing the scale and even structure of Cainiao. So basically, in terms of the warehousing and in terms of the last-mile delivery Cainiao style has provided a very good kind of support for us to get more resource. And finally, we see as the technology enhancement basically previously, is actually Baozun makes the investment into the technology on the logistics part. And now we can utilize the Cainiao network on the technology enhancement like [RFIED] technology, which is giving us more efficiency when we operate in the warehouse. So overall, we think we are in the good trend with our alliance with Cainiao.

第二個，我們看到其實是在利用菜鳥的規模和結構。所以基本上，在倉儲和最後一英里交付方面，菜鳥風格為我們獲得更多資源提供了很好的支持。最後，我們之前基本上看到的技術提升，實際上是寶尊在物流部分對技術的投資。現在我們可以利用菜鳥網絡進行技術增強，比如[RFID]技術，這讓我們在倉庫操作時效率更高。所以總的來說，我們認為我們與菜鳥的聯盟處於良好趨勢。

In terms of the Southeast Asia expansion, we are continuing to focus on building our own capability in that region. And also our approach is trying to replicate some best practice and take the learnings we have from operating the e-commerce in China. But also our approach in the Southeast Asia is to what closely (inaudible) ran to grow the e-commerce offering in that region. So while we have made more progress, we will come to report back to the market.

在東南亞擴張方面，我們將繼續專注於在該地區建立自己的能力。此外，我們的方法是嘗試複製一些最佳實踐，並吸取我們在中國經營電子商務的經驗教訓。但我們在東南亞的方法也是密切關注（聽不清）在該地區發展電子商務產品。因此，當我們取得更多進展時，我們會回來向市場報告。

We will take our next question. Our next question comes from the line of [Wang Del] from CICC.

我們將回答下一個問題。我們下一個問題來自中金公司【王德爾】的專線。

We noticed that the number of brand partners for store operations increased. As the macro environment is weak, could you please share something about customer acquisition strategy used in this quarter? And could you please share some details from the new brand partners such as the industry, scale and the main channels we help them to operate?

我們注意到門店運營的品牌合作夥伴數量有所增加。由於宏觀環境疲軟，您能否分享一下本季度使用的獲客策略？能否分享一下新品牌合作夥伴的行業、規模、我們幫助他們運營的主要渠道等細節？

Okay. Tracy, would you like to take (inaudible)? And then I can maybe add on more color after you.

好的。特蕾西，你想接受（聽不清）嗎？然後我也許可以在你之後添加更多顏色。

Sure. Thanks for the question. For the last quarter, actually, most of our new wins focusing on our new revenue source, which is the IT client and also digital marketing clients. And you can see actually, they are combined with our emerging category like our CC category and also the luxury category. So which indicates actually our strategy on the one-stop solution, which means we come -- actually, we start from the operation, but we extended our service to other part strategy works. And you can see actually in this market, we can see some of our clients actually invest a lot in the long-term strategy, including the interactive marketing and also your data and also infrastructure set up. Yes.

當然。謝謝你的問題。實際上，在上個季度，我們的大部分新勝利都集中在我們的新收入來源上，即 IT 客戶和數字營銷客戶。實際上，您可以看到，它們與我們的新興類別（例如我們的 CC 類別）以及奢侈品類別相結合。所以這實際上表明我們在一站式解決方案上的戰略，這意味著我們來了 - 實際上，我們從運營開始，但我們將服務擴展到其他部分戰略工作。你可以在這個市場上看到，我們可以看到我們的一些客戶實際上在長期戰略上投入了大量資金，包括互動營銷以及你的數據和基礎設施建設。是的。

Arthur, do you have any other entry question -- answer for this?

亞瑟，你還有其他入門問題嗎？請回答這個問題？

No, I think another thing I would like to add is in terms of the value-added service, we are utilizing the omni-channel and also utilizing the foundation we have built over the time, (inaudible) also the new business coming in the next few quarters. That's it.

不，我想我想補充的另一件事是在增值服務方面，我們正在利用全渠道並利用我們長期以來建立的基礎，（聽不清）還有新業務即將到來接下來的幾個季度。而已。

(Operator Instructions) The next question comes from the line of [Ki Fang Yang] from [Guangfa] Securities.

（操作員說明）下一個問題來自[廣發]證券[Ki Fang Yang]的專線。

So I have 2 questions. The first one is about the Luxury revenue has reached back growth during the past quarter. So could you please elaborate over on the future strategies for expanding the luxury category? Also do you have a certain benchmark percentage of luxury categories contributed to the revenue? My second question is, do you have the investment strategy for the 2023?

所以我有兩個問題。第一個是關於奢侈品收入在上個季度恢復增長。那麼能否請您詳細介紹一下未來擴大奢侈品品類的策略？另外，您是否有一定比例的奢侈品類別對收入的貢獻？我的第二個問題是，你們有 2023 年的投資策略嗎？

Okay. Let me answer your second question first. And then Tracy can cover the luxury questions. Yes. In terms of the investment strategy, as you have seen, we recently made the announcement of acquiring in type China's business. So in the short term, our focus will be building the GAAP China business and building the Baozun brand management type a new business unit. So we will focus our efforts on integration and also transition to make sure it is a success.

好的。我先回答你的第二個問題。然後 Tracy 可以回答奢侈問題。是的。在投資策略方面，正如你所看到的，我們最近宣布了收購中國業務。所以在短期內，我們的重點將是建立GAAP中國業務和建立寶尊品牌管理類型的新業務單元。因此，我們將把精力集中在整合和過渡上，以確保它取得成功。

And in terms of the investment, our focus will, in the short term be (technical difficulty), the brand-related investments will be our focus. So I mentioned in the last few quarters, Baozun has made investments either the minority investments or the controlling investment into 6 brands. And we have made some good progress in terms of those brands, which in Double 11, the GMV from those fixed rents, adding together has grown over 200% year-over-year, which shows the enhancement of Baozun adding value to those brands.

而在投資方面，我們的重點是，短期內（技術難度），品牌相關的投資將是我們的重點。所以我在最近幾個季度提到，寶尊已經對6個品牌進行了少數投資或控股投資。而且我們在這些品牌方面取得了一些不錯的進展，在雙11，這些固定租金的GMV加起來同比增長超過200%，這表明寶尊對這些品牌的附加值有所提高。

And also forget the Double 11 performance has also been good. The GMV has grown 22% year-over-year for the GAAP during Double 11, which outperforms the market. All this shows was Baozun enhancement, we will be able to add more value to those brands growth kind of story. At the same time, when we're looking at the investment, we're also proactively optimizing our investment portfolio. As mentioned earlier, the Baobida, which is the last mile delivery investments we made, we actually practically introduced another strategic investor to take the controlling stake and make auto become a minority stake. This is because this investment is a little bit duplicate to our strategic lines to await Cainiao. So with that in mind we actually optimize our investment portfolio to (inaudible) from a majority to (inaudible) from a majority shareholder into a minority shareholder.

而且還忘了雙11的表現也不錯。雙十一 GMV 同比增長 22%，跑贏大市。這一切都說明了寶尊的增強，我們將能夠為那些品牌成長故事增加更多的價值。同時，我們在看投資的時候，也在積極優化我們的投資組合。剛才說到最後一公里外賣投資的寶必達，實際上我們引入了另外一個戰略投資人來控股，讓汽車成為少數股權。因為這個投資和我們等待菜鳥的戰略路線有點重複。因此，考慮到這一點，我們實際上將我們的投資組合優化為（聽不清）從多數股東到（聽不清）從大股東到小股東。

Looking at the medium to longer term, I think our investment priority are focused on the international expansion and also building technology capability on top of the brand management. And with the current market condition, we actually keep an open eye on the good value assets as we did for the GAAP China acquisition. Okay. So that's on the investment strategy.

從中長期來看，我認為我們的投資重點是國際擴張，以及在品牌管理之上建立技術能力。在當前的市場狀況下，我們實際上對高價值資產持開放態度，就像我們對 GAAP 中國收購所做的那樣。好的。這就是投資策略。

So Tracy, maybe you had something on the luxury business. Yes.

所以特蕾西，也許你對奢侈品行業有所了解。是的。

Yes, come back to the luxury story. I think we need to look to the industry from different angles. In short term, actually, definitely, the market is facing pressures on the slowing down growth, take this Double 11, for example, many brands have ramped up in variety and intensively (inaudible) to enhance the sales such as deeper discount, interest-free installments and also GMV -- GWP (inaudible).

是的，回到奢侈品的故事。我認為我們需要從不同的角度看待這個行業。短期內，其實肯定是，市場面臨增長放緩的壓力，就拿今年雙11來說，很多品牌都在加碼，密集（聽不清）提升銷量，比如更深的折扣，利息-免費分期付款以及 GMV -- GWP（聽不清）。

But on the other hand, we see many of our brand partners are investing for the longer -- middle to longer strategy. Some of them take these 2 years as opportunities to adjust their pricing strategy. They are more focusing on the product innovation itself and also the brand group, the emphasis on the consumer-centric and increase their budgets on content marketing and the data infrastructure. We see a lot of innovation initiate happening in this Double 11. (inaudible) and also, you see a lot of limited addition SKUs and online passion shoes has moving to the live stream topics to continue to drive the sales and also to attack new members. So I think that is the true size of the factor base currently in the industry.

但另一方面，我們看到我們的許多品牌合作夥伴都在為長期戰略進行投資。他們中的一些人將這兩年視為調整定價策略的機會。他們更專注於產品創新本身以及品牌集團，強調以消費者為中心並增加他們在內容營銷和數據基礎設施方面的預算。我們看到很多創新開始在這個雙十一發生。（聽不清）而且，你看到很多有限的增加 SKU 和在線激情鞋已經轉向直播主題以繼續推動銷售並攻擊新會員.所以我認為這是目前行業要素基礎的真實規模。

And for Baozun, we still treat luxury as our strategic part of our overall business. Because of the luxury market is still growing, they still have lower penetration, and we see a lot of lease in new pipelines right now. And we in the longer run, I think it's not just rely on 1 or 2 cases. We rooted in, I think, over 10 years practice in fashion and then we develop our luxury industry solutions in more forward-looking strategy, which is more omni-channel with leading IT solutions and more consumer driven with a strong in-house sales team and more reliable and value-added service related to logistics solutions. And with all of this, we have the strong belief to grow with the market in the next 1 or 2 years.

對於寶尊，我們仍然將奢侈品作為我們整體業務的戰略部分。由於奢侈品市場仍在增長，它們的滲透率仍然較低，我們現在看到很多新管道的租賃。而我們從長遠來看，我認為這不僅僅是依靠一兩個案例。我認為，我們紮根於 10 多年的時尚實踐，然後我們以更具前瞻性的戰略開發我們的奢侈品行業解決方案，即通過領先的 IT 解決方案更加全渠道，通過強大的內部銷售團隊更加以消費者為導向以及與物流解決方案相關的更可靠和增值服務。有了這一切，我們堅信在未來 1 或 2 年內與市場一起成長。

We will take our next question. Our next question comes from the line of Charlie Chen from China Renaissance.

我們將回答下一個問題。我們的下一個問題來自華興資本的Charlie Chen。

One question regarding the launch of [BOCDOC]. So I heard Vincent mentioned that. So can you share more color about this topic? And how do you think about the cost and the top line contribution for 2023?

關於 [BOCDOC] 推出的一個問題。所以我聽到文森特提到了這一點。那麼你能分享更多關於這個話題的顏色嗎？您如何看待 2023 年的成本和收入貢獻？

Thank you for the question. This is Vincent. I will talk about the concept of this is in BOCDOP, what we call is bocdop. In Chinese, we gave you a Chinese name called the (foreign language) its product line or solution. And then Arthur, maybe you can talk more about the revenue of local expectations.

感謝你的提問。這是文森特。我會講這個的概念是在BOCDOP中，我們所說的就是bocdop。在中文裡，我們給你起了一個中文名字叫（外文）它的產品線或者解決方案。然後亞瑟，也許你可以多談談當地預期的收入。

Yes.

是的。

Yes. Actually, in the past several years, Baozun's core system, we call this a middle-end system, including all the order fulfillment, other management and processing system and also other fulfillment system. We call this middle end. This middle end or DOP Digital Operating Platform plays a very important role to support an omni-channel retail and D2C-based business. Because all the traditional ERPs, they don't have these kind of offerings. I mean China, because of the omni-channel and the online/offline integration is much faster and advanced than the other countries in the market. So there is a strong demand in the local market for this kind of system. With this system, all the brands can operate their retail and D2C business. They can open stores on Tmall and JD and WeChat everywhere in the same time. And they can process all the orders from the channels and make sure they can deliver all these orders to the customers. So that is the system.

是的。其實這幾年，寶尊的核心系統，我們稱之為中台系統，包括所有的訂單履行，其他的管理處理系統，還有其他的履行系統。我們稱之為中端。這個中端或 DOP 數字運營平台在支持全渠道零售和基於 D2C 的業務方面發揮著非常重要的作用。因為所有傳統的 ERP，他們都沒有這些產品。我的意思是中國，因為全渠道和線上/線下整合比市場上的其他國家更快、更先進。因此，當地市場對這種系統有強烈的需求。有了這個系統，所有的品牌都可以經營他們的零售和D2C業務。他們可以同時在天貓、京東和微信上到處開店。他們可以處理來自渠道的所有訂單，並確保他們可以將所有這些訂單交付給客戶。這就是系統。

So previously, it's just about the highly customized system for each of the clients Baozun (inaudible) as the other players. Recently, we put a lot of investment in the packaging and the product types of this solution. But right now, I think the productization level is much higher than before. So we package this as a solution. It's a more ready to market. So we are trying to market the solution to Baozun client base and also other new clients and also some medium and small size of the clients trying to help us with them with omni-channel solution strategy. So that is the concept of the products. We are seeing very good progress and we're trying to make it better in future, the near future.

所以以前，它只是為每個客戶寶尊（聽不清）和其他玩家高度定制的系統。最近，我們在這個解決方案的包裝和產品類型上投入了大量的投資。但是現在，我認為產品化水平比以前高了很多。所以我們將其打包為一個解決方案。它更適合上市。因此，我們正在嘗試向寶尊客戶群和其他新客戶以及一些試圖通過全渠道解決方案策略幫助我們的中小型客戶推銷解決方案。這就是產品的概念。我們看到了非常好的進展，我們正努力在不久的將來讓它變得更好。

And Arthur about the revenue, what's your view on that? Yes.

亞瑟關於收入，你對此有何看法？是的。

Yes, sure. So Charlie, thanks for the question. From a financial point of view, I think we may continue the investments into technology, which is to build the competitive advantage of Baozun over our competitors. And from the introduction of the BOCDOP, which is actually helping us to commercialize those technology in a more advanced way. So looking forward, we will be able to see the investment side. We continue to make a similar amount of investments into technology year-over-year. So the cost would not increase.

是的，當然。查理，謝謝你的提問。從財務的角度來看，我認為我們可能會繼續對技術進行投資，這是建立寶尊相對於競爭對手的競爭優勢。從 BOCDOP 的引入來看，它實際上正在幫助我們以更先進的方式將這些技術商業化。所以展望未來，我們將能夠看到投資方面。我們繼續逐年對技術進行類似數量的投資。所以成本不會增加。

However, we foresee the revenue from the technology will increase year-over-year because our better structured, productization and also commercialization of our IT offerings. So in return, that will help us to drive our profit margin from the type offering into the market.

然而，我們預計該技術的收入將逐年增加，因為我們的 IT 產品的結構化、產品化和商業化程度更高。因此，作為回報，這將幫助我們將我們的利潤率從類型產品推向市場。

One more thing. Thank you, Arthur. One more thing (inaudible) not only support or the clients with omni-channel order processing and fulfilling capabilities also with all the data collected from different channels, we can also deliver a much better business intelligence capability and decision support capability to all the rights. Yes.

還有一件事。謝謝你，亞瑟。還有一件事（聽不清）不僅支持或具有全渠道訂單處理和履行能力的客戶以及從不同渠道收集的所有數據，我們還可以為所有權利提供更好的商業智能能力和決策支持能力。是的。

Yes. And also in addition to that, I think investment into technology not only benefits the traditional e-commerce business, it will also benefit the Baozun business management business as well. So with the GAAP China, we will be able to use our technology to drive the transformation of the brand we acquired as well. So that will help to create more value.

是的。除此之外，我認為對技術的投資不僅有利於傳統電子商務業務，也有利於寶尊業務管理業務。因此，通過中國通用會計準則，我們將能夠利用我們的技術來推動我們所收購品牌的轉型。這將有助於創造更多價值。

There are no further questions. So I would like to hand back to management for closing remarks.

沒有其他問題了。所以我想把結束語交還給管理層。

Thank you, operator. In closing, on behalf of the Baozun's management team, we would like to thank you for your participation in today's call. If you require any further information, feel free to reach out to the IR team. Thank you for joining us today. This concludes the call.

謝謝你，運營商。最後，我們代表寶尊的管理團隊感謝您參與今天的電話會議。如果您需要任何進一步的信息，請隨時聯繫 IR 團隊。感謝您今天加入我們。通話到此結束。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。